ITASCA, Ill., February 26, 2015 – Gogo Inc. (Nasdaq: GOGO), a leading global aero communications service provider, today announced its financial results for the fourth quarter and full year ended December 31, 2014.
Gogo reported record fourth quarter revenue of $109.2 million, up 18% year-over-year, as service revenue for the quarter increased 29% to $89.7 million. CA-NA and BA combined segment profit for Q4 2014 was a record $24.3 million, up 72% year-over-year. Q4 2014 Adjusted EBITDA, which reflects the investment we are making to grow our CA-ROW business, was $1.2 million, up from negative $0.3 million in Q4 2013.
Revenue for full year 2014 was a record $408.5 million, up 24% over 2013, as service revenue increased 29% to $322.7 million. CA-NA and BA combined segment profit of $89 million was also a record for the Company. Gogo’s combined CA-NA and BA segment profit was up 80% year-over-year. Adjusted EBITDA for 2014, which reflects the investment we are making to grow our CA-ROW business, was $10.8 million, up 29% from 2013.
“We are very pleased with the financial and operating performance we delivered in Q4 and full year 2014, as we continued to see strong demand for our connectivity and wireless entertainment products and services across business segments,” said Gogo’s President and CEO, Michael Small. “With approximately 9,000 aircraft online, representing approximately 20 percent of global aircraft, Gogo has the largest number of connected aircraft in the world. Furthermore, our record number of more than 1,000 commercial aircraft awarded but not yet installed demonstrates global airlines’ growing recognition of Gogo’s industry-leading technologies and operational capabilities, which we believe position us well for continued long-term growth,” added Mr. Small.
Q4 2014 Consolidated Financial Results
• Revenue increased to $109.2 million, up 18% from $92.6 million in Q4 2013, driven by a 29% increase in service revenue to $89.7 million. Service revenue accounted for more than 82% of the Company’s revenue in the quarter.
• Combined segment profit of CA-NA and BA for Q4 2014 increased to $24.3 million, up 72% from $14.1 million in Q4 2013. Combined segment profit of CA-NA and BA as a percentage of those segments’ combined revenue increased to 22% for Q4 2014, up from 15% for Q4 2013.
• Adjusted EBITDA, which reflects the investment we are making to grow our CA-ROW business, was $1.2 million, up from negative $0.3 million in Q4 2013.
• Cash CAPEX was $12.5 million, down 48% from $23.9 million in Q4 2013, as a result of increased airborne equipment proceeds received from our airline partners.
• As of December 31, 2014, Gogo had cash and cash equivalents of $211.2 million
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