Gogo Q3 2024 Earnings Report
Key Takeaways
Gogo Inc. reported a 3% year-over-year increase in total revenue, reaching $100.5 million for Q3 2024. Service revenue also grew by 3% to $81.9 million. Net income decreased by 49% to $10.6 million, and Adjusted EBITDA decreased by 19% to $34.8 million. The company updated its 2024 guidance and highlighted strategic wins with Textron Aviation and Wheels Up.
Total revenue increased by 3% year-over-year to $100.5 million.
Service revenue increased by 3% year-over-year to $81.9 million.
Net income decreased by 49% year-over-year to $10.6 million.
Adjusted EBITDA decreased by 19% year-over-year to $34.8 million.
Gogo
Gogo
Forward Guidance
Gogo anticipates total revenue between $400 million and $410 million. Adjusted EBITDA is projected to be in the range of $120 million to $130 million. Free Cash Flow is expected to be between $55 million and $65 million, inclusive of $35 million from the FCC Reimbursement Program.
Positive Outlook
- Total revenue expected to be in the range of $400 million to $410 million.
- Adjusted EBITDA expected to be in the range of $120 million to $130 million.
- Free Cash Flow expected to be in the range of $55 million to $65 million, including $35 million from the FCC Reimbursement Program.
- Capital expenditures are projected to be approximately $30 million.
- Satcom Direct acquisition expected to be accretive day one.
Challenges Ahead
- Guidance excludes the impact of the closing of the Satcom Direct transaction.
- Multi-year long-term financial targets previously provided on August 7, 2024, have been withdrawn.
- Adjusted EBITDA guidance reflects increased legal expenses from ongoing legal proceedings.
- Adjusted EBITDA guidance includes approximately $20 million of operating expenses for strategic and operational initiatives including Gogo 5G and Gogo Galileo.
- Company expects to reach its net leverage target of 2.5x-3.5x within 1-2 years after closing.