Boingo Wireless Reports Strong First Quarter 2013 Results

Boingo Wireless Reports Strong First Quarter 2013 Results

                        -- Launches Roaming with AT&T
                    -- Doubles Size of Advertising Network
             -- Exceeds Revenue and Meets Profitability Guidance
                       -- Announces Share Buyback Plan

LOS ANGELES, May 9, 2013 (GLOBE NEWSWIRE) -- Boingo Wireless (Nasdaq:WIFI),
the leading DAS and Wi-Fi provider that serves consumers, carriers and
advertisers worldwide, today announced the company's financial results for the
first quarter ended March 31, 2013.

First Quarter 2013 Financial Highlights

Boingo Wireless reported revenue of $23.1 million, which was above the
company's guidance range, as compared to $24.2 million for the first quarter
of 2012. Net loss attributable to common stockholders was ($1.1) million, or
($0.03) per diluted share. This compares to net income attributable to common
stockholders of $1.7 million, or $0.05 per diluted share, for the first
quarter of 2012.

Adjusted EBITDA was $3.6 million compared to $8.2 million for the first
quarter of 2012. Adjusted EBITDA, which is a non-GAAP financial measure, is
defined below and is reconciled to net (loss) income, the most comparable
measure under GAAP, in the schedule entitled "Reconciliation of Net (Loss)
Income Attributable to Common Stockholders to Adjusted EBITDA."

Operational Highlights

  *An agreement with Starbucks naming Boingo the exclusive provider of
    advertising and sponsorship services for the Wi-Fi networks in more than
    7,000 of its company-owned stores in the United States and Canada.
  *A global Wi-Fi roaming agreement with AT&T, giving the carrier access to
    all of Boingo's Wi-Fi hotspots in its managed and operated locations. In
    the first quarter, AT&T launched access for customers traveling abroad at
    Boingo's Wi-Fi hotspots in major international airports as part of their
    global data roaming plans. Additionally, as part of the agreement, Boingo
    customers will be able to access AT&T's network of Wi-Fi hotspots
    throughout the United States.
  *Agreements to manage and operate Wi-Fi services at three major airports in
    China: GuangZhou Baiyun International Airport (CAN); Shanghai Pudong
    International Airport (PVG); and Shanghai Hongqiao International Airport
    (SHA), further establishing Boingo in China with managed services at four
    of the top five airports in the country.
  *The availability of Boingo's new state-of-the-art neutral host Wi-Fi
    network at Dallas Love Field, in conjunction with the airport's launch of
    its upgraded North Concourse, and the pending launch of a new
    multi-carrier DAS network in the modernized and expanded terminal.
  *The announcement of a roaming agreement with GOWEX to offer Boingo
    customers access to 1,400 additional Wi-Fi hotspots in more than 50 cities
    throughout Spain, France, Ireland and Belgium, including metro hotzones
    and public transportation.
  *The release of Boingo's Wi-Finder app for the Windows 8 operating system
    leveraging the new tile-based Metro user interface.
  *The launch of Boingo's Wi-Finder app for iOS on iTunes offering customers
    the ability to use their iTunes accounts to purchase a Boingo
    subscription.
  *The announcement of a merger agreement to acquire Endeka, the sole
    provider of commercial Wi-Fi and IPTV services to six United States
    military bases in the West and to federal law enforcement training
    facilities.

Management Commentary

"2013 is off to a strong start, with revenues exceeding the high-end of our
expectations," said David Hagan, Chief Executive Officer of Boingo Wireless.
"As we continue to expand our global presence through managed and operated,
roaming, and advertising network agreements, we increase our opportunity to
monetize those assets through a diverse mix of services, including retail
sales, wholesale offload and advertising sponsorships."

Mr. Hagan continued, "Our global Wi-Fi roaming agreement with AT&T launched,
bringing the first AT&T Wireless customers onto Boingo's network. We continue
to expand our managed and operated network internationally, signing agreements
to provide service at three new airports in China, giving us a foothold in
four of the five largest airports in China. And we more than doubled the size
of our advertising network, with agreements as the exclusive Wi-Fi advertising
and sponsorship provider in more than 7,000 additional locations."

Corporate Developments

On April 2, 2013, Boingo Wireless announced that its Board of Directors has
authorized a stock repurchase program under which the company may repurchase
up to $10 million of its outstanding common stock. Boingo plans to make such
purchases at prevailing prices, subject to applicable rules and regulations of
the Securities and Exchange Commission.

On May 6, 2013, Boingo Wireless announced the appointment of Nick Hulse as
President of Boingo Wireless. In this role, Hulse will be responsible for
maximizing revenue through the Sales, Marketing, Product, and Business
Development teams.Hulse brings nearly 25 years of executive experience in
sales, marketing, and operations positions, most recently as the Chief Revenue
Officer for the Rubicon Project.

Business Outlook

Boingo Wireless is initiating guidance for the second quarter ending June 30,
2013, as follows:

Second Quarter 2013

  *Revenue is expected to be in the range of $23.5 million to $25.5 million.
  *Adjusted EBITDA is expected to be in the range of $4.5 million to $6.0
    million.
  *Net loss attributable to common stockholders is expected to be in the
    range of ($1.5) million to ($0.5) million, or a loss of ($0.04) to $0.00
    per diluted share.

