Gogo Inc GOGO reported a fourth-quarter (Q4) fiscal 2023 revenue decline of 10% year-on-year to $97.8 million, beating the consensus of $96.5 million.
EPS of broadband connectivity services provider for the business aviation market was $0.11, in line with the consensus.
Service revenue grew 5% Y/Y to $80.9 million. Equipment revenue declined by 45% Y/Y to $16.9 million.
Total ATG aircraft online increased 4% Y/Y to 7,205. The average monthly service revenue per ATG aircraft online (ARPU) was $3,387 versus $3,370 Y/Y. Total AVANCE units online increased by 21% Y/Y to 3,976.
Adjusted EBITDA declined by 24% Y/Y to $35.1 million.
Chicago-based Gogo held $139 million in cash and equivalents as of Dec. 31, 2023, and generated $26.2 million in operating cash flow.
“The launches of Gogo Galileo and Gogo 5G later this year will provide order-of-magnitude improvements in the network speeds we deliver to customers and significantly increase our global total addressable market,” said CEO Oakleigh Thorne.
FY24 Outlook: Gogo expects revenue of $410 million – $425 million vs consensus $423.49 million.
Gogo revised its long-term revenue growth target of a CAGR of 15% – 17% from 2023 through 2027 versus the prior target of 15% – 17% from 2022 through 2027. The company expects Gogo Galileo to contribute revenue beginning in 2025.
Price Action: GOGO shares traded lower by 0.69% at $8.70 premarket on the last check Wednesday.
Back in November, “Mad Money” host Jim Cramer called Gogo a “good Covid stock, but it's not anymore.”
“I would cash out,” Cramer said at the time.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.