Boingo Wireless, Inc.
May 7, 2015

Boingo Wireless Reports Strong First Quarter 2015 Financial Results

- Exceeded revenue and profitability guidance

- Announced seamless Wi-Fi offload agreement with Sprint for up to 40 million handsets

- Signed 15 DAS carrier contracts, including five at new venues

- High-speed Wi-Fi now covers 137,000 beds at 31 U.S. military bases

LOS ANGELES--(BUSINESS WIRE)-- 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, 2015.

First Quarter 2015 Financial Highlights

Operational Highlights

Key Business Metrics

Management Commentary

"The first quarter was an exciting start to the year - for both Boingo Wireless and the industry," said David Hagan, Chief Executive Officer of Boingo Wireless. "We exceeded our guidance across all categories. Our performance was led by strength in DAS, wholesale Wi-Fi and military."

Mr. Hagan continued, "DAS was very active throughout the quarter, with T-Mobile and Sprint leading venues for the first time. We signed 15 DAS carrier contracts, including five at new venues, making this our best quarter ever for carrier sales. Our military build-out also progressed with the launch or expansion of five bases and 7,000 new beds, with plans to launch more than 100,000 incremental beds in 2015. The heavy investments we're making in both DAS and military are paying off and will continue to do so for years to come."

Mr. Hagan concluded, "Subsequent to quarter end, we announced the signing of Sprint to the industry's first major carrier offload deal, which enables up to 40 million handsets to seamlessly offload traffic onto our Wi-Fi network. We expect the agreement with Sprint to be just one of many that will occur with the convergence of cellular and Wi-Fi and believe Boingo is extremely well-positioned to take advantage of these trends."

Business Outlook

Boingo Wireless is initiating guidance for the second quarter ending June 30, 2015 and reiterating guidance for the full year ending December 31, 2015, as follows:

Second Quarter 2015

Full Year 2015

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss its first quarter 2015 financial results beginning at 4:30 pm ET (1:30 pm PT), today, May 7, 2015. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0789 and enter the passcode: 13605659 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, 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 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, arenas, 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, 2014 filed with the SEC on March 16, 2015, 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,
  2015       2014  
 
Revenue $ 29,392 $ 26,452
Costs and operating expenses:
Network access 13,623 12,925
Network operations 8,039 5,824
Development and technology 4,191 3,671
Selling and marketing 4,416 3,885
General and administrative 5,833 4,395
Amortization of intangible assets   893     925  
Total costs and operating expenses   36,995     31,625  
Loss from operations (7,603 ) (5,173 )
Interest and other (expense) income, net   (20 )   19  
Loss before income taxes (7,623 ) (5,154 )
Income tax expense   204     148  
Net loss (7,827 ) (5,302 )
Net income attributable to non-controlling interests   55     146  
Net loss attributable to common stockholders $ (7,882 ) $ (5,448 )
 
Net loss per share attributable to common stockholders:
Basic $ (0.22 ) $ (0.15 )
Diluted $ (0.22 ) $ (0.15 )
 
Weighted average shares used in computing net loss per share attributable to common stockholders:
Basic 36,390 35,350
Diluted 36,390 35,350
 

Boingo Wireless, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)
(In thousands, except per share amounts)
 
  March 31,   December 31,
  2015     2014  
Assets
Current assets:
Cash and cash equivalents $ 10,619 $ 8,849
Marketable securities 1,614
Accounts receivable, net 32,327 27,917
Prepaid expenses and other current assets 3,262 3,916
Deferred tax assets   787     787  
Total current assets 46,995 43,083
Property and equipment, net 120,760 111,772
Goodwill 42,403 42,403
Intangible assets, net 18,777 19,676
Other assets   2,831     2,468  
Total assets $ 231,766   $ 219,402  
 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 11,367 $ 4,004
Accrued expenses and other liabilities 18,756 26,109
Deferred revenue 25,164 25,488
Current portion of long-term debt 875 875
Current portion of capital leases   900     309  
Total current liabilities 57,062 56,785
Deferred revenue, net of current portion 39,021 27,267
Long-term debt 7,406 2,625
Long-term portion of capital leases 2,010 381
Deferred tax liabilities 3,554 3,432
Other liabilities   1,794     1,482  
Total liabilities 110,847 91,972
 
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; 36,560 and 36,267 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively 4 4
Additional paid-in capital 191,388 189,725
Accumulated deficit (70,766 ) (62,884 )
Accumulated other comprehensive loss   (842 )   (443 )
Total common stockholders' equity 119,784 126,402
Non-controlling interests   1,135     1,028  
Total stockholders' equity   120,919     127,430  
Total liabilities and stockholders' equity $ 231,766   $ 219,402  
 
Boingo Wireless, Inc.
Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA
(Unaudited)
(In thousands)
 
  Three Months Ended
March 31,
  2015       2014  
 
Net loss attributable to common stockholders $ (7,882 ) $ (5,448 )
Depreciation and amortization of property and equipment 8,054 5,784
Income tax expense 204 148
Amortization of intangible assets 893 925
Stock-based compensation expense 1,835 1,517
Non-controlling interests 55 146
Interest and other expense (income), net   20     (19 )
Adjusted EBITDA $ 3,179   $ 3,053  

PRESS:
Katie O'Neill
Director, Communications
koneill@boingo.com
(310) 689-1163
or
INVESTORS:
Laura Bainbridge / Kimberly Orlando
Addo Communications
laurab@addocommunications.com /
kimberlyo@addocommunications.com
(310) 829-5400

Source: Boingo Wireless, Inc.

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