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Dec 31, 2020
Gogo Q4 2020 Earnings Report
Gogo's Q4 2020 financial results were announced, with a focus on continuing operations after the sale of the Commercial Aviation division. The company provided 2021 guidance and long-term targets, highlighting revenue growth and adjusted EBITDA margins.
Key Takeaways
Gogo's Q4 2020 total revenue reached $77.6 million, reflecting a 17% sequential improvement. The company reported a net loss of $16.1 million and an adjusted EBITDA of $19.3 million, including a full-year accrual of employee bonus expense. The number of ATG aircraft online grew by nearly 4% sequentially, and average monthly connectivity service revenue per ATG aircraft online increased by more than 2% sequentially.
Total revenue reached $77.6 million, showing a 17% sequential increase.
Net loss stood at $16.1 million, with adjusted EBITDA at $19.3 million, inclusive of employee bonus expenses.
ATG aircraft online increased by almost 4% sequentially, surpassing pre-COVID-19 levels.
Average monthly connectivity service revenue per ATG aircraft online grew by over 2% sequentially.
Forward Guidance
Gogo provided its 2021 financial guidance, expecting total revenue in the range of $300 million to $320 million and adjusted EBITDA in the range of $105 million to $120 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 are projected to be in the range of $25 million to $30 million, primarily tied to Gogo 5G.
Positive Outlook
- Total revenue expected in the range of $300 million to $320 million.
- Adjusted EBITDA projected between $105 million and $120 million.
- Comprehensive refinancing expected to significantly reduce interest expense.
- Capital expenditures primarily tied to Gogo 5G deployment.
- Revenue growth at a compounded annual growth rate of at least 10% from 2020 to 2025.
Challenges Ahead
- Adjusted EBITDA includes approximately $12 million of 5G-related expenses.
- Adjusted EBITDA excludes approximately $4 million of non-recurring separation and migration costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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