Good afternoon. Welcome to WidePoint's second quarter 2022 earnings conference call. My name is Matthew, and I'll be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, Jin Kang, Executive Vice President and Chief Sales and Marketing Officer, Jason Holloway, and CFO, Robert George. Following the remarks, we will open up the call for questions from WidePoint's publishing analysts and major investors. If your questions were not taken today, and you'd like additional information, please contact WidePoint's Investor Relations team at WYY@gateway-grp.com. Before we begin the call, I would like to provide WidePoint's safe harbor statement that includes cautions regarding forward-looking statements made during this call.
The matters discussed in this conference call may include forward-looking statements regarding future events, and the future performance of WidePoint Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-Q filed with the Securities and Exchange Commission. Finally, I'd like to remind everyone that this call will be made available for replay via a link in the investor relations section of the company's website at www.widepoint.com. Now I'd like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang. Sir, please proceed.
Thank you, operator, and good afternoon to everyone. Thank you for joining us today to review our financial results for the second quarter ended June 30, 2022. I'm excited to start by sharing that our revenue showed double digit percentage growth compared to the same period last year. We see a strong second half of 2022 ahead of us as we see a clear path to improve operating conditions, and pending contract execution in our sales pipeline, in addition to contract wins, already announced prior to our call. We have fortunately begun to see signs that the macroeconomic headwinds created by the pandemic, and the supply chain disruptions are beginning to subside. In parallel with the macroeconomic conditions beginning to turn in our favor, we have also been able to start recognizing customer opportunities that have been pushed to the right in the past several quarters.
Whether new or existing clients, the amount of recent interest we've received from our customers has resulted in a significant amount of momentum generated for WidePoint. An encouraging piece that I want to share, is that our team's ability to upsell and cross-sell our set of solutions to existing customers. As our portfolio of products has grown, once we get our foot in the door with a client, it is much easier for us to upsell and cross-sell, as our solutions provide a sticky and compelling value add into our clients' operations. The sales team continues to do a phenomenal job of expanding the scope of work with our existing clients and, remain steadfast in their efforts to ensure we capitalize on all opportunities.
The encouraging status report on the sales front, our market-leading DoD multi-factor authentication solution, and our comprehensive managed mobility services, combined with our team's ability to continuously operate efficiently internally, has helped generate this momentum. In support of operating efficiently, we have reviewed our legacy organizational roles, and recently made several strategic shifts within our corporate infrastructure to further streamline and consolidate roles and responsibilities. Our plan is that focusing our resources and maximizing the efficiency of our company's operations will help us prioritize sales and operational objectives to exponentially grow our sales pipeline, enhance internal communications, improve synergies, minimize costs, and ultimately increase our profits.
That said, I am pleased to share that we have recently promoted our very own Jason Holloway, currently WidePoint's Executive Vice President and President of WidePoint Cybersecurity Solutions Corporation and Chief Sales and Marketing Officer, to the new role of Chief Revenue Officer. With this promotion, Jason will continue to spearhead sales and marketing, as well as all revenue-generating activities, including M&A, across all of our subsidiaries. Additionally, Todd Dzyak, President of WidePoint Integrated Solutions Corporation, has been promoted to Chief Operating Officer to manage all of our organization's North American operations. Also, Ian Sparling, CEO of our subsidiary, Soft-ex, will assume the role of Chief Operating Officer, International.
Again, the purpose of expanding the roles for Jason, Todd, and Ian and the shift in our corporate infrastructure is to ensure that we're able to better focus, prioritize, and bring to bear the consolidated resources needed to accomplish our company's objectives and execute our strategies more effectively. These changes remove the constraint from our executives being confined to a certain WidePoint subsidiary and give them a functional role across the entire company. We believe that WidePoint has graduated onto the next phase of our corporate timeline and are confident that giving our executive a functional focus will be the most effective way to conduct business going forward. I believe that these changes will accelerate our growth as well, as we head into the second half of this year and beyond.
