WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today reported results for the second quarter ended June 30, 2020.

Second Quarter 2020 and Recent Operational Highlights:

• Secured $42 million in federal contract wins, exercised option periods, and contract extensions during the second quarter of 2020
• Awarded a new contract from the Virginia Alcoholic Beverage Control Authority (Virginia ABC) for telecom expense management (TEM) services
• Secured $1.5 million in commercial TM2 contracts during the second quarter of 2020
• Increased the number of devices managed for the United States Census 2020 by over 50% to approximately 680,000 devices
• Announced a strategic vendor agreement with SYNNEX Corporation (NYSE: SNX), potentially expanding channels for reselling credentials

Second Quarter 2020 Financial Highlights (results compared to the same year-ago period):

• Revenues increased 148% to $54.8 million
• Managed Services revenue increased 22% to $9.8 million
• Gross profit increased 25% to $5.1 million
• Net income totaled $489,000
• EBITDA, a non-GAAP financial measure, increased 230% to $1.0 million
• Adjusted EBITDA, a non-GAAP financial measure, increased 107% to $1.2 million

Six Month 2020 Financial Highlights (results compared to the same year-ago period):

• Revenues increased 115% to $94.4 million
• Managed Services revenue increased 37% to $21.4 million
• Gross profit increased 21% to $10.0 million
• Net income totaled $973,000
• EBITDA, a non-GAAP financial measure, increased 73% to $2.2 million
• Adjusted EBITDA, a non-GAAP financial measure, increased 62% to $2.7 million

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The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under the “Safe Harbor Statement” below.

Financial Outlook

For the fiscal year ending December 31, 2020, the company is reiterating its revenue guidance of $185 million to $195 million, which at the midpoint of the range, would represent 87% growth. The company is also reiterating its EBITDA guidance of $3.0 million to $3.4 million, which at the midpoint, represents a 13% increase relative to fiscal 2019.The EBITDA forecast takes into consideration the company’s planned strategic investments in sales and marketing and product development in the second half of 2020. The company’s financial outlook is based on current expectations.

Management Commentary

“Despite the challenging operating environment that persisted through the second quarter of 2020, we continued to build on the positive trends we established at the start of the year and produced one of the most successful quarter’s in our company’s history,” said WidePoint’s CEO, Jin Kang. “Our revenues increased considerably to $54.8 million, largely driven by our increased work on the U.S. Census 2020 as well as expansions with other federal government customers who rely on our services to help them navigate the increasing complexities of the mobile landscape. Although the Census project contains a large amount of Carrier Services revenues, which negatively impact our margin profile, we still earned $489,000 in net income and approximately $1.0 million in EBITDA as our high margin Managed Services revenues increased 22% to $9.8 million in the second quarter.

“As the number of mobile and IoT devices continues to expand, the need for effective management and top-tier security, which simplifies complexity and generates cost savings, is only increasing. Given those trends and our strong financial position, we remain optimistic about our prospects for the second half of the year and our ability to continue profitably growing the business over the long term.”

For complete financial details, please visit www.widepoint.com

Conference Call

WidePoint management will hold a conference call today (August 13, 2020) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.

WidePoint President and CEO Jin Kang, Executive Vice President and Chief Sales and Marketing Officer Jason Holloway, and Executive Vice President and CFO Kellie Kim will host the conference call, followed by a question and answer period.

U.S. dial-in number: 844-407-9500
International number: 862-298-0850

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through August 27, 2020.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 36035

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About WidePoint

WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, mobile management, identity management, and digital billing and analytics. For more information, visit widepoint.com.

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Safe Harbor Statement

The information contained in any materials that may be accessed above was, to the best of WidePoint Corporations’ knowledge, timely and accurate as of the date and/or dates indicated in such materials. However, the passage of time can render information stale, and you should not rely on the continued accuracy of any such materials. WidePoint Corporation has no responsibility to update any information contained in any such materials. In addition, you should refer to periodic reports filed by WidePoint Corporation with the Securities and Exchange Commission for information regarding the risks and uncertainties to which forward-looking statements made in such materials are subject. Such risks and uncertainties may cause WidePoint Corporation’s actual results to differ materially from those described in the forward-looking statements.

Investor Relations:

Gateway Investor Relations
Matt Glover or Charlie Schumacher
949-574-3860
WYY@gatewayir.com

Recent research from industry analysts Omnisperience found that 84% of communications service providers (CSPs) intend to invest in improving their bill communications. But what are bill communications and what needs to change?

