WidePoint at Planet MicroCap Showcase: Strategic Growth and Strong Performance

On Wednesday, 23 April 2025, WidePoint Corporation (NYSE:WYY) presented at the Planet MicroCap Showcase: VEGAS 2025, highlighting its robust financial performance in 2024 and strategic initiatives for future growth. Led by CEO Jin Kang, the company emphasized its unique market position due to its FedRAMP authorized status and innovative solutions like MobileAnchor. While financial achievements were notable, the company faces the challenge of sustaining growth amidst increasing cybersecurity threats.

Key Takeaways

• WidePoint reported a 35% increase in revenue, totaling $142.6 million for 2024.
• The company achieved a 225% rise in adjusted EBITDA and a 933% increase in free cash flow.
• Key contracts include a $2.7 billion Navy contract and a half-billion-dollar DHS contract.
• WidePoint’s FedRAMP authorization provides a significant competitive advantage.
• The company aims to achieve earnings per share positive this year.

Financial Results

• Revenue: Closed 2024 with $142.6 million, a 35% increase from 2023, with 95% recurring revenue.
• Adjusted EBITDA: Ended the year at $2.6 million, marking a 225% increase and 30 consecutive quarters of positive results.
• Free Cash Flow: Achieved $2.5 million, a 933% rise, with five straight quarters of positive flow.
• Contract Backlog: Stands at $290 million.
• Cash Position: $6.8 million at year-end.
• Debt: The company reported zero bank debt.

Operational Updates

• FedRAMP Authorization: Achieved after nearly three years, allowing secure cloud data handling for federal clients.
• MobileAnchor Solution: Deployed as a quantum computing-resistant, multi-factor authentication tool.
• M365 Analyzer Solution: Developed to help manage software license costs.
• Certifications: Subsidiary received R2 v3 certification for electronic waste recycling and met various ISO standards.

Future Outlook

• Growth Strategy: Focuses on enhancing competitive edge with FedRAMP solutions and higher-margin SaaS contracts.
• Target Market: Expanding in federal, state, and local governments, alongside large commercial enterprises.
• Market Growth: Addressable market size is $36 billion, driven by cybersecurity threats and remote work trends.

Contracts and Partnerships

• DHS CWMS 2.0 Contract: Secured a half-billion-dollar contract, continuing a 15-year relationship.
• Navy Spiral 4 Contract: Captured a $2.7 billion contract.
• Task Order: Awarded a $25 million, 10-year mobility management task order.
• New Pursuits: Targeting NASA Sup 6 and Alliant 4 contracts with multi-billion-dollar ceilings.

For more details, readers are encouraged to refer to the full transcript below.

Full transcript - Planet MicroCap Showcase: VEGAS 2025:

Jin Kang, CEO, WidePoint Corporation: And we have been growing through organic and inorganic means for nearly thirty years. We provide secure mobile solution, using a mobility as a service business model. We help empower our customers to work from everywhere. Our current management team has been in place, since the second half of twenty seventeen. We have 95%, recurring revenues, a 290,000,000 in contract backlog, zero bank debt, $36,000,000,000 in addressable market, 6,800,000.0 in cash at the end of twenty twenty four, ’30 consecutive quarters of adjusted EBITDA positive.

And ended in 2024, we had 2,600,000.0 in adjusted EBITDA, which was a 225% increase from 2023. More notably, we have been free cash flow positive for now five straight quarters. And and we finished twenty twenty four with roughly 2,500,000.0 in free cash flow, which was a 933% increase. We closed 2024 with 142,600,000.0 in revenue, which was a 35% increase compared to 2023. We exceeded guidance for all of those three metrics, adjusted EBITDA, revenue and free cash flow.

We have at roughly $2.27 slightly less than $28,000,000 in market cap. I think that there’s a little bit of disconnect there, but I think that will resolve itself once we get to earnings per share positive, which is our objective for this year. And, you know, currently, Insider owns roughly 19% of of the outstanding shares. And so we see, you know, our our management team’s objectives are, you know, closely aligned with our investors. As I said, you know, our adjustable market size is $36,000,000,000 and growing.

