BATAVIA, Ill., April 01, 2025 (GLOBE NEWSWIRE) -- High Wire Networks, Inc. (OTCQB: HWNI), a leading global provider of managed cybersecurity and wholesale telecommunications transport, reported results from continuing operations for the quarter and year ended December 31, 2024. All comparisons are for the same year-ago period unless otherwise noted.
On June 27, 2024, High Wire announced the sale of its technology services business. The following financial results from continuing operations exclude this divested business and provide only the results from the company's continuing managed cybersecurity and technology enablement business. GAAP results for the full year 2024 can be found at www.sec.gov in the company's annual report as filed on Form 10-K.
2024 Financial Highlights
- Implemented a virtualized platform at Secure Voice Corp to enhance gross margin performance and scale revenue-generating capacity, achieving profitability and strong cash flow.
- Achieved sustained year-over-year growth from 2023 to 2024 of 21%, with 2025 on track to continue the upward trajectory.
- Increased Overwatch monthly recurring revenue (MRR) by 134% over the past six months, reflecting strong market demand and value delivery.
- Sold the technology enablement services business to a leading provider of technology infrastructure services in an all-cash deal. The sale allows the company to focus on its managed security solutions line of business.
2024 Managed Cybersecurity Highlights
- Developed streamlined service bundles and simplified pricing models to empower Channel partners, resulting in a robust deal pipeline, a strengthened backlog, and improved partner alignment.
- Expanded vendor partnerships to consolidate cost structures and deliver more competitive pricing to the Channel.
- Continued strategic investments in the Channel ecosystem to unlock untapped market segments and create a sustainable competitive edge for both partners and their customers.
2024 Operational Highlights
- In Q3, Overwatch executed a strategic leadership transformation, appointing Ed Vasko, CISSP, as Chief Executive Officer (30+ years in cybersecurity), Mark Dallmeier as Chief Revenue Officer (27 years in revenue growth strategy), Michael Lieder as Senior Director of Service Delivery (10+ years in operational leadership), and Kim Jones, CISM CISSP, as Chief Information Security Officer (38 years in cybersecurity and risk management).
- Revitalized the sales leadership team and sales motion under new executive guidance to align with enterprise-level growth objectives. Redefined the sales and marketing strategies, rebuilt the team, and repositioned the brand to focus on upmarket opportunities and larger, high-value deals.
- Redesigned the Service Delivery architecture to streamline operations and lay the foundation for the organization-wide hyperautomation initiative planned for 2025.
- Launched a new portfolio of professional services to provide added value for partners and their customers, enhancing both revenue potential and customer success.
2024 Awards
- Frost & Sullivan ranked High Wire Networks as one of the Top 12 Managed Security Service Providers (MSSPs) in the categories of growth and innovation. The report noted that High Wire is a relatively new market entrant but is growing incredibly fast thanks to its partner-focused strategy, flexibility, and portfolio underpinned by open XDR.
- Named to CRN MSP 500 list of Nation's Top IT Managed Service Providers, which recognizes leading MSPs "whose forward-thinking approach to providing managed services is changing the landscape of the IT channel."
- Added to CRN 2024 Women of the Channel list, which honors the most "influential women in leadership at some of the country's most prominent IT integrators, managed service providers, and value-added resellers for their channel advocacy and dedication to helping their customers and technology partners thrive."
Management Commentary
"2024 was a pivotal year for High Wire Networks. The divestiture of our technology enablement services business was a critical strategic move. While we successfully returned that segment to profitability for the first time since COVID-19 severely impacted its revenues, it consumed disproportionate management time and resources and was not cash-efficient. The project-based nature of the business created unpredictable revenue cycles and made it difficult to maintain resource productivity," stated High Wire Networks CEO Mark Porter.
"By completing the transaction, we significantly reduced our liabilities, positioning the company for our planned move to a National Exchange. With our Net Shareholder Equity now within striking distance, we are well on our way to achieving that milestone. As reflected in our public filings, this remains a major strategic priority, and one that we believe will be a key driver of future success and long-term shareholder value."
"We also rebuilt the Overwatch leadership team from the ground up, assembling what we believe is the strongest cybersecurity leadership team in the country. Their predecessors laid a solid foundation by guiding the business through its startup phase and getting it ready to scale. Now, with proven leaders in place, we're poised to drive substantial organic growth and aggressively pursue acquisitions of other managed security revenue streams.
Thanks to our early investments in AI-driven automation, we can scale revenues without significant increases in headcount. That's a powerful advantage-it will enable us to reach profitability organically while accelerating margin expansion as we grow through acquisition."
Porter added, "Secure Voice Corp had an outstanding year and is well-positioned for even greater success in 2025. We expect to see continued improvements in gross margins, which will drive stronger operating income and increased free cash flow from that business unit."
"We are moving forward with a relentless pursuit of increasing gross profit and managing costs through AI-driven automation capabilities, creating an unfair advantage for our partners and their clients," Porter concluded.
Full Year 2024 Financial Summary (based on results from Continuing Operations)
Revenue in 2024 totaled $8.4 million, up 21% from $6.9 million in 2023. The increase was primarily due to a substantial increase in revenues from the company's Overwatch managed cybersecurity recurring revenue.
Total operating expenses decreased to $16.9 million (which included non-cash expenses of $0.8 million in depreciation and amortization, $1.2 million in goodwill impairment charges and $0.8 million of stock-based compensation as well as additional one-time expenses of $1.0 million), compared to $18.8 million in 2023. The decrease was due to a reduction in goodwill and intangible impairment charges from 2023, as well as cost optimization opportunities, following the Company's ability to focus its efforts solely on the cybersecurity segment.
Net income for 2024 totaled $0.4 million, which included $9.7 million in net income from discontinued operations, compared to a net loss of $14.5 million in 2023.
About High Wire Networks
High Wire Networks, Inc. (OTCQB: HWNI) is a fast-growing, award-winning global provider of managed cybersecurity. Through more than 200 channel partners, it delivers trusted managed services for nearly 1,100 managed security customers. Its end customers include hundreds of Fortune 500 companies and the nation's largest government agencies.
The company's Overwatch by High Wire Networks platform offers a range of subscription services for threat prevention, detection, and response, meeting the security and compliance requirements of organizations large and small. The company's IT enablement services provide the foundation for growing its higher-margin Overwatch business.
High Wire was recently ranked by Frost & Sullivan as a Top 12 Managed Security Service Provider in the Americas. It was also recently named to CRN's MSP 500 and Elite 150 lists of the nation's top IT-managed service providers.
Learn more at HighWireNetworks.com. Follow the company on Twitter, 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.
Company Contact
Mark Porter, CEO
High Wire Networks
Tel +1 (952) 974-4000
Media Relations
Lori Aleman
Director of Marketing
High Wire Networks
Tel +1 (952) 974-4000
Investor Relations
Ronald Both or Grant Stude
CMA Investor Relations
Tel +1 (949) 432-7557
