Gogo (NASDAQ:GOGO) reported Q4 EPS of $0.21, $0.05 better than the analyst estimate of $0.16. Revenue for the quarter came in at $108.2 million versus the consensus estimate of $105.72 million.
GUIDANCE:
Gogo sees FY2023 revenue of $440-455 million, versus the consensus of $449.4 million.
- Adjusted EBITDA(1) of $150 million to $160 million, reflecting operating expenses of approximately $30 million for strategic and operational initiatives including Gogo 5G and Global Broadband.
- Free Cash Flow(1) of $80 million to $90 million. Free Cash Flow includes capital expenditures of approximately $30 million to $40 million, of which $20 million is tied to Gogo 5G.
The Company provides the following long-term financial targets:
- Revenue growth at a compound annual growth rate of approximately 17% from 2022 through 2027, with Global Broadband contributing to revenue beginning in 2025.
- Annual Adjusted EBITDA Margin(1) in the mid-40% range by 2027.
- Free Cash Flow(1) of more than $200 million beginning in 2025 and growing thereafter, consistent with the prior target.