Business
Gogo Announces Fourth Quarter and Full-Year 2020 Financial Results
Provides 2021 Guidance and Long-Term Targets CHICAGO, March 11, 2021 /PRNewswire/ -- Gogo (NASDAQ: GOGO), the world's largest provider of broadband
About this update from Gogo Inc.
[{"type":"text","content":"Provides 2021 Guidance and Long-Term Targets\n\n\nCHICAGO, March 11, 2021 /PRNewswire/ -- Gogo (NASDAQ: GOGO), the world's largest provider of broadband connectivity services for the business aviation market, today announced its financial results for the quarter and fiscal year ended December 31, 2020.\nQ4 2020 Highlights of Continuing Operations\nTotal revenue of $77.6 million, a 17% sequential improvement, reflecting continuing recovery in the business aviation industry Net loss of $16.1 million and Adjusted EBITDA(1) of $19.3 million, each of which includes a $10.1 million full year accrual of employee bonus expense ATG aircraft online grew nearly 4% sequentially from 5,577 to 5,778, surpassing the pre-COVID-19 quarterly peak Average monthly connectivity service revenue per ATG aircraft online increased more than 2% sequentially from $2,996 to $3,069 Cash and cash equivalents were $435.3 million as of December 31, 2020 and $465.3 million as of March 9, 2021. This reflects a $19.1 million repayment of the ABL facility during the fourth quarter.On December 1, 2020, Gogo completed the sale of its Commercial Aviation (\"CA\") division to a subsidiary of Intelsat S.A. for $400 million in cash subject to certain adjustments. The financial results of the CA division are presented as discontinued operations for the fourth quarter of 2020 and all prior periods.\nFourth Quarter 2020 Financial Results from Continuing Operations\nTotal 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, partic...