WIFI - Earnings call transcript Q2 2018

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Operator

Greetings, and welcome to Boingo Wireless Inc.

Second Quarter 2018 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Kim Orlando of ADDO Investor Relations. Please go ahead.

Kimberly Orlando

to Wireless welcome Earnings Quarter and Call. Conference you, the second Boingo XXXX Thank should to p.m. have release, everyone now, By access issued at which the today approximately X:XX was press earnings Eastern Time.

remarks of been securities In an on our laws, Relations replay. www.boingo.com tab. the earnings for clicking forward-looking has and This being our considered within acquire partners of and our growth venue Boingo's addition, about operations, the it made are call and Elauwit our is at forward-looking that website guidance potential including available today, meaning opportunities. future is supplement business the include statements statements strategies agreement available Networks, Investor of on results we with market Investor will by and portion webcast, In relationships plans, to and

may your to management in addition, questions. make additional statements forward-looking response In

risks to we company flow GAAP analytical operations. to provide update adjusted with will such the to we us with regarding with are XXXX; Forward-looking filings in cause combination materially undertakes uncertainties our XXXX, forward-looking statements. management's refer the as plan X, and X-K with measures filed SEC knowledge Elauwit call, August A XXXX, from ended and statements that today, detailed risks filed file results, such subject December based March as forward-looking obligation the XXXX, Form of transaction to most differ on March the XXXX; on year and XX-K for any of On are no ended X, XX, our used contained The with on certain EBITDA SEC statements. actual our understand our cash and the recent May results Form free uncertainties when SEC. non-GAAP are the expectations discussion XX-Q and Form that, other the XX, in current for additional XX, and and to the may tools this to quarter

earnings We www.boingo.com. and Relations have will comparable call David posted directly Executive our I'll be And press release the Chief at measures in our Boingo's Hagan. Investor that, to with to provided the which hand website the reconciliations over most Officer, section of GAAP financial on

David Hagan

Kim. and us XXXX second financial thanks Thanks, everyone, afternoon, discuss Good Boingo's joining to for results. quarter

Before deal I dive We're us big record expand the let into provider military Internet Elauwit shared. student about excited minute Networks, this news By has mention it acquire to results, of very multi-family into a now, high-speed Boingo we as just to our seen to probably take me QX you've enables verticals. properties. broadband announcement leading and quickly new to business that housing agreed the other successful a our

I'm and places, to fact, the sounds welcome meeting so Pete team Boingo different headquarters South because forward to In in today, their pleased quarters. deal but a like QX. to share our and revenue double-digit now, going with to forward. sharing momentum a growth continue. about more XX I'll in let's the Carolina are at we X to our lot results few it Elauwit We streak We've contributions and you that are. consecutive it's in I'm strong minutes, for extended Charleston, here the look of talk Elauwit's I be just finished employees

of venues services networks. our of Boingo those the explosive leverage products quarterly company's our consistent of which the our building highest unique and well guidance revenue overlaying networks to to Second acquiring and wireless does this venues, growth strategy in execution is reported history. up This line top mix is range overall mobile a wireless rights year-over-year and our above high those $XX.X quarter long-term was against the by million, data. at result revenue at to growth XX% then of end monetize

million, year-over-year beating drivers: to EBITDA guidance. high of X second military. which exceeded increase XXth Adjusted consecutive ongoing margin our was expansion, addition EBITDA for That's DAS, the main adjusted and quarter $XX.X reflects our over momentum our guidance of the year-over-year of the from carrier quarter EBITDA we range, high-end revenue a end range also offload of In XX%. business

each take Let's of the highlights some at look a starting the with for second quarter, in DAS.

have live, continues of increase of our with this of carriers We for stat an XX very venues average been QX, the very Our the believe robust. in and reflects product have DAS years. the be industry X of We're venues quality best for an from to currently venues. X DAS that X.X proud and it's live venues

world. On the very deals XXXX, in year-over-year, through second of of XX the the DAS This provider front, XXXX, the the largest QX. with XX our now history. company's so of backlog. with half XX with networks deals in venues contracts up remains high. carrier half the ahead of in indoor XX,XXX first quarter that more means in nicely XX,XXX live, nodes compares us have X activity which in and we've than entire we including first quarter makes DAS entered us deployed DAS XXXX, closed of very we the we've carrier DAS DAS We This and in venues have nodes XX believe what We

runway of long a growth expecting ahead. we're So

We number is by driver, of growth with number offload WiFi, offload, which a We the now on and be to carriers which bases, cost bit per all carrier and mobile pleased in growing a to offload fact connects to continues those airport now carriers believe less spectrum. is military will licensed the grow, compared and strong. steady offload enabled usage locations with Turning revenue record mobile basis that continues momentum. growth utilize X QX, our data had data, of at carrier with of to also that explosive expensive on second continued we're so driven

