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Mar 31, 2021

Gogo Q1 2021 Earnings Report

Gogo's revenue and Adjusted EBITDA increased, driven by growth in aircraft online and service revenue, along with the successful completion of a comprehensive refinancing.

Key Takeaways

Gogo Inc. reported a 4% year-over-year increase in total revenue, reaching $73.9 million for the quarter ended March 31, 2021. The company's net loss from continuing operations was $5.9 million, improved from $9.4 million in Q1 2020. Adjusted EBITDA increased by 25% to $33.9 million. The company also raised its 2021 revenue and Adjusted EBITDA guidance and provided free cash flow targets.

Total revenue increased 4% year-over-year to $73.9 million.

Net loss from continuing operations improved to $5.9 million compared to $9.4 million in Q1 2020.

Adjusted EBITDA increased 25% year-over-year to $33.9 million.

Total ATG aircraft online grew 3% year-over-year to 5,892.

Total Revenue
$73.9M
Previous year: $184M
-60.0%
EPS
-$0.07
Previous year: -$0.47
-85.1%
Gross Profit
$51.5M
Cash and Equivalents
$455M
Previous year: $214M
+112.5%
Total Assets
$688M

Gogo

Gogo

Forward Guidance

Gogo updated its 2021 financial guidance, projecting total revenue in the range of $310 million to $325 million and Adjusted EBITDA in the range of $115 million to $125 million. The company also provided a long-term free cash flow target of approximately $100 million for the full-year 2023.

Positive Outlook

  • Total revenue in the range of $310 million to $325 million
  • Adjusted EBITDA in the range of $115 million to $125 million, including approximately $12 million of 5G-related expenses and excluding approximately $4 million of non-recurring separation and migration costs related to the sale of the CA division
  • Capital expenditures in the range of $25 million to $30 million, with the majority tied to Gogo 5G
  • Free cash flow in the range of $10 million to $20 million, including cash interest payments of approximately $71 million
  • Long-term free cash flow target of approximately $100 million for the full-year 2023