Welcome!

News Feed Item

Boingo Wireless Reports Strong First Quarter 2014 Results

Boingo Wireless (NASDAQ: WIFI), the leading distributed antenna system (DAS) and Wi-Fi provider that serves consumers, carriers and advertisers worldwide, today announced the company’s financial results for the first quarter ended March 31, 2014.

First Quarter 2014 Financial Highlights

  • Revenue of $26.5 million, an increase of 14.3% compared to $23.1 million for the first quarter of 2013.
  • Net loss attributable to common stockholders of $5.4 million, or $0.15 per diluted share. This compares to a net loss attributable to common stockholders of $1.1 million, or $0.03 per diluted share, for the first quarter of 2013.
  • Adjusted EBITDA of $3.1 million, compared to $3.6 million for the first quarter of 2013. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and is reconciled to net loss attributable to common stockholders, the most comparable measure under GAAP, in the schedule entitled “Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA.”

Operational Highlights

  • An agreement with the Air Force Academy to design, install and manage integrated Wi-Fi and DAS networks at the Falcon Stadium and Cadet Field House, home of the Air Force Falcons’ NCAA Division I sports teams.
  • An agreement with Miller Sports Properties to upgrade and manage a multi-carrier neutral host DAS network at EnergySolutions Arena, home of the NBA’s Utah Jazz basketball team and more than 100 sports and entertainment events annually.
  • An agreement with the County of Orange to design, install and manage a new neutral host DAS network and upgrade existing Wi-Fi networks at John Wayne Airport (SNA) in Southern California.
  • An agreement with the University of Houston to operate as the exclusive wireless network partner – including both DAS and Wi-Fi – for the new Houston Football Stadium, home of the NCAA FBS Houston Cougars.

Management Commentary

“The year is off to a strong start, with Boingo delivering excellent financial performance while also securing major contract wins that will help build the foundation for continued long-term growth,” said David Hagan, Chief Executive Officer of Boingo Wireless. “Revenue growth of 14% exceeded expectations and demonstrated the kind of double-digit growth we believe is sustainable now that we’re clear of the industry changes that served as a headwind to growth in 2013.”

Mr. Hagan continued, “We saw significant contributions from all of our strategic initiatives – especially advertising, which delivered triple digit revenue growth for the quarter. DAS also had a record quarter, with venue agreement signings occurring in the first three months of the year worth more than all agreements signed in 2013. And while significant investments in our military broadband deployment suppressed quarterly profitability, we expect subscription revenues to begin to ramp as more networks launch in the second half of the year. The continued emergence of DAS, advertising, and military broadband as key growth drivers will enable us to further diversify our revenue streams that allow us to realize growth across all of our lines of business.”

Business Outlook

Boingo Wireless is initiating guidance for the second quarter ending June 30, 2014, as follows:

Second Quarter 2014

  • Revenue is expected to be in the range of $26.0 million to $28.0 million.
  • Adjusted EBITDA is expected to be in the range of $3.5 million to $5.0 million.
  • Net loss attributable to common stockholders is expected to be in the range of $6.0 million to $4.5 million, or a net loss of $0.17 to $0.13 per diluted share.

Boingo Wireless is reiterating guidance for the full year ending December 31, 2014, as follows:

Full Year 2014

  • Revenue is expected to be in the range of $116.0 million to $121.0 million.
  • Adjusted EBITDA is expected to be in the range of $24.0 million to $27.0 million.
  • Net loss attributable to common stockholders is expected to be in the range of $14.0 million to $11.0 million, or a net loss of $0.40 to $0.31 per diluted share.

Conference Call Information

Members of Boingo Wireless’ management will host a conference call to discuss its first quarter 2014 financial results beginning at 4:30 pm ET (1:30 pm PT), today, May 8, 2014. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0789 and enter the passcode: 13579708 ten minutes prior to the scheduled start time. International callers should dial +1 (201) 689-8562 and enter the same passcode. In addition, the call will be broadcast live over the Internet hosted on the Investor Relations section of the company's website at http://investors.boingo.com and will be archived online upon completion of the conference call.

Use of Non-GAAP Financial Measures

To supplement Boingo Wireless’ financial statements presented on a GAAP basis, Boingo Wireless provides Adjusted EBITDA as a supplemental measure of its performance. The company defines Adjusted EBITDA as net loss attributable to common stockholders plus depreciation and amortization of property and equipment, income tax expense (benefit), amortization of intangible assets, stock-based compensation expense, non-controlling interests and interest and other income, net.