You know, this includes federal, state, local governments, and large enterprise, commercial enterprises, large organization for whom security and compliance is key. Right? Organizations like the military, health care, finance, transportation, consumer products, energy sector, etcetera. This market is continuing to grow due to various cyber security threats, and we live in this post pandemic environment where everybody is working remotely. Right?

Because we are working remotely, the number of endpoints that we have to secure are continuing to grow. The budget to secure those endpoints are also growing. So that’s gonna continue to provide tailwinds for our business. Even under our current Doge environment, enterprises are not cutting back on cyber security and mobility solutions. Right?

We help our customers secure their endpoints with the most secure multi factor authentication solution available on the market today. We are the leading provider of secure mobility solutions. We help our customers, you know, empower their mobile workforce by helping them secure, manage, and gain visibility into their mobility assets. We secure customer cyber secure cyber interactions in the mobile world. What makes us unique is that we have an identity and access management solution that has never been hacked, implemented in all of the federal government agencies including the Department of Defense, one that has universal application, one that is quantum computing resistant.

And now we’re bringing that level of sophistication and security to the commercial market by using a new form factor where we’re able to put that level of security on your mobile device so that you can use your mobile device for your physical and logical access. Right? As I said, we are at the confluence of cyber security and mobility management. As and and, of course, in our pandemic environment, that’s doubly important because you need to be able to secure your endpoints. Right?

We have a solution that that, you know, solutions that were built from the ground up to support our customer’s secure mobility needs, and we own the intellectual property for each of our solutions, for the most secure multifactor authentication solution available on the market, the most comprehensive secure mobility solution, secure digital billing and analytics, maintaining Next up, we have WidePoint, Jin Kang, and Todd Dzak. I might have missed it. Thank you. It was it was close. It was close.

It was very close. Yeah. Good afternoon, everyone. And thank you all for your time. Hopefully, I’ll have some interesting things to say for for you all.

And I think there’s a lot of good pieces of information. So can everyone hear me okay? Okay. Again, thank you very much for your time. And, many thanks to, Planet Micro, for hosting this event and, giving us the opportunity to, where’s the page up button?

Oh, hang hang on. Here it is. Giving us the opportunity to showcase our our company. My name is Jin Kang, and I’m the CEO of WidePoint Corporation. With me today is Todd Dizak, who is our COO.

He’ll be addressing all of your, difficult questions at the conclusion of my presentation. I’ll I’ll be telling you a little bit about WidePoint Corporation, who we are, what we do, and why we are unique. But first, this is our an an administrative item here. I’m sure you’ve seen this before, so I won’t read through it, but a full, you know, safe harbor statement is available on our website at ypoint.com under investor relations. With that out of the way, let me give you a quick snapshot of, you know, YPoint.

We are a mobility as a service company founded in 1997, and we have been growing through organic and inorganic means for nearly thirty years. We provide secure mobile solution using a mobility as a service business model. We help empower our customers to work from everywhere. Our current management team has been in place since the second half of twenty seventeen. We have 95 recurring revenues, 290,000,000 in contract backlog, zero bank debt, $36,000,000,000 in addressable market, 6,800,000.0 in cash at the end of twenty twenty four, ’30 consecutive quarters of adjusted EBITDA positive.

And ended in 2024, we had 2,600,000 in adjusted EBITDA, which was a 225% increase from 2023. More notably, we have been free cash flow positive for now five straight quarters. And and we finished 2024 with roughly 2,500,000.0 in free cash flow, which was a 933% increase. We closed 2024 with $142,600,000 in revenue, which was a 35% increase compared to 2023. We exceeded guidance for all of those three metrics, EBITDA, revenue, and free cash flow.

