NASDAQ$GOGO
Gogo Inc · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Announced second quarter results with total revenue down 1% year-over-year but record service revenue up 4% year-over-year.
Gogo Inc. reported a slight decrease in total revenue, but an increase in service revenue. Net income decreased significantly due to an unrealized loss related to a convertible note investment and a prior-year tax benefit. The company updated its 2024 guidance and long-term financial targets, including revenue, Adjusted EBITDA, and Free Cash Flow.
- Total revenue of $102.1 million decreased slightly compared to Q2 2023.
- Record service revenue of $81.9 million increased 4% compared to Q2 2023.
- Net income of $0.8 million decreased 99% from $89.8 million in Q2 2023.
- Free Cash Flow of $24.9 million increased from $13.3 million in the prior-year period.
Headline financials
Revenue & EPS history
Gogo · Revenue · Quarterly
$102M
Revenue by segment
Gogo · $72M total across 1 segment · Q3 2021
- Business Aviation$72M—100.0%
Forward guidance
The company updated its 2024 guidance and long-term financial targets. Total revenue is expected to be in the range of $400 million to $410 million. Free Cash Flow is expected to be in the range of $35 million to $55 million, which includes $40 million in reimbursements tied to the FCC Reimbursement Program.
Tailwinds
- Adjusted EBITDA at the high end of the range of $110 million to $125 million.
- Free Cash Flow in the range of $35 million to $55 million.
- Capital expenditures of approximately $35 million.
- Reiterate revenue growth at a compound annual growth rate of approximately 15%-17% from 2023 through 2028.
- Reiterate Annual Adjusted EBITDA Margin reaching 40% in 2028.
Headwinds
- Total revenue in the range of $400 million to $410 million versus prior guidance of $410 million to $425 million.
- Adjusted EBITDA reflects increased legal expenses and approximately $26 million of operating expenses for strategic and operational initiatives including Gogo 5G and Gogo Galileo.
- Capital expenditures include $20 million for strategic initiatives including Gogo 5G, Gogo Galileo and the LTE network build, versus prior guidance of $45 million which included $30 million for strategic initiatives.
- Free Cash Flow targeting approximately $150 million in 2025, versus prior target of $150 million to $200 million, without the effect of the FCC Reimbursement Program.
- Ongoing delay and the risk of future delays in deploying 5G, and our ability to develop and deploy Gogo 5G, Gogo Galileo or other next generation technologies
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2024
+3.0%
Avg return
Earnings day
+5.6%
Avg return
5 days after
+11.5%
Avg return
30 days after
50%
25 / 50 earnings
Positive
+45.4%
Q1 2025
Best reaction
-18.0%
Q1 2018
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +8.4% | -2.6% | -12.1% | |
| Q4 2025 | -3.4% | +20.5% | -0.9% | |
| Q3 2025 | -12.8% | -15.5% | -19.4% | |
| Q1 2025 | +45.4% | +61.0% | +46.8% | |
| Q4 2024 | -0.1% | +12.1% | +3.1% | |
| Q3 2024 | +22.4% | +22.3% | +12.7% | |
| Q2 2024 | -3.7% | -8.5% | -0.9% | |
| Q1 2024 | +3.8% | +8.4% | +10.4% | |
| Q4 2023 | -6.7% | -3.9% | +0.3% | |
| Q3 2023 | -3.2% | -5.1% | -3.8% | |
| Q2 2023 | -17.1% | -16.4% | -20.4% | |
| Q1 2023 | -4.8% | -6.7% | +19.5% | |
| Q4 2022 | +12.0% | +14.9% | -2.4% | |
| Q3 2022 | +0.4% | +1.4% | +7.3% | |
| Q2 2022 | -13.1% | -8.6% | -23.3% | |
| Q1 2022 | -4.3% | -3.9% | +6.1% | |
| Q4 2021 | +20.0% | +17.1% | +39.1% | |
| Q3 2021 | -6.3% | -7.1% | -23.4% | |
| Q2 2021 | +15.5% | +26.2% | +30.4% | |
| Q1 2021 | +13.0% | +17.5% | +45.0% | |
| Q4 2020 | -10.7% | -13.7% | -14.9% | |
| Q3 2020 | +5.8% | +19.5% | +28.8% | |
| Q2 2020 | +3.5% | +6.6% | +191.4% | |
| Q1 2020 | +25.7% | +30.7% | +114.3% | |
| Q4 2019 | -6.7% | +8.3% | +8.5% | |
| Q3 2019 | +3.2% | +1.3% | -10.2% | |
| Q2 2019 | +19.9% | +21.8% | +23.8% | |
| Q1 2019 | +5.6% | +6.8% | -9.5% | |
| Q4 2018 | -1.6% | +0.7% | +9.9% | |
| Q3 2018 | +19.5% | +6.7% | -33.0% | |
| Q2 2018 | +10.4% | +13.8% | +11.7% | |
| Q1 2018 | -18.0% | -44.5% | -48.0% | |
| Q4 2017 | -15.5% | -9.2% | -15.9% | |
| Q3 2017 | -11.9% | -8.3% | +13.1% | |
| Q2 2017 | -4.3% | -4.3% | +9.8% | |
| Q1 2017 | +7.1% | +7.1% | -4.2% | |
| Q4 2016 | +16.2% | +17.2% | +19.0% | |
| Q3 2016 | -1.6% | +0.0% | -4.9% | |
| Q2 2016 | +22.1% | +34.4% | +46.0% | |
| Q1 2016 | -5.9% | — | — | |
| Q4 2015 | +1.0% | — | — | |
| Q2 2015 | -8.8% | — | — | |
| Q1 2015 | -4.4% | — | — | |
| Q4 2014 | +2.8% | — | — | |
| Q3 2014 | +9.3% | — | — | |
| Q2 2014 | -9.1% | — | — | |
| Q1 2014 | +7.6% | — | — | |
| Q4 2013 | -8.5% | — | — | |
| Q3 2013 | +32.9% | — | — | |
| Q2 2013 | -1.9% | — | — | |
| Q1 2013 | — | — | — | |
| Q4 2012 | — | — | — | |
| Q3 2012 | — | — | — | |
| Q2 2012 | — | — | — | |
| Q1 2012 | — | — | — | |
| Q4 2011 | — | — | — | |
| Q3 2011 | — | — | — | |
| Q2 2011 | — | — | — | |
| Q1 2011 | — | — | — | |
| Q4 2010 | — | — | — |
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