High Wire Reports Record Q3 2024 Results, Driven by Growth in Overwatch Managed Cybersecurity Business
High Wire Networks (OTCQB: HWNI) reported record Q3 2024 results with revenue increasing 4% to $2.1 million, driven by growth in its Overwatch managed cybersecurity business. Q3 Overwatch revenue grew 9% to $1.0 million. Operating expenses decreased 21% to $3.6 million, while net loss improved 56% to $1.7 million. The company completed strategic realignment, divesting its IT enablement services to focus on cybersecurity. Total liabilities decreased by $5.9 million to $7.6 million, and interest expense dropped 96% to $50,000. Management expects accelerating growth and significant profitability by second half of 2025.
High Wire Networks (OTCQB: HWNI) ha riportato risultati record per il terzo trimestre del 2024, con un fatturato cresciuto del 4% a 2,1 milioni di dollari, grazie alla crescita del suo business di cybersecurity gestito, Overwatch. I ricavi di Overwatch nel terzo trimestre sono aumentati del 9% a 1,0 milione di dollari. Le spese operative sono diminuite del 21% a 3,6 milioni di dollari, mentre la perdita netta è migliorata del 56%, attestandosi a 1,7 milioni di dollari. L'azienda ha completato un riallineamento strategico, disinvestendo i suoi servizi di abilitazione IT per concentrarsi sulla cybersecurity. Le passività totali sono diminuite di 5,9 milioni di dollari, portandosi a 7,6 milioni di dollari, e le spese per interessi sono scese del 96% a 50.000 dollari. La direzione si aspetta una crescita accelerata e una significativa redditività entro la seconda metà del 2025.
High Wire Networks (OTCQB: HWNI) reportó resultados récord para el tercer trimestre de 2024, con ingresos que aumentaron un 4% a 2,1 millones de dólares, impulsados por el crecimiento de su negocio de ciberseguridad gestionado, Overwatch. Los ingresos de Overwatch en el tercer trimestre crecieron un 9% a 1,0 millón de dólares. Los gastos operativos disminuyeron un 21% a 3,6 millones de dólares, mientras que la pérdida neta mejoró un 56%, alcanzando 1,7 millones de dólares. La empresa completó una reestructuración estratégica, desinvirtiendo sus servicios de habilitación de TI para centrarse en la ciberseguridad. Las obligaciones totales disminuyeron en 5,9 millones de dólares, quedando en 7,6 millones de dólares, y los gastos por intereses cayeron un 96% a 50.000 dólares. La dirección espera un crecimiento acelerado y una rentabilidad significativa para la segunda mitad de 2025.
하이 와이어 네트웍스 (OTCQB: HWNI)는 2024년 3분기 기록적인 실적을 발표했습니다. 매출은 4% 증가하여 210만 달러에 이르며, 이는 Overwatch 관리 사이버 보안 사업의 성장에 힘입은 것입니다. 3분기 Overwatch 매출은 9% 증가하여 100만 달러에 도달했습니다. 운영 비용은 21% 감소하여 360만 달러가 되었고, 순손실은 56% 개선되어 170만 달러가 되었습니다. 회사는 IT 지원 서비스를 매각하고 사이버 보안에 집중하기 위해 전략적 재편성을 완료했습니다. 총 부채는 590만 달러 감소하여 760만 달러가 되었고, 이자 비용은 96% 감소해 50,000 달러가 되었습니다. 경영진은 2025년 하반기까지 가속화된 성장과 상당한 수익성을 기대하고 있습니다.
High Wire Networks (OTCQB: HWNI) a annoncé des résultats records pour le troisième trimestre 2024, avec des revenus en hausse de 4% à 2,1 millions de dollars, grâce à la croissance de son entreprise de cybersécurité gérée, Overwatch. Les revenus d'Overwatch pour le troisième trimestre ont augmenté de 9% à 1,0 million de dollars. Les dépenses opérationnelles ont diminué de 21% à 3,6 millions de dollars, tandis que la perte nette s'est améliorée de 56% pour atteindre 1,7 million de dollars. L'entreprise a finalisé un réalignement stratégique, cédant ses services d'habilitation IT pour se concentrer sur la cybersécurité. Les passifs totaux ont diminué de 5,9 millions de dollars pour s'établir à 7,6 millions de dollars, et les charges d'intérêt ont chuté de 96% à 50 000 dollars. La direction s'attend à une croissance accélérée et à une rentabilité significative d'ici la seconde moitié de 2025.
