finish remarks priorities Thanks Oakleigh capital by and up today, Then some and finally, third record good My through around I'll our with financial start quarter morning, touch everyone. additional performance. allocation walking Gogo's I'll Gogo's on I'll context guidance.
our record $XXX.X For million, grew the revenue third year-over-year. quarter, of XX.X% total
sequentially. driven by $XX.X service was of ATG record grew line XX% million as top online Our revenue units year-over-year and X%
As capabilities in of Oak its the line of events both market increasing and strategy we penetration leveraging American mentioned, launch today GBB centerpiece as the operate we a globally our top our product where remains in and North future.
sequentially. online third grew year-over-year units XXX up by The of X% units, and AVANCE XX% quarter
their received by ATG in expand our introduction As will including very continue have ARPA GBB we to time. Gogo grew customers followed units plans, as our online, to grew our The since launch been our XG growth rate ARPU product, year-over-year ATG over of opportunity well which X.X% further XXXX. plans, upgrade high X,XXX their our data to early
in the the in record revenue XX% turning a a Gogo Now a XXX to we quarterly XX% revenue. an increase achieved we this of the second quarter, record equipment record to million third delivered just AVANCE year-over-year of and equipment year-over-year previous units. $XX.X increase is year. as quarter This compared XX% shipped in
to a to in balance now and than X,XXX XX% acquire ship representing at sheet XXXX. team excellent total We demand capitalize is allowing AVANCE Our our Gogo to units strong products. inventory XXXX, supply least compared to increase for more unprecedented ability on chain leverage to our expect
XXXX to decreased year-over-year, network. in Federal touch primarily the X% range revenue in our an Service of our longer-term associated year regulatory reported and of event sequentially XX% life XXXX in for due combined in XX.X% decrease de-risk increase backlog average raise a to were year again equipment costs in network delivered which in margins XX% with Equipment was to an the I’ll to a the the our with strong long-term. Service both Gogo quarter. our The service exceptionally service for The margin due million to which equipment XXXX. expectations QX penetration. our and to surcharges increase up on allowed impact ATG for Our expected XG of within remarks. Gogo target planned Universal is due guidance, This of the – margins our part initiative catch represents has decrease us targets. as shipments quarter, my $X year-over-year, the XX drive shipment credit third strategic of Fund X% margins third higher XX% materially equipment the once for XXXX later deployment
due However, which than improvement was and also actually our of our equipment of satellite margins by margins amount. satellite higher to The a AVANCE increased revenue. lower legacy carry higher increased driven of production XX% X% XX% with by from costs to sales a percentage corresponding revenue declining percentage This sequentially mix legacy products. products sequentially sales, as higher a AVANCE
now operating Moving to expenses.
up third Non-cash year-over-year impacted employee in engineering development compensation marketing last legal expenses development $XX.X quarter patent vesting compensation and G&A retirements, litigation by expense relating due for the reflects XX% sales to incurred year-over-year in expenses to expense. and combined expenses million. GBB, SmartSky stock-based G&A. and design expense primarily stock-based the quarter a This increase decrease the year offset which decreased partially for Third related and catch to increased to
XXXX. succession of compared stock-based agreements will in put as of to expense XXXX contribute continue a and reminder, in the executive increased As to compensation levels part employment XXXX to planning as place our
XG. employees as the spending investment Gogo expenses all lower due reduction higher ramp in to were the stock-based slightly our delay. to meaningfully for the retention compensation and in to beginning always in viewed expense. has this equity than quarter employee contributed due an initially expected expenses results to We’ve planned, granting XXXX began year also This also XG We actually Operating chip to related and XXXX.
