I think we'll get started here. Thank you all for joining us here today. Our next presentation is WidePoint, which is traded under the NYSE American under the ticker symbol WYY. WidePoint is an innovative cybersecurity and leading technology management solution provider dedicated to securing and protecting the mobile workforce and enterprise landscape. The company recently announced robust second quarter earnings results and also anticipates being positive earnings per share in fiscal year 2025. The company was also awarded its $254 million increase in its flagship US Department of Homeland Security contract, and was also selected along with six other companies for the $2.7 billion Spiral 4 contract with the US Navy. Here to tell you more about the company and its recent initiatives is WidePoint CEO, Jin Kang. Jin, take it away.
Great. Thank you. Thank you, Steven. Thank you all very much for your time today. And of course, thanks to, you know, Gateway IR for hosting this event, and giving us the opportunity to showcase our company. My name is Jin Kang, as Steven said, I'm the CEO of WidePoint Corporation. I've been with the company since two thousand and eight, when I sold my company to WidePoint and took the reins here as CEO in twenty seventeen. And, you know, I'm here to tell you a little bit about WidePoint, you know, who we are, what we do, you know, why, you know, we're unique. And, but first, this is our safe harbor statement, and I know you've seen all this before, and you understand it, so I won't belabor the point by reading it.
But I will point you to our website at widepoint.com under Investor Relations for a full safe harbor statement. Now, with that out of the way, let me give you a quick snapshot of WidePoint. We are a technology as a service company founded in nineteen ninety-seven, and we have been growing through organic and inorganic means through all of it at that time. We provide secure mobile solutions through a technology management as a service business model. You know, current management team has been in place since twenty seventeen, and since then, we had 95% recurring revenues, $320 million in contract backlog, zero bank debt, 28 consecutive quarters of EBITDA positive, and we see this trend continuing for the foreseeable future.
More notably, we were about $1.4 million in positive free cash flow for the first half of this year, and three consecutive quarters of free cash flow positive. Trailing twelve-month revenue, $120 million. Trailing twelve months EBITDA of $2 million. Roughly $34.9 million, roughly $35 million in market cap. I believe that we are undervalued. We are a value company, I think. The insider owns approximately 19% of the outstanding shares. So, the insiders are aligned with our investors. Just to set the background a little bit, you know, our current cyber environment.
As you all know, cyberattacks are, you know, on the rise, and we are hearing about new cyberattacks daily, and attacks are increasing in size and scope. Here are some of the higher-profile breaches. Europe's cybersecurity chief says the Russian disruptive attacks have doubled in 2024. Nearly 10 billion passwords have been leaked on a popular hacking forum. Ransomware attack shuts down Los Angeles Superior Court. FBI, Michigan Attorney General investigating ransomware attacks on Flint City, and the list goes on and on, and this is continuing to grow.
Average cost for remediation for these cyberattacks, roughly $4.5 million per incident, and that's not even, you know, including all of the penalties and fees and legal fees and also, you know, remunerating the affected parties. Okta, Google, Microsoft, CrowdStrike, you know, you name it, they all have been hacked. All of these cybersecurity cyber hacks have one thing in common, and that is they all could have been prevented, if they had implemented our multi-factor authentication solution to secure their endpoints. So at WidePoint, we help our customers secure their endpoints to ensure comprehensive protection against all cyber threats. In terms of the market size, and that market size is continuing to grow because of all of these hacks.
And as I stated earlier, our addressable market size is roughly $36 billion and growing, and that include federal, state, local governments, and commercial enterprises, large organizations for whom security and compliance is key. Organizations like the military, healthcare, finance, transportation, consumer products, energy sector, you name it. They all are, you know, exposed to these cyberattacks. This market is continuing to grow due to the cybersecurity threats and the post-pandemic environment that is requiring us to work from remote locations. Because we are working remotely, the number of endpoints are continuing to increase, and the budget to secure and manage those endpoints are also increasing, and this will provide tailwinds for our business because we have the tools to address these challenges.
In terms of our core competencies and differentiators, we are the leading provider of secure mobility solutions. We help our customers secure, manage, and gain visibility into their mobility assets. We secure our customer's cyber interactions in the mobile world. What makes us unique is that we have an identity and access management solution that has never been hacked. Implemented in all of the federal government agencies, including the Department of Defense. One that has a universal application, it's applicable to any system. One that is also quantum computing resistant, right? And now we are bringing that solution to the commercial market. We're very strong in the federal space. We're bringing that to the commercial space.
