Boingo Wireless Reports First Quarter 2021 Financial Results

Boingo Wireless (NASDAQ: WIFI), the leading distributed antenna system (“DAS”) and Wi-Fi provider that serves carriers, consumers, property owners and advertisers worldwide, today announced the Company's financial results for the first quarter ended March 31, 2021.

Management Commentary

“Our first quarter adjusted EBITDA increased 13.9% year-over-year to $21.3 million despite revenue being consistent with the prior year period,” commented Mike Finley, Chief Executive Officer, Boingo Wireless. “Growth in our Military and Private Networks and Emerging Technologies segments was offset by ongoing declines in our Legacy retail and advertising products due to the pandemic. We continued to execute with several new business wins during the quarter including an exciting agreement with Rockefeller Center in New York to construct the venue’s first Wi-Fi 6 network. We look forward to continuing to advance our business strategy and maximize value for our stockholders through the pending merger agreement with Digital Colony which remains on track to close during the second quarter of 2021.”

First Quarter 2021 Consolidated Financial Highlights

• Revenue of $59.9 million was consistent with the first quarter of 2020.
• Net loss attributable to common stockholders was $(6.4) million, or $(0.14) per diluted share, compared to $(4.6) million, or $(0.10) per diluted share, in the first quarter of 2020.
• Adjusted EBITDA of $21.3 million increased 13.9% compared to $18.7 million in the first quarter of 2020. 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 of $19.0 million was consistent with the first quarter of 2020.
• Free cash flow was $(3.2) million compared to $(3.6) million in the first quarter of 2020. 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."
• Cash, cash equivalents and marketable securities were $36.3 million at March 31, 2021, down from $40.7 million at December 31, 2020. As of March 31, 2021, the Company had no amounts outstanding and $150.0 million of remaining borrowing capacity under its revolving credit facility.

First Quarter 2021 Segment Results

Carrier Services

Revenue of $26.9 million was consistent with the first quarter of 2020. Gross profit margin of 34.0% decreased 570 basis points compared to 39.8% in the first quarter of 2020. Income from operations of $2.6 million decreased 55.3% compared to $5.9 million in the first quarter of 2020.

Military

Revenue of $20.6 million increased 14.7% compared to $18.0 million in the first quarter of 2020. Gross profit margin of 77.0% increased 200 basis points compared to 75.0% in the first quarter of 2020. Income from operations of $7.3 million increased 51.4% compared to $4.8 million in the first quarter of 2020.

Private Networks and Emerging Technologies

Revenue of $0.9 million increased 75.1% compared to $0.5 million in the first quarter of 2020. Gross profit margin of 70.0% compared to a non-meaningful amount in the first quarter of 2020. Income from operations of $0.1 million decreased 83.9% compared to $0.4 million in the first quarter of 2020.

Multifamily

Revenue of $5.3 million increased 1.5% compared to $5.2 million in the first quarter of 2020. Gross profit margin of 26.4% decreased 220 basis points compared to 28.6% in the first quarter of 2020. Loss from operations of $(1.7) million compared to $(1.9) million in the first quarter of 2020.

Legacy

Revenue of $6.2 million decreased 33.3% compared to $9.3 million in the first quarter of 2020. Gross profit margin of 51.1% decreased 230 basis points compared to 53.4% in the first quarter of 2020. Loss from operations of $(0.3) million compared to income from operations of $0.6 million in the first quarter of 2020.

Business Highlights

• The Company announced it has been selected by Rockefeller Center to design, install and manage a Wi-Fi 6 network to seamlessly deliver connectivity to the venue’s daily visitors, enable enhanced business operations, and to set the stage for a high-bandwidth experience for property tenant employees.
• The Company joined the Qualcomm® Smart Cities Accelerator Program to help power smart cities through new wireless technology including 5G, Private Networks over CBRS, and Wi-Fi 6 to enrich lives through the transformation of city infrastructure and services.
• The Company announced it has been selected by Foulger-Pratt, a real estate investment and development firm, to launch managed Wi-Fi services at three luxury multifamily properties in Washington, D.C. Boingo managed wireless networks will bring residents at Beckert’s Park, ONE501 and Press House fast, instant connectivity inside apartments and throughout all common areas.
• As of March 31, 2021, the Company had a total of 76 DAS venues live comprised of 41,500 DAS nodes and an additional 11,400 nodes in backlog. This compares to 73 venues live comprised of 39,500 nodes as of March 31, 2020.

Acquisition by Digital Colony

On March