WidePoint(WYY) - 2025 Q1 - Quarterly Results

Financial Performance - WidePoint Corporation reported total revenues of approximately $142.6 million for the full year 2024, a 35$106 million in 2023[22]. - The company achieved $2.6 million in adjusted EBITDA for the year, reflecting a robust 229$2.5 million, a significant improvement from negative free cash flow of approximately $300,000 in 2023, representing a 933$24.6 million, an increase of $8.9 million compared to the same period in 2023[23]. - Full-year net loss improved by$2.1 million to $1.9 million or a loss of$0.21 per share, compared to a net loss of $4 million or a loss of$0.46 per share in the previous year[30]. - Net loss for Q4 improved to $356,000 or a loss of$0.04 per share, compared to a net loss of $1.3 million or a loss of$0.15 per share for the same period last year[30]. - Cash balance at year-end was $6.8 million, consistent with the end of 2023, with a revolving line of credit providing$4 million of potential borrowing capacity[31]. Contract and Backlog - WidePoint secured $51.2 million in total contract value for the year, with$45.6 million awarded by federal agencies[8]. - As of December 31, 2024, WidePoint's contract backlog stood at approximately $290 million, excluding a recent$25 million task order award[14]. - Anticipated task order award under the Spiral 4 contract totals $25 million over a 10-year period, indicating continued government spending despite budget cuts[33]. - The Spiral 4 contract is expected to generate an additional$2.5 million annually, contributing positively to the company's revenue[63]. - The company ended 2024 with a contract backlog of approximately $290 million, providing a strong revenue outlook for 2025[63]. Operational Efficiency - General and administrative expenses for the year were$17.6 million, or 12% of revenue, compared to 15% in 2023, indicating improved operational efficiency[27]. - Sales and marketing expenses for the year were $2.3 million, remaining constant as a percentage of revenues at 2%[26]. Product Development and Market Strategy - The company launched two new solutions in 2024: MobileAnchor and M365 Analyzer, aimed at enhancing security and providing actionable insights for clients[10]. - Focus on commercialization of new solutions, particularly MobileAnchor and M365 Analyzer, to capture mobile digital credential market share[37]. - New products such as the M365 Analyzer and MobileAnchor are expected to meet significant market demand, enhancing revenue potential[63]. Future Outlook - Company aims to expand strategic relationships and grow contract backlog, with a focus on the MobileAnchor solution expected to be fully commercialized in 2025[35]. - Goal to deliver positive earnings per share for the full year 2025, driven by technological innovations and strong performance across business lines[38]. - Guidance for 2025 will be provided after Q1, with expectations for double-digit percentage growth in top line and similar growth in EBITDA and cash flow[58]. - The company plans to provide confident guidance during the Q1 call, indicating a positive outlook despite macroeconomic uncertainties[62]. - The company is optimistic about capturing additional work from the DOGE project, which is anticipated to be a tailwind for growth[63]. Compliance and Authorization - The company achieved FedRAMP authorized status for its Intelligent Technology Management System (ITMS), enhancing its market position and access to federal contracts[11]. - Preparing for the DHS CWMS 3.0 recompete, with a proposal team formed to address anticipated RFP requirements[36].