WidePoint Corporation

Good afternoon. Welcome to the WidePoints fourth quarter and full year 2024 earnings conference call. My name is John, and I will be your operator for today's call. Joining us for today's presentation are WidePoints President and CEO, Jin Kang, and Chief Revenue Officer, Jason Holloway, and Chief Financial Officer, Robert George. Following their remarks, we will open the call for questions from WidePoints publishing analysts and major investors. If your questions were not taken today, and you would like additional information, please contact White Point's investor relations team at wyy at gateway-grp.com. Before we begin the call, I would 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 future performance of WidePoint Corporation that involve risk 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-K, filed with the Securities and Exchange Commission. Finally, I would 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 would like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang. Sir, please proceed.

Thank you, Operator, and good afternoon, everyone. Thank you for joining us today to review our financial and operational results for the fourth quarter and full year ended December 31, 2024. Before going into details of our 2024 results, I will briefly address the cost for the delay in our earnings call. As you have probably gathered from the SEC form 12B25 filed on March 31st, we requested and received an extension to file our 10-K. Subsequently, we have filed our 10-K timely. Bob will provide further details, but briefly, YPoint experienced significant growth in 2024, including a surge in the number of new customers, some with more complex terms. This increased activity caused the planned completion of our external audit to be delayed. We appreciate your understanding, and we prioritize quality and transparency in our reporting. As you can see from our filing, our audit opinion contains no qualifications. Now, with that out of the way, let me move on to our operational highlights for 2024. We entered 2024 with three key goals, continuing our sales and marketing investments, enhancing operational execution, and driving technical innovations. I am pleased to share that we not only achieved but surpassed our expectations for all three of our goals. Our sales and marketing investments and operational execution deliver exceptional results for both the quarter and the year. I am pleased to report another quarter of year over year improvements in our financial performance. We've closed out 2024, exceeding our revenue guidance, delivering approximately 142.6 million for the year, a 35% increase compared to 2023 full year results. and exceeding our adjusted EBITDA and free cash flow guidance, recording 2.6 million of adjusted EBITDA and 2.5 million in free cash flow. We achieved our 30th consecutive quarter of positive adjusted EBITDA and fifth consecutive quarter of being free cash flow positive. For the year, we secured 51.2 million in total contract value with 45.6 million awarded by federal agencies and 5.6 million from commercial organizations. The growth in our commercial contract awards is particularly noteworthy and encouraging, and our commercial sales pipeline remains strong, something Jason will discuss shortly. While the success of our sales and marketing investments, operational execution, and financial performance are all encouraging signs for us, our most significant achievements came from our technical developments and advancements. Last July, we officially launched our new proprietary mobile anchor solution, and more recently, in February, launched our new M365 analyzer. Jason will provide an update on these two solutions and some of the plans we have in store for 2025. Most notably, after more than three years of dedicated team effort, WidePoint achieved a long-awaited FedRAMP authorized status for Intelligent Technology Management System, or ITMS. marking a major milestones in our commitment to security and innovation. Though we announced our FedRAMP news via press release, I'd like to take a moment to highlight its true impact on WidePoint. FedRAMP is a US government-wide program that established a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. Achieving FedRAMP authorized status is a major milestone that sets WidePoint apart in the marketplace. This certification validates our ITMS solutions, meets stringent federal cybersecurity standards, and reinforces our commitment to protecting customer data with industry-leading security measures. ITMS is now listed on the FedRAMP marketplace, making it accessible to federal agencies across various business categories. This opens new doors for YPoint, further expanding our sales and marketing reach and unlocking contract opportunities that were once beyond our grasp. This FedRAMP authorized status also positions YPoint favorably for major upcoming contracts, such as the DHS CWMS 3.0 Recompete, the Decennial Census 2030, and NASA SUP6, among others. This milestone strengthens our long-term growth potential and further solidifies YPoint as a trusted partner for government and enterprise cybersecurity solutions. Jason will expand upon the DHS-CWMS 3.0 recompete and discuss the U.S. Navy Spiral 4 contract. As we near submission, we continue to make progress on SUP 6 and Alliant 3. Again, Jason will expand upon both contracts in his prepared remarks. In late January, we announced the complete integration of IT Authority into the WIPOID brand. Over the past three years since acquiring IPA, we've successfully integrated our solution sets and have been operating at full capacity. With the earn-out agreements now concluded, this integration has streamlined our organization, which has enabled us to respond quickly to customer needs and enhance our ability to capture new customers while increasing wallet share with existing ones. Although we have been upselling and cross-selling our solutions, the full integration allows WidePoint Solutions to now be seamlessly layered on top of ITA's offerings. This will enable even more effective upselling and cross-selling efforts, further strengthening our market position. Lastly, as of December 31, 2024, our contract backlog stood at approximately $290 million. This number did not include our recent Spiral 4 task order award for $25 million. Our sales pipeline continues to remain healthy across all sectors, and we are optimistic about continuing to grow our backlog throughout 2025 and beyond. With that, I will now hand the call over to Jason, who will speak further about the sales and marketing pipeline and specifically the opportunities we are seeing in the commercial sector. Jason. Jason.

