Boingo Wireless Reports Third Quarter 2012 Financial Results

Boingo Wireless Reports Third Quarter 2012 Financial Results

LOS ANGELES, Nov. 8, 2012 (GLOBE NEWSWIRE) -- Boingo Wireless, Inc.
(Nasdaq:WIFI), the world's leading Wi-Fi software and services provider, today
announced the company's financial results for the third quarter ended
September 30, 2012.

Third Quarter 2012 Financial Highlights

Boingo Wireless reported revenue of $26.0 million, compared to $24.7 million
for the third quarter of 2011, an increase of 5.4 percent.

Net income attributable to common stockholders was $2.8 million, or $0.07 per
diluted share. This is compared to net income attributable to common
stockholders of $1.7 million, or $0.05 per diluted share, for the third
quarter of 2011.

Adjusted EBITDA was $8.4 million, compared to $8.2 million for the third
quarter of 2011, an increase of 2.5 percent. Adjusted EBITDA, which is a
non-GAAP financial measure, is defined below and reconciled to net income
(loss), the most comparable measure under GAAP, in the section entitled "Use
of non-GAAP financial measures."

Management Commentary

"Boingo's third quarter financial performance was in-line to ahead of our
expectations and demonstrates continued progress against our strategic growth
initiatives," said David Hagan, President and Chief Executive Officer of
Boingo Wireless. "Benefitting from the acquisition of Cloud Nine Media, we saw
strong growth in sponsorship revenue during the quarter and are optimistic
about the long-term prospects for this revenue stream. At the same time, we
expanded our network footprint to over 550,000 global hotspots, which include
significant new roaming partnerships and M&O network additions."

Mr. Hagan continued, "Core to our investment thesis is the continued
exponential growth in mobile data and the opportunity this growth creates for
carriers to offload traffic from their cellular networks onto our Wi-Fi
network. As such, we are very pleased to announce that we signed a U.S. based
tier 1 carrier to a global roaming contract subsequent to quarter-end."

Business Highlights

Key accomplishments include:

  *An agreement with a U.S. based tier 1 carrier for global roaming.
  *A partnership with the Competitive Carriers Association (CCA) to offer
    Wi-Fi offload solutions to CCA carrier members.
  *An agreement with the City of Dallas to manage and operate Wi-Fi services
    throughout the Dallas Love Field Airport (DAL).
  *An agreement to manage and operate Wi-Fi services at the three most
    highly-trafficked airports in Norway: Oslo Airport (OSL); Bergen Airport,
    Flesland (BGO); and Stavanger Airport, Sola (SVG).
  *A bi-lateral agreement with Linktel Corporate, a leading Brazilian
    wireless service provider, for Boingo customers to access over 1,400
    additional hotspots throughout Brazil.
  *The introduction of an updated version of its Wi-Finder app for iOS to
    include a data tracker to help monitor usage, and a VPN for Macbook and
    Window users.
  *Strong sponsorship activity included:

    *Google Offers to expand its sponsorship of Boingo Wi-Fi from six New
      York subway stations and more than 200 Manhattan hotzones, to 24
      additional locations across the country.
    *Google Play to offer complimentary Boingo Wi-Fi access at more than
      4,000 U.S. hotspots.
    *A Microsoft offer for complimentary Boingo Wi-Fi access at high-traffic
      New York and San Francisco locations.

Business Outlook

Boingo Wireless is revising guidance for the full year ending December 31,
2012, as follows:

Full Year 2012

  *Revenue is expected to be in the range of $101.0 million to $103.0
    million.
  *Adjusted EBITDA is expected to be in the range of $30.5 million to $32.5
    million.
  *Net income attributable to common stockholders is expected to be in the
    range of $7.5 million to $8.5 million, or $0.21 to $0.23 per diluted
    share.

