Boingo Wireless (WIFI) Tops Q3 EPS by 8c, Revenues Beat; Offers FY18 EPS/Revenue Outlook

Boingo Wireless (NASDAQ: WIFI) reported Q3 EPS of ($0.01), $0.08 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $65.3 million versus the consensus estimate of $63.33 million.

• Revenue of $65.3 million increased 21.6%, compared to $53.7 million in the third quarter of 2017. Growth was driven by strength in military/multifamily, wholesale Wi-Fi and DAS.
  • Military/multifamily revenue of $21.7 million increased 55.9% compared to $13.9 million in the third quarter of 2017.
  • Wholesale Wi-Fi revenue of $11.7 million increased 41.4%, compared to $8.3 million in the third quarter of 2017.
  • DAS revenue of $24.4 million increased 12.2%, compared to $21.8 million in the third quarter of 2017. DAS revenue for the quarter was comprised of $18.2 million of build-out project revenue and $6.2 million of access fee revenue.
• Net loss attributable to common stockholders was $(0.5) million, or $(0.01) per diluted share, compared to a net loss of $(3.5) million, or $(0.09) per diluted share, in the third quarter of 2017.
• Adjusted EBITDA was $23.3 million, an increase of 17.8% compared to $19.8 million in the third quarter of 2017. 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.”
• Net cash provided by operating activities was $38.1 million, an increase of 89.7% compared to $20.1 million in the third quarter of 2017.
• Free cash flow was $8.5 million, compared to $(2.7) million in the third quarter of 2017. Free cash flow, which is a non-GAAP financial measure, is defined below and is reconciled to net cash provided by operating activities, the most comparable measure under GAAP, in the schedule entitled "Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flows."

“As a result of consistent execution against our overall strategy to leverage the explosive growth of mobile data, our third quarter revenue exceeded the high-end of our guidance range, increasing 22% year-over-year to $65.3 million,” commented David Hagan, Chief Executive Officer of Boingo Wireless. “We also exceeded the high-end of our adjusted EBITDA guidance range with an 18% year-over-year increase to $23.3 million. Our performance during the quarter was driven by strength in military/multifamily through our August 2018 acquisition of Elauwit Networks, LLC and military ARPU growth, wholesale Wi-Fi through increased carrier offload usage and continued strong performance of DAS which was highlighted by the deployment of seven new venues.”

Mr. Hagan continued, “While Elauwit has done extremely well growing their business with property owners funding network builds in the multifamily space, we believe there is a meaningful opportunity to grow market share by putting capital to work on a selective basis to increase our win rate. We were very pleased to raise a significant amount of capital through our recent offering of convertible senior notes earlier this month. By strengthening our balance sheet on very attractive terms, we are now better positioned to respond to market opportunities, win new business and build and deploy wireless networks faster.”

GUIDANCE:

Boingo Wireless sees FY2018 EPS of ($0.24)-$0.12, versus the consensus of ($0.22). Boingo Wireless sees FY2018 revenue of $243-250 million, versus the consensus of $249.04 million.

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

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