Gogo by the numbers: Scaling airline Internet

Summary:If you've traveled chances are you've used Gogo. Here's a look at how in-flight connectivity is scaling in North America and now globally.

Gogo, the in-flight connectivity company, plans to scale its hybrid ground-to-orbit technology, expand internationally and deliver more revenue per aircraft in 2014.

The 2014 outlook, which calls for revenue of $400 million to $422 million, highlights how Gogo is gaining traction beyond the U.S. and venturing into faster broadband service that will allow for streaming video. The lack of streaming via Gogo on a flight can be an annoyance for travelers.

For the fourth quarter, Gogo reported a net loss of $22 million, or 26 cents a share, on revenue of $92.55 million. For 2013, Gogo reported a net loss of $145.85 million, or $3.05 a share, on revenue of $328.12 million.

Clearly, Gogo is in buildout mode. At some point, Gogo will have most airlines cover, have a locked-in customer base and be able to collect service revenue for a long time. For now, Gogo needs to expand.

gogobynumbers

 

Here's a look at the company by the numbers:

  • $3 million to $5 million: Revenue Gogo expects in 2014 from international flights from carriers like Japan Airlines and Delta.
  • 46 percent: Revenue growth in fourth quarter compared to a year ago.
  • 2,032: Commercial aircraft online with Gogo in 2013.
  • 6.9 percent: Take rate of Gogo service a month per aircraft.
  • $8,970: Average monthly service revenue per aircraft online.
  • $10.29: Average revenue per Internet session.
  • 79 percent: Gogo market share in North America.
  • 332: Awards for international aircraft so far.
  • 63 percent: Market share for business aircraft (private planes) in North America.
  • 36,000: Commercial aircraft forecasted for 2032.
  • $101,000: Annualized average revenue per aircraft in 2013.
  • $50 million: Sum spend on engineering, design and development in 2013.
  • $104 million: Sum spent on capital expenditures in 2013.
  • 70 Mbps: Speeds possible with Gogo's ground-to-orbit network launching in 2014.
  • 50 Mbps: Speeds possible for global services Gogo plans to launch in 2015.

Topics: Networking

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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