Boingo Wireless announced Thursday that it exceeded revenue guidance for the third quarter despite a drop in profits.

The Westwood Wi-Fi hotspot provider said third quarter net income was $400,000 (1 cent per share), down from $2.8 million (7 cents) for the same period last year. Revenue rose 10 percent to $28.6 million. That's up from Boingo's estimated $26.5 million to $28.5 million.

"Our positive momentum continued through the third quarter, with major new managed and operated networks taking center stage," Boingo Chief Executive David Hagan said in a statement. "We continued to invest in the business – in the context of upgrading existing networks to better meet the needs of rapidly growing data demand, and also in the acquisition and deployment of new networks."

The company lowered its guidance for the full year, estimating a net loss of up to 6 cents per share and revenue between $106 million and $108 million.

Shares closed down 32 cents, or nearly 5 percent, to $6.63 on the Nasdaq prior to the earnings announcements.

For reprint and licensing requests for this article, CLICK HERE.