Post on 20-May-2020
© 2018 WIDEPOINT CORPORATION. ALL RIGHTS RESERVED.
Serving the Mobile Needs of a Connected World
Jin Kang, President & CEOOctober 2018
NYSE American: WYY
This press release may contain forward-looking information within the meaning of Section21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including allstatements that are not statements of historical fact regarding the intent, belief or currentexpectations of the company, its directors or its officers with respect to, among otherthings: (i) the Company's financing plans; (ii) trends affecting the Company's financialcondition or results of operations; (iii) the company's growth strategy and operatingstrategy; (iv) the Company's ability to achieve profitability and positive cash flows; (v) theCompany's ability to raise additional capital on favorable terms or at all; (vii) theCompany's ability to gain market acceptance for its products and (viii) the risk factorsdisclosed in the Company's periodic reports filed with the SEC. The words "may," "would,""will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions andvariations thereof are intended to identify forward-looking statements. Investors arecautioned that any such forward-looking statements are not guarantees of futureperformance and involve risks and uncertainties, many of which are beyond the company'sability to control, and that actual results may differ materially from those projected in theforward-looking statements as a result of various factors including the risk factorsdisclosed in the Company's Annual Report on Form 10-K for the year ended December 31,2017 filed with the SEC on March 21, 2018.
Safe Harbor Statement
© 2018 WIDEPOINT CORPORATION 2
Managing and Securing the Mobile and IoT Environments
• Established in 1997. Based in McLean, Virginia, with offices in Ohio, and Dublin, Ireland.
• WidePoint delivers Trusted Mobility Management solutions (TM2) to provide manageability, security and visibility for our clients’ mobile assets and services.
• TM2 is a combination of WidePoint’s three main solution sets:– Telecom Lifecycle Management (TLM)– Cybersecurity focused on Identity Management (IdM)– Telecom Bill Presentment and Analytics (BP&A)
• WidePoint has a diverse portfolio of commercial clients with global and international footprints.
• WidePoint is the leading provider of TM2 solutions to the U.S. public sector.
• New management team since July 2017
• Officially a turnaround story
Company Background
© 2018 WIDEPOINT CORPORATION 3
Exited 2017 with new management team, new strategy
• New Management Team– Jin Kang, CEO appointed July 2017– Kito Mussa, CFO appointed October 2017– Jason Holloway, CSMO appointed 2016
• Two new independent Board members July 2017
• CEO’s Strategy:– Stabilize the Company - Completed– Return to growth and profitability – In Progress– Drive market awareness of TM2 capabilities (mobile focused, higher margin)
• Balance sheet getting stronger– Zero debt– Renewed LOC of $5 million to fund operations, if needed– Four consecutive quarters of adjusted EBITDA positive (Q3 ‘17 – Q2 ‘18)
• Continuing the trend of top and bottom line improvements
2017 – Year of Transition
© 2018 WIDEPOINT CORPORATION 4
© 2018 WIDEPOINT CORPORATION 5
Industry-Leading Product Lines
Telecom Lifecycle Management
(TLM)
Identity Management
(IdM)
Telecom Bill Presentment & Analytics (BPA)
Manageability, Security & Visibility
• Strong Authentication• Certificate Authority• Certificate on Device (CoD)• Public and Private Key• Physical and Logical Access• Credentialing• Enrollment and Issuance• Infrastructure Support
• Offered via Mobile Carriers
• Carrier Based Service• Consolidated Reporting• Data Analytics• Business Intelligence
• Program Management• Device & Service Acquisition• Inventory Management• Auditing & Optimization• 24x7x365 Help Desk• Dispute Resolution• MDM & MAM support• Recycling & EOL Support
Delivered through a single web enabled frameworkHighly differentiated solution set
Government certifications
Diverse Global Client Base
© 2018 WIDEPOINT CORPORATION 6
Education Government TransportationHealthcare State & Local
International
Excellent performance across public and private sectors
© 2018 WIDEPOINT CORPORATION 7
Proliferation of devices and cloud-based systems is driving demand for secure mobile management and identity solutions.
