Gogo’s record results
August 8, 2022
By Chris Forrester
Gogo supplies in-flight broadband connectivity to business aircraft and reported “record results” on August 5th. Helped by a recovery following on from the impact of Covid on aircraft demand, Gogo says it enjoyed revenue of $97.8 million (€96.4m), up 19 per cent y-o-y with Net Income of $22.0 million in the period to June 30th.
Gogo says, that compared to Q1 2022, its AVANCE units online grew to 2,893, an increase of 40 per cent compared to Q2 2021 and 7 per cent compared to Q1 2022. AVANCE units comprised more than 43 per cent of total Aircraft Online as of June 30, 2022, up from 34 per cent as of June 30, 2021.
Gogo’s total aircraft online reached 6,654, an increase of 10 per cent compared to Q2 2021 and 2 per cent compared to Q1 2022.
Its Average Monthly Revenue per ATG aircraft online of $3,328 increased 1 per cent compared to Q2 2021 and was flat versus Q1 2022.
“Customer excitement is growing as we prepare for the launch of Gogo 5G, which will provide a 5-10x bandwidth improvement for current Gogo customers,” said Oakleigh Thorne, Chairman and CEO. “With the announcement of our Global Broadband initiative, we continue to leverage our AVANCE platform to provide an easy upgrade path for aircraft of all sizes to further boost performance and expand our addressable market.”
“The strength of the business aviation market combined with solid execution drove record performance in the quarter, positioning us well for continuing revenue and Free Cash Flow growth,” said Barry Rowan, Gogo’s EVP/CFO. “Based on our continuing strong performance we are raising several key elements of our guidance, including 2022 revenue; 2022 Adjusted EBITDA at the high end of our range in spite of $9 million in strategic investments and litigation expenses; and our long-term revenue growth rate, based on the contribution from our Global Broadband initiative.”
Gogo’s revenue guidance for its full year is in the range of $390 million to $400 million.