- Gogo Inc GO GO on Tuesday reported revenue growth of 17% year over year for the fourth quarter of fiscal 22 to $108.2 million, beat the consensus of $107.1 million.
- Services revenue increased 12% year over year to $77.3 million. Device sales increased 34% year over year to $30.8 million.
- The total number of ATG aircraft available online increased 8% year-on-year to 6,935. Average monthly online service revenue per ATG aircraft (ARPU) was $3,370, up 2% year-on-year. The total number of AVANCE units available online increased 31% year over year to 3,279.
- Adjusted EBITDA increased 17% year over year to $46.2 million.
- Earnings per share of $0.21 beat consensus of $0.16.
- Gogo had $175.35 million in cash and cash equivalents and generated $31.5 million in operating cash flow.
- “Our device sales have skyrocketed which bodes well for future service revenue as Gogo meets exceptional demand for inflight connectivity and delivered a 50 percent increase in device shipments in 2022 despite global supply chain constraints,” said Oakleigh Thorne, Chairman and CEO.
- “We are also on track to commercialize our 5G service in the fourth quarter of this year and our LEO-based global broadband product in the second half of 2024.”
- FY23 outlook: Gogo expects FY23 revenue of $440-$455 million ($449.62 million consensus).
- Gogo extended its long-term revenue growth target of 17% CAGR from 2022 to 2027, reflecting global broadband contribution from 2025 onwards.
- Price promotion: GOGO shares traded up 12.70% to $18.21 on the latest check Tuesday.
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