in question As when. we've believe times but a past, the said many if, not we it's of

for a band the successfully as the connectivity spectrum. forward demonstration cellular Boingo our convergence deployment private launch industry, at is Dallas the is major map an on The trial future. the a deployed at leverages part that of in excited the pivotal marks announced We for and step unlicensed Airport. of and, U.S. the We're Speaking help step will Love holds era. accommodate CBRS road that part Field spectrum licensed, of this has XG airport. licensed this technology exciting the is technical shared believe that toward network spectrum, a the wireless future first-known and a is The commercial we CBRS case, network in gigahertz what for recently LTE CBRS convergence, X.X technology

military driver of broadband. growth, Finally, let's discuss third the our

built beds QX, service in total the X,XXX number launched of beds starters, and bringing another in we For to XXX,XXX.

subscribers based add remainder We throughout the in of penetrated X,XXX-or-so to another to extremely added occupancy expect subscribers we're the the XXX,XXX, which bases. to the We second XX%. believe total well the year. improved bringing of penetration quarter, levels We on number X,XXX beds subscriber incremental the of

While we of expect increasing selling and users we're of new services addition modest on highest the of and the growth forward, products speed focused ARPU through by service. going existing more effectively

consumer we for housing, we similar delivery. in both our the year, a began significantly. the served explore last experience are might barracks the but and quarter service how terms leverage broadband vertical. of of new, to military year-over-year grew second a the As we our into business, The Because serve student success to of very result, ARPU similar

rate lot growth made that each MDU of million builds vertical multifamily, market across one with of was MDU the MDU So is new or XX sense a year, the market. and U.S., XXX,XXX a student approximately The properties about XX%.

our efforts we XX-plus While been a market moving and believe into consider Elauwit for greatly a acquisition by us. few years vertical years. derisks MDU organically, for the They've we developed in this doing opportunity reputation, having this jump-starts quality the

to architect properties manage line researched Elauwit military solution, monthly their recurring we we repeatedly very business up student serve and network, the a to is the vast across DAS which wireless WiFi onetime country. A and a high-speed which the network to the our has fee to Elauwit operate built to then properties with products Elauwit hire and when similar is fee property there network to the same model. which that back market, housing, more on no came is Today, direct is of standard exceptional care, high-speed property bases. includes relationship than this is Under demographic company billing right players in lease. Elauwit model, WiFi As the with bulk-billed majority owner part the are our deploy and Rather it of values. XXX the core those who owners a as consumer. customer the as the end provides paid delivered name service great Elauwit's in

multifamily per recently or are property. cost is As consumer expanded or student acquisition properties. housing beyond to no effect such, churn, in there has Elauwit XXX% and penetration MDU rates consumer

having the property BXB been for Here, over it's cable is is big building the Elauwit relationship, and their military a the service buildings. the Like installation also vertical to there, high-speed broadband similar a the rather it is the think than is because very military in immediately. to differentiates cable WiFi business instantaneous reasons. because a moves appointment Boingo's this service not wait service co. and roll or is few competitive We to activated this who very to very our direct truck model advantage with broadband has this from successful a If it provides or already a consumer. except owners experience for operators Elauwit an be attractive to may can telcos new tenant service, still there upside

well opportunity putting to funding on to with First, is basis. extremely there while has builds, work network Elauwit owners a share property growing think grow we business an our done capital market their selective the by

brand additional Second, we we have business. believe to help muscle marketing win and the

with we for importantly, REIT, had additional and opportunity. about and conversations opportunity monetization. and customer, Finally, small services, they're current most creating very layer is on large products about like the a cell, perhaps there this Elauwit excited ample We've a believe to already

leveraging Boingo revenue our for Elauwit success results can adjusted EBITDA reflects our family. executing We're model segment you both about Boingo's and our we're new the team the and strategic QX the against also broadband welcome of to it to As plan. business market thrilled in and as thrilled excited expertise in are our tell, this exceeded expectations strength our

Hovenier, Pete? turn Pete Officer, to Chief second it in through financials our quarter detail. walk our I'll Financial you over Now to

Peter Hovenier

increase in our the reviewing operating by year year-over-year will Thanks, revenue. second retail and partially full the $XX.X and strong revenue by an third offset results was DAS prior in conclude our the begin ended for wholesale for financial and quarter outlook million, financial quarter over reflected XXXX, growth year other declines performance and XX, and Dave. June was period. Revenue we'll and of quarter WiFi, advertising XXXX. metrics Total XX.X% second I and the military key for

revenue diversified down of military to the of WiFi other across revenue DAS XX%, advertising revenue, unchanged from quarter, of down year streams and represented down XX%; X% revenue, percentage was XX% from quarter; prior wholesale XX%, as from a from the X%. As accounted for and up X%, XX%; compared retail prior XX%; represented and year from was

telecom revenue of of DAS Total related the by was and $XX.X In from The of million, increased contribution average improvement included access new million XX% million, subscribers. revenues of DAS period. XX.X% for primarily an last the the period total revenue standard, ASC total DAS and in fee million from year-over-year revenue total benefit partners. access increase fee primarily increase $XX terms increased adoption the Growth of million the revenue in revenue an was by was driven from to as to as revenue. revenue projects, XXX, $X.X accounting was revenue year. DAS category build-out Military versus monthly build-out revenue representing subscriber project $X.X military revenue comparable increases quarter, year prior $XX.X of was representing which per well comprised operating a

