Boingo Wireless, Inc.
Q3 2017 Earnings Call Transcript

Published: 2 Nov 2017

[Operator:]

Greetings and welcome to the Boingo Wireless Third Quarter 2017 Earnings Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce to your host Ms. Kim Orlando Investor Relations for Addo. Thank you, you may begin.

[Kim Orlando:]

Thank you and welcome to the Boingo Wireless third quarter 2017 earnings conference call. By now, everyone should have access to the earnings press release, which was issued today at approximately 4 o’clock p.m. Eastern Time. In addition, an earnings supplement has been made available on the Investor Relations portion of Boingo’s website at boingo.com by clicking on the Investor tab. This call is being webcast and it is available for replay. In our remarks today, we will include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about guidance and future results of operations, business strategies and plans and market and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management’s current knowledge and expectations as of today, November 2, 2017 and are subject to certain risks and uncertainties that may cause the actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties are contained in our most recent Form 10-K for the year ended December 31, 2016 filed with the SEC on March 13, 2017, our Form 10-Q for the quarter ended March 31, 2017 filed with the SEC on May 8, 2017 our Form 10-Q for the quarter ended June 30, 2017 filed with the SEC the 4th 2017 and our other filings with the SEC. The company undertakes no obligation to update any forward-looking statements. On this call, we will refer to non-GAAP measures such as adjusted EBITDA and free cash flow that when used in combination with GAAP results provide us with additional analytical tools to understand our operations. We have provided reconciliations to the most directly comparable GAAP financial measures in our earnings press release and which will be posted on the Investor Relations section of our website at www.boingo.com. And with that, I will hand the call over to Boingo’s Chief Executive Officer, David Hagan.

[David Hagan:]

Thanks, Kim. Good afternoon, everyone and thanks for joining us to discuss Boingo’s third quarter 2017 financial results. To start things off, I am pleased to share that our strong momentum continues. After posting great results for the first half of the year, our third quarter was another record setter. As a result, we’ll be updating and raising our full year guidance. We’ll discuss that a bit more later in the call, but first, let’s dive into the details. To begin with, extended our streak of double-digit revenue growth to 12 consecutive quarters with year-over-year quarterly revenue up 31.5% to $53.7 million which exceeded the high end of our guidance range of $52 million. In addition to exceeding the high end of our revenue guidance, adjusted EBITDA for the quarter also exceeded the high end of our guidance. Adjusted EBITDA grew 71.1% year-over-year to $19.8 million. This is our ninth consecutive quarter of year-over-year EBITDA margin expansion. This growth, both on the top-line and adjusted EBITDA is a result of consistent execution against our strategic plans leveraging explosive mobile data growth by obtaining long-term wireless rights at large venues, deploying DAS, Wi-Fi in small cell networks at those venues and then monetizing the networks with Boingo’s unique mix of products and services. It goes without saying that we are extremely pleased with our Q3 financial results, which points to the strength of our overall business and the products and services driving these results, in particular DAS, Military and Carrier offload. Let me take a minute to update you on each of those products starting with DAS. DAS continues to be very robust and Q3 was another strong quarter for carrier leasing. We signed 12 long-term carrier leasing agreements in the quarter. This brings our total to 34 carrier leasing contracts year-to-date worth more than $57 million in contract value. We ended the quarter with 22,200 DAS nodes live, and another 11,000 nodes in backlog. We believe this makes Boingo the largest provider of indoor DAS networks in the world. Turning now to Military, we continue to be fired up with the performance of these venues. Let me explain why. As we have shared many times in the past, our overarching strategy is that we are venue-centric and that our Military bases are simply another category of venue into which we can apply our unique products and services for monetization. While we launched Military bases with the direct-to-soldier retail products, the next phase of monetization for these military bases as carrier offload and small cells. The carriers are enthusiastic about using carrier offload as small cells to expand their coverage. Military bases, many of which are in remote locations, often have poor cellular coverage so this provides the carriers with an easier way to deliver an improved user experience put minimal capital deployed. We have now moved out of the trial stage of carrier offload on our Military footprint that we talked about last quarter and have begun actively turning up bases. We’ve already overly carrier offloaded 13 bases where Boingo Broadband is live and have planned to deploy on majority of our 58 domestic bases by year-end. This will significantly increase the number of locations where offload is deployed for our carrier customers. It also augments the work we are simultaneously doing to extend carrier offload into other venues like airports. As we shared last quarter, we’ve also been active in discussions for deploying small cells on Military bases and we are pleased to announce that we are now in design phase on five bases with multiple carriers. We are just beginning this new phase of monetization of our military footprint and it looks very promising. We believe both carrier offload and small cells will play an important role in boosting carrier coverage on Military bases and it’s exciting to see this become reality. In the mean time, our retail products for the military continues to perform extremely well. As I have mentioned over the past couple of quarters, we’ve raised and then exceeded our overall Military subscriber penetration goals much earlier than a forecast predicted. So we are very pleased with our current subscriber penetration. We added 2000 new Military subscribers in Q3 bringing our total number of subscribers to 133,000 and overall subscriber penetration to 41%. While our major construction days are behind us, we will continue to add coverage to building to where it makes economic sense. All-in-all, we are extremely pleased with our operational and financial results for the quarter. Now I would like to turn it over to Pete Hovenier our Chief financial Officer to walk you through third quarter financial results in detail. Pete?

