Spok Reports Third Quarter 2024 Results
Spok Holdings (NASDAQ: SPOK) reported Q3 2024 results with notable growth in software operations. Software bookings reached $10.4 million, up 64.4% year-over-year, with software backlog increasing 19% to $63.6 million. The quarter saw 24 six-figure customer contracts, double the previous year. Wireless ARPU grew 4.7% to $7.95. Total revenue was $34.87 million, down 1.6% year-over-year. The company generated $3.66 million in net income and $7.53 million in adjusted EBITDA. Cash and equivalents increased by $4.0 million to $27.8 million. The Board declared a quarterly dividend of $0.3125 per share.
Spok Holdings (NASDAQ: SPOK) ha riportato i risultati del terzo trimestre 2024 con una crescita significativa nelle operazioni software. Le prenotazioni software hanno raggiunto 10,4 milioni di dollari, con un incremento del 64,4% rispetto all'anno precedente, e il backlog software è aumentato del 19% a 63,6 milioni di dollari. Nel trimestre sono stati ottenuti 24 contratti con clienti a sei cifre, il doppio rispetto all'anno scorso. L'ARPU wireless è cresciuto del 4,7% a 7,95 dollari. Il fatturato totale è stato di 34,87 milioni di dollari, in calo dell'1,6% rispetto all'anno passato. L'azienda ha generato un reddito netto di 3,66 milioni di dollari e un EBITDA rettificato di 7,53 milioni di dollari. La liquidità e le disponibilità liquide sono aumentate di 4,0 milioni di dollari, raggiungendo i 27,8 milioni di dollari. Il consiglio di amministrazione ha dichiarato un dividendo trimestrale di 0,3125 dollari per azione.
Spok Holdings (NASDAQ: SPOK) reportó los resultados del tercer trimestre de 2024, evidenciando un notable crecimiento en las operaciones de software. Las reservas de software alcanzaron 10.4 millones de dólares, un aumento del 64.4% en comparación con el año anterior, mientras que el backlog de software creció un 19% hasta 63.6 millones de dólares. Durante el trimestre se firmaron 24 contratos con clientes de seis cifras, el doble del año pasado. El ARPU inalámbrico creció un 4.7% hasta 7.95 dólares. Los ingresos totales fueron de 34.87 millones de dólares, con una disminución del 1.6% en comparación con el año anterior. La compañía generó un ingreso neto de 3.66 millones de dólares y un EBITDA ajustado de 7.53 millones de dólares. El efectivo y equivalentes aumentaron en 4.0 millones de dólares hasta 27.8 millones de dólares. La Junta declaró un dividendo trimestral de 0.3125 dólares por acción.
Spok Holdings (NASDAQ: SPOK)는 2024년 3분기 결과를 발표하며 소프트웨어 운영에서 주목할 만한 성장을 기록했습니다. 소프트웨어 예약은 1,040만 달러에 도달하여 전년 대비 64.4% 증가했으며, 소프트웨어 백로그는 19% 증가하여 6360만 달러에 달했습니다. 이번 분기에는 여섯 자릿수 고객 계약이 24건 체결되어 전년의 두 배에 달했습니다. 무선 ARPU는 4.7% 증가하여 7.95달러를 기록했습니다. 총 수익은 3487만 달러로, 전년 대비 1.6% 감소했습니다. 회사는 366만 달러의 순이익과 753만 달러의 조정 EBITDA를 생성했습니다. 현금 및 동등자산은 400만 달러 증가하여 2780만 달러에 달했습니다. 이사회는 주당 0.3125달러의 분기 배당금을 선언했습니다.