Additionally, this realignment comes at an ideal time, as it will help us capture synergies from the recent IT Authorities acquisitions and best prepare us to integrate additional entities following M&A activities. I'll dive further into this topic later in this call. As I've shared on our prior earnings call, WidePoint has continued to make strategic investment back into our technology, notably our delivery system and our continuity of operations plan or COOP. On the COOP front, we continue to make progress to ensure that our capabilities meet and exceed our clients' requirements. We recently tested our disaster recovery plans and verified that our processes and procedures worked successfully. We're also investing in creating a hot COOP site to further enhance our disaster recovery capabilities. We continue to enhance our intelligent technology management system or, ITMS capabilities to improve our customers' user experience.
We recently helped several federal agencies reduce their use of physical paperwork by streamlining their property and accountability process within their ITMS instances, thereby helping them achieve some of their ESG program goals. As I mentioned in our previous earnings call, we expect our FedRAMP sponsoring agency to complete their paperwork in Q3, and move our efforts to the in-process status. Also, as mentioned on our previous call, we operationalize our commercial identity and access management or IAM solutions. We continue to make enhancements to our IAM solutions, which is a solution that we have been showcasing to the K-12 institutions, bottling industry customers, banks, and other commercial entities. Additionally, we have successfully designed, developed, tested, and implemented our remote identity verification and certificate issuance process to streamline, and reduce the cost of issuing digital certificates.
This capability is a game changer for identity, and access management solution, as it will now allow us to certify and issue digital certificates remotely, and remove the need for our customers to physically travel to a registration site, saving them time and money, while at the same time reducing their carbon footprint. As a reminder, our IAM solution is the most secure, quantum-resistant, multi-factor authentication solution that is certified by the US federal government. An encouraging note is how these investments into our products and solutions have resulted in incremental cross-sell and upsell opportunities with existing customers.
Recognize this return on investment from our time and resources being spent on investing back into our business has proven that, one, our technology helps companies solve real problems, and two, there is significant business development opportunities that we need to ensure we capitalize on, and three, identity and access management is not optional. Our team is excited for what's ahead. We have already begun to see the incremental growth in our core business heading in the right direction. Coupled with the operational enhancements we'll be making, this ultimately gives us the utmost confidence that we are setting ourselves up for greater success in the second half of the year and beyond. With that overview completed, I will now turn the call over to Jason to provide you with some details on the investment we are making on the sales and marketing front. Jason?
Thank you, Jin, and good afternoon, everyone. As Jin stated, we have a robust sales pipeline and are continuing to build momentum from a business development standpoint for both existing and new customers. The reason for this is due to a blend of several months of engagements that were pushed to the right, finally coming to fruition, in addition to the sales team finding cross-sell and upsell opportunities with existing clients, as well as investments we are making in sales and marketing, that we see paying off in the fourth quarter and beyond. First, I'll touch on some of the net new wins I am able to share at this time.
One of the more recent wins we announced was for our subsidiary, Soft-ex, and the launch of its Three Analyst platforms with Three UK, a connectivity company that covers 99% of the UK mobile users with its combined 3G and 4G networks. The Three Analyst platform is Soft-ex's latest digital billing communications and analytics platform that's designed to provide customers with the ability to track mobile usage and spend. It provides billing insights, so that customers can take control of communications spend via a self-serve portal and offers the option to have reports delivered straight to the client's inbox. We see this opportunity growing further as Three UK continues to grow and propagate our solution to their clients. Second, we are able to secure a new contract with a large retail bank through our subsidiary, IT Authorities.
The WidePoint team also received notification of a new award from a federal bank and is currently under final contract negotiations. Next, I'd like to discuss some additional recent wins, where we've successfully capitalized on cross-sell and upsell opportunities utilizing our combined set of solutions. To begin, as I shared on our last call, we engaged a large sports marketing and multimedia rights holder for some of the most prestigious sports venues across the country earlier this year. Our engagement led to a contract award valued at over $600,000 with a contract period of 12 months. We see this contract continuing to expand as more sport names are added to their list of customers. I look forward to providing you updates on the growth of this customer in our future calls, as well as potentially disclosing the name of this customer as our relationship progresses.