However, incurred shift to XXXX. that as fourth in expected spending now previously be expenses operating as the to quarter will XG well
addition, and in In quarter, through invest in we up the initiative for XXXX. continue ramp development this will to our GBB
XG on profiles. initiatives respective provide and some detail and Gogo I’ll our spending the additional Now, GBB
when to impacts our availability which CapEx. the do to quarter on clear XG impact XG want negative very – have jumping delay Gogo We to the spend timing Before any the overall budget. details of expect be XG of of only third on spending our the of it XG spending, $XX.X that have OpEx in the occurs. comprised program cost, and into XG million not in I chipset $XX.X is In remains million million in $X.X approximately our our
into We CapEx three expectations primary a of to delay chip million approximately XXXX, the our The due in of expect prior financial buckets. reduction falls from delay. impact $XX XG chipset a
a XG costs XXXX. First, milestone push to of from payments, and testing XXXX out certification
Second, haul revised delay to is $X in These $X haul is year. XXXX revenue approximately that fourth million and lower expected guidance. spending million XXXX. an impacted spending launch XXXX is EBITDA, back of million And our XG free CapEx in are in expectations lower cash comprised this that along XG. CapEx, expense our $X the costs in our haul in savings. and with reduction approximately back the XXXX million reductions postponed Note operating to of costs adjusted $X thirdly, The by the expense XXXX, from back which commercial is support flow reflected shift of savings quarter actual XXXX represent in XXXX in Gogo given XG will be now
GBB our onto Now initiative.
to will attractive for including is excited it return by a on are well service We create positioned Gogo healthy deliver as margins. opportunity investment, GBB the
milestones based the variable In operating development by drink antenna our Importantly, it also to related agreement business third recorded our $X.X with partnership the quarter, partner. a model cost Gogo in with is Hughes, GBB on achievement the as prescribed in of paid million project expenses OneWeb.
the XXXX less We continue to be years be $X incurred development in to remaining three $XX million to in XXXX with $XX for ramping than to approximately million $XX spend XXXX. expect million costs in from with GBB million external approximately over
in anticipate that will flow XXXX costs adjusted also and XXXX profile development of EBITDA our XX% in free our reflected guidance and We This guidance. GBB XXXX spending free in cash combined cash approximately external flow and is be OpEx.
quarter adjusted driven Now history. income that our primarily equipment $XXX,XXX income moving net the tax $XX.X an is million of to the sales. continuing performance in up provision I income of net profitability. in on record quarter XXXX is net to increased note EBITDA operations highest million X% $X $XX.X income compared would adjusted the X.X% Gogo’s XXXX. million, year-over-year to Gogo’s by year-over-year. This QX in tax EBITDA provision QX delivered third from third Gogo
expense continue as Our we financial non-cash statements income. reflect generate to income positive tax pre-tax
we have of XX% tax profit our we and assumption would rates taxes fluctuations Net income to using before that income strategy. our as state combined increased Gogo from the believe effective While generating current XX% reflecting model on capability at federal rate the may we purposes. income business year-over-year execute reasonable the rate, in modeling continue tax a be
to second XXXX we quarter quarter share. pay of NOL do XXXX. position, income per modest a net cash share end occurred basic taxes These settlement we expect which amount an extended on period, our of and for planning $X.XX our not XXXX Third but substantial of notes, diluted the in pay by Based in the convertible the earnings final to earnings reflect meaningful in may horizon. our per figures $X.XX translates
down XX We of of see deferred next year-over-year portions free XX assets allowance by quarter, for the In XX% the $X.X third the against months. the in CapEx expected increase XG. we tax cash Gogo additional continue valuation to generated million flow driven to expect to remaining reversals in over our
revolver. yet Gogo position our its of to balance with entered million $XXX our as liquidity turn the maintained strong we quarter draw of have I’ll to and we million Now, discussion cash $XXX on a sheet. on brief hand
June XX, XXXX, in million share reflecting as executed of repurchase Our cash from September. balance decreased $XXX the
had a shares share. we transaction repurchased stock we $XX.XX owned the BlackRock At by million of in our this than of ratio private approximately in target quarter, third debt debt the net X.Xx of a at B achieved which on $XXX million of common we year. a term and million in that of of our loan per quarter the less $XX.X of recall outstanding affiliates leverage price below for X.X You’ll second Xx, end
Now allocation on strategy. our I’ll touch capital
