WidePoint(WYY) - 2024 Q3 - Quarterly Report

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]