Conference call information

Members of Boingo Wireless' management will host a conference call to discuss
its third quarter 2012 financial results beginning at 4:30 pm ET (1:30 pm PT),
today, November 8, 2012. To participate in the conference call, investors from
the U.S. and Canada should dial (877) 407-0789 ten minutes prior to the
scheduled start time. International callers should dial (201) 689-8562. 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 income (loss)
attributable to common stockholders plus depreciation, accretion of
convertible preferred stock, income taxes, amortization of intangible assets,
stock‑based compensation expense, non-controlling interests expense and
interest 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) income, 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), the world's leading Wi-Fi software and
services provider, makes it easy, convenient and cost-effective for people to
enjoy Wi-Fi access on their laptop or mobile device at more than 550,000
hotspots worldwide. With a single account, Boingo users and Boingo's wholesale
partners can access the mobile Internet via Boingo Network locations that
include the top airports around the world, major hotel chains, cafés and
coffee shops, restaurants, convention centers and metropolitan hot zones.
Boingo, through its Concourse Communications Group subsidiary, operates Wi-Fi
and/or Cellular DAS networks at large-scale venues worldwide such as airports,
major sporting arenas, malls, and convention centers, as well as restaurants
and retail establishments. The company's Cloud Nine media platform enables
brand advertisers to reach a captive audience through high engagement Wi-Fi
sponsorships. For more information about Boingo, please visit
http://www.boingo.com and http://cloudnine.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 onthe
company'scurrent expectations and assumptions regardingits 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 risk 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, 2011 filed with the SEC on April 13, 2012 and Form 10-Q for the quarter
ended June 30, 2012 filed with the SEC on August 14, 2012. 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    Nine Months Ended
                                      September30,         September30,
                                      2012         2011     2012     2011
                                                                  
Revenue                               $26,017      $24,688  $74,506  $68,659
Costs and operating expenses:                                      
Network access                         10,061       9,647    29,577   27,153
Network operations                     3,693        4,097    10,895   11,765
Development and technology             2,300        2,449    7,792    7,192
Selling and marketing                  2,567        1,955    7,237    5,410
General and administrative             2,971        3,236    9,455    8,610
Amortization of intangible assets      296          323      778      1,392
Total costs and operating expenses     21,888       21,707   65,734   61,522
Income from operations                 4,129        2,981    8,772    7,137
Interest and other (expense) income,   33           13       170      (292)
net
Income before income taxes             4,162        2,994    8,942    6,845
Income taxes                           1,101        1,194    2,468    1,985
Net income                             3,061        1,800    6,474    4,860
Net income attributable to             284          138      579      420
non-controlling interests
Net income attributable to Boingo      2,777        1,662    5,895    4,440
Wireless, Inc.
Accretion of convertible preferred     —            —        —        (1,633)
stock
Net income attributable to common      $2,777       $1,662   $5,895   $2,807
stockholders, basic
                                                                   
Net income per share attributable to common                         
stockholders:
Basic                                $0.08        $0.05    $0.17    $0.13
Diluted                               $0.07        $0.05    $0.16    $0.11
                                                                  
Weighted average shares used in computing net income per             
share attributable to common stockholders:
Basic                                 35,080       33,139   34,618   20,865
Diluted                               37,337       36,678   37,324   24,453


Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
                                                                
                                                   September30, December31,
                                                   2012          2011
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                           $57,350       $93,933
Restricted cash                                     465           465
Marketable securities                               37,219        —
Accounts receivable, net of allowances of $92 and   12,019        7,382
$107, respectively
Prepaid expenses and other current assets           2,152         1,103
Deferred tax assets                                 2,088         2,366
Total current assets                                111,293       105,249
Property and equipment, net                         45,971        39,717
Goodwill                                            26,744        25,512
Other intangible assets, net                        10,547        9,511
Deferred tax assets                                 4,781         4,083
Other assets                                        4,946         4,848
Total assets                                        $204,282      $188,920
                                                                
Liabilities, convertible preferred stock and stockholders' equity 
(deficit)
Current liabilities:                                             
Accounts payable                                    $5,293        $4,573
Accrued expenses and other liabilities              10,949        12,759
Deferred revenue                                    17,817        13,575
Current portion of capital leases                   42            205
Total current liabilities                           34,101        31,112
Deferred revenue, net of current portion            27,108        27,754
Long-term portion of capital leases                 140           197
Other liabilities                                   307           778
Total liabilities                                   61,656        59,841
                                                                