Boingo Wireless is reiterating guidance for the full year ending December 31,
2013, as follows:

Full Year 2013

  *Revenue is expected to be in the range of $106.0 million to $110.0
    million.
  *Adjusted EBITDA is expected to be in the range of $28.5 million to $31.5
    million.
  *Net income attributable to common stockholders is expected to be in the
    range of $1.0 million to $3.0 million, or $0.03 to $0.08 per diluted
    share.

Conference Call Information

Members of Boingo Wireless' management will host a conference call to discuss
its first quarter 2013 financial results beginning at 4:30 pm ET (1:30 pm PT),
today, May 9, 2013. 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 (loss) income
attributable to common stockholders plus depreciation and amortization of
property and equipment, income tax (benefit) expense, amortization of
intangible assets, stock‑based compensation expense, non-controlling interests
and interest and other 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 (Nasdaq:WIFI) helps the world stay connected. Our 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, shopping malls, restaurants, universities, and
military bases. The Boingo platform is the only monetization engine of its
kind, driving revenue through carrier offload, advertising, location-based
data analytics, and consumer products like IPTV, high-speed broadband, and
Wi-Fi. 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 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, 2012 filed with
the SEC on March 18, 2013, which we incorporate 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)
                                                                   
                                                          ThreeMonthsEnded
                                                           March31,
                                                          2013      2012
Revenue                                                    $23,134 $24,187
Costs and operating expenses:                                       
Network access                                             9,670     9,855
Network operations                                         3,951     3,454
Development and technology                                 3,136     2,658
Selling and marketing                                      2,990     2,251
General and administrative                                 4,490     3,327
Amortization of intangible assets                          399       235
Total costs and operating expenses                         24,636    21,780
(Loss) income from operations                              (1,502)   2,407
Interest and other income, net                             47        56
(Loss) income before income taxes                          (1,455)   2,463
Income tax (benefit) expense                               (467)     658
Net (loss) income                                          (988)     1,805
Net income attributable to non-controlling interests       133       148
Net (loss) income attributable to common stockholders      $(1,121)  $1,657
                                                                   
Net (loss) income per share attributable to common                  
stockholders:
Basic                                                      $(0.03)   $0.05
Diluted                                                    $(0.03)   $0.05
                                                                   
Weighted average shares used in computing net (loss)                
income per share attributable to common stockholders:
Basic                                                      35,597    33,969
Diluted                                                    35,597    36,632


Boingo Wireless, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except per share amounts)
                                                                
                                                                
                                                      March31,  December31,
                                                       2013       2012
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                              $46,648  $58,138
Restricted cash                                        30         30
Marketable securities                                  45,224     41,558
Accounts receivable, net                               13,413     10,977
Prepaid expenses and other current assets              7,015      2,072
Deferred tax assets                                    1,204      1,204
Total current assets                                   113,534    113,979
Property and equipment, net                            49,013     42,411
Goodwill                                               33,045     26,744
Intangible assets, net                                 16,543     10,594
Deferred tax assets                                    1,195      4,256
Other assets                                           2,835      4,548
Total assets                                           $216,165 $202,532
                                                                
Liabilities and stockholders' equity                             
Current liabilities:                                             
Accounts payable                                       $5,132   $4,990
Accrued expenses and other liabilities                 12,777     11,019
Deferred revenue                                       21,824     17,329
Total current liabilities                              39,733     33,338
Deferred revenue, net of current portion               26,549     24,123
Other liabilities                                      2,096      572
Total liabilities                                      68,378     58,033
                                                                
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, 35,650 and 35,483 shares issued            4          4
andoutstanding at March31, 2013 and December31,
2012, respectively
Additional paid-in capital                             183,074    178,219
Accumulated deficit                                    (35,668)   (34,547)
Total common stockholders' equity                      147,410    143,676
Non-controlling interests                              377        823
Total stockholders' equity                             147,787    144,499
Total liabilities and stockholders' equity             $216,165 $202,532


Boingo Wireless,Inc.
Reconciliation of Net (Loss) Income Attributable to Common Stockholders to
Adjusted EBITDA
(Unaudited)
(In thousands)
                                                                
                                                    ThreeMonthsEnded
                                                     March31,
                                                    2013         2012
Net (loss) income attributable to common             $(1,121)     $1,657
stockholders
Depreciation and amortization of property and        4,133        4,515
equipment
Income tax (benefit) expense                         (467)        658
Amortization of intangible assets                   399          235
Stock-based compensation expense                    602          993
Non-controlling interests                           133          148
Interest and other income, net                      (47)         (56)
Adjusted EBITDA                                     $3,632     $8,150

CONTACT: Christian Gunning
         Vice President, Corporate Communications
         cgunning@boingo.com
         (310) 586-4009
        
         Laura Bainbridge / Kimberly Orlando
         Addo Communications
         laurab@addocommunications.com  /
         kimberlyo@addocommunications.com
         (310) 829-5400