Gogo 1Q Loss Widens Despite Revenue Increase of 23%, Backs Full Year Forecast

Gogo Inc.

reported a wider net loss of $24.11 million or a loss of $0.31 a share in the first quarter. In comparison, the company suffered a net loss of $20.09 million or a loss of $0.24 a share in the preceding year quarter. However, the loss was smaller than the Street analysts' expectations of $0.41 loss a share. The company's top line advanced 23% to $141.7 million from $115.5 million in the previous year quarter driven by service revenue that grew 24% YOY to $118.7 million. This was better the analysts' predictions of $137.58 million. Gogo's President and CEO, Michael Small, reacted to the results and said, "We are thrilled to announce 2Ku awards by Delta Air Lines and International Airlines Group, including British Airways, Iberia, and Aer Lingus, bringing our total 2Ku awards to over 1,000. We also are excited by the commercial launch of 2Ku on AeroMexico. Based on airline demand, we are accelerating 2Ku deployment and expect to exceed our 2016 target of 75 installs." Looking ahead, the company said that its outlook for the full year 2016 remained unchanged. Accordingly, the company expects $575 - $595 million revenue for the same period. Street predicts the company to deliver revenue of $585.96 million. On Thursday, the stock gained 1.48%.