$X.X network During a cash X,XXX to increase recurring these on cover continue the our come the decline prior strong to managed in us primarily operate fees venues. XXX,XXX the carrier with additional sold the primarily of pay $XX.X over quarter XX.X% revenue. incremental to the a million, during XX. compared network quarter, install, the increase partner prior of flow, services over prior to XX.X% military who We fees due beds, other year believe single-use in their was ad period. due period, partners, retail and year bringing to was from to units year decreased we a to the at to and primarily the decrease Advertising was total period an driver opportunities reduced revenue and be extent, manage Wholesale and, the usage-based number built service $X.X due XX.X% of retail footprint prior offload over premium the infrastructure million, venue WiFi bases. period, representing to subscribers representing representing our and Retail as June beds as the to up revenue million, an higher year lesser a decline will implementation vertical from additional of

onetime our margin, maintenance due due, expense. technology million, primarily access and quarter the totaled million, as million, in of primarily WiFi the turning largely and and X% due revenues. which XX.X% primarily XXXX, prior depreciation The network Development hardware period Now in $X.X increases higher XX% expense a reflects year year revenue professional decreased expenses to to settlement of period were up points to to the General stock-based comparable XXXX plus to of higher higher and second operating shift million, well expense from a primarily XX.X%, year for and increase cost and Selling quarter, fees. prior quarter, Network XXXX revenue primarily, military streams, gross quarterly and an the cost defined expenses the driven hardware increase maintenance margin XXXX as million decrease as build-out revenue DAS by over $X.X approximately comparable expense $XX.X and is totaled the increase software software were an from and XXX basis million, comparable related depreciation our from venue $XX.X diversified administrative personnel-related partners higher-margin operations expenses. expenses $X.X due projects. the to Gross increased personnel-related XX.X% marketing increase in X.X% increase compensation expenses. quarter, share paid to an to services and expenses $X.X our and in was to cost, wholesale were prior expenses, in period. Network a increase primarily of access expenses.

profitability non-GAAP to share, diluted prior an attributable per year comparable for Adjusted measure, diluted per million, of our turning $X.XX compared a quarter. in XXXX Now Net to of EBITDA, income million, $X.XX quarter. million, stockholders was $X.X common increase was the a share, XX.X% loss $X measures to to net quarter. or the or $XX.X

comparable XX.X% percent As a total in revenue revenue, XXXX XX.XX%, quarter. from of of adjusted was EBITDA the up

EBITDA XXth year-over-year quarter second The our of marks consecutive quarter margin expansion.

for key metrics. DAS XXXX. XX,XXX, of Now X.X% nodes quarter in second up turning number year the the in the to network quarter of represents XX.X% nodes the yet of of from were our The the of up X.X% from DAS our prior period The of nodes and from up contract, XX first active number the which points XXXX. under backlog, as period but were number year and second up prior XX,XXX, not basis of quarter DAS quarter, from first end the

year versus quarter, Our and first base military for quarter prior the of of period XX.X% subscriber the subscribers XXX,XXX second the X.X% end the XXXX. was at up up

base the subscribers of of quarter down end period from first which year from XX.X% Connects, and at first were XX.X worldwide Our on our or quarter up and quarter, was XXXX. year the prior usage the of was X.X% the XXX,XXX second paid XXXX. the down from network prior from XX.X% X.X% up retail million, period approximately subscriber the

balance sheet. our discuss Moving to on

utilized that by build-out operator quarter, $XX.X million reimbursed are partners. Capital $XX.X and million XXXX. credit million June $XX.X DAS on June of projects we Total As the XX, totaled $XX.X down $XX.X facility second at was which included $XX.X expenditures for XX, XXXX. had million, equivalents million our available as debt million, cash XXXX, cash XX, and from infrastructure telecom March for of were

network were Our managed and new nonreimbursed capital builds, upgrades by expenditures and primarily, enhancements. network and driven, operated upgrades infrastructure various

may case as negative to generate from for experience free was Further which to $X.X As second in cash point, a we our flow, to the timing to of first in requirements, to ability a over receivables was related of excludes which of growth million a estimate working in reminder, measure, of and capital, XXX% in versus XXXX. were million, $X.X quarter positive of $XX Free the capital in the month. quarter X% time a time annual positive quarter, of fluctuations an prior X% the the to accounts our of first a month this the our flow, capital receivable over remain from half We million given confident be all the quarter third collections second we approximately non-GAAP XXXX. revenue. the XXXX increase although maintenance cash was