The perception of bills is that they are very simple demands for payment generated by legacy billing systems. They have been historically generic, paper-based, and often delivered with a tone of voice that was at best officious and, at times, intimidating. Increasing amounts of information have also been added to bill documentation to fulfil the requirements mandated by regulators as well as to meet the needs of CSPs themselves. The resulting presentation of the bill, while accurate, has been hard to decipher, and not very interesting.

Current bill formats are costing CSPs money

As many as three quarters (75%) of the CSPs involved in the Omnisperience study thought that their bill presentation wasn't clear enough, resulting in customers having to contact call centres for an explanation. This is both expensive to manage and detrimental to the customer experience.

On top of this, legacy bills can also drive a range of negative emotional responses in customers including: bill dread -where a negative billing experience exacerbates a fear response when a new bill arrives; bill shock – where customers discover that the bill is far bigger than expected, resulting in fear, anxiety and frustration; and bill apathy – where bills are always the same. This latter factor can often result in customers putting the bill aside without even looking at it, further cultivating a 'zero engagement' scenario.

While CSPs have tried to meet customers’ needs for a more digital experience, these initiatives have often been little more than a digital representation of legacy paper bills, i.e. it's the same information but delivered via online portals or emailed as PDFs.

Towards value-added billing

The good news is that legacy bills – both paper and digital – are finally evolving. With greater analytical capabilities (92% of CSPs intend to add analytical and reporting capabilities) and better designs (83% are going to improve the look and feel of bills) bills are set to become an effective mid-lifecycle customer communications asset rather than just a dull demand for payment.

Enhanced bill communications can help customers (be they enterprise, SME, micro, or even a household) to understand what they use as well as how their usage and services are aligned. And by including expanded explanations on one bill – such as charging and usage parameters for example –  there will be fewer instances of multiple bill generation.

Also evolving is the personalised tone of voice to help encourage engagement, and the addition of demonstrable value,rather than just listing the cost of services. This kind of progress can enable the bill to be rapidly adapted to embrace future initiatives such as 5G, or new packages aimed at gig economy or homeworkers. It will also transform the bill into a platform to recommend new products and services that are tailored to the customer based on previous patterns of behaviour.

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For more information email sales@soft-ex.net

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WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today reported that the company recorded $1.5 million in commercial contracts for Telecom Expense Management and Mobility Managed Services in the second quarter of 2020. Contracts were secured from leading health care, technology, fast food and real estate corporations.

“Expanding more into the commercial space has been an important strategic initiative, and we’re therefore very encouraged to see our commercial TM2 business continue to grow in the face of the coronavirus pandemic,” said Jin Kang, WidePoint’s president and CEO. “As companies continue to adjust their work environments in response to the pandemic, some of the many enhancements they’re pursuing include enterprise management solutions to increase accountability and further enable their mobile workforce. Our solutions help these organizations, whether they be government enterprises or Fortune 100, to maximize telecom and mobile resources. These trends have been helping drive our business forward over the past few months, and we’re very encouraged to see them also contribute towards the achievement of one of our primary goals: increasing our presence in the commercial space.”

About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, managed mobility services, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Investor Relations:
Gateway Investor Relations, Matt Glover or Charlie Schumacher
949-574-3860
WYY@gatewayir.com

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WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today reported that the company secured a new contract from the Virginia Alcoholic Beverage Control Authority (Virginia ABC) to provide the agency with Telecom Expense Management (TEM) services. The contract term is for one year, contains four additional one-year renewal periods, and has a total contract value of approximately $1.2 million.

Virginia ABC and its nearly 4,000 employees serve the Commonwealth of Virginia as an independent political subdivision. Virginia ABC is one of 11 public safety agencies working with the Secretariat of Public Safety and Homeland Security.

“Virginia ABC is a leading revenue producer for the Commonwealth and a source of future growth for Virginia, WidePoint’s home state,” said Jin Kang, WidePoint’s president and CEO. “It is encouraging to see that an innovative organization such as Virginia ABC is not letting the challenges of the coronavirus pandemic impede its vision for enhanced accountability and inventory management. As government agencies across the country look for ways to save money and save jobs, Virginia ABC is leading the way, and WidePoint is providing the telecom and mobile management solutions that deliver meaningful results.”

About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, managed mobility services, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Investor Relations:
Gateway Investor Relations, Matt Glover or Charlie Schumacher
949-574-3860, WYY@gatewayir.com

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WidePoint Corporation (NYSE American: WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management and Digital Billing & Analytics solutions, today reported that the company recorded more than $42 million in federal contract awards and extensions during the second quarter of 2020.

