Gogo Raises Long-Term Targets; Sees Revenue Growth At Compounded Annual Growth Rate Of Approx. 15%

(RTTNews) - Gogo Inc. (GOGO) said the growth in private air travel has driven record equipment sales at the company and is expected to generate growth in high-margin service revenue through its 2025 planning horizon. The company updated its long-term financial model to reflect the impact of its plans to capitalize on these trends.

Gogo now projects revenue growth at a compounded annual growth rate of approximately 15% from 2020 to 2025, revised from prior target of at least 10%. Annual adjusted EBITDA margin is anticipated to rise from 40% in 2021 to 45% in 2025. Free cash flow is projected to be approximately $125 million in 2023, and approximately $200 million in 2025.

Shares of Gogo Inc. were up 11% in pre-market trade on Tuesday.