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Gogo Q2 revenue up 6%

August 9, 2023

By Chris Forrester

In-flight connectivity specialists Gogo has reported Q2 revenue growth of 6 per cent at $103.2 million (€94m). The business airline-focussed company expects total revenues this year to be in the range of $410 million-$420 million.

“We are in a two-year investment cycle to take advantage of new technologies like 5G, LEO satellite and LTE to deliver order-of-magnitude improvements in network speed and coverage for our customers, grow our addressable market by 50 per cent, and strengthen our competitive position,” said Oakleigh Thorne, Chairman and CEO. “We expect to see the payback for these investments to start in 2025 and drive substantial returns for shareholders in the latter half of the decade.”

“Gogo’s long-term targets of approximately 15-17 percent revenue growth and $150 million to $200 million of Free Cash Flow in 2025 underscore our strong outlook for new products, Gogo 5G and Gogo Galileo, in an underpenetrated global market,” said Jessi Betjemann, EVP and CFO. “We expect to continue to strengthen our balance sheet while investing in our key growth initiatives.”

Gogo is serving 7,064 business aircraft (up 6 percent y-o-y) with its classic ‘Air To Ground’ equipment. But this kit is being replaced with Gogo’s Avance equipment. It shipped 277 Avance units in Q2 (up 23 percent on Q1/2023) and reports that 3,598 aircraft are now equipped with Avance and this represents 51 per cent of its total aircraft online, up from 43 per cent in Q2/2022.

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