Spok Holdings (NASDAQ: SPOK) a annoncé les résultats du troisième trimestre 2024, avec une croissance remarquable dans les opérations logicielles. Les réservations de logiciels ont atteint 10,4 millions de dollars, en hausse de 64,4% par rapport à l'année précédente, avec un carnet de commandes de logiciels en augmentation de 19% à 63,6 millions de dollars. Au cours du trimestre, 24 contrats client à six chiffres ont été signés, le double de l'année précédente. L'ARPU sans fil a augmenté de 4,7% pour atteindre 7,95 dollars. Le chiffre d'affaires total s'est élevé à 34,87 millions de dollars, en baisse de 1,6% par rapport à l'année précédente. L'entreprise a généré un revenu net de 3,66 millions de dollars et un EBITDA ajusté de 7,53 millions de dollars. Les liquidités ont augmenté de 4,0 millions de dollars pour atteindre 27,8 millions de dollars. Le conseil d'administration a déclaré un dividende trimestriel de 0,3125 dollars par action.
Spok Holdings (NASDAQ: SPOK) berichtete über die Ergebnisse des dritten Quartals 2024, das ein bemerkenswertes Wachstum im Softwaregeschäft verzeichnete. Die Softwarebuchungen erreichten 10,4 Millionen Dollar, was einem Anstieg von 64,4% im Vergleich zum Vorjahr entspricht, während der Software-Rückstand um 19% auf 63,6 Millionen Dollar angestiegen ist. Im Quartal wurden 24 Verträge mit Kunden über sechsstellige Beträge abgeschlossen, doppelt so viele wie im Vorjahr. Der durchschnittliche Umsatz pro Nutzer (ARPU) im Wireless-Bereich stieg um 4,7% auf 7,95 Dollar. Der Gesamtumsatz betrug 34,87 Millionen Dollar und lag damit um 1,6% unter dem Vorjahreswert. Das Unternehmen erzielte einen Nettogewinn von 3,66 Millionen Dollar und ein bereinigtes EBITDA von 7,53 Millionen Dollar. Bar- und Zahlungsmitteläquivalente stiegen um 4,0 Millionen Dollar auf 27,8 Millionen Dollar. Der Vorstand erklärte eine vierteljährliche Ausschüttung von 0,3125 Dollar pro Aktie.
- Software operations bookings increased 64.4% YoY to $10.4 million
- Software backlog grew 19.3% YoY to $63.6 million
- 24 six-figure customer contracts secured, double from previous year
- Wireless ARPU increased 4.7% YoY to $7.95
- Professional services revenue up 26.1% YoY
- Cash and equivalents increased by $4.0 million in Q3
- Total revenue declined 1.6% YoY to $34.87 million
- Net income decreased 17.8% YoY to $3.66 million
- Adjusted EBITDA dropped 10.5% YoY to $7.53 million
- License revenue declined 15.4% YoY
- Hardware revenue fell 50.5% YoY
- Wireless units in service decreased 7.0% YoY
Insights
The Q3 results show mixed but generally positive performance. Software operations bookings of
The company maintains strong cash generation with
Notable concerns include declining wireless revenue (
The surge in six-figure contracts to 24 in Q3 (double the previous year) signals strong enterprise demand and successful market penetration in the healthcare communications sector. The growing software backlog indicates a healthy sales pipeline and potential for sustained revenue growth into 2025.
