Gogo Inc (GOGO) 2024 Q3 法說會逐字稿

Good day. And thank you for standing by. Welcome to the third quarter, 2024 Gogo Inc earnings conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question and answer session to ask a question during the session. You need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised to withdraw your question. Please press star 11 again. Please be advised that this conference is being recorded. I would now like to hand the conference over to your speaker today. Will Davis? Please go ahead.

再會。感謝您的支持。歡迎參加 Gogo Inc 2024 年第三季財報電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將舉行問答環節，在會議期間提出問題。您需要按電話上的星號 11。然後，您將聽到一條自動訊息，建議您舉手撤回問題。請再按星號 11。請注意，本次會議正在錄製中。我現在想把會議交給今天的發言者。戴維斯會嗎？請繼續。

Thank you, Kevin and good morning, everyone. Welcome to Gogo's third quarter of 2024 earnings conference call. Joining me today to talk about our results are Oakleigh Thorne Chairman and CEO Jessics Betjemann, an executive Vice President and CFO Before we get started, I would like to take this opportunity to remind you that during the course of this call, we may make forward-looking statements regarding future events and the future performance of the company.

謝謝你，凱文，大家早安。歡迎參加 Gogo 2024 年第三季財報電話會議。今天與我一起談論我們成果的是Oakleigh Thorne 董事長兼首席執行官Jessics Betjemann、執行副總裁兼首席財務官在我們開始之前，我想藉此機會提醒您，在本次電話會議期間，我們可能會提出-有關未來事件和公司未來業績的前瞻性陳述。

We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements on this call.

我們提醒您考慮可能導致實際結果與本次電話會議前瞻性陳述中的結果有重大差異的風險因素。

Those risk factors are described in our earnings release filed this morning and are more fully detailed under risk factors in our annual report on 10-K and 10-Q and other documents that we have filed with the SEC.

這些風險因素在我們今天早上提交的收益報告中進行了描述，並在我們向 SEC 提交的 10-K 和 10-Q 年度報告以及其他文件中的風險因素中進行了更全面的詳細說明。

In addition, please note that the date of this conference call is November 5th, 2024.

另外，請注意，本次電話會議的日期是2024年11月5日。

Any forward-looking statements that we make today are based on assumptions as of this date and we undertake no obligation to update these statements as a result of more information or future events during this call. We'll present both GAAP and nongaap financial measures.

我們今天所做的任何前瞻性陳述均基於截至目前的假設，我們不承擔因本次電話會議期間出現更多資訊或未來事件而更新這些陳述的義務。我們將介紹公認會計原則和非公認會計原則財務指標。

We have included a reconciliation and explanation of adjustments and other considerations of our NON-GAAP measures to the most comparable GAAP measures in our third quarter. Earnings release.

我們對第三季非公認會計準則衡量指標與最具可比性的公認會計準則衡量指標的調整和其他考慮因素進行了協調和解釋。財報發布。

This call is being broadcast on the internet and available on the investor relations website at Ir.Gogoair.com.

這場電話會議正在網路上播出，並可在投資者關係網站 Ir.Gogoair.com 上查看。

The earnings press release is also available on the website after management comments, we'll host a Q&A session with the financial community only.

在管理層發表評論後，收益新聞稿也可以在網站上獲取，我們將僅與金融界舉辦問答環節。

It is now my great pleasure to turn the call over to Oakleigh.

現在我很高興將電話轉給奧克利。

Thanks will and welcome to our Q3 2024 call, Gogo delivered improved performance in the third quarter. But far from the robust growth we've had in the past and far from the growth we think will drive in the near future in what remains a highly unpenetrated global business aviation connectivity market.

感謝並歡迎參加我們的 2024 年第三季電話會議，Gogo 在第三季的業績有所改善。但與我們過去的強勁增長相去甚遠，也與我們認為在不久的將來在仍然高度未滲透的全球公務航空連接市場中將推動的增長相去甚遠。

This is largely because many of our current products are late in their product life cycle.

這主要是因為我們目前的許多產品都處於產品生命週期的後期。

Fortunately, several years ago, we began investing in a new generation of products. Our Gogo Galileo low earth orbit satellite product and our Gogo 5G product that will soon hit the market. And based on the overwhelmingly overwhelmingly positive customer response we received now we're receiving now we believe we will reaccelerate our growth and we anticipate this acceleration will be significantly augmented by our planned acquisition of Satcom Direct leveraging their attractive install base, their strong sales and service organization outside North America and their strong position in the mill gov market with such a full and innovative pipeline and robust business combination.

幸運的是，幾年前，我們開始投資新一代產品。我們的Gogo Galileo低軌衛星產品和即將上市的Gogo 5G產品。基於我們現在收到的壓倒性積極的客戶反應，我們相信我們將重新加速我們的成長，並且我們預計，我們計劃收購 Satcom Direct，利用他們有吸引力的安裝基礎、強勁的銷售和北美以外的服務組織及其在工廠管理市場中的強大地位，擁有如此完整和創新的管道以及強大的業務組合。

It's an exciting time at Gogo and Satcom Direct. I remain inspired by and grateful for both the outstanding Gogo and Satcom teams who are moving quickly to build a world class competitor in an increasingly competitive industry.

這是 Gogo 和 Satcom Direct 令人興奮的時刻。我仍然受到 Gogo 和 Satcom 優秀團隊的啟發和感激，他們正在迅速採取行動，在競爭日益激烈的行業中打造世界級的競爭對手。

Combined with Satcom Direct Gogo will be able to serve every segment of the BA market with the very best solutions for that segment. From our proprietary air to ground networks including Gogo 5G that deliver excellent reliable and cost effective connectivity for the thousands of aircraft that fly regionally in North America to integrated multi orbit Leo GEO solutions to meet the high bandwidth, high reliability and white glove service needs of the most demanding global heavy jet customer.

與 Satcom Direct Gogo 結合，將能夠為 BA 市場的每個細分市場提供該細分市場的最佳解決方案。從我們專有的空對地網路（包括為北美地區飛行的數千架飛機提供卓越可靠且具有成本效益的連接的Gogo 5G）到整合多軌道Leo GEO 解決方案，以滿足高頻寬、高可靠性和白手套服務需求最嚴苛的全球重型噴射機客戶。

This morning, I'm going to start by highlighting some demand trends we're seeing in the B A market that underpin our Q3 results and our future outlook and then dive into progress on our strategic initiatives including the Satcom direct acquisition.

今天早上，我將首先強調我們在 B A 市場中看到的一些需求趨勢，這些趨勢支撐著我們第三季的業績和未來前景，然後深入探討我們的策略性舉措（包括 Satcom 直接收購）的進展。

Jessics will then walk through the numbers and discuss our 2024 guidance.

然後 Jessics 將瀏覽這些數字並討論我們的 2024 年指導。

Overall demand for business aviation flights remained strong up 2% for the quarter from prior year and up 30% from PRE COVID Q3 2020 2019. Demand for connectivity on those flights also remains strong with Q3 data usage per hour, up 17% from prior year and up 106% from PRE COVID Q3 2019.

本季公務航空航班的整體需求依然強勁，較去年同期成長 2%，較 2020 年第三季新冠疫情爆發前成長 30%。這些航班上的連線需求也依然強勁，第三季每小時數據使用量比去年增長 17%，比 2019 年第三季新冠疫情爆發前成長 106%。

We're seeing the biggest surge in demand at the high end of the market where cloud data storage and video conferencing are driving demand for much higher bandwidth than our traditional products were designed to provide and where Galileo and 5G are well positioned to meet that demand.

我們看到高端市場的需求激增，其中雲端資料儲存和視訊會議正在推動對比我們傳統產品設計提供的頻寬更高的頻寬的需求，而伽利略和 5G 可以很好地滿足這一需求。

We believe this trend also demonstrates clear market opportunity for an integrated Leo Geo Gogo Satcom direct solution to support both enhanced capacity and redundancy for the most premium B A market segments.

我們相信這一趨勢也表明了整合的 Leo Geo Gogo Satcom 直接解決方案的明確市場機會，該解決方案可以支援最高端 B A 細分市場的增強容量和冗餘。

Finally on demand, we see OEM order books and fractional sales of aircraft looking very strong which should continue to drive demand in the future.

最後，在需求方面，我們看到 OEM 訂單和飛機的部分銷售看起來非常強勁，這應該會繼續推動未來的需求。

According to H1ywell's annual global business aviation outlook, aircraft owners and operators will invest an estimated $280 billion in an estimated 8,500 new business jets between now and 2033 with the fastest growth in heavy jets. A part of the market which we believe our Satcom direct acquisition positions us well to serve.

根據 H1ywell 年度全球公務航空展望，從現在到 2033 年，飛機所有者和營運商將投資約 2,800 億美元購買約 8,500 架新公務機，其中重型噴射機成長最快。我們相信我們透過衛星通訊直接收購的市場使我們能夠很好地服務該市場。

Now, let me turn to our Q3 performance revenue is up a modest 3% year over year driven by ARPA growth and an increase in advanced units online.

現在，讓我談談我們第三季的業績收入，在 ARPA 成長和線上高級單位增加的推動下，比去年同期小幅成長 3%。

On the equipment side for the quarter, we saw an increase in revenue of 1% year over year and a decrease of 7%. Sequentially as many customers delayed purchases in anticipation of the launch of Gogo 5G and Gogo Galileo.

在本季的設備方面，我們看到營收年增1%，下降7%。隨後，許多客戶因期待 Gogo 5G 和 Gogo Galileo 的推出而推遲了購買。

Advance growth continues to be strong and we had record upgrades in the third quarter. We consider every advance installation a strategic win because advance allows customers to upgrade to new networks or technologies with a simple software upgrade and or addition of a new antenna on the outside of the aircraft because these upgrades require no change in equipment inside the aircraft. They're cheaper and faster than installing a competitor's entire new system.

前期成長持續強勁，第三季我們的升級創紀錄。我們認為每一次先進的安裝都是策略性的勝利，因為先進允許客戶透過簡單的軟體升級和/或在飛機外部添加新天線來升級到新的網路或技術，因為這些升級不需要改變飛機內部的裝置.它們比安裝競爭對手的整個新系統更便宜、更快。

We expect 2024 to be our second highest year of advanced shipments ever. We grew total advanced units online in the quarter, 16% over the prior year to 4,379 aircraft representing 62% of our ATG install base.

我們預計 2024 年將成為我們有史以來先進出貨量第二高的一年。本季我們在線上先進飛機總數增加了 16%，達到 4,379 架飛機，占我們 ATG 安裝基數的 62%。

We anticipate our advance base will only grow faster as we incent our roughly 2,600 remaining GOGO classic customers to migrate to LTE over the next 14 months. As part of our FCC Secure Networks program, which I'll discuss in more detail in a few minutes, our service revenue remained strong, driven by new advanced installations and upgrades. Even though total ATG units online declined modestly. On the earnings side, Q3 EBITDA increased 14% sequentially mostly due to lower legal fees. Importantly, even as we invest deeply in the 5G and Galileo programs free cash flow remains solid.

