Brief Overview on Company’s Performance: Gogo Inc (NASDAQ: GOGO)

On Wednesday, Shares of Gogo Inc (NASDAQ: GOGO) lost -1.03% to $4.80. The stock opened its trade at $4.85 and after floating in a price range of $4.75 to $4.86; the stock grabbed the investor’s attention and traded 404.79K shares as compared to its average daily volume of 1.72M shares. The stock’s institutional ownership stands at 78.20%.

Gogo (GOGO), the leading global provider of broadband connectivity products and services for aviation, recently declared its financial results for the quarter ended March 31, 2018.

First Quarter 2018 Consolidated Financial Results

  • Consolidated revenue increased to $231.80M, up 40% from Q1 2017. Service revenue increased to $150.70M, up 3% from Q1 2017. Equipment revenue increased to $81.10M, up 329% from Q1 2017.
  • Q1 2018 financial results reflect the adoption of the new revenue recognition standard, ASC 606, and the transition of one of our airline partners to the airline-directed model, which resulted in the recognition of $45.40M of incremental equipment revenue and $19.30M of incremental net income.
  • Excluding the $45.40M accounting impact of incremental equipment revenue, consolidated revenue increased to $186.40M, up 13% from Q1 2017, and equipment revenue increased to $35.70M, up 89% from Q1 2017.
  • Net loss reduced to $27.40M, down 34% from Q1 2017, mainly because of the $19.30M accounting impact of incremental net income. Adjusted EBITDA, which excludes the accounting impact of the incremental net income, increased to $11.90M, up 11% from Q1 2017.
  • Capital expenditures reduced to $62.70M from $71.60M in Q1 2017 and Cash CAPEX reduced to $56.80M from $58.70M in Q1 2017.
  • Cash, cash equivalents and short-term investments were $299.70M as of March 31, 2018.

GOGO has a market value of $402.19M while its EPS was booked as $-1.90 in the last 12 months. The stock has 83.79M shares outstanding. In the profitability analysis, the company has gross profit margin of 50.70% while net profit margin was -20.60%. Beta value of the company was 1.28; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.90.

Steve Backshall

Steve Backshall

I am Steve Backshall and I give an insight into the most recent news hitting the Technology Sector in Wall Street. I have been an independent financial adviser for over 10 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicizes valuable information for shareholder community. I am an accomplished journalist who has a passion for travel. My desire to see the world has taken me to countries around the world and given me the opportunity to report for some of the top news organizations.

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