Boingo Wireless believes Adjusted EBITDA is useful to investors in evaluating its operating performance. Boingo’s management uses Adjusted EBITDA in conjunction with accounting principles generally accepted in the United States, or GAAP, and operating performance measures as part of its overall assessment of the company’s performance for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business strategies and to communicate with its board of directors concerning its financial performance. Adjusted EBITDA should not be considered as an alternative financial measure to net loss attributable to common stockholders, which is the most directly comparable financial measure calculated in accordance with GAAP, or any other measure of financial performance calculated in accordance with GAAP.

About Boingo Wireless

Boingo Wireless, Inc. (NASDAQ: WIFI) helps the world stay connected. Boingo’s vast footprint of small cell networks covers more than a million DAS and Wi-Fi locations and reaches more than 1 billion consumers annually – in places as varied as airports, stadiums, universities, and military bases. For more information about the Boingo story, visit www.boingo.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” that involves risks, uncertainties and assumptions. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding Boingo’s strategic plans and future guidance. Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Since forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, as well as other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission (SEC), including Boingo’s Form 10-K for the year ended December 31, 2013 filed with the SEC on March 17, 2014, which the Company incorporates by reference into this press release. Any forward-looking statement made by Boingo in this press release speaks only as of the date on which it is made. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for Boingo to predict all of them. Boingo undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Boingo, Boingo Wireless, the Boingo Wireless Logo and Don’t Just Go. Boingo. are registered trademarks of Boingo Wireless, Inc. All other trademarks are the properties of their respective owners.

Boingo Wireless, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
 
  Three Months Ended
March 31,
  2014       2013  
 
Revenue $ 26,452 $ 23,134
Costs and operating expenses:
Network access 12,925 9,670
Network operations 5,824 3,951
Development and technology 3,671 3,136
Selling and marketing 3,885 2,990
General and administrative 4,395 4,490
Amortization of intangible assets   925     399  
Total costs and operating expenses   31,625     24,636  
Loss from operations (5,173 ) (1,502 )
Interest and other income, net   19     47  
Loss before income taxes (5,154 ) (1,455 )
Income tax expense (benefit)   148     (467 )
Net loss (5,302 ) (988 )
Net income attributable to non-controlling interests   146     133  
Net loss attributable to common stockholders $ (5,448 ) $ (1,121 )
 
Net loss per share attributable to common stockholders:
Basic $ (0.15 ) $ (0.03 )
Diluted $ (0.15 ) $ (0.03 )
 
Weighted average shares used in computing net loss per share attributable to common stockholders:
Basic 35,350 35,597
Diluted 35,350 35,597
 
Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
 
  March 31,   December 31,
  2014     2013  
Assets
Current assets:
Cash and cash equivalents $ 13,516 $ 27,338
Restricted cash 545 545
Marketable securities 37,286 32,962
Accounts receivable, net 18,045 16,326
Prepaid expenses and other current assets 2,479 2,566
Deferred tax assets   1,192     1,192  
Total current assets 73,063 80,929
Property and equipment, net 76,445 67,560
Goodwill 42,431 42,431
Intangible assets, net 22,483 23,413
Other assets   1,285     1,210  
Total assets $ 215,707   $ 215,543  
 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 8,748 $ 11,642
Accrued expenses and other liabilities 17,325 16,908
Deferred revenue   22,303     19,292  
Total current liabilities 48,376 47,842
Deferred revenue, net of current portion 26,258 21,591
Deferred tax liabilities 3,369 3,369
Other liabilities   1,956     2,133  
Total liabilities 79,959 74,935
 
Commitments and contingencies
 
Stockholders’ equity:
Preferred stock, $0.0001 par value; 5,000 shares authorized; no shares issued and outstanding
Common stock, $0.0001 par value; 100,000 shares authorized; 35,516 and 35,226 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively 4 4
Additional paid-in capital 183,988 182,927
Accumulated deficit   (48,636 )   (43,188 )
Total common stockholders’ equity 135,356 139,743
Non-controlling interests   392     865  
Total stockholders’ equity   135,748     140,608  
Total liabilities and stockholders’ equity $ 215,707   $ 215,543  
 
Boingo Wireless, Inc.
Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA
(Unaudited)
(In thousands)
 
  Three Months Ended
March 31,
  2014       2013  
 
Net loss attributable to common stockholders $ (5,448 ) $ (1,121 )
Depreciation and amortization of property and equipment 5,784 4,133
Income tax expense (benefit) 148 (467 )
Amortization of intangible assets 925 399
Stock-based compensation expense 1,517 602
Non-controlling interests 146 133
Interest and other income, net   (19 )   (47 )
Adjusted EBITDA $ 3,053   $ 3,632  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...