NASDAQ$GOGO
Gogo Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Announced third quarter results, updated 2023 financial guidance, and reiterated long-term targets.
Gogo Inc. reported a decrease in total revenue by 7% year-over-year, totaling $97.9 million, but achieved a record third quarter service revenue of $79.5 million, up 6% year-over-year. The company's net income increased by 4% to $20.9 million.
- Total revenue decreased 7% year-over-year to $97.9 million.
- Record service revenue increased 6% year-over-year to $79.5 million.
- Net income increased 4% from Q3 2022, reaching $20.9 million.
- Total ATG aircraft online reached 7,150, a 6% increase compared to Q3 2022.
Headline financials
Revenue & EPS history
Gogo · Revenue · Quarterly
$97.9M
Revenue by segment
Gogo · $72M total across 1 segment · Q3 2021
- Business Aviation$72M—100.0%
Forward guidance
Gogo anticipates revenue between $390 million and $400 million, with adjusted EBITDA at the higher end of the $150 million to $160 million range, and free cash flow also at the high end of its $60 million to $70 million guidance.
Tailwinds
- Revenue growth at a compound annual growth rate of approximately 15%-17% from 2022 through 2027.
- Annual Adjusted EBITDA Margin in the mid-40% range by 2027.
- Free Cash Flow in the range of $150 million to $200 million in 2025, without the effect of the FCC Reimbursement program, and growing thereafter.
- The Company continues to expect that Gogo Galileo will contribute revenue beginning in 2025.
- Capital expenditures of $25 million to $30 million including $12 million for the Gogo 5G program and $2 million related to the FCC Reimbursement Program, versus prior guidance at the low end of $30 million to $40 million.
Headwinds
- 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.
- Adjusted EBITDA at the high end of the previously guided range of $150 million to $160 million reflecting operating expenses of approximately $15 million for strategic and operational initiatives including Gogo 5G, Gogo Galileo and the FCC Reimbursement Program.
- Free Cash Flow at the high end of the previously guided range of $60 million to $70 million which includes approximately $20 million of negative Free Cash Flow due to the expected lag of reimbursements tied to the FCC Reimbursement Program.
- Near-term revenue headwinds
- Two-year investment cycle launching Gogo 5G and Galileo
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 2023
+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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