start our good initiatives. updated some Thanks, I'll which second Oak, reflect morning, XXXX our Gogo's by an through and quarter allocation finally, and then remarks around everyone. guidance I'll capital performance, our up on targets, additional and our walking priorities, global now my financial finish with update provide expectations long-term In for broadband today, financial I'll context
revenue, service During the unit second highs, several including quarter, record total advanced shipments. revenue we achieved and
grew For year-over-year. XX% our of record quarter, revenue total the million $XX.X second
ATG continue revenue service expand ATG record we by driven with to year-over-year, XX% of Notably, the quarter was the reach units from line and in grew market new X% in of XX% $XX.X top sequentially. online activations Our our million coming customers. as
previously, discussed of just connectivity. we in over aircraft American As business XX% have North flight
So, of growth to in space there's the plenty open future support market our expectations.
our where centerpiece increase the and we As events market sequentially. X,XXX of grew its American to both increasing events in of online XX% described, operate second platform future. advanced initiatives implement and X% In capabilities, a the North GBB we penetration strategy, globally our year-over-year units the remains of in an quarter, as Oak leveraging today
by expect XX% units We our ATG continue to approximately of the end reach XXXX. of advanced online to total
was our online, to X% units $X,XXX. our ATG year-over-year ARPU we As ATG grew
the to Continuing of aircraft, time. demand revenue the our ATG our opportunity revenue, quarter of the reflects utilization a quarter ARPU, the continued will customers deferred by by services As year-over-year, million growth in the impact of XXXX, It's customers. worth growing X% of data excluding ARPU benefited XG contract; to second is driving recognition exceptionally from that reminder, $X.X customer in our our deferred data related line over rate increased ARPU in increased smaller XXXX a which second demonstrating designed launch of this also for for growth upgrades ARPU our ARPU includes high supporting those go our our still impact has noting attractive expand economics. Gogo unit lower LX this plans, further ARPU growth. The product rapidly but growth of
second delivered in revenue, year-over-year XX% equipment advanced Gogo revenue turning increase the units. in a equipment as record Now shipped to million we a quarter, XXX $XX.X
strongest inventory due approximately year products. coupled our XXX the outstanding are acquire will the strong to of tend already XXXX, chain in year to customers. equipment we to and Thanks typically sheet be all the chipsets units activity dynamics in of leverage demand end XXXX. seasonal our the XX% remaining This shipped versus XXX by back for X,XXX with and a to be loaded a promotional customers. quarter advanced increase shipments the units previously, capitalize our supply of on team, As ability in total and these of We're secured to to our the unprecedented expecting committed combination first-half with were said ship and fourth to our work during balance
is average service as more year exceptionally Our leading margin, in increase of XX% network for margin of both increase recurring the with due XX.X% growth long-term six quarter, service were second We drive our The an costs. to X% equipment year-over-year. margins for ATG This strong point revenue by the XX.X% delivered in expectations strong backlog margin margins second a XX materially and combined flow. higher installed, our ATG a shipment for equipment percentage quarter, in high cash de and long-term. sequentially point the stronger units revenue, risked to the year range margin equipment XXXX expected target service percentage our year-over-year in within two to driven service of life, and XX% decrease decrease targets
As our of strategic objective XX% we said, of equipment remainder of advanced approximately for margins the penetration. have expect with we XXXX consistent driving previously
Moving now GBB. investment year-over-year as expenses increased was in marketing our and for and driven stock and and to increases engineering based by expenses to million. $XX.X design general development XX% operating primarily well expenses, as second expense, This XG combined quarter compensation in administrative development sales
agreements, comprehensive we As a employment contribute compensation in continue increased planning, stock of we compared as as succession in based our of will expense to of the to part XXXX. executive XXXX reminder of March to XXXX, updated XXXX, levels and non-cash
we've As XG. XXXX as also investments stated ramp an previously, investment we is particularly global for year
have levels to strategically quarter-to-quarter, project investment fluctuated drive year. will the operating fluctuate While expenses the and for continue will increased this spending important for
We invest our and in this this to also GBB development in started for through continue initiative XXXX. quarter will
leverage, of of undergirds business which is One Gogo's adjusted hallmarks our long-term of the approaching EBITDA operating XX% in XXXX. our strong margin model target
operating Importantly, impact we are seeing already the of leverage. this
As up incremental XX% the X% which quarter, in translates just XXXX, was the XX% margin. a revenue service service over while service our into quarter of second of grew second cost
million and spend $X Now, related CapEx. of invoices million our was the GBB million I'll The Starting OpEx of second and of came quarter $X.X cash profiles. provide than both some outflows. in XG the and respective XG with $X.X expected in program, timing and to additional lower Gogo due details in spending CapEx comprised in Gogo XG their our our on initiatives
majority a CapEx with to second-half to ramp in spend significant continue XG our of XXXX. through expect the We
to We million be XXXX. $XX CapEx expect in XG approximately
of to push of XXXX spend hard predict. which the could timing to some due However, invoices, the are into
quantify Oak impact to into early delay, areas. it chip believe the the fall described, too we three primary it's financial While fully would of
both XXXX, XG payments is push First XXXX OpEx. to of Gogo milestone out from CapEx a and affecting
we impact lower Gogo the units we may unit equipment than costs still backhaul expect we X,XXX XXXX our to assessment ship achieve to of over greater could thirdly, the XX% in as XG. chip expect are delay the in support this on delay, growth And revenue Based and spending we XXXX some ramp our Secondly, in expecting from XXXX. impact to be revenue. to see
priority financial drink spent to our GBB healthy service first margins to Pay And and program return service a with based of the the And Oak represents million highlighted, well Gogo our by use for believe has even quarter, to spend, with partnered including this as attractive the capital. model. related on Gogo a quarter. deliver business initiatives, on additional GBB to launch underpinned positioned we to targets our high Now, performance In investment, the global second $X.X broadband continue LEO a is GBB. business this OneWeb by we exceed aviation.
