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]

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]

Group 1 - WidePoint Corporation is confirmed to present at the 2024 Annual Gateway Conference on September 4-5 at the Four Seasons Hotel in San Francisco, CA [1] - The management team of WidePoint is scheduled to present on September 4 at 9:00 a.m. Pacific Time, with the presentation available for live webcast and replay [2] - WidePoint's executives will be available for one-on-one meetings throughout the conference, providing opportunities for direct engagement with investors and analysts [2] Group 2 - The Gateway Conference celebrates 25 years of connecting growth-stage companies with investors, analysts, and partners, offering a platform for public and private companies to present their stories [3] - Attendees will have access to a diverse array of companies across various sectors, including technology, cleantech, consumer, industrials, financial services, and healthcare [4] - The conference will feature presentations and one-on-one meetings with senior executives from over 100 private and public companies, enhancing networking opportunities [4] Group 3 - Gateway Group is a financial communications and digital media advisory firm with over 25 years of experience, specializing in assisting emerging growth companies [5] - The firm provides services in corporate communications, investor relations, public relations, and digital media, catering to various stages of corporate development [5] Group 4 - WidePoint Corporation is a leading Managed Solution Provider (MSP) focused on securing the mobile workforce and enterprise landscape [6] - The company offers pioneering technology solutions, including Identity and Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, IT as a Service (ITaaS), Cloud Security, and Analytics & Billing as a Service (ABaaS) [6]

Company Overview - WidePoint Corporation is a leading technology Managed Solution Provider (MSP) focused on securing and protecting the mobile workforce and enterprise landscape, offering solutions such as Identity and Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service (ITaaS), Cloud Security, and Analytics & Billing as a Service (ABaaS) [6] Event Participation - WidePoint Corporation is confirmed to present at the 2024 Annual Gateway Conference on September 4-5 at the Four Seasons Hotel in San Francisco, CA [1] - The management team is scheduled to present on September 4 at 9:00 a.m. Pacific Time, with the presentation available for live webcast and replay [2] Conference Details - The Gateway Conference celebrates 25 years of connecting growth-stage companies with prospective investors, analysts, and partners, providing a platform for public and private companies to share their stories [3] - Attendees will have access to a diverse array of companies across various sectors, including technology, cleantech, consumer, industrials, financial services, and healthcare, with opportunities for one-on-one meetings with senior executives from over 100 companies [4]

Financial Results - WidePoint Corporation conducted a conference call on May 15, 2024, to discuss its financial results for Q1 2024[5] - The financial results for the quarter ended March 31, 2024, were announced in a press release issued on the same day[5] - The report does not include specific financial metrics or performance indicators from the earnings call[5] Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[6] - The company has not indicated whether it is an emerging growth company[2] Company Information - The company is listed on the NYSE American under the trading symbol WYY[4] - The address of the principal executive office is 11250 Waples Mill Road, South Tower 210, Fairfax, Virginia 22030[2] - The CEO of WidePoint Corporation is Jin Kang, who signed the report on May 20, 2024[11] Conference Call Details - The conference call transcript is available as Exhibit 99.1, and the earnings press release is available as Exhibit 99.2[7] Product and Market Developments - No new products, technologies, market expansions, or acquisitions were mentioned in the provided content[5]

WidePoint Corporation (NYSE:WYY) Q1 2024 Earnings Conference Call May 15, 2024 4:30 PM ET Company Participants Jin Kang - President and CEO Jason Holloway - Chief Revenue Officer Robert George - Chief Financial Officer Conference Call Participants Barry Sine - Litchfield Hills Research Operator Good afternoon. Welcome to WidePoint's First Quarter 2024 Earnings Conference Call. My name is Kelly, and I'll be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to ___________________ Commission File Number: 001-33035 WidePoint Corporation (Exact name of Registrant as specified in its charter) Delaware 52-204 ...