Gogo Inc. Reports $444.7 Million Revenue with Acquisition of Satcom Direct

Gogo Inc. reported its financial results for the fiscal year ended December 31, 2024, revealing a total revenue of $444.7 million, a 1.7% increase from $397.6 million in 2023. The growth was primarily driven by a 2.8% rise in service revenue, which reached $327.1 million, while equipment revenue slightly declined by 2.7% to $80.4 million. The company’s net income for the year was $13.7 million, a significant decrease from $145.7 million in the previous year, largely due to increased operating expenses associated with the acquisition of Satcom Direct, which was completed on December 3, 2024.

The acquisition of Satcom Direct for approximately $440.7 million, including $375 million in cash and 5 million shares of Gogo common stock, has positioned Gogo as a leading provider of in-flight connectivity solutions across various aviation sectors. The integration of Satcom Direct is expected to enhance Gogo's service offerings and expand its market reach, particularly in the military and government sectors. The acquisition is anticipated to contribute to revenue growth in 2025, as it will be reflected in a full year of operations.

Operationally, Gogo reported approximately 1,249 activated GEO broadband business aviation customer aircraft and 7,059 line-replaceable units for its ATG broadband services as of December 31, 2024. The company also noted an increase in average monthly connectivity service revenue per ATG aircraft online, which rose to $3,481 from $3,380 in 2023. The total number of customers reached approximately 8,200, with no single customer accounting for more than 10% of total revenue.

Despite the positive revenue growth, Gogo faced challenges with rising costs, particularly in general and administrative expenses, which surged by 71% to $125.1 million due to acquisition-related costs and legal expenses. The company also reported a significant increase in engineering, design, and development expenses, reflecting its commitment to advancing its technology roadmap, including the upcoming launch of Gogo 5G and Gogo Galileo services. Looking ahead, Gogo anticipates continued growth driven by increased demand for in-flight connectivity and the successful integration of Satcom Direct, although it remains cautious about potential economic headwinds and operational challenges.