Gogo Q4 revenue surges 41% after Satcom Direct deal
Business aviation connectivity sprovider Gogo reported its fourth quarter and full year 2024 financial results today, showing significant revenue growth thanks to the acquisition of Satcom Direct.
In its filings, the company reported revenue of $137.8m in fourth quarter, an increase of 41% compared to same period in 2023. Satcom, which the company acquired in December, contributed $40.2m to the total revenue during the quarter. Notable growth was seen in Gogo’s service revenue which jumped 47% year-on-year to $118.8m while equipment revenue increased 12% to $19m compared to the fourth quarter of 2023.
The revenue increase came on the back of Gogo’s continued growth in its AVANCE platform adoption, with total AVANCE aircraft online growing to 4,608, a 16% increase year-over-year.
AVANCE units now comprise approximately 65% of its total aircraft online, up from 55% at the end of 2023. Average Monthly Connectivity Service Revenue per ATG aircraft reached a record $3,500, a 3% increase from Q4 2023. Broadband GEO aircraft online increased to 1,249, up by 182 aircraft compared to Q4 2023.
While contribution from Satcom Direct led to sharp revenue gains, the company posted a net loss of $28.2m during the quarter against a net income of $14.5m in the corresponding period of 2023. The company attributed the loss to the $46.8m in expenses from the acquisition , resulting in diluted earnings per share of $(0.22) compared to $0.11 in the prior year.
The company’s adjusted EBITDA for the quarter under review stood at $34m, a 3% decrease from Q4 2023, reflecting approximately $4.3 million in operating expenses related to strategic initiatives including Gogo Galileo and Gogo 5G.
For the full year 2024, Gogo reported total revenue of $444.7m, an increase of 12% from 2023. Service revenue reached $364.3m, up 15% year on year, while equipment revenue showed a relatively flat growth of 1% to $80.4m. Overall, during the year, the company’s net income clocked in at $13.7m for the full year, down from $145.7m in 2023, which had included a $48.1m tax benefit. On the bottom line, diluted earnings per share for 2024 was $0.10, compared to $1.09 in 2023.
Sharing its progress on acquisition of Satcom Direct, the company said it has made significant progress with integration, achieving $18m in run-rate synergies at the close of the acquisition on December 3, 2024. The company is expecting another $9m in run-rate synergies before the end of Q1 2025, exceeding the high end of the previously guided range of $25-30m.
Gogo also announced receipt of Parts Manufacturing Authorization from the FAA for its Galileo HDX Low Earth Orbit antenna. The company is in talks with entering in an agreement with Airbus Corporate Jets to deliver high-speed broadband internet to ACJ operators. Additionally, Gogo signed a second three-year preferred supplier agreement with Luxaviation Group to include multi-orbit access.
“We believe the unique multi-orbit, multi-band platform enabled by the Gogo and Satcom Direct merger enables us to meet the needs of each segment of the BA and Military/Government mobility markets,” said Chris Moore, CEO of Gogo.
Gogo also provided financial guidance for 2025. The company projects total revenue in the range of $870m to $910m while expecting adjusted EBITDA in the range of $200m to $220m and free cash flow between $60m and $90m. Capital expenditures are anticipated to be approximately $60m. The company plans to provide longer-term financial targets later in 2025, but preliminary targets for the combined company include 10% revenue growth and mid-20s adjusted EBITDA.
CFO Zac Cotner noted, “In addition to producing synergies ahead of plan, we anticipate an improvement in 2026 Free Cash Flow versus 2025 as significant product and network investments roll off.”
