Widepoint Corporation · AMEX:WYY
Widepoint — Investor Presentation (November 2017)
21 slides from Widepoint's investor presentation, Nov 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 November 2, 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 2014 2015 2016 2017 2018 2019 2020 Global Device Usage (in billions) Smartphones Tablets Notebooks Desktops Digital Transformation NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 3 Source Statista 2017 Gartner says 6.4B connected “things” or IOT will be in use globally in 2016.
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 Workforce Challenge
Slide 5: Unique Mobile Workforce Solutions
26 years of telecom lifecycle and identity management expertise • Serving a large, fragmented global market (1) – Telecom lifecycle management $6.6B by 2024 – Mobile and identity management $26B by 2022 • Addressing mobile device and cloud - based systems proliferation • Leading provider of propriet
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 Mobile and Identity Management 2 Telecom 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 • TLM – Telecom Lifecycle Management • IDM – Identity Management • BP&A – Bill Presentment and Analytics • SME – Subject Matter Expertise TM2 framework launc
Slide 8: Diverse Domestic Customers
Serving the Fortune 100 across a multitude of industries as well as the federal government and its contractors Diverse Domestic Customers NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 8 Telecom Life Cycle Management Mobile and Identity Management Education Government Transportation Bill Presentment & A
Slide 9: Diverse Global Customers
PROPRIETARY & CONFIDENTIAL 9 Diverse Global Customers Telecom Life Cycle Management Mobile and Identity Management Bill Presentment & Analytics Others we are not at liberty to disclose
Slide 10: Growth Drivers for TM2
NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 10 Growth Drivers for TM2 • Growth of mobile workforces, globally • IT departments supporting multiple platforms and devices • Surging use of mobile apps and cloud services • Identification management to secure critical IT infrastructure • Mobile asset mana
Slide 11: Telecom Life Cycle Management
Offering comprehensive solutions from a hosted delivery environment to provide full visibility of telecom assets Telecom Life Cycle Management NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 11 Market Size (1) $6.6B by 2024 16% CAGR Expanded services profile Financial profile • ~70% of business • Gross m
Slide 12: Mobile and Identity Management
Offering trusted digital identities for internet - based enterprise applications to protect users, devices and corporate resources Mobile and Identity Management NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 12 Market Size (1) ~$26B by 2022 ~15% CAGR Growth driven by surging use of mobile apps and clou
Slide 13: Track Record of Revenue Growth
Track Record of Revenue Growth NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 13 $ in millions $50.8 $46.8 $53.3 $70.8 $78.4 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Slide 14: Quarterly Revenue Mix
Quarterly Revenue Mix NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 14 $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 $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 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017
Slide 15: Growth Strategy
Driving higher margin revenue growth to create economies of scale, profitability & sustainability Growth Strategy NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 15 Organic Acquisitions • Increase wallet share with TM2, integrated solution set • Realign sales activities with a focus on selling and growin
Slide 16: Reigniting growth engines through TM2
Reigniting growth engines through TM2 Restructure Sales Model NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 16 Realign Channel Partners Changing and adding partners with specific industry expertise Repackage Products Leverage and replicate public sector success in commercial markets Increase Customer W
Slide 17: 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 17 Streamline Infrastructure & Reduce Expenses Reinvesting for Growth • Consolidate physical and logical IT infrastructure x Eliminate
Slide 18: Recent Asset Purchase
Recent Asset Purchase NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 18 • ASSET ACQUISITION: WidePoint acquired the assets of Probaris Technologies Probaris ID® Software Suite for ~ $400,000 , upfront cash payment of ~ $300,000, a contingent performance - based payment of ~ $100,000 , & certain other re
Slide 19: 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 20: Mobile Workforce Solutions Leader
Restructuring Strategy to Improve Revenue and Profitability • Addressing large and growing global need to manage mobile devices and cloud - based systems • Launched a unified solutions platform to reduce complexity and cost • Executing a plan to increase higher margin revenue and improve profitabili
Slide 21: Contacts
NYSE MKT: WYY © 2017 WIDEPOINT CORPORATION 21 Contacts Investor Relations Brett Maas , Managing Partner Hayden IR Tel 646.536.7331 | www.haydenir.com