Recently, our sales team was also able to successfully close a mobility management, and an identity and access management deal with one of the country's leading beverage companies. Speaking of beverage companies, I'd like to reiterate the recent press release in which IT Authorities had been working with a leading U.S. beverage bottler on a month-to-month basis for a long time. As a result of IT Authorities' superior service delivery and their ability to offer expanded services through WidePoint, a three-year managed service contract was awarded and is valued at $2.6 million. You also may have seen another press release this past Wednesday where the customer has issued us another contract for managed mobility valued at over $600,000. We see this relationship continuing to flourish, and I look forward to providing you with more good news on this front.
As you can see, we have a healthy mix of existing federal government and commercial enterprise customers, and a multitude of prospective ones in the pipeline that we are looking to close and announce over the coming months. I am very excited for some of these contract wins to come to fruition and look forward to sharing with you all further detail when we are able. We've also continued to move full steam ahead with our indirect sales strategy, which is to team with large entrenched systems integrators, and expand our relationships with both prominent players in the commercial and federal sectors. We have recently signed a partnership agreement with a leading endpoint security company, contract details of which is currently being negotiated. More on this soon. A final comment from me today. I am really excited about our realignment plan.
The talents of our team will be even better focused to realize our strategic goals. I look forward to my expanded responsibilities as chief revenue officer and working with our team to maximize our products and sales opportunities. With that, I will hand the call over to Bob.
Thank you, Jason. Good afternoon, everyone. I'm pleased to share the details of our second quarter 2022 financial results. For the second quarter, our total revenue increased by 16% or $3.1 million to $23.1 million from $20 million reported for the same quarter last year. For the six-month period ended June 30, 2022, total revenues increased 12% or $4.9 million to $45.5 million from $40.6 million for the first six-month period last year. Carrier services revenues increased by five percent or $600,000 to $12.5 million from $11.9 million in the second quarter of last year. This is primarily due to a large federal government customer increasing the number of phone lines we manage by approximately 75%. Otherwise, carrier services remained constant from the same period last year.
For the six months ended June 2022, our carrier services increased by nine percent or $2.2 million to $25.4 million from $23.3 million in the same period in 2021. This is primarily due to carrier credits of approximately $1.7 million reflected in the first half of 2021, but not in the first half of 2022, and the increase in managed phone lines from the federal government customer I just previously mentioned. Our managed services revenues increased by 30% from $8.1 million to $10.6 million in the second quarter of 2022 compared to the same period last year. For the six-month period, managed services increased by 15% from $17.4 million to $20.1 million in the same period last year.
Within managed services, our managed services fees remained relatively constant between this year and last year at $6.7 million in the second quarter of 2022, compared with $6.6 million in 2021. However, decreases in our recycling service volumes and accessory sales of approximately $1.5 million were offset by approximately $1.6 million of managed services revenue from our IT Authorities business, which was not included in the second quarter of 2021. For the six months ended June 2022, our managed services fees decreased by six percent or $900,000 from $14.9 million to $14 million, largely due to lower device recycling and service volumes and accessory sales.
This decrease was offset by approximately $3.2 million of managed service revenue from our ITA business, which was not included in the first half of 2021. In the second quarter of 2022, reselling and other services increased by $2.4 million to $2.9 million from $400,000 in the second quarter of last year. A major driver of the increase was that during the three months ended June 30, 2022, we completed a large resale of Unified Endpoint Management, or UEM, software licenses to a single federal government customer in the amount of $1.7 million. Additionally, the increase was bolstered by approximately $450,000 of reselling revenues to mostly commercial customers from our ITA business, which was not included in our 2021 results.
