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Gogo (GOGO) Gross Margin % : 65.41% (As of Jun. 2024)


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What is Gogo Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Gogo's Gross Profit for the three months ended in Jun. 2024 was $66.8 Mil. Gogo's Revenue for the three months ended in Jun. 2024 was $102.1 Mil. Therefore, Gogo's Gross Margin % for the quarter that ended in Jun. 2024 was 65.41%.


The historical rank and industry rank for Gogo's Gross Margin % or its related term are showing as below:

GOGO' s Gross Margin % Range Over the Past 10 Years
Min: 48.02   Med: 66.47   Max: 69.61
Current: 67.02


During the past 13 years, the highest Gross Margin % of Gogo was 69.61%. The lowest was 48.02%. And the median was 66.47%.

GOGO's Gross Margin % is ranked better than
75.14% of 346 companies
in the Telecommunication Services industry
Industry Median: 50.115 vs GOGO: 67.02

Gogo had a gross margin of 65.41% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Gogo was -0.70% per year.


Gogo Gross Margin % Historical Data

The historical data trend for Gogo's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Gogo Gross Margin % Chart

Gogo Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 69.61 68.72 69.56 66.37 66.56

Gogo Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 66.72 68.93 66.02 67.74 65.41

Competitive Comparison of Gogo's Gross Margin %

For the Telecom Services subindustry, Gogo's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Gogo's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Gogo's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Gogo's Gross Margin % falls into.



Gogo Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Gogo's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=264.6 / 397.577
=(Revenue - Cost of Goods Sold) / Revenue
=(397.577 - 132.951) / 397.577
=66.56 %

Gogo's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=66.8 / 102.059
=(Revenue - Cost of Goods Sold) / Revenue
=(102.059 - 35.303) / 102.059
=65.41 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Gogo  (NAS:GOGO) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Gogo had a gross margin of 65.41% for the quarter that ended in Jun. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Gogo Gross Margin % Related Terms

Thank you for viewing the detailed overview of Gogo's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Gogo Business Description

Traded in Other Exchanges
Address
105 Edgeview Drive, Suite 300, Broomfield, CO, USA, 80021
Gogo Inc is a broadband connectivity service for the business aviation market. It provides a customizable suite of smart cabin systems for integrated connectivity, inflight entertainment, and voice solutions. Its business segment includes Business Aviation. It generates two types of revenue: service revenue consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight entertainment services. and equipment revenue consists of proceeds from the sale of ATG and narrowband satellite connectivity equipment and is recognized when control of the equipment is transferred to OEMs and dealers, which generally occurs when the equipment is shipped.
Executives
Charles C Townsend director 1250 N ARLINGTON HEIGHTS RD, STE 500, ITASCA IL 60143
Harris N Williams director 1250 N ARLINGTON HEIGHTS RD, STE 500, ITASCA IL 60143
Karen Jackson officer: SVP, Human Resources 1250 N. ARLINGTON HEIGHTS ROAD, STE 500, ITASCA IL 60143
Crystal L Gordon officer: EVP, Gen Counsel and Secy 945 BUNKER HILL, SUITE 650, HOUSTON TX 77024
Michael Abad-santos director C/O GOGO INC., 105 EDGEVIEW DR., SUITE 300, BROOMFIELD CO 80021
Leigh Goldfine officer: VP, Controller and CAO C/O GOGO INC., 105 EDGEVIEW DR., SUITE 300, BROOMFIELD CO 80021
Jessica Betjemann officer: SVP, Finance, Treasurer & CAO C/O GOGO INC., 111 N. CANAL ST, SUITE 1400, CHICAGO IL 60606
Marguerite M Elias officer: Exec VP, Gen Counsel and Sec 1250 N ARLINGTON HEIGHTS RD, STE 500, ITASCA IL 60143
Michael P. Bayer officer: SVP, Controller & CAO 1250 N. ARLINGTON HEIGHTS ROAD, STE 500, ITASCA IL 60143
Robert L Crandall director C/O AMR CORP/AMERICAN AIRLINES INC, 5215 NORTH O'CONNOR BLVD, IRVING TX 75039
Silver (xii) Holdings, Llc director, 10 percent owner 300 NORTH LASALLE STREET, SUITE 5600, CHICAGO IL 60654
Mark M. Anderson director 300 NORTH LASALLE STREET, SUITE 5600, CHICAGO IL 60654
Mudrick Distressed Opportunity Specialty Fund, L.p. 10 percent owner 527 MADISON AVENUE, 6TH FLOOR, NEW YORK NY 10022
Mudrick Distressed Opportunity Fund Global, Lp 10 percent owner 527 MADISON AVENUE, 6TH FLOOR, NEW YORK NY 10022
Mudrick Gp, Llc 10 percent owner 527 MADISON AVENUE, 6TH FLOOR, NEW YORK NY 10022