WidePoint(WYY) - 2024 Q4 - Annual Report

Revenue Growth - Revenues for the year ended December 31, 2024, were $142.6 million, an increase of$ 36.5 million (or 34%) compared to approximately $106.0 million in 2023[199] - Carrier services revenues increased by$ 28.5 million to $86.8 million from$ 58.2 million last year, primarily due to increased contracting activity with federal customers[199] - Managed service fees increased by $4.5 million to$ 35.8 million from $31.3 million last year, attributed to a new commercial contract for a US government end customer[199] - U.S. Federal Government revenues increased by$ 34.4 million to $118.9 million in 2024 compared to$ 84.5 million in 2023[200] - Total revenue for the year ended December 31, 2024, was $142.6 million, representing a 34% increase from$ 106.0 million in 2023[208] - Sales to federal government customers increased significantly, totaling $20 million in 2024 compared to$ 1.3 million in 2023[207] Profitability - Gross profit for Carrier services was $86.8 million, a 49% increase from the previous year, while Managed services gross profit was$ 55.8 million, a 17% increase[205] - Gross profit for 2024 was $19.0 million, or 13% of revenues, down from$ 15.6 million, or 15% of revenues in 2023[208] - Net loss for 2024 was $1.9 million, or$ 0.21 loss per share, an improvement from a net loss of $4.0 million, or$ 0.46 loss per share in 2023[220] Operating Expenses - Cost of revenues for the year ended December 31, 2024, was $123.5 million (or 87% of revenues) compared to$ 90.4 million (or 85% of revenues) in 2023[203] - General and administrative expenses for 2024 were $17.6 million, or 12% of revenues, compared to$ 15.9 million, or 15% of revenues in 2023[213] Cash Flow and Financing - Cash provided by operating activities for 2024 was approximately $1.6 million, up from$ 0.6 million in 2023[224] - Cash used in financing activities for 2024 was approximately $0.9 million, reflecting line of credit advances and payments[230] - The company’s net working capital increased to approximately$ 2.4 million in 2024 from $1.4 million in 2023[221] - The company sold a total of$ 2.9 million of receivables for $2.8 million in proceeds net of fees in 2024[234] - The company entered into a$ 4 million revolving line of credit facility on February 29, 2024, renewed through February 28, 2026[236] Strategic Initiatives - The company aims to grow recurring managed services revenues and leverage its FedRAMP Authorized status to capture government business[176] - The company plans to explore integration of artificial intelligence into its solutions to enhance information security and service delivery[186] - The company completed the integration of acquired assets from ITA and is focused on expanding its customer base and sales pipeline[176] Tax and Valuation - The company recorded a valuation allowance against a portion of domestic deferred tax assets due to the likelihood of not earning sufficient income to realize these assets[196]