Boingo Wireless (WIFI) Tops Q4 EPS by 10c, Revenues Beat; Offers Q1 & FY19 EPS Guidance Above Consensus, Q1 & FY19 Revenue Views Below Consensus

Boingo Wireless (NASDAQ: WIFI) reported Q4 EPS of $0.01, $0.10 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $67.8 million versus the consensus estimate of $66.49 million.

• Record annual revenue of $250.8 million increased 22.7% year-over-year and exceeded guidance
• Entered into agreements with Tier 1 carriers representing 102 carrier contracts
• Awarded two significant long-term DAS agreements with the MTA of New York; launched 20 new DAS venues to total 58 live in 2018
• Expanded Wi-Fi roaming agreement with AT&T now covering over 80 venues

“2018 was an incredible year for Boingo as we delivered record results with an all-time revenue high of $250.8 million, representing 23% growth over 2017,” commented David Hagan, Chief Executive Officer of Boingo Wireless. “This is our fifth consecutive year of double-digit revenue growth, with our strong top-line performance fueled by growth in DAS, military/multifamily and carrier offload. We also exceeded the high-end of our adjusted EBITDA guidance range with a 33% year-over-year increase to $91.8 million.”

Mr. Hagan continued, “We were very pleased to be recently awarded the DAS and Wi-Fi rights for two significant projects from the MTA in New York City. They are expected to be among the largest network deals in the history of the company, and the kind of Boingo-funded network deal that we are able to pursue given the additional cash on our balance sheet from our convertible debt offering completed last October. In addition, we recently expanded our Wi-Fi offload relationship with AT&T to more than 80 venues, including our military bases, which represents the vast majority of our Wi-Fi network. Looking ahead, our business remains extremely robust. We believe Boingo is uniquely well-positioned to take advantage of macro trends like mobile data growth and 5G by executing against our key growth drivers.”

GUIDANCE:

Boingo Wireless sees Q1 2019 EPS of ($0.21)-($0.14), versus the consensus of ($0.06). Boingo Wireless sees Q1 2019 revenue of $63-68 million, versus the consensus of $68.4 million.

Boingo Wireless sees FY2019 EPS of ($0.45)-($0.34), versus the consensus of ($0.15). Boingo Wireless sees FY2019 revenue of $270-280 million, versus the consensus of $293.08 million.

Boingo Wireless is initiating guidance for the first quarter ending March 31, 2019 and for the full year ending December 31, 2019, as follows:

First Quarter 2019

• Revenue is expected to be in the range of $63.0 million to $68.0 million.
• Net loss attributable to common stockholders is expected to be in the range of $(9.0) million to $(6.0) million, or a net loss of $0.21 to $0.14 per diluted share.
• Adjusted EBITDA is expected to be in the range of $17.0 million to $21.0 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 2019

• Revenue is expected to be in the range of $270.0 million to $280.0 million.
• Net loss attributable to common stockholders is expected to be in the range of $(20.0) million to $(15.0) million, or a net loss of $(0.45) to $(0.34) per diluted share.
• Adjusted EBITDA is expected to be in the range of $80.0 million to $87.0 million.

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

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