[Pete Hovenier:]

Thanks, Dave. I will begin by reviewing our financial results in key operating metrics for the second quarter ended September 30, 2017 and we will conclude with our updated financial outlook for the full year of 2017. Total revenue for the third quarter was $53.7 million, an increase of 31.5% over the prior year period. Revenue growth reflected strength in wholesale Wi-Fi, Military, DAS, and advertising and other revenue, which was partially offset by declines in retail revenue. As a percentage of third quarter revenues across our diversified revenue streams, DAS represented 41%, Military was 26%, wholesale Wi-Fi was 15%, retail was 12% and advertising and other accounted for the remaining 6%. This compares to the third quarter of 2016 which DAS represented 39% of revenue, military was 25%, retail was 16%, wholesale Wi-Fi was 15% and advertising and other accounted for the remaining 5%. In terms of total third quarter revenue contribution by category, DAS revenue was $21.8 million representing a 36.3% increase over the comparable period last year. Total DAS revenue was comprised of $16.1 million of build out project revenue and $5.7 million of access fee revenue. The year-over-year improvement in total DAS revenue was primarily related to increased revenues from new DAS build out projects, coupled with increased access fees from our telecom operator partners. Military revenue was $13.9 million representing an increase of 37.6% versus the prior year period. Growth was driven primarily by an increase in Military subscribers and an increase in average monthly revenue per subscriber, which is partially offset by decline in single use revenue. The shift from military single use revenue to subscriber revenue is mainly due to the removal of our non-recurring monthly service offering, which contributed to higher sign-ups for monthly recurring subscription plans. While we have continued to experience growth in our Military subscribers with an average subscriber penetration rate of 41%, up from 40.4% in the prior quarter, we do not anticipate significant sequential subscriber growth going forward given that we have exceeded the top-end of our stated range for subscriber penetration. We to continue to expect the Military vertical to be a strong driver of recurring cash flow and we are encouraged by the additional incremental opportunities such as carrier offloads and small cell deployments, which we are implementing on these bases. Wholesale Wi-Fi revenue was $8.3 million, representing an increase of 41.1% over the prior year period, primarily due to higher partner usage base fees and an increase in managed service fees from our venue partners who pay us to install, manage and operate Wi-Fi infrastructure at their venues. Retail revenue was $6.2 million, representing a 5.8% decline over the prior year period, primarily due to a decrease in retail single use revenues. While we expect retail revenues to continue to decline at a moderate pace, we can still monetize on our retail customers to our wholesale Wi-Fi service offering such as Wi-Fi offload increments and Comes with Boingo programs. Advertising and other revenue was $3.4 million, representing a 55.6% increase over the prior year period, primarily due to an increase in total ad units sold at our managed and operated locations. Now turning to our third quarter costs and operating expenses. Network access costs totaled $24.1 million, representing a 34.3% increase over the third quarter of 2016 primarily due to increased depreciation related to our DAS build-out projects, as well as higher revenue share paid to our venue partners. Gross margin, which is defined as revenue less network access cost was 55%, down 92 basis points from the prior year period. The decline in gross margin largely reflects the shift in the diversified revenue streams, driven by an increase in our lower margin DAS build revenue, partially offset by increases in higher margin Military, wholesale Wi-Fi, and DAS access fee revenues. Network operations expenses totaled $11.6 million, an increase of 8.7% from the comparable 2016 quarter, primarily due to higher personnel-related and depreciation expenses. Development and technology expenses were $6.8 million, an increase of 26.4% from the prior year period, due primarily to increases in personnel-related, depreciation and cloud computing expense. Selling and marketing expenses were $5.2 million reflecting an increase of 14.2% from the comparable 2016 