Financial Outlook - WidePoint Corporation issued a press release summarizing its unaudited fiscal 2024 financial outlook and operational highlights on February 18, 2025[5]. - The press release is furnished as Exhibit 99.1 to the Current Report on Form 8-K, providing detailed financial information[5]. Strategic Priorities - The company outlined its strategic priorities for fiscal 2025, indicating a focus on growth and operational efficiency[5].

Financial Performance - Revenues for Q3 2024 were $34.6 million, representing a 35% increase compared to $25.7 million in Q3 2023[5] - Adjusted EBITDA for Q3 2024 was $574,000, a 149% improvement from $230,000 in Q3 2023[5] - Free cash flow for Q3 2024 was $511,000, reflecting a 120% increase from a negative $590,000 in Q3 2023[5] - For the nine months ended September 30, 2024, revenues were $104.9 million, a 35% increase from $77.8 million in the same period last year[6] - Total revenues for the three months ended September 30, 2024, were $34,620,433, an increase from $25,733,657 in the same period of 2023, representing a growth of approximately 34.8%[22] - Gross profit for the nine months ended September 30, 2024, was $14,251,479, compared to $11,614,398 for the same period in 2023, indicating a year-over-year increase of about 22.4%[22] - The net loss for the nine months ended September 30, 2024, was $1,577,873, a decrease from a net loss of $2,714,686 in the same period of 2023, reflecting an improvement of approximately 41.8%[22] Contract Awards and Renewals - The company won $15.2 million in contract awards and renewals during Q3 2024, including $1.4 million in IT as a Service contracts[4] Cash and Assets - As of September 30, 2024, the company had cash of $5.6 million with no bank debt[5] - Cash and cash equivalents at the end of the period were $5,636,057, down from $6,921,160 at the beginning of the period, showing a decrease of about 18.5%[24] - Unbilled accounts receivable increased significantly to $24,784,036 as of September 30, 2024, compared to $16,618,639 at the end of 2023, marking a growth of approximately 49.0%[21] - Total current assets rose to $40,938,795 as of September 30, 2024, up from $32,843,263 at the end of 2023, representing an increase of about 24.6%[21] Operating Expenses and Cash Flow - Operating expenses for the nine months ended September 30, 2024, totaled $15,815,068, compared to $14,062,260 for the same period in 2023, indicating an increase of approximately 12.5%[22] - The company experienced a net cash used in operating activities of $752,978 for the nine months ended September 30, 2024, compared to net cash provided of $1,835,176 in the same period of 2023, showing a significant change in cash flow dynamics[25] Technological Advancements - The company successfully deployed its proprietary MobileAnchor Digital Credential solution into two Federal Agencies, enhancing its technological capabilities[4] Future Outlook - The company is trending towards the higher end of its annual guidance and is optimistic about maintaining growth momentum into 2025[7] Shareholder Information - The weighted-average shares outstanding for the nine months ended September 30, 2024, were 9,263,492, compared to 8,809,644 for the same period in 2023, indicating an increase of approximately 5.1%[22] Interest Income - The company reported interest income of $161,033 for the nine months ended September 30, 2024, compared to $39,122 in the same period of 2023, reflecting a significant increase of about 311.5%[22] Gross Margin - Gross margin for Q3 2024 was 14%, with gross margin excluding carrier services revenue increasing to 38% from 35% in the same period last year[5] Net Loss - Net loss for Q3 2024 improved to $425,200, compared to a net loss of $921,100 in Q3 2023[5]

