NASDAQ$GOGO

Gogo Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Announced fourth quarter and 2023 results, provided 2024 financial guidance, and updated long-term targets.

Gogo Inc. reported a decrease in total revenue but a record in service revenue for Q4 2023. The company's net income decreased compared to Q4 2022, while free cash flow increased. Gogo is launching Gogo Galileo and Gogo 5G later in the year.

  • Total revenue decreased by 10% year-over-year to $97.8 million.
  • Record service revenue increased by 5% year-over-year to $80.9 million.
  • Net income decreased 48% from Q4 2022 to $14.5 million.
  • Free Cash Flow increased from $25.0 million in the prior-year period to a record $28.4 million.

Headline financials

Total Revenue

$97.8M

Previous: $108M-9.6%
EPS (adj)

$0.11

Previous: $0.21-47.6%
Capital Expenditures

-$5.37M

Previous: $8.73M-161.5%
Net Income

$14.5M

Previous: $27.7M-47.8%
Operating Income

$24.9M

Previous: $38.7M-35.7%
Gross Profit

$59.9M

Previous: $70.4M-14.9%
R&D Expense

$10.4M

No prior period
Stock-Based Comp

$5.56M

Previous: $4.96M+12.0%

Revenue & EPS history

Gogo · Revenue · Quarterly

$97.8M

Q4 2023-9.6%vs Q4 2022
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 provides financial guidance for 2024, including total revenue, Adjusted EBITDA, and Free Cash Flow, and long-term financial targets, including revenue growth and Adjusted EBITDA Margin.

Tailwinds

  • Total revenue in the range of $410 million to $425 million.
  • Free Cash Flow in the range of $20 million to $40 million, which includes $45 million in reimbursements tied to the FCC Reimbursement Program.
  • Revenue growth at a compound annual growth rate of approximately 15%-17% from 2023 through 2028.
  • Gogo Galileo will contribute revenue beginning in 2025.
  • Reiterates Free Cash Flow in the range of $150 million to $200 million in 2025, without the effect of the FCC Reimbursement program.

Headwinds

  • Adjusted EBITDA in the range of $110 million to $125 million reflecting operating expenses of approximately $40 million for strategic and operational initiatives including Gogo 5G and Gogo Galileo and $4 million in legal expenses tied to the SmartSky litigation.
  • Capital expenditures of approximately $45 million including $25 million for strategic initiatives including Gogo 5G, Gogo Galileo and the LTE network build.
  • Annual Adjusted EBITDA Margin reaching 40% in 2028 versus the prior target in the mid-40% range in 2027.
  • Total revenue of $97.8 million, down 10% Year-over-Year
  • Net income of $14.5 million decreased 48% from $27.7 million in Q4 2022.

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 2023

Historical avgQ4 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

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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