Gogo posts mixed third-quarter results as full-year sales projection falls

BROOMFIELD — Gogo Inc. (Nasdaq: GOGO), a provider of broadband connectivity services for the business-aviation market, saw its bottom line improve year over year in the third quarter of 2023, but quarterly sales and full-year 2023 revenue projections trended downward.

The Broomfield-headquartered firm posted total revenue of $97.9 million, down 7% from the same period last year, while year-over-year net income grew 4% to $20.9 million in the most recent quarter. 

“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,” Gogo CEO Oakleigh Thorne said in a prepared statement. “We expect these investments to drive significant growth starting in 2025 and to drive substantial returns for shareholders.”

Gogo is projecting total 2023 revenue in the range of $390 million to $400 million, down from prior guidance in the range of $410 million to $420 million. The reduction is driven predominantly by lower equipment revenue.

“Despite near-term revenue headwinds, Gogo maintains our long-term targets of approximately 15-17% revenue growth from 2022-2027 and $150 million to $200 million of free cash flow in 2025. Our guidance is underpinned by our strong outlook for our planned Gogo 5G and Gogo Galileo product launches, in an underpenetrated global market,” Gogo chief financial officer Jessi Betjemann said in a prepared statement. “We expect to continue to strengthen our balance sheet while investing in our key growth initiatives.”

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