During the quarter, WidePoint recorded 34 contractual actions, including new contracts, contract renewals, exercised option periods and contract extensions with federal government clients. Highlights include:

• Task orders, contract renewals and extensions with the U.S. Department of Homeland Security Headquarters and numerous DHS Components
• Option contracts for Managed Mobility Services exercised by the Centers for Disease Control and Prevention, National Science Foundation, U.S. Courts, and the U.S. Department of Health and Human Services, among others

“Many agencies are continuing to adopt more mobile workforce practices, and that trend is significantly expanding our work and helping drive growth for WidePoint,” said Jin Kang, WidePoint’s president and CEO. “Additionally, as government agencies grapple with changing budgets, the value of WidePoint’s TM2 solutions has become even more evident. We help our customers save money, which translates to saving jobs. We’re highly encouraged by the traction we’ve gained this year. We look forward to continuing this momentum to maximize resources across the mobile landscape for our current and prospective clients.”

About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading provider of trusted mobility management (TM2) solutions, including telecom management, managed mobility services, identity management, and digital billing and analytics. For more information, visit widepoint.com.

Investor Relations:
Gateway Investor Relations, Matt Glover or Charlie Schumacher
949-574-3860, WYY@gatewayir.com

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The leading B2B telecoms analyst firm Omnisperience and digital bill communications and analytics specialists Soft-ex have announced new research, which has found 84% of communications service providers (CSPs) are planning to invest in more effective customer communications in the next 24 months.

Throughout the COVID-19 crisis, CSPs played a vital role in keeping both enterprises and households connected. But as life begins to normalise, they are now focused on what comes next. Two key factors are turning their attention to the importance of improving their bill communications:

1.       There’s an urgent requirement to help customers understand and regain control of spending. Business customers need to analyse what they bought during the crisis phase, how useful it has been, and whether they still need it, in order to optimise their spending and get OPEX back under control. Likewise, many consumers and SMEs are facing financial pressure and need to review and revisit their spending, or renegotiate payments. Transforming static bills into interactive, personalised and dynamic digital communications enables CSPs to meet such customer expectations.

2.       Support for innovation. More advanced digitalisation will see 5G and FTTP connections, WiFi 6 and a whole range of exciting new services rolled out. But there’s a sting in the tail of innovation. Customers need to understand their spending on new and unfamiliar services, as well as the effect of more frequent changes to packages. If bills don’t clearly explain this, confused customers will ring call centres for explanations.

“During the COVID-19 crisis, businesses bought whatever they needed to keep the lights on,” says Teresa Cottam, Chief Analyst at Omnisperience. “Now they have to get their OPEX back under control, which means CSPs have a vital role to play in providing critical insight into customers’ ICT spending.”

This is a pressing issue, says Cottam, because legacy bills often aren’t clear or don’t provide all the information customers need. In fact, 75% of respondents to Omnisperience’s research admitted that customers had to resort to contacting overworked call centres because they didn’t understand their current bills.

“CSPs have spent billions transforming their operations, but this key piece of the puzzle – bill communications – has been overlooked despite bills being one of the most important touchpoints with customers,” says Soft-ex’s Grainne Magfhloinn.

The good news is that CSPs are committed to doing better - telling Omnisperience that COVID-19 has not slowed down their transformations. In fact, 75% said it has speeded up digitalisation efforts, with 84% revealing they intend to invest in more effective communication of charges.

“When customers call about their bills, it often turns out the bill is correct but the customer doesn’t understand it,” reveals Cottam. The result is a negative loop of frustrated customers, higher customer care costs and unhappy customer service staff – which had led to high employee churn rates in call centres. Lack of investment in this area has made it hard for CSPs to provide the type of digital experience and level of customer care they aspire to.

But this situation is set to change, because CSPs are well aware of what’s at stake, meaning that in the next 24 months:

·       84% will invest in improving bill communications

·       92% intend to improve or add analytical and reporting capabilities

·       75% will introduce self-service bills

·       83% will improve the look and feel of their bills.

This is great news for customers, CSPs and their staff, according to Cottam. “Better bill communications is the foundation of successful digital service provision and healthy customer relationships. It creates a virtuous circle of happier customers, lower support costs and more fulfilled staff who spend less time fire-fighting and more time being creative and enhancing the experience,” she says.

Magfhloinn agrees: “CSPs have known they need to fix this for a long time, but they’ve had so much to do that it kept slipping off their to-do list. Now they’re facing huge and continual changes in their commercial relationships and they know they cannot delay improving their bill communications any longer”.

“A lean approach to Digital Transformation advocates focusing on where the customer perceives the most value,” adds Cottam. “As CSPs shift from a customer acquisition mindset to one of retention, bill communication becomes vital to building a healthy, engaging dialogue with customers. Our research shows that this is driving investment in this area, enabling CSPs to transform customer experiences and deliver the experiences their customers expect.”

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