我們預計，隨著我們激勵約 2,600 名剩餘的 GOGO classic 客戶在未來 14 個月內遷移到 LTE，我們的先期基礎只會成長得更快。作為我們 FCC 安全網路計劃的一部分（我將在幾分鐘內更詳細地討論該計劃），在新的高級安裝和升級的推動下，我們的服務收入仍然強勁。儘管 ATG 在線總數量略有下降。在獲利方面，第三季 EBITDA 環比成長 14%，主要是由於法律費用下降。重要的是，即使我們大力投資 5G 和伽利略項目，自由現金流仍然穩定。

Now, for our progress on strategic initiatives which are each in support of our three pronged now and next strategy.

現在，我們在策略性舉措方面取得的進展，每項措施都支持我們目前和下一步的三管齊下策略。

First problem, we want to expand our addressable market globally by addressing the needs of the 14,000 business aircraft outside the US. Second, we want to drive advanced penetration. So over an aircraft's lifetime owners have upgrade paths to new networks and technologies that are cheaper and faster than moving to competitive products. And third, we're focused on expanding into every segment of the B A and now mill gov markets by offering the products, customer support and economic suited the unique to the unique needs of that segment.

第一個問題，我們希望透過滿足美國以外 14,000 架公務機的需求來擴大我們的全球市場。其次，我們要推動先進滲透。因此，在飛機的整個生命週期內，機主可以升級到新的網路和技術，比升級到競爭產品更便宜、更快捷。第三，我們致力於透過提供適合該細分市場獨特需求的產品、客戶支援和經濟來擴展到 B A 的每個細分市場以及現在的工廠政府市場。

We're making great strides in our strategic initiative to achieve those goals, which I'll touch on in a minute. But first, let me describe the many ways Satcom Direct is expected to accelerate all three prongs of that strategy.

我們正在為實現這些目標而製定的策略性舉措中取得重大進展，我稍後會談到這些目標。但首先，讓我先描述一下 Satcom Direct 預計將加速該策略的所有三個方面的多種方式。

First, the Satcom 30 person International sales force and 15 person support organization located in eight offices around the world is expected to dramatically accelerate Galileo penetration outside North America.

首先，Satcom 30 人的國際銷售團隊和 15 人的支援組織分佈在世界各地的八個辦事處，預計將大大加快伽利略在北美以外地區的滲透率。

Second, with a minor development effort, the Satcom direct router will join the advanced family of form factors in enabling faster and cheaper upgrades to Galileo than moving to a competitive product to access leo networks. And third, Satcom will add two very attractive market segments. The GOGO has not historically had the right product mix to address the lucrative heavy jet intercontinental segment and the fast growing mill gov mobility segment in the business aviation segment, Satcom 1,300 broadband GEO customers are prime targets to add our Galileo offering to their existing GEO connectivity systems. And we look forward to launching that effort as soon as we close in the mill gov vertical. We see many opportunities for Gogo Galileo integrated with Satcom GEO offerings. Today, most mill gov fleets find themselves with either no connectivity or very dated technology on their mobility aircraft and they're now rushing to catch up creating a tailwind for mill gov connectivity suppliers. One example is the P LEO program under which the Department of Defense recently increased its projected spending on LEO satellite service more than tenfold from $900 million over the next 10 years to $13 billion over that same 10 years.

其次，透過少量的開發工作，衛星通訊直接路由器將加入先進的外形尺寸系列，與轉向競爭產品來存取 leo 網路相比，能夠更快、更便宜地升級到 Galileo。第三，衛星通訊將增加兩個非常有吸引力的細分市場。GOGO 歷來沒有合適的產品組合來滿足利潤豐厚的重型噴射式洲際細分市場和公務航空細分市場中快速增長的工廠政府行動細分市場，Satcom 1,300 寬頻GEO 客戶是將我們的Galileo 產品添加到其現有GEO 連線的主要目標系統。我們期待在工廠政府垂直部門關閉後立即啟動這項工作。我們看到 Gogo Galileo 與 Satcom GEO 產品整合的許多機會。如今，大多數工廠政府機隊發現自己的機動飛機要么沒有連接，要么技術非常過時，他們現在急於迎頭趕上，為工廠政府連接供應商創造順風。一個例子是 P LEO 計劃，根據該計劃，國防部最近將低地球軌道衛星服務的預計支出增加了十倍多，從未來 10 年的 9 億美元增加到同一 10 年的 130 億美元。

Another example is the US Air Force's 25 by 25 program under which they are targeting to have 25% of their 100 mobility aircraft equipped with satellite communications by the end of 2025 that still leaves 75% that will not have satellite connectivity. And that the Air Force believes still must be connected.

另一個例子是美國空軍的 25 by 25 計劃，該計劃的目標是到 2025 年底將其 100 架機動飛機中的 25% 配備衛星通信，但仍有 75% 的飛機沒有衛星連接。空軍認為仍然必須連接。

Another key driver for our GOGO Satcom Mill gov solutions is that we expect to be able to offer combined Leo gol band solutions that meet the military's dictate of having primary alternate contingency and emergency connectivity systems on every aircraft.

我們 GOGO Satcom Mill gov 解決方案的另一個關鍵驅動因素是，我們希望能夠提供組合的 Leo gol 頻段解決方案，以滿足軍方在每架飛機上配備主要備用應急和緊急連接系統的要求。

Besides these three strategic benefits, we believe Satcom also brings financial benefits. It more than doubles the size of our business which should drive scale advantages. It's expected to be immediately accretive to earnings and it should deliver 25 to $30 million in annual recurring synergies over the next two years, many investors asked whether this combination will bring down our operating and EBITDA margins. And my answer is yes, but we believe it will significantly grow free cash flow per share and that is what ultimately should drive shareholder value to sum it up. We believe our acquisition, our acquisition of Satcom Direct is a key step in accelerating our Leo strategy and achieving the global scale to compete in an increasingly competitive segment of the aviation IFC market. We look forward to closing the transaction by the end of 2024 and welcoming the talented Satcom Direct team to Gogo.

除了這三個戰略利益外，我們相信衛星通訊還可以帶來經濟效益。它使我們的業務規模增加了一倍多，這應該會帶來規模優勢。預計它將立即增加收益，並在未來兩年內每年帶來 25 至 3000 萬美元的經常性協同效應，許多投資者詢問這種組合是否會降低我們的營運利潤率和 EBITDA 利潤率。我的答案是肯定的，但我們相信這將顯著增加每股自由現金流，而這才是最終推動股東價值的因素。我們相信，我們對 Satcom Direct 的收購是加速我們的 Leo 策略並實現全球規模以在競爭日益激烈的航空 IFC 市場中競爭的關鍵一步。我們期待在 2024 年底前完成交易，並歡迎才華橫溢的 Satcom Direct 團隊加入 Gogo。

Now let me turn to Gogo Galileo.

現在讓我談談戈戈·伽利略。

We believe this product line will be a game changer for the business aviation industry and given the strong demand, we are seeing the market seems to agree with us.

我們相信該產品線將改變公務航空業的遊戲規則，鑑於強勁的需求，我們看到市場似乎同意我們的觀點。

In fact, the demand for Gogo Galileo HDX is greater than it was for Gogo Advance LFI which launched in 2017 and quickly became the fastest selling inflight connection connectivity system in business aviation history.

事實上，對 Gogo Galileo HDX 的需求比對 2017 年推出的 Gogo Advance LFI 的需求更大，後者迅速成為公務航空史上銷售最快的機上連接系統。

As a reminder, Galileo comes in two versions, a smaller HDX terminal and a larger FDX terminal.

提醒一下，Galileo 有兩個版本：較小的 HDX 終端和較大的 FDX 終端。

The Galileo HDX terminal is our first to market all aircraft product size to fit on any size of aircraft and will deliver peak speeds approaching 60 megabits per second. That's 12 times to 60 times. Our current product offerings.

Galileo HDX 終端是我們第一個向市場推出所有飛機產品尺寸的終端，適用於任何尺寸的飛機，並將提供接近每秒 60 兆位元的峰值速度。那是12倍到60倍。我們當前的產品。

HDX is targeted at two segments, the 12,000 midsize and smaller aircraft that fly outside North America and have no broadband solution today.

HDX 針對兩個細分市場，即在北美以外地區飛行且目前沒有寬頻解決方案的 12,000 架中型和小型飛機。

And those aircraft among the 11,000 midsize and smaller aircraft registered inside North America that often fly regionally outside Kas or want faster mean speeds than 5G alone can provide.

在北美註冊的 11,000 架中型和小型飛機中，這些飛機經常在卡斯以外的區域飛行，或需要比 5G 單獨提供的更快的平均速度。

The Galileo FDX terminal is our best in class product size for larger jets and will deliver very consistent speeds approaching 200 megabits per second. 40 to 200 times faster than our current product offerings. It's targeted at the 19,700 super mid and larger jets that fly long range intercontinental missions or long range missions inside North America.

Galileo FDX 終端是我們適用於大型噴射機的一流產品尺寸，將提供非常一致的速度，接近每秒 200 兆位元。比我們目前的產品快 40 到 200 倍。它的目標客戶是 19,700 架執行遠程洲際任務或北美境內遠程任務的超中型和大型噴射機。

Our HDX achieved a major milestone last week when it passed FAA do 160 testing, certifying that is safe for use and will operate reliably in the harsh environmental conditions encountered in flight including temperature volatility, intense vibration, radio wave penetration, lightning strike moisture penetration and flight aerodynamics. Among others, this approval keeps us on track to receive parts manufacturing authority in December, which would authorize us to begin shipping HDX commercially to customers.

我們的HDX 上週實現了一個重要的里程碑，通過了FAA do 160 測試，證明其可以安全使用，並且可以在飛行中遇到的惡劣環境條件下可靠運行，包括溫度波動、強烈振動、無線電波穿透、雷擊濕氣滲透和飛行空氣動力學。除此之外，這項批准使我們預計在 12 月獲得零件製造授權，這將授權我們開始向客戶商業運輸 HDX。

Since launching our Galileo catalyst marketing program in August. We've seen unprecedented demand from end customers. We've had more than 1,000 customers sign up for HDX webcast. We've had unprecedented traffic on our HDX web pages and we had large crowds at our booth and the HDX demos we did at the Business Aviation Airfield during the National Business Aviation Association and BAA convention in Las Vegas. Two weeks ago during the demos, we conducted live zoom and teams meetings between customers on the ground and our engineers in the air flying in our challenger 300 equipped with HDX and running over the oneweb network. We also ran demos of FDX inside our, mobile demo room semi truck trailer. We're up to a dozen simultaneous users. We're running zoom meetings, teams, meetings, gaming applications, cloud based applications and much more with great success.

自八月啟動伽利略催化劑行銷計畫以來。我們看到了最終客戶前所未有的需求。我們已經有超過 1,000 位客戶註冊了 HDX 網路廣播。我們的 HDX 網頁上的流量達到了前所未有的水平，我們的展位以及在拉斯維加斯舉行的國家公務航空協會和 BAA 大會期間在公務航空機場進行的 HDX 演示也吸引了大量人群。兩週前的演示期間，我們在地面客戶和空中工程師之間進行了即時縮放和團隊會議，這些工程師乘坐配備 HDX 並在 oneweb 網路上運行的挑戰者 300。我們還在我們的移動演示室半卡車拖車內運行了 FDX 演示。我們最多有十幾個並髮用戶。我們正在運行 Zoom 會議、團隊、會議、遊戲應用程式、基於雲端的應用程式等，並取得了巨大成功。

I might add that the mobile demo room, semi truck departed Las Vegas and is headed for a 33 stop tour of business airports across the country where large numbers of aircraft owners, operators, flight departments, management companies and others have already signed up for demonstration sessions.

補充一下，移動展示室拖車從拉斯維加斯出發，前往全國33站商務機場巡演，已有大量機主、營運商、飛行部門、管理公司等報名參加展示會議。

We've also had great success with dealers so far, we've signed 27 STC agreements for HDX covering 34 popular models of aircraft and have another 12 verbally committed covering another 10 unique models of aircraft, which brings us to a total global service addressable market of 18,500 aircraft on the O AM front at MBA A. We finally announced that it is Textron Aviation that awarded us Line fit position on three models of aircraft last year. And with, and that those models are the latitude longitude and Ascent that they will cut those in in the line later this year.

到目前為止，我們與經銷商也取得了巨大成功，我們已為HDX 簽署了27 份STC 協議，涵蓋34 種流行的飛機型號，並另有12 份口頭承諾，涵蓋另外10 種獨特的飛機型號，這使我們能夠提供可尋址的全面全球服務MBA A 的 O AM 前沿市場擁有 18,500 架飛機。這些模型是經緯度和上升度，他們將在今年稍後加入這些模型。

We've also signed another large OEM contract that will be announced shortly this time for line fit on all of their models.

我們還簽署了另一份大型 OEM 合同，該合約將很快宣布，這次將在他們的所有型號上進行生產線安裝。

And this one is for the FDX antenna and we're having a lot of successful fleet customers as wheels up announced at the NBA, a convention that they'll add HDX to their entire fleet in the near future. And we're seeing pull through at the dealers as Netjet starts planning their rollout of HDX for this coming year.

這個天線適用於 FDX 天線，我們在 NBA 大會上宣布，他們將在不久的將來將 HDX 添加到他們的整個車隊中，因此我們擁有許多成功的車隊客戶。隨著 Netjet 開始計劃在明年推出 HDX，我們看到經銷商的情況有所改善。

As a result of this demand, we recently announced that we're doubling our projections for HDX demand in 2025 and have tripled our purchase order from our partner Hughes Networks.

由於這種需求，我們最近宣布將 2025 年 HDX 需求的預測增加一倍，並將我們的合作夥伴 Hughes Networks 的採購訂單增加兩倍。

We believe the advantages of Galileo over new market entrances is resonating in the market.

我們相信伽利略相對於新市場進入的優勢正在市場中引起共鳴。

Customers appreciate that our equipment is aviation grade and designed from the aircraft up and satellite down for the specific needs of the business aviation market.

客戶讚賞我們的設備是航空級的，並且從飛機到衛星都針對公務航空市場的特定需求而設計。

Our business model is business aviation focused with the type of personal customer support. Someone who just spent 20 to $80 million on an aircraft would expect from a service provider.

我們的業務模式是專注於個人客戶支援類型的公務航空。剛剛花費 2000 至 8000 萬美元購買飛機的人會期望從服務提供者那裡得到幫助。

Our partner one web network is an enterprise grade network designed to serve B two B customers with service level guarantees.

我們的合作夥伴 One Web 網路是一種企業級網絡，旨在為 B 2 B 客戶提供服務等級保證。

And finally, customers believe that we are reliable and trustworthy. We don't change pricing at the drop of a hat. We don't change business terms nor change our focus on which parts of the market we serve.

最後，客戶相信我們可靠且值得信賴。我們不會輕易改變定價。我們不會改變業務條款，也不會改變我們對所服務的市場部分的關注。

Now let me turn to our 5G ATG network which is targeted at large segments of the roughly 21,000 midsize and smaller business aircraft that fly predominantly in North America and want an exceptional connectivity experience at a more affordable price than satellite solutions.

現在讓我談談我們的 5G ATG 網絡，該網絡針對主要在北美飛行的大約 21,000 架中型和小型公務飛機中的大部分，並且希望以比衛星解決方案更實惠的價格獲得卓越的連接體驗。

We're pleased to share that the 5G chip is in fabrication and we still expect to ship 5G late in the second quarter of 2025. We're continuing to work very closely with our vendor partners to smooth the path through fabrication and into launch.

我們很高興地告訴大家，5G 晶片正在製造中，我們仍預計在 2025 年第二季末交付 5G。我們將繼續與供應商合作夥伴密切合作，以順利完成製造和發布的過程。

We're confident that between our F PGA flights and the virtual simulator, our term is built that replicates our entire 5G network. We will be able to test and validate 90% of our 5G functionality and network before we receive the final 5G chip.

我們相信，在 F PGA 航班和虛擬模擬器之間，我們的術語能夠複製我們的整個 5G 網路。在收到最終的 5G 晶片之前，我們將能夠測試和驗證 90% 的 5G 功能和網路。

Importantly, the market continues to respond enthusiastically to the 5G value proposition with ongoing preprovisioning programs and a flood of STC programs that position us for a highly successful launch.

重要的是，市場繼續對 5G 價值主張做出熱烈反應，持續進行的預配置計劃和大量 STC 計劃使我們能夠取得非常成功的發布。

At the end of Q3, we had already shipped 342 5 G provision kits with MB 13 5 G antennas which is up from 292 last quarter and 153 of those kits have already been installed and are flying using our 4G network in an L 54 Glru to be clear, our LX 55 G Lru which is what awaits. The 5G chip is the exact same form factor as the L 54 Glru. So once the 5G chip is certified, those customers with 5G MB 13 antennas and 4G L five, Lru can simply swap the LX five in for the L five and they will be on the 5G network.

截至第三季末，我們已發貨了342 個帶有MB 13 5 G 天線的5 G 供應套件，高於上季度的292 個，其中153 個套件已安裝完畢，並正在L 54 Glru 中使用我們的4G 網路飛往需要明確的是，我們的 LX 55 G Lru 正在等待著您。5G 晶片的外形與 L 54 Glru 完全相同。因此，一旦 5G 晶片獲得認證，那些擁有 5G MB 13 天線和 4G L 5、Lru 的客戶只需將 LX 5 換成 L 5，即可使用 5G 網路。

We also have linefit commitments with five OEMs with one already installing the MB thirteen's line fit with the advanced L5 4G LR on the assembly line today.

我們還與五家 OEM 做出了生產線組裝承諾，其中一家已經在今天的裝配線上安裝了帶有先進 L5 4G LR 的 MB 13 的生產線組裝。

On the certification front, we have 21 D CS for MB 13 completed with one version of advance or another covering 18 unique models of aircraft and eight more in the works covering 15 unique models of aircraft. And in total, representing roughly 88,500 North American registered aircraft.

在認證方面，我們已經為 MB 13 完成了 21 個 D CS，其中包括一個預演版本或另一個版本，涵蓋 18 種獨特的飛機型號，還有 8 種正在開發中，涵蓋 15 種獨特的飛機型號。北美註冊飛機總數約 88,500 架。

We look forward to bringing this product to market next year, which will serve a core part of the Go Go customer base.

我們期待明年將該產品推向市場，這將為 Go Go 客戶群的核心部分提供服務。

Now turning briefly to the SEC secure Networks program, what we call gogo Evolution as a reminder, Gogo was awarded $334 million grant from the FCC under this program to incent us to accelerate the removal of Chinese telecom technology from our 4G ground network.

現在簡單談談 SEC 安全網路計劃，我們稱之為 gogo Evolution，作為提醒，Gogo 根據該計劃從 FCC 獲得了 3.34 億美元的撥款，以激勵我們加速從我們的 4G 地面網路中移除中國電信技術。

Because Congress has only funded 39% of this program. We currently stand to receive $132 million of reimbursements. But believe that the federal government should fully fund at some point as a reminder to fulfill our obligations under this grant, gogo must replace all of our EVDO ground equipment with new American LTE equipment and our classic customers will need to replace their airborne equipment with new LTE equipment to be compatible with that new ground network.

因為國會只資助了這個計畫的39%。我們目前預計將收到 1.32 億美元的補償。但相信聯邦政府應該在某個時候提供充分資金，以提醒我們履行這筆撥款下的義務，gogo 必須用新的美國LTE 設備更換我們所有的EVDO 地面設備，而我們的經典客戶將需要用新的美國LTE 設備更換他們的機載設備。

As of quarter end, we had roughly 2600 customers still in our old classic product down from roughly 3,000 at the beginning of the year, roughly 8,000 of those are fleet aircraft already on track for advanced upgrades.

截至季末，我們仍有大約 2600 名客戶仍在使用我們的舊款經典產品，而年初的數量約為 3,000 名，其中大約 8,000 架是已經準備進行高級升級的機隊飛機。

We've had conversations with almost all of the remaining customers on how they plan to convert with the vast majority indicating that they will upgrade to one advanced product or another.

我們已經與幾乎所有剩餘客戶就他們計劃如何轉換進行了對話，其中絕大多數表示他們將升級到一種或另一種高級產品。

We also have customer promotions in place to incent conversion and our dealers are doing a great job configuring their operations to transition customers at scale.

我們還開展了客戶促銷活動來刺激轉化，我們的經銷商在配置其營運以大規模轉化客戶方面做得非常出色。

Finally, for those customers who delay, we also introduced what I call, we call a special transitional product called C one, which will have both an EVD and LTE Airc card in a form factor that is an exact replica of our classic product. C one will not improve service levels like upgrading to advance but it will allow customers more time to convert to advance after the cutover to wrap up, Gogo is continuing to deliver outstanding service and solid cash flow performance as we invest in and prepare to launch Gogo 5G in Galileo.

最後，對於那些延遲的客戶，我們還推出了我所說的一種特殊的過渡產品，稱為 C one，它將同時具有 EVD 和 LTE Airc 卡，其外形尺寸是我們經典產品的精確複製品。C one 不會像升級到高級那樣提高服務水平，但它將讓客戶有更多時間在割接結束後轉換為高級，Gogo 在我們投資並準備推出Gogo 的同時，將繼續提供出色的服務和穩健的現金流表現伽利略的 5G。

We believe that in the month ahead, Gogo combined with Satcom Direct will have the most complete product portfolio in the Business Aviation IFC industry with products that offer the right performance with the right coverage at the right total cost with great customer support for every segment of the highly unpenetrated 40,000 plus aircraft, global business aviation market and now I'll turn it over to Jessics to do the numbers.

我們相信，在接下來的一個月裡，Gogo 與Satcom Direct 的結合將擁有公務航空IFC 行業中最完整的產品組合，其產品能夠以適當的總成本提供適當的性能、適當的覆蓋範圍，並為每個細分市場提供強大的客戶支援。

Thanks Oakleigh and good morning everyone. Google generated better than expected third quarter results across the board due to higher service revenue and a shift in timing of strate strategic spending that led to an increase in our 2024 financial guidance.

