WidePoint (WYY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $36 million, up 35% year-over-year, with six-month revenue at $70.2 million, driven by new US government contracts and managed services growth.

• Net loss for Q2 2024 narrowed to $500,000 ($0.05/share), improved from $842,000 in Q2 2023, reflecting higher revenues and controlled expenses.

• Achieved 28 consecutive quarters of positive adjusted EBITDA, with Q2 adjusted EBITDA at $811,000, a 479% increase year-over-year.

• Free cash flow improved for the third consecutive quarter, reaching $800,000 in Q2 2024.

• Major contract wins include a $2.7 billion Spiral 4 award and a $254 million DHS contract modification, supporting growth and competitive positioning.

Financial highlights

• Q2 2024 total revenue: $36 million (up from $26.8 million in Q2 2023); six-month revenue: $70.2 million (up from $52 million year-over-year).

• Q2 gross profit: $4.9 million (14% margin), compared to $3.9 million (15%) in Q2 2023; six-month gross profit: $9.6 million (14% margin).

• Q2 net loss: $500,000 ($0.05/share), six-month net loss: $1.2 million ($0.13/share), both improved year-over-year.

• Q2 adjusted EBITDA: $811,000, up 479% year-over-year; six-month adjusted EBITDA: $1.4 million, up 764%.

• Cash at June 30, 2024: $4 million, down from $6.9 million at year-end 2023, with no bank debt.

Outlook and guidance

• Full-year 2024 revenue expected between $120 million and $133 million.

• Adjusted EBITDA guidance: $2.1 million to $2.4 million; free cash flow: $2 million to $2.3 million.

• Management projects continued sales growth and profitability into 2025, with positive EPS anticipated.

• Existing cash, anticipated cash flows, and credit facility expected to be sufficient for the next 12 months.