Shares of inflight internet company Gogo (NASDAQ:GOGO) surged on Monday, rising as much as 20.4%. As of 11:54 a.m. EDT, the stock was up 15.4%.
The stock's gain comes after Gogo announced preliminary first-quarter results, which included adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ahead of management's expectations.
Gogo estimates its first-quarter revenue to be between $197 million and $200 million, down from $232 million in the year-ago quarter. The company's preliminary net loss is between $17 million and $20 million, an improvement from $27.4 million in the year-ago quarter.
Adjusted EBITDA for the period is estimated to be between $35 million and $38 million, up significantly from $11.9 million in the year-ago quarter.
"The combination of better than expected Commercial Aviation service revenue and lower than expected overall operating and satcom costs contributed to our much better than expected preliminary Adjusted EBITDA in the first quarter," said Gogo CEO Oakleigh Thorne in the company's first-quarter earnings release.
Thorne sounded confident about the company's operational progress, noting, "Our focus on cost management and operational execution continues to drive financial momentum."
Gogo is scheduled to announce its official first-quarter results before the market opens on Thursday, May 9.