謝謝奧克利，大家早安。由於服務收入增加以及策略性策略支出時間的轉變導致我們上調了 2024 年財務指引，Google第三季業績全面優於預期。

In my remarks today, I'll start by walking through Gogo's third quarter financial performance. Then I will turn to our balance sheet and capital allocation priorities. And finally, I'll conclude with additional context on our improved 2024 guidance as mentioned in our press release in light of the pending acquisition of Satcom Direct. We are withdrawing our multiyear long term financial targets previously provided on our second quarter earnings call for the third quarter. Gogo total revenue was $100.5 million up 3% year over year and a slight decrease. Sequentially, Gogo delivered service revenue of $81.9 million up 3% over the prior year and a slight decrease over the prior quarter.

在今天的演講中，我將首先介紹 Gogo 第三季的財務表現。然後我將談談我們的資產負債表和資本配置優先事項。最後，我將根據即將完成的 Satcom Direct 收購，對我們在新聞稿中提到的改進的 2024 年指導進行補充說明。我們將撤回先前在第二季第三季財報電話會議上提出的多年長期財務目標。Gogo 總營收為 1.005 億美元，年增 3%，略有下降。隨後，Gogo 實現服務收入 8,190 萬美元，比上年增長 3%，比上一季略有下降。

Our ATG aircraft online was 7016, a 2% decrease year over year and a slight decline. Sequentially, this exceeded our internal expectations as a result of more new activations and fewer classic deactivations than we had anticipated at this stage in our product life cycle, total advanced aircraft online grew to 4,379 an increase of 16% year over year and 4% sequentially and now comprises 62% of our total fleet.

我們的ATG飛機線上數量為7016架，年減2%，略有下降。隨後，這超出了我們的內部預期，因為新啟動的數量比我們在產品生命週期現階段的預期要多，經典停用的數量少於我們的預期，在線先進飛機總數增至4,379 架，同比增長16%，季增4%現在占我們機隊總數的 62%。

We saw record advanced upgrades in the third quarter, reflecting our progress and driving penetration from classic to advanced within our existing fleet.

我們在第三季度看到了創紀錄的高級升級，反映了我們的進步以及推動現有機隊從經典到高級的滲透。

Converting our classic base to advance remains a priority and we expect these conversions to accelerate in 2025.

將我們的經典基地轉變為高級基地仍然是我們的首要任務，我們預計這些轉變將在 2025 年加速。

This helped drive the sequential net increase in third quarter, advanced aircraft online to 264 up 50% versus the 105 sequential increase in the second quarter.

這有助於推動第三季的季淨成長，線上先進飛機數量達到 264 架，較第二季的 105 架季增 50%。

As previously mentioned, we anticipate the upgrade process and product life cycle dynamic will continue to put pressure on a G aircraft online over the coming quarters ahead of the launch of Gogo Galileo this quarter and 5G late in the second quarter of 2025 total. ATG Arpu grew to a record $3497. A 4% year over year increase and 1% growth. Sequentially reflecting the price increase we initiated in the first quarter.

如前所述，我們預計，在本季推出 Gogo Galileo 以及 2025 年第二季末推出 5G 之前，升級過程和產品生命週期動態將繼續對未來幾季的 G 飛機在線上施加壓力。ATG Arpu 成長至創紀錄的 3,497 美元。年增4%，季增1%。依序反映了我們在第一季啟動的價格上漲。

The launches of Gogo Galileo and 5G are anticipated to further expand our arpu growth opportunity over time.

隨著時間的推移，Gogo Galileo 和 5G 的推出預計將進一步擴大我們的 ARPU 成長機會。

Moving now to equipment revenue. Gogo delivered third quarter, equipment revenue of $18.7 million with 214 advanced shipments which increased 11% year over year and down 7%. Sequentially, we continue to expect that equipment revenue in the second half of the year will decline versus the first half driven by lower advanced shipments due to the pull forward effect of OEM shipments in the first quarter. The continued impact of our product life cycle dynamic and also a timing shift of Textron orders as a result of the short lived Textron strike that we don't expect to be pulled back in this year.

現在轉向設備收入。Gogo第三季設備營收為1870萬美元，提前出貨214台，年增11%，年減7%。因此，我們繼續預計，由於第一季 OEM 出貨量的拉動，先進設備出貨量下降，導致下半年設備收入將較上半年下降。我們的產品生命週期動態的持續影響，以及由於短暫的德事隆罷工而導致的德事隆訂單的時間變化，我們預計今年不會取消。

Turning to profitability, Gogo delivered service margins of 77% in the third quarter. Consistent with the prior quarter. We expect service margins to be slightly above 75% this year as year-to-date margins are higher than expected. However, we continue to expect a slight decrease in future years for Gogo standalone service margin as the contribution of Goga leo service revenue to our overall revenue mix, increases service revenue and service profit margin are the primary levers for free cash flow generation and long term value creation.

談到獲利能力，Gogo 第三季的服務利潤率為 77%。與上季一致。我們預計今年服務利潤率將略高於 75%，因為年初至今的利潤率高於預期。然而，我們仍然預計 Gogo 獨立服務利潤率在未來幾年將略有下降，因為 Goga leo 服務收入對我們整體收入組合的貢獻、服務收入的增加和服務利潤率是自由現金流產生和長期的主要槓桿價值創造。

Equipment margins were 19% in the third quarter, largely in line with the prior quarter and 14% lower than the prior year period.

第三季設備利潤率為 19%，與上一季基本持平，比去年同期低 14%。

The year over year decline was primarily due to a catch up accrual benefit in Q3 2023 for FCC, reimbursement of costs incurred to replace a large number of EVD air cards in advanced equipped aircraft with dual motor air cards and also in and also an increase in production costs as a percent of revenue. This quarter, we expect equipment margins to decline in the fourth quarter, largely due to product mix and an increase in production costs as a percentage of revenues as revenue declines now on to operating expenses in the third quarter Combined engineering design and development, sales and marketing and general and administrative expenses increased 47% year over year and increased 5% Sequentially reaching $43.2 million.

年比下降的主要原因是 FCC 2023 年第三季的追趕應計收益、償還了在配備雙電機航空卡的先進裝備飛機中更換大量 EVD 航空卡所產生的成本以及生產成本佔收入的百分比。本季度，我們預計第四季度設備利潤率將下降，這主要是由於產品組合和生產成本佔收入的百分比上升，因為第三季度收入下降，導致運營費用下降。 %，季增5%，達4,320 萬美元。

This year. Over year increase was mainly driven by G and a expense including $6.7 million in transaction costs related to the Scom Direct pending acquisition which are excluded from adjusted EBITA, and also $3.2 million in higher legal expenses in terms of Gogo 5G. In the third quarter, our $3.1 million of 5G spending was comprised of $0.6 million in APEX and $2.5 million in CAPEX.

今年。年比成長主要由 G 和費用推動，其中包括與 Scom Direct 待收購相關的 670 萬美元交易成本（不包括在調整後的 EBITA 中），以及 Gogo 5G 方面較高的 320 萬美元法律費用。第三季度，我們 310 萬美元的 5G 支出​​包括 60 萬美元的 APEX 和 250 萬美元的資本支出。

We now expect 2024 will include approximately $3 million of 5G APEX and approximately $8 million in CAPEX with total 5G spend for 2024 at approximately $11 million.

我們現在預計 2024 年將包括約 300 萬美元的 5G APEX 和約 800 萬美元的資本支出，2024 年 5G 總支出約為 1,100 萬美元。

This reflects a decrease from our previously stated $5 million of 5G APEX due to timing.

這反映了我們之前所說的 500 萬美元 5G APEX 由於時間因素有所減少。

As Oakleigh mentioned, our 5G chip is now in fabrication and we continue to expect Gogo 5G to launch late in the second quarter of 2025.

正如 Oakleigh 所提到的，我們的 5G 晶片現已投入生產，我們仍然預計 Gogo 5G 將在 2025 年第二季末推出。

We maintain our estimate of $100 million in total external development and deployment costs for our total 5 G program.

我們維持 5G 計畫外部開發和部署總成本 1 億美元的估計。

Now on to Gogo Galileo in the third quarter, Gogo recorded $2.6 million in APEX and $1.1 million in CAPEX related to Gogo Galileo.

現在轉到 Gogo Galileo，第三季度，Gogo 記錄了與 Gogo Galileo 相關的 APEX 260 萬美元和 CAPEX 110 萬美元。

We now expect 2024 to include approximately $13 million of Galileo APEX and approximately $3 million in CAPEX shifting $2 million of APEX and $1 million of CAPEX to 2025.

我們現在預計 2024 年將包括約 1,300 萬美元的 Galileo APEX 和約 300 萬美元的資本支出，將 200 萬美元的 APEX 和 100 萬美元的資本支出轉移到 2025 年。

We continue to expect external development costs for both the HDX and FDX solutions to be less than $50 million in total of which $30 million was incurred in 2022 and 2023. Approximately $16 million is projected in 2024 and the remainder is expected in 2025.

我們仍預期 HDX 和 FDX 解決方案的外部開發成本總計低於 5,000 萬美元，其中 2022 年和 2023 年將發生 3,000 萬美元。預計 2024 年將投入約 1,600 萬美元，其餘預計將在 2025 年投入。

Additionally, we continue to anticipate approximately 90% of Gogo Galileo's external development costs will be in APEX moving on to our bottom line. Gogo delivered $34.8 million in adjusted EBITA in the third quarter. A 19% decrease year over year and 14% increase. Sequentially, the sequential increase was primarily driven by lower legal fees. However, the year over year decrease is attributed to legal expenses related to Smartsky and the FCC reimbursement accrual benefit recorded in the third quarter of 2023 that I previously stated, as mentioned, the $6.7 million in Satcom direct acquisition related costs being incurred in the third quarter are excluded from adjusted EBITA. Net income of $10.6 million in the third quarter decreased $10.3 million year over year and increased $9.8 million Sequentially. As mentioned in the prior quarter, our second quarter net income included an $11 million after tax unrealized loss related to a fair market value adjustment to the convertible note investment we made in the first quarter in our key shift supplier to support continued progress on our 5G chip.

此外，我們繼續預計 Gogo Galileo 約 90% 的外部開發成本將用於 APEX，從而影響我們的利潤。Gogo 第三季調整後息稅折舊攤提前利潤 (EBITA) 為 3,480 萬美元。年減19%，年增14%。隨後，連續成長主要是由於法律費用降低所致。然而，同比下降的原因是與 Smartsky 相關的法律費用以及 2023 年第三季度記錄的 FCC 報銷應計收益，正如我之前提到的，第三季度產生的 670 萬美元的 Satcom 直接收購相關成本季度不包括在調整後的EBITA 中。第三季淨利為1060萬美元，年減1,030萬美元，季增980萬美元。As mentioned in the prior quarter, our second quarter net income included an $11 million after tax unrealized loss related to a fair market value adjustment to the convertible note investment we made in the first quarter in our key shift supplier to support continued progress on our 5G晶片.

