High Wire Networks Inc. Reports First Quarter 2022 Results
Company Achieves Expected Revenue Milestones
BATAVIA, Ill., May 16, 2022 (GLOBE NEWSWIRE) — High Wire Networks Inc. (the “Company” or “High Wire”) (OTCQB: HWNI), today announced its financial results for Q1 ended March 31, 2022.
Summary:
- Revenue was $12.7 million and increased 82% YOY on a proforma basis
- Net income was approximately $5 million, with non-GAAP operating income approximately break-even
- Three quarters in a row of strong proforma revenue growth YOY: +20%, +40% and +80%
- Overwatch Managed Security paying clients grew 65%
- Overwatch Managed Security revenue increased 44% from Q4 ’21 to Q1 ‘22
For the quarter, High Wire posted $12.7 million in revenue against a pro forma $6.95 million in the first quarter of 2021. Net income was $5 million for the first quarter of 2022 versus a net loss of over $10 million in first quarter of 2021.
Managed Services revenues continue to grow at a rapid clip and we expect to accomplish our next milestone of over 1000 paying end clients by mid-year, rather than end of year. Our average revenue per user continues to grow, and our churn is exceptionally low.
“This quarter’s performance only solidifies the fact we are hitting the expected milestones to achieve both our short-term and long-term strategy laid out over the last 12 months,” said High Wire CEO Mark Porter. “Revenue growth for Q2 and the remainder of this year remains on track, and we expect it will take us to our goal of operational profitability and positive cash flow.”
Porter continued, “We see continued growth in revenue, funnel, and client acquisition in both our technology and managed service segments. With these goals achieved, we have begun the process of restructuring our debt to more favorable terms for the Company, that will allow us to continue our trajectory without the burdensome debt covenants that have been a challenge to navigate.”
About High Wire Networks
For 20 years, High Wire Networks Inc. (OTCQB: HWNI) has been a trusted partner to VARs, MSPs, distributors, integrators, manufacturers and telecom providers by enabling them to minimize overhead while extending delivery capabilities around the world. Our flexible workforce delivers vendor-agnostic technical field, professional and security services in more than 180 countries. Our services include design, installation, configuration and support for unified communications, wired and wireless networks, cabling and infrastructure, and electrical systems. Our Overwatch Managed Security Marketplace enables our partners to deliver comprehensive cybersecurity that’s easy to sell and easy to buy for an affordable subscription. We also offer a variety of on-demand, rapid-response solutions with service levels ranging from two hours to the next business day for onsite break-fix and remote technical support. With High Wire Networks, partners Get Work Done. Learn more at www.highwirenetworks.com.
Forward-Looking Statements:
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.
Investor Relations
www.highwirenetworks.com/investors
investors@highwirenetworks.com
Media Relations
Susanna Song
Vice President of Communications
susanna.song@highwirenetworks.com
