Boingo Wireless, Inc.
Nov 2, 2017

Boingo Wireless Reports Record Third Quarter 2017 Financial Results

LOS ANGELES, Nov. 02, 2017 (GLOBE NEWSWIRE) -- Boingo Wireless (NASDAQ:WIFI), the leading distributed antenna system (DAS) and Wi-Fi provider that serves carriers, consumers and advertisers worldwide, today announced the Company's financial results for the third quarter ended September 30, 2017.

Third Quarter 2017 Financial Highlights

Business Highlights

Management Commentary

"After a strong first half of the year, we reported another record quarter, and as a result, we are updating and raising our full year guidance," commented David Hagan, Chief Executive Officer of Boingo Wireless. "We extended our streak of double-digit revenue growth to 12 consecutive quarters and year-over-year adjusted EBITDA margin expansion to nine consecutive quarters. This growth is the result of consistent execution against our strategic plan to leverage explosive mobile data growth by obtaining long-term wireless rights at large venues, deploying DAS, Wi-Fi and small cell networks at those venues and monetizing the networks with Boingo's unique mix of products and services."

Mr. Hagan continued, "We are extremely pleased with our third quarter financial results which point to the strength of our overall business and the products and services driving the results. We believe Boingo is the largest provider of indoor DAS networks in the world and that both carrier offload and small cells will play an important role in boosting carrier coverage on military bases. It is exciting to see this become a reality."

Business Outlook

Boingo Wireless is raising its guidance for the full year ending December 31, 2017 as follows:

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss its third quarter 2017 financial results beginning at 4:30 p.m. ET (1:30 p.m. PT), today, November 2, 2017. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-9716 and enter the passcode: 13671090 ten minutes prior to the scheduled start time. International callers should dial +1 (201) 493-6779 and enter the same passcode. The conference call will be broadcast live over the Internet in the Investor Relations section of the Company's website at In addition, a supplement reflecting the Company's key business metrics will be made available in the Investor Relations section of the Company's website. The supplement and webcast 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 and free cash flow as supplemental measures of its performance.

The Company defines Adjusted EBITDA as net loss attributable to common stockholders plus depreciation and amortization of property and equipment, stock‑based compensation expense, amortization of intangible assets, income tax expense, interest and other expense, net, non-controlling interests, and excludes charges or gains that are nonrecurring, infrequent, or unusual. 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 other 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. Adjusted EBITDA for 2017 excludes settlement expense related to a claim from one of the Company's venue partners and Adjusted EBITDA for 2016 excludes charges related to the Company's contested proxy election for the 2016 annual meeting of stockholders because they represent non-recurring charges and are not indicative of the underlying performance of the Company's business operations.

The Company defines free cash flow as net cash provided by operating activities, less purchases of property and equipment. Boingo Wireless believes that free cash flow provides investors with additional useful information to measure operating liquidity because it reflects the amount of cash generated by the Company's operations after the purchases of property and equipment that can be used for strategic opportunities. Free cash flow should not be considered as an alternative financial measure to net cash provided by operating activities, 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. Our vast footprint of DAS, Wi-Fi and small cells reaches more than a billion people annually, making Boingo one of the largest providers of indoor wireless networks. You'll find Boingo connecting people at airports, stadiums, military bases, convention centers, and commercial properties. To learn more about the Boingo story, visit