The Market Opportunity
© 2018 WIDEPOINT CORPORATION 8
Market Drivers for WidePoint
• Growth of mobile and IoT devices driving need for enterprise management solutions
• Critical requirement to establish secure and verified connections with enterprise networks to identify users and devices
• Managing services with telecom vendors and applications across all regions• Supporting heterogeneous operating environments
Telecom
Lifecycle
Management
$6.6B
2024
Mobile & Identity
Management
$26B2022
Key markets large and growing
– Telecom lifecycle management growing to $6.6B by 2024
– Mobile and identity management growing to $26B by 2022
Source: Gartner
• Unified solutions adaptable to evolving mobile and IoT environments
• Significantly enhanced customer experience
• Improved security with reduced complexity and cost
• Scalable and customizable in the cloud
TM2 – Trusted Mobility Management
© 2018 WIDEPOINT CORPORATION 9
WidePoint focuses on Mobile: Leveraging our solutions for security, manageability, and
visibility of mobile assets and services
Telecom Lifecycle Management
Identity Management
Telecom Bill Presentment &
Analytics
Solutions Supported by Subject Matter Experts
TM2 – Competitive Landscape
© 2018 WIDEPOINT CORPORATION 10
TM2Trusted Mobility Management
Telecom Lifecycle Management
Asentinel /TangoeCaleroDMI
Turning PointSystem Integrators
Identity Management
Entrust DatacardIdenTrust
XTec
Telecom Bill Presentment & Analytics
AmdocsGlobys
WidePoint is the Only Provider of All Three Critical Elements
• We out compete our competitors by:• Providing a full set of services that our competitors cannot• Cross selling and up selling• Shaping the RFQ early and adding TM2 requirements
Growth Strategy
© 2018 WIDEPOINT CORPORATION 11
Drive higher margin revenue to create sustainable economies of scale and profitability
Organic
• TM2 Strategy
• Upselling and cross-selling
• Increase customer wallet share
• Target higher margin revenue opportunities
• Realign channel market partners
• Partner with large SI
• Recruit SMEs with specific industry and customer knowledge
• Strategic acquisitions:• Intellectual property• New customers• Synergies for critical mass• Vertical and horizontal
integration
Acquisitions
Momentum Toward GAAP Profitability
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$ in millions
$46.8 $53.3 $70.8 $78.4 $75.9
$37.6
($0.5) ($2.5) ($3.6) ($2.0) ($0.9) $0.2 $(20.0)
$-
$20.0
$40.0
$60.0
$80.0
$100.0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 6 Mos 2018
Series1 Series2Revenue Adjusted EBITDA
Annual Revenue and Adjusted EBITDA
Return to double digit top line revenue growth
Top and Bottom Line Improvements
© 2018 WIDEPOINT CORPORATION 13
$ in millions
$18.3 $18.6 $18.9 $18.5 $19.9 $20.1 $17.5
($1.70) ($0.70) ($0.40)
$0.03 $0.30 $0.09 $0.14
$(5.0)
$-
$5.0
$10.0
$15.0
$20.0
$25.0
4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018
Series1 Series2Revenue Adjusted EBITDA New CEO Appointed7/5/2017
Second Quarter Revenue and Adjusted EBITDA
Improving bottom line performance
Profitability Improvement
© 2018 WIDEPOINT CORPORATION 14
Streamline Infrastructure & Reduce Expenses
Reinvesting for Growth
• Reduce Expenses
Streamline operations to reduce cost of revenues
Reduce redundancy
Consolidate facilities
Reduce overhead labor
• Consolidate IT infrastructure
Eliminate duplicate overhead
Consolidate help desk and IT environments
Sales and Marketing
↑ Add new products and solutions
↑ Research & Development
↑ Customer acquisitions
↑ Channel partners & strategic relationships
Continuing Consistent Cost Profile for 2018
• WidePoint is stable and poised for growth
• WidePoint addresses a large and growing market need in mobile and IOT market.
• WidePoint has a highly differentiated solution set to address the needs for secure mobility management.
• Improving balance sheet
• WidePoint has an excellent reputation of service delivery.
• New management team is successfully executing a strategy for profitability and growth.
• Undervalued
Key Takeaways
© 2018 WIDEPOINT CORPORATION 15
© 2018 WIDEPOINT CORPORATION 16
Thank You!
Investor Relations
Matt Glover
Liolios | Investor Relations
(949) 574-3860 | matt@liolios.com
WidePoint Corporation
7926 Jones Branch Drive, Suite 520
McLean, Virginia 22102
(703) 349-5644
www.widepoint.com