GOGO Earnings Prediction
The chart below shows how GOGO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GOGO sees a +3.28% change in stock price 10 days leading up to the earnings, and a -0.25% change 10 days following the report. On the earnings day itself, the stock moves by +1.27%. This data can give you a slight idea of what to expect for the next quarter's release.
GOGO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
100.53M
2.63%
-1.50%
Gross Margin
61.97%
-3.38%
0.60%
Operating Margin
25.59%
-24.76%
20.48%
Net Margin
10.57%
-50.49%
1189.02%
EPS
0.08
-50.00%
700.00%
No Data Available
GOGO Earnings Analysis
Gogo Inc. Corporation (GOGO.O) Earnings Conference Call
Positive
Revenue Growth Q3 2024: 1. Strong Revenue Growth: Gogo's total revenue for Q3 2024 was $100.5 million, reflecting a 3% year-over-year increase, driven by service revenue growth and an increase in AVANCE units online.
AVANCE Units Growth: 2. Record AVANCE Units Online: The total number of AVANCE units online grew by 16% year-over-year to 4,379 aircraft, representing 62% of Gogo's ATG installed base, indicating strong demand and successful upgrades.
Free Cash Flow Increase: 3. Increased Free Cash Flow: Gogo generated $24.6 million in free cash flow during Q3 2024, an increase of $3.6 million compared to the prior year, primarily due to higher FCC reimbursement.
EBITDA Improvement: 4. Improved EBITDA Performance: The company reported a sequential increase in adjusted EBITDA of 14%, reaching $34.8 million, largely attributed to lower legal fees and effective cost management.
Strong Future Demand: 5. Positive Market Outlook: According to Honeywell's Annual Global Business Aviation Outlook, aircraft owners and operators are expected to invest approximately $280 billion in 8,500 new business jets by 2033, indicating a strong future demand for Gogo's services.
Negative
ATG Aircraft Online Decline: 1. Decline in ATG Aircraft Online: Gogo's ATG aircraft online decreased by 2% year-over-year, indicating a decline in customer engagement and potential revenue loss.
Equipment Revenue Decline: 2. Sequential Drop in Equipment Revenue: Equipment revenue fell by 7% sequentially, as many customers delayed purchases in anticipation of new product launches, reflecting uncertainty in demand.
Rising Operating Expenses: 3. Increased Operating Expenses: Combined engineering, design, and development, sales and marketing, and general and administrative expenses rose by 47% year-over-year, reaching $43.2 million, which could pressure profitability.
Adjusted EBITDA Decline: 4. Year-over-Year Decrease in Adjusted EBITDA: Gogo's adjusted EBITDA decreased by 19% year-over-year to $34.8 million, primarily due to increased legal expenses and the absence of prior year benefits.
Negative Free Cash Flow Outlook: 5. Negative Free Cash Flow Anticipation: Gogo expects free cash flow to swing negative in Q4 2024 due to higher net working capital and continued investments in strategic initiatives, indicating potential liquidity concerns.
GOGO FAQs
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GOGO Earning Call Sentiment
Gogo Inc. (GOGO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
GOGO.O
1.02%Positive
The earnings call summary presents a mixed but overall positive outlook. Financial performance shows modest growth with strong ARPA and AVANCE unit increases, despite some margin pressure. The acquisition of Satcom Direct is strategic, promising to double business size and deliver synergies, though it introduces debt concerns. Share repurchase activity is positive for shareholder returns. Despite cautious combined company guidance, optimistic future product launches and increased free cash flow guidance suggest a positive sentiment. Given the small-cap nature, the stock is likely to react positively, with a predicted movement of 2% to 8%.
