Boingo Wireless (WIFI) saw its loss narrow to $6.88 million, or $0.18 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $9.98 million, or $0.27 a share. Revenue during the quarter grew 28.51 percent to $44.33 million from $34.50 million in the previous year period. Gross margin for the quarter expanded 489 basis points over the previous year period to 74.59 percent. Operating margin for the quarter stood at negative 14.84 percent as compared to a negative 28.02 percent for the previous year period.
Operating loss for the quarter was $6.58 million, compared with an operating loss of $9.67 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $12.36 million compared with $5.65 million in the prior year period. At the same time, adjusted EBITDA margin improved 1151 basis points in the quarter to 27.88 percent from 16.37 percent in the last year period.
"After a record-setting 2016, our strong results and momentum continued with our tenth consecutive quarter of double-digit, year-over-year revenue growth which exceeded our guidance,” commented David Hagan, chief executive officer of Boingo Wireless. "We are pleased our net loss attributable to common stockholders was reduced to $6.9 million and Adjusted EBITDA was also very strong with nearly 119% growth over last year, which represents our seventh consecutive quarter of EBITDA margin expansion due to strength in DAS, military and Wholesale-Wi-Fi. The first quarter was the second largest venue acquisition quarter in our Companys history with the addition of 17 new DAS venues, including five Hawaiian airports, the new Transbay Transit Center in San Francisco and nine PATH stations in New York. Additionally, we achieved an important milestone in Military, exceeding 40% subscriber penetration for the first time with the addition of 21,000 new subscribers."
For the second-quarter, Boingo Wireless forecasts revenue to be in the range of $43.50 million to $47.50 million. Boingo Wireless forecasts revenue to be in the range of $180 million to $188 million for fiscal year 2017. Boingo Wireless projects net loss to be in the range of $8.50 million to $5.50 million for the second-quarter. For financial year 2017, Boingo Wireless projects net loss to be in the range of $29 million to $25 million. The company expects diluted loss per share to be in the range of $0.22 to $0.14 for the second-quarter. For fiscal year 2017, the company expects diluted loss per share to be in the range of $0.74 to $0.64.
Operating cash flow drops significantlyBoingo Wireless has generated cash of $25.53 million from operating activities during the quarter, down 37.78 percent or $ 15.50 million, when compared with the last year period. The company has spent $18.64 million cash to meet investing activities during the quarter as against cash outgo of $45.52 million in the last year period.
The company has spent $7.40 million cash to carry out financing activities during the quarter as against cash inflow of $4.41 million in the last year period.
Cash and cash equivalents stood at $18.98 million as on Mar. 31, 2017, up 29.53 percent or $4.33 million from $14.65 million on Mar. 31, 2016.
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