Gogo (NASDAQ: GOGO) reported Q4 EPS of $0.01, $0.33 better than the analyst estimate of ($0.32). Revenue for the quarter came in at $77.63 million versus the consensus estimate of $69.09 million.

Fourth Quarter 2020 Financial Results from Continuing Operations

• Total revenue of $77.6 million decreased approximately 10% from Q4 2019, driven by decreases in both service and equipment revenue caused by the negative impact of COVID-19 on demand for air travel. On a sequential basis, total revenue grew nearly 17%, driven by a 57% increase in equipment revenue and a 7% increase in service revenue.
• Service revenue of $56.9 million decreased approximately 3% from Q4 2019, resulting primarily from a 4% decrease in average monthly connectivity service revenue per ATG aircraft online ("ARPU") that was partially offset by a 2% increase in ATG aircraft online ("AOL"). Service revenue increased 7% sequentially as AOL and ARPU increased 4% and 2%, respectively.
• Equipment revenue of $20.7 million decreased 24% from Q4 2019, due primarily to lower narrowband satellite unit shipments. Equipment revenue increased 57% sequentially, due primarily to an increase in ATG shipments, particularly L5 and L3 products on the AVANCE platform.
• Combined engineering, design and development, sales and marketing and general and administrative expenses increased to $30.4 million from $25.7 million in Q4 2019, due primarily to increases in general and administrative spending and employee bonuses.
• Adjusted EBITDA of $19.3 million decreased from $36.2 million in Q4 2019 and $30.2 million in Q3 2020, due primarily to a $10.1 million full year accrual of employee cash bonus expense.

"Our 2020 performance demonstrates the resiliency of our business in this attractive market as Gogo exited the year with a record number of ATG units online," said Oakleigh Thorne, President and CEO of Gogo.

"We plan to invest in improving the performance of our proprietary ATG network and driving market penetration of our AVANCE platform, positioning us well to introduce valuable add-on services such as Gogo 5G, and other new technologies as they evolve," Thorne said.

"With the sale of the Commercial Aviation division, we have significantly improved Gogo's financial profile and net debt level," said Barry Rowan, Gogo's Executive Vice President and CFO. "We are now well-positioned to execute a comprehensive refinancing to de-lever and reduce our interest expense, drive future growth and increase shareholder value."

For earnings history and earnings-related data on Gogo (GOGO) click here.