quarter. The increase was primarily due to higher personnel-related expenses. General and administrative expenses were $8 million, a 19.5% increase in the comparable 2016 quarter primarily due to increased personnel-related expenses, which is inclusive of stock-based compensation, as well as increased professional services fees. Now turning to our profitability measures in the quarter. Net loss attributable to common stockholders was $3.5 million or $0.09 per diluted share versus a net loss of $5.7 million or $0.15 per diluted share in the prior year quarter. Adjusted EBITDA, a non-GAAP measure was $19.8 million, an increase of 71.1% for the comparable 2016 quarter. As a percentage of total revenue, adjusted EBITDA was 36.9%, up from 28.4% of revenue in the comparable 2016 quarter. The third quarter marks our ninth consecutive quarter of year-over-year EBITDA margin expansion. Turning now to our key metrics, the number of DAS nodes in our network for the third quarter was 22,200, up 25.4% from the prior year period, up 9.4% from the second quarter of 2017. The number of DAS nodes in backlog, which represents the number of DAS nodes under contract, but not yet active as of the end of the third quarter were 11,000, up 112% from the prior year period and in line with the second quarter of 2017. Our Military subscriber base was approximately 133,000 subscribers at the end of the third quarter reflecting a 54.7% increase versus the prior year period and a 1.5% increase from the second quarter of 2017. Our retail subscriber base was 194,000 subscribers at the end of the third quarter, which was up 4.9% from the prior year period and down half a percentage point from the second quarter of 2017. Connects or paid usage on our worldwide network were approximately $64.9 million, up 61.1% from the prior year period and up 24.4% from the second quarter of 2017. Moving on to discuss our balance sheet, as of September 30, 2017, cash and cash equivalents totaled $21.6 million, up from $13.2 million at September 30, 2016. Total debt was $14 million reflecting a reduction of $1.2 million from our debt levels at June 30, 2017. As of September 30, we had $64.8 million available on our credit facility. Capital expenditures were $22.8 million for the third quarter, which included $15.6 million utilized for DAS infrastructure build out projects that reimbursed by our telecom operator partners. Our non-reimbursed capital expenditures were driven primarily by new network builds, and upgrades to our Wi-Fi networks that management operates and use plus various infrastructure upgrades and enhancements. As a reminder, we estimate our annual capital maintenance requirements, which excludes our growth capital to be approximately 3% to 5% of revenue. Free cash flow was a negative $2.7 million for the third quarter versus a positive of $10.1 million for the third quarter of 2016. We remain confident in our ability to generate positive free cash flow, although we may experience fluctuations from time-to-time related to the timing of receivables and working capital in a given quarter as was the case in the third quarter of 2017. Further to that point, we collected over $15 million in receivables in the first two weeks of October, making our cash balance at the end of October at the high as it has been so far this year. I will now turn to our outlook for the full year of 2017. For the full year ending December 31,2017, we are raising our guidance as follows

[David Hagan:]

Thanks, Pete. The headline on the quarters that we believe we have the win firmly at our back. We’ve again exceeded the high end of our guidance range for both revenue and adjusted EBITDA. We believe our strategic plan has us well positioned to take advantage of trends going on in the wireless infrastructure market. In the immediate term, the continued acceleration of mobile data growth continues to put capacity constraints on existing macro cellular networks which in turn drives new products like Wi-Fi offload and small cells. In the longer term, as 5G comes to fruition in 2019 and beyond, this provides an opportunity for incredible long-term cycle growth for Boingo. We are going to be talking a lot about 5G as well as what we see for Boingo at our upcoming Analyst and Investor Day in New York City on November 14. While presentations from our executive leadership teams, so you can hear first-hand insight about our business from them. And so with that, I would like to open up for questions. Operator?

