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Dec 31, 2022
Gogo Q4 2022 Earnings Report
Gogo's Q4 2022 earnings were announced, revealing a record revenue and adjusted EBITDA.
Key Takeaways
Gogo Inc. reported a record fourth quarter with total revenue of $108.2 million, up 17% year-over-year, and a net income from continuing operations of $27.7 million. Adjusted EBITDA reached a record $46.2 million, also up 17% year-over-year.
Total revenue increased by 17% year-over-year to reach $108.2 million, driven by growth in both service and equipment revenue.
Service revenue reached a record $77.3 million, representing a 12% increase compared to Q4 2021.
Equipment revenue also hit a record of $30.8 million, a 34% increase compared to the same quarter last year.
Adjusted EBITDA increased 17% year-over-year to a record $46.2 million.
Gogo
Gogo
Forward Guidance
Gogo provided financial guidance for 2023, including total revenue in the range of $440 million to $455 million, Adjusted EBITDA of $150 million to $160 million, and Free Cash Flow of $80 million to $90 million. They also provided long-term financial targets, including revenue growth at a compound annual growth rate of approximately 17% from 2022 through 2027.
Positive Outlook
- Total revenue in the range of $440 million to $455 million.
- Adjusted EBITDA of $150 million to $160 million.
- Free Cash Flow of $80 million to $90 million.
- Revenue growth at a compound annual growth rate of approximately 17% from 2022 through 2027.
- Annual Adjusted EBITDA Margin in the mid-40% range by 2027.
Challenges Ahead
- Adjusted EBITDA reflects operating expenses of approximately $30 million for strategic and operational initiatives including Gogo 5G and Global Broadband.
- Free Cash Flow includes capital expenditures of approximately $30 million to $40 million, of which $20 million is tied to Gogo 5G.
- The 2023 financial guidance and long-term targets do not reflect the impact of the Federal Communications Commission’s Secure and Trusted Communications Networks Reimbursement Program.
- Global supply chain constraints in 2022.
- Uncertainties and other factors could materially affect financial condition or future results of operations.