TSX runs higher on rate cut expectations
Investing.com -- Gogo Inc . (NASDAQ:GOGO) shares surged 6.6% on Thursday after the business aviation connectivity provider reported second-quarter revenue that exceeded analyst expectations, despite a slight earnings miss.
The company also raised its full-year guidance to the high end of its previously announced ranges.
The aviation broadband provider reported second-quarter revenue of $226 million, surpassing the consensus estimate of $218.75 million and representing a 121% increase YoY.
However, adjusted earnings per share came in at $0.09, one cent below analyst expectations of $0.10. The substantial revenue growth was primarily driven by the company’s acquisition of Satcom Direct, which closed in December 2024.
Service revenue jumped 137% YoY to $194 million, while equipment revenue increased 59% to $32.1 million.
"Our first half results demonstrate the strategic value and well-executed integration of the Satcom Direct-Gogo merger," said Chris Moore, CEO of Gogo.
"We see significant demand for broadband performance improvements in our markets and we’re well positioned to meet that demand as we bring Gogo 5G and Galileo to market this year."
The company reported that AVANCE equipment unit sales in the second quarter were the highest in two years, with 276 units sold, representing a 19% increase compared to the same period last year.
Total (EPA:TTEF) AVANCE ATG aircraft online grew to 4,791, up 14% from the prior year.
Gogo updated its 2025 financial guidance to the high end of its previously announced ranges, now expecting total revenue at the high end of $870-910 million, compared to analyst consensus of $904 million.
The company also projects adjusted EBITDA at the high end of $200-220 million and free cash flow at the high end of $60-90 million.
The company reiterated its fourth-quarter 2025 launch timing for its 5G service, noting that Airspan has successfully completed the first end-to-end 5G call using all commercial equipment and the Gogo 5G aircard.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.