The strategic shift toward higher-value software solutions is evident in the increased R&D investment of
Strong Q3 Software Operations Bookings Up Both Sequentially and Year-Over-Year
Software Backlog Up More Than
Recent Highlights:
-
Software operations bookings totaled
in the third quarter, up$10.4 million 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
at September 30, 2024, up more than$63.6 million 19% from the prior year quarter -
Third quarter 2024 Wireless average revenue per unit (ARPU) was
, up nearly$7.95 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
in the third quarter, totaling$4.0 million at September 30, 2024$27.8 million -
Research and development costs totaled
in the first nine months of 2024, supporting Spok's investment in the Company's industry-leading solutions to fuel future growth$9.0 million
"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
"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 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Wireless revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
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 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Software revenue |
|
|
|
|
|
|
|
|
|
|
|
||||||
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 |
|
|
|
|
|
|
|
|
|
|
|
||||||
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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
||||||
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 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Wireless units in service (000's) |
|
730 |
|
|
785 |
|
(7.0 |
)% |
|
|
730 |
|
|
785 |
|
(7.0 |
)% |
Wireless average revenue per unit (ARPU) |
$ |
7.95 |
|
$ |
7.59 |
|
4.7 |
% |
|
$ |
7.91 |
|
$ |
7.62 |
|
3.8 |
% |
Software operations bookings(1) |
$ |
10,379 |
|
$ |
6,312 |
|
64.4 |
% |
|
$ |
26,959 |
|
$ |
26,000 |
|
3.7 |
% |
Software backlog (as of period end)(2) |
$ |
63,579 |
|
$ |
53,309 |
|
19.3 |
% |
|
$ |
63,579 |
|
$ |
53,309 |
|
19.3 |
% |
(1) Software operations bookings includes net new (i.e., new customers or incremental add-on sales to existing customers) sales of license, professional services, equipment, and first-year maintenance. |
|||||||||||||||||
(2) Software backlog excludes |
|||||||||||||||||
Financial Outlook:
Regarding financial guidance, the Company reiterated the following expectations for the full year 2024:
(Unaudited and in millions) |
|
Current Guidance Full Year 2024 |
||||
|
|
From |
|
To |
||
Revenue |
|
|
|
|
||
Wireless |
|
$ |
72.0 |
|
$ |
75.0 |
Software |
|
$ |
64.0 |
|
$ |
69.0 |
Total Revenue |
|
$ |
136.0 |
|
$ |
144.0 |
|
|
|
|
|
||
Adjusted EBITDA |
|
$ |
27.5 |
|
$ |
32.5 |
2024 Third Quarter Call:
Management will host a conference call and webcast to discuss these financial results on Wednesday, October 30, 2024, at 5:00 p.m. Eastern Time. The presentation is open to all interested parties and may include forward-looking information.
Conference Call Details
Date/Time: |
Wednesday, October 30, 2024, at 5:00 p.m. ET |
|||
Webcast: |
||||
|
877-407-0890 |
|||
International Dial In: |
1-201-389-0918 |
To access the call, please dial in approximately ten minutes before the start of the call. For those unable to join the live call, an OnDemand version of the webcast will be available following the call under the URL link and on the investor relations website.
About Spok
Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in
Spok is a trademark of Spok Holdings, Inc. Spok Care Connect and Spok Mobile are trademarks of Spok, Inc.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: adjusted operating expenses and adjusted EBITDA. Adjusted operating expenses excludes depreciation and accretion expense, impairment of intangible assets and severance and restructuring costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax benefit/expense, depreciation and accretion expense, stock-based compensation expense, impairment of intangible assets and severance and restructuring. With respect to our expectations under "Financial Guidance" above, reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and uncertainty with respect to certain items included in net income that are excluded from adjusted EBITDA, in particular, income tax benefit/expense, stock-based compensation expenses, impairment of intangible assets, severance and restructuring and other non-recurring expenses. These items can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot be reasonably predicted.
We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Spok's financial condition and results of operations. We use these non-GAAP measures for financial, operational, and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures permit us to more thoroughly analyze key financial metrics used to make operational decisions and allow us to assess our core operating results. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies who present similar non-GAAP financial measures. We adjust for certain items because we do not regard these costs as reflective of normal costs related to the ongoing operation of the business in the ordinary course. In general, these items possess one or more of the following characteristics: non-cash expenses, factors outside of our control, items that are non-operational in nature, and unusual items not expected to occur in the normal course of business. We believe it is important to exclude these costs, given that they do not represent future operational costs under this strategic business plan. This allows us to assess the underlying performance of our core business under this new strategic business plan.
We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principle of these non-GAAP financial measures is that they exclude significant amounts that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.