We're at the confluence of cybersecurity and mobile solutions, and in our, you know, post-pandemic environment, both of these solutions are critical for securing interactions in cyberspace. We have a solution that we've built from the ground up to support our customers' mobility needs, and we own the IP for each of our solutions, for the most secure multi-factor authentication solution that is available on the market today, the one that has received federal authorization to operate. The most comprehensive, secure mobility management solution, again, a solution that has received federal government authorization to operate and soon to receive FedRAMP authorized status. Secure digital billing and analytics, maintaining full visibility of our customers' mobility assets and usage data, and providing the analytics associated with that.
Comprehensive IT as a service, providing full lifecycle support for our customers' IT infrastructure. Again, we own the IP for each of our solutions, and we deliver our solutions through a SaaS model. Again, we have the ATOs and soon to be FedRAMP authorized for our applications, which is a huge differentiator. It's a very high hurdle to attain. So now let me tell you a little bit more about our cybersecurity solution that we have, and how we, you know, help secure our customers' endpoints. As I stated earlier, we provide the most secure multi-factor authentication, MFA. You probably heard this, you know, a thousand times.
One solution that is quantum computing resistant and one that has never been hacked by the most sophisticated tools that are out there. Our solution is relied on by over eighteen thousand enterprises worldwide. It provides the most secure physical and logical access controls. It eliminates the need for multiple user ID and password combinations. No more user IDs, no more passwords, no more waiting for the seven or eight-digit, six-digit number, random number. We have been providing this solution since nineteen ninety-five to the U.S. government. We were the first company to be certified by the U.S. Department of Defense. And currently, we are only one of two certified by the U.S. government to issue these credentials that serve as the foundation for the Zero Trust security architecture.
Now we are bringing this DoD-grade multi-factor authentication solution to the commercial sector. We recently stood up the infrastructure to begin making these certified identity criteria available for commercial use. We are, you know, gaining a lot of traction there, and please stay tuned for more news on this front and, you know, contract awards we will be announcing. Not only do we have the most secure MFA solution available on the market, we also provide the full set of services, the wraparound services to help our customers implement, support, and administer that solution. That includes consulting, subject matter expertise, secure hosting, and enablement. Again, the most secure quantum computing resistant multi-factor authentication solution available on the market today.
This slide shows a sampling of our customers, and as you can see, these logos represent large, stable enterprises that require a large mobile workforce. The box on the top right-hand corner shows our marquee contract with the Department of Homeland Security. It's the CWMS 2.0 contract, the Cellular Wireless Managed Services contract. It is a five-year single award contract if all of the options are exercised, and, you know, the federal government, you know, rarely do not exercise all of their options. We recently announced that our contract ceiling was increased from $500 million to $754 million.
DHS can now spend up to $754 million under this contract, and they have the option to extend the contract to increase the cap, you know, again, if they so desired, which they did in the previous version of this contract, the CWMS 1.0. Okay? We re-won this contract a little over, I guess, almost four years ago now, and so far, we have captured over $500 million of work under this contract. And by the way, we have saved the Department of Homeland Security over $300 million in telecom costs over the life of the contract. A little bit more about the DHS contract. They did announce that they are preparing for the CWMS 3.0 contract.
They should be awarding that probably within the next 18 months. We are the best, we are in the best position to win, re-win that contract because of all of our certification and accreditation, our subject matter expertise, our systems integration with all of the DHS systems, and we have great past performance. You know, the federal government for every task order, they provide a grading for the task order, how well the contractor performed. We have received, you know, excellent rating for all of our task orders. So now we're also estimating this new contract, the CWMS 3.0, to be roughly $1.5 billion based upon, you know, our current run rate.
And the contract is now going to be extended from a five-year contract to a ten-year contract. We also have been awarded a contract along with six other winners on the Spiral 4 contracts. It's a Navy contract for telecom lifecycle management. This contract ceiling is roughly $2.7 billion. We believe that we have a unique set of solutions that the other winners cannot replicate. And, you know, I can go into more details on that. If you're interested, just pull me aside, and I'll explain that. So we should see some deal flow coming in in the fourth quarter or the first quarter of next year and throughout all of 2024, so stay tuned for that. We are also pursuing other large...
