Gogo Q1 revenues up 6%
May 5, 2023
By Chris Forrester
Business in-flight communications specialist Gogo has reported its Q1 numbers, with total revenue of $98.6 million (€89.4m) – an increase of 6 per cent compared to Q1 2022, fueled by strong growth in service revenue.
Gogo reported record service revenue of $78.5 million which increased 11 per cent compared to Q1 2022 and 1 per cent compared to Q4 2022. Equipment revenue of $20.1 million decreased 9 per cent compared to Q1 2022 and 35 per cent compared to record equipment revenue in Q4 2022.
Gogo’s guidance for the full year’s trading is that total revenues will be in the range of $440-$455 million. Gogo says that its Free Cashflow will be in the range of $80-$90 million. It expects revenue CAGR growth in the period 2022-2027 of about 17 per cent.
Total Air-to-ground (ATG) aircraft online (AOL) reached 7,046 an increase of 8 per cent compared to Q1 2022 and 2 per cent compared to Q4 2022. Total Gogo/AVANCE deployments AOL grew to 3,447, an increase of 28 per cent compared to Q1 2022 and 5 per cent compared to Q4 2022. AVANCE units comprised approximately 49 per cent of total AOL as of March 31st 2023, up from 41 per cent as of March 31st 2022.
Average Monthly Revenue per ATG aircraft online of $3,389 increased 2 per cent compared to Q1 2022 and increased slightly compared to Q4 2022.
“Channel momentum is building for our on-track launches of 5G in Q4 this year and our LEO-based Global Broadband product in the second half of 2024,” commented Oakleigh Thorne, Chairman and CEO. “Business aviation demand for inflight connectivity remains robust and we expect our channel partners to make continued progress in installing our record 2022 equipment shipments.”
“Gogo reiterates its 2023 guidance and anticipates approximately 50 per cent year-over-year growth in Free Cash Flow while incurring $30 million in 5G and GBB investments and other operational initiatives,” added Jessi Betjemann, EVP/CFO. “Our $100 million debt paydown will reduce cash interest by approximately $8.5 million on an annualised basis and we reiterate our target for over $200 million in Free Cash Flow in 2025.”