Gogo reports record Q3
November 8, 2023
By Chris Forrester
Gogo, which focuses on delivering broadband connectivity to business aviation clients, has reported its nine month and Q3 financials. Overall nine month revenues were down 7 per cent year-on-year but Q3 saw a record revenue, up 6 per cent year-on-year of $79.5 million (€74,5m), and 1 per cent up on Q2.
Gogo stated that it was now supplying 7,150 aircraft, up 6 per cent compared to the same period last year.
The number of aircraft using its Avance system grew to 3,784, up 23 per cent on the same period in 2022. Avance units comprised approximately 53 per cent of total aircraft online as of September 30th 2023, up from 45 per cent as of September 30th 2022.
Net income of $20.9 million increased 4 per cent from $20.2 million in Q3 2022. Free Cash Flow was $21 million in Q3 2023, an increase from $8.5 million in the prior-year period due primarily to a reduction in capital expenditures.
Cash, cash equivalents and short-term investments totalled $110.8 million as of September 30th 2023 compared to $97.2 million as of June 30th 2023.
“We are in a two-year investment cycle launching Gogo 5G and Galileo (our global LEO satellite product) to deliver order-of-magnitude improvements in network speed and coverage, grow our addressable market, and strengthen our competitive position,” said Oakleigh Thorne, Chairman and CEO. “We expect these investments to drive significant growth starting in 2025 and to drive substantial returns for shareholders.”
“Despite near-term revenue headwinds, Gogo maintains our long-term targets of approximately 15-17 per cent revenue growth from 2022-2027 and $150 million to $200 million of Free Cash Flow in 2025. Our guidance is underpinned by our strong outlook for our planned Gogo 5G and Gogo Galileo product launches, 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’s guidance for this year has been modified slightly. “Total revenue in the range of $390 million to $400 million, versus prior guidance in the range of $410 million to $420 million, driven predominantly by lower equipment revenue,” stated the company.