Gogo Registers 19% Top-Line Growth In Q2; Eyes Top End Of FY22 Revenue Outlook

  • Gogo Inc GOGO reported second-quarter FY22 revenue growth of 19% year-on-year to $97.8 million, beating the consensus of $94.1 million.
  • Service revenue grew 13% Y/Y to $73.1 million. Equipment revenue rose 41% Y/Y to $24.8 million.
  • Total ATG aircraft online increased 10% Y/Y to 6,654. The average monthly service revenue per ATG aircraft online (ARPU) was $3,328, up 1% Y/Y. Total AVANCE units online grew 40% Y/Y to 2,893.
  • Adjusted EBITDA rose 12% Y/Y to $41.2 million.
  • EPS of $0.17 beat the consensus of $0.14.
  • Gogo held $164 million in cash and equivalents and generated $26.4 million in operating cash flow.
  • Gogo recently revealed its plan to launch the first low earth orbit (LEO)-based global broadband service in business aviation using an electronically steered antenna designed with Hughes Network Systems and a LEO satellite network operated by OneWeb.
  • Outlook: Gogo updated FY22 total revenue guidance to the high end of the previously guided $390 million - $400 million, above the consensus of $395.9 million.
  • Gogo raised its revenue growth forecast at a CAGR of 17%, up from the previously guided 15% from 2021 through 2026, reflecting Global Broadband contribution starting in 2025.
  • Price Action: GOGO shares traded higher by 1.53% at $18.56 in the premarket on the last check Friday.


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