Gogo, Inc. Beats Q1 Earnings Estimates; Shares Rise

In-flight Internet service provider Gogo reported better Q1 numbers than expected. The resulting share price jump softens recent fears about new competition somewhat.

May 12, 2014 at 10:12AM
Gogo Logo

Source: Gogo.

Gogo (NASDAQ:GOGO)  reported results for the first quarter of 2014 this morning. The company beat analyst targets across the board, and shares jumped as much as 12% higher on the news.

The in-flight Internet service specialist saw first-quarter revenue rise 35% year-over-year to $96 million. Equipment sales led the way with a 48% jump. An equally rapid rise in operating costs led to a net loss of $0.20 per share, slightly worse than the $0.17 non-GAAP loss per share reported in the year-ago period.

The numbers beat analyst estimates on both the top and bottom lines.

The number of aircraft with Gogo services installed increased by 9.5% year-over-year, while revenues per aircraft jumped 19% higher. The company said it ended the quarter with 2,056 aircraft online, up from 1,878 at the end of March last year. 6.9% of passengers exposed to a Gogo connection paid for the service this quarter, up from 6.2% a year ago.

Looking ahead, Gogo held its full-year guidance unchanged. The $400 million to $422 million revenue guidance range is broadly in line with analyst estimates.

"We expect continued strong growth in revenue fueled by strong secular trends and passenger adoption of new services," said Gogo CEO Michael Small in a prepared statement. New services include a recently unveiled Ku-band satellite uplink and the rollout of fourth-generation air-to-ground technologies.

This morning's price surge notwithstanding, Gogo shares have lost half of their value year-to-date, as investors reacted to new competition entering the in-flight connectivity market. Gogo's management doesn't seem overly worried about rivals, though. "Our technology leadership, operational expertise, and suite of communications solutions continue to set us apart both in North America and internationally," Small said.

Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers