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
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...