In the six-month period ended June 30, reselling and other services increased by $3.5 million to $4 million as compared to $500,000 last year. The increase was related to the large resale of UEM software, as I previously mentioned, and approximately $1.1 million of reselling revenues from our ITA business, which was not included in the first half results. Our gross profit for the second quarter of 2022 was $3.3 million, or 14% of revenues, as compared to $3.9 million, or 20% of revenues, in the first quarter of 2021. Gross profit for the six-month period ended June 30, 2022 was approximately $7.2 million, or 16% of revenues, as compared to $8.7 million or 21% of revenues in the first half of 2021.
The lower gross margin is related to market conditions we faced in the first half of the year in our IT Authorities business and to an extent, in other areas of our business as well, namely in three areas. One, increased employee turnover as a result of the so-called Great Resignation and higher employee replacement costs to include recruiting costs and the use of more expensive subcontractors. Two, wage inflation due to the scarcity of highly sought-after resources. And three, customer projects, particularly in the commercial sector, being delayed due to uncertainty in the macroeconomic environment. Although we have taken staffing and other actions to mitigate the headwinds in the first half of the year, there's still some uncertainty related to macroeconomic environment ahead.
In the second quarter of 2022, operating expenses increased to $4.6 million from $4.1 million in the second quarter of last year. For the six months ended June 30, 2022, operating expenses increased 14% to $9.2 million from $8.1 million in the first half of last year. The increase in operating expense was primarily due to the investment in IT Authorities, which added $700 thousand and $1.5 million of operating expenses in the second quarter and the first six months of 2022 respectively. Now regarding the goodwill, non-cash goodwill impairment. In the first half of this year, especially in the second quarter, there was a pronounced deterioration in the macroeconomic conditions that resulted in a significant decline in WidePoint's market capitalization. This significant decline, known under U.S.
GAAP as a triggering event, which is defined as events both inside and outside the company that adversely impact the company, including but not limited to, a contract or a customer loss, new regulations, macroeconomic factors, or in our case, a significant decline in market, company's market value. We did not observe any other factors we consider to be triggering events under GAAP, other than the decline of our enterprise value. Due to this triggering event, we performed an in-depth review of goodwill impairment, and as a result, in the second quarter, we took a non-cash goodwill impairment charge in the amount of $16.3 million. The charge does not affect cash flows, adjusted EBITDA, or our bank.
For the second quarter of 2022, GAAP net loss was $13.8 million or a loss of $1.58 per share, an increase to our $204,000 loss, or two cents per diluted share loss in the second quarter of 2021. For the six months ended June 30, 2022, GAAP net loss was $14.2 million or a loss of $1.62 per diluted share, a decrease from net income of $381,000 or four cents per diluted share in the six-month period in 2021. On a non-GAAP basis, our adjusted EBITDA for the second quarter of 2022 was $6,000 compared to $531,000 in the same period last year.
For the six months ended June 30, 2022, our non-GAAP adjusted EBITDA was $350,000 compared to $1.76 million in the same period last year. Shifting to cash flow in the balance sheet. Our current ratio at the end of June is 1.1 to 1, compared to 1.3 to 1 at December 31, 2021. We exited the quarter with $7.2 million in cash, and with our expanded capacity under our revolving credit facility, we have $7 million of available borrowing capacity. Furthermore, although we have an ATM at our disposal, we have no current plans to execute any orders on the ATM, but we'll be opportunistic if situations are favorable. We believe that our operating cash flows, cash on hand, available credit line, and equity options give us ample liquidity.
This completes my financial summary. For more details of our financial results, please reference our Form 10-Q, which was filed just prior to this call. With that, I'll turn it over back to Jin.
Thank you, Bob, and thank you, Jason. Now, I will provide a brief update on our M&A initiatives as we remain extremely diligent in our plans for profitable growth, not only from an organic standpoint, but also from an inorganic perspective. Our senior leadership has continued to be prudent and meticulous in vetting M&A candidates. In particular, we are keen on companies that have a robust mobility presence. As our goal is to establish a leadership position in the trusted mobility management sector by acquiring additional capabilities. Our team remains heads down and steadfast in ensuring we find the right companies to accelerate our inorganic growth strategy. We will keep you apprised of any new developments on this front.
