Boingo Wireless, Inc.
Aug 6, 2015

Boingo Exceeds Second Quarter Revenue and Adjusted EBITDA Guidance; Raises Full Year Revenue Guidance

Second quarter revenue growth of 21%; Raises full year revenue guidance to $136 to $141 million

Signed over 30 DAS carrier contracts through the first six months of 2015

High-speed Wi-Fi now covers over 160,000 beds at 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 second quarter ended June 30, 2015.

Second Quarter 2015 Financial Highlights

Operational Highlights

Key Business Metrics

Management Commentary

"I'm pleased to announce that Boingo's strong momentum continued into the second quarter, making it a record breaking quarter in a number of ways," said David Hagan, Chief Executive Officer of Boingo Wireless. "For the second sequential quarter, we exceeded the high end of our guidance for revenue and adjusted EBITDA, providing us with incremental flexibility to re-invest in our growth initiatives and enabling us to raise our full year revenue guidance. Our performance was once again led by military, DAS and wholesale Wi-Fi."

Mr. Hagan continued, "DAS, coming off a record first quarter, was even stronger in the second quarter. Through the first six months of 2015, we signed more than 30 long-term DAS contracts with the big four Tier One carriers, making this our biggest year ever for DAS contracts. Wholesale Wi-Fi, led by carrier offload, had a record breaking quarter as well with offload traffic growing week over week as millions of customers move through our Passpoint-enabled airports and are seamlessly connected to Wi-Fi as easily and as safely as cellular. Our military build-out also progressed as we crossed over 160,000 beds on U.S. Army, Air Force and Marine Corps bases by the end of the second quarter."

Mr. Hagan concluded, "The significant investments we've been making in DAS, military and network upgrades are paying off and will continue to be key drivers of future growth. The momentum we're experiencing echoes the strength that we are seeing in the overall wireless infrastructure market, particularly around network densification, Wi-Fi proliferation and network traffic growth. Boingo remains very well-positioned to capitalize on these trends."

Business Outlook

Boingo Wireless is initiating guidance for the third quarter ending September 30, 2015 and is raising its revenue guidance for the full year ending December 31, 2015, as follows:

Third Quarter 2015

Full Year 2015

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss its second quarter 2015 financial results beginning at 4:30 pm ET (1:30 pm PT), today, August 6, 2015. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0789 and enter the passcode: 13614400 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 (income) expense, 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 and Form 10-Q for the quarter ended March 31, 2015 filed with the SEC on May 11, 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
June 30,
    Six Months Ended
June 30,
2015     2014 2015     2014
 
Revenue $ 34,277 $ 28,396 $ 63,669 $ 54,848
Costs and operating expenses:
Network access 16,011 13,247 29,634 26,172
Network operations 7,902 5,793 15,941 11,617
Development and technology 4,786 3,169 8,977 6,840
Selling and marketing 4,781 3,966 9,197 7,851
General and administrative 5,689 4,645 11,522 9,040
Amortization of intangible assets 873   928   1,766   1,853  
Total costs and operating expenses 40,042   31,748   77,037   63,373  
Loss from operations (5,765 ) (3,352 ) (13,368 ) (8,525 )
Interest and other income (expense), net 19   (18 ) (1 ) 1  
Loss before income taxes (5,746 ) (3,370 ) (13,369 ) (8,524 )
Income tax expense 82   155   286   303  
Net loss (5,828 ) (3,525 ) (13,655 ) (8,827 )
Net income attributable to non-controlling interests 109   209   164   355  
Net loss attributable to common stockholders $ (5,937 ) $ (3,734 ) $ (13,819 ) $ (9,182 )
 
Net loss per share attributable to common stockholders:
Basic $ (0.16 ) $ (0.10 ) $ (0.38 ) $ (0.26 )
Diluted $ (0.16 ) $ (0.10 ) $ (0.38 ) $ (0.26 )
 
Weighted average shares used in computing net loss per share attributable to common stockholders:
Basic 36,724 35,621 36,558 35,486
Diluted 36,724 35,621 36,558 35,486
 
 
Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
 
   

June 30,
2015

   

December 31,
2014

Assets
Current assets:
Cash and cash equivalents $ 20,518 $ 8,849
Marketable securities 1,614
Accounts receivable, net 40,465 27,917
Prepaid expenses and other current assets 3,749 3,916
Deferred tax assets 787   787  
Total current assets 65,519 43,083
Property and equipment, net 152,006 111,772
Goodwill 42,403 42,403
Intangible assets, net 17,872 19,676
Other assets 3,811   2,468  
Total assets $ 281,611   $ 219,402  
 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 15,467 $ 4,004
Accrued expenses and other liabilities 36,836 26,109
Deferred revenue 35,365 25,488
Current portion of long-term debt 10,875 875
Current portion of capital leases 1,312   309  
Total current liabilities 99,855 56,785
Deferred revenue, net of current portion 52,785 27,267
Long-term debt 2,188 2,625
Long-term portion of capital leases 2,325 381
Deferred tax liabilities 3,639 3,432
Other liabilities   3,806   1,482  
Total liabilities 164,598 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; 36,949 and 36,267 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively 4 4
Additional paid-in capital 193,758 189,725
Accumulated deficit (76,703 ) (62,884 )
Accumulated other comprehensive loss (783 ) (443 )
Total common stockholders' equity 116,276 126,402
Non-controlling interests 737   1,028  
Total stockholders' equity 117,013   127,430  
Total liabilities and stockholders' equity $ 281,611   $ 219,402  
 
 
Boingo Wireless, Inc.
Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA
(Unaudited)
(In thousands)
 
   

Three Months Ended
June 30,

    Six Months Ended
June 30,
2015     2014 2015     2014
 
Net loss attributable to common stockholders $ (5,937 ) $ (3,734 ) $ (13,819 ) $ (9,182 )
Depreciation and amortization of property and equipment 9,812 6,531 17,866 12,315
Income tax expense 82 155 286 303
Amortization of intangible assets 873 928 1,766 1,853
Stock-based compensation expense 2,099 1,851 3,934 3,368
Non-controlling interests 109 209 164 355
Interest and other (income) expense, net (19 ) 18   1   (1 )
Adjusted EBITDA $ 7,019   $ 5,958   $ 10,198   $ 9,011  

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

Source: Boingo Wireless, Inc.

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