Boingo Wireless (WIFI) Tops Q2 EPS by 19c, Revenues Beat; Boosts FY18 EPS Revenue Guidance Above Consensus

Boingo Wireless (NASDAQ: WIFI) reported Q2 EPS of $0.05, $0.19 better than the analyst estimate of ($0.14). Revenue for the quarter came in at $59.6 million versus the consensus estimate of $56.53 million.

• Record quarterly revenue of $59.6 million increased 21.6% year-over-year and exceeded guidance
• Agrees to acquire Elauwit Networks to enter multifamily market for Wi-Fi connectivity
• Raising full year 2018 guidance due to strong performance

Management Commentary

“We reported an outstanding second quarter with record quarterly revenue exceeding our guidance range, increasing 21.6% year-over-year to $59.6 million, and record adjusted EBITDA, also exceeding our guidance range, increasing 43.4% year-over-year to $23.5 million,” commented David Hagan, Chief Executive Officer of Boingo Wireless. “This growth is the result of consistent execution against our overall strategy to leverage the explosive growth of mobile data and reflects ongoing momentum from our three main business drivers of carrier offload, military and DAS. After a strong first half of the year, we are updating and raising our full year guidance.”

Mr. Hagan continued, “As announced today, we were pleased to acquire Elauwit Networks, marking our entry into the student housing and multifamily property (MDU) market. While we considered entering this vertical organically given our success with our military broadband business, we believe this acquisition jumpstarts our efforts by a few years and greatly de-risks the MDU opportunity. Elauwit has been in this market for over 10 years and developed a quality reputation, providing high-speed Wi-Fi to 220 properties across the country. We are excited to leverage our military broadband expertise into this new market segment and are thrilled to welcome the Elauwit team to the Boingo family.”

Business Outlook

Boingo Wireless is initiating guidance for the third quarter ending September 30, 2018 and is raising guidance for the full year ending December 31, 2018, as follows:

Third Quarter 2018

• Revenue is expected to be in the range of $60.0 million to $64.0 million.
• Net loss attributable to common stockholders is expected to be in the range of $(6.5) million to $(3.5) million, or a net loss of $(0.16) to $(0.09) per diluted share.
• Adjusted EBITDA is expected to be in the range of $19.0 million to $22.0 million. Adjusted EBITDA, which is a non-GAAP financial measure, is defined below and is reconciled to net loss attributable to common stockholders, the most comparable measure under GAAP, in the schedule entitled “Reconciliation of Net Loss Attributable to Common Stockholders to Adjusted EBITDA – Guidance.”

Full Year 2018

• Revenue is expected to be in the range of $243.0 million to $250.0 million.
• Net loss attributable to common stockholders is expected to be in the range of $(15.0) million to $(10.0) million, or a net loss of $(0.36) to $(0.24) per diluted share.
• Adjusted EBITDA is expected to be in the range of $85.0 million to $90.0 million.

GUIDANCE:

Boingo Wireless sees FY2018 EPS of ($0.36)-($0.24), versus the consensus of ($0.45). Boingo Wireless sees FY2018 revenue of $243-250 million, versus the consensus of $235.46 million.

For earnings history and earnings-related data on Boingo Wireless (WIFI) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Movano (MOVE) Misses Q2 EPS by 195c
• Optimum Communications gets NYSE non-compliance notice over stock price