Longer term, as we engage in more M&A activities, the realigned organizational structure I shared with you at the beginning of my remarks will help us integrate acquired entities more smoothly. The acquired entities operations can be combined with WidePoint's operations based on function rather than operating as a standalone entity. In this way, redundancies can be identified and streamlined quickly, and this model will also increase synergies and improve communication post-merger. This concept in a scaled manner would effectively help us run a more lean and efficient operating process. Given that, we continue to pursue the M&A path. Our company has decided to pause the company stock repurchase program for the time being, as we will want ample liquidity heading into any potential transaction.
Finally, as disclosed in our earnings release, we are confident in our team's ability to reach the previously shared revenue and adjusted EBITDA guidance figures. However, we are guiding towards the lower end of the adjusted EBITDA range provided in our last earnings call. Due to market conditions and company's performance in the first half of 2022, and in response, we have removed redundancies and have realigned our organization based on function as discussed earlier in my remarks, and exited the second quarter on a strong footing in terms of our financial and operational performance. We also see this trend continuing for the second half of this year and beyond. I'm happy to share that our streamlined and realigned organization is working well, and it is already bearing fruits in terms of new contractors, new customers, that Jason spoke of.
I'm also happy to share that our customer purchasing activities are increasing, as exemplified by the recently announced awards to include Three UK, a premier sports marketing and multimedia rights holder, a regional retail bank, a federal bank, two contracts with a leading bottling company and of course, our U.S. Coast Guard award. There are also pending awards that is an additional sign of increased purchasing activities by our prospective customers. We will announce those wins as soon as the ink is dry. Our new role of Chief Revenue Officer has made a real positive impact on our sales pipeline. Our sales pipeline now includes material opportunities that even winning one such opportunity will have a material impact on our managed services revenue in 2022 and beyond. Our long-term outlook is supported by a robust sales pipeline and recent contract awards.
I look forward to announcing that we have closed on these material sales opportunities as they come to fruition in the near future. In conclusion, as we continue to proceed into the second half of 2022, we are on a path of improved operating performance and conditions with significant momentum. We remain laser focused on our plan for profitable growth through organic and inorganic means and are at the brink of several impending milestones. As always, we sincerely appreciate the dedication from our employees and support from our investors and look forward to providing you all with additional updates. With that said, we are ready to take questions from our analysts and major shareholders. Operator, will you please open the call for questions?
Certainly. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality. Once again, if you have any questions or comments, please press star one on your phone. Please hold while we poll for questions. Your first question is coming from Barry Sine from Spartan Capital Securities. Your line is live.
Hey, good afternoon, gentlemen.
Good afternoon, Barry.
First of all, congratulations on all the new contracts, and especially congratulations to Jason for a well deserved promotion. Although, now you're gonna be responsible for making the revenue number. Not sure if congratulations or condolences are in order, but we have faith in you.
We're confident. We have faith in Jason as well.
Um
I appreciate it, Barry. Thank you.
The contracts that you announced, whenever you guys announce the contract, the key question in my mind is always, is this a renewal? Does this just replace revenue that you've already been receiving? For example, was Coast Guard always part of DHS, and that's just a renewal, or is this in addition? A lot of these other ones executed $53.2 million in contract actions. Is that renewals or is that new contracts? I guess IT Authorities, that sounds like a brand-new contract.
Right. A few things. In terms of Three UK, that was an existing customer, but we just recently rolled out a new, you know, digital billing and analytics portal, and then it's going to now open up the portal to, you know, more of their customers. That is a net new win. Premier Sports & Marketing multimedia rights holder, that's a new customer through our IT Authorities acquisition. The regional retail bank is a new award. The federal bank is a new award. Two contracts with leading bottling companies. One is an existing one, and then there was actually two smaller actions that were new. The one that was $600K that was announced that Jason covered in his remarks are new.
