Gogo Reports Mixed Q1 Performance, Sees Robust Business Aviation Demand For Inflight Connectivity - Gogo (NASDAQ:GOGO)

Gogo Inc GOGO reported first-quarter FY23 revenue growth of 6% year-on-year to $98.6 million, missing the consensus of $101.4 million.
Service revenue grew 11% Y/Y to $78.5 million. Equipment revenue declined by 9% Y/Y to $20.1 million.
Total ATG aircraft online increased 8% Y/Y to 7,046. The average monthly service revenue per ATG aircraft online (ARPU) was $3,389, up 2% Y/Y. Total AVANCE units online grew 28% Y/Y to 3,447.
Adjusted EBITDA declined by 7% Y/Y to $39.7 million.
EPS of $0.15 beat the consensus of $0.13.
Gogo held $188 million in cash and equivalents and generated $18.5 million in operating cash flow.
"Channel momentum is building for our on-track launches of 5G in Q4 this year and our LEO-based Global Broadband product in the second half of 2024," said Oakleigh Thorne, Chairman and CEO. "Business aviation demand for inflight connectivity remains robust and we expect our channel partners to make continued progress in installing our record 2022 equipment shipments."
FY23 Outlook: Gogo reiterated FY23 revenue of $440 million - $455 million (consensus $443.87 million).
Gogo reiterated its long-term revenue growth target of a CAGR of 17% from 2022 through 2027, reflecting Global Broadband contribution starting in 2025.
Price Action: GOGO shares traded lower by 2.44% at $12.82 on the last check Wednesday.