[Operator:]

Thank you. [Operator Instructions] Our first question comes from the line of Scott Goldman with Jefferies. Please proceed with your question.

[Scott Goldman:]

Hi, good afternoon guys. Two questions if I could. I guess, first on the DAS, we saw a nice step-up in the build out or projects revenue, presumably that’s on the back of all the venues that you guys have signed and have maybe started to build out. Is it fair to say that that should sort of stay somewhat elevated over the next, call it, 12, 18 months as a result of that and then we might see a pick up as well in the access revenue on that front? And then, secondly, Dave, maybe you can help us just size for us how big an opportunity moving the carrier offload product on to the Military bases would be going forward? Thanks.

[David Hagan:]

Okay, thanks, Scott. Pete, why don’t you start with the DAS step-up?

[Pete Hovenier:]

Sure, so, we’ve done a great job in step-up in the quarter and, yes, that will continue. There we saw partial period in Q3 and you will see a full additional quarter in Q4. And so, and that’s one we anticipate seem to continue to increase.

[David Hagan:]

And then on the, on carrier offload to Military, so we are extremely excited about getting 13 bases implemented so far and as we messaged in our prepared remarks, our goal is to get a majority of 58 bases rolled out. One thing to keep in mind for everybody who models our business is that, that military bases are not nearly as dense from a number of people that we are covering. So, one venue, if it’s an airport versus a military base, it can look quite different. But it’s going to be a good rollout. We are anticipating – you’ll start to see the impact of it late in 2018. So it’s a bit of a long rollout as it has been on carrier offload, but we are incredibly encouraged that there is high carrier interest on the Military bases and that we are getting traction and getting carrier offload rolled out.

[Scott Goldman:]

Is it fair to say that the economics are very similar to what we’ve seen with the other carrier offload deals?

[David Hagan:]

Yes, same economic structure.

[Scott Goldman:]

Okay, great. Thanks a lot guys.

[David Hagan:]

Thank you.

[Pete Hovenier:]

Thanks, Scott.

[Operator:]

Thank you. Our next question comes from the line of Anthony Stoss with Craig-Hallum Capital Group. Please proceed with your question.

[Anthony Stoss:]

Hey guys, nice job. Following up on the carrier offload on the military bases, can you help us understand how many carriers might be involved at this point? And what you’d expect, say, later on in 2018? Then also, two follow-ups, any update you can give us on Wi-Fi offload customer number two? How that’s going if that’s in full deployment at? And then also in small cell side, if you could help frame a sense on how big these RFPs or what everyone are calling the network designs are? Thanks.

[David Hagan:]

Thanks for the questions, Tony. Just writing notes there. So, on the first one, on carrier offload, we are not – as we talked about on our last call, we are no longer naming the carriers nor and exactly where they are rolling out, which is based on what they would like us to do. So, we are keeping that confidential for them. But we are, again excited about having 13 bases launched and continue to rollout for the rest of the year, but at this point, we are not going to name carriers or talk about numbers of carriers. Your question number two was on – carrier number two deployment plan, so it’s going well. We continue to – in addition to the Military bases, we continue to rollout more on the airport side with both carriers. So, we are excited to see how that’s going and we are very positive on the long-term prospects and in the short-term, we are happy with the deployment schedule that we’ve been rolling out. Question number three, small cells, I think it was on – was that on size of RFP, was that the question?

[Anthony Stoss:]

Just any color you can provide would be helpful.

[David Hagan:]

Yes, the challenge, we talk about DAS being there is no single average venue, small cells with even more so. They are all over the math from a single antenna in a building to multi-antenna or node solutions that look more like a DAS network. So they run the gamut. The beauty of the small cell opportunity is that, as we’ve talked about in the past, it really in large is our addressable market. There are lot of venues where building a DAS network doesn’t really make economic sense for the carrier, where small cells make a lot of sense. So the small cells help us achieve the carrier goal of better coverage within smaller venues. But it’s hard to say that there is just an average size, because it really is all over the math.

[Anthony Stoss:]

And a second, sneak in one more question, at your upcoming Analyst Day, do you intend to give a first glimpse into 2018, kind of revenue growth or a range?