Safe Harbor Statement under the Private Securities Litigation Reform Act
Statements contained herein or in prior press releases which are not historical fact, such as statements regarding our future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, our ability to manage wireless network rationalization to lower our costs without causing disruption of service to our customers; our ability to retain key management personnel and to attract and retain talent within the organization; the productivity of our sales organization and our ability to deliver effective customer support; economic conditions such as recessionary economic cycles, higher interest rates, inflation and higher levels of unemployment; risks related to our overall business strategy, including maximizing revenue and cash generation from our established businesses and returning capital to stockholders through dividends and repurchases of shares of our common stock; competition for our services and products from new technologies or those offered and/or developed from firms that are substantially larger and have much greater financial and human capital resources; continuing decline in the number of paging units we have in service with customers, commensurate with a continuing decline in our wireless revenue; our ability to address changing market conditions with new or revised software solutions; undetected defects, bugs, or security vulnerabilities in our products; our dependence on the
Tables to Follow
SPOK HOLDINGS, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(Unaudited and in thousands except share, per share amounts and ARPU) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the three months ended |
|
For the nine months ended |
||||||||||||
|
|
9/30/2024 |
|
9/30/2023 |
|
9/30/2024 |
|
9/30/2023 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Wireless |
|
$ |
18,261 |
|
|
$ |
18,972 |
|
|
$ |
55,153 |
|
|
$ |
56,877 |
|
Software |
|
|
16,609 |
|
|
|
16,456 |
|
|
|
48,608 |
|
|
|
48,195 |
|
Total revenue |
|
|
34,870 |
|
|
|
35,428 |
|
|
|
103,761 |
|
|
|
105,072 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue (exclusive of items shown separately below) |
|
|
7,133 |
|
|
|
6,622 |
|
|
|
21,435 |
|
|
|
19,885 |
|
Research and development |
|
|
2,831 |
|
|
|
2,561 |
|
|
|
8,958 |
|
|
|
7,907 |
|
Technology operations |
|
|
6,083 |
|
|
|
6,405 |
|
|
|
18,563 |
|
|
|
19,444 |
|
Selling and marketing |
|
|
3,928 |
|
|
|
4,067 |
|
|
|
11,582 |
|
|
|
12,322 |
|
General and administrative |
|
|
8,534 |
|
|
|
8,216 |
|
|
|
24,585 |
|
|
|
24,405 |
|
Depreciation and accretion |
|
|
1,075 |
|
|
|
1,267 |
|
|
|
3,210 |
|
|
|
3,768 |
|
Severance and restructuring |
|
|
325 |
|
|
|
77 |
|
|
|
1,101 |
|
|
|
195 |
|
Total operating expenses |
|
|
29,909 |
|
|
|
29,215 |
|
|
|
89,434 |
|
|
|
87,926 |
|
% of total revenue |
|
|
85.8 |
% |
|
|
82.5 |
% |
|
|
86.2 |
% |
|
|
83.7 |
% |
Operating income |
|
|
4,961 |
|
|
|
6,213 |
|
|
|
14,327 |
|
|
|
17,146 |
|
% of total revenue |
|
|
14.2 |
% |
|
|
17.5 |
% |
|
|
13.8 |
% |
|
|
16.3 |
% |