Also other large opportunities, such as the NASA SEWP contract. SEWP stands for Solutions for Enterprise-Wide Procurement contract, which is valued at $60 billion. And so we're, you know, chasing a lot of these large opportunities, and just capturing a small, you know, percentage of this, the work under these contract vehicles is gonna be a huge deal for us. So, you know, aside from pursuing all these large, you know, opportunities, a bit about our growth strategy is that, we have a two-pronged strategy for growth, which includes both organic and inorganic elements.
In terms of our organic growth, we enhance our competitive edge by investing in our solution sets, such as, you know, FedRAMP certification, Microsoft Independent Software Vendor certification, further integration with industry-standard applications, such as, Mobile Device Manager, MDM, MAM, MMS, MX, ServiceNow, et cetera. We will improve leverage by pursuing higher-margin managed services contract and expanding into the commercial sector with our identity management solution and our mobility solutions. We will continue to expand our customer base by investing in our direct sales and marketing staff and efforts, and teaming with large, entrenched systems integrators and strategic partners, to leverage their significant sales and marketing resources, as well as their substantial customer relationships.
In terms of our inorganic growth, we will seek out, you know, high-value acquisition candidates with vertical and horizontal integration opportunities, establishing stable companies with desirable IP and/or customer base. You know, this has been a lower priority as we focus on organic growth, but as we turn the corner into profitability at the end of this year, you know, positive earnings per share, that's our goal for fourth quarter, and we should be earnings per share positive for all of twenty twenty-five. But as we get, you know, turn the corner to, you know, earnings per share positive, we're looking around for potential, you know, add-ons and acquisitions to deepen our capabilities and also broaden our customer base.
A little bit more about our growth strategy by expanding with our partners and systems integrators. We will continue to expand the relationship with these large entrenched systems integrators, as well as other strategic partners. We are becoming their vendor of choice. I don't know why this thing keeps, you know, jumping forward. Sorry about that. We're becoming their vendor of choice for technology management and services solutions. Our core competencies and our certification and accreditation represent key components in these large IT contracts with the federal government as well as, you know, commercial sector. As such, we are sought after by our strategic partners now. Instead of us chasing them, they're chasing us. We have had great success in the past year and more success to come.
This slide shows a sampling of our strategic partners, and that's continuing to grow. As I said, we had experienced some good successes there. This is our financial slide. As you can see, we are a stable company with improving financials. All of the bars are moving in the right direction. Our top line have experienced double-digit % growth for the past several years now. We ended last year with roughly $6.0, almost $7 million in cash. We have been adjusted positive now, as I said, 28 consecutive quarters and counting. We ended 2023 with $106 million in top-line revenue, which was at the high end of our guidance.
We guided for 2024, $120-133 million in top-line revenue, $2.1-2.4 million in adjusted EBITDA, and more importantly, $2-2.3 million in free cash flow positive. At the middle of our guidance range, this guidance range, we're looking at a growth in the high teens %. And so far for first half of 2024, our revenue topped $70 million. Free cash flow topped $1.3 million. So, we're well on our way to the higher end of the range that we had provided for our guidance. And we see continued improvements. I'll end my presentation with some key investment considerations.
As I said, we're a solid and stable company. When the management took over in twenty seventeen, we were probably a quarter or, you know, a month, a quarter, maybe two quarters away from insolvency. We had a mountain of debt. We corrected all of that. We have exited twenty twenty-three cash flow free cash flow positive on a run rate basis, and now have three sequential quarters of free cash flow positive, and we see that trend continuing for all of twenty twenty-four, and then earnings per share positive for twenty twenty-five. We recently announced several major contract wins and actions with the Navy Spiral 4, the DHS CWMS 2.0, and we're chasing the NASA SEWP contract. These are all, you know, billion-dollar contracts.
You know, please check out our website for additional wins that should be coming, and that these large contracts will continue to add wind to our sales. We have a proven management team who... You know, we're operators, and we know how to, you know, grow and run a, you know, profitable business. When we took over in 2017, as I said, the company was just about, you know, out of business, but since then, we turned the ship around. Now, we're hitting that inflection point. We operate in a large cyber and mobility market that is continuing to grow in leaps and bounds, some $36 billion and growing. We have the IP, the subject matter expertise, and the business model to address the needs of this growing market.