Of course, the U.S. Coast Guard was an existing customer, but they renewed for the entire period of performance of the contract, of the CWMS contract. There is annual escalators built into that. That would also represent some net new revenues.
Oh, okay. High-class problem to have so many contracts to keep track of.
Mm-hmm.
Continuing on the topic of contracts, you mentioned that there's a number of whales out there. I think you used the word material sales opportunities. When you use that word, how do you define material?
We define material as, you know, anything that's gonna add 20% or more in terms of our managed services revenue.
Just to clarify that, you have multiple contracts, you know, if each of which, if you won them, would increase managed services by at least 20%?
Yes.
Wow. Okay.
We have multiple.
Um-
We have multiple such opportunities in our sales pipeline.
Okay. Bob, on the goodwill.
Some of them even bigger, Barry.
Okay. I'm waiting for the press releases.
Okay.
Bob, on the goodwill impairment, I appreciated the explanation. I thought you did a good job explaining that. Even I think understand it. Could you walk us through the math? Is that charge primarily a result of using a higher interest rate in the DCF on the goodwill, or is it something else?
It's a combination of a couple factors. One, the delta between the market cap and the DCF, you know, narrowed significantly, you know, when we ran the analysis, so we had a less implied premium, you know, to reconcile to. There's a higher interest rate, and there's less cash flows, not materially less, but there are less cash flows in the out year forecast as well. It's a blend of a higher cost capital, higher interest rate, and slightly less cash flows, but, like, not much on the cash flow side.
Bob, thank you very much. I noticed the queue is out right on time, right on the dot at four o'clock today. Very helpful. Next question, you guys used the term macroeconomic headwinds, and you mentioned that you're seeing them subside. When I first read that, I look at the broader economy, I was wondering what you were talking about. Then in the script, it sounds like what you're talking about. I know a key issue with you has been a handset vendor not being able to ship quantities, and if you couldn't get new handsets, you couldn't fulfill contracts and meet revenue. Am I correct, that's kind of the key macro headwind that's subsiding is availability of handsets?
That is one impact that we had, and that, you know, we have been managing that process. There were some accessory equipment providers that sort of closed their doors, and we don't know if they're gonna open them again, but we were able to find alternative sources. What we were pointing to in terms of macroeconomic headwinds is that a lot of the acquisition portions of the organizations, especially in the commercial side, they have been, you know, hesitant to make new awards. We see that slowly changing as we are seeing, you know, additional awards and various, you know, acquisition parts of the organization starting to reengage with us. We should see more of that.
The other macroeconomic headwinds that we talked about that, Bob covered in his remarks was the increase in staffing costs, that is continuing to increase due to the Great Resignation. It has been, you know, a challenge for us to manage that, but, as I said, that's why we went into the realignment and, we exited the second quarter, you know, on a very solid footing.
Okay. In the release, you also talk about strategic organizational shifts. Could you be a little more specific exactly, you know, what you did? Did you reduce headcount? Did you go to, you know, new software programs? Did you reduce office space? What exactly did you do in that organizational shift?
In terms of the organizational shift, we're going from a more project-based organization to a more function-based organization. That's we're consolidating all of the activities of, you know, sales and marketing and revenue generation under Jason. Then we're, you know, consolidating all of our operating arms under Todd and Ian. As a result of that, we reviewed, you know, various positions that were vacant, and we have not filled those. Some of these things that are costs of staffing has decreased through natural attrition, which we will not refill.
Just to ensure that I understand that correctly, it sounds like previously, project-based, you had multiple, you know, silos with separate sales forces. Now you're going to a single sales force, single other functions, and you can eliminate some overlap that way. Is that fair?
Yep. Barry, this is Jason. That's actually spot on.
Okay. My last question, Jin. You had a section on M&A in the script.
Mm-hmm.
