Widepoint Corporation · AMEX:WYY
Widepoint — Investor Presentation (December 2017)
16 slides from Widepoint's investor presentation, Dec 6, 2017
Slide 1: Serving the Mobile Needs of a Global Workforce
© 2017 WIDEPOINT CORPORATION. ALL RIGHTS RESERVED. NYSE MKT: WYY Serving the Mobile Needs of a Global Workforce Jin Kang, President & CEO December 6, 2017
Slide 2: Safe Harbor Statement
This presentation may contain forward - looking information within the meaning of Section 21 E of the Securities Exchange Act of 1934 , as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the compa
Slide 3: Digital Transformation
0 0.5 1 1.5 2 2.5 3 3.5 2016 2017 2018 2019 2020 Global Device Usage (in billions) Smartphones Tablets Notebooks Desktops 2.6B 3.1B 3.0B 2.8B 3.3B Digital Transformation NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 3 Source Statista 2017 Gartner says 6.4B connected “things” or IOT was in use globally
Slide 4: Mobile Workforce Challenge
NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 4 Proliferation of devices and cloud - based systems is driving demand for secure mobile management and identity solutions. Digital transformation is accelerating Mobile devices are becoming the center of our IT universe Mobile Workforce Challenge
Slide 5: Unique Mobile Workforce Solutions
26 years of telecom lifecycle and identity management expertise • Leading provider of proprietary mobility and identity management solutions and expertise, or Trusted Mobility Management (TM2 ) • Our services support a mobile device management and IOT proliferation • Serve customer - centric and pro
Slide 6: Serving Global Markets
Supporting Diverse U.S. Federal & Commercial Organizations (“3” revenue lines, focused on expanding & broadening our solution sets) Serving Global Markets NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 6 Telecom Life Cycle Management 1 Identity Management 2 Bill Presentment & Analytics 3
Slide 7: Solutions Suite Supported by Service
TM2 customer solutions supported across platforms through professional services and subject matter expertise TM2 – Trusted Mobility Management • Framework launched September 2017 • Improves confidentiality and secures access • Reduces complexity and cost • TLM – Telecom Lifecycle Management • IDM –
Slide 8: Diverse Global Customer Base
Diverse Global Customer Base NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 8 Education Government Transportation Healthcare State & Local International
Slide 9: Growth Drivers for TM2
NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 9 Growth Drivers for TM2 • Need to provide secure mobile access • Manage risings costs associated with connected devices • Increased complexity to support diverse platforms and devices • Added security risks from IoT, mobile apps, and cloud services Enterpr
Slide 10: Track Record of Revenue Growth
Track Record of Revenue Growth NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 10 $ in millions $46.8 $53.3 $70.8 $78.4 FY 2013 FY 2014 FY 2015 FY 2016 90% of revenue is recurring Near term growth impacted by timing delays Profitability has been lagging behind top line growth
Slide 11: Quarterly Revenue Mix
Quarterly Revenue Mix NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 11 $4.3 $4.4 $7.4 $8.7 $9.6 $9.1 $10.1 $12.0 $10.2 $13.5 $8.6 $10.0 $10.9 $11.2 $8.1 $10.1 $9.4 $9.0 $7.8 $7.9 $8.6 $8.5 $7.4 $8.6 $9.7 $8.6 $8.0 $7.2 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2
Slide 12: Growth Strategy
Driving higher margin revenue growth to create economies of scale, profitability & sustainability Growth Strategy NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 12 Organic Acquisitions • Increase wallet share with TM2, integrated solution set • Realign sales activities with a focus on selling and growin
Slide 13: Profitability Improvement Plan
Targeting annual operating expense reductions of $2.5M to $3M heading into fiscal year 2018 Profitability Improvement Plan NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 13 Streamline Infrastructure & Reduce Expenses Reinvesting for Growth • Consolidate physical and logical IT infrastructure x Eliminate
Slide 14: Optimal Financial Model
Driving towards financial success with critical mass and growth $ in millions` 2016 Optimal Target Ranges Key Drivers to Reach Targets Revenue $78.4 + 10 to 20% At or above industry growth rate Gross margin 17.9% 25% - 35% High margin sales, automation Sales & marketing $2.7 as a % of revenue 3.4% 5
Slide 15: Poised for Future Growth and Profitability
• New leadership team executing strategy to improve revenue and profitability • Launched TM2 solutions framework that addresses the growing needs of a global workforce while reducing complexity and cost. • Realigning sales team to drive top line growth • Realigning operations to reduce expenses by $
Slide 16: Contacts
NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 16 Contacts Investor Relations Brett Maas , Managing Partner Hayden IR Tel 646.536.7331 | www.haydenir.com