the manage free an quarter our to drive with third expansion cash to year a outlook goal shareholder value free now long-term in positive I and growth. on flow of of to to continue XXXX. majority basis will of opportunities network for business annual investing maximizing turn We will generate flow cash full by our the

to the the of $X.XX $XX For be range the in revenue million, ended share; attributable common expect to net or $X.X XXXX, range $X.XX to in in of EBITDA $XX we to September to adjusted a range the to million $XX million. quarter to of million loss million; to per of $XX be third $X.X and million diluted XX, total loss be stockholders

in margin of the we common December of implies or the expect $XX growth to year-over-year range million, is range. which an million midpoint are million, share; $XXX adjusted range the XXXX, $XX at For expected $XX million, total range; EBITDA midpoint loss the the a million million to and XX.X% to attributable be in of loss expected $XX at be to stockholders our $X.XX range to diluted the net as raising $X.XX of year ended representing per approximately full $XXX XX, of be revenue we guidance of in the follows: EBITDA to of to is the XX.X% to of

incremental third of and acquisition Elauwit Networks. full updated Our quarter from outlook reflects the the year revenue

assets of of the XXXX. acquire quarter XXXX we revenue revenue from and year of expect We full for million of $X $X to million Elauwit in the generate Networks third the

guidance further reflects profitability integration Our and acquisition. related nonrecurring expenses transaction this to

We will tax on to tax such, do allowance, income not XXXX. accrue tax and through valuation our benefits our material or as maintain expect statement expenses

a We as nominal as XX year expect diluted fully continue tax outstanding shares of million. well to approximately rate full

$XX to expenditure venue to Elauwit space continue approximately networks by to our financial military on network key look In We capitalize our capital Networks our majority We upgrades well as venues. as summary, annual and adjusted from high-growth on DAS XXXX, the new us pleased ahead MDU that, our history. WiFi and highest support tremendous million leveraging closing reflect quarter be success us. With of the allocated positions operational EBITDA in revenue builds securing I'll locations Further, both back and will continue remarks. setting and to with for turn for expect in we're with for execution XG execute Dave million strategy acquisition to to investing nonreimbursed of $XX over by extremely management-operated forward our our lies to results, Boingo's the budget financial we and believe the opportunity which and well strong it learnings ever and at that vertical. in stage

David Hagan

Pete. Thanks,

acquisition both of excited raised broadband we've and As for second row. market leveraging high the massive adjusted in the guidance positions shared, our space. believe challenges positioned With growth. year row, the second in beat well mobile for Pete in as data incredibly guidance a into like tackle to the proud open and wireless the for us Elauwit our the the market results. EBITDA the infrastructure for growing very Operator? revenue a are quarter expertise range end we're really We that, We segment leader of MDU I'd about questions. We're a a up to we in as new of just

Operator

terms Elauwit on the they're hear first revenue Great. question. David And Thanks, assuming going Stoss this forward. then on. Pete, I'm little than fee nice for money if the one Elauwit, more instance, from Congrats want revenue then so line $X operate profile an of or or million you upfront for and Pete, on which with information million even can take Anthony Hovenier maybe Craig-Hallum. what in the [Operator $X acquisition. ongoing Stoss what the Instructions] to a Dave sense like of between not? The Tony, I a that follow-up? bit on rate to profitability. expect share comes wondering margins Also, Anthony split Our access for for quick does the results and lower Elauwit? of Tony, build have the is one? you're and recurring at if the love QX question for I'd growth for we Also, revs making that margin is take for gross year to Hagan do you do. you a management-operated Peter networks, they QX, a

do about -- They upfront have they comes like are for this margin integration builds the EBITDA are in as we is the is use that or generated margin generating we like expecting the in about similar -- positive is in streams EBITDA is of the basis. at fees DAS in a basis will of that the today, onetime expenses. the XX% XX% at to then and gross -- comes not XXXX XX% margin from transaction recurring normally what we're from and margin, and going that comes but revenue our because So contribution higher build, XX%, gross the management recurring be revenue we comes access build any that lower of split to Elauwit on EBITDA, would which

Elauwit a more into really see going from you'll So flow-through EBITDA XXXX.

CBRS. Elauwit's be then, you seasonal anything on forward curious, seeing as your been Is Stoss about follow-ups. CBRS. start. on a And It's right, Hagan business line basis? David On thoughts yes. X CBRS. your you rate, for let rate. go to in on on me then quarterly them opportunity more in Anthony congrats growth the growing top I'm And of - you revenue lot a In So XX% Pete, Dave, terms guys related the should the there press

seasonality, seasonality definitely there is Elauwit on So to it.

