WidePoint Corpora3on Investor Presenta,on NYSEMKT: WYY CraigHallum Alpha Select Investor Conference September 17, 2015
© 2013 WidePoint Corpora3on. All rights reserved.
WidePoint Corpora3on Investor Presenta,on
NYSEMKT: WYY
Craig-‐Hallum Alpha Select Investor Conference
September 17, 2015
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Safe Harbor
Safe Harbor Statement under the Private Securi4es Li4ga4on Reform Act of 1995: This press release may contain
forward-‐looking informa4on within the meaning of Sec4on 21E of the Securi4es 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 expecta4ons of the company, its directors or its officers with respect to, among other
things: (i) the company's financing plans; (ii) trends affec4ng the company's financial condi4on or results of
opera4ons; (iii) the company's growth strategy and opera4ng strategy; (iv) an4cipated revenues for the third
quarter ended September 30, 2014; and (v) the risk factors disclosed in the Company's periodic reports filed with
the SEC. The words "may," "would," "will," "expect," "es4mate," "an4cipate," "believe," "intend" and similar
expressions and varia4ons thereof are intended to iden4fy forward-‐looking statements. Investors are cau4oned
that any such forward-‐looking statements are not guarantees of future performance and involve risks and
uncertain4es, many of which are beyond the company's ability to control, and that actual results may differ
materially from those projected in the forward-‐looking statements as a result of various factors including the risk
factors disclosed in the company's Forms 10-‐K and 10-‐Q filed with the SEC.
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Company Overview
Protec3ng and managing the integrity of communica3ons for organiza3ons with elegant, easy to use and cost effec3ve solu3ons
Leading provider of Managed Mobility Solu,ons focused on Telecom Lifecycle Management, Iden,ty Management and Assurance, Analy,cs, and IT based Consul,ng.
Headquarters in McLean, VA
Approximately 300 employees, in North America and Europe serving Federal, State/Local and Commercial Customers Globally.
Revenue Expecta,on of $70M -‐ $80M in 2015 up from $53M in 2014
Mul,-‐year growing pipeline of recurring and s,cky revenues driven by CoD and DHS opportuni,es
Managed Mobility Services
Telecom Lifecycle Management
Cybersecurity Solu,ons
Solu,on Partners
Comprehensive, leading-‐edge, secure Managed Mobility Services that meet the
ongoing challenges of accelera,ng technology, cyber threats, and evolving
customer requirements
TEM solu,ons, including a customer Web portal, inventory tracking, service catalog development, mobility invoice audits, 24/7 help desk and more
Digital cer,ficates, creden,als, iden,ty management, informa,on assurance; our exper,se in federated, compliant cybersecurity is applied to mobile security
Partnerships to offer addi,onal mobility services (Truphone, Mobile Pulse) and build unique technology solu,ons (Thales e-‐Security, Xceedium, Spyrus) that further differen,ate us in the market
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EVERY organiza,on must iden,fy who is accessing their network
Tradi,onal approach of passwords and secureID cards is outdated and is highly vulnerable to unauthorized access
43% of companies had a data breach in the past year and 3,000 KNOWN Fortune 100 network breaches in 2014
A new approach is needed and the market need is accelera3ng
WYY Solu3on
Secure iden,ty assurance and device management
― Cost-‐effec,ve, fully-‐scalable, mul,-‐ pladorm
― Proven cloud-‐based solu,on. First to market with Mobile Security-‐first
offering
Only provider of federated iden,ty assurance and device management across mul,ple hardware and O/S’s
Combine exper,se in creden,aling and TLM, both with more than 10+ years experience
Security Market Opportunity
Problem
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Drivers & Partners
3,000 Key Market Drivers
Corporate Websites Hacked in 2014 3,000+
Device Addressable Market 100M+
$1 -‐ $5 per Cer,ficate per Month
Expected penetra,on for agribute-‐based security(1)
Current penetra,on for agribute-‐based security(1)
70%
5%
WidePoint Partners
Handset Security Enterprise
Enterprise Solu,on
First Responders
Hardware Security Modules
Windows To Go®
Biometrics
Hardware Security Modules
TPM
Cert-‐on-‐Device
Machine-‐to-‐Machine Creden3als
Derived Certs
Other Large Enterprises
(1) By 2020 Gartner predicts 70% of enterprises will use agribute-‐based access control as the dominant means of protec,ng cri,cal assets. Gartner es,mates only 5% of enterprises currently use agribute-‐based access control.
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Product Roadmap
Spyrus Spyrus
2016 2015 2017
S O L U T I O N S
Apple HTC
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Pricing & Market Opportunity
$5 -‐ $ 10 – Month
$1 -‐ $5 – Month
$1 -‐ $2 – Month
$1 – Month
$100 Million Device and Growing marketplace
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New Opportuni3es and Successes
$6.5 Million in recent awards, $3.0 Million in Mobility awards
$8 -‐ $10 Million in near term pipeline with $3 -‐$5 Million in CoD poten,al – Federal & Commercial –( excl BPA)
BPA – Remaining Agencies Update – (~ 100K devices)
AT&T Update – Sales Force Support & Early Adopters (Commerical Cycle)
Samsung and other Handset Update – (Knox – LGGate – Kyocera – Others)
Other
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Financial Trends and Outlook
Gross Profit & Margin
Revenue
Growth Outlook
Revenue growth from new contract awards, commercial ini,a,ves and sales & marke,ng investment
DHS $600M Single Awardee / Channel Partners / Cert-‐on-‐a-‐Device
Recurring Revenue Model
Growing recurring revenue base to drive greater visibility and opera,ng leverage
High recurring revenue base / ~75% 2014 revenue from customers greater than 5 years
Margin Outlook
Gross profit expansion with emerging higher value services will drive meaningful opera,ng leverage
Focus on higher margin services
Customer Mix
Improving
Expanding higher margin commercial, interna,onal, state and local revenue to augment “Federal” exposure
Mul3ple non-‐federal growth opportuni3es in 2015 and beyond
$12.4 $14.6
$16.8 $17.7 $17.2
$0.0
$5.0
$10.0
$15.0
$20.0
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
Mill
ions
$3.6 $4.0 $3.4 $3.6
$3.3 29% 27%
21% 20% 19%
0%
5%
10%
15%
20%
25%
30%
35%
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
Mill
ions
Gross Profit Gross Profit (%)
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Why WYY and Why now?
WidePoint Has Solu3ons the Market Needs
Brings more than 10 years of creden,aling for the DoD and Federal government
Has developed a cost-‐effec,ve, mul,-‐pladorm commercial offering leveraging government experience
Has aligned with cri,cal partners to bring solu,on to market
Solu,on merges iden,ty assurance with device management – TLM + cybersecurity
Mobile workforce expanding faster than any prior technology cycle
BYOD is forcing IT departments to support all pladorms
MDM has failed to deliver a security-‐first solu,on
Iden,ty assurance has become cri,cal to prevent network breaches
Our Technology is available and affordable
Market Opportunity is Accelera3ng