Commitments and contingencies                                   
                                                                
Stockholders' equity (deficit):                                  
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, 35,162 and 33,584 shares issued and     4             3
outstanding at September30, 2012 and December31,
2011, respectively
Additional paid in capital                          178,372       170,721
Accumulated deficit                                 (35,947)      (41,842)
Total common stockholders' equity                  142,429       128,882
Non-controlling interests                           197           197
Total stockholders' equity                         142,626       129,079
Total liabilities, convertible preferred stock and  $204,282      $188,920
stockholders' equity


Boingo Wireless,Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
                                                                    
                                                            NineMonthsEnded
                                                            September30,
                                                            2012     2011
Cash flows from operating activities                                 
Net income                                                   $6,474   $4,860
Adjustments to reconcile net income including
non-controlling interests to net cashprovided by operating          
activities:
Depreciation and amortization of property and equipment     11,672   8,894
Amortization of intangible assets                            778      1,392
Stock-based compensation                                    2,163    2,275
Forgiveness of notes receivable from stockholder             —        103
Excess tax benefits from stock-based compensation            (1,531)  —
Change in fair value of preferred stock warrants             —        140
Change in deferred income taxes                              (420)    (857)
Changes in operating assets and liabilities, net of effect           
of acquisition:
Accounts receivable                                         (4,053)  2,054
Unbilled receivables                                         671      (304)
Prepaid expenses and other assets                            1,767    54
Accounts payable                                             (821)    55
Accrued expenses and other liabilities                       (3,552)  419
Deferred revenue                                            3,596    901
Net cash provided by operating activities                    16,744   19,986
Cash flows from investing activities                                 
Increasein restricted cash                                 —        (65)
Purchase of marketable securities                           (52,232) —
Sales of marketable securities                               15,013   1,000
Purchases of property and equipment                          (15,755) (13,154)
Acquisition, net of cash acquired                            (3,185)  —
Contractual payments related to business acquisition         (14)     (127)
Net cash used in investing activities                        (56,173) (12,346)
Cash flows from financing activities                                 
Excess tax benefits from stock-based compensation            1,531    —
Proceeds from exercise of stock options                      2,124    602
Payments of capital leases                                   (189)    (330)
Payments to non-controlling interests                        (620)    (547)
Proceeds from issuance of common stock upon initial public   —        48,297
offering
Offering costs                                               —        (2,529)
Net cash provided by financing activities                   2,846    45,493
Net increase in cash and cash equivalents                    (36,583) 53,133
Cash and cash equivalents at beginning of period             93,933   25,721
Cash and cash equivalents at end of period                   $57,350  $78,854
Supplemental disclosure of cash flow information                     
Cash paid for taxes                                         $650     $1,194
Supplemental disclosure of non-cash investing and financing          
activities
Conversion of convertible preferred stock into common stock  —        124,602
Property and equipment and software maintenance costs in     4,129    2,247
accounts payable, accruedexpenses and other liabilities
Accretion of convertible preferred stock                     —        1,633
Exercise and conversion of preferred stock warrants into     —        272
common stock


Boingo Wireless,Inc.
Schedule of Non-GAAP Reconciliations
(In thousands)
(Unaudited)
                                                                  
                                        Three Months Ended Nine Months Ended
                                        September30,     September30,
                                        2012      2011     2012      2011
                                                                  
                                                                  
Net income attributable to common       $2,777    $1,662   $5,895    $2,807
Stockholders                                                       
Depreciation and amortization of                                 
Property and equipment                   3,798     3,555    11,672    8,894
Accretion of convertible preferred stock —         —        —         1,633
Income tax expense                       1,101     1,194    2,468     1,985
Amortization of intangible assets        296       323      778       1,392
Stock-based compensation expense         218       1,374    2,163     2,275
Non-controlling interests                284       138      579       420
Interest expense (income), net           (33)      (13)     (170)     292
Adjusted EBITDA                          $8,441    $8,233   $23,385   $19,698

CONTACT: Christian Gunning
         Vice President, Corporate Communications
         cgunning@boingo.com
         (310) 586-4009
        
         Andrew Greenebaum / Laura Foster
         Addo Communications
         andrewg@addocommunications.com /
         lauraf@addocommunications.com
         (310) 829-5400
 
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