WidePoint Corp. (NYSE MKT:WYY) Q1 2020 Earnings Conference Call - Final Transcript
May 14, 2020 • 04:30 pm ET
Good afternoon. Welcome to WidePoint's First Quarter 2020 Earnings Conference Call. My name is Christy, and I will be your operator for today's call. Joining us today's presentation is WidePoint's President and CEO, Jin Kang; Executive Vice President and Chief Sales and Marketing Officer, Jason Holloway; and Executive Vice President and CFO, Kellie Kim.
Following their 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 would like additional information, please contact WidePoint's Investor Relations team at email@example.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-K filed with the Securities and Exchange Commission. Finally, I would 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 would like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang. Sir, please proceed.
Jin H. Kang
Thank you, operator, and good afternoon to everyone. Thank you for joining us today to review our financial results for the first quarter ended March 31, 2020. I first want to recognize all who are suffering hardships or loss as we deal with the COVID-19 pandemic as well as recognize our first responders, our healthcare workers and so many others who are on the front line battling this crisis. I want to thank our dedicated staff that have been working through the adverse conditions to continue to deliver for our customers.
Now during our last call, we spent a good deal of time outlining why we were optimistic about our ability to build upon our momentum from last year despite the enormity of the changes to the economy, to the workplace and to all of our personal lives caused by the global pandemic. I'm very pleased to report today that our optimism has been corroborated. In fact, the first quarter of 2020 in many ways exceeded our expectations. During Q1, our revenues increased by 81% year-over-year to a record $39.7 million, which is substantially above the guidance we provided on our last call of $26 million to $31 million.
It's worth noting that the record revenues were driven predominantly by carrier services, which nearly doubled from $14.3 million in the first quarter of last year to $28.3 million this year. This increase was mainly a result of our ongoing work alongside the US Department of Commerce to support the 2020 census, which we will discuss in a moment. As a reminder, carrier services are extremely low-margin revenues. They help our top line, but they do depress our margin profile.