Interest income |
|
|
264 |
|
|
|
240 |
|
|
|
908 |
|
|
|
866 |
|
Other (expense) income |
|
|
(75 |
) |
|
|
41 |
|
|
|
(91 |
) |
|
|
(45 |
) |
Income before income taxes |
|
|
5,150 |
|
|
|
6,494 |
|
|
|
15,144 |
|
|
|
17,967 |
|
Provision for income taxes |
|
|
(1,490 |
) |
|
|
(2,043 |
) |
|
|
(3,823 |
) |
|
|
(5,666 |
) |
Net income |
|
$ |
3,660 |
|
|
$ |
4,451 |
|
|
$ |
11,321 |
|
|
$ |
12,301 |
|
Basic net income per common share |
|
$ |
0.18 |
|
|
$ |
0.22 |
|
|
$ |
0.56 |
|
|
$ |
0.62 |
|
Diluted net income per common share |
|
$ |
0.18 |
|
|
$ |
0.22 |
|
|
$ |
0.55 |
|
|
$ |
0.61 |
|
Basic weighted average common shares outstanding |
|
|
20,264,055 |
|
|
|
19,970,936 |
|
|
|
20,229,146 |
|
|
|
19,942,325 |
|
Diluted weighted average common shares outstanding |
|
|
20,523,873 |
|
|
|
20,304,092 |
|
|
|
20,534,883 |
|
|
|
20,308,973 |
|
Cash dividends declared per common share |
|
|
0.3125 |
|
|
|
0.3125 |
|
|
|
0.9375 |
|
|
|
0.9375 |
|
SPOK HOLDINGS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands) |
||||||||
|
|
|
|
|
||||
|
|
9/30/2024 |
|
12/31/2023 |
||||
|
|
|
|
|
||||
ASSETS |
|
(Unaudited) |
|
|
||||
|
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
27,830 |
|
|
$ |
31,989 |
|
Accounts receivable, net |
|
|
21,377 |
|
|
|
23,314 |
|
Prepaid expenses |
|
|
8,450 |
|
|
|
7,885 |
|
Other current assets |
|
|
723 |
|
|
|
704 |
|
Total current assets |
|
|
58,380 |
|
|
|
63,892 |
|
Non-current assets: |
|
|
|
|
||||
Property and equipment, net |
|
|
6,988 |
|
|
|
7,321 |
|
Operating lease right-of-use assets |
|
|
8,597 |
|
|
|
10,526 |
|
Goodwill |
|
|
99,175 |
|
|
|
99,175 |
|
Deferred income tax assets, net |
|
|
42,635 |
|
|
|
46,260 |
|
Other non-current assets |
|
|
987 |
|
|
|
510 |
|
Total non-current assets |
|
|
158,382 |
|
|
|
163,792 |
|
Total assets |
|
$ |
216,762 |
|
|
$ |
227,684 |
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
3,944 |
|
|
$ |
5,969 |
|
Accrued compensation and benefits |
|
|
5,188 |
|
|
|
7,284 |
|
Deferred revenue |
|
|
28,743 |
|
|
|
26,298 |
|
Operating lease liabilities |
|
|
2,961 |
|
|
|
4,184 |
|
Other current liabilities |
|
|
4,796 |
|
|
|
4,273 |
|
Total current liabilities |
|
|
45,632 |
|
|
|
48,008 |
|
Non-current liabilities: |
|
|
|
|
||||
Asset retirement obligations |
|
|
7,268 |
|
|
|
7,191 |
|
Operating lease liabilities |
|
|
6,148 |
|
|
|
6,902 |
|
Other non-current liabilities |
|
|
1,426 |
|
|
|
1,812 |
|
Total non-current liabilities |
|
|
14,842 |
|
|
|
15,905 |
|
Total liabilities |
|
|
60,474 |
|
|
|
63,913 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
||||
Preferred stock |
|
$ |
— |
|
|
$ |
— |
|
Common stock |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
104,119 |
|
|
|
102,936 |
|
Accumulated other comprehensive loss |
|
|
(1,747 |
) |
|
|
(1,764 |
) |
Retained earnings |
|
|
53,914 |
|
|
|
62,597 |
|
Total stockholders' equity |
|
|
156,288 |
|
|
|
163,771 |
|
Total liabilities and stockholders' equity |
|
$ |
216,762 |
|
|
$ |
227,684 |
|
SPOK HOLDINGS, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited and in thousands) |
