Gogo Inc (NASDAQ:GOGO) Posts 48% Jump In Q3 Revenue

Posted by Nathan Alexander November 12, 2013 0 Comment 799 views

Gogo Inc (NASDAQ:GOGO) has reported its third quarter 2013 results. The provider of in-flight connectivity solutions has witnessed a 48% jump in its third quarter revenue year over year, reaching to $85.4 million, compared with $57.8 million for same quarter of 2012. According to the company, the revenue growth was driven by a 52% increase in service revenue.

Net loss attributable to common stock fell to $18.7 million for the third quarter, compared with a net loss of $29.0 million for the comparable period a year ago. The company announced that adjusted EBITDA rose by a whopping 251% year over year to $2.0 million.

Gogo Inc (NASDAQ:GOGO)’s commercial aviation revenue from North America jumped 53% yoy to $50.6 million, compared with $33.1 million reported a year ago. The increase was primarily due to a 52% increase in service revenue driven by a 21% rise in the connectivity take rate, a 15% jump in gross passenger opportunity, and an 8% increase in average revenue per session.

On the other hand, revenues from business aviation increased 42% to $34.8 million. Aircraft online included 2,011 CA-NA aircraft, increasing 24% yoy and 1,847 business aviation aircraft, which rose 41% yoy.

The company said it expects to generate service revenue from Delta Air Lines international aircraft and Japan Airlines domestic aircraft next year.

“We had a great third quarter, evidenced by strong financial results and new technology and product announcements. This, combined with our recently announced partnership with Japan Airlines, further solidifies our leadership position in the global in-flight connectivity industry,” said Gogo’s President and CEO, Michael Small. “We believe that the unique combination of our industry leading scale, technological prowess, and track record of execution ideally positions Gogo for long-term growth in North America and internationally.”

Given the strong quarter, the company forecasts to surpass previously issued guidance for 2013 and, and is thus raising the full-year guidance. Gogo Inc (NASDAQ:GOGO) expects the total revenue to be $325 million, up from previously announced $315 million. For CA-NA, the high end of revenue guidance is increased to $198 million from $193 million and for BA, it has been increased from $120 million to $125 million. However, the company didn’t change the revenue guidance for its CA-ROW division, which is still $2 million. The adjusted EBITDA is increased to $10 million, up from zero, while the company expects to have a cash capex to be below $115 million.

At the same time, rival JetBlue Airways Corporation (NASDAQ:JBLU) is also performing well as many analysts have upgraded JetBlue’s stock rating. Imperial Capital has even raised the price rating from $9.00 to $10.00. And, Zacks upgraded the JetBlue Airways’ rating from a “neutral” to an “outperform”.

About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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