Gogo Inc GOGO reported third-quarter FY23 revenue growth of 7% year-on-year to $97.9 million, missing the consensus of $103.8 million. EPS of $0.16 beat the consensus of $0.14.
Service revenue grew 6% Y/Y to $79.5 million. Equipment revenue declined by 39% Y/Y to $18.4 million.
Total ATG aircraft online increased 6% Y/Y to 7,150. The average monthly service revenue per ATG aircraft online (ARPU) was $3,373, flat Y/Y. Total AVANCE units online increased by 23% Y/Y to 3,784.
Adjusted EBITDA declined by 1% Y/Y to $43.2 million.
Gogo held $110.8 million in cash and equivalents and generated $18.7 million in operating cash flow.
"We are in a two-year investment cycle launching Gogo 5G and Galileo (our global LEO satellite product) to deliver order-of-magnitude improvements in network speed and coverage, grow our addressable market, and strengthen our competitive position," said Oakleigh Thorne, Chairman and CEO.
FY23 Outlook: Gogo cut the FY23 revenue outlook to $390 million - $400 million (prior $410 million - $420 million) vs consensus $439.01 million.
Gogo reiterated its long-term revenue growth target of a CAGR of 15% - 17% from 2022 through 2027, reflecting Global Broadband contribution starting in 2025.
Price Action: GOGO shares traded lower by 5.98% at $9.99 on the last check Tuesday.
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