Spok Reports 2021 First Quarter Results

Rhea-AI Summary

Spok Holdings (NASDAQ: SPOK) reported Q1 2021 results, showing consolidated revenue of $36.0 million, down from $37.3 million in Q1 2020. Software revenue remained stable at $15.9 million, with bookings totaling $14.6 million. The company declared a quarterly dividend of $0.125 per share, payable on June 24, 2021. Operating expenses decreased by over 7% to $37.8 million. The cash balance was $71.6 million, down from $78.7 million at year-end 2020, while the average revenue per unit (ARPU) saw a slight increase to $7.34.

Positive

• Software revenue stable at $15.9 million.
• Operating expenses reduced by over 7% to $37.8 million.
• Quarterly dividend of $0.125 declared.

Negative

• Consolidated revenue decreased from $37.3 million to $36.0 million.
• Total cash balance decreased from $78.7 million to $71.6 million.

Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the first quarter ended March 31, 2021. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on June 24, 2021, to stockholders of record on May 25, 2021.

Key First Quarter 2021 Operating Highlights:

• First quarter 2021 software revenue of $15.9 million included $9.4 million of maintenance revenue and $6.5 million of operations revenue. This was consistent with first quarter 2020 software revenue of $15.9 million, which included $9.7 million of maintenance revenue and $6.2 million of operations revenue.
• Software bookings in the first quarter of 2021 totaled $14.6 million, compared to $15.6 million in the prior year quarter. First quarter software bookings included Spok Go® deals with an aggregate total contract value of approximately $0.7 million. First quarter software bookings also included $5.9 million of legacy operations bookings and $8.0 million of maintenance renewals. As of March 31, 2021, the software revenue backlog totaled $48.8 million, compared to the backlog of $49.1 million at March 31, 2020.
• The quarterly rate of paging unit erosion was 1.2% in the first quarter of 2021, compared to paging unit erosion of 1.3% in the first quarter of 2020. Gross disconnects were down on a year-over-year basis.
• Total paging ARPU (average revenue per unit) in the first quarter of 2021 totaled $7.34, up from ARPU of $7.31 in the first quarter of 2020, primarily due to the recovery of Telecommunications Service Charges (TRS) that began in early 2021, and general increases of Universal Service Fees (USF). USF and TRS fees are effectively pass-through items that have corresponding costs associated with them. Excluding these pass-through items, ARPU would have declined in-line with historical trends.
• Operating expenses in the first quarter of 2021 totaled $37.8 million, down from $41.4 million in the first quarter of 2020. Adjusted operating expenses (which excludes depreciation, amortization and accretion charges, and includes capitalized software development costs) totaled $38.0 million in the first quarter of 2021, down more than 7% from adjusted operating expenses of $40.9 million in the first quarter of 2020.
• Capital expenses were $0.7 million in the first quarter of 2021, compared to $1.0 million in the first quarter of 2020.
• The number of full-time equivalent employees as of March 31, 2021 totaled 603, compared to 620 at March 31, 2020.
• Capital paid to stockholders in the first quarter of 2021 aggregated $2.7 million. This came in the form of the Company's regular quarterly dividend.
• The Company’s cash, cash equivalents and short-term investments balance as of March 31, 2021, was $71.6 million, compared to $78.7 million at December 31, 2020.

2021 First Quarter Results:

Consolidated revenue for the first quarter of 2021 under Generally Accepted Accounting Principles (“GAAP”) was $36.0 million, compared to $37.3 million in the first quarter of 2020.

		For the three months ended
(Dollars in thousands)		March 31, 2021				March 31, 2020				Change (%)
Wireless revenue
Paging revenue		$	19,353

FAQ

What were the Q1 2021 results for SPOK?

SPOK reported consolidated revenue of $36.0 million for Q1 2021, a decrease from $37.3 million in Q1 2020.

How much was the dividend declared by Spok Holdings?

Spok Holdings declared a quarterly dividend of $0.125 per share, payable on June 24, 2021.

What was the software revenue for SPOK in Q1 2021?

Software revenue for SPOK in Q1 2021 was $15.9 million, consistent with the previous year.

How did operating expenses change for SPOK in Q1 2021?

Operating expenses for SPOK decreased by over 7% to $37.8 million in Q1 2021.

What is the average revenue per unit (ARPU) for SPOK in Q1 2021?

The average revenue per unit (ARPU) for SPOK in Q1 2021 was $7.34, a slight increase from $7.31 in Q1 2020.