High Wire Networks (OTCQB: HWNI) berichtete von Rekordergebnissen im dritten Quartal 2024, mit einem Umsatzanstieg von 4% auf 2,1 Millionen Dollar, angetrieben durch das Wachstum im Bereich Managed Cybersecurity, Overwatch. Im dritten Quartal stieg der Umsatz von Overwatch um 9% auf 1,0 Millionen Dollar. Die Betriebskosten sanken um 21% auf 3,6 Millionen Dollar, während sich der Nettoverlust um 56% auf 1,7 Millionen Dollar verbesserte. Das Unternehmen hat eine strategische Neuausrichtung abgeschlossen und seine IT-Ermöglichungsdienste veräußert, um sich auf Cybersecurity zu konzentrieren. Die Gesamtverbindlichkeiten sanken um 5,9 Millionen Dollar auf 7,6 Millionen Dollar, und die Zinsaufwendungen fielen um 96% auf 50.000 Dollar. Das Management erwartet ein beschleunigtes Wachstum und signifikante Rentabilität bis zur zweiten Hälfte von 2025.
- Record Q3 revenue of $2.1 million, up 4% year-over-year
- Overwatch revenue increased 9% to $1.0 million
- Operating expenses reduced by 21% to $3.6 million
- Net loss improved 56% to $1.7 million
- Total liabilities decreased by $5.9 million
- Interest expense reduced by 96% to $50,000
- Gross profit margin improved to 33.1% from 32.6%
- Continuing operations still showing net loss of $1.7 million in Q3
- Monthly recurring revenue of only $0.4 million
- Operating expenses still high at $3.6 million relative to revenue
BATAVIA, Ill., Nov. 22, 2024 (GLOBE NEWSWIRE) -- High Wire Networks, Inc. (OTCQB: HWNI), a leading global provider of managed cybersecurity, reported results for continuing operations for the three months and nine months ended September 30, 2024. All comparisons are to the same year-ago period unless otherwise noted.
The following results are from continuing operations following the divesture of the company’s technology enablement services business on June 27, 2024. The company’s current business segments include Overwatch managed cybersecurity services and SVC telecom services.
Q3 2024 Operational Highlights
- Awarded an expanded annual contract renewal to deliver enhanced managed cybersecurity at more than a dozen luxury car dealerships across the West Coast and Midwest U.S. The renewal increases the anticipated annual revenue by fivefold over the previous year.
- Recognized as top cybersecurity leader in Frost & Sullivan’s managed security services report, Frost Radar™: Managed Security Services in Americas, 2024.
- Appointed veteran cybersecurity thought leader and executive, Edward Vasko, CISSP, as High Wire’s chief operations officer and chief executive officer of the Overwatch managed cybersecurity services division. Vasko brings to High Wire more than 33 years of experience and accomplishment in the cybersecurity industry, including business formation and product development, and leading strategic M&As and major exits.
- Appointed Mark Dallmeier to the new position of chief revenue officer of Overwatch. Dallmeier brings to Overwatch 27 years of accomplishment in taking technology and managed services companies into ‘hypergrowth.’
- Appointed Michael Lieder as senior director of Overwatch Service Delivery and Products.
