- Gogo (NASDAQ:GOGO) is up 11.8% premarket after posting Q4 earnings where it beat on top and bottom lines and boosted expectations for 2017 installations.
- Revenues grew 16% and its net loss narrowed while EBITDA grew 187% to a record $23.1M.
- The company's 2Ku base covers more than 130 aircraft, and Gogo is increasing installation guidance to 450-550 aircraft in 2017, and 650-750 in 2018.
- That should help the company to become free cash flow positive in 2019, a year earlier than guided, says CFO Norman Smagley. It's also guiding to 2017 revenue of $670M-$695M (growth of 12-17%, and above consensus for $662M) and EBITDA of $60M-$75M, below an expected $77.9M.
- Revenue breakout: Service, $138.9M (up 19.8%); Equipment, $21.1M (down 3.4%).
- Total revenue by segment: Commercial Aviation-North America, $101.1M; CA-Rest of World, $7.4M; Business Aviation, $51.5M. Profit by segment: CA-NA, $24.9M; CA-ROW, -$24.7M; BA, $22.98M
- Earnings slides
- Press Release