Thanks, Jen, and good afternoon, everyone. Over the past year, we have successfully developed and launched our new mobile anchor digital credential solution, offering the most secure level of multi-factor authentication through smartphones. We have already secured two contracts with both federal defense and civilian agencies. We also launched the M365 analyzer solution for our Microsoft clients. delivering a unique dashboard detailing volumes and cost with clear ROIs and actionable insights, as well as a license management module to manage the challenges of optimizing Microsoft 365 identifying expense savings. Regarding the CWMS 3.0 recompete, with the previous 2.0 contract is set to conclude in November of this year. we are actively preparing for the next phase and have already responded to the request for information in August of 2024. WidePoint is in a very strong position to secure this contract thanks to several key advantages. Our authorization to operate from DHS combined with our proven track record of excellence positions us as the ideal candidate. Additionally, The seamless integration and alignment of our systems and processes with DHS infrastructure further strengthens our bid. Our certifications and accreditation, many of which our competitors cannot match, along with our newly achieved FedRAMP authorized status, gives us a significant competitive edge. Given our industry-leading technologies and our past performance, We remain confident in our ability to secure the CWMS 3.0 contract and continue our longstanding partnership with DHS. Last month, we announced our exciting new task order award under the US Navy Spiral 4 contract vehicle to provide managed mobility services to a combat support agency within the US Department of Defense. This task order carries an annual value of approximately 2.5 million with one year base period and nine additional one year option periods, totaling a potential value of 25 million if all options are exercised. As a reminder, WidePoint is competing against six other companies within the Spiral 4 contract vehicle, including the big three U.S. wireless carriers. Winning this task order shows our ability to compete with industry giants and highlights the unique and differentiated solutions we bring to the table. We are honored to support the U.S. military mission and take great pride in being a trusted partner of the DoD. This award is an encouraging sign of momentum within Spiral 4. and with many past task orders set to expire under Spiral 3 contract in the coming months, we hope to see increased activity and additional opportunities developed through this contract vehicle. We continue to make progress in early stages of the SUP 6 contract as we near the submission of our proposal. Additionally, YPoint is preparing to compete for the Alliant 3 contract. a government-wide acquisition contract managed by GSA, which provides federal agencies with access to a broad range of IT services and solutions. The Alliant 3 has no contract ceiling, though for context, its predecessor, Alliant 2, had a $75 billion contract ceiling. We are actively working on our response to the request for proposal and look forward to sharing material updates as progress unfolds. Jen will outline our goals for 2025 at the end of today's call, but I'd like to highlight one in particular, leveraging strategic partnerships. This goal is closely aligned with our sales and marketing initiatives, as forming partnerships enables us to leverage shared client networks. expand our customer base, and ultimately grow revenue. Early stage examples of this includes the direct-to-consumer program with a mobile virtual network operator for mobile anchor. Additionally, the success of our devices and service program we mentioned during our last earnings call will also depend on building these types of strategic alliances. We are also working with a strategic partner to deliver our identity and access management certificates as part of a smart city initiative. Encouragingly, the primary opportunities in this area are with commercial clients, which supports our broader goal of diversifying beyond government customers. Devices of Service continues to gain very strong momentum with our longstanding and exceptional partner. I hope to have some exciting news by the next call regarding the potential closure of some deals. The robustness of our sales pipeline is a direct result of our innovative development over our wide point proprietary solutions, our sales team, and our strategic partnership. And we look forward to announcing further innovations and new contract wins in the near future. With that, I will now turn the call over to Bob to discuss our financial results. Bob?