The following is a summary of the Gogo Inc. (GOGO) Q1 2024 Earnings Call Transcript:
Financial Performance:
Gogo Inc. reported Q1 revenue of $104.3 million, a 6% year-on-year increase.
Service revenue rose by 4% driven by a 19% increase in AVANCE service revenue, while equipment revenue went up 13%.
The company achieved a record free cash flow of $32.1 million, up significantly from $20 million in the same period last year.
Gogo's cash and short-term investments stood at $152.8 million, with an outstanding loan of $605 million. The net leverage remained within the target range of 2.5x to 3.5x.
The company repurchased approximately 480,000 shares for around $4.8 million in Q4 2023 and about 1.1 million shares costing approximately $10.1 million in Q1 2024.
Updated 2024 financial guidance predicts a revenue of $410 million to $425 million, indicating a 5% overall growth.
Business Progress:
Gogo Inc. continues to focus on its next-generation products: Gogo Galileo and Gogo 5G, with projected launch dates in 2024 and 2025 respectively.
Despite a potential delay in the 5G network release, the company expects these investments to increase free cash flow in 2025, within the $150 million to $200 million range.
AVANCE units online grew by 19% year-on-year, reaching 4,110 aircraft, or 58% of the ATG base.
The company has reached halfway in deploying their $50 million share repurchase program, having spent about $25 million so far.
In the face of potential supply chain issues affecting product activations and deactivations, Gogo is strategizing to improve its Average Order Lifecycle and compete with new market entrants like StarLink.
More details: Gogo Inc IR
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