WidePoint Corporation

will begin shortly. We'll be right back. We'll be right back. Good afternoon. Welcome to WidePoint's second quarter 2024 earnings conference call. My name is Matthew, and I will be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, Jen Kang, Chief Revenue Officer, Jason Holloway, and Chief Financial Officer, Robert George. Following their remarks, we will open up the call for questions from White Point's publishing analysts and major investors. If your questions were not taken today and you'd like additional information, please contact White Point's investor relations team at wyy at gateway-grp.com. Before we begin the call, I'd like to provide White Point's safe harbor statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of White Point Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-Q filed with the Securities and Exchange Commission. Finally, I'd like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.widepoint.com. Now I'd like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang. Sir, please proceed.

Thank you, Operator, and good afternoon to everyone. Thank you for joining us today to review our financial results for the second quarter ended June 30, 2024. I am pleased to share that we have continued to build on the momentum from previous quarters, having finished Q2 ahead of forecast for the second consecutive time and seeing significant year-over-year improvements in revenue, adjusted EBITDA, and free cash flow. Our revenue for second quarter was $36 million, and our six-month revenue ended June 30, 2024, was $70 million, both a 35% increase from the same period in 2023. and a testament to our team's ability to execute our sales and marketing strategy. We achieved our 28th consecutive quarter of positive adjusted EBITDA, concluding with $811,000, or 479% increase from the same period last year. For the six months ended June 30, 2024, our adjusted EBITDA was approximately $1.4 million, which is a 764% increase from the same period last year. We also achieved a third consecutive quarter of positive free cash flow, sequentially improving from 310,000 in Q4 2023 and 566,000 and 800,000 in the first and second quarter 2024, respectively. Compared to where we were last year, our position in the capital markets has improved significantly, thanks to our team's dedication to executing our organic growth strategy. Our sales and marketing team continues to deliver and capture new high margin contracts that have positioned us well for potential positive earnings per share for 2025. Additionally, all of our capital investments and fixed costs have been paid for, and we continue to aggressively manage our costs, supporting our future bottom line results, margin improvements, and profitability projections. As evidenced by our consecutively improving free cash flow figures, we're heading in the right direction. Our strategic partnerships and investments, particularly in our different business solutions, have played an incremental role in driving our sales growth and have significantly contributed to our top line performance over the past several quarters. These efforts, along with our certification and accreditation, superior and diverse suite of offerings, as well as recently announced mobile anchor digital credential solution, have positioned us well to be able to successfully target our competitors' business. YPoint is now in a strong position where our strategic partners seek us out and want to work with us, a significant shift from a few years ago when we were the ones pursuing them. The investments and efforts we have made over the years are paying off, and we are excited to continue building on this upward momentum towards profitable return for our value shareholders. Moving on to some second quarter contract highlights and operational developments, the standout this quarter was our $2.7 billion Spiral IV contract award, where we were one of seven companies, including the U.S. Big Three wireless carriers, to provide a full range of wireless and telecommunication services to military personnel and federal civilian employees stationed within the country and the U.S. territories. We also received the contract modification, adding $254 million to the ceiling of the CWMS 2.0 contract with DHS. Specifically with Spiral 4, we have started receiving initial RFQs and are in the process of setting up administrative arrangements with the U.S. Navy, as well as establishing vendor agreements for services and equipment We have a differentiated set of offerings for the Navy and believe that we will be able to successfully compete with previous incumbents on this contract. We look forward to sharing more good news with you on this front on our future calls. Our CWMS 2.0 contract with DHS is an indefinite delivery, indefinite quantity, or IDIQ contract valued at $754 million. reflecting an increase of $254 million, which represent nearly a 55% increase from the original contract value. And as announced in our previous earnings call, we have begun to receive additional task order requests or quotes from DHS since the contract ceiling increase. We should see the results from these new task order awards that will improve our top line and bottom line results. Additionally, as many of you have seen in our press release, we made a strategic hire by bringing on Michelle Richards, who is now our lead for CWMS program. Michelle has an extensive background working within the DHS community and brings to White Point over three decades of experience in the mobile telecommunication industry and over 15 years of federal government contracting experience. Michelle's industry stature will help White Point enhance our commercial and federal presence and impact. and her expertise will be invaluable in preparing for and capturing significant portions of the Spiral 4 contract. We are excited to have her on board, and with her vision and mission perfectly aligned with YPoints, we look forward to the immense value she will be providing. In addition to these two IDIQ contracts, we have two more exciting milestone deals currently in the works. First is the CWMS 3.0 RFI, a 10-year and approximately $1.5 to $2 billion contract. Our systems and processes are closely integrated with DHS systems, and our strong track record for past performance positions us in the best spot to re-win this contract. We hold certification and accreditations that our competitors cannot match, and our pending FedRAMP authorized status will further strengthen our competitive edge. Additionally, we are pursuing the SOUP 6 contract with NASA. This opportunity is a 10-year, $60 billion government-wide acquisition contract, or GWAC, that can be utilized by every government agency. This contract's scope of work include all manners of IT products and services. We believe that we have the qualification, the certifications, and accreditations to be a winner on this contract. We will also be positioned well with a differentiated set of products and services to capture a significant amount of work under this contract. To maximize our ability to capture significant work under these outstanding IDIQ contracts, we have recently implemented a project management office model, or PMO. This model will aid YPoint in outperforming our competitors in capturing work under these IDIQ contracts. The PMO model takes a team approach to managing large programs, ensuring that there is no single point of failure, and a model that has worked well in our other marquee programs. We will continue to leverage this PMO model and are excited to see our team capture additional work to further drive our top and bottom line growth. These billion-dollar IDIQ contracts we pursue, such as the $2.7 billion Spiral 4 and the $60 billion Soup 6 contracts, are crucial to our company's long-term growth strategy. These contracts provide a target-rich environment offering a unique competitive advantage for YPoint's sales and marketing team. Many companies aspire to operate in such a target-rich, lucrative ecosystem, but very few have the opportunity. With our recent strategic investments, partnerships, certifications, and accreditations, and application of the PMO model, we continue to aggressively invest in our sales and marketing efforts to position ourselves to maximize our ability to capture work, and more importantly, the opportunity to even do so in the first place. This proactive approach aims to ensure that YPoint secures a meaningful portion of these contracts. Even capturing a small percentage of the billion-dollar opportunity from these two contracts alone could substantially elevate our growth trajectory. In the commercial sector, we are seeing pilot projects launched and strategic partnership consummated with systems integrators, which are resulting in new opportunities. We are pursuing sizable opportunities with Fortune 100 companies and look forward to providing you with news of contract awards later this year. In the second quarter alone, we saw contractual actions across all WidePoint solution lines, including our managed mobility services, identity and access management, IT as a service, and interactive billing and analytics. These new opportunities are the high-margin SaaS contracts our sales and marketing team is aggressively pursuing, which are expected to contribute greatly to our bottom-line performance. We begin the third quarter with approximately $320 million in federal contract backlog. Additionally, our current qualified sales pipeline is healthier than it has ever been. To provide you some additional color on our sales pipeline, I will now hand the mic over to Jason, who will dive deeper into our sales and marketing efforts and recent technological developments, specifically our new proprietary mobile anchor digital credential solution. Jason.

