the first balance and financial around Oak, through today, update more morning, with remarks walking and everyone. announced in detail. start Then updated capital additional good In and morning. I'll our provide guidance up I'll on context this Thanks, Gogo's we finish quarter sheet my by allocation an I'll strategy, some XXXX performance
revenue, record strong the We fronts; service record increase of in million, shipments on of market $XX.X record first performance During growth result the online with Gogo of led quarter million was quarter XX% $XX.X record year-over-year a and increased high-margin revenue revenue X% driven equipment. revenue company are service in first service this service by the achieved revenue year-over-year. sequentially. Total by team both record for solid and and the in These multiple adjusted revenue, backlog units XX% the ever highest trends an and execution vibrant of higher-than-expected grew EBITDA. in ATG we as records This equipment delivered equipment to quarter, profitability. continued record total
activations that continue strong a of tremendous white record online of coming customers. with market ATG penetrated quarter evidence new XX% of XX% new units is our Notably, the about only with -- continuing of connectivity. ATG customers Wi-Fi the growth to in space we is Our track adding from trend in of
centerpiece first customers In of significant to have has service our equipment online platform described, AVANCE we the is revenue customer increasing highlighted. sequentially. As increase These year-over-year our products units drive an and of the X% quarter, the X,XXX, provide across with of grew new and Oak base the of penetration extensible benefits XX% installed AVANCE our installations other strategy. advanced
has units the to Our and about total by to over averaged the end continue year-over-year approximately our past expect AVANCE reach AVANCE online unit XX% XXXX. of six XX% we growth quarters, ATG of
our Importantly, ATG grew as our increased customers. $X,XXX, ARPU X% of demonstrating we grew units services the online, by year-over-year ATG our to the utilization
to Gogo As demand further driving expand The launch high-rate Oak is data upgrades data described, supporting ARPU opportunity. strong plans, passenger will of growth our in ARPU growth XG our continued Gogo's growth.
in Gogo products. internal history. equipment for for AVANCE Gogo's the high in revenue. XX% first $XX.X equipment LX above a a was our year-over-year units increase budget. delivered also our to AVANCE revenue, We with record LX million was quarter XXX demand turning It and first which Now remarkable quarter, shipped any in
a during promotional a As fourth typically the back-end equipment strongest reminder, due the and year our shipments quarter and be of of tend activity customers. the dynamics in seasonal combination loaded to to are
As and outstanding providing from in This increased the our team, of reach first industry nearly on the chain confidence XX% X,XXX communicated budgeted with foundation XXXX committed is are sheet quarter customers, now capitalize shipments for the our ability to for is supply and equipment versus XXXX sets we Oak expect our is total our guidance X,XXX we're chip and secured the XX% XX% growth XXXX revenue call. today. that these which increase an of on up leverage already to the mentioned, strong ATG units. demand acquire to products. to work We to our unprecedented inventory by thanks coupled balance in
recurring were the delivered Equipment the operating by quarter, decrease revenue margins our now margins model. budget, first XX% XX% in leverage high above first slightly point our to driven in Turning a service percentage X.X profitability. quarter, of from sequentially. strong We
the of We AVANCE our lower objective approximately penetration. of XX% consistent the expect equipment increasing of margins with remainder for strategic year,
higher with average is increased originally equipment versus and than selling scale anticipated the operations budget revenue. this However, production in of increased in benefits an the due price for increase to equipment our
Our updated and expectations guidance margin for for expectation key our XXXX. equipment of driver a revenue is revised
units stronger derisks of targets long-term as Our revenue, to backlog also rising growth record leading more recurring drive service cash flow. our high-margin installed
Moving expenses. operating now to
compared sequentially and including administrative combined expenses. These filed as we quarter decreased XX% marketing, be I in by engineering, factors $XX.X will updated which agreements. agreements to timing increased will to sales and compensation. These contribute reduction expenses, details stock-based non-cash and primarily This were expenses, our and of will of discuss design moment, First XG, administrative well disclose offset partially of an with sales and March and those related year, expense to million. XX-Q as it a was XXXX development, In and driven which more our as X-K increased lower this general employee marketing executive to through compensation levels stock-based XXXX. today. to by The of filed general
an ramp stated previously, particularly for is year, investment we XXXX XG. we expenses Gogo As as
