NASDAQ$GOGO

Gogo Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Gogo's revenue increased slightly, driven by growth in service revenue and AVANCE aircraft online, but net income and Adjusted EBITDA decreased due to various factors including increased expenses and acquisition-related costs.

Gogo Inc. reported a 3% year-over-year increase in total revenue, reaching $100.5 million for Q3 2024. Service revenue also grew by 3% to $81.9 million. Net income decreased by 49% to $10.6 million, and Adjusted EBITDA decreased by 19% to $34.8 million. The company updated its 2024 guidance and highlighted strategic wins with Textron Aviation and Wheels Up.

  • Total revenue increased by 3% year-over-year to $100.5 million.
  • Service revenue increased by 3% year-over-year to $81.9 million.
  • Net income decreased by 49% year-over-year to $10.6 million.
  • Adjusted EBITDA decreased by 19% year-over-year to $34.8 million.

Headline financials

Total Revenue

$101M

Previous: $97.9M+2.6%
EPS (adj)

$0.12

Previous: $0.16-25.0%
Capital Expenditures

-$9.25M

Previous: -$14M+33.9%
Free Cash Flow

$1.38M

Previous: $6.91M-80.1%
Net Income

$10.6M

Previous: $20.9M-49.2%
Operating Income

$19.1M

Previous: $33.3M-42.8%
Gross Profit

-$1.31M

Previous: -$541K-142.1%
Cash & Equivalents

$177M

Previous: $86.2M+105.1%
Total Assets

$811M

Previous: $767M+5.7%
R&D Expense

$9.76M

Previous: $9.15M+6.6%
Stock-Based Comp

$5.03M

Previous: $5.24M-3.9%

Revenue & EPS history

Gogo · Revenue · Quarterly

$101M

Q3 2024+2.6%vs Q3 2023
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 anticipates total revenue between $400 million and $410 million. Adjusted EBITDA is projected to be in the range of $120 million to $130 million. Free Cash Flow is expected to be between $55 million and $65 million, inclusive of $35 million from the FCC Reimbursement Program.

Tailwinds

  • Total revenue expected to be in the range of $400 million to $410 million.
  • Adjusted EBITDA expected to be in the range of $120 million to $130 million.
  • Free Cash Flow expected to be in the range of $55 million to $65 million, including $35 million from the FCC Reimbursement Program.
  • Capital expenditures are projected to be approximately $30 million.
  • Satcom Direct acquisition expected to be accretive day one.

Headwinds

  • Guidance excludes the impact of the closing of the Satcom Direct transaction.
  • Multi-year long-term financial targets previously provided on August 7, 2024, have been withdrawn.
  • Adjusted EBITDA guidance reflects increased legal expenses from ongoing legal proceedings.
  • Adjusted EBITDA guidance includes approximately $20 million of operating expenses for strategic and operational initiatives including Gogo 5G and Gogo Galileo.
  • Company expects to reach its net leverage target of 2.5x-3.5x within 1-2 years after closing.

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 2024

Historical avgQ3 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

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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