We have a robust set of customers who are large and stable in both public and private sectors, and we are successfully executing our growth strategy for both organic and inorganic growth. You know, at $35 million in market cap, I think we are, you know, way undervalued, but it is what it is, so you know, that concludes my presentation. Thank you very much for your time, so let me open the floor for questions.
We'll open up the floor for a Q&A.
Sure. I ask you about you had mentioned quantum safety.
quantum computing resistant? Yes. Uh-huh.
Yeah. Just quickly, is that something your customers are asking for? To my knowledge, I hear that's many years away, maybe I'm wrong.
Yeah.
Is that something your customers are asking for, or just something you're trying to get ahead of?
We're trying to get ahead of it. I mean, computers are getting more and more powerful each day, as the day go by, and they're talking about quantum computing that's going to break every, you know, encryption and every password and so forth. The way we have our algorithms and the way we have architected that solution, it will always be quantum computing resistant. As the computers get more powerful, you know, we would increase the bit strength of our algorithm so that right now, it will take the most powerful computer that we have currently about a hundred and forty years to break the algorithm. As the computers get more and more powerful, we will increase the bit strength of that algorithm.
I think it's critical to have, you know, an identity and access management solution that's going to be unhackable, if you will.
Okay. As far as your technology goes-
Mm-hmm.
There wasn't a structural rewrite that was needed. It was just an enhancement of the software, of the chassis that was already in place.
Correct. So, I think, Secure Hash Algorithm 1 came out, which was, I believe it was, like, a 256-bit encryption, and then the SHA-2, which is the Secure Hash Algorithm 2, which is now 512 bit. So as the computers get smarter and smarter and faster, we will increase the hash algorithm by another, you know, maybe 1024.
Can you just go over in more detail, perhaps the breakdown revenue between public and commercial customers?
Sure. Right now, the lion's share of our revenue is in the federal government sector, which is, you know, very solid, very stable, but you know, we're looking for additional revenues in the commercial side because they are more profitable, so the breakdown of revenue between federal and commercial is roughly 80/20, 80% federal government, 20% commercial. But what you have to consider is that there is a carrier services revenue portion, which, you know, we can talk offline on that.
Of course. And then, I guess my other question, and sorry if I missed this point, but I know for the federal, it's five-year contracts. I noticed commercial, it's three years.
Yes.
Why the difference? Why, why not push for five-year contracts on the commercial side as well?
That's a good question. The federal government don't like to go through acquisitions, so they want to have as a long, you know, a period of performance as possible. And so, you know, now they're going from a five-year to a ten-year contract for the DHS, Department of Homeland Security contract. That's because, you know, the amount of time and effort that it takes them to go through the acquisition process is long and drawn out. There's a lot of people, you know, have to be involved in that. And so they want to minimize the amount of time that they spend on that, on the federal government side.
On the commercial side, on the other hand, I think that they want to have more flexibility, so that they can, you know, dump a non-performing contractor and get a new contractor.
Thank you. We have time for one more question.
Thank you. You did a good job growing revenues-
Yeah.
From 21- 24, from $87 million to $120 million. I assume there's a lot of COVID stuff that we don't need to talk about.
Yes. Yes. Uh-huh.
But, you're back to two million in EBITDA, which is what you had in eighty-seven, so how do we get leverage out of the revenues?
Yeah, good, good question. We have to go and get more managed services revenue, which we are. All of the Spiral 4 and the CWMS includes what they call a carrier services revenue, and so you have to discount the revenue, you know, the carrier services revenue. The way we grow gross profitability and net profitability is by capturing more managed services revenue, and our identity and access management solution, and all of our SaaS revenue. And so that's what we're focusing our effort on. And, you know, there's a lot of opportunities, you know, that we are chasing right now.
Great. Thank you, Jin. So this will conclude the presentation for WidePoint. If you have any other questions, feel free to visit the one-on-one desk and then register for a meeting with Jin.
Yeah, and if I didn't answer all your questions, please come see Steven or John at Gateway, and they'll be able to answer those questions for you. Thank you.