strategically fluctuate this investment spending project will the will the levels operating year. important quarter-to-quarter, While for for drive expenses increased
We continue business XXXX. XX% our leverage adjusted in of target operating margin is demonstrated meaningful EBITDA reflect to to model expect time, by which our long-term over approaching
on on XG our program on the budget. XXXX, half Now our of additional XG track network ATG I'll second provide time in and deploy profile. and spending some remain We on Gogo to detail
to recording for are deployment than project Our and the while due OpEx overall our is timing and the comprised $X.X to quarter-to-quarter, I of unchanged. of the our was million of million be expected of cost shifting first in CapEx. want XG was XG lower expenses $X.X $X.X million expectations Gogo schedule quarter that, and clear spend in in
costs. this a XG an as XG majority well our production several which with our XXXX, to and in as million commercially meaningfully over reiterate we spend, next quarters, Google costs, XG-related increase network approximately investments of the for expectations ramp network and CapEx, $XX expect in deployment To of our in we XG operations versus in our as budgeted expenses half Gogo XXXX, project the includes development have and complete We significant launch external additional second operating marketing, year.
Gogo's from Of what this growth course, dampens increased been would for spin this without XXXX EBITDA investment. adjusted rate have it
in over total we and to cash After in side, to forecast our CapEx expectations XG flow by XX% cash XXXX. ramp free completed in of XXXX the we Gogo end very be expect XXXX. launched, driving of rates XG EBITDA free beyond, the On conversion of attractive is beginning our a investment significant adjusted flow,
XX% net share basic Moving increase driven on to the line. earnings $XX.X Gogo increased service XX% in to diluted income share. Gogo's and earnings EBITDA translating of the in bottom $XX.X revenue. primarily first by in to million, in delivered per $X.XX million a adjusted year-over-year per $X.XX quarter,
as pre-tax tax quarter, we expect We income future positive this did generate continue to non-cash incur in expense as income. to quarters, we
also next expect for XX months. to portions reversals our see additional valuation to XX the allowance of remaining We within
end Importantly, of based expect by for planning we period not on our extended horizon. substantial to NOL position, pay an taxes we the cash a amount our modest meaningful may time, pay of do but
peers. We expect stock-based the income an increase face very labor we retention compensation earlier demand equity and rates to This relative agreements issued future contributor quarters Incidentally, to is program this employment expense employee in as high grants a in to we I to a important, believe to meaningful all our market. mentioned annual in customer the executive especially employees. due reflect in is our constrained surge net
flow during the quarter. Now $X.X turning generated in to free million cash free flow. cash We
change as quarter net XXXX. accounts to of capital, flow On in first in last a being year, prior in flow are our as the increased and in accounts year $X.X payments, change our CapEx and in $X.X use change to primarily quarter of from fourth of higher ahead increased the due increasing to XXXX we was for due the inventory purchases flow demand. Our million interest receivable. due driven payments by our well million investment timing made year, of following cash receivable free down quarter a basis, declined guidance XXXX, cash sequential working a and cash first from period, Despite free in the the the the refinancing this in $XX.X bonus million free employee
I'll with million Now, as position to undrawn. $XXX of $XXX.X and Gogo's our remains a Gogo sheet. a strong million discussion revolver we in the ended cash liquidity hand, turn very balance brief of is quarter on
of of quarter, million XXth the end of first which As This the and $XXX.X includes outstanding on notes, B the million maturing million approximately had we in earlier outstanding the $XXX.X converted. Term in convertible are Loan $XXX.X debt. approximately this month, unless
we we stock. have in As conversions prior discussed, will maturity settle to any
and Let provide quick me timing of reminder a process. the of impact this
price current is holders us the process changes convertible adjusted of months our and to Given XX debt $XXX voluntary $XX After remaining been EBITDA conversion of expected to from structure, approximately convert. by elect simplifies outstanding. discuss their we million million must to the based forward. Holders a net notify in notes this plan, from annually to all payments. interest our This four hedging The stock to LIBOR for will a before $XX convert XXXX, May This on convertible contract to relative which will notes XX range a I reduced March $X million approximately rates, refinancing in capital potential to notes. inflows going leverage by add the below price, concluding refinancing of Gogo the to million our our comprehensive impact capital times total expect XX $XX bring shares, on of which maturity million also will ratio XXXX have targeted further about the moment. step us April our reduce our will putting in ended expense shares excludes XXX The equitization Gogo's million XX, our of structure.