This quarter, we recorded $1.3 million gain in fair value which nets to a $1.2 million year-to-date fair value loss.

本季度，我們錄得 130 萬美元的公允價值收益，扣除年初至今的 120 萬美元公允價值損失。

Potential future share price volatility will continue to affect our net income as we account for mark to market adjustments to the fair value of this investment based on our substantial net operating loss balances at the end of 2023 including $446 million in federal net operating losses. $377 million in state net operating losses and interest carry forward of $292 million. We had a net deferred income tax asset of $209 million. At the end of the quarter, we do not expect to pay meaningful cash taxes through 2028 for the gogo standalone business.

未來潛在的股價波動將繼續影響我們的淨利潤，因為我們根據 2023 年底的巨額淨營運虧損餘額（包括 4.46 億美元的聯邦淨營運虧損）對這項投資的公允價值進行了按市價調整。國家淨營運虧損為 3.77 億美元，結轉利息為 2.92 億美元。我們的遞延所得稅資產淨額為 2.09 億美元。到本季末，我們預計到 2028 年都不會為 gogo 獨立業務繳納有意義的現金稅。

I will now provide a status update of our FCC reimbursement program.

我現在將提供 FCC 報銷計劃的最新狀態。

In the third quarter, we received $11.1 million in FCC grant funding, bringing our program to date total to $30.3 million.

第三季度，我們收到了 1,110 萬美元的 FCC 撥款資金，使我們的計劃迄今為止總額達到 3,030 萬美元。

As of September 30th 2024 we recorded $12.9 million receivable from the FCC and incurred $6.6 million in reimbursable spend during the quarter.

截至 2024 年 9 月 30 日，我們從 FCC 收到的應收帳款為 1,290 萬美元，本季的可報銷支出為 660 萬美元。

This receivable is included in prepaid expenses and other current assets in our balance sheet with corresponding reductions to property and equipment inventory and contract assets and with the pickup in the income statement as previously disclosed, we submitted and were granted our first six month extension to the FCC, pushing the program completion deadline to January 21st 2025. In our application, we stated that we will need to have multiple extensions to complete the program and are planning to request the next extension this month.

該應收帳款包含在我們資產負債表中的預付費用和其他流動資產中，同時相應減少了財產和設備庫存和合約資產，並且隨著之前披露的損益表的回升，我們提交並獲得了第一個六個月的延期FCC 將計劃完成期限推遲至 2025 年 1 月 21 日。在我們的申請中，我們指出我們需要多次延期才能完成該計劃，並計劃在本月請求下一次延期。

As a reminder with partial funding of the program, we are forecasting that our spending will exceed our level of reimbursement funds in late 2025. And we'll need to continue to spend money in support of the program through 2026 which is expected to negatively impact 2025 and 2026 free cash flow.

作為對該計劃的部分資助的提醒，我們預測我們的支出將在 2025 年底超過我們的報銷資金水平。我們需要在 2026 年之前繼續花錢支持該計劃，預計這將對 2025 年和 2026 年的自由現金流產生負面影響。

Moving on to free cash flow in the third quarter, we generated $24.6 million in free cash flow up $3.6 million versus prior year. Primarily due to higher ec reimbursements, free cash flow slightly decreased from $24.9 million in the previous quarter.

接下來是第三季的自由現金流，我們產生了 2,460 萬美元的自由現金流，比去年同期增加了 360 萬美元。主要由於 EC 報銷增加，自由現金流較上一季的 2,490 萬美元略有下降。

Looking ahead and reflecting reflected in our 2024 guidance, we anticipate free cash flow in the fourth quarter to swing negative as a result of higher networking capital and continued investments in our strategic initiatives.

展望未來並反映在我們的 2024 年指引中，我們預計由於網路資本增加和對我們策略計畫的持續投資，第四季度的自由現金流將出現負數。

The higher networking capital is due to the planned ramp in inventory at the end of the year for the anticipated Gogo Galileo and 5G product launches and advance upgrades in 2025 and also a decrease in accounts payable.

網路資本增加的原因是計劃在年底增加庫存，以應對預期的 Gogo Galileo 和 5G 產品發布以及 2025 年的提前升級，以及應付帳款的減少。

Now I'll turn to a discussion of our balance sheet.

現在我將討論我們的資產負債表。

Gogo ended the quarter with $176.7 million in cash and short term investments and $601 million in outstanding principal on our term loan with our $100 million revolver remaining undrawn globals net leverage of 3.0 times remains in line with our target range of 2.5 to 3.5 times.

截至本季末，Gogo 擁有1.767 億美元的現金和短期投資，以及6.01 億美元的定期貸款未償本金，我們的1 億美元循環貸款尚未提取，全球淨槓桿率為3.0 倍，仍然符合我們2.5至3.5 倍的目標範圍。

Our cash interest paid for the third quarter, net of hedge cash flow was $8 million.

我們第三季支付的現金利息（扣除對沖現金流）為 800 萬美元。

As we previously mentioned in prior quarters, we have a hedge agreement in place. And at the end of July, the hedge stepped down to $350 million with the strike rate increasing from 0.75% to 1.25%. Resulting in 58% of the loan currently hedged.

正如我們之前在前幾個季度提到的，我們制定了對沖協議。7月底，避險金額降至3.5億美元，履約率從0.75%上升至1.25%。導致目前58%的貸款被避險。

Starting in the fourth quarter of this year. The hedge cash flow is expected to decline approximately $3 million per quarter until the next step down in July 2026 the cash interest paid for 2024 net of hedge cash flow is expected to be approximately $34 million.

從今年第四季開始。對沖現金流預計每季下降約 300 萬美元，直到 2026 年 7 月進一步下降，扣除對沖現金流後，2024 年支付的現金利息預計約為 3,400 萬美元。

Now let me provide a recap of Gogo's capital allocation priorities that have not changed first, maintaining adequate liquidity.

現在讓我回顧一下Gogo沒有改變的資本配置重點，首先是保持充足的流動性。

Second, continuing to invest in strategic opportunities to drive competitive positioning and financial value including Gogo 5G and Galileo third, maintaining an appropriate level of leverage for the economic environment with a target net leverage ratio of 2.5 to 3.5 times.

其次，繼續投資於推動競爭定位和財務價值的策略機會，包括Gogo 5G和伽利略。

And finally, returning capital to shareholders.

最後，向股東返還資本。

We have executed across all priorities in the third quarter. We repurchased approximately 1 million shares at a total cost of $7.6 million in October. We completed the last 10 B 51 share repurchase plan with a total cost of $38 million and 4.5 million shares repurchased since November 2023 Gogo has approximately $12 million remaining of the $50 million. Repurchase authorization Our board approved in September 2023 with the pending Satcom direct acquisition that we expect to close. By the end of this year, we have obtained a fully committed financing as previously disclosed. Having further progressed the financing process, we now expect to borrow approximately $250 million of term loans and use an additional $25 million of cash on our balance sheet compared to the $275 million of term loans contemplated at signing.

我們在第三季度執行了所有優先事項。10 月份，我們回購了約 100 萬股股票，總成本為 760 萬美元。我們完成了最後一次 10 B 51 股票回購計劃，總成本為 3,800 萬美元，自 2023 年 11 月以來回購了 450 萬股股票，Gogo 的 5,000 萬美元中剩餘約 1,200 萬美元。回購授權 我們的董事會於 2023 年 9 月批准了即將完成的 Satcom 直接收購，我們預計將完成該收購。到今年年底，我們已經獲得了先前披露的全額承諾融資。融資流程取得進一步進展後，我們現在預計將借入約 2.5 億美元的定期貸款，並在資產負債表上額外使用 2500 萬美元的現金，而簽署時計劃的定期貸款為 2.75 億美元。

While the recent news of United Airlines deal with Starlink, we have put pressure on the financing process. This is the right financing mix for Gogo at this time. We are confident that our financing structure will serve Gogo's needs for this transaction and enable us to deliver on the value of this combination with Scom Direct.

而最近聯合航空與星鏈達成交易的消息，給我們的融資進程帶來了壓力。這是目前 Gogo 正確的融資組合。我們相信，我們的融資結構將滿足 Gogo 對本次交易的需求，並使我們能夠實現與 Scom Direct 合併的價值。

We expect this transaction will increase our net leverage ratio temporarily to approximately four times at closing. We have committed that we will not pursue more share share repurchases until our net leverage ratio gets back into our target range of 2.5 to 3.5 times which we expect will occur in 1 to 2 years, post closing of the acquisition.

我們預計此交易將在交割時將我們的淨槓桿率暫時提高至約四倍。我們承諾，在我們的淨槓桿率回到 2.5 至 3.5 倍的目標範圍之前，我們不會進行更多的股票回購，我們預計這將在收購完成後的 1 至 2 年內實現。

Now I'll turn to our financial outlook.

現在我將談談我們的財務前景。

We have updated our 2024 financial guidance and now anticipate 2024 adjusted EBITA in the range of 120 to $130 million versus at the top end of the previous range of 110 to $125 million. The increase is primarily attributed to a timing shift in spending of certain strategic and operational initiatives including Gogo 5G and Galileo from $26 million previously to approximately $20 million.

我們更新了 2024 年財務指引，目前預計 2024 年調整後 EBITA 範圍為 1.2 億至 1.3 億美元，而先前範圍的上限為 1.1 至 1.25 億美元。這一增長主要歸因於 Gogo 5G 和 Galileo 等某些策略和營運計劃的支出從先前的 2,600 萬美元增加到約 2,000 萬美元。

We now expect 2024 CapEx to be approximately $30 million versus our prior guidance of $35 million.

我們現在預計 2024 年的資本支出約為 3000 萬美元，而我們之前的指導為 3500 萬美元。

Our revised target includes approximately $20 million for strategic initiatives including Gogo 5G Galileo and the LTE network build out.

我們修訂後的目標包括約 2,000 萬美元用於策略性舉措，包括 Gogo 5G Galileo 和 LTE 網路建置。

We anticipate 2024 free cash flow to be in the range of 55 to $65 million which is an increase from our prior guidance of 35 to $55 million.

我們預計 2024 年自由現金流將在 5500 至 6500 萬美元之間，這比我們之前指導的 3500 至 5500 萬美元有所增加。

This includes approximately $40 million of expected FCC spend including nonreimbursable development spend and approximately $35 million of FCC C grant reimbursements received the decrease in FCC reimbursements and spend compared to prior expectations as a result of timing shifts within the program.

這包括約4,000 萬美元的預期FCC 支出（包括不可報銷的開發支出）和約3,500 萬美元的FCC C 補助報銷，由於該計劃內的時間變化，與先前的預期相比，FCC 報銷和支出有所減少。

The increase in our free cash flow guidance is reflective of the higher adjusted EBITA and lower expected CapEx.

我們自由現金流指引的增加反映了調整後息稅折舊攤提前利潤的提高和預期資本支出的降低。

As I mentioned earlier, we expect negative free cash flow in the fourth quarter due to a large swing in networking capital and lower adjusted.

正如我之前提到的，由於網路資本的大幅波動和調整後的較低，我們預期第四季的自由現金流為負。

In addition, we continue to maintain a target of 2024 revenue in the range of 400 to $410 million.

