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?

Thanks, Jason, and thanks to everybody for joining us today. I'm pleased to share the details of our financial results for the fourth quarter and the full year ended December 31st, 2024. As Jen mentioned at the outset of this call, the delay in our 10-K filing was primarily a result of growth in our business and the complexity of new contracts that began in 2024. As a result, the annual audit field work took longer than planned and we appreciate everyone's understanding as we prioritize quality and transparency in our reporting. We did, in fact, file our Form 10-K timely under the permitted extension. And just as important, the associated audit report had a clean opinion. Further, no previously issued financial statements were impacted. Now, moving into the financial performance details. Total revenues for the quarter were $37.7 million, an increase of $9.4 million from the $28.3 million reported for the same period last year. Our full-year revenues were $142.6 million, an increase of $36.6 million, or 35% from the $106 million in the same period last year. Now we'll provide a further breakdown of our fourth quarter and full-year revenue. Our carrier services revenues for the quarter was $24.6 million, an increase of $8.9 million compared to the same period in 2023. Carrier services revenue for the year was $86.8 million, an increase of $28.6 million compared to the same period last year. The increase is due to increased contracting activity with our federal customers where we pay carrier invoices on behalf of those customers. Our managed services fees for the quarter were $9.4 million and relatively consistent with the same period in 2023. For the year, our managed services fees were $35.8 million, an increase of $4.5 million from last year. The increase was primarily a result of implementing a new commercial contract for a U.S. government end customer in the third quarter and the full year execution on our FEMA contract. Billable services fees for the quarter were $1 million, an increase of $700,000 compared to the same period in 2023. For the year, billable services fees were $5.1 million, a slight increase of approximately 147,000 from the same period last year. Reselling and other services in the fourth quarter were 2.7 million and relatively consistent with the same period last year. For the year, reselling and other services were 14.9 million, an increase of 3.4 million from the same period last year. The increase is primarily related to increased selling of third-party software for recording and storing text messages. which is now required under an expansion of the Federal Records Act. Reselling and other services are transactional in nature, and the amount and timing of revenue may vary significantly from period to period. Gross profit for the fourth quarter was 4.8 million, or 13% of revenues, compared to 4 million, or 14% of revenues, in the same period in 2023. Gross profit for the year was 19 million, or 13% of revenues, compared to 15.6 million, or 15% of revenues in 2023. The lower gross margin as a percentage of revenues is related to increased carrier services in 2024 compared to 2023. The more significant metric of gross profit percentage excluding carrier services was 36% in the fourth quarter compared to 32% in the same period last year. For the year, gross profit percentage excluding carrier services was 34% compared to 33% in the same period last year. Our gross profit percentage will vary from period to period based on our revenue mix. Sales and marketing expenses in the fourth quarter was $560,000, or 1% of revenues, and it remained relatively constant with the same period last year. Sales and marketing expenses for the year were $2.3 million, or 2% of revenues, compared to $2.2 million and 2% of revenues in the same period last year. We expect to see further dollar increases here as we continue to invest in sales and marketing efforts, though we expect sales and marketing to be lower as a percentage of revenues in the future. General administrative expenses in the fourth quarter were $4.3 million or 11% of revenues compared to $4.2 million or 15% of revenues in the same period of 2023. General administrative expenses in the year were $17.6 million or 12% of revenues compared to $15.9 million, or 15% of revenue, in 2023. The dollar increase primarily relates to employee compensation and increased health insurance costs compared to the same period last year. We expect general administrative expenses to increase as our business grows, but to remain constant or lower as a percentage of revenues. Adjusted EBITDA, a non-GAAP measure for the fourth quarter, was $631,000 compared to $423,000 for the same period last year. Adjusted EBITDA for the year was $2.6 million compared to $791,000 in the same period last year, reflecting a robust 229% increase over the prior year. Pre-cash flow for the quarter, which we define as adjusted EBITDA minus capital investments, was $593,000, compared to $300,000 in the same period last year. This marks a full year of positive free cash flow, which is a trend we expect to continue into 2025 and beyond. Free cash flow for the year was $2.5 million, compared to negative free cash flow of approximately $300,000 in the same period last year, representing a 933% increase. Again, these significant improvements over periods were a result of increased adjusted EBITDA and lower capital expenditures. We're continuing to see significant reductions in our net loss period over period. Net loss for the fourth quarter improved to $356,000, or a loss of $0.04 per share, compared to a net loss of $1.3 million, or a loss of $0.15 per share for the same period last year. Net loss for the year improved by $2.1 million, to a net loss of $1.9 million, or a loss of $0.21 per share, compared to a net loss of $4 million, or a loss of 46 cents per share in the same period last year. Moving the balance sheet, we ended the year with $6.8 million in cash, steadily improving from last quarter and staying consistent with our cash balance from the end of 2023. We are continuing to work with a major customer that has presented administrative challenges in approving our invoices to allow us to build time layer and increase our cash generated from operations. We also have additional liquidity options available with our evolving line of credit facility, which was renewed in February. The terms of this new agreement are unchanged from the previous agreement. The evolving line of credit provides us with $4 million of potential borrowing capacity, although we do not anticipate having to rely on this facility. This completes my financial summary. For a more detailed analysis of our financial results, please refer to our 10-K, which was filed prior to this call. With that, I'll call back over to Jim.

