Gogo Inc. (GOGO) saw a decline of 5.54% in the premarket after it announces a new membership program of SmartShield. However, the last trading session closed at $17.15 with an incline of 1.9%.
New Membership Program by GOGO
On 5th October 2021, GOGO announced the launch of a new membership program. SmartShield allows current Gogo inflight connectivity system customers with an AVANCE or a traditional ATG system to take advantage of special safeguards and advantages for their system.
The value of SmartShield is considerable and reflects the company’s dedication to clients. The customers wanted to protect their inflight connectivity investment, and SmartShield gives them that protection for as long as they are enrolled in the program. In short, SmartShield offers three separate and complete advantages for $5,000 per year plus a three-year service commitment: control, protection, and savings.
GOGO increases long term financial targets
On 28th September 2021, GOGO stated the long-term financial objectives. Firstly, from 2020 to 2025, revenue will rise at a compound annual growth rate of over 15%. Secondly, the annual adjusted EBITDA margin will increase from 40% in 2021 to 45 percent in 2025. Thirdly, the Free Cash Flow in 2023 will be roughly $125 million and $200 million in 2025.
Post-Merger Public Company Board of Directors
On 16th August 2021, GOGO announced a post-merger public company board of directors. The company announced its proposed public company Board of Directors. The Board of Directors, led by David Donnini, is made up of nine members who have decades of expertise in a variety of industries, including technology and e-commerce.
Second Quarter 2021 Financial Results
GOGO reported second-quarter 2021 financial results on 5th August 2021. Firstly, total revenue was $82.4 million, 51% more than Q2 2020, and 12% from Q1 2021. This owed to substantial growth in both service and equipment sales. Secondly, Service revenue rose by more than 18% compared to Q2 2019, 47% compared to Q2 2020 reaching a new high of $64.8 million.
Thirdly, revenue from equipment rose by 7% in Q2 2019, 66 percent in Q2 2020, and 21% in Q1 2021, to $17.6 million. There was $109.2 million in cash and cash equivalents. Lastly, free cash flow was $7.8 million, compared to a $6.3 million loss the previous year.