Financial Highlights
- Revenue from continuing operations in the third quarter of 2024 increased
4% to a record$2.1 million , with revenue for the first nine months up8% to a record$6.1 million . The increases were primarily due to growth in the company’s Overwatch managed cybersecurity business. - Q3 2024 revenue from Overwatch increased
9% to$1.0 million . - Operating income for SVC was
$103,000 , up600% from the second quarter of 2024, with operating income for the first nine months up34% to$252,000. - Operating expenses decreased
21% to$3.6 million , as compared to$4.6 million in the same year-ago quarter, as the result of the company’s strategic realignment initiative. - Net loss from continuing operations in the third quarter totaled
$1.7 million or$(0.01) per diluted share, a56% improvement from a net loss of$3.8 million or$(0.01) per diluted share in the same year-ago quarter. - Total liabilities for the third quarter of 2024 decreased
$5.9 million to$7.6 million at quarter end from$13.6 million at the end of the same year-ago quarter. - Interest expense decreased
$1.1 million or96% to$50,000 in the third quarter of 2024.
Management Commentary
“In Q3, we saw continued revenue growth from our Overwatch managed cybersecurity and telecom businesses as we began to realize the benefits of the strategic realignment we initiated in the second quarter,” stated High Wire CEO, Mark Porter. “This realignment included the divestiture of our IT enablement services business so we could focus on the greater and more rewarding opportunities in managed cybersecurity.
“The strong momentum we’ve experienced with our current business in Q3, including higher average monthly recurring revenue from new and expanded engagements, validates this transition. It also reinforces our strategy of targeting larger channel partners and enterprise-level opportunities in the cybersecurity space.
“Our Overwatch growth in the quarter is perhaps even more impressive when considering the distraction of the IT divestiture and our transition to focus on Overwatch. Our sharper focus on Overwatch resulted in the full realignment of our Overwatch management team with certain departures and key news hires designed to better prepare us for the accelerating growth we see ahead.
“The new appointments included Ed Vasko as our new Overwatch CEO, Mark Dallmeier as chief revenue officer, and Michael Lieder as senior director of Overwatch’s service delivery and products. Together, they have refined our go-to-market strategy around larger partners, paving the way for strong growth ahead.
“During the quarter we also implemented efficiencies that decreased our operating expenses by
“Altogether, these efforts have resulted in the largest pipeline of large deals in our company’s history, with several in the final closing stages and supporting our path to profitability. Combined with now a much cleaner capital structure, we are well positioned for an uplisting to a major exchange — especially how the capital markets are looking the best they’ve been in many months. Capable players have expressed strong interest and confidence in helping us with such an endeavor.
“Last month, we were honored to be recognized for the fourth consecutive year by MSSP Alert as a Top 100 provider in the managed security service space. This achievement reflects our team's dedication to delivering cutting-edge solutions through our Overwatch ecosystem, including managed XDR and advanced edge protection. We believe these solutions meet the evolving needs of our partners and customers like none other on the market today.
“Looking ahead, we remain confident in our ability to capitalize on the new foundation we’ve established. Our diversified service offerings in secure voice, combined with enhanced compliance and quality, are attracting new customers and unlocking additional revenue streams.
“As we progress through the final quarter of the year and into 2025, we expect accelerating growth with this supporting significant profitability by the second half of the new year. This positive outlook, coupled with the strengthening macroeconomic sentiment among our partners, positions us well for executing our managed cybersecurity strategy and delivering greater shareholder value.”
Q3 2024 Financial Summary
Revenue in the third quarter of 2024 totaled
Gross profit totaled
Total operating expenses decreased
Net loss from continuing operations in the third quarter of 2024 totaled
Net loss attributable to High Wire Networks common shareholders in the third quarter of 2024 totaled
First Nine Months of 2024 Financial Summary
Revenue in the first nine months of 2024 totaled
Gross profit totaled
Total operating expenses decreased
Net loss from continuing operations in the first nine months of 2024 totaled
Net income attributable to High Wire Networks common shareholders in the first nine months of 2024 totaled
About High Wire Networks
High Wire Networks, Inc. (OTCQB: HWNI) is a fast-growing, award-winning global provider of managed cybersecurity. Through over 200 channel partners, it delivers trusted managed services for more than 1,100 managed security customers worldwide. End-customers include Fortune 500 companies and many of the nation’s largest government agencies. Its U.S. based 24/7 Network Operations Center and Security Operations Center is located in Chicago, Illinois.
