WidePoint Corporation (NYSE American:WYY), the leading provider of Trusted Mobility Management (TM2) specializing in Telecommunications Lifecycle Management, Identity Management (IdM) and Digital Billing & Analytics solutions, today reported results for the full year and fourth quarter ended December 31, 2020.

Fourth Quarter 2020 and Recent Operational Highlights:

• Secured the U.S. Department of Homeland Security's (DHS's) Cellular Wireless Managed Services (CWMS) 2.0 contract, valued at up to $500 million
• Awarded two new Identity Management contracts, expanding WidePoint's commercial footprint as well as the Company's secure digital certificates into a new U.S. federal agency
• Number of U.S. Department of Defense secure digital certificates issued increased 17% year-over-year from the fourth quarter of 2020, leading to an increase in high margin Identity Management revenue
• Soft-Ex, WidePoint's subsidiary, awarded multi-year digital billing and analytics contracts with multiple European enterprises, including Cancom, Zetacom, and Three Ireland
• Secured more than $10.4 million in contract wins, exercised option periods, and contract extensions during the fourth quarter of 2020, excluding the new contract from DHS
• Successfully effectuated 1-for-10 reverse stock split on November 6, 2020

Management Commentary

"2020 was the most successful year in WidePoint's history as we set records in each of our financial performance metrics, during a pandemic, while seamlessly managing the largest mobility managed service project in the country," said WidePoint's CEO, Jin Kang. "In 2020, our total revenues increased to $180 million, while our managed services revenues increased 29% year-over-year. The increase in our higher margin managed services business coupled with a minimal increase in our operating expenses demonstrates the leverage we have in our business model. Our ability to efficiently scale drove $2.1 million in net income, excluding our non-cash tax benefit, which is an 830% increase in net income from 2019, as well as a 59% increase in adjusted EBITDA to $5.7 million, which was right at the top end of our expected range.

"At the end of the year, we were awarded the much-anticipated CWMS 2.0 contract from the U.S. Department of Homeland Security, securing our position with one of our most prominent customers. That momentum has carried into 2021 with several wins for both our Identity Management and Digital Billing and Analytics businesses, both of which remain in high demand as we offer effective solutions to many of the challenges large government and commercial enterprises face in the modern, mobile world.

"Our primary objective for 2021 is to profitably grow WidePoint by focusing on our core competencies, by strengthening our technical capabilities, and by enhancing our organization with an accretive acquisition. With a robust client base and over 90% customer retention, demand for our solutions increasing, and a balance sheet with $16 million in cash and no debt, we are confident that we will be able to execute on our strategy in 2021 and continue driving value for our shareholders."

Full Year 2020 Financial Highlights (results compared to the same year-ago period):

• Revenues increased 77% to $180.3 million
• Managed Services revenue increased 29% to $42.7 million
• Gross profit increased 18% to $20.5 million
• Net income totaled $10.3 million, or $1.20 per diluted share, including an $8.2 million, or $0.95 per diluted share, one-time tax allowance reversal
• EBITDA, a non-GAAP financial measure, increased 71% to $4.9 million
• Adjusted EBITDA, a non-GAAP financial measure, increased 59% to $5.7 million

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

• Revenues increased 1% to $28.4 million
• Managed Services revenue increased 7% to $8.9 million
• Gross profit increased 1% to $4.8 million
• Net income totaled $8.3 million, or $0.94 per diluted share, including an $8.2 million, or $0.93 per diluted share, one-time tax allowance reversal
• EBITDA, a non-GAAP financial measure, increased 39% to $1.1 million
• Adjusted EBITDA, a non-GAAP financial measure, increased 30% to $1.3 million

Full Year 2020 Financial Summary is available on www.widepoint.com

‍

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.

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

‍