Thank you, Bob and Jason. Given the recent nationwide news and developments, I'd like to address the current situation with the federal government pertaining to their ongoing budget cuts. At this time, the agencies we support are largely insulated from these cuts, and we anticipate they will continue to spend at the rate they have done so previously. We remain cautiously optimistic that these government-wide cuts in the near term will not impact YPoint's business with government agencies, nor our ability to execute our contract pipeline and secure new government work. A clear example is our recent task order award under Spiral 4 contract totaling $25 million over a 10-year contract period. Despite the potential budget cuts, the department we support are expected to continue spending at their usual rate. For additional color, our services are must-haves for the government, not nice-to-haves. Wypoint distinguished ourselves through a deep-rooted commitment to cost-saving strategies, seamlessly integrated into our company's culture. Our focus on reducing expenses aligns well with the current presidential administration push to curb federal spending by tackling waste, fraud, and abuse, a philosophy we championed long before it gained widespread recognition. Through our services, we've delivered significant cost savings for our government clients, and our mission is closely aligned with the current administration's focus on government efficiency. Even with projected cuts, essential government work will need to be done. The contractors will inevitably take on a portion of this work. I am cautiously optimistic that these budget cuts will not pose headwinds for our business, and we remain committed to executing our services to the same level of efficiency and performance we always have. Before we move on to the Q&A section, I'd like to outline our primary goals for 2025. First, we aim to expand our strategic relationship with our existing partners as well as new partners to leverage shared client networks, expand our customer portfolios, and grow our contract backlog even further. As Jason stated, we've already begun developing new partnerships with the device-as-a-service programs. opportunities for the new presidential administration, and our direct-to-consumer program with a mobile virtual network operator partner for Mobile Anchor. The demand for Mobile Anchor remains strong, and while we are still in the early stages of many opportunities, we're excited to fully commercialize this solution in 2025. While pursuing new strategic partnerships is essential for growth, expanding and deepening our collaboration with existing partners is equally important. These relationships are already built on a foundation of trust and proven performance, and we see clear synergies that we can further leverage to unlock additional value, drive innovation, and accelerate mutual success. Second is to prepare for the DHS CWMS 3.0 recompete. Although we are the incumbent contractors are in the best position to re-win this opportunity, we are not resting on our laurels. It will be a full-court press on our part to ensure that we re-win this opportunity. We have already formed a proposal team to address all of the requirements that we anticipate will be part of the RFP process. To reiterate, we are confident that our solution sets, proven track record with DHS, our FedRAMP authorized status, and innovative offerings will position us for success in this re-compete process. Third, commercializations of our newly developed solutions, particularly Mobile Anchor and M365 Analyzer, will be another point of focus for us this year. As Jason highlighted, forming strategic partnerships will be key in securing a significant share of the mobile digital credential market, as well as unlocking substantial cost saving opportunities for our clients in the Microsoft 365 environment, both in the public and private sectors. Finally, as previously stated, our goal remains to deliver positive earnings per share for the full year 2025. The progress we made driven by technological innovations, strategic sales and marketing investments, strong performance across all of our business lines, and judicious cost management have positioned us well to maintain our growth trajectory and reach this goal. That concludes our prepared remarks, and we will now take questions from our analysts and major shareholders. Operator, will you please open the call for questions?

Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. confirmation tone will indicate your line is in the question queue. You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Once again, please press star one if you have a question or a comment. Our first question comes from Scott Buck with HC Wainwright. Please proceed.

Hi, good afternoon, guys. Thanks for taking my questions. I believe last call you indicated that you had one or two federal agencies in pilot mode with Mobile Anchor. I'm curious if we could get an update there and maybe with some of the feedback that you guys have gotten to date.

Yeah, so we are in the, you know, we completed our pilot with, I can't name the name, but, you know, I will tell you that the It is one that's been in the news lately, has to do with some transportation industry. But, you know, that is going well, and we're looking to increase the number of credentials that are going to be issued onto these mobile devices. And so we are continuing the progress of that. We also have another agency that we are looking to that's related to the K-12 program, And, you know, the K-12 was a vocal, you know, supporter of this technology. And hopefully we'll be able to roll that out as part of our partnership with 22 Vets.

Great. That's helpful. And it sounds like from your comments that, you know, you don't see any kind of long-term detriment given some of the activity in Washington. But I'm curious, just a Turnover in administration, whether you're seeing any disruption or delays in, you know, your conversations with folks there. Just wondering how it impacts the first half of 25, I guess.

Yeah, so far we haven't seen any negative impacts from, you know, all of the efficiency efforts that are happening. And we are on this long-term contract with the federal government. That doesn't mean that, you know, the federal government cannot terminate, you know, any contract for convenience. And they've done so with various agencies. And so we're very, you know, careful. We're, you know, keeping our, you know, eyes and ears, eyes open and ears open, just to make sure we can get this information ahead of time. But so far, you know, we've been insulated, as I said in our prepared remarks, And the agencies that we work for, you know, Department of Homeland Security specifically, will probably get additional mission as, you know, they've been in the news for a while about, you know, closing down the border. And, you know, one of the, you know, the primary customers that we support is the part of DHS, Customs and Border Protection. And so we've been, you know, talking with our counterparts at DHS, looking at potential increases in you know, the amount of services that they purchase from us. So we're optimistic. The other customers like Department of Defense and Department of Justice, these are all sort of protected, if you will. But there are things that are changing, you know, in Washington. There's talks about all of the contracts department, you know, falling under GSA and, you know, a lot of the contracting departments within the various departments you know, other agencies being consolidated in under GSA. So a lot of the contracting acquisition and, you know, competition will be conducted by GSA. And so we're not quite sure exactly what that means, but we're following it very carefully. There is also talks of streamlining the federal acquisition regulations, streamlining the FAR to remove what they call non-statutory clauses. and placing them into a best practice volume. And what that means so far is that that should open up the competition to more contractors and potentially shorten the acquisition cycle and streamline it. But still very hard to gauge, but we are keeping a close eye on all of the developments that are happening to make sure that we're not caught flat-footed when things change.

Great. That's really helpful, Carl. And then if I can sneak one more in. Looks like balance sheet cash has finished the year a bit higher than what we've seen in the past couple quarters. First, what is the CapEx outlook for 25? And then how do you think about, you know, kind of cash deployment through the year? I mean, are we talking about repurchase, M&A, or we just continue to kind of fortify the balance sheet?