此外，我們繼續將 2024 年營收目標維持在 4 億至 4.1 億美元之間。

As mentioned at the top of my prepared remarks, we are withdrawing our multiyear long term financial targets previously provided in our second quarter earnings call due to the pending acquisition of dotcom direct, which we expect to close by the end of this year.

正如我在準備好的發言中提到的，由於我們預計將在今年年底完成對 dotcom direct 的收購，我們將撤回先前在第二季財報電話會議中提出的多年長期財務目標。

We announced last month that we expect the transition will meaningfully change the financial profile of our business by immediately doubling our scale and unlocking between 25 million to $30 million in annual run rate, synergies over two years, the pro forma combined company is anticipated to generate 2024 revenue of approximately $890 million with approximately 24% adjusted debt margins and more than $100 million in free cash flow. We expect our combined business will be able to swiftly delever the debt we are taking on to fund this acquisition, continue to invest for the future and return cash to shareholders over the long term with the anticipated launch and generation of service revenue from Gogo Galileo and Gogo 5G. We expect the combined company's long term annual revenue growth to be in the 10% range with adjusted ebita margins in the mid 20% range. Keep in mind that these long term figures are often anticipated revenue base more than two times what we have today to drive significantly greater absolute dollars in both adjusted EBITDA and free cash flow.

我們上個月宣布，預計此次轉型將顯著改變我們業務的財務狀況，我們的規模將立即擴大一倍，年運行率將達到2500 萬至3000 萬美元，預計合併後的公司將在兩年內產生綜效2024 年營收約 8.9 億美元，調整後債務利潤率約 24%，自由現金流超過 1 億美元。我們預計，隨著 Gogo Galileo 和 Gogo Galileo 的預期推出和服務收入的產生，合併後的業務將能夠迅速減少為此次收購提供資金的債務，繼續為未來投資，並長期向股東返還現金。 5G。我們預計合併後公司的長期年收入成長率將在 10% 左右，調整後的 EBITA 利潤率將在 20% 左右。請記住，這些長期數字通常是預期收入基礎的兩倍以上，從而推動調整後 EBITDA 和自由現金流的絕對美元大幅成長。

In conclusion, Gogo's third quarter performance reflects our commitment to strategic investments and our disciplined financial management. Through this anticipatory period of our product life cycle, we are focused on investing to support long term growth and value through our key initiatives including the upcoming launches of Gogo Galileo and 5G.

總之，Gogo 第三季的業績反映了我們對策略投資的承諾和嚴格的財務管理。在我們產品生命週期的這段預期時期，我們專注於投資，透過我們的關鍵措施（包括即將推出的 Gogo Galileo 和 5G）來支持長期成長和價值。

Additionally, we expect the pending acquisition of Satcom Direct will be a creative on day one, strengthen our market position and enhance our long term value creation.

此外，我們預計即將進行的 Satcom Direct 收購將在第一天就具有創造性，加強我們的市場地位並增強我們的長期價值創造。

Before we open the floor for questions. I want to express my gratitude to the entire Gogo team for their hard work commitment to our business and dedication to providing exceptional service to our customers operator. This concludes our prepared remarks. We are now ready to take our first question.

在我們開始提問之前。我要對整個 Gogo 團隊表示感謝，感謝他們對我們業務的辛勤工作以及為我們的客戶運營商提供卓越服務的奉獻精神。我們準備好的演講到此結束。我們現在準備好回答第一個問題。

(Operator Instruction)

（操作員說明）

Sebastiano Petti with JP Morgan.

摩根大通的塞巴斯蒂亞諾·佩蒂。

Hey, everybody. Well, you have withdrawn the longer term kind of guidance that you just kind of touched on. Just maybe a housekeeping question. I mean, is there any reason to think that so maybe said differently. So if the, if the transaction will be a creative kind of day one, your previous guidance on a stand alone basis was call it 150 million of free cash flow for next year. I mean, is there anything any reason or any, you know, maybe timing related items that might deviate, you know, shift that, you know, form a free cash flow number one way or another and just trying to, I'm trying to unpack as to maybe why that might not necessarily still be a, you know, a good target as we think about next year. And then another question. Yeah, I think the just taking a step back just thinking about Gogo's strategic fit in avionics longer term, particularly in the set, you know, in the light of the Satcom Direct acquisition. I mean, help us think through maybe again the rationale there, I mean Satcom Direct Deal, particularly as you think about the competitive positioning from GEO you know, GEO offerings and with that specifically, yeah, Gogo is moving into new segments, you know, Leo based, but it seems, but you're also kind of now confronting competitors that you may be not necessarily had to deal with in the past. You know, some of the more established GEO guys, I mean, does that impact how you're thinking about the pricing and margin levers of the business on a longer term basis? Thank you.

嘿，大家。好吧，您已經撤回了您剛才提到的長期指導。也許只是家政問題。我的意思是，有沒有理由這麼認為，也許會有不同的說法。因此，如果交易一開始就是一種創造性的交易，那麼您之前的獨立指導是明年的自由現金流為 1.5 億。我的意思是，有什麼原因或任何，你知道，也許與時間相關的項目可能會偏離，你知道，改變它，你知道，以一種或另一種方式形成自由現金流量，只是試圖，我正在嘗試來解釋為什麼這可能不一定仍然是我們明年考慮的一個好的目標。然後還有一個問題。是的，我認為只是退後一步，考慮一下 Gogo 在航空電子設備領域的長期策略契合度，特別是考慮到 Satcom Direct 的收購。我的意思是，幫助我們再次思考那裡的基本原理，我的意思是Satcom Direct Deal，特別是當你考慮GEO 的競爭定位時，你知道，GEO 產品，特別是，是的，Gogo 正在進入新的細分市場，你知道，獅子座，但看起來，你現在也面臨過去不一定要面對的競爭對手。你知道，我的意思是，一些更成熟的 GEO 人員，這是否會影響你對長期業務定價和利潤槓桿的看法？謝謝。

So we'll Jessics answer the first part of your question and I'll take the second.

我們將由 Jessics 回答你問題的第一部分，我將回答第二部分。

Okay. So a couple of things, Sebastiano that is going to be changing for 2025 free cash flow from the Q2 that the targeting 150 million next year. So for Gogo standalone, well, and actually for the combination, a few things are going on. So one, you know, through this acquisition or due to this acquisition, we are taking on more debt. So that will be increasing the the interest expense, you know, impacting our free cash flow. So, so that's due to the combination, but with regards to Gogo, stand alone, a few things are going on. So we will have more equipment revenue next year. And with the demand of HDX that we're seeing that's probably going to increase even more and that's going to have just, you know, equipment revenue in general is going to have lower margin. We also are going to be very competitive in terms of our equipment pricing and have, you know, introduced some incentive programs as well. That's going to be impacting the free cash flow next year. And then, you know, as we go through in some of the timing shifts with regards to FCC that also impacts next year. And then, as mentioned, some of the benefit we're seeing this year with APEX and CAPEX pushing out for our programs into 2025 that also will have a negative impact into 2025 next year. But as the companies come together, obviously, we will have to work through, you know, integrated business plan and you know, work through what our impacts are expected with regards to 2025.

好的。因此，Sebastiano 將改變 2025 年第二季自由現金流的目標，明年目標為 1.5 億。因此，對於 Gogo 獨立版來說，實際上對於組合版來說，有些事情正在發生。所以，你知道，透過這次收購或由於這次收購，我們承擔了更多的債務。因此，這將增加利息支出，影響我們的自由現金流。所以，這是由於合併造成的，但就 Gogo 而言，單獨來看，有一些事情正在發生。所以明年我們會有更多的設備收入。隨著我們看到 HDX 的需求可能會增加更多，你知道，設備收入整體的利潤率將會降低。我們在設備定價方面也將非常有競爭力，並且您知道，我們也推出了一些激勵計劃。這將影響明年的自由現金流。然後，你知道，當我們經歷一些與 FCC 相關的時間變化時，這也會影響明年。然後，如前所述，我們今年看到的一些好處是 APEX 和 CAPEX 將我們的計劃推遲到 2025 年，這也會對明年的 2025 年產生負面影響。但顯然，隨著這些公司走到一起，我們將必須制定綜合業務計劃，並制定我們對 2025 年的預期影響。

Thanks, Jessics.

謝謝，傑西斯。

I guess you know, Sebastiano in answering your question, this ironically, I would say this deal for us is all about Leo not GEO and you'd say well, yeah, but they're a GEO company but but you have to look at is their distribution channel and the verticals they serve and how that plays into to LEO connectivity. So the first of all, the 1,300 customers they have today and their ability to provide the right kind of service to the you know, large jet 7,000 Intercontinental kind of jets that are very lucrative customers. We think gives us ability to actually upgrade those 1,300 by adding Leo. We think many will keep GEO because of the kind of expense they have and their demand for connectivity, they want to add both capacity that that Leo and GEO together can provide as well as to have the redundancy that GEO can provide. But for us, it's all about adding that Leo sale on top of those 1,300 expanding that within that segment, which which SCOM knows how to serve really very well. Second in the in the mill gov market where they're really growing quickly right now, we think that our LEO product again is a great add on to the GEO and in the military, there's really going to be, they're really going to desire to have both because of the whole pace concept, which is that you need a primary alternative contingency and emergency connectivity.

我想你知道，塞巴斯蒂亞諾在回答你的問題時，諷刺的是，我會說我們的交易完全是關於Leo 而不是GEO，你會說好吧，是的，但他們是一家GEO 公司，但你必須看看是他們的分銷管道和他們服務的垂直領域以及它們如何影響 LEO 連接。首先，他們現在擁有 1,300 名客戶，並且有能力為大型噴射機 7,000 架洲際噴射機提供適當的服務，這些客戶是利潤豐厚的客戶。我們認為，透過添加 Leo，我們能夠真正升級這 1,300 個。我們認為許多人會保留 GEO，因為他們的費用和對連接的需求，他們希望增加 Leo 和 GEO 共同提供的容量以及 GEO 可以提供的冗餘。但對我們來說，這一切都是為了在 1,300 輛銷售的基礎上增加 Leo 銷售，從而擴大該細分市場的銷售範圍，SCOM 非常清楚如何提供服務。其次，在工廠政府市場中，他們現在確實在快速成長，我們認為我們的 LEO 產品再次成為 GEO 的一個很好的補充，在軍隊中，真的會有，他們真的會想要兩者兼得是因為整體速度概念，即您需要主要的備用緊急和緊急連接。

So, again, you know, we as we look at this and build our business case, it wasn't really around keeping the 1,300 as GEO customers, it was about moving those to Leo. And if we didn't keep any on GEO the business case closed, you know, but we think we'll actually have the opportunity to keep a lot of them on there. Beyond that, you know, geo connectivity is is improving rapidly and over the next year or two, you know, geoc speeds will achieve 100 megabits per second. You know, you'll still have the latency issues, but that's going to be a pretty good backup system and a really nice way to augment Leo connectivity. So we do think that a lot of people will, will, will elect to keep it. So I don't know if that answers your question in terms of the competition, but it's how we looked at the deal. And again, I'd say it's primarily about driving growth of our leo products and keeping them, keeping the GEO is a nice to have, it's sort of an incremental benefit.

