Boingo Wireless, Inc.
Feb 25, 2014

Boingo Wireless Reports Strong Fourth Quarter and Full Year 2013 Results

--Achieved record 2013 revenues of $107 million--

--Announced as exclusive Wi-Fi and DAS provider in the largest airport in South America--

--Announced as exclusive Wi-Fi provider in the largest airport in the Middle East--

LOS ANGELES--(BUSINESS WIRE)-- Boingo Wireless (NASDAQ: WIFI), the leading DAS and Wi-Fi provider that serves consumers, carriers and advertisers worldwide, today announced the company's financial results for the fourth quarter and full year ended December 31, 2013.

Fourth Quarter 2013 Financial Highlights

Full Year 2013 Financial Highlights

Operational Highlights

Management Commentary

"As we look back on 2013, we are pleased with our achievements, which included record revenue as well as significant new contracts that are expected to generate long-term recurring revenue in both our wholesale and retail businesses," said David Hagan, Chief Executive Officer of Boingo Wireless. "Sizeable opportunities in key growth sectors required us to invest more heavily up front this year, which affected our profitability. That said, those investments are already starting to pay off in our advertising business with revenue nearly doubling year over year, while the aggressive ramping of investments in the military network rollouts isn't expected to contribute in a meaningful way until the second half of this year."

Mr. Hagan continued, "Importantly, the progress made in 2013 establishes a foundation for accelerated growth starting in the back half of 2014 and beyond. We believe that DAS, military broadband and advertising will drive further growth of the company. We're especially pleased that our healthy balance sheet and strong cash flow provides us the flexibility to pursue our growth initiatives."

Business Outlook

Boingo Wireless is initiating guidance for the first quarter ending March 31, 2014 and for the full year ending December 31, 2014, as follows:

First Quarter 2014

Full Year 2014

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss its fourth quarter and full year 2013 financial results beginning at 4:30 pm ET (1:30 pm PT), today, February 25, 2014. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0789 and enter the passcode: 13575469 ten minutes prior to the scheduled start time. International callers should dial (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 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) income attributable to common stockholders plus depreciation and amortization of property and equipment, income tax expense, amortization of intangible assets, stock-based compensation expense, non-controlling interests and interest and other expense (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) income 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.

Preliminary Nature of Reported Results

The fourth quarter and full year 2013 financial results reported in this press release are preliminary and unaudited. The company expects to announce final results in March 2014 when it files its Annual Report on Form 10-K for the year ended December 31, 2013. Final results could differ from the preliminary results reported in this press release. The company assumes no obligation and does not intend to update these preliminary results prior to filing its Annual Report on Form 10-K for the year ended December 31, 2013. The company and its external auditors are also in the process of evaluating the effectiveness of the company's internal control over financial reporting as of December 31, 2013.

About Boingo Wireless

Boingo Wireless (Nasdaq: WIFI) helps the world stay connected. Our 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, shopping malls, restaurants, universities, and military bases. The Boingo platform is the only monetization engine of its kind, driving revenue through carrier offload, advertising, location-based data analytics, and consumer products like IPTV, high-speed broadband, and Wi-Fi. For more information 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 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, 2012 filed with the SEC on March 18, 2013, Form 10-Q for the quarter ended March 31, 2013 filed with the SEC on May 10, 2013, Form 10-Q for the quarter ended June 30, 2013 filed with the SEC on August 9, 2013, and Form 10-Q for the quarter ended September 30, 2013 filed with the SEC on November 12, 2013, which we incorporate 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
December 31,

Year Ended
December 31,

  2013       2012     2013       2012
Revenue $ 28,766 $ 28,000 $ 106,746 $ 102,506
Costs and operating expenses:
Network access 12,870 12,712 47,245 42,289
Network operations 5,050 3,646 18,249 14,541
Development and technology 2,948 2,980 11,432 10,772
Selling and marketing 4,138 3,018 14,244 10,255
General and administrative 3,495 3,245 14,997 12,700
Amortization of intangible assets   794     325     2,250     1,103
Total costs and operating expenses   29,295     25,926     108,417     91,660
(Loss) income from operations (529 ) 2,074 (1,671 ) 10,846
Interest and other (expense) income, net   (33 )   (27 )   37     143
(Loss) income before income taxes (562 ) 2,047 (1,634 ) 10,989
Income tax expense   2,094     497     1,712     2,965
Net (loss) income (2,656 ) 1,550 (3,346 ) 8,024
Net income attributable to non-controlling interests   174     150     650     729
Net (loss) income attributable to common stockholders $ (2,830 ) $ 1,400   $ (3,996 ) $ 7,295
Net (loss) income per share attributable to common stockholders:
Basic $ (0.08 ) $ 0.04 $ (0.11 ) $ 0.21
Diluted $ (0.08 ) $ 0.04 $ (0.11 ) $ 0.20
Weighted average shares used in computing net (loss) income per share attributable to common stockholders:
Basic 35,452 35,239 35,578 34,774
Diluted 35,452 37,303 35,578 37,317

Boingo Wireless, Inc.

Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
December 31,
December 31,
Current assets:
Cash and cash equivalents $ 27,384 $ 58,138
Restricted cash 430 30
Marketable securities 32,962 41,558
Accounts receivable, net 10,746 10,977
Prepaid expenses and other current assets 11,515 2,072
Deferred tax assets   957     1,204  
Total current assets 83,994 113,979
Property and equipment, net 66,474 42,411
Goodwill 42,543 26,744
Intangible assets, net 23,413 10,594
Deferred tax assets 4,256
Other assets   1,660     4,548  
Total assets $ 218,084   $ 202,532  
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 11,581 $ 4,990
Accrued expenses and other liabilities 12,643 10,977
Deferred revenue 19,292 17,329
Current portion of capital leases   526     42  
Total current liabilities 44,042 33,338
Deferred revenue, net of current portion 25,366 24,123
Long-term portion of capital leases 473 136
Deferred tax liabilities 3,134
Other liabilities   4,186     436  
Total liabilities 77,201 58,033
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; 35,226 and 35,483 shares issued and outstanding for 2013 and 2012, respectively 4 4
Additional paid-in capital 183,405 178,219
Accumulated deficit   (43,391 )   (34,547 )
Total common stockholders' equity 140,018 143,676
Non-controlling interests   865     823  
Total stockholders' equity   140,883     144,499  
Total liabilities and stockholders' equity $ 218,084   $ 202,532  
Boingo Wireless, Inc.
Reconciliation of Net (Loss) Income Attributable to Common Stockholders to Adjusted EBITDA
(In thousands)

Three Months Ended
December 31,

Year Ended
December 31,

  2013       2012   2013       2012  
Net (loss) income attributable to common stockholders $ (2,830 ) $ 1,400 $ (3,996 ) $ 7,295
Depreciation and amortization of property and equipment 5,329 4,286 18,940 15,958
Income tax expense 2,094 497 1,712 2,965
Stock-based compensation expense 1,307 572 4,506 2,735
Amortization of intangible assets 794 325 2,250 1,103
Non-controlling interests 174 150 650 729
Interest and other expense (income), net   33     27   (37 )   (143 )
Adjusted EBITDA $ 6,901   $ 7,257 $ 24,025   $ 30,642  

Boingo Wireless
Christian Gunning
Vice President, Corporate Communications
(310) 586-4009
Addo Communications
Laura Bainbridge / Kimberly Orlando
(310) 829-5400 /

Source: Boingo Wireless

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