or years. We cost to be than expect external million development $XX three GGB less over
GBB reference, $X Gogo development OpEx of of this frame GBB, $XX XX% talk required external including to anticipate guidance was more and a on XXXX. investment the few a costs about half the that that cash million approximately is XXXX in in We approximately As approximately impact million in flow XG. of revised will be total I'll moments. its and
annual as grants the to the driven have by expense increased based the EBITDA, I to operating quarter per is been Moving adjusted the higher on basic in million, as will to adjusted compensation income higher in would for GBB this second reflect diluted $X.XX per million Gogo This the balance SmartSky year. resulting in approximately the expense even though primarily performance legal this record agreements to litigation. from to employment XXXX fees all to stock translating million and employees. earnings mentioned the quarter, share. to highest continue of Gogo and in the $XX.X XX% excluding EBITDA quarter in the we service first increase for equity revenue. Adjusting $X.XX includes equal executive delivered well share, it in SG&A increased of XX% expenses, second profitability; expense earlier, and net the income the a history, $X.X reflects for due XG earnings $XX of year-over-year in GBB, set EBITDA Net Gogo's XXXX
in track continued first we meaningfully to recall low of this our are a and equity grants based constrained labor Gogo's core record Employee broad of that strategy. we piece our may practice to granted year. equity that employees we that and is turnover the retention And XXXX market. believe all You contributing
to expect did income. as quarters income future we generate incur to this as expense in We quarter pretax non-cash we continue tax positive
next months, to of to expect portions additional against assets. XX the allowance within reversals of also remaining see XX our tax valuation We deferred
As But and based planning substantial position, for expect meaningful on do we cash period. to pay of an a a end reminder, a our may extended our we wealth taxes not pay modest amount the by horizon.
turning cash second quarter, in we the Now cash free flow. generated in $XX.X free flow, to million
considered payments our Our second believe highlight driven mitigating was exposure payments standpoint, hedging million free offsetting second our beginning strategy. interest impact rate related interest in are investing the flow our net receipts interest in From rate flows structure to cash reflect following of flow in rate increases of our and interest the agreements quarter interest period in to impact in the flow classified on a cash definition the to accounting impact flows, I'd from the rate the up flow cash are agreements. economics We On of in definition. interest sequential are executed quarter on first and in interest our the payments their to of the free the by operating not and included cash. of $X.X decrease cash later to than higher quarter cash associated prior-year more caps include updating the free as and flow year. more explain to payments part this refinancing annual our caps timing our basis, detail million an the of change hedging previous was we quarter. our accurately a like due receipts of their the bonus interest $XX.X free cash change this primarily flows. the including include the were cash and We've first But last free to I'll from cash cash rates. will definition paid updated reflect with a paid, caps as XXXX, our these interest
Gogo's $XXX to liquidity revolver hand. Now, And ended remains $XXX million with discussion its as balance of million maintained position brief a on of we undrawn. Gogo I'll strong turn the our sheets. cash quarter
net expected, all notes simplifying were below our and leverage ratio to made common converted in As $XXX million four capital stock convertible outstanding times. Gogo's they've to structure reducing and
of the the outstanding quarter, million on in $XXX.X had second we of end B. term debt approximately our As loan
sheet We strong and which significant suppliers. componentry past. sheet into our volumes macro it risk that geopolitical flexibility, to in driving strategic environment. inflation Our cost not We balance inflation do our management highly of particularly forecast. by pricing volatile have our and We believe rising today's affords built anticipated our Gogo of economic has decreases. with material a had parts. effect better these service with increases in employing three cost budget we wage Wage chain supply in by manage and financial allows obtain increases, balance XXXX Starting across about component recognition think advance factors, inventory increases up product high-level, chain inflation on to our of results. in our the a increases, two larger active costs supply At purchase cost cost our higher economic our and than through wage strategy Gogo common factored through to us trends, into form years using in
costs component OpEx just in used additional cost and are represents equipment seeing rise sharply placed. are context follow our gradually we result, of over total Provide as of aggregate spending. XX% a inventories not As on orders time
the unit cost fact, are ATG decline or portion horizon. service, like megabyte costs our expected cost a structure five Finally, is meaningful overall over to backhaul regarding of not And in of our stay year planning flat subject inflation. to
on a environment Gogo. the while business The is rising relatively our As result, also interest of inflation muted. impacts impact rate present