It's think student a build-out. So market. about you housing big the

In fact, school. to for of the September kids then when in we're right the and go all back middle August it

one a finish if for that when that's is This on so networks, opportunity. first in CBRS have additional. in partnership opportunity I Field, an it. airport, Pete commercial on certainly, are shared the Love about back-office So with build first of commercial on we it CBRS, the and folks and in their band but is it We've we're that's excited there networks. CBRS seasonality, of for comment think we it's big anything did function. big of one them, And and Yes, been fans they Dallas Period. the spectrum using can that really

with parties not a at any that between devices it, we sign third you interact own. having the think it. they of in spectrum, it's and things can carriers it, point with us But us know, because have this we've shared come. use devices, to there consumer chips So and can can a We or host on network. unlicensed, other the partnership it, neutral where being licensed that And can alternative use aren't offering venues use their like either think that dongles a in so on it's as got laptops

on else little think we the big excited seasonality Hovenier just so of XG, a it's a So think Elauwit. beginning color. Peter about and Pete, We Yes, of anything we're opportunity. it's it. quite

today. which time the think student see on bulk heavy-lifting through May and revenue June market, August the what coming with -- housing going Elauwit through the contribution really should -- through is It's the you July. the in coming real about of to frame, from a you're does standpoint, So

the May with of as both and as heavy ending, June months. July beginning the of So and August think us kind being

Operator

Hovenier earnout Breen comes going Our the Can Breen about million talk X-year the on access up ago. William next fees just from you DAS on the you're up takes over and and One those million the was and to but the the period? there? quarter, are year -- $X.X on are on David both Can yours. $XX the first James this like And from in payout in to Peter couple. fund quarter Right. it Pete, looks what acquisition. sort million of question happening $X.X DAS million the a Just or what only just side, Blair. a fee you about $X like how about looks access with talk what's side, the the just then puts from James Hagan

for on we funding primarily are million using $XX based Elauwit of -- funding -- be the their be to will draw earned our announced, that line is we We credit that target primarily targets a So which their acquisition. from the hitting the credit earnout, be The through will acquisition, XXXX revenue our XXXX line. upon really growth rates.

XX% targets Hovenier through Hagan talked that million $XX ago. David So million with. full few that targets, $XX would with And get James Peter up we've Breen targets which be those $XX they range hit moments if XXXX. about above the some I There would earnout. just comfortable be were million they to come the they growth XXXX. then worked a So through Yes. aggressive will

Okay. Peter Hovenier Yes.

as Peter mean? tied about do tiered, access how bigger, in and numbers to I Hovenier color Okay. it's exactly the $X.X-ish $X not a indtargets. give Yes. like, the it's bigger think So fee get XXXX as obviously. million, Breen the tiered. skewed overall Perfect. it target; each year, It's is XXXX So million So what million like $X.X more it's James on Can coming in million believe And Hagan Hovenier you think I million David when it target revenue. -- on months $X just $X you the think, James in towards is the it's then of side? 'XX, Peter later years of little Breen just

access So it's fees, expectations. on the [indiscernible] a

right a the now are on lot we build doing side. So

fees You'll continue business, did some aggregate, ASC side The and both our for increase. material to the account access in the quarterization And way in change see access in change we a especially build but didn't in DAS this revenue, the XXX the change. of how did of the fees.

is be which you in upper all to access along. grow saying what XXXX should So teens, fees been should mid- what we've of is for thinking the

more then year. trying doing access Great. million from growth. a Okay. on see fees James in and contribution $X terms Were this multiple you'll layer, So half top of acquisition, to sort for the of just the year. about come narrow just line QX in they And QX that's -- contribution Breen on in

$XX they'll million, -- right so $XX of did do expect in XXXX, Actually $XX we -- be they -- were doing due -- them they So Hovenier million revenue. million to in about Peter revenue?

you're question what just is seeing frame. Tony stronger the is -- through seasonality in time May definitely the The about seasonality. August So asked there

So contribution from in is the but bulk slower James Okay. the of in Breen we'll the August, contribution periods. Elauwit coming have

then looked on really on do standpoint will Great. just any are have synergies. is there, can cost opportunity, So always than more deal Yes, synergies in else. anything we the larger going one revenue And about this Obviously, for the like about management. guys a for purchase you is like so I margin revenue frugal more front at standpoint, to but in the and Maybe James we this cost from place do there Breen we're and what We just scale the the acquisition opportunity given framework David. a we with something revenue say, Peter But from forth? think more we and this Hovenier Xx perspective to synergy move it. revenue synergy from be deal from not already gross up price. cost what margins, just -- a is

sort to I a that laid That's previous think increased of multifamily Where of so the million is year. additional million. by, market million it say, million from? being top the press that I rate. had in XX XX% market You Yes. added or the talked or MDU XXX,XXX XX units already Hagan addressable Is presentations? come the The release, on market, it and in that David built each out stated -- is the XX want -- has XX does growth you so

the market. the no very There's combining capability about fragmented it's aggressively. feel going with massive real market. and, our We Elauwit great in after really, So opportunity a a Boingo market market. capability leader It's

we pretty I MDU and business business at internally developed model the when it's remarks clear market. their our prepared think it the that how was same in model had looking works,

would did if exactly way consumer end play, -- they it's and we the an we organically, play, BXB it's So play. are, that be this it's not just that is, doing we a wholesale a

