Gogo (GOGO) Increases Long-Term Financial Targets

September 28, 2021 6:31 AM EDT
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Gogo Inc. (NASDAQ: GOGO), the world's largest provider of broadband connectivity services for the business aviation market, today announced that it has increased the long-term financial targets that were originally provided on its fourth quarter 2020 earnings conference call.

The Company will host a conference call with financial analysts at 8:00 a.m. ET on September 30, 2021 to discuss Gogo's strategic plans, its competitive position and the increased forecast.

Revised Long-Term Financial Targets

  • Revenue growth at a compounded annual growth rate of approximately 15% from 2020 to 2025 (versus prior target of at least 10%)
  • Annual Adjusted EBITDA margin rising from 40% in 2021 to 45% in 2025 (versus prior target of 35% - 40%)
  • Free Cash Flow of approximately $125 million in 2023, following the deployment of the Gogo 5G network in 2022, and approximately $200 million in 2025 (versus prior target of more than $100 million in 2023 with significant Free Cash Flow growth thereafter)

"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," said Oakleigh Thorne, Chairman and CEO of Gogo. "That has driven record equipment sales at Gogo and is expected to generate growth in high-margin service revenue through our 2025 planning horizon."

"We recently updated our long-term financial model to reflect the impact of our plans to capitalize on these trends and we look forward to discussing them on our upcoming investor call," Thorne said.

Conference Call & Web CastA live web cast of the conference call and accompanying investor presentation, as well as a replay, will be available online on the Investor Relations section of the company's investor website at http://ir.gogoair.com. Participants can also access the call by dialing +1 (844) 464-3940 (within the United States and Canada) or +1 (765) 507-2646 (international dialers) and entering conference ID number: 1395357.

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