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Dec 31, 2024
Gogo Q4 2024 Earnings Report
Gogo reported a significant revenue increase but a net loss in Q4 2024.
Key Takeaways
Gogo's Q4 2024 revenue surged 41% YoY to $137.8 million, driven by the Satcom Direct acquisition. However, the company posted a net loss of $28.2 million, mainly due to acquisition-related costs. Adjusted EBITDA was $34.0 million, down 3% YoY. The service segment grew 47% YoY, while equipment revenue increased 12%.
Total revenue grew 41% YoY to $137.8 million, fueled by the Satcom Direct acquisition.
Net loss was $28.2 million, impacted by $46.8 million in acquisition-related expenses.
Adjusted EBITDA declined 3% YoY to $34.0 million.
Service revenue increased 47% YoY to $118.8 million.
Gogo
Gogo
Gogo Revenue by Segment
Revenue by Segment
Business Aviation Revenue
CapyFin.com Forward Guidance
Gogo expects strong revenue growth in 2025 driven by Satcom Direct integration and international expansion, with total revenue projected to reach $870M-$910M.
Positive Outlook
- Projected revenue growth of up to 10% in 2025.
- Satcom Direct acquisition expected to yield $30M in synergies.
- FAA approval for Galileo HDX antenna supports expansion.
- Strategic partnerships with Airbus Corporate Jets and Luxaviation Group.
- Growth in high-margin service revenue expected to continue.
Challenges Ahead
- Free cash flow expected to remain negative in early 2025 due to integration costs.
- High debt burden following Satcom Direct acquisition.
- Macroeconomic uncertainty may impact aviation sector growth.
- Lower equipment sales in Q1 2025 due to seasonality.
- Competition in the connectivity space could pressure pricing.