所以，您知道，當我們研究這個問題並建立我們的業務案例時，我們並不是要真正將這 1,300 名客戶保留為 GEO 客戶，而是要將這些客戶轉移到 Leo。如果我們沒有在 GEO 上保留任何商業案例，你知道，但我們認為我們實際上有機會將其中的許多案例保留在那裡。除此之外，地理連接正在迅速改善，在未來一兩年內，地理連接速度將達到每秒 100 兆位元。你知道，你仍然會遇到延遲問題，但這將是一個非常好的備份系統，也是增強 Leo 連接性的一個非常好的方法。所以我們確實認為很多人會選擇保留它。所以我不知道這是否能回答你關於競爭的問題，但這就是我們看待這筆交易的方式。再說一遍，我想說這主要是為了推動我們的 leo 產品的成長並保留它們，保留 GEO 是一件好事，這是一種增量效益。

That's helpful, Jessics. A quick follow up just on the equipment pricing, just going back to the free cash flow pieces. And so in regards to the demand of HDX, are you just thinking, does that mean maybe the working capital tailwind that from the build up of inventory this year? Maybe because demand is so great that that's less of a tailwind next year or is it more of a, you know, maybe there's a little bit of just given your competitive pricing, maybe that's kind of what you're inferring in terms of the.

這很有幫助，傑西斯。快速跟進設備定價，然後回到自由現金流部分。那麼對於 HDX 的需求，您是否在想，這是否意味著今年庫存的增加可能帶來營運資金的推動？也許是因為需求如此之大，以至於明年的順風車就不那麼大了，或者更多的是，你知道，也許考慮到你的競爭性定價，也許這就是你所推斷的。

Yeah, that's right. I was talking about the competitive pricing. So while we, while our demand, you know, will increase revenue and you'll have that benefit and it won't necessarily flow through to the bottom line for EBITA down free cash flow through the pricing. Super helpful.

是的，沒錯。我說的是有競爭力的價格。因此，雖然我們的需求會增加收入，但你會獲得這種好處，但它不一定會透過定價來降低自由現金流，從而影響 EBITA 的底線。超有幫助。

Thank.

感謝。

Thank You.

謝謝。

Guys.

夥計們。

Thank you.

謝謝。

Joe Rice with Raymond James.

喬·賴斯和雷蒙德·詹姆斯。

Thanks morning, everybody.

謝謝大家早安。

Hey, Rick, how you doing?

嘿，瑞克，你好嗎？

Good, thanks. Hey, I want to follow up on some special questions. You know, first time frame to closing. You're saying year end, obviously, it's a fast one. It's a private company but walk us through long holes in the tent to get it done. Is, is this a year end closing? Is it earlier than that? Just kind of thinking, when should we think of this deal getting closed?

好的，謝謝。嘿，我想跟進一些特殊問題。你知道，第一個時間框架到結束。你說的是年底，顯然，這是一個很快的事。這是一家私人公司，但引導我們穿過帳篷上的長洞來完成它。請問，今年底了嗎？比這更早嗎？只是想，我們什麼時候該考慮這筆交易完成？

Yeah, we're hoping for having it closed at the beginning of December. You know, it could obviously anything it could drag longer. A couple of different tracks. Obviously there's a commercial consent track. All the required, significant commercial consents have been obtained in terms of filings. We don't have a lot in this deal. Obviously, we have got DOJ, we, we filed, we just refiled a few days ago. So there's a new 30 day ticker that started, I don't know, last week sometime. You know, if we get through in another 30 days, we should be able to close at the beginning of December, C MA and UK. They've asked a few questions, but so far that looks like it's moving along reasonably well and that would actually, on the current timeline would be cleared before the DOJ would, we've got a foreign direct investment filing in Canada so far we haven't heard from Canada that expires mid November if we don't hear from them. And then we've got a filing in Saudi Arabia, which we think probably also done by the end of November at this stage. So those are the regulatory hurdles, financing is done. That's complete. So we are, you know, we have committed financing so that's closed. And then, you know, we're working very hard on integration so that we can hit the ground running day one, got 11 integration teams working on different functional areas of the company. And we think, you know, it's a lot of work to be done, but we're going to be ready to go when we close.

是的，我們希望它能在 12 月初關閉。你知道，它顯然可以做任何可以拖得更久的事情。幾首不同的曲目。顯然有一個商業許可軌道。所有必需的重要商業同意均已在備案中獲得。我們在這筆交易中沒有太多東西。顯然，我們已經得到了司法部的支持，我們，我們提交了文件，我們幾天前剛剛重新提交了文件。我不知道，上週某個時候開始了一個新的 30 天行情。你知道，如果再過30天，我們應該可以在12月初關閉C MA和UK。他們問了一些問題，但到目前為止，看起來進展相當順利，實際上，按照目前的時間表，我們會在司法部之前得到批准，到目前為止，我們已經在加拿大收到了外國直接投資備案還沒有收到加拿大的消息，如果我們沒有收到他們的消息，該協議將於11 月中旬到期。然後我們在沙烏地阿拉伯提交了一份文件，我們認為現階段也可能在 11 月底之前完成。這些都是監理障礙，融資已經完成。這樣就完成了。所以，你知道，我們已經承諾融資，所以一切都結束了。然後，您知道，我們在整合方面非常努力，以便我們能夠在第一天就開始運作，讓 11 個整合團隊在公司的不同職能領域工作。我們認為，你知道，還有很多工作要做，但我們將在關閉時做好準備。

Okay, thanks. Obviously, you know, the margins are left, it's a reseller, so they don't have their own network. So no surprise that margins are less but driving for better revenues, excuse me and cash flows. But it does seem like I get the law of large numbers impact, but the previous guys for standalone Gogo was 15 to 17% revenue growth. And now the combined company is, is 10%. How should we think about? Was that just the large numbers? Was that bringing Satcom Direct end that pulls it down, help us kind of unpack kind of what causes that stand alone 15 to 17 to go down to 10% longer term.

好的，謝謝。顯然，你知道，利潤是留下來的，它是經銷商，所以他們沒有自己的網路。因此，利潤率下降並不奇怪，但會帶來更好的收入和現金流。但我似乎確實受到了大數法則的影響，但之前獨立 Gogo 的收入成長了 15% 到 17%。現在合併後的公司是 10%。我們該如何思考？只是因為數字很大嗎？是不是 Satcom Direct 的終結導致了它的下降，幫助我們解開導致獨立 15 到 17 長期下降到 10% 的原因。

Actually. Yeah, I mean, the stand on Gogo still at 15 to 17%. And so it's what's bringing it, bring it down is us just I think being cautious about what's going to happen with GEOC connectivity. And you know, we haven't you know, we're not yet combined, you know, combined company. So we can't go through all the detailed planning that we'd like to before we step out with revised guidance. You know, we'll do that after we close and, and we'll update people, you know, at that time.

實際上。是的，我的意思是，Gogo 的支持率仍然在 15% 到 17%。因此，這就是我們帶來它、帶來它的原因，我認為對 GEOC 連接將會發生的事情保持謹慎。你知道，我們還不知道，我們還沒有合併，你知道，合併後的公司。因此，在我們提出修訂後的指導意見之前，我們無法完成我們想要的所有詳細規劃。你知道，我們會在關閉後這樣做，並且我們會在那時向人們通報最新情況。

All right. So are we thinking that if we do get a December closing, there could be revised guidance in the month of December before we get into the learning cycle?

好的。那麼我們是否認為，如果我們確實在 12 月結束，那麼在我們進入學習週期之前，可能會在 12 月修改指導意見？

No, I wouldn't think it's going to be that quick and I'll tell you, Rick, you know, we are, we're going through a very deliberate and organized integration planning process.

不，我認為不會那麼快，我會告訴你，瑞克，你知道，我們正在經歷一個非常深思熟慮和有組織的整合規劃過程。

And so we're actually going to get the planning done before we do the numbers so that we actually are planning something that's real. So we'll we'll probably provide that guidance more likely on our Q4 earnings call and then that will be 25 guidance and then shortly thereafter we'll come out with revised long term guidance.

因此，我們實際上會在計算數字之前完成規劃，以便我們可以真正規劃出一些真實的東西。因此，我們可能會在第四季度的財報電話會議上更有可能提供該指導，然後這將是 25 指導，然後不久我們將推出修訂後的長期指導。

Okay. Makes sense. And then Jesse, I think you mentioned obviously, the financing of the deal is a little different 250 million term 25 million cash on hand.

好的。有道理。然後傑西，我想你顯然提到過，這筆交易的融資有點不同，2.5 億期限，2500 萬手頭現金。

Now you mentioned the spacex Starlink United one was that pressuring the debt markets or maybe elaborate a little bit more on, on the change in the financing of the transaction?

現在你提到SpaceX Starlink United的一件事是給債務市場帶來壓力，或者可能詳細說明交易融資的變化？

Yeah, so we previously stated that and let me just be clear because it's not just, it's not 25 million of cash, obviously, it's 25 million more in cash, you know, to, to be able to.

是的，所以我們之前說過，讓我澄清一下，因為這不僅僅是 2500 萬現金，顯然，還有 2500 萬現金，你知道，能夠。

But we were targeting, you know, 275 initially. And as mentioned, you know, the right at the time that we were kind of going into the market is when the United Airlines and Starlink announcement came out and that did put pressure, you see where our second, you know, our current loan is trading down. So it really was the right mix for us to be able to put more cash because we have the ability to do that in our balance sheet to put more cash upfront and have, you know, less on the debt markets. It allows us to have better financial terms for the deal than what we thought we would have gotten. So that was the best way to proceed.

但我們最初的目標是 275 個。正如所提到的，你知道，我們進入市場的時候是聯合航空和星鏈公告發布的時候，這確實帶來了壓力，你知道我們的第二筆貸款在哪裡，你知道，我們目前的貸款在哪裡交易下跌。因此，對我們來說，能夠投入更多現金確實是正確的組合，因為我們有能力在資產負債表中預先投入更多現金，並且減少債務市場上的現金。它使我們能夠獲得比我們想像的更好的交易財務條款。所以這是最好的繼續方式。

I I just want to add, sorry, let me just add, you know, we were trading at par and then United Startling gets announced which has if anything benefits our revenue and you know, in our bond trades off to $94 which is crazy. First of all, we do supply Intel set with a TG connectivity for the regional jets that united. However, in our models, we have taken all that regional jet revenue that we received down to zero and all the guidance we've given over the last several years, it goes to zero in 2026 and we've never counted on that revenue. So frankly, the announcement of that deal will probably not get United Jets Regional Jets moved in 2025 and we may have United revenue actually in 2026. So would actually improve our numbers. So, you know, I just think the market is confused. We don't serve commercial airlines anymore. We don't have anything to do with it and to trade our bonds off from 100 to 94 just seems insane. But, but it happened and it's too bad. So that's going to be a little more expensive than we wanted it to be.