|||||||
|
|
|
|
||||
|
For the nine months ended |
||||||
|
9/30/2024 |
|
9/30/2023 |
||||
Operating activities: |
|
|
|
||||
Net income |
$ |
11,321 |
|
|
$ |
12,301 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and accretion |
|
3,210 |
|
|
|
3,768 |
|
Deferred income tax expense |
|
3,624 |
|
|
|
5,605 |
|
Stock-based compensation |
|
3,480 |
|
|
|
2,743 |
|
Provisions for credit losses, service credits and other |
|
450 |
|
|
|
415 |
|
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
1,481 |
|
|
|
1,305 |
|
Prepaid expenses and other assets |
|
(1,061 |
) |
|
|
(1,102 |
) |
Net operating lease liabilities |
|
(48 |
) |
|
|
(1,243 |
) |
Accounts payable, accrued liabilities and other |
|
(4,284 |
) |
|
|
(7,396 |
) |
Deferred revenue |
|
2,342 |
|
|
|
(2,000 |
) |
Net cash provided by operating activities |
|
20,515 |
|
|
|
14,396 |
|
Investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(2,348 |
) |
|
|
(2,419 |
) |
Net cash used in investing activities |
|
(2,348 |
) |
|
|
(2,419 |
) |
Financing activities: |
|
|
|
||||
Cash distributions to stockholders |
|
(20,045 |
) |
|
|
(19,404 |
) |
Proceeds from issuance of common stock under the Employee Stock Purchase Plan |
|
130 |
|
|
|
90 |
|
Purchase of common stock for tax withholding on vested equity awards |
|
(2,428 |
) |
|
|
(1,245 |
) |
Net cash used in financing activities |
|
(22,343 |
) |
|
|
(20,559 |
) |
Effect of exchange rate on cash and cash equivalents |
|
17 |
|
|
|
129 |
|
Net decrease in cash and cash equivalents |
|
(4,159 |
) |
|
|
(8,453 |
) |
Cash and cash equivalents, beginning of period |
|
31,989 |
|
|
|
35,754 |
|
Cash and cash equivalents, end of period |
$ |
27,830 |
|
|
$ |
27,301 |
|
Supplemental disclosure: |
|
|
|
||||
Income taxes paid |
$ |
298 |
|
|
$ |
236 |
|
SPOK HOLDINGS, INC. |
||||||||||||||||||||||||||||||||
UNITS IN SERVICE, MARKET SEGMENTS, |
||||||||||||||||||||||||||||||||
AND AVERAGE REVENUE PER UNIT (ARPU) |
||||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||||||||||||||
|
|
9/30/2024 |
|
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
3/31/2023 |
|
12/31/2022 |
||||||||||||||||
Account size ending units in service (000's) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 to 100 units |
|
|
41 |
|
|
|
42 |
|
|
|
43 |
|
|
|
44 |
|
|
|
46 |
|
|
|
48 |
|
|
|
48 |
|
|
|
50 |
|
101 to 1,000 units |
|
|
125 |
|
|
|
128 |
|
|
|
135 |
|
|
|
142 |
|
|
|
143 |
|
|
|
144 |
|
|
|
149 |
|
|
|
147 |
|
>1,000 units |
|
|
564 |
|
|
|
577 |
|
|
|
575 |
|
|
|
579 |
|
|
|
596 |
|
|
|
614 |
|
|
|
614 |
|
|
|
620 |
|
Total |
|
|
730 |
|
|
|
747 |
|
|
|
753 |
|
|
|
765 |
|
|
|
785 |
|
|
|
806 |
|
|
|
811 |
|
|
|
817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Market segment as a percent of total ending units in service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Healthcare |
|
|
85.7 |
% |
|
|
85.8 |
% |
|
|
86.1 |
% |
|
|
85.9 |
% |
|
|
86.0 |
% |
|
|
86.1 |
% |
|
|
85.7 |
% |
|
|
85.4 |
% |
Government |
|
|
4.1 |
% |
|
|
4.4 |
% |
|
|
4.1 |
% |
|