our As a progress, evidenced financial sheet to take and manage of been as of flexibility, is competitive the provides will actions financial significant now and line. by we've growth remarkable strength. strategic operational able to It supply a and long-term propel chain a help the result bottom our Gogo's balance
previous we balanced primary on strategy we've shared As are focused of pursuing order allocation the on a calls, actions capital priority. following in four
Gogo XG launching on the is budget. on priority second first and of year, time half this The in
stated is four priority leverage. our with The we objectives last cash, balance our available considering liquidity our sheet the second reducing majority ratio in while also a net targeting point, this on of our of revolver less maintaining call minimum but $XXX On capacity. than included that times, leverage financial million
moment during mentioned I the a quarter. achieve ratio to our we leverage expect ago, As targeted second
third priority The to finally, capital which our value-creating returning to our in our prong the And of in make and opportunity is including allocation business, Oak broadband detail. some evaluating strategy global discussed investments LEO-based is we're capital strategic shareholders. fourth
you progressing priorities. three these As through of can see, well we the are first
to the right at will way continue right We the shareholders capital to and tunnel. assess returning in
noted registration last that exchanged piggyback we Let statement registration of under shelf XXXX. me this to The add final in was received I in this registration quarter to shares shelf Thorne back the that rights pursuant Gogo GTCR notes agreement. also family rights common that This customary Board of members have April when demand capital XXXX, filed registered one issued housekeeping point morning. for rates. its our discussion stock of registration the filed and convertible structure shelf pursuant related piggyback certain to and our to
million $XXX revenue Now million guidance I'll a to compared guidance XXXX range our in year meaningful to $XXX $XXX XXXX, range now to to of Gogo that of of in full the $XXX ship now deliver full shipments turn up financial approximately prior and XXXX improvement equipment to previous expects we our units $X,XXX. million. our for morning. million to ATG X,XXX We increased XXXX XX% nearly approximately year this from from announced guidance expect
adjusted our to and $XXX this year for EBITDA to to million $X reflecting planned in patent expect litigation. million legal increase the factoring full expenses year related in our also achieve previously We announced million the of XG investment $XXX range, SmartSky the at also estimated high-end
to In both cash flow to for guided expect $XX free of addition range raised XXXX low-end and range to million. $XX it in raising our guidance be by of previously $XX adjusted million in the we million our EBITDA, for revenue and the now
with expectations XG. free million of flow expenditures $XX approximately the reflect approximately of to million, Our cash capital tied Gogo $XX spend CapEx
Our targets five remain year unchanged.
derived the As and guidance investments broadband planned Google initiative. potential long-term not consideration, a XXXX investments strategic include include XXXX do under baseline from in are currently and but our long-term including the XG, targets global reminder, plan, forecast which
we platform outlook position, us tailwinds even from brighter demonstrates market our is the believe and of sheet. attractive our service our our aviation industry, strength balance the momentum stemming the building, future, our in quality which an business As leading for and strong product positions
up open call to to entire Oak's the we just thanks heartfelt questions, I'll Before team. Gogo the echo
dedication and to industry-leading us value question. prepared and hard inspire remarks, Your now our we're as ready this impactful and first shareholders. service you. our our our for for for Operator, and innovation deliver Thank work you customers relentless concludes continue