It's the house penetration in the from So is, of rate units fact, flow lease. XXX%. student through

property very on customers our property the So to the it's -- on And really are that. manager, owner. multifamily, similar then

co, cable local they the have to walking with contract they'll to already be can able their customer already on their days we'll apartment. connect day first the service there, us, XX be While into on the

well penetration extremely XX%. those rates had properties on Elauwit has so And high north of

just I margin So Breen James to be their And those think structure market. model. around flow on relatively scale just we it'll still And of your a that the business, love just very But contracts profitability and question, as we in over generate one -- we time. profitable a it's business. have small more cash we that lot

but like That's of the that sounds providing structure kind DAS like is David those a Is So access WiFi revenue build you're correct? to it Hagan correct. structure and buildings, with revenue.

Operator

instead line offload. of about from anymore a you level, comes Co. Horan and think of looks the & can would question give? the WiFi you model you next color business Timothy carriers be Oppenheimer CBRS with for At like can LTE you spectrum better offload with Horan high Do the the what Timothy talk Our for think

Just need of Hagan Tim. one And the Thanks because usage? compare both overall benefits we David question. and contrast for the just Yes, other. I'll start. over of the the do

bit, if a it I reask. You've don't please all, out so little address cut

be and CBRS to think model, business it way CBRS is can about of regarding the things. lots So different

So would can a it we typical on could work. we the that licensed depending their look it deploy would And do like it economics for in like we the hold DAS just behalf. carriers fund on license They or find could how market. spectrum

the the could and venue it i.e. -- and of offload the to another through access That just could then of in charge terminology. like directly in. carriers venue us that a venue, shared or to would traditional either alternatively, is -- carrier in Boingo and characteristic -- it. think And comes band on access the network, could more WiFi the then be element partnership do the network. where charge carrier deploy the venue network. it our the for with And kind a the look we our at pays of of we would by that it It that's like dime cellular. just spectrum this So --

just will it I business time, the to right? develop will but X about I interesting really all So traction over examples flexible, what's it's is models gave of the market. give that think So

deployments. you'll see types think of all I

So that's that one about. excited of most the things we're

We're it In look as terms bullet in offload, the know. just if of at will. arsenal, another technology-agnostic, on you we you as impact

So CBRS offload, provide they licensed to as spectrum we're do if WiFi happy as to wants carrier to that that them. because a a do more than

lanes monetize. that more ways to highway provide, can we more can again, So that the we

in complimentary. the we sharing time again entirety Timothy kind put mouth, efficient words but to So its just and most to spectrum wireless. your in trying time, Horan it's in where over very think you it's do of It would the the it not proven and like, seems sharing some it. time in manage I'm form be way infrastructure just

model. who well. that neutral I their different We'll the obviously, there, different carriers aggressively on depending get Hagan So neutral think deploy own within David is but our it see option model, what I ask. the the logical options of carriers pursue answer a the yourself host all most think as for host you in out Well, on love think you'll industry? you We, for do to you'll it and

we property in own the I that's of that I up and owners WiFi our there's longer XX process? lastly, then cos cable guess, want" deploying a I that cable of of from are instant And Yes, of I'll cutting, think like then is this a and a similar is MDU where apartments do world with you host think and what due do Hagan core. months. spectrum customers building with not we this, in now big of have that's the think I'll me trend. seem or a coming stations for a tower the condo, get high now? my notion So what the to see you at including And partnering cos where apartment of in they'll and market, over-the-top, my an through players part going neutral market the type that an not "give before Do talking whatever if to do we unlike Timothy property same one the their Boingo Horan it's the just general both the at on being and on sorry, touched This us carriers did frustration a asset perspective. last type deploy into cord use will it's seeing end-user blanket moving right and areas. about the Internet, maybe kind their Elauwit, I you'll high-speed within from of to folks with venue, you it That the MDU to Internet third Netflix, And other a question. if rents and meeting to a party of some CBRS have are market, and with television David the think of we when and also Certainly, end that and themselves, network a carrier the level. just a XXX also a but in it's be In us able research that diligence about DAS term, this -- I'll were apartment," did high-speed attractive. you've "can paying? out you get I case really would markets And with cable are incredibly coverage into do percentage efficient. And apartment that's moving perspective typically on

as have street. buildings can they real in And a If win. across they It as that seeing attractive it so that a instant-on property capability, more makes see are them the a differentiator.