[David Hagan:]

We are not going to give guidance at Analyst Day. That will come out with our Q4 results as we typically do, but we are going to talk a lot about the business. We are going to talk about the future of the business. We are going to talk about network convergence. We are going to talk about 5G. We are going to talk about the anatomy of the deal. So you can see, we often get asked the question, why is it takes so long from signing the venue to getting revenue, we are going to go through the details of what a venue deal looks like and then a carrier deal looks like in the process involving all of that. So, there is going to be a lot of meat that we are going to go through, but we are not going to give specific 2018 guidance at that meeting.

[Anthony Stoss:]

Thanks, Dave. Great job.

[David Hagan:]

Thank you.

[Operator:]

Thank you. Our next question comes from the line of Timothy Horan with Oppenheimer & Company. Please proceed with your question.

[Timothy Horan:]

Hey. Two questions, one on the margins front, you had nine consecutive quarters of margins kind of increasing here. What would cause the margins to tick down at this point? Is it seems like, at this stage incremental EBITDA margins are extremely high from the revenue growth that you get?

[David Hagan:]

Pete, do you want take that one?

[Pete Hovenier:]

Sure, so, as you know, we have very strong incremental margins and that’s one of the key thesis of this company. So as we build out a network, it’s your first customer is going to have your lowest margin and as you add subsequent carriers or customers on to the existing network, it’s going to improve your margins. For the most part we have historically, we have the revenue share with our venue partners on all sources of revenue. So there always will be some sort of revenue share element, but you think of the other fixed or sunk cost we have in people, back haul, break fix, those sorts of things, those are share, there is a larger customers, the more revenue we get in, the more customers we get on these venues, be higher our margin. So what we cause that to go down, so you think about it, it’s building out more networks and having more single carrier type builds, that would put some margin pressure. But net-net, what we’ve communicated overall, we still see incremental margin expansion, particularly even margin expansion. We don’t see 2018 having another seven to eight points on margin expansion like we experienced in 2017, but we do continue to see margin expansion.

[Timothy Horan:]

And then, on the CapEx front, running a little bit low last year and you got a whole bunch of opportunities out there. I mean, should we think about, you have the free cash to do it. You clearly have the balance sheet to do it, should we think about that function increases your CapEx given the opportunity?

[David Hagan:]

I think that’s fair to say. We think the most valuable thing we can do is to continue to invest in network. So I think it is prudent for us to continue to build out networks where we can, and so, I would anticipate that we will continue to invest more and more in the network.

[Timothy Horan:]

Thanks so much.

[David Hagan:]

Thank you.

[Operator:]

Thank you. Our next question comes from James Breen with William Blair & Company. Please proceed with your question.

[James Breen:]

Thanks, just along those similar lines in the margin side, where is the EBITDA growth coming from within the business? And if you look at your EBITDA in total, how is the portion of cash versus non-cash EBITDA trending this quarter relative to last quarter? Thanks.

[David Hagan:]

Pete, that’s yours.

[Pete Hovenier:]

Yes. So, either growth is really coming from the drivers of the business. So, which would be DAS, Military and then wholesale. Wholesale being driven by - kind of equally split between offload and Comes with Boingo. And so, all have been very strong contributors. Now, the Military has been the strongest contributor recently, just because our cost structure there, where now we’ve ramped into our cost structure is really when you think about it. We have – our cost structure is predominantly consistent whether we have ten customers on a base or whether we have thousand customers on a base, the only differential is revenue share. And so, that’s probably the biggest driver of incremental margins that we saw in 2017. In terms of cash versus non-cash EBITDA, the cash portion continues to grow, both are growing and because that you saw our DAS built revenue gets step up this quarter as well, but both are growing nicely.

[James Breen:]

Great, thanks.

[David Hagan:]

Thanks, Jim.

[Pete Hovenier:]

Thanks, Jim.

[Operator:]

Thank you. Our next question comes from Jon Hickman with Ladenburg Thalmann. Please proceed with your question.

[Jon Hickman:]

Hi, thanks for taking my questions. So, will it be safe to assume that the same carriers that would be interested in offloading on the Military base would be also in the interested in small cell?

