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Here's A Breakup of Gogo's Strong Q1 Performance

Published 05/05/2022, 20:49
Updated 05/05/2022, 21:42
© Reuters.  Here's A Breakup of Gogo's Strong Q1 Performance

  • Gogo Inc (NASDAQ: GOGO) reported first-quarter FY22 revenue growth of 26% year-on-year to $92.8 million, beating the consensus of $89.3 million.
  • Service revenue grew 19% Y/Y to $70.7 million. Equipment revenue rose 52% Y/Y to $22.1 million.
  • Total ATG aircraft online increased 11% Y/Y to 6,526. The average monthly service revenue per ATG aircraft online (ARPU) was $3,321, up 8% Y/Y. Total AVANCE units online grew 42% Y/Y to 2,699.
  • Adjusted EBITDA rose 26% Y/Y to $42.8 million.
  • EPS of $0.18 beat the consensus of $0.13.
  • Gogo held $152.8 million in cash and equivalents and generated $17.9 million in operating cash flow.
  • "Given the continued unprecedented demand for connectivity in business aviation coupled with the strong performance of our supply chain management team, we have increased our projection for ATG equipment unit shipments to 1,300 in 2022, up nearly 50% year over year versus prior expectations for 25% growth," Chair and CEO Oakleigh Thorne said. "We remain on track for commercial deployment of our 5G ATG network in the second half of 2022."
  • Outlook: Gogo raised FY22 total revenue guidance from $380 million - $395 million to $390 million - $400 million, above the consensus of $388 million.
  • Gogo reiterated revenue growth at a CAGR of 15% from 2021 through 2026.
  • Price Action: GOGO shares traded lower by 4.18% at $18.09 on the last check Thursday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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