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Gogo Stock Flies High Q1 Earnings Beat, Raised FY21 Guidance

Gogo Stock Flies High Q1 Earnings Beat, Raised FY21 Guidance
  • Gogo Inc (NASDAQ: GOGOreported first-quarter FY21 revenue growth of 4.1% year-on-year to $73.869 million, marginally beating analyst consensus of $73.85 million.
  • Improvement in service and equipment revenue drove the revenue growth signifying continuing recovery in the business aviation industry and strong sales of Gogo's AVANCE platform.
  • Service revenue rose 2.8% Y/Y to $59.4 million from a 3% increase in AOL and recognition of service revenue from the Network Sharing Agreement with Intelsat. Equipment revenue rose 9.9% Y/Y to $14.5 million from increased shipments of AVANCE L5.
  • Total ATG aircraft online (AOL) units rose 3% Y/Y TO 5,892, and Total AVANCE units online rose over 42% Y/Y to 1,900.
  • Net loss declined 90.9% Y/Y to $7.7 million, with an adjusted EPS loss of ($0.07) beating consensus of ($0.13) loss.
  • Adjusted EBITDA rose 25% Y/Y to $33.9 million.
  • Gogo held $455.2 million in cash and equivalents and generated $24.6 million in operating cash flow.
  • Guidance: FY21 revenue outlook was raised from $300 million - $320 million earlier, to $310 million - $325 million versus the consensus of $313.37 million. Adjusted EBITDA guidance was raised from $105 million - $120 million prior, to 115 million to $125 million. Capex outlook of $25 million to $30 million is primarily tied to Gogo 5G. Free cash flow guidance outlook $10 million - $20 million including cash interest payments of $71 million.
  • The enhanced financial flexibility and strong cash flow enabled the company to invest in planned 5G deployment, which will significantly improve the performance of the proprietary ATG network, and drive further market penetration of the AVANCE platform, Chair and CEO Oakleigh Thorne said.
  • Price action: GOGO shares traded higher by 9.5% at $10.82 on the last check Thursday.

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