Boingo Wireless, Inc.
Nov 5, 2015

Boingo Wireless Reports Record Results; Exceeds Third Quarter 2015 Revenue Guidance

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 third quarter ended September 30, 2015.

Third Quarter 2015 Financial Highlights

Operational Highlights

Key Business Metrics

Management Commentary

"I'm pleased to share that the momentum from our record-breaking first half of the year continued and once again, we delivered very strong quarterly performance," said David Hagan, Chief Executive Officer of Boingo Wireless. "For the third consecutive quarter, revenue exceeded our guidance range and adjusted EBITDA was at the high end of our guidance range. We continue to execute against all of our strategic growth initiatives in our DAS, Military and Carrier Offload verticals."

Mr. Hagan continued, "Momentum in DAS remained robust through the third quarter. 2015 has been our biggest year ever for DAS contracts with the signing of 37 long-term DAS contracts with the big four Tier One carriers during the first nine months of the year. Wholesale Wi-Fi, led by carrier offload, achieved another major milestone during the quarter with the launch of iOS 9 to extend seamless Passpoint connectivity to more than 12 million Sprint iOS users at our airports. Further, construction on the U.S. military bases continued with the addition of 18,000 beds bringing our total to 178,000 beds on 36 U.S. Army, Air Force and Marine Corps bases."

Mr. Hagan concluded, "Our team has been executing extremely well against all of our strategic initiatives. We are operating effectively and efficiently and all of our key business growth drivers continue to perform. We believe we are extremely well positioned to capitalize on the industry trends of mobile data growth and the resulting network densification."

Business Outlook

Boingo Wireless is reiterating its guidance for the full year ending December 31, 2015, as follows:

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss its third quarter 2015 financial results beginning at 4:30 p.m. ET (1:30 p.m. PT), today, November 5, 2015. To participate in the conference call, investors from the U.S. and Canada should dial (877) 407-0789 and enter the passcode: 13621588 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, Form 10-Q for the quarter ended March 31, 2015 filed with the SEC on May 11, 2015, and Form 10-Q for the quarter ended June 30, 2015 filed with the SEC on August 10, 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
September 30,

Nine Months Ended
September 30,
2015       2014 2015       2014
 
Revenue $ 37,186 $ 30,822 $ 100,855 $ 85,670
Costs and operating expenses:
Network access 17,517 15,058 47,151 41,230
Network operations 8,219 6,245 24,160 17,862
Development and technology 5,001 3,965 13,978 10,805
Selling and marketing 4,793 3,778 13,990 11,629
General and administrative 5,472 4,304 16,994 13,344
Amortization of intangible assets 943 959 2,709 2,812
Total costs and operating expenses 41,945 34,309 118,982 97,682
Loss from operations (4,759 ) (3,487 ) (18,127 ) (12,012 )
Interest and other (expense) income, net (49 ) 11 (50 ) 12
Loss before income taxes (4,808 ) (3,476 ) (18,177 ) (12,000 )
Income tax expense 115 75 401 378
Net loss (4,923 ) (3,551 ) (18,578 ) (12,378 )
Net (loss) income attributable to non-controlling interests (104 ) 264 60 619
Net loss attributable to common stockholders $ (4,819 ) $ (3,815 ) $ (18,638 ) $ (12,997 )
 
Net loss per share attributable to common stockholders:
Basic $ (0.13 ) $ (0.11 ) $ (0.51 ) $ (0.36 )
Diluted $ (0.13 ) $ (0.11 ) $ (0.51 ) $ (0.36 )
 
Weighted average shares used in computing net loss per share attributable to common stockholders:
Basic 37,041 35,881 36,722 35,619
Diluted 37,041 35,881 36,722 35,619
 
             

Boingo Wireless, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share amounts)

 
September 30,
2015
December 31,
2014
Assets
Current assets:
Cash and cash equivalents $ 8,556 $ 8,849
Marketable securities 1,614
Accounts receivable, net 50,335 27,917
Prepaid expenses and other current assets 4,189 3,916
Deferred tax assets 787 787
Total current assets 63,867 43,083
Property and equipment, net 192,909 111,772
Goodwill 42,403 42,403
Intangible assets, net 16,927 19,676
Other assets 4,913 2,468
Total assets $ 321,019 $ 219,402
 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 33,253 $ 4,004
Accrued expenses and other liabilities 42,337 26,109
Deferred revenue 19,447 25,488
Current portion of long-term debt 16,094 875
Current portion of capital leases 1,453 309
Total current liabilities 112,584 56,785
Deferred revenue, net of current portion 82,473 27,267
Long-term debt 1,969 2,625
Long-term portion of capital leases 1,984 381
Deferred tax liabilities 3,717 3,432
Other liabilities 5,701 1,482
Total liabilities 208,428 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; 37,140 and 36,267 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively 4 4
Additional paid-in capital 194,630 189,725
Accumulated deficit (81,522 ) (62,884 )
Accumulated other comprehensive loss (1,230 ) (443 )
Total common stockholders' equity 111,882 126,402
Non-controlling interests 709 1,028
Total stockholders' equity 112,591 127,430
Total liabilities and stockholders' equity $ 321,019 $ 219,402
 
             

Boingo Wireless, Inc.

Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA

(Unaudited)

(In thousands)

 
Three Months Ended
September 30,
Nine Months Ended
September 30,
2015       2014 2015       2014
 
Net loss attributable to common stockholders $ (4,819 ) $ (3,815 ) $ (18,638 ) $ (12,997 )
Depreciation and amortization of property and equipment 10,033 7,335 27,899 19,650
Income tax expense 115 75 401 378
Amortization of intangible assets 943 959 2,709 2,812
Stock-based compensation expense 2,256 1,842 6,190 5,210
Non-controlling interests (104 ) 264 60 619
Interest and other expense (income), net 49 (11 ) 50 (12 )
Adjusted EBITDA $ 8,473 $ 6,649 $ 18,671 $ 15,660
 

BOINGO WIRELESS
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

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