|
4.2 |
% |
|
|
4.2 |
% |
|
|
4.2 |
% |
|
|
4.3 |
% |
|
|
4.4 |
% |
Large enterprise |
|
|
4.0 |
% |
|
|
4.0 |
% |
|
|
3.9 |
% |
|
|
4.1 |
% |
|
|
4.1 |
% |
|
|
4.0 |
% |
|
|
4.1 |
% |
|
|
4.0 |
% |
Other(1) |
|
|
6.2 |
% |
|
|
5.8 |
% |
|
|
5.9 |
% |
|
|
5.8 |
% |
|
|
5.7 |
% |
|
|
5.7 |
% |
|
|
5.9 |
% |
|
|
6.2 |
% |
Total |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Account size ARPU |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1 to 100 units |
|
$ |
12.70 |
|
|
$ |
12.51 |
|
|
$ |
12.66 |
|
|
$ |
12.57 |
|
|
$ |
12.02 |
|
|
$ |
11.91 |
|
|
$ |
12.03 |
|
|
$ |
11.95 |
|
101 to 1,000 units |
|
|
9.19 |
|
|
|
9.06 |
|
|
|
9.14 |
|
|
|
9.16 |
|
|
|
8.75 |
|
|
|
8.56 |
|
|
|
8.75 |
|
|
|
8.66 |
|
>1,000 units |
|
|
7.33 |
|
|
|
7.21 |
|
|
|
7.23 |
|
|
|
7.15 |
|
|
|
6.97 |
|
|
|
6.94 |
|
|
|
6.95 |
|
|
|
6.86 |
|
Total |
|
$ |
7.95 |
|
|
$ |
7.84 |
|
|
$ |
7.89 |
|
|
$ |
7.84 |
|
|
$ |
7.59 |
|
|
$ |
7.53 |
|
|
$ |
7.59 |
|
|
$ |
7.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(1) Other includes hospitality, resort and indirect units |
RECONCILIATION OF ADJUSTED OPERATING EXPENSES |
||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the three months ended |
|
For the nine months ended |
||||||||||||
|
|
9/30/2024 |
|
9/30/2023 |
|
9/30/2024 |
|
9/30/2023 |
||||||||
Operating expenses |
|
$ |
29,909 |
|
|
$ |
29,215 |
|
|
$ |
89,434 |
|
|
$ |
87,926 |
|
Add back: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and accretion |
|
|
(1,075 |
) |
|
|
(1,267 |
) |
|
|
(3,210 |
) |
|
|
(3,768 |
) |
Severance and restructuring |
|
|
(325 |
) |
|
|
(77 |
) |
|
|
(1,101 |
) |
|
|
(195 |
) |
Adjusted operating expenses |
|
$ |
28,509 |
|
|
$ |
27,871 |
|
|
$ |
85,123 |
|
|
$ |
83,963 |
|
RECONCILIATION OF ADJUSTED EBITDA |
||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
For the three months ended |
|
For the nine months ended |
||||||||||||
|
|
9/30/2024 |
|
9/30/2023 |
|
9/30/2024 |
|
9/30/2023 |
||||||||
Net income |
|
$ |
3,660 |
|
|
$ |
4,451 |
|
|
$ |
11,321 |
|
|
$ |
12,301 |
|
Add back: |
|
|
|
|
|
|
|
|
||||||||
Provision for income taxes |
|
|
1,490 |
|
|
|
2,043 |
|
|
|
3,823 |
|
|
|
5,666 |
|
Other expense (income) |
|
|
75 |
|
|
|
(41 |
) |
|
|
91 |
|
|
|
45 |
|
Interest income |
|
|
(264 |
) |
|
|
(240 |
) |
|
|
(908 |
) |
|
|
(866 |
) |
Depreciation and accretion |
|
|
1,075 |
|
|
|
1,267 |
|
|
|
3,210 |
|
|
|
3,768 |
|
EBITDA |
|
$ |
6,036 |
|
|
$ |
7,480 |
|
|
$ |
17,537 |
|
|
$ |
20,914 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
|
1,173 |
|
|
|
865 |
|
|
|
3,480 |
|
|
|
2,724 |
|
Severance and restructuring |
|
|
325 |
|
|
|
77 |
|
|
|
1,101 |
|
|
|
195 |
|
Adjusted EBITDA |
|
$ |
7,534 |
|
|
$ |
8,422 |
|
|
$ |
22,118 |
|
|
$ |
23,833 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030621908/en/
Al Galgano
952-224-6096
al.galgano@spok.com
Source: Spok Holdings, Inc.
FAQ
What was Spok's (SPOK) software bookings growth in Q3 2024?
How much dividend did Spok (SPOK) declare for Q3 2024?
What was Spok's (SPOK) software backlog as of September 30, 2024?