priorities to Our are rate service second our priorities debt, goals. in returning and include of capital finally capital meaningfully seven X.XX%, of Gogo The variable exposure we less term strategic of which interest which carrying ratio XXXX, limits service, strategic XG comprehensive allocation LIBOR a maintaining B, to of leverage than in Xx, risk. plus These GBB, refinancing a shareholders. completed refinancing the down our our investing including quarter commercial loan launching in may year includes initiatives include paying
contract market We rate since value are increased our May the interest with to of fair caps XXXX also by refinancing. heels taxes rate before significant of hedge putting hedged Of interest it $XX well on place the changes. offsetting portion our comprehensive in exposure of note, our million a has of in
from million $XX $XX the in in with XXXX our will LIBOR expense to curve increase on interest in interest $XX our subject we million have would our caps mid annual interest to To place, rate cash in based in XXXX, outlined quantify forward exposure reduces portion that our XXXX. As higher XX-Q, of and loans increase term the by interest rates. beginning rate live caps exposure to which million the approximately October
at during markets prudent particularly volatility the rising times. current believe to we rate more interest the these uncertain and Given the somewhat is take it conservative financing a approach environment,
given higher we of to circumstances. As choosing levels external we last on hand are quarter, maintain mentioned cash these
us reserves Our benefit third of the strategic allow to reserve maximum financial this quarter. saw flexibility We in flexibility. higher cash and the having
indicative stock As $XX.XX shares share was we This Gogo X.X of value repurchased common of of our value mentioned, ahead. at see share. a creation the per confidence in million repurchase long-term opportunity previously
financial our turn Now outlook. let’s updated to
of reflect the Secure guidance impact Communications our Program. Commission’s Communications reminder, not a Trusted the As Networks does and Reimbursement Federal
for the As high shipments Gogo appropriate of million exceptionally primarily We as we eligible driven million year. in await increase regarding top versus our information will range we’ve at program. year the now described. million. guidance equipment line the to $XXX This $XXX Congress guidance once of end of out expect funds to the $XXX further by raised whether XXXX again our revenue to additional for deliver full prior million range $XXX strong the of expenditures was
We also the adjusted SmartSky increase in operating in of $X expenses of the guidance. $XXX and raised $XXX related commercial to range but Global the original expenses associated which litigation with $XXX combined EBITDA XXXX the XXXX not includes launch the also at of XG, to our of to Gogo to it delay in Broadband, range a million versus million were reduction guidance $X million. included in our reflects end million $XXX prior This high million outlook a million
million due free range raising versus reduction to $XX to to We spending. flow million million of are cash prior to guidance primarily guidance $XX XXXX of $XX million, our $XX million XG in $XX a
which cash approximately million XG. project. $XX GBB $XX with compares external $X It This million capital Gogo of CapEx $XX guidance XXXX million prior an Our XG. to includes free spend to to tied guidance tied $XX also expenditures our approximately of million in million is to related flow reflects Gogo of expected
the call for impacted XXXX XXXX the cash earnings $XXX August. will will cash by FCC XXXX program. provided free on be the be flow range for Gogo and reimbursement in our potentially flow to million equivalent among QX of Free are which expected million, other and $XXX things, by to We combined delay aggregate roughly XG
our that into further year ramp the spending reflect future, Gogo, $XX in approximately mentioned. flow of for as XXXX I will Looking our cash GBB free project million
in on side long to XXXX beginning and offering. of rate other We the our free our expect of to by Gogo as cash over XG, GBB investments with we product million continue get our growth $XXX flow generate GBB in term elevated
XXXX other We with unchanged. to XXXX through rate revenue expect reiterate XX% annual expected revenue to of from grow compound remain that we XXXX. in beginning Our growth to targets contribute GBB a approximately with long-term
We approach behind and long-term EBITDA over provide XXXX. typically continue earnings transform also in XXXX margin growth the the from expect is margin business of conclusion, continues in in annual XXXX our and of to sale the well. since We CA assumption to do. is updated quarter and perform plan on our XX% In adjusted as time. guidance a EBITDA XXXX to operating XXs business Gogo’s leverage Gogo’s Strong XXXX driving hallmark we business to call fourth in extremely up adjusted low model the
Gogo position and customers. reflects Our of providing for as that of prepared also are our commercial would for their the entire such you and because now raised Oak in team prepare XG Gogo ready to product. I development our of our a first our join momentum service remarks, and Global we to Broadband our pursue in strong we’re we strong It’s for the this today. competitive unparallel like thanking launch commitment continued question. to for our Operator, concludes outlook