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, future guidance and future growth opportunities. 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 the Company's ability to maintain its existing relationships and establish new relationships with venue partners, its ability to complete build-outs and sign venue contracts, its ability to maintain revenue growth and achieve profitability, its ability to execute on its strategic and business plans, its ability to successfully compete with new technologies and adapt to changes in the wireless industry, 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, 2016 filed with the SEC on March 13, 2017, Form 10-Q for the quarter ended March 31, 2017 filed with the SEC on May 8, 2017 and Form 10-Q for the quarter ended June 30, 2017 filed with the SEC on August 4, 2017, 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
(In thousands, except per share amounts)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2017  2016  2017  2016 
Revenue $53,655  $40,796  $147,021  $114,370  
Costs and operating expenses:            
Network access 24,143  17,982  64,655  49,575 
Network operations 11,625  10,698  34,556  31,566 
Development and technology 6,817  5,394  19,814  16,014 
Selling and marketing 5,201   4,553  15,188  14,103 
General and administrative 8,006  6,701  27,372  22,553 
Amortization of intangible assets 852   855  2,673  2,582 
Total costs and operating expenses 56,644  46,183  164,258  136,393 
Loss from operations (2,989) (5,387) (17,237) (22,023)
Interest and other expense, net (84) (117) (126) (299)
Loss before income taxes (3,073) (5,504) (17,363) (22,322)
Income tax expense 167  95  507  457 
Net loss (3,240) (5,599) (17,870) (22,779)
Net income attributable to non-controlling interests 210  110  477  180 
Net loss attributable to common stockholders $(3,450) $(5,709) $(18,347) $(22,959)
Net loss per share attributable to common stockholders:                  
Basic $(0.09) $(0.15) $(0.46) $(0.61)
Diluted $ (0.09) $(0.15) $(0.46) $(0.61)
Weighted average shares used in computing net loss per share attributable to common stockholders:            
Basic 40,336  38,189  39,468  37,897 
Diluted 40,336  38,189  39,468  37,897 

Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)

  September 30,
  December 31,
Current assets:      
Cash and cash equivalents $21,634   $19,485 
Accounts receivable, net 39,102  42,978 
Prepaid expenses and other current assets 6,722  5,344 
Total current assets 67,458  67,807 
Property and equipment, net 261,010  250,765 
Goodwill 42,403  42,403 
Intangible assets, net 11,094  13,783 
Other assets 6,580  6,223 
Total assets $388,545  $380,981 
Liabilities and stockholders' equity      
Current liabilities:      
Accounts payable $14,614  $15,516 
Accrued expenses and other liabilities 35,660  27,723 
Deferred revenue 78,575  50,869 
Current portion of long-term debt 875  1,094 
Current portion of capital leases and notes payable 4,349  3,993 
Total current liabilities 134,073  99,195 
Deferred revenue, net of current portion 138,910  152,719 
Long-term debt 5,219   15,875 
Long-term portion of capital leases and notes payable 3,560  4,612 
Deferred tax liabilities 3,513  3,208 
Other liabilities 6,500  6,826 
Total liabilities 291,775  282,435 
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; 40,788 and 38,562
shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
 4  4 
Additional paid-in capital 227,454  211,275 
Accumulated deficit (130,948) (112,601)
Accumulated other comprehensive loss (812) (870)
Total common stockholders' equity 95,698  97,808 
Non-controlling interests 1,072  738 
Total stockholders' equity 96,770  98,546 
Total liabilities and stockholders' equity $388,545  $380,981 

Boingo Wireless, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)

  Nine Months Ended
September 30,
  2017  2016 
Cash flows from operating activities      
Net loss $(17,870) $(22,779)
Adjustments to reconcile net loss including non-controlling interests to net cash provided by operating activities:      
Depreciation and amortization of property and equipment 49,244  34,801 
Amortization of intangible assets 2,673  2,582 
Bad debt expense (recovery) 88  (47)
Other 51   
Impairment loss and loss on disposal of fixed assets, net 442    49 
Stock-based compensation 11,016   9,690 
Change in deferred income taxes 305  324 
Changes in operating assets and liabilities:      
Accounts receivable 3,804  (462)
Prepaid expenses and other assets (1,816) (2,182)
Accounts payable (1,330) 3,464 
Accrued expenses and other liabilities 6,920  4,018 
Deferred revenue 13,897  64,140 
Net cash provided by operating activities 67,424  93,598 
Cash flows from investing activities      
Purchases of property and equipment (54,691) (92,045)
Payments for asset acquisition (1,150)   
Net cash used in investing activities (55,841) (92,045)
Cash flows from financing activities      
Proceeds from credit facility   5,000 
Principal payments on credit facility  (10,875) (5,656)
Proceeds from exercise of stock options 7,993   1,981 
Debt issuance costs   (124)
Payments of capital leases and notes payable (2,952) (1,889)
Payments of withholding tax on net issuance of restricted stock units (3,480) (2,112)
Payments to non-controlling interests (125) (286)
Net cash used in financing activities (9,439) (3,086)
Effect of exchange rates on cash 5  15 
Net increase (decrease) in cash and cash equivalents 2,149  (1,518)
Cash and cash equivalents at beginning of period 19,485  14,718 
Cash and cash equivalents at end of period $21,634  $ 13,200 
Supplemental disclosure of non-cash investing and financing activities      
Property and equipment costs in accounts payable, accrued expenses and other liabilities $19,438  $19,367 
Purchase of equipment and prepaid maintenance services under capital financing arrangements $2,141  $4,560 