We have at at roughly 2.27, slightly less than 28,000,000 in market cap. I think that there’s a little bit of disconnect there, but I think that will resolve itself once we get to earnings per share positive, which is our objective for this year. And, you know, currently, Insider owns roughly 19% of of the outstanding shares. And so we see our management team’s objectives are, you know, closely aligned with our investors. As I said, you know, our adjustable market size is $36,000,000,000 and growing.

You know, the this includes federal, state, local governments, and large enterprise commercial enterprises, large organizations for whom security and compliance is key. Organizations like the military, health care, finance, transportation, consumer products, energy sector, etcetera. This market is continuing to grow due to various cyber security threats, and we live in this post pandemic environment where everybody is working remotely. Right? Because we are working remotely, the number of endpoints that we have to secure are continuing to grow.

The budget to secure those endpoints are also growing. So that’s gonna continue to provide tailwinds for our business. Even under our current Doge environment, enterprises are not cutting back on cyber security and mobility solutions. Right? We help our customers secure their endpoints with the most secure multi factor authentication solution available on the market today.

We are the leading provider of secure mobility solutions. We help our customers, you know, empower their mobile workforce by helping them secure, manage, and gain visibility into their mobility assets. We secure customer cyber secure, cyber, interactions in the mobile world. What makes us unique is that we have an identity and access management solution that has never been hacked, implemented in all of the federal government agencies including the Department of Defense, one that has universal application, one that is quantum computing resistant. And now we’re bringing that level of sophistication and security to the commercial market by using a new form factor where we’re able to put that level of security on your mobile device so that you can use your mobile device for your physical and logical access.

Right? As I said, we are at the confluence of cyber security and mobility management. As and and, of course, in our pandemic environment, that’s doubly important because you need to be able to secure your endpoints. Right? We have a solution that that, you know, solutions that were built from the ground up to support our customer’s secure mobility needs, and we own the intellectual property for each of our solutions.

For the most secure multifactor authentication solution available on the market, the most comprehensive secure mobility solution, secure digital billing and analytics, maintaining full visibility of your mobile devices and mobile assets into as well as their usage and and and associated data analytics. Comprehensive IT as a service support providing full life cycle support for your for our customers IT infrastructure. Again, we own all of the intellectual property and we deliver our solution through a SaaS model. So in in terms of some of our technological advancements over the last, you know, couple of years, as I said, we own all of the intellectual property to all of our solutions. And, this this slide shows some of the accomplishment in 2024.

We achieved FedRAMP authorized status. I’ll I’ll go and get into more detail on that, in the later part of my presentation. Recognized by Gartner for managed mobility services and telecom expense management services. Our subsidiary received the r two v three certification for responsible recycling of electronic waste. Alright?

That’s a fairly difficult certification to get. Certified to meet, the requirements of various ISO standards, attesting to White Point’s dedication to quality, environmental, and occupational health and safety. Now let me highlight our our FedRAMP authorized status. Right? FedRAMP stands for Federal Risk and Authorization Management Program, FedRAMP.

And and we’ve been working with the GSA for nearly three years to get this authorized status. Right? What this status means is that we have passed rigorous security assessment and are officially approved to store, process, and transmit federal government data in the cloud. Right? The the what this means is is that we meet all of the federal government cybersecurity standards and requirements to be able to, you know, process, you know, their our customers’ information.

Right? Very rigorous, nearly three years to to to complete. And this is a very large hurdle to overcome. None of our competitors can claim this particular certification at this time. It will take we don’t know exactly where our competitors are in terms of where they are in the process, but I I will attest that it will take a very long time to get there.

This gives us a huge competitive advantage when we compete for contracts within the federal government as well as large commercial entities. Some of the other notable accomplished advancements, for 2024, MobileAnchor. This is our next generation identity and access management solution. We have successfully developed, tested, and deployed this particular solution, which is the most advanced, most secure multifactor authentication solution on your smartphone. We were able to put that, security certificate and identity management solution on your mobile phone.

