gogo inc at mid-year

Download Gogo Inc at Mid-Year

Post on 29-Jan-2015



Economy & Finance

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The most important thing long-term investors need to know about Gogo's year so far, and what's to come.


  • 1. 3 Things You Need to Know

2. Why Gogo Should Worry AT&T already has a network of installed towers to compete on domestic flights. AT&T has almost $4 billion cash on-hand and is profitable, while Gogo has just $200 million, and has yet to turn a profit. Though AT&T could undercut on price for domestic flights, Gogo is the first-mover and already has relationships with airlines. AT&T doesnt have the satellite network Gogo does for trans-oceanic flights. Why Gogo Still Has an Edge 3. Revenue per Aircraft Long-term contracts being signed are important, but only if revenue increases on planes. Last quarter, the average commercial plane brought in $9,200 in service revenue. Continued growth above 15% would be a very positive sign. Gogos desire to tap into the international markets is key, as it will help build a moat against deep- pocketed competitors. Listen to conference calls for any details on international connectivity and the popularity of the offering with passengers. Intl Expansion 4. Planes arent the only machines connecting to the Internet. In fact, wearable computing could be the next huge growth industry. To find out about one small company that could be the big winner, check out our special free report: Leaked: Apples Next Smart Device