It was long on acronyms and long on adjectives and kinda short on specifics. Do you currently have anything live in the pipeline that you're looking at, you're negotiating with? In the past, on M&A, one of the things you've talked about is you saw plenty of opportunities, but you thought that the prices they wanted were unreasonable from your perspective.
Mm-hmm. Mm-hmm.
You know, with the macroeconomic changes, has that changed? And do you, in fact, have any, you know, live prospects that you're working on now, or is it just, you know, more optimism but no real prospects?
The answer is, you know, multi-part answer because it was a multi-part question.
Okay.
I think the companies that we are evaluating are looking for evaluations that are. We believe that it's, you know, unrealistic. There are companies that are out there that we are considering that, you know, are within what we believe is reasonable. We're continuing down the line. We have, you know, various opportunities that we are chasing, and we are chasing those opportunities that are specifically in the trusted mobility, you know, sector that's going to deepen our capabilities there. You know, I'm hesitant to say anything additional to that because, you know, with these M&A activities, you never know whether things are gonna happen, whether they're not gonna happen, whether we're gonna get to the, you know, the altar, you know, ultimately.
You know, I think we should leave it there. We are heads down, as we said, in our M&A activities, and, you know, we're charging full speed ahead.
Just to follow up on that, in the past, I think you and others have seen competition from private equity buyers who, you know, had been willing to pay, you know, premiums. Are you seeing that type of competition decline a little bit in terms of looking at opportunities, or are they still out there?
I think that, you know, people are because of the macroeconomic headwinds. I think there are less competition out there that we see. But that doesn't mean that, you know, there isn't competition for these folks. We wanna be very careful about, you know, saying, you know, what we're looking at or who we're looking at because we don't wanna have that competition. I don't wanna say too much about it other than, you know, we are seeing some success. We see sort of, you know, bright spots within our M&A activities, and we're gonna continue to, you know, chase after them. As soon as we have something serious to announce, we will put it out there as quickly as we can.
Just to go full circle, we started out my Q&A on new contract wins, tying that into M&A. A number of those contract wins came, you know, via ITA. The revenue synergy that's often mythical when you hear companies announce deals, in your case, is actually, you know, coming to bear. Now that you've done it once, and I assume you're as-
Mm-hmm.
You're very pleased with that, are you a little more confident in looking at acquisitions and projecting synergies?
Yeah. I definitely. I think that there's a lot of, you know, opportunities that we had in terms of upsell and new customers. I think that we feel more confident in that, and those synergies coming to fruition. You know, Jason has, you know, a whole lot more detail on all of the items. You know, Jason, did you want to add additional highlights to that?
Yeah, sure. Barry, the one thing I did wanna say is that with regards to IT Authorities, once we, you know, got past all of the integration tasks, you know, which, you know, took a tad longer, we, you know, as you can tell by what we reported, we are certainly hitting a stride. I mean, you know, the ability to cross-sell and upsell with IT Authorities has been great and, we're, you know, as always, we're cautiously optimistic that this is gonna continue and, they've got a fairly large presence within the current pipeline.
Of course, you know, with all of the future candidates that we're looking at for M&A, I mean, you know, obviously, we would love to be able to have that same type of synergy. You know, we're definitely reviewing a number of CIMs and we'll see where it takes us.
Okay. I'll leave it there. Thank you very much, gentlemen.
Thank you, Barry. Great speaking with you.
Thank you. Once again, ladies and gentlemen, if you have any questions or comments, please press star then one on your phone at this time. At this time, this concludes our Q&A session. If your question was not taken, please contact WidePoint's IR team at WYY@gateway-grp.com. I would now like to turn the call back over to Mr. Jin Kang for his closing remarks.
Thank you, operator. We appreciate everyone taking the time to join us today. As the operator mentioned, if there were any questions we did not address today, please contact our IR team. You can find their full contact information at the bottom of today's earnings release. Thank you again, and have a great evening.
Thank you for joining us today for WidePoint's second quarter 2022 conference call. You may now disconnect.