Gogo post Q1 loss but revenues top Wall Street expectations
BROOMFIELD — Gogo Inc. (Nasdaq: GOGO), a Chicago-based in-flight broadband connectivity firm with a major business unit headquartered in Broomfield, saw its stock price spike more than 19.64% Monday despite posting a net quarterly loss of $84.8 million.
The firm, which houses its Gogo Business Aviation division and its roughly 300 employees in Broomfield, posted sales of $184.48 million for the first quarter, besting the Zacks Consensus Estimate by 3.48%.
Gogo’s earnings report comes just weeks after it announced that it would furlough more than 600 workers, about 60% percent of its workforce. The furloughs impacted about 90 local workers.
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“We started the year well ahead of plan, but commercial aviation demand fell sharply in March due to COVID-19 and has deteriorated further in Q2,” Gogo CEO Oakleigh Thorne said in a prepared statement. “There has also been a slowdown in new activations and an increase in account suspensions in our business aviation segment, which we expect will negatively impact BA revenue in Q2. The Gogo team responded quickly to COVID-19 with actions to reduce costs, maintain our strong global franchise and ensure our long-term financial viability. I think we are well positioned to get through this crisis and am extremely proud of the efforts and sacrifices of our Gogo team in these difficult times.”
