NASDAQ$GOGO

Gogo Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Gogo's revenue increased driven by growth in service and equipment revenue, with net income rising slightly and adjusted EBITDA showing a moderate increase.

Gogo Inc. reported record third-quarter revenue of $105.3 million, a 21% increase year-over-year, driven by strong growth in both service and equipment revenue. Net income from continuing operations increased to $20.2 million, and adjusted EBITDA rose by 7% to $43.7 million.

  • Record total revenue reached $105.3 million, up 21% year-over-year.
  • Service revenue hit a record of $75.3 million, a 14% increase year-over-year.
  • Equipment revenue also reached a record of $30.1 million, a 43% increase year-over-year.
  • Adjusted EBITDA reached a record of $43.7 million, up 7% year-over-year.

Headline financials

Total Revenue

$105M

Previous: $87.2M+20.8%
EPS (adj)

$0.15

Previous: $0.16-6.3%
Capital Expenditures

-$35.2M

Previous: -$2.83M-1142.0%
Free Cash Flow

-$15M

Previous: $8.13M-284.7%
Net Income

$20.2M

Previous: $11M+84.1%
Operating Income

$36.3M

Previous: $30.9M+17.6%
Gross Profit

-$855K

Previous: -$55K-1454.5%
Cash & Equivalents

$152M

Previous: $133M+14.2%
Total Assets

$729M

Previous: $443M+64.4%
Stock-Based Comp

$4.69M

Previous: $5.4M-13.2%

Revenue & EPS history

Gogo · Revenue · Quarterly

$105M

Q3 2022+20.8%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Gogo · $72M total across 1 segment · Q3 2021

  • Business Aviation
    $72M

Forward guidance

Gogo updated its 2022 financial guidance with increased expectations for total revenue, adjusted EBITDA, and free cash flow.

Tailwinds

  • Total revenue is projected to be between $395 million and $405 million.
  • Adjusted EBITDA is expected to range from $165 million to $170 million.
  • Free cash flow is anticipated to be between $50 million and $60 million.
  • Aggregate Free Cash Flow for 2022 and 2023 will be roughly equivalent to the range of $145 million to $155 million.
  • Revenue growth at a compound annual growth rate of approximately 17% from 2021 through 2026

Headwinds

  • Adjusted EBITDA includes $6 million of estimated litigation expenses and estimated operating expenses for Global Broadband.
  • Free Cash Flow guidance now includes capital expenditures of approximately $55 million, of which $40 million is tied to Gogo 5G.
  • Free Cash Flow for 2023 will be impacted by the Gogo 5G delay and potentially by the Federal Communications Commission’s Secure and Trusted Communications Networks Reimbursement Program
  • Annual Adjusted EBITDA Margin approaching 50% in 2026, up from the low 40%'s in 2022 and 2023.
  • The Company’s 2022 financial guidance and long-term targets include Global Broadband but do not reflect the impact of other new strategic investments or the FCC Program

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 Q3 2022

Historical avgQ3 2022

+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

Earnings price reactions
QuarterReport dateReaction (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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