NASDAQ$GOGO

Gogo Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced record fourth quarter and 2021 financial results and provided 2022 guidance and updated long-term targets.

Gogo Inc. reported a record fourth quarter with revenue of $92.3 million, up 19% year-over-year, and net income from continuing operations of $209.1 million. The company is on track for commercial launch of its 5G network in the second half of 2022.

  • Record total revenue of $92.3 million, a 19% increase compared to Q4 2020.
  • Total ATG aircraft online reached 6,400, an 11% increase compared to Q4 2020.
  • Average Monthly Revenue per ATG aircraft online (ARPU) of $3,301, an 8% increase compared to Q4 2020.
  • Net income from continuing operations increased to $209.1 million from a net loss of ($16.1) million in Q4 2020.

Headline financials

Total Revenue

$92.3M

Previous: $77.6M+18.9%
EPS (adj)

$0.17

Previous: -$0.19+189.5%
Capital Expenditures

$1.43M

Previous: $1.37M+4.5%
Free Cash Flow

$25.7M

No prior period
Net Income

$209M

Previous: $845K+24649.9%
Operating Income

$32.3M

Previous: $15.7M+106.0%
Gross Profit

$63.9M

Previous: $50.1M+27.6%
Cash & Equivalents

$146M

Previous: $435M-66.5%
Total Assets

$648M

Previous: $674M-3.8%
Stock-Based Comp

$3.2M

Previous: -$475K+773.9%

Revenue & EPS history

Gogo · Revenue · Quarterly

$92.3M

Q4 2021+18.9%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

  • Business Aviation
    $72M

Forward guidance

The Company is providing the following guidance for 2022. This guidance is derived from the Company’s baseline budget and includes planned investments in Gogo 5G but does not include potential strategic investments currently under consideration (including a global broadband initiative).

Tailwinds

  • Total revenue in the range of $380 million to $395 million
  • Adjusted EBITDA in the range of $150 million to $160 million, reflecting a planned increase in Gogo 5G investment
  • Free Cash Flow of $25 million to $45 million, including cash interest payments of approximately $36 million and capital expenditures of approximately $65 million, with approximately $50 million of the capital expenditures tied to Gogo 5G
  • Revenue growth at a compound annual growth rate of approximately 15% from 2021 through 2026
  • Annual Adjusted EBITDA Margin approaching 50% in 2026, up from the low 40%'s in 2022 and 2023

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 Q4 2021

Historical avgQ4 2021

+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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