Gogo Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a modest increase in total revenue but a significant decline in profitability compared to the previous year. Total revenue for the three months ended September 30, 2024, was $100.5 million, a 2.6% increase from $97.9 million in the same period of 2023. For the nine months, total revenue rose 2.4% to $306.9 million from $299.8 million year-over-year. Service revenue also saw growth, with $81.9 million for the third quarter, up 2.9% from $79.5 million, and $245.5 million for the nine months, a 3.5% increase from $237.1 million.
Despite the revenue growth, Gogo's operating income for the third quarter fell to $19.1 million from $33.3 million in the prior year, while net income dropped sharply to $10.6 million from $20.9 million. For the nine-month period, net income was $42.0 million, down from $131.2 million in 2023. The decline in profitability was attributed to a significant increase in total operating expenses, which rose to $81.5 million for the third quarter, compared to $64.6 million in the same period last year. Notably, general and administrative expenses surged by 87% to $24.9 million.
Gogo's cash position improved, with cash and cash equivalents increasing to $176.7 million as of September 30, 2024, from $86.2 million a year earlier. The company reported net cash provided by operating activities of $79.7 million for the nine months, up from $52.8 million in the prior year.
Strategically, Gogo is advancing its technology offerings, with the upcoming launch of Gogo 5G expected in late Q2 2025 and the introduction of Gogo Galileo, a global broadband service for business aircraft, targeted for Q4 2024. The company is also in the process of acquiring Satcom Direct Holdings, Inc. for $375 million, which includes cash and stock components, with the transaction expected to close in Q4 2024, subject to regulatory approvals.
The company has faced challenges, including a delay in the Gogo 5G launch due to design issues, which may impact its competitive position. Additionally, Gogo's ongoing legal proceedings, including a patent infringement lawsuit from SmartSky Networks, could pose risks to its financial condition.
About Gogo Inc.
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