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Mar 31, 2024
Gogo Q1 2024 Earnings Report
Gogo's first quarter performance in 2024 showed revenue growth and increased profitability.
Key Takeaways
Gogo Inc. reported a 6% year-over-year increase in total revenue, reaching $104.3 million, with service revenue up 4% to a record $81.7 million. Net income increased by 49% to $30.5 million. The company updated its 2024 Adjusted EBITDA guidance to the high end of the previously guided range.
Total revenue increased by 6% year-over-year to $104.3 million.
Record service revenue grew by 4% year-over-year to $81.7 million.
Net income increased 49% year-over-year to $30.5 million.
Adjusted EBITDA increased 9% year-over-year to $43.3 million.
Gogo
Gogo
Gogo Revenue by Segment
Revenue by Segment
Business Aviation Revenue
CapyFin.com Forward Guidance
Gogo updated its 2024 financial guidance, expecting total revenue between $410 million and $425 million and Adjusted EBITDA at the high end of the previously guided range of $110 million to $125 million. Long-term financial targets were reiterated, including revenue growth at a CAGR of approximately 15%-17% from 2023 through 2028 and an annual Adjusted EBITDA Margin reaching 40% in 2028.
Positive Outlook
- Total revenue in the range of $410 million to $425 million.
- Adjusted EBITDA at the high end of the previously guided range of $110 million to $125 million.
- Free Cash Flow in the range of $20 million to $40 million, including $45 million in FCC Reimbursement Program reimbursements.
- Capital expenditures of approximately $45 million including $30 million for strategic initiatives.
- Revenue growth at a compound annual growth rate of approximately 15%-17% from 2023 through 2028.
Challenges Ahead
- Guidance includes the impact of the Federal Communications Commission's Secure and Trusted Communications Networks Reimbursement Program.
- Guidance does not reflect a potential delay in Gogo 5G beyond 2024.
- Adjusted EBITDA reflects operating expenses of approximately $33 million for strategic and operational initiatives including Gogo 5G and Gogo Galileo.
- Adjusted EBITDA reflects $5 million in legal expenses tied to the SmartSky litigation.
- Free Cash Flow includes $45 million in reimbursements tied to the FCC Reimbursement Program.