Financial Data and Key Metrics Changes - The company reported revenues of $34.6 million for Q3 2024, reflecting a 35% increase year-over-year, with nine-month revenues reaching $104.9 million, also up 35% from the previous year [6][27]. - Adjusted EBITDA for Q3 was $574,000, a 149% increase from last year, while the nine-month figure rose to $1.9 million, significantly up from $387,000 in the same period last year [7][8]. - Free cash flow grew by 120% to $511,000 for the quarter, compared to a negative $391,000 in the same quarter last year, with nine-month free cash flow improving 394% to $1.9 million from negative $590,000 [7][8]. Business Line Data and Key Metrics Changes - Carrier services revenue for Q3 was $22.4 million, an increase of $7.8 million compared to the same period in 2023, while nine-month carrier services revenue was $62.2 million, up $19.7 million [28][29]. - Managed services fees for Q3 were $8.5 million, an increase of $400,000 year-over-year, with nine-month managed services fees at $26.4 million, up $4.5 million [29]. - Billable service fees for Q3 were $1.7 million, an increase of $114,000, while the nine-month figure decreased to $4.1 million, down $564,000 [30]. Market Data and Key Metrics Changes - The company saw strong demand for its MobileAnchor product, signing two new contracts in Q3, primarily contributing to high-margin SaaS revenue [10]. - The contract backlog stood at $300 million as of September 30, 2024, with a healthy sales pipeline across all sectors [19]. Company Strategy and Development Direction - The company is focused on capturing high-margin contracts and differentiating its offerings to take business away from competitors, with a strategic emphasis on technological innovations like MobileAnchor [10][15]. - The company is preparing for significant contracts, including the $1.5 billion CWMS 3.0 recompete and the $60 billion NASA SEWP VI contract, with expectations of being granted FedRAMP authorization soon [12][13]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of the recent presidential election on government contracts, anticipating minimal operational impact and potential additional funding for agencies like DHS [45][46]. - The company expects revenues to range between $120 million and $133 million for the year, with adjusted EBITDA between $2.1 million and $2.4 million, trending toward the higher end of the guidance [47][48]. Other Important Information - The company ended the quarter with $5.6 million in cash, an increase from $4 million at the end of the previous quarter, primarily due to reduced unbilled receivables [41]. - The company has a revolving line of credit facility with $4 million of potential borrowing capacity, although it does not anticipate needing to rely on it [42]. Q&A Session Summary Question: Impact of the election on operations and marketing message - Management noted that the census project is generating some activity, and the hybrid working environment may lead to an increase in the number of devices logging into customer infrastructure [51][52]. - The focus on efficiency resonates with customers, as the company claims to save them 15% to 35% on telecom costs, which could provide tailwinds for the business [54]. Question: Status of FedRAMP authorization - The company is monitoring the FedRAMP certification process, having submitted the final package about six weeks ago, and is in the finalization phase [59][60]. Question: Opportunities outside federal government - Management indicated that over 90% of the Device as a Service program is focused on commercial clients in highly regulated industries, suggesting a robust pipeline outside of federal opportunities [61][62].

Group 1: Earnings Performance - WidePoint reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.07, and an improvement from a loss of $0.10 per share a year ago, representing an earnings surprise of 42.86% [1] - The company posted revenues of $34.62 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 13.86%, compared to year-ago revenues of $25.73 million [2] - Over the last four quarters, WidePoint has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - WidePoint shares have increased approximately 76.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.5% [3] - The current consensus EPS estimate for the coming quarter is -$0.09 on revenues of $31.55 million, and -$0.28 on revenues of $132.21 million for the current fiscal year [7] - The estimate revisions trend for WidePoint is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Computer - Services industry, to which WidePoint belongs, is currently in the bottom 44% of over 250 Zacks industries, suggesting that the outlook for the industry can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Revenues for Q3 2024 were $34.6 million, an increase of $8.9 million (or 35%) compared to $25.7 million in Q3 2023[73] - Revenues for the nine-month period ended September 30, 2024 were $104.9 million, an increase of $27.1 million (or 35%) compared to approximately $77.7 million in 2023[83] - Carrier services revenue was $22.4 million, an increase of approximately $7.7 million due to new federal government contracts signed at the end of 2023[73] - Carrier services revenue for the nine-month period was $62.2 million, an increase of $19.7 million compared to the same period in 2023[85] - Managed service fees were $8.5 million, an increase of approximately $0.4 million compared to Q3 2023, driven by new federal and commercial customers[74] - Managed service fees for the nine-month period were $26.4 million, an increase of $4.5 million compared to the same period in 2023[86] Profitability and Loss - Gross profit for Q3 2024 increased by $0.8 million to $4.7 million (or 14% of revenues), compared to $3.9 million (or 15% of revenues) in Q3 2023[77] - Gross profit for the nine-month period ended September 30, 2024, was approximately $14.3 million, representing 14% of revenues, compared to $11.6 million or 15% of revenues in 2023[89] - Net loss for Q3 2024 decreased by $495,900 to $425,200 compared to a net loss of $921,100 in Q3 2023[83] - Net loss for the nine-month period ended September 30, 2024, improved by $1.1 million to $1.6 million compared to a net loss of $2.7 million in the same period last year[94] Costs and Expenses - Cost of revenues for Q3 2024 was $29.9 million (or 86% of revenues), consistent with $21.8 million (or 85% of revenues) in Q3 2023[76] - Cost of revenues for the nine-month period was $90.6 million (or 86% of revenues), compared to $66.2 million (or 85% of revenues) in 2023[88] - General and administrative expenses for the nine-month period ended September 30, 2024, were $13.3 million, or 13% of revenues, compared to $11.7 million, or 15% of revenues in 2023[91] - Depreciation and amortization expense for the nine-month period ended September 30, 2024, was $768,600, compared to $789,300 in 2023[92] Cash Flow and Working Capital - Net working capital at September 30, 2024, was approximately $2.6 million, up from $1.4 million at December 31, 2023[96] - Cash used in operations for the nine months ended September 30, 2024, was approximately $0.8 million, compared to $1.8 million net cash provided by operations in the same period in 2023[97] - Cash provided by investing activities for the nine months ended September 30, 2024, was approximately $0.2 million, compared to cash used of approximately $0.5 million in 2023[100][101] - Cash used in financing activities for the nine months ended September 30, 2024, was approximately $0.7 million, compared to $0.4 million in 2023[103][104] Tax and Other Income - Income tax benefit for the nine-month period ended September 30, 2024, was $45,000, compared to an income tax provision of $68,400 in 2023[93] - Other income (expense) for the nine-month period ended September 30, 2024, was an expense of $(59,200), compared to $(198,400) in 2023[92]