-- building of has question first today is, our Timothy an play, channels." owners I sorry, I'm pricing going follow-up every were understand do aware co the doing and think and which get of that? take that's massive you're you I'll the individual and They're asked of So how they The Elauwit one. market. either a terms getting a with I It's or to in discount retail, Yes. away cos much much versus mean, right more in whole else some you provide? view cable buildings? the that." Almost hearing. change that. I They're Hovenier of Elauwit you discount what the absolutely message video But So like infrastructure you telco think everything is of have you building to? seeing is, forward, or an kind our with not obviously need coverage retail just the of one plays building XXX much do cable and wide, that the and over-the-top it through to How from phenomenon? I or into more competitor. today. are think Peter strategy Horan answer what strength do you to save last can have "I coverage a getting internet, David Hagan understand of the they're broadband owners just can high-speed And that building customers to "I what what Pete, referring need get have a Do want our

And of teens discount terms add-on. or did but cheaper than it our be embedded the did especially MSOs. in MDU it, the was the the and we cases, a actually not in end MSOs, So Elauwit market, it would on in substantially many be, market, separate into found the see our tend analysis, we it call diligence from I'd that to cost lease in the in we did was

that about but a was -- it's It throughout So is high-quality about instant. differentiator more it less really is saving the was everywhere service and the infrastructure, money.

move You up day the you can in, sign literally move you in.

any gear, and our gear, not for installer much it's this to So military on. if gear, and an is you're not instant a where similar cable waiting product

the And are checking powerful. buildings building that that that thought amenity this that for we've renters looking in talked the the they're it's owners is So #X out. new to

Operator

a of Argento Just here. Markets. Argento Our Mark quick next Lake with question from couple Street comes Capital ones Mark

just carrier to more little and, platform, helpful. about venues And data the additional piece. see I'm the MDU be the onto guys then On talk doing just in offload assuming that just bit to are that'd carriers coming particular, obviously, you growth, wanted opportunity, a back

by your with don't You second a any potential video other of bundle part touching Mark. David question. chance? I'll -- not with Thanks, you're start Hagan

correct, path we're there's about has that. play, It's there continue provide play, the That's The third what Elauwit of a party with triple down need, like TV, had core high-speed is -- handled that that, been providing. we double the we're all Internet. you're anything way and doing So not them. where a would they've

Your first -- first the carrier question part of additional question on offload venues.

other roll So airport more plus we out venues, venues. to continue our other military bases to across and both

revenue expansion the pretty QX. growth, You in the saw amazing was in from the traffic obviously,

in continue those everybody's continue We -- we have discussions. terms carrier of question #X coming on, to the when favorite

not for on like One to when we're particular. a strong. forecast you, can follow-up are progress bullish Pete, that. the we announce and on do Mark results of be we it, to that going But the we're the in prospects continue seeing, Argento we think We certainly but

guys refresh had yours, terms put CapEx. on out in on David your this just how much Hagan balance mentioned Could of you sheet look build-out? Hovenier the Pete. amount That's of year You Peter to Yes. you new

economic of you we've is, the XXXX. range. by it or guys we'll for Argento refunded kind terms of look expect in WiFi capital side, in be Hovenier Or to $XX and MDU like And capital similar order? putting can for are deploy not refunded, really million reimbursed MDU? Peter carriers, be that's $XX capital DAS not what million of model DAS that military, -- how in getting throughout going of Yes. build-out back Mark said the short the -- that So then out that on then opportunity, we capital does $XX-plus a to million And the the that's the in fairly the is the

similar have we So what DAS. the way is works sheet. a to has large model with They that Elauwit did balance structured today a

by the the install which the to the That network the grow some So recurring and collected and the initial owners they their and we time to operate they the were and capital network manage own and got fee the in goes selling revenue property additional network looking pay onetime selectively to fee to for believe putting more build install, can is faster the we live, opportunity that returns look owners there at the property in now standard model get is money then for and they've work, as of that would get an this, management and recurring by mean and form better upfront revenue. less network.

at think Elauwit opportunity, today the least it's real we it's near We but not term in of do see a consumer we're cash. So looking at. something being a

Operator

Our next Roth with one wholesale. Searle question A of Scott quick Instructions] WiFi line Scott on the Capital. from Searle comes [Operator

idea start, out [indiscernible] David and are at completely deployed Hagan trying how out -- the revenue patterns the minimums. And to Pete, this understanding by the being then You kind volume talk Are understand getting and footprint some building in stuff. built phase. footprint your had and basic been about for Or is can increased the point the can traffic X much us rollout carriers. you give traffic you deployment above driven you just versus right now? time you or across the of or I'll

we can further What build-out, backhaul. have and densification, manage the X of i.e. X to capital. the is add without terms always in carriers we So

