Latest news with #WYY
Yahoo
16-05-2025
- Business
- Yahoo
WidePoint Corp (WYY) Q1 2025 Earnings Call Highlights: Strategic Wins Amidst Financial Adjustments
Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. WidePoint Corp (WYY) achieved FedRAM authorized status for its ITMS solution, enhancing its visibility and accessibility to federal agencies. The company was awarded a new task order under the Spiral 4 contract, indicating growing momentum and potential for future awards. WidePoint Corp (WYY) reported a robust sales pipeline with several task orders in development and multiple responses to active RFQs. The company is strategically investing in its device as a service program, including a dedicated facility and new personnel to support anticipated demand. WidePoint Corp (WYY) has a strong alignment with federal government priorities, particularly in reducing waste, fraud, and abuse, which could serve as a tailwind for its business. An out of period accounting adjustment reduced revenue by $2.7 million and cost of revenue by $2.5 million, impacting the financial results for the quarter. The adjustment in revenue recognition may slightly degrade revenue growth in 2025 due to the new accounting treatment of certain reselling contracts. Net loss for the first quarter was $724,000, an increase from a net loss of $653,000 in the same period last year. There are ongoing administrative challenges with a major customer affecting invoice approvals and cash flow, which may take a couple of quarters to resolve. General administrative expenses increased due to inflationary pressures, which could continue to impact financial performance. Warning! GuruFocus has detected 6 Warning Signs with WYY. Q: Regarding the accounting adjustment, should we gross up revenue by 2.7% and gross profit by about 200k to understand the actual performance for the quarter? A: Yes, that's correct. (Robert George, CFO) Q: Will the accounting adjustment impact results for the rest of the year? A: No, the adjustment is only for this period. However, the change in accounting for reselling contracts will slightly degrade revenue recognition over the full term, affecting 2025 revenue. (Robert George, CFO) Q: Can you provide an update on the timeline for the CWMS recompete? A: We expect the recompete to occur this year, with an award before the current contract expires in November. We are confident in our position due to our past performance and integration with DHS systems. (Jin Kang, CEO) Q: If the recompete isn't completed by November 2025, will revenue drop off? A: No, we have task orders extending to November 2026, and there are options to extend the contract or add funds to prevent a revenue drop-off. (Jin Kang, CEO) Q: What is the total amount of task orders received under Spiral 4, and is it your second-largest contract? A: Spiral 4 has a $2.7 billion contract value, the largest we've won, but DHS remains our largest revenue source. We've announced a $2.5 million base year contract and two additional modest contracts under Spiral 4. (Jin Kang, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
WidePoint: Q1 Earnings Snapshot
FAIRFAX, Va. (AP) — FAIRFAX, Va. (AP) — WidePoint Corp. (WYY) on Thursday reported a loss of $724,000 in its first quarter. The Fairfax, Virginia-based company said it had a loss of 8 cents per share. The information technology services provider posted revenue of $34.2 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on WYY at
Yahoo
17-04-2025
- Business
- Yahoo
WidePoint Corp (WYY) Q4 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue: $142.6 million for the full year 2024, a 35% increase compared to 2023. Adjusted EBITDA: $2.6 million for the full year 2024, a 229% increase from the previous year. Free Cash Flow: $2.5 million for the full year 2024, a 933% increase from the previous year. Net Loss: $1.9 million for the full year 2024, improved from a $4 million loss in 2023. Gross Profit: $19 million for the full year 2024, with a gross margin of 13%. Carrier Services Revenue: $86.8 million for the full year 2024, an increase of $28.6 million from 2023. Managed Services Fees: $35.8 million for the full year 2024, an increase of $4.5 million from 2023. Contract Backlog: Approximately $290 million as of December 31, 2024. Cash Balance: $6.8 million at the end of 2024. Warning! GuruFocus has detected 3 Warning Signs with WYY. Release Date: April 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. WidePoint Corp (WYY) achieved a 35% increase in full-year revenue, reaching approximately $142.6 million, surpassing their revenue guidance. The company secured $51.2 million in total contract value, with significant contributions from federal agencies and commercial organizations. WidePoint Corp (WYY) achieved FedRAMP authorized status for its Intelligent Technology Management System (ITMS), enhancing its market position and opening new federal contract opportunities. The integration of IT Authority into the WidePoint brand has streamlined operations, enhancing customer response and increasing potential for upselling and cross-selling. WidePoint Corp (WYY) reported a 229% increase in adjusted EBITDA and a 933% increase in free cash flow for the year, indicating strong financial performance. The delay in the earnings call was due to the complexity of new contracts and increased business growth, which extended the annual audit process. Gross profit margins decreased slightly due to increased carrier services, impacting overall profitability. The company experienced administrative challenges with a major customer, affecting cash flow and invoice approvals. Despite positive financial metrics, WidePoint Corp (WYY) reported a net loss for the year, although it was an improvement over the previous year. There is uncertainty regarding potential impacts from federal budget cuts and changes in government contracting processes, which could affect future business. Q: Can you provide an update on the pilot program with federal agencies for MobileAnchor? A: Jin Kang, President and CEO, stated that the pilot with a federal agency related to the transportation industry is progressing well, with plans to increase the number of credentials issued. Additionally, another agency related to K-12 education is also showing interest in the technology. Q: Are there any impacts from the federal budget cuts and administrative changes on WidePoint's operations? A: Jin Kang mentioned that so far, WidePoint has not experienced negative impacts from federal budget cuts. The company is on long-term contracts with the government, and agencies like the Department of Homeland Security (DHS) are expected to maintain or increase their spending. WidePoint is monitoring changes in federal acquisition processes closely. Q: What is the outlook for capital expenditures and cash deployment in 2025? A: Jin Kang and Robert George, CFO, indicated that capital expenditures are expected to be minimal, around $200,000, primarily for revenue-generating activities. The company aims to improve its cash position and continue fortifying the balance sheet. Q: How is WidePoint engaging with the Department of Government Efficiency (DOGE) to leverage cost-saving opportunities? A: Jin Kang highlighted WidePoint's commitment to cost savings and its alignment with DOGE's objectives. The company is actively seeking to engage with DOGE to demonstrate how its services can help reduce technology spending without cutting staff, particularly in areas like device management and billing analytics. Q: Can you clarify the guidance for 2025, particularly regarding growth trajectory and earnings expectations? A: Jin Kang explained that WidePoint aims to achieve positive earnings per share for 2025 and expects to maintain double-digit percentage growth in revenue, EBITDA, and cash flow. The company plans to provide more detailed guidance after the first quarter, as it assesses recent developments and finalizes forecasts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
