Spok Reports Third Quarter 2024 Results
Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the third quarter ended September 30, 2024. In addition, the Company’s Board of Director...
Strong Q3 Software Operations Bookings Up Both Sequentially and Year-Over-Year
Software Backlog Up More Than 19% From Prior Year Quarter
PLANO, Texas: Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the third quarter ended September 30, 2024. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on December 9, 2024, to stockholders of record on November 18, 2024.
Recent Highlights:
- Software operations bookings totaled $10.4 million in the third quarter, up 64.4% from the third quarter of 2023, and representing the highest third quarter total in the past six years
- Third quarter software operations bookings included 24 six-figure customer contracts, double the amount generated in the prior year quarter
- Software backlog totaled $63.6 million at September 30, 2024, up more than 19% from the prior year quarter
- Third quarter 2024 Wireless average revenue per unit (ARPU) was $7.95, up nearly 5% on a year-over-year basis
- Capital returned to stockholders in the third quarter of 2024 totaled $6.3 million
- Cash and cash equivalents increased by nearly $4.0 million in the third quarter, totaling $27.8 million at September 30, 2024
- Research and development costs totaled $9.0 million in the first nine months of 2024, supporting Spok's investment in the Company's industry-leading solutions to fuel future growth
"I am proud of the performance that our team was able to deliver in the third quarter as we continue to serve our customers at a high level and position Spok for strong growth in the fourth quarter and 2025," said Vincent D. Kelly, chief executive officer. "We continue to achieve our goal to consistently generate cash flow in order to return capital to our loyal stockholders over the long term. I am particularly pleased with our performance in generating both sequential and year-over-year growth in software operations bookings."
"I believe Spok is doing an excellent job of balancing the necessary investments in our products and infrastructure in order to fuel future growth, while continuing to return capital to our stockholders," continued Kelly. "Through the first nine months of this year, Spok has generated more than $11.3 million of net income and over $22.1 million of adjusted EBITDA. More importantly, adjusted EBITDA in the third quarter was more than enough to cover our quarterly dividend payment, as well as our capital expenditure requirements. This also resulted in a nearly $4.0 million increase in our cash and cash equivalents balance, which we believe will continue to build through the remainder of the year.
"We were very pleased with our performance in the third quarter and believe that our results in the first nine months of the year provide a solid foundation for the remainder of 2024. As a result, we are reiterating the guidance ranges for revenue and adjusted EBITDA that we had previously outlined," concluded Kelly.
Financial Highlights:
| For the three months ended September 30, |
| For the nine months ended September 30, | ||||||||||||||
(Dollars in thousands) | 2024 |
| 2023 |
| Change (%) |
| 2024 |
| 2023 |
| Change (%) | ||||||
Revenue |
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Wireless revenue |
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Paging revenue | $ | 17,605 |
| $ | 18,119 |
| (2.8 | )% |
| $ | 53,208 |
| $ | 54,915 |
| (3.1 | )% |
Product and other revenue |
| 656 |
|
| 853 |
| (23.1 | )% |
|
| 1,945 |
|
| 1,962 |
| (0.9 | )% |
Total wireless revenue | $ | 18,261 |
| $ | 18,972 |
| (3.7 | )% |
| $ | 55,153 |
| $ | 56,877 |
| (3.0 | )% |
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Software revenue |
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License | $ | 2,042 |
| $ | 2,413 |
| (15.4 | )% |
| $ | 6,365 |
| $ | 7,723 |
| (17.6 | )% |
Professional services |
| 4,835 |
|
| 3,833 |
| 26.1 | % |
|
| 13,146 |
|
| 10,909 |
| 20.5 | % |
Hardware |
| 395 |
|
| 798 |
| (50.5 | )% |
|
| 1,113 |
|
| 2,088 |
| (46.7 | )% |
Maintenance |
| 9,337 |
|
| 9,412 |
| (0.8 | )% |
|
| 27,984 |
|
| 27,475 |
| 1.9 | % |
Total software revenue | $ | 16,609 |
| $ | 16,456 |
| 0.9 | % |
| $ | 48,608 |
| $ | 48,195 |
| 0.9 | % |
Total revenue | $ | 34,870 |
| $ | 35,428 |
| (1.6 | )% |
| $ | 103,761 |
| $ | 105,072 |
| (1.2 | )% |
| For the three months ended September 30, |
| For the nine months ended September 30, | ||||||||||||||
(Dollars in thousands) | 2024 |
| 2023 |
| Change (%) |
| 2024 |
| 2023 |
| Change (%) | ||||||
GAAP |
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Operating expenses | $ | 29,909 |
| $ | 29,215 |
| 2.4 | % |
| $ | 89,434 |
| $ | 87,926 |
| 1.7 | % |
Net income | $ | 3,660 |
| $ | 4,451 |
| (17.8 | )% |
| $ | 11,321 |
| $ | 12,301 |
| (8.0 | )% |
Cash and cash equivalents (as of period end) | $ | 27,830 |
| $ | 27,301 |
| 1.9 | % |
| $ | 27,830 |
| $ | 27,301 |
| 1.9 | % |
Capital returned to stockholders | $ | 6,330 |
| $ | 6,241 |
| 1.4 | % |
| $ | 20,045 |
| $ | 19,404 |
| 3.3 | % |
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Non-GAAP |
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Adjusted operating expenses | $ | 28,509 |
| $ | 27,871 |
| 2.3 | % |
| $ | 85,123 |
| $ | 83,963 |
| 1.4 | % |
Adjusted EBITDA | $ | 7,534 |
| $ | 8,422 |
| (10.5 | )% |
| $ | 22,118 |
| $ | 23,833 |
| (7.2 | )% |
| For the three months ended September 30, |
| For the nine months ended September 30, | ||||||||||||||
(Dollars in thousands, excluding units in service and ARPU) | 2024 |
| 2023 |
| Change (%) |
| 2024 |
| 2023 |
| Change (%) | ||||||
Key Statistics |
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Wireless units in service (000's) |
| 730 |
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| 785 |
| (7.0 | )% |
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| 730 |
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| 785 |
| (7.0 | )% |
Wireless average revenue per unit (ARPU) | $ | 7.95 |
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