High Wire was ranked by Frost & Sullivan as a Top 15 Managed Security Service Provider in the Americas for 2024. It was also named to CRN’s MSP 500 and Elite 150 lists of the nation’s top IT managed service providers for 2023 and 2024.
Learn more at HighWireNetworks.com. Follow the company on X, view its extensive video series on YouTube or connect on LinkedIn.
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.
High Wire Contact
Mark Porter
Chief Executive Officer
High Wire Networks
Tel +1 (952) 974-4000
Email contact
Investor & Media Relations:
Ronald Both or Grant Stude
CMA Investor & Media Relations
Tel +1 (949) 432-7557
Email contact
| High Wire Networks, Inc. Condensed consolidated statements of operations (Unaudited) | ||||||||||||||||
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 2,051,672 | $ | 1,974,464 | $ | 6,050,793 | $ | 5,623,104 | ||||||||
| Operating expenses: | ||||||||||||||||
| Cost of revenue | 1,372,998 | 1,330,426 | 3,641,460 | 3,957,640 | ||||||||||||
| Depreciation and amortization | 186,422 | 198,208 | 608,283 | 614,098 | ||||||||||||
| Salaries and wages | 1,043,209 | 1,854,917 | 4,394,912 | 3,743,614 | ||||||||||||
| General and administrative | 1,019,153 | 1,204,488 | 3,507,287 | 4,700,827 | ||||||||||||
| Total operating expenses | 3,621,782 | 4,588,039 | 12,151,942 | 13,016,179 | ||||||||||||
| Loss from operations | (1,570,110 | ) | (2,613,575 | ) | (6,101,149 | ) | (7,393,075 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (50,195 | ) | (1,117,606 | ) | (1,037,268 | ) | (1,705,659 | ) | ||||||||
| Amortization of debt discounts | (66,907 | ) | (86,736 | ) | (923,717 | ) | (924,128 | ) | ||||||||
| Gain on change in fair value of warrant liabilities | 4,880 | - | 234,673 | - | ||||||||||||
| Gain (loss) on settlement of debt | 69,038 | - | (398,022 | ) | - | |||||||||||
| Exchange loss | (7,145 | ) | 1,852 | (35,007 | ) | (6,177 | ) | |||||||||
| Warrant expense | - | - | (233,877 | ) | - | |||||||||||
| Gain on extinguishment of warrant liabilities | - | - | 921,422 | - | ||||||||||||
| Penalty fee | - | - | (100,000 | ) | - | |||||||||||
| Liquidated damages related to escrow shares | - | - | - | (1,222,000 | ) | |||||||||||
| Gain on change in fair value of derivative liabilities | - | - | - | 3,140,404 | ||||||||||||
| Gain on extinguishment of derivatives | - | - | - | 1,692,232 | ||||||||||||
| Other (expense) income | (50,000 | ) | - | (50,000 | ) | 37,500 | ||||||||||
| Total other (expense) income | (100,329 | ) | (1,202,490 | ) | (1,621,796 | ) | 1,012,172 | |||||||||
| Net loss from continuing operations before income taxes | (1,670,439 | ) | (3,816,065 | ) | (7,722,945 | ) | (6,380,903 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss from continuing operations | (1,670,439 | ) | (3,816,065 | ) | (7,722,945 | ) | (6,380,903 | ) | ||||||||
| Net income (loss) from discontinued operations, net of tax | - | 265,416 | 9,737,003 | (1,143,432 | ) | |||||||||||
| Net (loss) income attributable to High Wire Networks, Inc. common shareholders | $ | (1,670,439 | ) | $ | (3,550,649 | ) | $ | 2,014,058 | $ | (7,524,335 | ) | |||||
| Income (loss) per share attributable to High Wire Networks, Inc. common shareholders, basic: | ||||||||||||||||
| Net loss from continuing operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
| Net income (loss) from discontinued operations, net of taxes | $ | - | $ | - | $ | 0.04 | $ | (0.01 | ) | |||||||
| Net income (loss) per share | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.01 | $ | (0.03 | ) | |||||
| Income (loss) per share attributable to High Wire Networks, Inc. common shareholders, diluted: | ||||||||||||||||
