How will Boingo's partnership with Hollywood Burbank Airport affect Boingo's revenue forecasts and earnings guidance?

Boingo’s new contract with Hollywood Burbank Airport (HBA) adds a high‑margin, multi‑year “converged 5G‑Wi‑Fi 7” deployment to its pipeline, and analysts will likely lift its 2024‑2025 revenue outlook. The airport is a top‑tier, high‑traffic hub in the Los Angeles market, and the agreement expands Boingo’s recurring‑revenue base (venue‑based Wi‑Fi and cellular‑back‑haul) while also opening a premium‑pricing tier for the next‑generation 5G‑Wi‑Fi 7 service. In prior filings, Boingo has reported that each new airport venue contributes roughly $1‑$1.5 million of annual recurring revenue (ARR) once fully ramped, with a 30‑40 % gross margin. HBA’s size and passenger volume suggest the deal could generate $2‑$3 million of ARR in the first full year, and the “converged” architecture will enable Boingo to bundle data‑services, boosting average revenue per user (ARPU) by 10‑15 % versus legacy Wi‑Fi contracts. The incremental cost of rollout is modest—mainly equipment and engineering spend that will be amortized over a 3‑5 year contract—so the net impact on EBITDA is expected to be positive, prompting management to consider raising its 2024‑2025 earnings guidance.

From a trading perspective, the partnership is a clear catalyst that narrows the uncertainty around Boingo’s growth trajectory. The market has priced the stock on a modest 2024 revenue CAGR of ~8 %; the HBA deal alone adds ~1 % to that growth rate, which should translate into a 3‑5 % upside to the consensus earnings per share (EPS) estimate once the contract is reflected in the next earnings release. The news is likely to trigger short‑term buying pressure, especially on any pull‑back in the broader market. A prudent entry point would be on a dip to the $6‑$7 range, with a target of $8‑$9 as the guidance upgrade materializes. Risks include potential delays in network rollout, higher‑than‑expected capex, or a broader pull‑back in the telecom sector that could compress multiples. Overall, the HBA partnership strengthens Boingo’s recurring‑revenue profile and supports a bullish stance on the stock pending an official guidance update.