我只是想補充一點，抱歉，讓我補充一點，你知道，我們按面值交易，然後United Startling 宣布，這對我們的收入有任何好處，你知道，我們的債券交易價格降至94 美元，這太瘋狂了。首先，我們確實為聯合支線噴射機提供帶有 TG 連接的英特爾套件。然而，在我們的模型中，我們已將我們收到的所有支線飛機收入降至零，並且我們在過去幾年中給出的所有指導，到2026 年將降至零，我們從未指望過該收入。坦白說，該交易的宣布可能不會讓聯合噴射機公司的支線噴射機在 2025 年轉移，而我們可能會在 2026 年獲得聯合航空的實際收入。所以實際上會改善我們的人數。所以，你知道，我只是認為市場很混亂。我們不再為商業航空公司提供服務。我們與它沒有任何關係，將我們的債券從 100 換成 94 似乎很瘋狂。但是，但是事情發生了，而且太糟糕了。所以這會比我們想要的要貴一些。

Got you. The last one for me is purely selfish. Obviously, from a modeling standpoint that comes direct as a private company, how should we think about getting historical quarterly information to help make the modeling better as we look for 25 to be a year with them in the numbers as well as standalone Gogo.

明白你了。最後一個對我來說純粹是自私的。顯然，從直接作為一家私人公司的建模角度來看，我們應該如何考慮獲取歷史季度資訊來幫助更好地建模，因為我們預計 25 年將是他們的數字以及獨立的 Gogo 的一年。

Well, when the, when the deal closes, you know, just part of the sec requirements, there will be financials, you know, provided in terms of their stand alone financials. So that will be disclosed as part of, you know, normal CC requirements.

好吧，當交易完成時，你知道，這只是證券交易委員會要求的一部分，將會有財務數據，你知道，按照他們的獨立財務數據提供。因此，這將作為正常 CC 要求的一部分進行揭露。

And we did, we did provide some historical, very, very high level historical. I believe it's on our investor relations website as we were going through the the the financing process as well, so we disclose that information as well.

我們確實提供了一些歷史性的、非常非常高水準的歷史。我相信它在我們的投資者關係網站上，因為我們也在經歷融資過程，所以我們也揭露了這些資訊。

Okay, very good. Thanks.

好的，非常好。謝謝。

Everybody.

大家。

Scott with Roth Capital Partners.

史考特與羅斯資本合夥人。

Hey, good morning.

嘿，早安。

Thanks for taking the questions. Hey, good morning, how you doing? Thank you. Hey, just, just quickly on the AOL number. I thought you had some comments, doesn't sound like AOL was down as much as expected and you're starting to see some reactivations as customers have gone into suspensions. I wonder if you could comment on that. I'll read through kind of the worst of it. I'll call it the organic suspension cycle. And also on the Galileo Front, you had some comments about your expectations doubling in 2025. Look with Satcom Direct with the dealer channel that you've been building with the ST CS. Now, I think addressing 18,000 aircraft, could you calibrate us in terms of what that doubling is kind of your expectations in 25 and what kind of constitutes success for Hex and FDX in 25 and 26 and I had one follow up.

感謝您提出問題。嘿，早安，你好嗎？謝謝。嘿，剛剛，很快就接通了 AOL 號碼。我認為您有一些評論，聽起來 AOL 的下滑程度並不像預期的那麼嚴重，而且隨著客戶進入暫停狀態，您開始看到一些重新啟動。我想知道你是否可以對此發表評論。我會讀完其中最糟糕的部分。我稱之為有機懸浮循環。同樣在伽利略陣線，您對 2025 年期望翻倍發表了一些評論。看看 Satcom Direct 與您一直使用 ST CS 建立的經銷商通路。現在，我想針對 18,000 架飛機，您能否根據您在 25 年翻倍的期望以及 Hex 和 FDX 在 25 和 26 年的成功構成何種程度來校準我們，我進行了一次跟進。

Sure. Let me take the first one, Scott. So on AOL, yes, it, it became the decline was better than what we anticipated. We did have higher new activations for the quarter than we had expected, which was good. Obviously, not back to the levels that we had, you know, last year, but still, you know, better than last quarter. And, and then the classic deactivations came in lower than we expected as well. So it was a good quarter for us, the reactivations have been fairly steady. We haven't seen too much of the too much change in that, that's been fairly steady all year long for next quarter. I mean, in terms of just our own forecasting, we're more conservative. We kind of look at the last six months average. So we're expecting that, you know, it won't be necessarily as good. It's hard for us to predict. Obviously, we would hope that it continues on the same path as Q3 and that would be, you know, a good upside for us.

當然。讓我來說第一個，史考特。所以在美國在線，是的，它的下降比我們預期的要好。本季我們的新啟動量確實高於我們的預期，這很好。顯然，我們沒有回到去年的水平，但仍然比上個季度好。而且，經典的停用率也低於我們的預期。所以這對我們來說是一個很好的季度，重新啟動相當穩定。我們還沒有看到太多的變化，下個季度全年都相當穩定。我的意思是，就我們自己的預測而言，我們更加保守。我們查看過去六個月的平均值。所以我們預計，你知道，它不一定那麼好。我們很難預測。顯然，我們希望它繼續走與第三季相同的道路，這對我們來說是一個很好的好處。

Yeah, but current projections would have half good quarter, half bad quarter. It's coming.

是的，但目前的預測將有一半是好的季度，一半是糟糕的季度。它來了。

Down more in terms of our current projections only from, you know, how we do that modeling.

就我們目前的預測而言，更多的下降僅來自於我們如何進行建模。

Yeah. So, and then on the Galileo piece. Yeah, I think we shared at some point that we expected about 200 shipments in 2025. And, you know, I think we're looking at probably more than, well, we're doubling that in terms of our projection right now for 25. Remember that shipments, not units online. You know, that what happens is we'll start shipping to dealers right at the end of December, the STC dealers, you know, they'll develop ST CS, they will, they will start taking more orders as they're developing their ST CS for the models they're developing ST CS for, and, you know, that will ramp over the year.

是的。那麼，然後是伽利略的作品。是的，我想我們在某個時候曾表示，預計 2025 年出貨量約為 200 架。而且，你知道，我認為我們正在考慮的可能不僅僅是，就目前的預測而言，我們將其增加一倍，達到 25 個。請記住，是發貨量，而不是在線單位。你知道，我們將在 12 月底開始向經銷商發貨，STC 經銷商，你知道，他們將開發 ST CS，他們將開始接受更多訂單，因為他們正在開發他們的 STC 經銷商。他們正在開發ST CS 的模型，而且，你知道，這將在一年內不斷增加。

But the demand is unbelievable. I think the market is so happy to have, you know, all the talk with Starlink for, you know, quite a while in the Leo world and all of a sudden there's a home team player, go, go, you know, with a, with a Leo product that's real and it's coming out and they've been able to taste it and, and experience it and, and the response has just been overwhelming. So we're, we're very, very positive about you know, where that's going to go. And frankly, we see some vectors that could drive that 400 up. So mcom.

但需求卻令人難以置信。我認為市場很高興在獅子座世界中與星鏈進行了很長一段時間的所有討論，突然之間有一個主隊球員，走，走，你知道，帶著，一款真實的Leo 產品即將問世，他們已經能夠品嚐、體驗它，反應非常熱烈。所以我們對未來的發展非常非常樂觀。坦白說，我們看到一些向量可以推動這 400 的上升。所以，mcom。

And, and lastly, lastly, if I could just on, on sack from direct demand, you know, talking about the overlap with Leo and go, I'm wondering, does, does that extend beyond the existing Satcom direct installed base today of, of GEO customers? Are you guys are unique in that you're going to be the only provide out there with, with the go Leo solution. So, is that just within the existing base or does it extend to a number larger than that? Thanks.

最後，最後，如果我可以直接需求解僱，你知道，談論與 Leo 的重疊，我想知道，這是否超出了今天現有的衛星通訊直接安裝基礎，GEO 客戶？你們是獨一無二的，因為你們將成為唯一提供 Go Leo 解決方案的人。那麼，這只是在現有基數範圍內還是會擴展到比這個基數更大的數字？謝謝。

I think it extends a number larger than that, you know, Satcom developed two GEO satellite terminals, A K A version and A KU version K A is one is just coming out and the KU has been out about a year and a half, you know, they are you know, superior to any other GEO antenna and, and I can tell you they've been last week, were awarded contract for linefit at a very large OEM. And we think that, that, you know, will provide a steady stream of units online. You know, you're buying an $80 million jet.

我認為它延伸的數字比這個更大，你知道，Satcom開發了兩個GEO衛星終端，A K A版本和A KU版本K A是一個剛剛問世，KU已經問世了大約一年半，你知道，他們你知道嗎，它優於任何其他GEO 天線，而且我可以告訴你，他們上週獲得了一家非常大的OEM 的linefit 合約。我們認為，您知道，這將提供源源不絕的線上單位。你知道，你正在購買一架價值 8000 萬美元的飛機。

What, you know, which, which IFC system do you want? I think half the time the answer is going to be yes, you know, they'll take them all. And so, you know, we think that will drive continued geo growth. Actually, we see, you know, obviously the deterioration of the Leo base driven by, you know, moving to Leo, but there will also be the steady drumbeat of units online coming off of linefit at OEMS that will drive the number up. So, you know, we think it will be around for quite a long time and yes, it'll, it'll grow beyond the 1,300. The other thing that, you know, that, that their presence in that large jet segment does is just give us an incredible number of relationships tools, you know, their software platform, everything else that's sort of tailored to that market segment. And, you know, we can package that with our Leo product and they can sell the hell out of that in the heavy jet market. So again, I think it's, you know, it's getting us a whole segment beyond the 1,300.

你知道你想要哪個、哪個 IFC 系統嗎？我想有一半的情況答案是肯定的，你知道，他們會把它們全部拿走。因此，我們認為這將推動持續的地理成長。事實上，我們看到，顯然，Leo 基礎的惡化是由於遷移到 Leo 而導致的，但 OEM 上線上設備的穩定鼓動也會推動這一數字的上升。所以，我們認為它會存在相當長一段時間，是的，它會成長到超過 1,300 個。你知道，他們在大型噴射機領域的存在所做的另一件事就是為我們提供了數量驚人的關係工具，你知道，他們的軟體平台，以及針對該細分市場量身定制的其他一切。而且，你知道，我們可以將其與我們的 Leo 產品打包在一起，他們可以在重型噴氣機市場上大賣。再說一遍，我認為，你知道，它讓我們獲得了超過 1,300 名的整個細分市場。

Thank you.

謝謝。

And I'm not showing any further questions at this time. I would like to turn the call back over to will for any closing remarks.

目前我不會提出任何進一步的問題。我想將電話轉回給 will，讓他發表結束語。

This concludes the Gogo third quarter of 2024 conference call. Thank you for your participation and look forward to speaking with you soon. You may disconnect.

Gogo 2024 年第三季電話會議至此結束。感謝您的參與，並期待盡快與您交談。您可以斷開連線。

Ladies and gentlemen, just through today's presentation, you may now disconnect and have a wonderful day.

女士們先生們，透過今天的演示，您現在可以斷開連接並度過美好的一天。