Core Viewpoint - The market anticipates WidePoint (WYY) to report a year-over-year increase in earnings driven by higher revenues for the quarter ending September 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for WidePoint is a loss of $0.07 per share, reflecting a year-over-year improvement of +30%. Revenues are projected to be $30.41 million, an increase of 18.2% from the previous year [3]. - The stock may experience upward movement if the earnings report exceeds expectations, while a miss could lead to a decline [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 112.5%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for WidePoint is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.69%, complicating predictions for an earnings beat [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong indicator of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - WidePoint currently holds a Zacks Rank of 3, which, combined with a negative Earnings ESP, makes it challenging to predict a positive earnings surprise [10]. Historical Performance - In the last reported quarter, WidePoint was expected to post a loss of $0.08 per share but delivered a loss of $0.05, resulting in a surprise of +37.50% [11]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [12]. Conclusion - While WidePoint does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions ahead of the earnings release [15].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Analysis - WidePoint (WYY) - WidePoint (WYY) has shown a four-week price change of 4.7%, indicating growing investor interest [4] - Over the past 12 weeks, WYY's stock has gained 25.8%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - WYY has a beta of 1.65, suggesting it moves 65% more than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of B, suggesting it is an opportune time to invest [6] - WYY has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.30, indicating it is undervalued, as investors pay only 30 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides WYY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

Financial Performance - Revenues for Q2 2024 were $36 million, a 35% increase from Q2 2023[1] - Adjusted EBITDA for Q2 2024 was $811,000, a 479% improvement from Q2 2023[1] - Net loss for Q2 2024 decreased to $500,000, compared to a loss of $842,000 in Q2 2023[1] - Free cash flow for Q2 2024 was $800,000, an improvement of 467% compared to Q2 2023[1] - Revenues for the first six months of 2024 were $70.2 million, a 35% increase from the same period in 2023[2] - Adjusted EBITDA for the first six months of 2024 was $1.4 million, a 764% increase from the same period in 2023[2] - Revenues for the three months ended June 30, 2024, were $36,040,771, a 34.8% increase from $26,762,857 in the same period of 2023[9] - Gross profit for the six months ended June 30, 2024, was $9,559,113, compared to $7,719,577 for the same period in 2023, reflecting a 23.8% increase[9] - Net loss for the six months ended June 30, 2024, was $1,152,663, an improvement from a net loss of $1,793,552 in the same period of 2023[10] Cash Flow and Expenses - As of June 30, 2024, cash was $4.0 million with no bank debt[1] - Cash used in operating activities for the six months ended June 30, 2024, was $(2,637,380), compared to cash provided of $1,020,975 in 2023[10] - Cash at the end of the period on June 30, 2024, was $4,000,899, down from $7,775,113 at the end of the same period in 2023[10] - Operating expenses for the three months ended June 30, 2024, totaled $5,354,807, up from $4,636,369 in 2023, indicating a 15.5% increase[9] - Share-based compensation expense for the six months ended June 30, 2024, was $783,741, significantly higher than $235,570 in 2023[10] Other Income and Contracts - The company was awarded a $254 million contract modification by the U.S. Department of Homeland Security, increasing the contract ceiling to $754 million[1] - The company was selected by the U.S. Navy as one of seven contractors for the 10-Year, $2.7 billion Spiral 4 contract[1] - Interest income for the three months ended June 30, 2024, increased to $51,725 from $19,245 in 2023, representing a 168.5% increase[9] - Total other expense income for the three months ended June 30, 2024, was $(22,140), an improvement from $(66,529) in the same period of 2023[9] Outlook - The company maintains a positive outlook for the remainder of the year, supported by promising sales developments and technological advancements[2] - Weighted-average shares outstanding for the three months ended June 30, 2024, increased to 9,390,154 from 8,794,704 in 2023[9]

WidePoint Corporation (NYSE:WYY) Q2 2024 Earnings Conference Call August 14, 2024 4:30 PM ET Company Participants Jin Kang - President and CEO Jason Holloway - Chief Revenue Officer Robert George - CFO Conference Call Participants Barry Sine - Litchfield Hills Research Operator Good afternoon. Welcome to WidePoint's Second Quarter 2024 Earnings Conference Call. My name is Matthew, and I will be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, Jin Kang; C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Delaware 52-2040275 (State or other jurisdiction of (I.R.S. employer incorporation or organization) identification no.) Title of Each Class Trading Symbol Name of Exchange on Which Registered Common Stock, $0.001 par value per share WYY NYSE American Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION ...