What: Shares of GoGo (NASDAQ:GOGO) were up 12.7% as of 1 p.m. Thursday after the in-flight broadband and entertainment specialist released better-than-expected third-quarter results.

So what: Quarterly revenue rose 22% year over year to $126.4 million, driven primarily by a 31% increase in Service revenue to $107.2 million. That translated to adjusted earnings before interest, taxes, depreciation and amortization (EBTIDA) of $9.7 million, up from $1.2 million in the year-ago period. Meanwhile, Gogo's adjusted net loss widened to $28.9 million, or $0.37 per share, compared with an adjusted net loss in last year's third quarter of $24.9 million, or $0.32 per share.

That might not sound impressive, but analysts were expecting Gogo to report an even larger loss of $0.41 per share on lower revenue of $123.7 million.

"We are extremely pleased with our strong financial performance for the quarter," explained Gogo CEO Michael Small, "and even more pleased with the flight test results of 2Ku, our next generation global connectivity solution, and that portends great things for our future. 

Small went on to describe 2Ku as "the first truly global broadband highway in the sky," thanks to its ability to provide real-time streaming and live TV programming. So far, eight airlines have selected 2Ku since it was first announced last year -- "a pace of adoption that's unprecedented in our industry," Small noted.

Now what: Looking forward, Gogo now anticipates full-year 2015 revenue of $485 million to $505 million, and adjusted EBITDA of $30 million to $35 million. The midpoint of the former range sits well above analysts' estimates for 2015 revenue of $491.5 million.

In the end, keeping in mind Gogo stock was down 10% year to date going into yesterday's close, I think the market is rightly encouraged by this report. But given its widening losses for now, I'm personally content watching Gogo's progress from the sidelines as it continues working toward sustained profitability. 

Steve Symington 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.