Shares of Boingo Wireless Inc. took another dive on Wednesday, a day after the Wi-Fi hotspot provider reported a larger net loss in its first quarterly report since going public.
After the Tuesday markets closed, the Los Angeles company reported a net loss of $329,000 (-6 cents per share) for the quarter ended March 31, compared with a net loss of $127,000 (-2 cents) a year earlier. Revenue rose more than 13 percent to $21 million. Analysts’ expectations were not available.
Emphasizing his company’s success in expanding the number of hotspots in airports, cafes and other public places, Chief Executive David Hagan also described the revenue and adjusted earnings growth as “solid.” EBITDA (earnings before interest, taxes, depreciation and amortization) rose 19 percent to $5 million.
“We believe our performance highlights the strength and reach of Boingo’s global Wi-Fi platform, which currently spans over 325,000 hotspots in 100 countries,” Hagan said in a statement. “During the quarter, we further extended the reach of our platform across new devices, venues and geographies, which helped drive year-over-year revenue increases in both our retail and wholesale businesses.”
In guidance for the current second quarter, the company expects net income to be in the range of $1.1 million to $1.6 million, or 3 to 4 cents per share. Revenue is expected to be $22 million to $23 million. For the full year, net income is expected to be $3.9 million to $4.9 million, or 11 to 14 cents per share. Revenue is expected to be $92 million to $94 million.
Shares closed down $1.46, or 16.6 percent, to $7.41 on the Nasdaq. Boingo’s stock price has fallen 45 percent since its May 3 initial public offering.
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