Thanks, Jen, and good afternoon, everyone. As Jen just mentioned, We successfully developed, tested, and authenticated our new proprietary mobile anchor digital credential. This digital credential solution no longer requires a smart card, but instead is deployed directly onto smart mobile devices, providing the highest level of security for mobile digital credentials available while ensuring that cyber interactions use the most secure identity management solutions on the market today. This is a technology breakthrough and places WidePoint ahead of our competition in the cyber identity world. We have already successfully deployed Mobile Anchor in a federal agency and are actively marketing it to other federal and commercial agencies that currently use the traditional smart card-based credentials. We continue to establish our competitive edge, and this new product will enable us to win business from our competitors as they do not offer similar solutions. This coincides with our strategy to win work away from our competitors in the IDM sector. We're excited to continue marketing this new product and look forward to potentially implementing it within our pipeline of deals currently in the works. On a related note, Mobile Anchor has traction within the Department of Education. As you are aware, we've been aggressively pursuing K-12 at the district level. Now we are seeing a shift in getting closer to securing the necessary customer funding to move this initiative forward. Even though WidePoint has been at the forefront of identity and access management since the inception of PKI, it takes time to reconfigure our solution to address a market such as K-12. We will keep you posted as Mobile Anchor gains traction within the Department of Education. As Jen mentioned earlier, SOUP6 is a very exciting opportunity for WidePoint. Due to its 10-year, $60 billion ceiling, WidePoint is uniquely positioned to provide our managed mobility services as well as gain additional market share for our proprietary platform, Intelligent Technology Management System. Along with the impending FedRAMP authorized status, we are cautiously optimistic that White Point will be positioned to capitalize once the SUP6 has been awarded. As I've stated previously, we are optimistic regarding our pipeline and there are many opportunities that we are aggressively working. That being said, we are proactively hiring additional strategic resources in anticipation of these contract awards as well as pursuing additional sales opportunities. We have established our program management offices, or PMO, for both the DHS 3.0 recompete effort and the Spiral 4 contract. We will also be utilizing the same PMO model for SOUP 6. Lastly, for Q3 and onward, we plan to continue advancing our efforts to enhance YPoint's overall capabilities. The ongoing innovation in our technological capabilities is critical for strengthening and maintaining our competitive position. By improving our technological capabilities, we aim to offer more solutions and better meet the needs of our clients. This strategic focus on technology will significantly enhance our ability to secure new contracts and expand our marketing presence in the future. We are confident that these efforts will play a vital role in driving our long-term growth and success, and we look forward to announcing relevant developments as they arise. With that, I will now turn the call over to Bob to discuss our second quarter financial results. Bob?