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
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists loo...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
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.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
Managing mission-critical SAP systems and landscapes has never been easy. Add public cloud with its myriad of powerful cloud native services and this may not change any time soon. Public cloud offers exciting new possibilities for enterprise workloads. But to make use of these possibilities and capabilities, IT teams need to re-think everything they have done before. Otherwise, they will just end up using public cloud as a hosting platform for their workloads, aka known as “lift and shift.”
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that TechTarget has been named “Media Sponsor” of 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. TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets.
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of 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. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...