| Net loss from continuing operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.02 | ) | ||||
| Net income (loss) from discontinued operations, net of taxes | $ | - | $ | - | $ | 0.04 | $ | (0.01 | ) | |||||||
| Net income (loss) per share | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.01 | $ | (0.03 | ) | |||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 240,912,395 | 237,860,605 | 240,691,342 | 222,693,501 | ||||||||||||
| Diluted | 240,912,395 | 237,860,605 | 268,062,471 | 222,693,501 | ||||||||||||
| High Wire Networks, Inc. Condensed consolidated balance sheets | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 140,682 | $ | 328,282 | ||||
| Accounts receivable, net of allowances of unbilled revenue of | 1,372,921 | 670,388 | ||||||
| Prepaid expenses and other current assets | 387,433 | 117,030 | ||||||
| Current assets of discontinued operations | - | 1,629,011 | ||||||
| Total current assets | 1,901,036 | 2,744,711 | ||||||
| Property and equipment, net of accumulated depreciation of | 849,282 | 1,026,293 | ||||||
| Goodwill | 1,812,818 | 3,162,499 | ||||||
| Intangible assets, net of accumulated amortization of respectively | 3,080,350 | 3,620,256 | ||||||
| Operating lease right-of-use assets | 200,716 | 277,995 | ||||||
| Total assets | $ | 7,844,202 | $ | 10,831,754 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | 4,106,312 | 5,189,996 | ||||||
| Contract liabilities | 230,020 | 80,819 | ||||||
| Current portion of loans payable to related parties, net of debt discount of | 116,556 | 254,032 | ||||||
| Current portion of loans payable, net of debt discount of respectively | 1,272,734 | 2,995,803 | ||||||
| Current portion of convertible debentures, net of debt discount of | 644,844 | 326,005 | ||||||
| Factor financing | - | 1,361,656 | ||||||
| Warrant liabilities | 117,120 | 833,615 | ||||||
| Operating lease liabilities, current portion | 108,145 | 89,318 | ||||||
| Current liabilities of discontinued operations | 505,782 | 1,529,286 | ||||||
| Total current liabilities | 7,101,513 | 12,660,530 | ||||||
| Long-term liabilities: | ||||||||
| Loans payable to related parties, net of current portion, net of debt discount of and | 241,718 | 44,703 | ||||||
| Loans payable, net of current portion | 48,833 | - | ||||||
| Convertible debentures, net of current portion, net of debt discount of | - | 685,161 | ||||||
| Operating lease liabilities, net of current portion | 98,133 | 190,989 | ||||||
| Total long-term liabilities | 388,684 | 920,853 | ||||||
| Total liabilities | 7,490,197 | 13,581,383 | ||||||
| Commitments and contingencies | ||||||||
| Series B preferred stock; and outstanding as of September 30, 2024 and December 31, 2023 | - | - | ||||||
| Total mezzanine equity | - | - | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Common stock; and 239,876,900 issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 2,416 | 2,399 | ||||||
| Series D preferred stock; and outstanding as of September 30, 2024 and December 31, 2023 | 7,745,643 | 7,745,643 | ||||||
| Series E preferred stock; and outstanding as of September 30, 2024 and December 31, 2023 | 4,869,434 | 4,869,434 | ||||||
| Additional paid-in capital | 32,267,924 | 31,178,365 | ||||||
| Accumulated deficit | (44,531,412 | ) | (46,545,470 | ) | ||||
| Total stockholders’ equity (deficit) | 354,005 | (2,749,629 | ) | |||||
| Total liabilities and stockholders’ equity (deficit) | $ | 7,844,202 | $ | 10,831,754 | ||||
FAQ
What was High Wire Networks (HWNI) revenue in Q3 2024?
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