Market Overview

Boingo Wireless Supported By Military, Forecast Reduced At Credit Suisse

Share:

In a report published Friday, Credit Suisse analysts maintained an Outperform rating on Boingo Wireless Inc (NASDAQ: WIFI), with a price target of $9.

Boingo Wireless reported its 1Q15 results ahead of the guidance. The company announced revenue and adjusted EBITDA of $29.4 million and $3.2 million, higher than its guidance of $26.5-$28.5 million and $1-$2.5 million, respectively.

"Boingo reported a top and bottom line beat as military revenue drove the upside to guidance and CS estimates adding 12k new military subscribers in 1Q15 and 7k beds came online. The military revenue outperformance resulted in higher gross margin on positive mix," the analysts mentioned.

Boingo currently offers its Wi-Fi services to 137k beds and expects another ~100k beds to come online in FY15.

The company guided to 2Q15 revenue and adjusted EBITDA of $30.5-$32.5 million and $5-$6.5 million, respectively, while reiterating its FY15 revenue and adjusted EBITDA guidance of $134m-$140m and $27m-$30m, respectively.

Boingo's advertising revenues declined y/y from a tough comp in 1Q14. "We expect more meaningful contribution from carrier offload in FY15 and beyond as Boingo is now in-market with 40 million handsets and Boingo access points. Consistent with the results, we have moderated our trajectory for Advertising Revenue while increasing the decay rate for the retail subscription business on a go-forward basis," the analysts stated.

The adjusted EBIDA estimate for 2015 has been reduced from $27.8 million to $27.2 million.

Latest Ratings for WIFI

DateFirmActionFromTo
Oct 2020OppenheimerUpgradesPerformOutperform
Mar 2020Credit SuisseMaintainsOutperform
Mar 2020OppenheimerMaintainsOutperform

View More Analyst Ratings for WIFI
View the Latest Analyst Ratings

 

Related Articles (WIFI)

View Comments and Join the Discussion!

Posted-In: Credit SuisseAnalyst Color Reiteration Analyst Ratings

Latest Ratings

StockFirmActionPT
WNSNeedhamMaintains85.0
THCUBSMaintains60.0
UPLDCanaccord GenuityMaintains57.0
EJefferiesInitiates Coverage On
EQNRJefferiesInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com