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Boingo's Stock Drops Nearly 40 Percent Since IPO
CNBC.com | June 13, 2011 | 01:13 PM EDT

One of several tech companies to issue IPOs recently, Boingo Wireless had seen its stock drop almost 40 percent since its May 4 debut on the NASDAQ this morning.

David Hagan, the CEO and president of Boingo, the world's leader in Wi-Fi software and services, atrributed the stock's recent plunge to the "nature of the market" and said nothing had fundamentally changed with the company.

"I think it's just sort of a tough market right now," Hagan said in an interview with CNBC on Monday. "Of the 23 tech IPOs in 2011, twenty are now under issuance price. It's the nature of the market. I think growth funds have pulled back a little bit."

Since Hagan's appearance on CNBC this morning, the stock has risen by more than 20 percent.

"Building a business is a marathon," Hagan said. "We're going to build it over the long term into a great company, and day-to-day price fluctuations of the stock are something that we can't control."

Although Hagan called the drop "disappointing," he said that "nothing's fundamentally changed" with the company, which estimates that it will generate $22 million to $23 million in revenue in the second quarter of 2011.

Hagan said Boingo was growing and profitable and pointed to its first quarter revenue growth of 13.7 percent and its adjusted EBIDTA growth of 18.8 percent compared to the first quarter of 2010.

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