[David Hagan:]

In some cases, yes, in some cases, it’s a different mix. So, the way that we are looking at the Military bases is that, we’ve now got this Wi-Fi infrastructure built covering all of the barracks and as we talked about them in the last call, we’ve got a major contract that we’ve been awarded in which we are going to cover a lot of public space. So think of fast food restaurants to Boeing Airlines to the barbershops, right these military bases are like rural communities in many ways and so we are now going to build a lot of those types of areas we cover and the Military will pay us to build and operate those networks. So then, having all that Wi-Fi infrastructure gives us the opportunity to do a couple of things with the carriers. One, we can do carrier offload and we talk about the 13 bases that we’ve rolled out so far in the quarter or in the year, and then, we also have the opportunity to do small cell deployments and we’ve got, as I said in my prepared remarks, we have multiple carriers that we are in the process of doing five small cell designs. So those are five different military bases. And so, each carrier views the opportunity of the military somewhat differently. They all view it as an audience that they want to provide better service to, because military bases typically don’t have great cell service or cell coverage. But their technology solution and what we can deploy for them may differ. Some are doing carrier offloads, some are going to do small cells, and some will do both. So, we never view them as completely step right technologies and in some cases, you will see a carrier or carriers doing both solutions even on the same military base. So it’s a combination and whatever makes the most sense through what they are trying to achieve. Sorry, go ahead.

[Jon Hickman:]

Like in a DAS network, do carriers share the small cell, I mean, will they pay to be on the same antenna or…?

[David Hagan:]

No, there is definitely that opportunity. The DAS networks and DAS technology is certainly more mature from a multi-carrier perspective, but we have some multi-carriers small cells, that we are running in our labs and expect to deploy that in more multi-carrier small cell technologies coming to market. So that’s – it’s definitely the focus.

[Jon Hickman:]

Okay, and so, one last question, so the time of carrier, it’s into you whatever, what’s in it to me to provide better service to the Military base? Is there more revenue for me that way or it might just going to get a happier customer?

[David Hagan:]

Happier customer for the most part. It depends on the service plan that the soldier is on with each carrier. But in general, they have really poor service – all poor carriers have pretty poor service depending on which military base you are talking about. So their chief goal is to get better service for our military personnel.

[Jon Hickman:]

Okay, thank you.

[David Hagan:]

Thanks, Jon.

[Operator:]

Thank you. [Operator Instructions] Our next question comes from the line of Paul Penney with Northland Capital. Please proceed with your question.

[Unidentified Analyst:]

Hey guys, this is Greg on for Paul today. Thanks for taking my questions. First, I was wondering if you could provide some color on pipeline growth for other venues like, call it, campuses and hospitals versus baseball stadium or airport deployments?

[David Hagan:]

Sure, so pipeline remains very robust. The mix hasn’t changed and we don’t anticipate changing a lot. So, it’s pretty consistent with what we’ve communicated in the past. Transportation hubs, stadiums, sports arenas. We’ve got a healthy opportunity in the entertainment venue space and then a small smattering of corporate campuses, malls and that type of things. But the mix really hasn’t – we haven’t seen a lot of change there. The more on the transportation and sports entertainment side.

[Unidentified Analyst:]

Got it. Thanks. And can you provide any color on the basic economics behind the carrier offload agreements? I know, you can’t name them right, but just any basic economics you can give?

[David Hagan:]

Pete, do you want to take that one?

[Pete Hovenier:]

Yes, touched on this a little bit in the past. We can think about our economics in offloading. We – the carriers pay us based upon the amount of data they consume. So, per gigabyte, per megabyte and they have the opportunity to get better pricing by either driving more volume or making a significant volume commitment. So, the way to be thinking about this, that we have not talked specific numbers, but what we’ve heard from the carriers, they want to be in the call it about a penny a meg and we come up with pricing structures allows in the internet target price points based upon driving significant volume into our networks.

[Unidentified Analyst:]

Great. Thanks guys.

[Operator:]

Thank you. There are no further questions at this time. I would like to turn the call back over to Mr. Hagan for any closing remarks.

[David Hagan:]

Thanks for your questions and listening to today’s call. We will be at the Craig Hallum and Credit Suisse conferences this November in addition to our Analyst and Investor Day on November 14th that we talked about in our script. If you have not yet registered for the webcast of our event, you can find information about how to register on the Investor portion of our website at investors.boingo.com. Thank you.

[Operator:]

Thank you. This concludes today’s teleconference. You may disconnect you lines at this time. Thank you for your participation and have a wonderful day.