Gogo sees FY23 revenue $440M-$455M, consensus $443.87M

Sees FY23 adjusted EBITDA of $150M-$160M, reflecting operating expenses of approximately $30M for strategic and operational initiatives including Gogo 5G and Global Broadband; Free Cash Flow of $80M-$90M. Free Cash Flow includes capital expenditures of approximately $30M-$40M, of which $20M is tied to Gogo 5G. The Company reiterates the following long-term financial targets: revenue growth at a compound annual growth rate of approximately 17% from 2022 through 2027, with Global Broadband contributing to revenue beginning in 2025; Annual Adjusted EBITDA Margin in the mid-40% range by 2027; Free Cash Flow of more than $200M beginning in 2025 and growing thereafter. "Gogo reiterates its 2023 guidance and anticipates approximately 50% year-over-year growth in Free Cash Flow while incurring $30M in 5G and GBB investments and other operational initiatives," said Jessi Betjemann, Executive Vice President and CFO. "Our $100M debt paydown will reduce cash interest by approximately $8.5M on an annualized basis and we reiterate our target for over $200 million in Free Cash Flow in 2025."