Gogo Inc ( (GOGO) ) has released its Q3 earnings. Here is a breakdown of the information Gogo Inc presented to its investors.
Gogo Inc. is a global provider of broadband connectivity services for the business aviation sector, offering a range of smart cabin systems for inflight connectivity, entertainment, and voice solutions. In its recent earnings report, Gogo Inc. revealed a 3% year-over-year increase in total revenue, reaching $100.5 million for the third quarter. The company also reported a net income of $10.6 million, although this marked a significant decline from $20.9 million in the same quarter the previous year. Adjusted EBITDA was $34.8 million, reflecting a 19% decrease compared to Q3 2023.
Key performance metrics indicated a 16% year-over-year growth in total AVANCE aircraft online, and the average monthly revenue per ATG aircraft online hit a record $3,497, marking a 4% increase from the previous year. The quarter also saw strategic wins with the adoption of Gogo’s Galileo HDX by Textron Aviation and Wheels Up. Despite a decrease in net income, Gogo’s operating activities generated $25.1 million in net cash, up from $18.7 million in Q3 2023.
The company’s recent acquisition of Satcom Direct positions it as a unique multi-orbit, multi-band connectivity provider, expected to enhance market penetration in global business aviation and military/government sectors. Gogo’s financial guidance for 2024 anticipates total revenue between $400 million and $410 million, with adjusted EBITDA projected to be between $120 million and $130 million, reflecting increased legal and operational expenses.
Looking ahead, Gogo’s management remains optimistic, highlighting the expected benefits of the Satcom Direct acquisition and ongoing demand for its products. The company expects the acquisition to be immediately accretive and anticipates growth in equipment revenue in 2025 and recurring service revenue in 2026.
