Why Are Gogo Shares Trading Higher Today?

Broadband connectivity services provider Gogo Inc GOGO raised the long-term financial targets announced during Q4 2020 earnings.
Gogo now sees a 15% compounded annual revenue growth, up from the previous 10%.
It sees the Annual Adjusted EBITDA margin rising from 40% in 2021 to 45% in 2025 against the previous target of 35% - 40%.
Gogo sees Free Cash Flow of $125 million in 2023, following the deployment of the Gogo 5G network in 2022, and $200 million in 2025 against the initial target of over $100 million in 2023 with significant FCF growth after that.
Growth in private air travel continues to expand, fueling what we expect will be sustained growth in demand for inflight connectivity as customers seek to replicate their home and office connectivity in the air," Chairman and CEO Oakleigh Thorne said. "That has driven record equipment sales at Gogo and is expected to generate growth in high-margin service revenue through our 2025 planning horizon."
Price Action: GOGO shares traded higher by 6.46% at $13.01 in the premarket session on the last check Tuesday.