Gogo sees lower FY23 revenue view to $410M-$420M from $440M-$455M

Consensus is for FY23 $439.01M. This FY23 guidance includes the impact of the Federal Communications Commission’s Secure and Trusted Communications Networks Reimbursement Program. Sees FY23 Adjusted EBITDA $150M-$160M with no change from prior guidance, reflecting operating expenses of approximately $20M for strategic and operational initiatives including Gogo 5G and Gogo Galileo and $10M for costs incurred offset by an expected benefit for the same value of reimbursement accrual related to the FCC Program. Sees FY23 Free Cash Flow $60M-$70M versus prior guidance of $80M-$90M due to the impact of the FCC Program including increased inventory purchases and expected lag of FCC reimbursements. Capital expenditures at the low end of the previously provided range of $30M-$40M including $12M for the Gogo 5G program and $3M related to the FCC Program.