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WidePoint Corpora3on Investor Presenta,on NYSEMKT: WYY CraigHallum Alpha Select Investor Conference September 17, 2015

WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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Page 1: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

©  2013  WidePoint  Corpora3on.  All  rights  reserved.  

WidePoint  Corpora3on  Investor  Presenta,on  

NYSEMKT:  WYY  

Craig-­‐Hallum  Alpha  Select  Investor  Conference  

September  17,  2015    

Page 2: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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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.  

Page 3: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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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  

Page 4: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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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  

Page 5: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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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.  

Page 6: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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Product  Roadmap  

Spyrus   Spyrus  

2016  2015   2017  

S  O  L  U  T  I  O  N  S  

Apple  HTC  

Page 7: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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Pricing  &  Market  Opportunity  

$5    -­‐  $  10  –  Month  

$1    -­‐  $5    –  Month  

$1    -­‐  $2    –  Month  

$1  –  Month    

$100  Million  Device  and  Growing  marketplace    

Page 8: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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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  

Page 9: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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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 (%)

Page 10: WidePoint Investor Deck - September 2015 - F · 3 CompanyOverview Protecngandmanagingtheintegrityofcommunicaonsfor organizaonswithelegant,easytouse"andcosteffec3ve"soluons Leading)provider)of)Managed)Mobility)

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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