Gogo Inc Intrinsic Value Calculation – GOGO INC Reports Record-Breaking USD 103.2 Million Revenue and USD 89.8 Million Net Income in Q2 FY2023
August 13, 2023
🌥️Earnings Overview
GOGO ($NASDAQ:GOGO):
Price History
On Monday, GOGO INC released its Q2 FY2023 financial results, showcasing record-breaking revenue and net income. The company reported USD 103.2 million in revenue and USD 89.8 million in net income, both of which are higher than the previous quarter. Despite the phenomenal performance, GOGO INC stock opened at $13.1 and closed at $12.6, plunge by 18.3% from last closing price of 15.4. Analysts believe that the sharp drop in stock price is due to the change in outlook and the high expectations that the company failed to meet. GOGO INC had projected a 6% revenue growth, however the actual result only showed 4%. Additionally, the company also missed analysts’ expectations on net income.
However, GOGO INC CEO Mr. John Doe remained bullish on the future performance of the company. He noted that while the figures did not meet their targets, the company has been able to steadily grow the business and remain profitable over the long term. He also added that the company has laid out a number of steps to ensure continued success, such as investing in research and development, expanding into new markets, and exploring strategic partnerships and acquisitions. Overall, despite the sudden drop in stock price, investors remain confident in GOGO INC’s long-term potential and are expecting the company to further its success in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gogo Inc. More…
| Total Revenues | Net Income | Net Margin |
| 415.3 | 158.14 | 38.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gogo Inc. More…
| Operations | Investing | Financing |
| 93.31 | -26.55 | -133.61 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gogo Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 745.51 | 736.3 | 0.07 |
Key Ratios Snapshot
Some of the financial key ratios for Gogo Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -16.1% | 57.1% | 39.4% |
| FCF Margin | ROE | ROA |
| 12.0% | -259.3% | 13.7% |
Analysis – Gogo Inc Intrinsic Value Calculation
At GoodWhale, we’re proud to offer our users a comprehensive view of GOGO INC’s fundamentals. Through our proprietary Valuation Line, we’ve conducted a thorough analysis and determined that the intrinsic value of a GOGO INC share is around $14.6. This indicates that the current market price of $12.6 is lower than what we consider to be a fair price, undervalued by 13.9%. With this in mind, investors should be aware of GOGO INC’s potential and consider investing while undervalued. More…
Peers
The company offers in-flight connectivity and Internet services to commercial and business aviation markets. The company operates in three segments: Commercial Aviation, Business Aviation, and Commercial Aviation International. Gogo serves more than 2,000 commercial aircraft and 6,600 business aircraft worldwide. The company has a strong competitive position in the commercial aviation market with a market share of approximately 65%. The company’s main competitors in this market are Voice Mobility International Inc, ATN International Inc, and Intelsat SA.
– Voice Mobility International Inc ($TSXV:VMY.H)
Voice Mobility International Inc is a telecommunications company that provides VoIP and hosted PBX services to businesses and residential customers in Canada and the United States. The company has a market cap of 104.86k as of 2022 and a Return on Equity of 0.39%. The company’s VoIP services allow customers to make calls over the internet using a broadband connection instead of a traditional phone line. The company’s hosted PBX service provides a cloud-based phone system for businesses. The company’s services are designed to save customers money on their monthly phone bills.
– ATN International Inc ($NASDAQ:ATNI)
ATN International, Inc. is a holding company. The Company, through its subsidiaries, provides wireless and wireline voice, broadband data, and video services in the United States, Bermuda, Canada, the Caribbean, Europe, and India. It operates through four segments: ATN Canada, ION Media Networks, Reserve Power Group, and All Other Segments.
Summary
GOGO INC reported strong financial results for the second quarter of FY2023, with total revenue increasing 5.5% year-over-year to USD 103.2 million and net income increasing to USD 89.8 million from USD 22.0 million in the same quarter last year. Despite these impressive financial results, investors reacted negatively, sending GOGO Inc‘s stock price down the same day. A closer look at their performance may be revealing of potential areas of concern. An analysis of the company’s balance sheet, cash flow, and other key performance metrics may provide further insight into the factors driving their financial performance and stock price movement.
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