Yeah, so I'll start off the answer, and then, you know, I'll have Bob weigh in here. You know, our cash balance, you know, is, you know, a little bit better than what it was at the end of the year last year. And admittedly, you know, I think it was about the same, you know, as last year. And admittedly, it should be better based upon our free cash flow metric. And the reason for it not being, you know, somewhere between, you know, nine or 10 million, it has to do with, you know, we had some unbilled issues and that we're working through and and I believe that that was, you know, addressed in, you know, Bob's prepared remarks. And we are making good progress on that, so we should see, you know, cash position improvement, and we'll continue to, quote, unquote, fortify our balance sheet, and we're going to continue to do that. In terms of our CapEx, you know, we don't have any material items that are sitting out there other than, you know, the usual, you know, O&M type of stuff that, we may have to, you know, put some, you know, investment in. So with that, let me just turn it over to Bob, you know, with some additional details. Bob?

Sure. Hi, Scott. Yeah, I think from a CapEx, you know, we did a pretty good job last year of really tightening the belt. We'll see a little bit more this year, but no, I mean, you know, maybe 200 grand, something like that. So it's, you know, nothing like in the past. And a lot of that's going to be – some build-out of the new facility that we took in Columbus for the device and the service. So it's deployed on revenue-making items. So that's modeling $200,000.

Okay, perfect. Thanks, guys. That's it for me, and congrats on the results.

Great. Thank you, Scott.

Our next question comes from Barry Sine with Litchfield Hills. Please proceed.

Hey, good afternoon, gentlemen. Welcome back to the States. Thank you very much. Wanted to talk about, um, Doge. Um, and I noticed that you do have a new risk factor in your 10 K. Um, but I didn't want to talk about those from a risk perspective. I wanted to talk about it from an opportunity perspective. Um, as you mentioned in the script, you were born for Doge, right? Your services are perfectly aligned with what they do, especially as they're doing headcount reductions. I can only imagine what's happening with the devices of some of those folks. So a couple of questions on Doge. First, your key agency is Department of Homeland Security, I believe. And do you have Border Patrol within that And then within, you know, some of the other opportunities, Doge, have you gotten their attention? Do they know you exist? Have you been able to make a broader presentation on how you can assist some of these efforts with, you know, not just handset management, but perhaps billing analytics?

Yeah, and so great question. Thank you for that. And, you know, as I, you know, mentioned in our, you know, prepared remarks, I mean, You know, White Point has a deep, rooted commitment to cost savings, especially saving taxpayers money because it's yours and my money. Right. From the beginning, you know, one of our primary focus have been to reduce technology spend. So, you know, we were Doge before Doge became, you know, a household word. So, you know, we are optimistic and we're trying through various avenues to get the attention of Doge. so that we can assist in identifying savings while, you know, at the same time preserving government staff. I mean, we can do all of these savings without having to, you know, cut staff and we can help them do their jobs better. And specifically with the, you know, the Customs and Border Protection, they'll probably get additional mission. And additional mission would be not only the addition of, you know, border guards, but also applying technology and wireless technology, cellular wireless technology, which is the scope of the CWMS contract, which is the cellular wireless managed services. And so, you know, things like drones and securing the drones and putting cameras with, you know, Internet of Things and putting digital certificates on these devices, that will increase the number of endpoints that we would manage and that would, you know, help the CBP to help manage all of their devices. And another one that we've been trying to get some traction on is there have been many mobile devices and wireless devices that have been handed out to undocumented migrants that are coming across the border for making sure that the courts can locate them to have them come to their court proceedings. And we don't know at least I don't know, how many of these devices have been handed out, what devices are being used, what devices have zero usage on them. We could do all of those things and find all of the, you know, provide all the data analytics associated with that. And so we've been trying to get access to Tom Homan and the folks over at DHS at the secretary level. You know, I think we've gotten some little bit of traction, but it's too early to tell. But we are, you know, knocking on the doors of the various political operatives so that they could get us in the door to talk about the potential savings that we could provide.

