WidePoint Corp. Q3 Revenue Declines Year-Over-Year

TL;DR

WidePoint's Q3 revenue dropped to $8.89M from $9.49M last year. Nine-month revenue down to $20.46M from $30M.

AI Summary

WidePoint Corp. filed its 10-Q for the period ending September 30, 2024. The company reported revenue of $8.89 million for the third quarter of 2024, a decrease from $9.49 million in the same quarter of 2023. For the nine months ended September 30, 2024, revenue was $20.46 million, down from $30.00 million in the prior year period.

Why It Matters

The decline in revenue suggests potential challenges in WidePoint's business operations or market position, which could impact its financial stability and future growth prospects.

Risk Assessment

Risk Level: medium — The reported decline in revenue for both the quarter and year-to-date period indicates potential business headwinds that warrant attention.

Key Numbers

• $8.89M — Q3 2024 Revenue (Represents the company's top-line performance for the third quarter.)
• $9.49M — Q3 2023 Revenue (Provides a year-over-year comparison for the third quarter.)
• $20.46M — Nine Months 2024 Revenue (Shows the cumulative revenue performance for the first nine months of the fiscal year.)
• $30.00M — Nine Months 2023 Revenue (Provides a year-over-year comparison for the nine-month period.)

Key Players & Entities

• WIDEPOINT CORP (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241113 (date) — Filing date of the report
• $8.89 million (dollar_amount) — Q3 2024 revenue
• $9.49 million (dollar_amount) — Q3 2023 revenue
• $20.46 million (dollar_amount) — Nine months ended Q3 2024 revenue
• $30.00 million (dollar_amount) — Nine months ended Q3 2023 revenue

FAQ

Key Financial Figures

• $0.001 — nge on Which Registered Common Stock, $0.001 par value per share WYY NYSE Americ

Filing Documents

• wyy_10q.htm (10-Q) — 1022KB
• wyy_ex311.htm (EX-31.1) — 9KB
• wyy_ex312.htm (EX-31.2) — 9KB
• wyy_ex32.htm (EX-32) — 4KB
• 0001654954-24-014263.txt ( ) — 4414KB
• wyy-20240930.xsd (EX-101.SCH) — 41KB
• wyy-20240930_lab.xml (EX-101.LAB) — 222KB
• wyy-20240930_cal.xml (EX-101.CAL) — 52KB
• wyy-20240930_pre.xml (EX-101.PRE) — 197KB
• wyy-20240930_def.xml (EX-101.DEF) — 97KB
• wyy_10q_htm.xml (XML) — 687KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1.Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Statements of Operations for the three and nine month periods ended September 30, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Loss for the three and nine month periods ended September 30, 2024 and 2023 4 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2024 and 2023 6 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine month periods ended September 30, 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

OTHER INFORMATION

Part II. OTHER INFORMATION 31

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Default Upon Senior Securities

Item 3. Default Upon Senior Securities 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 32

SIGNATURES

SIGNATURES 33 CERTIFICATIONS 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. WIDEPOINT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2024 2023 2024 2023 (Unaudited) REVENUES $ 34,620,433 $ 25,733,657 $ 104,868,483 $ 77,770,195 COST OF REVENUES (including amortization and depreciation of $ 562,389 , $ 528,298 , $ 1,793,416 , and $ 1,538,883 , respectively) 29,928,067 21,838,836 90,617,004 66,155,797 GROSS PROFIT 4,692,366 3,894,821 14,251,479 11,614,398 OPERATING EXPENSES Sales and marketing 530,391 490,037 1,702,210 1,553,887 General and administrative expenses (including share-based compensation of $ 202,584 , $ 299,847 , $ 986,325 and $ 535,417 , respectively) 4,352,980 3,977,709 13,344,232 11,719,042 Depreciation and amortization 259,980 259,804 768,626 789,331 Total operating expenses 5,143,351 4,727,550 15,815,068 14,062,260 LOSS FROM OPERATIONS ( 450,985 ) ( 832,729 ) ( 1,563,589 ) ( 2,447,862 ) OTHER (EXPENSE) INCOME Interest income 59,882 27,681 161,033 39,122 Interest expense ( 52,911 ) ( 69,095 ) ( 183,979 ) ( 184,783 ) Other (expense) income, net 99 ( 33,663 ) ( 36,306 ) ( 52,721 ) Total other (expense) income, net 7,070 ( 75,077 ) ( 59,252 ) ( 198,382 ) LOSS BEFORE INCOME TAX (BENEFIT) PROVISION ( 443,915 ) ( 907,806 ) ( 1,622,841 ) ( 2,646,244 ) INCOME TAX (BENEFIT) PROVISION ( 18,705 ) 13,308 ( 44,968 ) 68,422 NET LOSS $ ( 425,210 ) $ ( 921,114 ) $ ( 1,577,873 ) $ ( 2,714,666 ) EARNINGS PER SHARE, BASIC AND DILUTED $ ( 0.04 ) $ ( 0.10 ) $ ( 0.17 ) $ ( 0.31 ) WEIGHTED-AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED 9,485,508 8,893,220 9,263,492 8,809,644 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 Table of Contents WIDEPOINT CORPORATION AND SUBSIDIARIES

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