Boingo Wireless, Inc.
Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA
(In thousands)

  Three Months Ended
September 30,
    Nine Months Ended
September 30,
  2017  2016  2017  2016 
Net loss attributable to common stockholders $(3,450) $(5,709) $(18,347) $(22,959)
Depreciation and amortization of property and equipment   18,245  13,093  49,244  34,801 
Stock-based compensation expense 3,684  3,006  11,016  9,690  
Amortization of intangible assets 852  855  2,673  2,582 
Income tax expense 167  95  507  457 
Interest and other expense, net 84  117  126  299 
Non-controlling interests 210  110  477  180 
Contested proxy election expense       1,440 
Settlement expense     2,807   
Adjusted EBITDA $19,792  $11,567  $48,503  $26,490 

Boingo Wireless, Inc.
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flows
(In thousands)

 Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2017    2016     2017   2016 
Net cash provided by operating activities$20,071  $37,931  $67,424  $93,598 
Purchases of property and equipment, net (22,774)  (27,788)  (54,691)  (92,045)
Free cash flows$(2,703) $10,143  $12,733  $1,553 

Boingo Wireless, Inc.
Revenue Summary
(In thousands)

  Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2017 2016 2017 2016 
DAS $ 21,755 $15,959 $56,563 $40,957 
Military                   13,946 10,137 40,029 28,969 
Wholesale—Wi-Fi 8,307 5,888 22,438 16,031 
Retail 6,234 6,619 19,007 20,100 
Advertising and other 3,413 2,193 8,984 8,313 
Total revenue $53,655 $40,796 $147,021 $114,370 

Boingo Wireless, Inc.
Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA - Guidance
                                                                                                (In millions)                          

  Year Ended
December 31, 2017
  Low High 
Net loss attributable to common stockholders $(26.0)$(23.0)
Depreciation and amortization of property and equipment..  68.9 
Stock-based compensation expense 14.2 
Amortization of intangible assets 3.6 
Income tax expense and interest and other expense, net 0.8 
Non-controlling interests 0.7 
Settlement expense 2.8 
Adjusted EBITDA $65.0  $68.0 

Boingo Wireless, Inc.
Key Business Metrics
(In thousands)

  Three Months Ended
September 30,
Nine Months Ended
September 30,
  2017 2016 2017 2016
Key business metrics:        
DAS nodes(1)             22.2 17.7 22.2 17.7
DAS nodes in backlog(2) 11.0 5.2 11.0 5.2
Subscribers—military(3) 133 86 133 86
Subscribers—retail(3) 194 185 194 185
Connects(4) 64,875 40,263 160,082 102,515
  1. This metric represents the number of active DAS nodes as of the end of the period. A DAS node is a single communications endpoint, typically an antenna, which transmits or receives radio frequency signals wirelessly. This measure is an indicator of the reach of the Company's DAS network.
  2. This metric represents the number of DAS nodes under contract but not yet active as of the end of the period.
  3. This metric represents the number of paying customers who are on a month-to-month subscription plan at a given period end.
  4. This metric shows how often individuals connect to the Company's global Wi-Fi network in a given period. The connects include retail and wholesale customers in both customer pay locations and customer free locations where Boingo is a paid service provider or receives revenue sponsorship or promotion fees. The Company counts each connect as a single connect regardless of how many times that individual accesses the network at a given venue during their 24 hour period. This measure is an indicator of paid activity throughout Boingo's network.

Lauren de la Fuente
Vice President, Marketing and Communications
(310) 405-8517

Kimberly Orlando and Ariel Papermaster
ADDO Investor Relations
(310) 829-5400


Source: Boingo Wireless, Inc.

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