UPDATE: Gogo Posts Upbeat Results, Shares Rise
Gogo (NASDAQ: GOGO) shares surged more than 9% in pre-market trading after the company reported upbeat first-quarter results.
Gogo posted a quarterly loss of $16.9 million, or $0.20 per share, versus a year-ago loss of $32.5 million, or $4.77 per share. Its adjusted EBITDA climbed 87% to $5.3 million from $2.9 million.
Its revenue rose 35% to $95.69 million from 70.75 million. However, analysts were expecting a loss of $0.24 per share on revenue of $93.5 million.
Gogo's operating expenses rose 30% y/y to $105.0 million versus $81.1 million, while cash CAPEX surged 6% to $28.6 million from $27.1 million.
Gogo's President and CEO, Michael Small said, "We had an excellent first quarter, during which we produced strong financial results, achieved several important technical and business milestones, and launched connectivity service on Delta's international fleet."
Commercial Aviation - North America: Total revenue for the segment climbed 32% to $57.1 million from $43.4 million, while profit rose to $5.8 million, versus a year-ago segment loss of $0.4 million.
Business Aviation: Total revenue climbed 47% to $38.6 million versus $26.2 million, while profit gained 74% to $16.5 million from $9.5 million.
Commercial Aviation - Rest of World: Segment loss widened to $16.9 million, versus a year-ago segment loss of $6.2 million.
Gogo shares jumped 9.30% to $13.04 in pre-market trading.
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