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WidePoint Corp (WYY) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Revenue: $142.6 million for the full year 2024, a 35% increase compared to 2023.

  • Adjusted EBITDA: $2.6 million for the full year 2024, a 229% increase from the previous year.

  • Free Cash Flow: $2.5 million for the full year 2024, a 933% increase from the previous year.

  • Net Loss: $1.9 million for the full year 2024, improved from a $4 million loss in 2023.

  • Gross Profit: $19 million for the full year 2024, with a gross margin of 13%.

  • Carrier Services Revenue: $86.8 million for the full year 2024, an increase of $28.6 million from 2023.

  • Managed Services Fees: $35.8 million for the full year 2024, an increase of $4.5 million from 2023.

  • Contract Backlog: Approximately $290 million as of December 31, 2024.

  • Cash Balance: $6.8 million at the end of 2024.

Release Date: April 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • WidePoint Corp (WYY) achieved a 35% increase in full-year revenue, reaching approximately $142.6 million, surpassing their revenue guidance.

  • The company secured $51.2 million in total contract value, with significant contributions from federal agencies and commercial organizations.

  • WidePoint Corp (WYY) achieved FedRAMP authorized status for its Intelligent Technology Management System (ITMS), enhancing its market position and opening new federal contract opportunities.

  • The integration of IT Authority into the WidePoint brand has streamlined operations, enhancing customer response and increasing potential for upselling and cross-selling.

  • WidePoint Corp (WYY) reported a 229% increase in adjusted EBITDA and a 933% increase in free cash flow for the year, indicating strong financial performance.

Negative Points

  • The delay in the earnings call was due to the complexity of new contracts and increased business growth, which extended the annual audit process.

  • Gross profit margins decreased slightly due to increased carrier services, impacting overall profitability.

  • The company experienced administrative challenges with a major customer, affecting cash flow and invoice approvals.

  • Despite positive financial metrics, WidePoint Corp (WYY) reported a net loss for the year, although it was an improvement over the previous year.

  • There is uncertainty regarding potential impacts from federal budget cuts and changes in government contracting processes, which could affect future business.

Q & A Highlights

Q: Can you provide an update on the pilot program with federal agencies for MobileAnchor? A: Jin Kang, President and CEO, stated that the pilot with a federal agency related to the transportation industry is progressing well, with plans to increase the number of credentials issued. Additionally, another agency related to K-12 education is also showing interest in the technology.