You’ll be able to use your mobile phone for physical and logical access, signing documents, encrypting documents, signing emails, conducting cybersecurity transactions. As I’ve said, this is a quantum computing resistant identity management solution. So please be on the lookout for, you know, awards involving our mobile anchor solution. We have some direct to consumer solution that is happening. We’re we’re teaming with mobile virtual network operator, to be able to issue these digital certificates for the commercial and and retail business.

M three sixty five analyzer solution is is our enhancement to our current unified communication solution to help manage inventory of software licenses and cost. Right? We have successfully developed this and tested this capability to help our customer manage cost. Right? Remember, you know, think Doge here.

Our IT as a service was recognized by channel EDE for our comprehensive solution sets. Now, in the interest of time, I’m gonna I’m gonna skip this slide, but what this talks about is is our solutions are delivered through our proprietary systems. We own all of the IP, and it allows our customers to be able to secure, manage, and and gain insight into their mobility assets. So now a little bit more deeper into our cybersecurity solution that we and what we do to secure our customers’ endpoints. As I stated earlier, we provide the most secure multifactor authentication solution available on the market, one that is quantum computing resistant and one that has been has never been hacked and has been implemented in all of the federal government agencies, including the Department of Defense.

Now that same level of solution is available on your mobile device. Right? The same solution is relied upon by 18,000 enterprise enterprises worldwide. It provides the most secure physical and logical access. It eliminates a need for multiple user IDs and passwords.

I’m sure you have a lot of user ID and password combination that you use every day. We have been providing this solution since 1995 to the US government. We were the first company to be certified by the US Department of Defense to be able to issue these interoperable certificates. And we are only one of two certified by the US government to issue these credentials that serves as the foundation for the zero trust art security architecture. Now we have brought this DOD grade multi factor authentication to the commercial market and and with a new form factor.

Right? We recently set up the infrastructure to be able to begin issuing these digital certificates to the commercial world, and we deployed our mobile anchor solution. You know, we’re getting a lot of traction. We’re getting a lot of interest from our customers and potential customers, so please be on the lookout for additional press releases. A little bit more about our mobile anchor.

And this goes this slide goes into, you know, but know, a little more detail on that. But suffice it to say, this provides the same level of identity and access management as, you know, the federal government DOD grade identity management. It is a technological leap forward. As of now, it is a capability that is unmatched by our competitors. Our capability and solutions have enabled us to capture and pursue some significant, you know, contracts with the federal government.

We captured a half a billion dollar DHS CWMS two point o contract. We also were the incumbents on the CWMS one point o as well as its predecessor contracts. All told, we have been performing on this contract for the DHS for over fifteen years. We recently have been awarded the an additional 254,000,000 250,000,000 contract increase due to the success of the t CWMS two point o. We captured the Navy’s Spiral four contract, and and that has a value of $2,700,000,000.

We’ve recently been awarded a $25,000,000 10 year task order to provide mobility management solutions. We are also pursuing the NASA sup six and and the Alliant four contract with multibillion dollar contract ceiling. The Alliant four is actually it doesn’t have a contract ceiling. Essentially, it’s open. So you can the federal government can spend as as much money as they, I guess, they require.

And and I think they do also have the capability to print money, so they could do all of that. We are punching way above our weight in terms of competing with these large, you know, contractor and being able to win some of these large contracts. And, you know, we’ve been pretty successful at it. And we’ve been teaming with a lot of them as well, and I’ll I’ll talk a little bit about that. In terms of our growth strategy, we have a we have a multi pronged strategy for accomplishing our our objectives.

Excuse me. That’s Marco Marco Rubio minute, so excuse me. We will enhance our competitive edge by investing in our solution set, such as FedRAMP authorized status that we we achieved recently, Microsoft independent software vendor certification, full integration with industry standard applications such as MDM, MAM, mean, mobile device management, mobile application management, ServiceNow, etcetera. We will improve, leverage by pursuing higher margin SaaS contracts and expanding into the, the commercial market. We will continue to expand our customer base by investing in our direct sales and marketing, staff and efforts, and teaming with large entrenched systems This presentation has now finished.

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