Gogo stock ascends with improved EBITDA outlook

BROOMFIELD — Gogo Inc.’s (Nasdaq: GOGO) stock price took off in early trading Tuesday after the Broomfield-based provider of broadband connectivity services for the business aviation market increased its 2024 EBITDA guidance. 

The company posted sales of $100.5 million in the third quarter of 2024, up 3% compared with the same period last year. 

Gogo’s net income of $10.6 million decreased in the most recent quarter, down 49% year over year.

The company reiterated its previous full-year revenue guidance of $400 million to $410 million but increased its EBITDA projection from a range of $110 million to $125 million to a spread of $120 million to $130 million.

During the third quarter, Gogo entered into an agreement to buy Satcom Direct Inc., a Melbourne, Florida-based in-flight communications company, in a deal that could be worth more than $600 million.

“Our Satcom Direct acquisition will turbo-charge Gogo Galileo penetration of the global underpenetrated Business Aviation and Military/Government markets,” Gogo CEO Oakleigh Thorne said in a prepared statement.  “Unprecedented demand for both Galileo and Gogo 5G will drive equipment revenue in 2025, and growth in profitable recurring service revenue beginning in 2026.” 

Gogo’s stock price at 12:20 p.m. on Tuesday was $8.50, up nearly 30% on the day. 

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