Gogo Tops Q1 Views, Shares Rise

Shares of Gogo Inc GOGO jumped over 5 percent in pre-market trading after the company reported a narrower-than-expected loss for the first quarter. The Itasca, Illinois-based company posted a quarterly net loss of $20.1 million, or $0.24 per share, versus a year-ago loss of $16.9 million, or $0.20 per share. Its revenue climbed 20.7 percent year-over-year to $115.5 million. However, analysts were expecting a loss of $0.28 per share on revenue of $113.08 million. Its service revenue gained 32 percent year-over-year to $95.4 million in the quarter. Adjusted EBITDA surged 54 percent to $8.2 million. Combined segment profit of CA-NA and BA rose 19 percent to $26.4 million in the quarter. As of March 31, 2015, the company had $400.1 million in cash and cash equivalents. "Q1 was a very strong quarter for Gogo on many fronts. We delivered record financial results highlighted by strong revenue growth and increased profitability. We continued to bring more bandwidth to the sky as Delta Airlines, a long-term airline partner, selected our 2Ku satellite-based technology for 250 domestic and at least 25 new international aircraft. Finally, we are very pleased that the international airline community is increasingly recognizing our company's global leadership," said Gogo's President and CEO, Michael Small. The company expects FY15 revenue of $485 million to $505 million, versus analysts' estimates of $499.25 million. Gogo shares climbed 5.77 percent to $22.00 in pre-market trading.