Financial Data and Key Metrics Changes - In Q1 2023, the company's revenue was $25.3 million, an increase of $2.8 million or 13% from $22.5 million in the same period last year [16] - GAAP net loss for Q1 2023 was $950,000 or $0.11 per diluted share, compared to a net loss of $393,000 or $0.04 per diluted share in the same period last year [21] - Adjusted EBITDA for Q1 2023 was $20,000, down from $344,000 in the same period last year [21] Business Line Data and Key Metrics Changes - Carrier services revenue increased to $13.6 million, up approximately $700,000 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 $8.1 million, while billable services fees revenue was $8.4 million, also consistent with the previous year [18] - Reselling and other services revenue rose to $3.6 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 $108 million, with a GAAP net loss projected between $2.8 million and $3.2 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]
WidePoint(WYY) - 2023 Q1 - Earnings Call Transcript