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WidePoint(WYY) - 2023 Q2 - Earnings Call Transcript
WYYWidePoint(WYY)2023-08-15 21:34
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Financial Data and Key Metrics Changes - For Q2 2023, revenue was 26.8million,anincreaseof26.8 million, an increase of 3.7 million or 16% from 23.1millioninthesameperiodlastyear[13]−Forthesix−monthperiodendedJune30,2023,revenuewas23.1 million in the same period last year [13] - For the six-month period ended June 30, 2023, revenue was 52.1 million, an increase of 6.8millionor146.8 million or 14% from 45.5 million in the same period last year [13] - Net loss for Q2 2023 was 842,000,comparedtoanetlossof842,000, compared to a net loss of 13.8 million in the same period last year [19] - The company ended the quarter with 7.8millionincash,aidedbyacceleratedcashreceipts[20]BusinessLineDataandKeyMetricsChanges−CarrierservicesrevenueforQ22023was7.8 million in cash, aided by accelerated cash receipts [20] Business Line Data and Key Metrics Changes - Carrier services revenue for Q2 2023 was 14.2 million, an increase of 1.7millionfrom1.7 million from 12.5 million in Q2 2022 [14] - Managed services revenue for Q2 2023 was 6.9million,showingmarginalgrowthcomparedto6.9 million, showing marginal growth compared to 6.7 million in the same period last year [15] - Billable services fees increased to 1.9millioninQ22023from1.9 million in Q2 2023 from 1 million in Q2 2022 [15] - Reselling and other services revenue was 3.8millioninQ22023,upfrom3.8 million in Q2 2023, up from 2.9 million in the same period last year [16] Market Data and Key Metrics Changes - The company noted increased interest from both government and commercial entities in technology management solutions [10] - Cybersecurity threats are rising, with 2,200 cyber-attacks per day, highlighting the demand for secure solutions [11] Company Strategy and Development Direction - The company is focused on operational efficiency and has seen improvements despite a leaner team due to recent workforce reductions [4][5] - Investments in technology management systems are expected to conclude by the end of the year, with FedRAMP authorization anticipated [8][22] - The company is exploring M&A opportunities that could benefit existing operations [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating unpredictable macroeconomic trends, including potential government budget issues [6][26] - The company expects to improve cash flow year-over-year by approximately 3.5million[23]−Managementbelievestheyareapproachinganinflectionpointingrowth,drivenbyincreasedclientretentionandexpandedservicescope[24]OtherImportantInformation−Thecompanyhascompletedremoteissuanceofcertificatesanddevelopedahybridissuancecapabilityforclients[9]−ThegrossprofitforQ22023was3.5 million [23] - Management believes they are approaching an inflection point in growth, driven by increased client retention and expanded service scope [24] Other Important Information - The company has completed remote issuance of certificates and developed a hybrid issuance capability for clients [9] - The gross profit for Q2 2023 was 3.9 million, or 15% of revenues, compared to $3.3 million, or 14% of revenues in Q2 2022 [17] Q&A Session Summary Question: How does the current federal government budget discussions affect FEMA and WidePoint? - Management stated that current contracts are funded with little risk to revenue, but new projects could face delays [26] Question: Can you provide more color on your FedRAMP status? - Management indicated they are awaiting final authorization from the ATF, with expectations for completion in Q4 2023 [27]