Gogo FY revenues up 24%
March 7, 2022
By Chris Forrester
In-Flight aircraft broadband connectivity specialist Gogo has reported a rise in revenues of 19 per cent for its fourth-quarter to December 31st 2021. Its full-year numbers were even better at $335.7 million, up 24 per cent y-o-y albeit influenced by a recovery in travel from the Covid-influenced period a year earlier.
Gogo now focuses on business aviation having sold its ‘consumer’ aviation division to Intelsat in September 2020.
Aircraft with Gogo’s technology installed also grew during the year. Total Air-To-Ground (ATG) aircraft online (AOL) reached 6,400, an increase of 11 per cent compared to Q4 2020 and 4 percent compared to Q3 2021.
Total AVANCE (Gogo’s latest technology) units online grew to 2,504, an increase of 46 per cent compared to Q4 2020 and 12 per cent compared to Q3 2021. AVANCE units comprised more than 39 per cent of total AOL as of December 31st 2021, up from 30 per cent as of December 31st 2020 and 36 per cent as of September 30th 2021.
Gogo’s Average Monthly Revenue per ATG aircraft online (ARPU) of $3,301 increased 8 per cent compared to Q4 2020 and 1 per cent compared to Q3 2021.
In Q4 2021, key Gogo flight data metrics increased to levels above those seen before the pandemic. For example:
o Total MB data consumed on our network per day increased 78 per cent from Q4 2019.
o Total MB data consumed on our network per flight increased 38 per cent from Q4 2019.
o Total flights on which our service was provided increased to a record of more than 416,000, an increase of 29 per cent from Q4 2019.
“Demand for connectivity in business aviation, combined with the excellent performance of our AVANCE platform, are driving record sales of equipment and high-margin service plans for Gogo,” said Oakleigh Thorne, Chairman/CEO of Gogo. “We remain on track for commercial deployment of our 5G ATG network in the second half of 2022 which we expect to further accelerate our growth.”
“Record 2021 results and a positive 2022 outlook set the stage for significant Free Cash Flow growth in 2023 following the deployment of Gogo 5G,” said Barry Rowan, Gogo’s EVP/CFO. “Our operating performance and continued de-leveraging create the flexibility for strategic investments to further enhance our growth and return of capital to shareholders over time.”
Gogo is guiding for total revenues for 2022 in the $380 million – $395 million.