• 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.

• Warning! GuruFocus has detected 3 Warning Signs with WYY.

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.

Q: Are there any impacts from the federal budget cuts and administrative changes on WidePoint's operations? A: Jin Kang mentioned that so far, WidePoint has not experienced negative impacts from federal budget cuts. The company is on long-term contracts with the government, and agencies like the Department of Homeland Security (DHS) are expected to maintain or increase their spending. WidePoint is monitoring changes in federal acquisition processes closely.

Q: What is the outlook for capital expenditures and cash deployment in 2025? A: Jin Kang and Robert George, CFO, indicated that capital expenditures are expected to be minimal, around $200,000, primarily for revenue-generating activities. The company aims to improve its cash position and continue fortifying the balance sheet.

Q: How is WidePoint engaging with the Department of Government Efficiency (DOGE) to leverage cost-saving opportunities? A: Jin Kang highlighted WidePoint's commitment to cost savings and its alignment with DOGE's objectives. The company is actively seeking to engage with DOGE to demonstrate how its services can help reduce technology spending without cutting staff, particularly in areas like device management and billing analytics.

Q: Can you clarify the guidance for 2025, particularly regarding growth trajectory and earnings expectations? A: Jin Kang explained that WidePoint aims to achieve positive earnings per share for 2025 and expects to maintain double-digit percentage growth in revenue, EBITDA, and cash flow. The company plans to provide more detailed guidance after the first quarter, as it assesses recent developments and finalizes forecasts.

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