Gogo Inc Stock Price, News & Analysis

Gogo Inc. (NASDAQ: GOGO) has appointed Gustavo Nader as Chief Strategy Officer and Melissa Hale as Senior Vice President of Product and Marketing, strengthening its leadership team. Nader brings 30 years of telecommunications experience, expected to enhance Gogo’s strategic planning and partnerships. Hale, with a rich aviation background, will align product and marketing efforts. These appointments aim to bolster Gogo's growth trajectory, particularly as it advances its 5G go-to-market strategy and enhances the AVANCE offerings.

Gogo Inc. (GOGO) announced its Q1 2021 financial results, reporting $73.9 million in total revenue, a 4% increase year-over-year. The net loss shrank to $5.9 million from $9.4 million in Q1 2020, with adjusted EBITDA rising 25% to $33.9 million. The company saw a 3% growth in total ATG aircraft online, reaching 5,892, and a notable 42% growth in AVANCE units. With a successful refinancing reducing debt by $385 million, Gogo has raised its 2021 revenue guidance to $310-$325 million.

Gogo (NASDAQ: GOGO) has launched the first unlimited streaming and data plan for business aviation, called Gogo Biz 4G Limitless. Priced at $9,995 per month, it offers comprehensive data services with no overage fees. This new plan addresses the growing demand for predictable billing and enables users to avoid unexpected charges. Additionally, Gogo introduced two new data plans, Gogo Biz 4G 20000 and Gogo Biz 4G 25000, priced at $5,650 and $6,495 per month respectively. These offerings aim to provide enhanced connectivity solutions for business aircraft.

Gogo Inc. (NASDAQ: GOGO) will announce its Q1 2021 financial results on May 6, 2021, prior to market opening. A conference call is scheduled for the same day at 8:30 a.m. ET. The company is recognized as the largest provider of broadband connectivity for the business aviation sector. As of December 31, 2020, Gogo had nearly 1,700 business aircraft using its AVANCE L5 or L3 systems, and 5,778 aircraft equipped with its ATG systems, alongside 4,702 aircraft with satellite connectivity.

Gogo announced the pricing of a 7-year $725 million Term Loan B and a $100 million 5-year revolving credit facility to enhance its financial flexibility. Proceeds will be used to redeem $975 million Senior Secured Notes due 2024, resulting in an expected $70 million annual savings in interest expenses. The refinancing is set to close in late April 2021, subject to documentation. Gogo maintains a stable outlook from Moody's and S&P, holding $464 million cash on hand as of April 20, 2021.

Jet Edge has partnered with Gogo Business Aviation (NASDAQ: GOGO) to upgrade its fleet to the AVANCE L5 connectivity system, enhancing in-flight 4G Wi-Fi capabilities. This long-term collaboration ensures that Jet Edge will be the first private jet charter operator to equip its entire fleet with the AVANCE L5 system by Q3-2021. Over 20 aircraft have already been upgraded, providing passengers with improved streaming services and overall faster internet speeds. The partnership signifies Jet Edge's commitment to delivering a superior private aviation experience.

Gogo Inc. (NASDAQ: GOGO) announced a significant convertible debt exchange and refinancing initiative. GTCR will convert $105.7 million of Gogo's convertible notes into 19.1 million shares, increasing their ownership to 28.6%. This equitization reduces Gogo's total debt to approximately $1.078 billion, down $135 million from 2020. Gogo also plans to refinance $975 million in senior secured notes. CEO Oakleigh Thorne emphasized this strategy will improve financial flexibility and lower interest expenses, positioning Gogo to capitalize on growth opportunities in the business aviation market.

Gogo (NASDAQ: GOGO) reported its Q4 and full-year 2020 financial results amid a recovering business aviation market. Total Q4 revenue was $77.6 million, a 17% sequential increase but down 10% year-over-year, driven by COVID-19 impacts. The net loss was $16.1 million, with Adjusted EBITDA at $19.3 million. Cash reserves stood at $435.3 million. Full-year revenue decreased 13% to $269.7 million. For 2021, Gogo anticipates revenue between $300 million and $320 million and aims for a 10% CAGR from 2020 to 2025, alongside improving financial metrics.

Gogo Inc. (NASDAQ: GOGO) will report its fourth quarter 2020 financial results on March 11, 2021, before market opens. A conference call for analysts will follow at 8:30 a.m. ET. Gogo is a leading provider of network and broadband connectivity for business aviation, with over 1,700 aircraft utilizing its AVANCE systems and 5,577 aircraft equipped with air-to-ground systems as of September 30, 2020. Investors can access the call via phone or at their Investor Relations website.