2023-08-07 07:08:57 ET
- Gogo press release ( NASDAQ: GOGO ): Q2 GAAP EPS of $0.67 beats by $0.53 .
- Revenue of $103.2M (+5.5% Y/Y) in-line.
- Adjusted EBITDA of $44.1 million, which includes approximately $2.5 million of operating expenses related to Gogo Galileo, increased 7% compared to Q2 2022 and 11% compared to Q1 2023.
- Cash provided by operating activities of $15.6 million in Q2 2023 decreased from $26.4 million in the prior year period.
- Free Cash Flow was $13.3 million in Q2 2023 a decrease from $15.5 million in the prior-year period.
- Cash, cash equivalents and short-term investments totaled $97.2 million as of June 30, 2023 compared to $188.0 million as of March 31, 2023.
- 2023 Financial Guidance and Long-Term Financial Targets:
- Total revenue in the range of $410 million to $420 million versus prior guidance in the range of $440 million to $455 million vs. consensus of $438.98M.
- Adjusted EBITDA of $150 million to $160 million (no change from prior guidance) reflecting operating expenses of approximately $20 million for strategic and operational initiatives including Gogo 5G and Gogo Galileo and $10 million for costs incurred offset by an expected benefit for the same value of reimbursement accrual related to the FCC Program.
- Free Cash Flow of $60 million to $70 million versus prior guidance of $80 million to $90 million due to the impact of the FCC Program including increased inventory purchases and expected lag of FCC reimbursements.
- Capital expenditures at the low end of the previously provided range of $30 million to $40 million including $12 million for the Gogo 5G program and $3 million related to the FCC Program.
- The Company provides the following long-term financial targets: Revenue growth at a compound annual growth rate of approximately 15%-17% from 2022 through 2027 versus the prior target of approximately 17%. The Company continues to expect that Gogo Galileo will contribute revenue beginning in 2025.
- Annual Adjusted EBITDA Margin in the mid-40% range by 2027 (no change from prior long-term target).
- Free Cash Flow in the range of $150 million to $200 million in 2025, without the effect of the FCC program, and growing thereafter. The FCC Program is expected to positively impact Free Cash Flow in 2025. This compares to the prior target of more than $200 million, excluding the effect of the FCC Program, and growing thereafter.
For further details see:
Gogo reports Q2 earnings; narrows FY23 revenue outlook