Q3 2023 Highlights
Total revenue of
Record service revenue of
Equipment revenue of
AVANCE equipment units shipped totaled 192, a decrease of 51% compared to Q3 2022 and a decrease of 31% compared to Q2 2023.
Total ATG aircraft online ('AOL') reached 7,150, an increase of 6% compared to Q3 2022 and an increase of 1% compared to Q2 2023.
Total AVANCE AOL grew to 3,784, an increase of 23% compared to Q3 2022 and 5% compared to Q2 2023. AVANCE units comprised approximately 53% of total AOL as of
Average Monthly Revenue per ATG aircraft online ('ARPU') of
Net income of
Diluted earnings per share was
Adjusted EBITDA(1) of
Cash provided by operating activities of
Free Cash Flow(1) was
Cash, cash equivalents and short-term investments totaled
'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
'Despite near-term revenue headwinds, Gogo maintains our long-term targets of approximately 15-17% revenue growth from 2022-2027 and
2023 Financial Guidance and Long-Term Financial Targets
The Company provides the following guidance for 2023, which includes the impact of the
Total revenue in the range of
Adjusted EBITDA(1) at the high end of the previously guided range of
Free Cash Flow(1) at the high end of the previously guided range of
Capital expenditures of
The Company reiterates the following long-term financial targets:
Revenue growth at a compound annual growth rate of approximately 15%-17% from 2022 through 2027. The Company continues to expect that Gogo Galileo will contribute revenue beginning in 2025.
Annual Adjusted EBITDA Margin(1) in the mid-40% range by 2027.
Free Cash Flow(1) in the range of
(1) See 'Non-GAAP Financial Measures' below
Conference Call
The Company will host its third quarter conference call on
Participants can also join the call by dialing +1 844-543-0451 (within
https://register.vevent.com/register/BIc916c46af134493e80fe6a372b98e364
Non-GAAP Financial Measures
We report certain non-GAAP financial measurements, including Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow in the discussion above. Management uses Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow for business planning purposes, including managing our business against internally projected results of operations and measuring our performance and liquidity. These supplemental performance measures also provide another basis for comparing period-to-period results by excluding potential differences caused by non-operational and unusual or non-recurring items. These supplemental performance measurements may vary from and may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow are not recognized measurements under accounting principles generally accepted in
Cautionary Note Regarding Forward-Looking Statements
Certain disclosures in this press release and related comments by our management include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding our business outlook, industry, business strategy, plans, goals and expectations concerning our market position, international expansion, future technologies, future operations, margins, profitability, future efficiencies, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words 'anticipate,' 'assume,' 'believe,' 'budget,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'project,' 'should,' 'will,' 'future' and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release. Forward-looking statements are based on our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to have been correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, the following: our ability to continue to generate revenue from the provision of our connectivity services; our reliance on our key OEMs and dealers for equipment sales; the impact of competition; our reliance on third parties for equipment components and services; the impact of global supply chain and logistics issues and increasing inflation; our ability to expand our business outside of
Additional information concerning these and other factors can be found under the caption 'Risk Factors' in our annual report on Form 10-K for the year ended
Any one of these factors or a combination of these factors could materially affect our financial condition or future results of operations and could influence whether any forward-looking statements contained in this report ultimately prove to be accurate. Our forward-looking statements are not guarantees of future performance, and you should not place undue reliance on them. All forward-looking statements speak only as of the date made and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
About Gogo
Gogo is the world's largest provider of broadband connectivity services for the business aviation market. We offer a customizable suite of smart cabin systems for highly integrated connectivity, inflight entertainment and voice solutions. Gogo's products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals.
As of
Unaudited Condensed Consolidated Statements of Operations: See full release at:
https://gogoair.mediaroom.com/2023-11-07-Gogo-Announces-Third-Quarter-Results
Investor Relations Contact:
Media Relations Contact:
+1 917-519-6994
+1 303-301-3606
wdavis@gogoair.com
dmellin@gogoair.com
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