February 7, 2024
Gogo Inc. is benefiting from the surge in demand for private jet travel. The Chicago-based provider of inflight connectivity reported a record total revenue of $87.2 million in Q3. That’s 31% up compared to Q3 2020 and 6% compared to Q2 2021.
Moreover, Gogo believes demand is here to stay. It is projecting revenue growth at a compound annual growth rate of approximately 15% from 2020 to 2025.
“Demand for business aviation connectivity is surging, and we expect it to continue to surge for the next several years,” said Oakleigh Thorne, Chairman and CEO of Gogo. “Our Gogo team is doing a great job exceeding customers’ expectations and turning demand into top and bottom-line growth.”
Highlights included record service revenue of $66.2 million increase, up 24% compared to Q3 2020 and 2% compared to Q2 2021.
At the same time, equipment revenue of $21.0 million increased 59% compared to Q3 2020 and 19% compared to Q2 2021.
Total ATG aircraft online (“AOL”) reached 6,154, an increase of 10% compared to Q3 2020 and 2% compared to Q2 2021.
Total AVANCE units online grew to 2,237, an increase of 46% compared to Q3 2020. AVANCE units comprised more than 36% of total AOL as of September 30, 2021, up from 27% as of September 30, 2020.
The average monthly revenue per ATG aircraft online (“ARPU”) of $3,264 increased 9% compared to Q3 2020.
For the first time in the company’s history, Gogo achieved positive net income. Net income from continuing operations increased to $19.7 million, compared to a net loss from continuing operations of $8.9 million in Q3 2020. Basic and diluted earnings per share from continuing operations for Q3 2021 were $0.18 and $0.16, respectively.
Record Adjusted EBITDA of $40.8 million increased 35% compared to Q3 2020 and 11% compared to Q2 2021.
“Our record results for the quarter reflect our strong business model as we drive equipment sales and capture recurring service revenue as that equipment comes online,” said Barry Rowan, Gogo’s Executive Vice President and CFO. “Our balance sheet also continues to strengthen with our improved operating performance and reduced interest expense.”
According to The Jet Card Report 2021, 32% of private aviation flyers require WiFi, with 39% saying they want it if possible. Flyers requiring WiFi fly more hours and expect to continue that pace of private flying for at least the next three years.
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