Okay, that's very helpful. And one more, if I could shift gears and talk about the – guidance that you're giving for 2025. You're not giving, you know, traditional numbers or even ranges. There's a couple of things you've said. You do expect to be positive on EPS for the full year. And then you also said that you expect to maintain your growth trajectory. Would that mean having the same growth rate as last year? Or I don't know what the trajectory means.

Excellent question. Always, you know, getting to the heart of the matter, as they say. So in terms of, you know, we are one of the main goals that we have for 2025 is to be earnings per share positive. And as we actually had a forecast put together toward the end of last year, and there's a lot of, you know, changes since then. And so we will put out a, you know, guidance for 2025. Once we get all, you know, we'll have to dust off the forecast, you know, roll in all of the things that happens between, you know, November and December and January and February. And we're, you know, closing the books on Q1. And so we will have, you know, a guidance for, you know, top line and EBITDA and free cash flow. And when we say continue our trajectory, you know, we've always quoted, we've always been quoted as saying, you know, double-digit percentage growth of our top line. And we should have similar growth in, you know, EBITDA and cash flow. But it's a tyrannies of small numbers, you know, for EBITDA and free cash flow. You know, this year, year over year, free cash flow was up, you know, 933%. And we were up 200 some percent for EBITDA. And so can we maintain that kind of increase? It's possible, certainly, because our, again, the numbers are small. But, you know, we'll have a better, you know, guidance ranges as we, you know, flesh out all of our things, all the things that happened Q4 and Q1. And we'll have to make sure that we analyze our forecast. Bob, did you want to add anything to that?

No, I think you covered it all. Hey, Barry, I think we typically give guidance after the Q1 or as a part of the Q1 call. And so we would expect to give something similar to what we did last year. And as Jen said, we've got a lot of moving parts, but they tend to be moving in the right direction. Not all of them, but most of them. So doing good.

And so just to clarify on that, there's a lot of companies during this earnings season who said because of the macro environment and the uncertainty that they're just not going to give them guidance this year. You sound to be, and obviously you normally give your guidance with the 1Q call, you sound to be, you don't sound to be as uncertained as a lot of other companies out there, and as Bob just said, all the else being equal, likely we'll get some guidance with the one and all.

Yeah, and I think – go ahead, Bob.

As you say, I saw what United did this morning, but I feel like we're not subject to the consumer, and everything we see demand signal from DHS is that – and we have a pretty good line of sight to – the contract activity with our backlog and such. So, yeah, we'll be able to give some, you know, pretty confident guidance at Q1.

Yeah, yeah. So, I mean, we ended, you know, 2024 with roughly, you know, $290 million in, you know, contract backlog. So we'll be, you know, working down that contract backlog. So we have, as Bob said, we have a pretty good line of sight on, you know, our revenue coming in for 2025. And we had some additional, you know, with the Spiral 4, which is a, you know, a big deal for us. It's $2.5 million, you know, annually. And we're, you know, very, you know, we're optimistic that we're going to get additional work out of the Spiral 4 contract. And, you know, we're going to continue to add incremental revenues to our, you know, top line. And, you know, we have a good base with our, you know, contract backlog. And so, you know, not everything is doom and gloom. I'm hoping that we could get in with Doge and, you know, capture some additional work there. And with our, you know, our M365 analyzer and our mobile anchor, these are new products that looks to, you know, have, you know, there's a lot of need in the market for our product and solutions. So we feel pretty good. And I think, you know, those will be more of a tailwind than a headwind for us.

Thank you. Great. Thank you, Barry.

At this time, this concludes our question and answer session. If your question was not taken, please contact WidePoint's IR team at wyy at gateway-grp.com. I'd now like to turn the call back over to Mr. Jin Kang for his closing remarks.

Thank you, Operator. We appreciate everyone taking the time to join us today. As the Operator mentioned, if there were any questions we did not address today, please contact our IR team. You can find their full contact information at the bottom of today's earnings release.

Thank you again, and have a great evening.

Thank you for joining us today for WidePoint's fourth quarter and full year 2024 conference call. You may now disconnect.