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WidePoint(WYY) - 2023 Q1 - Earnings Call Transcript
WYYWidePoint(WYY)2023-05-16 00:03
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Financial Data and Key Metrics Changes - In Q1 2023, the company's revenue was 25.3million,anincreaseof25.3 million, an increase of 2.8 million or 13% from 22.5millioninthesameperiodlastyear[16]−GAAPnetlossforQ12023was22.5 million in the same period last year [16] - GAAP net loss for Q1 2023 was 950,000 or 0.11perdilutedshare,comparedtoanetlossof0.11 per diluted share, compared to a net loss of 393,000 or 0.04perdilutedshareinthesameperiodlastyear[21]−AdjustedEBITDAforQ12023was0.04 per diluted share in the same period last year [21] - Adjusted EBITDA for Q1 2023 was 20,000, down from 344,000inthesameperiodlastyear[21]BusinessLineDataandKeyMetricsChanges−Carrierservicesrevenueincreasedto344,000 in the same period last year [21] Business Line Data and Key Metrics Changes - Carrier services revenue increased to 13.6 million, up approximately 700,000from700,000 from 12.9 million in Q1 2022, primarily due to a federal government client increasing phone lines managed by 75% [17] - Managed services revenue remained consistent at 8.1million,whilebillableservicesfeesrevenuewas8.1 million, while billable services fees revenue was 8.4 million, also consistent with the previous year [18] - Reselling and other services revenue rose to 3.6million,anincreaseof3.6 million, an increase of 2.5 million from 1.1 million in the same period last year, driven by the resale of text capture capabilities to federal clients [18] Market Data and Key Metrics Changes - The company has signed three key deals with CSG International, contributing significantly to revenue growth [5][6] - The company is experiencing increased traction in the federal government sector, particularly in text capture capabilities for archival purposes [6] Company Strategy and Development Direction - The company is focusing on inorganic growth through M&A opportunities and is evaluating potential candidates with the help of investment banks [23][24] - Continued investment in technology infrastructure is aimed at capturing new opportunities, including the launch of Unified Communication Analytics solutions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a cash flow positive status by the end of the year, driven by sales and marketing efforts and client retention [25][26] - The company expects revenues for the full year to range between 103 million and 108million,withaGAAPnetlossprojectedbetween108 million, with a GAAP net loss projected between 2.8 million and 3.2million[25]OtherImportantInformation−Thecompanyhasachievedits23rdconsecutivequarterofbeingEBITDApositive[16]−ThecurrentratioattheendofQ12023was1.1:1,withcashdecreasingto3.2 million [25] Other Important Information - The company has achieved its 23rd consecutive quarter of being EBITDA positive [16] - The current ratio at the end of Q1 2023 was 1.1:1, with cash decreasing to 4.6 million from $7.5 million at the end of 2022 due to billing delays [22] Q&A Session Summary Question: If the debt limit problem is not solved, are there funds available to pay WidePoint? - Management believes that funds have been obligated to contracts, and they expect to be paid for services rendered, despite potential delays in payments if the government shuts down [28][29]