Gogo raises 2023 guidance
March 1, 2023
By Chris Forrester
Business aviation in-flight broadband company Gogo has reported record Q4 and 2022 results, and raised its guidance for 2023’s business prospects. For 2023 trading Gogo says its total revenues will be in the $440 million (€412.7m) – $455 million range. Gogo now serves 6,935 business aircraft.
It reported record Q4 revenue of $108.2 million, up 17 per cent y-o-y and Net Income from continuing operations of $27.7 million; and Record adjusted EBITDA of $46.2 million, up 17 per cent y-o-y. The Q4 numbers helped the overall full-year picture of a record $404.1 million, up 20 per cent y-o-y. Net income from continuing operations of $92.1 million and adjusted EBITDA of $173.8 million.
Gogo reported strong growth in both service and equipment revenues.
Drilling down into the two segments, it achieved record service revenues during Q4 of $77.3 million which increased 12 per cent compared to Q4/2021 and 3 percent compared to Q3 2022. On the equipment side of the business, it achieved record equipment revenue of $30.8 million, an increase of 34 per cent compared to Q4 2021 and 2 per cent compared to Q3 2022.
Its ‘in-flight’ AVANCE equipment saw a record 390 units delivered, an increase of 36 per cent compared to Q4 2021 and a slight increase compared to the previous quarterly record set in Q3 2022.
Total ATG aircraft online (AOL) reached 6,935 an increase of 8 per cent compared to Q4 2021 and 2 per cent compared to Q3 2022. Total AVANCE units online grew to 3,279, an increase of 31 per cent compared to Q4 2021 and 6 per cent compared to Q3 2022. AVANCE units now comprised more than 47 per cent of total AOL as of December 31st 2022, up from 39 per cent as of December 31st 2021.
Average monthly revenue per ATG aircraft online of $3,370 increased 2 per cent compared to Q4 2021 and decreased slightly compared to Q3 2022.
For the full year Gogo achieved record total revenues of $404.1 million, an increase of 20 per cent compared to 2021.
“Our equipment revenue surged, which bodes well for future service revenue, as Gogo met extraordinary demand for inflight connectivity and delivered a 50 per cent increase in equipment shipments despite global supply chain constraints in 2022,” said Oakleigh Thorne, Chairman/CEO. “We’re also on track to commercially launch our 5G service in Q4 this year, and our LEO-based Global Broadband product in the second half of 2024.”
“Our strong financial results underpin our confidence in our financial targets,” added Barry Rowan, EVP/CFO. “We have extended our long-term revenue growth target of 17 per cent from 2022 through 2027 and reiterate our target for over $200 million in Free Cash Flow beginning in 2025.”