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Gogo FY revenue down, Q4 up

February 29, 2024

By Chris Forrester

Business aviation connectivity specialists Gogo reported their full-year and Q4 results, saying that for the final quarter their total revenue of $97.8 million (€90.1m) represented a fall of 10 per cent year on year. However, Q4’s service revenue of $80.9 million was up 5 per cent on the previous year.

“The launches of Gogo Galileo and Gogo 5G later this year will provide order-of-magnitude improvements in the network speeds we deliver to customers and significantly increase our global total addressable market,” said Oakleigh Thorne, Chairman and CEO. “And our LTE replacement program will drive conversion of our Classic product customers to our AVANCE platform, which will provide them with easy upgrade pathways to 5G and Galileo in the future.”

“Gogo’s ability to reiterate its $150 million to $200 million Free Cash Flow target in 2025 and target long-term revenue growth of approximately 15-17 per cent from 2023-2028 is supported by our upcoming product roll outs, Gogo Galileo and Gogo 5G,” added Jessi Betjemann, EVP/CFO. “Gogo’s strategic investments will decline significantly after 2024, allowing for further flexibility for the return of capital to shareholders.”

Gogo’s guidance for 2024 suggests total revenue in the range of $410 million to $425 million. Free Cash Flow in the range of $20 million to $40 million.

Capital expenditures of approximately $45 million including $25 million for strategic initiatives including

Gogo’s long-term financial targets: Revenue growth at a compound annual growth rate of approximately 15-17 percent from 2023 through 2028. The company continues to expect that Gogo Galileo will contribute revenue beginning in 2025.

In Q4 2023, the company repurchased approximately 480,000 shares for a total cost of approximately $4.8 million. In January, the company repurchased approximately 566,000 shares for a total cost of approximately $5.2 million.

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