Friday, November 06, 2015 11:55:37 AM
So what: Quarterly revenue rose 22% year over year to $126.4 million, driven primarily by a 31% increase in Service revenue to $107.2 million. That translated to adjusted earnings before interest, taxes, depreciation and amortization (EBTIDA) of $9.7 million, up from $1.2 million in the year-ago period. Meanwhile, Gogo's adjusted net loss widened to $28.9 million, or $0.37 per share, compared with an adjusted net loss in last year's third quarter of $24.9 million, or $0.32 per share.
That might not sound impressive, but analysts were expecting Gogo to report an even larger loss of $0.41 per share on lower revenue of $123.7 million.
"We are extremely pleased with our strong financial performance for the quarter," explained Gogo CEO Michael Small, "and even more pleased with the flight test results of 2Ku, our next generation global connectivity solution, and that portends great things for our future.
Small went on to describe 2Ku as "the first truly global broadband highway in the sky," thanks to its ability to provide real-time streaming and live TV programming. So far, eight airlines have selected 2Ku since it was first announced last year -- "a pace of adoption that's unprecedented in our industry," Small noted.
Now what: Looking forward, Gogo now anticipates full-year 2015 revenue of $485 million to $505 million, and adjusted EBITDA of $30 million to $35 million. The midpoint of the former range sits well above analysts' estimates for 2015 revenue of $491.5 million.
In the end, keeping in mind Gogo stock was down 10% year to date going into yesterday's close, I think the market is rightly encouraged by this report. But given its widening losses for now, I'm personally content watching Gogo's progress from the sidelines as it continues working toward sustained profitability.
Recent GOGO News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/17/2024 11:17:40 PM
- Gogo Business Aviation and Airshare Announce Multi-Year Agreement to Provide Upgraded Connectivity • PR Newswire (US) • 09/16/2024 11:01:00 AM
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- Gogo and Skyservice Business Aviation Developing Extensive 5G STC Portfolio • PR Newswire (US) • 08/26/2024 11:01:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/07/2024 08:03:54 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/07/2024 08:03:03 PM
- Gogo Announces Second Quarter Results • PR Newswire (US) • 08/07/2024 11:01:00 AM
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- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 08/01/2024 08:10:24 PM
- Form S-8 POS - Securities to be offered to employees in employee benefit plans, post-effective amendments • Edgar (US Regulatory) • 08/01/2024 08:09:21 PM
- Gogo and Duncan Aviation Collaborate to Expand 5G STC Portfolio • PR Newswire (US) • 08/01/2024 11:01:00 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 07/29/2024 08:01:44 PM
- Gogo Appoints Monte Koch, Chair Emeritus of the NBAA, to Board of Directors • PR Newswire (US) • 07/24/2024 11:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/23/2024 08:01:23 PM
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- Gogo AVANCE Operators Unlock New Efficiencies With Over-the-Air System Updates • PR Newswire (US) • 06/27/2024 11:01:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/06/2024 08:02:59 PM
- Skyservice Business Aviation Builds Gogo AVANCE Center of Excellence • PR Newswire (Canada) • 06/06/2024 05:30:00 PM
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