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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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