Gogo Q2 2021 Earnings Report
Key Takeaways
Gogo Inc. reported a strong second quarter in 2021, with total revenue of $82.4 million, a 51% increase compared to Q2 2020. The company's record service revenue of $64.8 million increased 47% compared to Q2 2020. Gogo raised its full year 2021 revenue, adjusted EBITDA and free cash flow guidance.
Total revenue of $82.4 million, an increase of 51% compared to Q2 2020.
Record service revenue of $64.8 million increased 47% compared to Q2 2020.
Equipment revenue of $17.6 million increased 66% compared to Q2 2020.
Total ATG aircraft online (“AOL”) reached 6,036, an increase of 12% compared to Q2 2020.
Gogo
Gogo
Forward Guidance
Gogo updated its 2021 financial guidance, expecting total revenue in the range of $325 million to $335 million, Adjusted EBITDA of at least $130 million, capital expenditures in the range of $20 million to $25 million, and free cash flow in the range of $25 million to $35 million.
Positive Outlook
- Total revenue in the range of $325 million to $335 million versus prior guidance of $310 million to $325 million.
- Adjusted EBITDA of at least $130 million, excluding approximately $3 million of separation and migration costs related to the sale of the CA division, versus prior guidance of $115 million to $125 million.
- Capital expenditures in the range of $20 million to $25 million, with the majority tied to Gogo 5G, versus prior guidance of $25 million to $30 million.
- Free cash flow in the range of $25 million to $35 million, including cash interest payments of approximately $71 million, versus prior guidance of $10 million to $20 million.
- Gogo expects to achieve sustainable positive net income beginning in the third quarter of 2021.