X pretty model, put some of or -- X on you scheme venues whole we've require the capacity. But the inexpensive that's is our So these know, most more things. would -- backlog of as to in more in carriers backhaul

on. want Yes, them volume you So we're bring Hovenier happy to. prepared to on the Peter talk when we side? can Pete,

the very it will happy upon now something what the we're recognize carriers a volume foremost, commitment. and of based none first is So revenue about --

more realize saw minimum traffic, we P&L. WiFi. to current in volume additional me, commitment the in what quarter. drive of revenues excess a We this the had contribution So volume and in in strong and their -- wholesale and very, And so all they excuse QX you that's quarter commitment. They as recognize very are

You line. bottom saw a That's to just the the lot model. the highlights of flow-through

a to net incremental a lot our capital can our flows We It's historically, I expand high that how venues. revenue, had and small down we've throw building some the they're and traditional guys little income generates out, DAS the as we that on in Searle demand as very pipeline, very I you in business today, well. have of over you it Scott factors of hit venues XXXX. years that within traffic, we've XXXX, and a in the at deployed incremental down of we but got bunch your But which been if now And as have which CBRS, cells, drive when been the rate earlier big involved, well could, FirstNet, all look bit Okay. growth question. managing we've Great. at more XG, TAM pretax and additional a are opportunities very, in EBITDA. it's an been And coming very you've dramatically industry, incremental

activity on a XG there the interested Or waiting levels planning for of spend about are of get carriers lot in items is of huge for question, could cells, kind starts to could cell Hagan Yes, involved an XXXX you obviously, the you time if didn't contribution opportunity small were meaningful small I for Scott. in. first driven amount nodes standpoint. clearly, this talking handsets. cells I the small CBRS, out by but you there, but list if longer, But frame? carrier quickly take little frame hosting these when up? great revenue And wondered your of time to kick wondering standpoint. bit are is high. call tick they get X mean, a that going We additional discussion in talking in time Yes, in revenue was David with I down just trials lines generators So or and to about priorities immense creeping it some with. of How example, maybe all a terms the are from a these now? from

about there new new we FirstNet, built. the those all cos, there tower and networks, no types are -- going And services, -- get when where have unlike, then those us. XG think we boats carrier overlap. for infrastructure as be just that frankly, mean, are risk lift sector. positive don't some And we've is built. just I to are going the to opportunities So tower of I we think in the major to drive thing the that like partnership a with XG added on densification all to a be either will in positive cases, to or, densification. XG that's most in is cases, further some in way wireless replaced on way Every built network -- added We on in by going networks going CBRS building think, to is the overlap, is network that you of such

we business. So future these see of the growth as positive drivers of all

and will is ask doing in be, a work it become now. is the but that of to me, really XXXX end contribution, 'XX, Now this you terms we're interesting But of and question of revenue in timing, more lot beyond.

XG see you deployed. and doing one If big deployed to dollar T-Mobile you wave But day some there attached OEMs every really the multibillion that's that's some the XG analysis and LTE of been much stand-alone -- XG, that. about just true XG. win of the about a done think that with of changed now, almost really right We've hasn't is a now, XG stand-alone, big made the There big is deployment. is

that? So add perspective, Pete, then 'XX. to it's want only it Hovenier from the to to thing end you are seeing cells, start But of you'll happening. 'XX in is near and augment more small demand Boingo term. see the Peter to we Really,

be mean I contribution in hugely it's think cell, FirstNet material. access of will Small little few of So in recurring a it is, not but don't some to XG that a revenue CBRS, agree terms that We is 'XX, points more you important. going fee-type term. block, becomes And contribution, I a what anything it's and predominantly that's see XG building and as it revenue. of by longer

is, say, So and consistent it reliable. and it's powerful,

So we are excited. very very,

Operator

remarks. David I question-and-answer we to and Ladies the reached like turn would gentlemen, And to call the have Mr. for session. the Hagan closing of end back

David Hagan

you, operator. Thanks, for Thank everyone, questions. the

Thanks & be hope Boston. at And to we'll Internet Communications week, Lynch's a Merrill Annual Communications Los many Technology, Conference you Media, and Next Conference we'll XXst September, see Entertainment present at Angeles. Oppenheimer's there. be We lot. BofA in of in in

Operator

today's conference. concludes This

may time. you at You this participation. your Thank for disconnect lines your

David Hagan	Chairman & CEO
Kimberly Orlando	ADDO Investor Relations, SVP
Peter Hovenier	CFO & Secretary
Anthony Stoss	Craig-Hallum
James Breen	William Blair
Timothy Horan	Oppenheimer & Co
Mark Argento	Lake Street Capital Markets
Scott Searle	Roth Capital

Boingo Wireless (WIFI) 1 Aug 182018 Q2 Earnings call transcript