Decrease in Gogo's Q3 revenue, with a rise in Q4 earnings reported

Gogo, leaders in business aviation connectivity, disclosed their full-year and Q4 earnings, highlighting a total revenue of $97.8 million for the fourth quarter alone.

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2025 September 19 . 10:39 AM

2 min read

Decreased overall FY revenue for Gogo, with an uptick in Q4 figures

Decrease in Gogo's Q3 revenue, with a rise in Q4 earnings reported

In a recent financial update, Gogo Inc. reported a strong Q4 2023 performance with service revenue reaching $80.9 million, marking a 5% increase from the previous year. The company also announced a significant repurchase of approximately 480,000 shares for a total cost of approximately $4.8 million in Q4 2023.

Gogo's strategic investments are expected to decline significantly after 2024, allowing for further flexibility in returning capital to shareholders. This move is part of the company's long-term financial targets, which include revenue growth at a compound annual growth rate of approximately 15-17 percent from 2023 through 2028.

The company's EVP/CFO, Jessi Betjemann, reiterated a $150 million to $200 million Free Cash Flow target in 2025 and a long-term revenue growth of approximately 15-17% from 2023-2028. These targets were previously mentioned.

Capital expenditures for Q4 2023 amounted to approximately $45 million, with $25 million allocated for strategic initiatives.

Looking ahead, Gogo Inc. is planning the introduction of Gogo Galileo and Gogo 5G in 2024. These launches are anticipated to provide significant improvements in network speeds and increase the global total addressable market. The company continues to expect that Gogo Galileo will contribute revenue beginning in 2025.

The LTE replacement program will drive conversion of Gogo's Classic product customers to the AVANCE platform, providing easy upgrade pathways to 5G and Galileo in the future.

Gogo Chairman and CEO, Oakleigh Thorne, expressed his confidence in these upcoming launches, stating that they will be crucial in expanding the company's offerings and reaching new markets.

In January 2023, Gogo repurchased approximately 566,000 shares for a total cost of approximately $5.2 million.

The guidance for 2024 suggests total revenue in the range of $410 million to $425 million. Free Cash Flow in 2024 is expected to be in the range of $20 million to $40 million.

Despite the expected decline in strategic investments after 2024, Gogo remains committed to its long-term growth and innovation strategies, positioning the company for continued success in the future.