Gogo Stock Gains As Q2 Revenue Beats Consensus, Raises FY21 Outlook, More Awaits Pending 5G Launch

Gogo Inc GOGO reported second-quarter FY21 revenue growth of 51% year-on-year to $82.4 million, beating the analyst consensus of $75.14 million.
Service revenue grew 47% Y/Y to $64.8 million. Equipment revenue rose 66% Y/Y to $17.6 million.
Total ATG aircraft online (AOL) increased 12% Y/Y to 6,036.
The average monthly service revenue per ATG aircraft online (ARPU) was $3,296.
Total AVANCE units online grew 51% Y/Y to 2,067.
Service revenue gross margin declined 34 bps to 76.6%. Equipment revenue gross margin expanded 379 bps to 37.9%.
Adjusted EBITDA increased 70% Y/Y to $36.7 million. The margin expanded by 500 bps to 44.6%.
Loss per share of $(0.63), of which $(0.73) is related to the loss on extinguishment of debt and settlement of convertible notes.
It held $109.2 million in cash and equivalents. The company generated $7.8 million in free cash flow during the six months ended Jun. 30.
Accelerating business aviation demand and AVANCE platform drove Gogo's record results, CEO Oakleigh Thorne said.
It aims to further enhance the performance of AVANCE upon the Gogo 5G network launch in 2022.
Outlook: Gogo raised the FY21 revenue guidance to $325 million - $335 million (prior $310 million - $325 million), versus the consensus of $318.6 million.
The company increased the adjusted EBITDA outlook to at least $130 million (prior $115 million - $125 million).
Gogo sees capital expenditures of $20 million - $25 million (prior $25 million - $30 million). It sees free cash flow of $25 million - $35 million (previous $10 million - $20 million).
Price action: GOGO shares traded higher by 15.2% at $11.98 on the last check Thursday.

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