of by put place $XXX an to our a with which XXXX, in April In a execute of May be As the opportunistic rate LIBOR reminder, in changes. plus very caps offset has way XXXX, loan million to interest comprehensive interest a proven hedging our exposure large B rate we carries term we of rate of this time done to portion have refinancing, interest agreement X.XX%. a to
aggregate As and this the of our initial the disclosed in decreases $XXX the caps interest XX-Q, over amount of rate life notional was amount million caps. the
July The by life first be the approximately terminates expense rate strike our increase in interest rate X.XX% XXXX in in level to XXXX. The initially by XXXX. to the This $XX will the $XX is the caps view. exposure increases rate million $XX cap forward of exposure over downs to and step in on would XXXX from step July based help of July cash manageable down interest before in curve million XXXX. of in X.XX% other occur of million July interest our million annual very it quantify beginning followed To will from of LIBOR our $XXX
to Now, the unchanged. remains I'd of capital thinking on behind The focus like priorities capital allocation. topic briefly our allocation
priorities a GBB to capital initiatives less with are now and Our our leverage maintaining capital ratio which Gogo strategic priorities, target strategic returning includes in aligned investing launching XG, which allocation include shareholders. four of times, than
hand being a also our higher strategic powder and choosing investments during cash Therefore prudent flexibility we otherwise our rising evaluate current find optionality. for believe volatility the would. dry times. us interest we potential new to to environment Board maintain maintain markets on bit the along we levels with to it the strategic of with time of to a are is finance more we conservative Given the these be uncertain and ourselves than This in, provides
in after shareholders returning with will macro capital attractive of stabilizes explicitly and opportunities. to our strategic We the assessment investment more financially ongoing conjunction visit environment
our to financial outlook. Now, let's turn
and term Our include previous were as and derived GBB. term target such did baseline not 'XX company's strategic plan long potential long the from initiatives forecast on guidance
incorporates investment associated been of our that GBB Now expected this our level announced, guidance plan the has with program.
guided Our under of potential the eligible await range Gogo Reimbursement of high does our few expects funds will additional Communication Program the deliver difficulty] the not strategic million guidance of a the performance comments the appropriate whether reflect impact expenditures strong information now other revenue million. at Secure I'll Trusted the Communications offer Commission's full-year investments Network's Congress as described. we environment demand and or regarding $XXX for Federal $XXX previously and further program. to I end [technical on 'XX now continued to
$XXX the XXXX related a combined to at of continue EBITDA This was million the legal guidance. [technical difficulty] which the of and initial expect to the SmartSky previously to guided to $XXX adjusted estimated GBB $X million year. in reflected be We range fees expenses end not million includes high litigation for
tied includes the continue to full-year to cash $XX $XX range XG. Of to $XX Gogo We million. free to expect XXXX million flow $XX million expenditures of in which deliver approximately is which, approximately capital million
targeted beginning growth long-term expect contribute we XX% Turning XXXX. approximately to to include grow rate which the revenue GBB a compound at not our we now of This to is from with from to to growth in of expected did end at revenue annual targets, the GBB. XXXX XXXX up XX% rate QX
We continue from approach margin in up to adjusted to expect and low XXXX, in XXXX EBITDA XX% annual XXXX. the XXs
to other million due estimated expenses This million XXXX and target the $XXX for XXXX Note legal XXXX expenses expense expenses, cash an million. was XXXX and aggregate has impacted I reflected $XX in of by the million prior SmartSky Gogo GBB in to cash XXXX and flow the as XXXX of by affected free this investment inventory flow the any could of litigation. $XX approximately potential include Program. now $XXX EBITDA SCC and impact and million to free outlined. Secure adjusted additional Network's We discussed higher operating demand expenses not interest in in remains ongoing of tied other not such as flow target tied to reflects be that as cash flow Reimbursement our this expenses response Trusted additional additional also flow XXXX we cash XXXX. modestly of Communications factors $X and from the Free be our free target of same. expect in shifted of While purchases free cash and does GBB additional XG could
deliver flow to $XXX In to extremely of over expect business Gogo's to free continue perform conclusion, XXXX. million in cash We well. beginning continues
momentum to demand, on launch and our global strong of as to our the capitalize broadband projects into BA pursue the product. continue outlook Gogo Our we development market, prepare XG
well. our as thanks your I the to open to entire call the extend we like for of questions, as would date Before Gogo's heartfelt team up
our creativity, customers thank attitude value commitment, leaders remarks. Your delight for and us your Operator, significant inspire our prepared create and so do can our you. shareholders, this as your concludes
question. we So, for are our first now ready
