WidePoint (WYY) 2024 Annual Gateway Conference summary

Company overview and market position

• Provides secure mobile solutions via a technology management as a service model, with 95% recurring revenues and $320 million in contract backlog.

• Achieved 28 consecutive quarters of positive EBITDA and three consecutive quarters of positive free cash flow, with a $35 million market cap and insider ownership at 19%.

• Operates in a $36 billion and growing addressable market, serving federal, state, local governments, and commercial enterprises.

• Core differentiator is a quantum computing resistant, never-hacked identity and access management solution, widely used in federal agencies.

• Owns IP for all solutions, delivers via SaaS, and is progressing toward FedRAMP authorization.

Financial performance and guidance

• Trailing twelve-month revenue reached $120 million, with $2 million EBITDA and $1.4 million positive free cash flow in the first half of the year.

• Ended 2023 with $106 million in revenue, at the high end of guidance, and expects $120–133 million in 2024 revenue.

• 2024 guidance includes $2.1–2.4 million adjusted EBITDA and $2–2.3 million free cash flow.

• Revenue is approximately 80% federal and 20% commercial, with federal contracts typically longer in duration.

• Focused on increasing managed services and SaaS revenue to drive profitability.

Major contracts and growth opportunities

• DHS CWMS 2.0 contract ceiling increased to $754 million, with over $500 million captured and $300 million in telecom savings delivered.

• Positioned to win the upcoming DHS CWMS 3.0 contract, estimated at $1.5 billion over ten years.

• Selected for the $2.7 billion Navy Spiral 4 contract, expecting deal flow in late 2024 and beyond.

• Pursuing the $60 billion NASA SEWP contract and other large opportunities.

• Strategic partnerships with large systems integrators are expanding, making the company a preferred vendor.