Spok Reports Second Quarter 2024 Results
Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the second quarter ended June 30, 2024. In addition, the Company’s Board of Directors de...
Software Operations Bookings Up 10.3% From Prior Quarter
Year-Over-Year Software Revenue Performance Driven by Growth in Maintenance and Services
ALEXANDRIA, Va.: Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the second quarter ended June 30, 2024. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on September 9, 2024, to stockholders of record on August 19, 2024.
Recent Highlights:
- Software operations bookings totaled $8.7 million in the second quarter, up 10.3% from the first quarter of 2024
- Second quarter software operations bookings included 18 six-figure customer contracts and one seven-figure customer contract
- Software backlog totaled $55.0 million at June 30, 2024, up nearly 4% from the prior year
- Second quarter 2024 Wireless average revenue per unit (ARPU) was $7.84, up on a year-over-year basis
- Improvement in quarterly net unit churn at 0.8% in the second quarter, down from 1.6% in the prior quarter
- Capital returned to stockholders in the second quarter of 2024 totaled $6.3 million
- Research and development costs total $6.1 million in the first six months of 2024, supporting Spok's investment in the Company's industry-leading solutions to fuel future growth
"Our goal has been and continues to be to reliably and consistently forecast and generate cash flow in order to return capital to our loyal stockholders over the long-term. We are achieving that goal," said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. "I am proud of the performance our team was able to deliver in the second quarter as we continue to serve our customers at a high level, while returning capital to stockholders. I am particularly pleased with our performance in generating software operations bookings of $8.7 million in the second quarter, which was up more than 10% from our team's impressive performance in the first quarter of 2024. While we did not match the largest single customer contract in Spok’s history from the second quarter of 2023, our second quarter 2024 results were driven by a healthy mix of large deals and our average contract size continues to grow. Software sales are always going to be lumpy. However, we are encouraged as our third quarter sales are off to a very strong start.
"I believe Spok is doing an excellent job of balancing the necessary investments in our products and infrastructure in order to fuel future growth and continuing to return capital to our stockholders," continued Kelly. "Through the first six months of this year, Spok has generated nearly $7.7 million of net income and $14.6 million of adjusted EBITDA. Adjusted EBITDA in the second quarter was more than enough to cover our quarterly dividend payment, as well as our capital expenditure requirements. This resulted in a slight 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 second quarter and believe that our results in the first half of the year provide a solid springboard for the second half of 2024. As a result, we are reiterating our guidance estimates for revenue and adjusted EBITDA generation for this year. At the midpoint of that guidance range, we believe we are on track to again grow consolidated revenue in 2024, on a year-over-year basis, with slight declines in wireless revenue being more than offset by continued growth in software revenue. We also anticipate that the midpoint of our adjusted EBITDA guidance will be consistent with 2023, with additional growth potential at the high-end of the guidance range. Of course, we will continue to update you on our outlook each quarter when we report our results," concluded Kelly.
Financial Highlights:
| For the three months ended June 30, |
| For the six months ended June 30, | ||||||||||||||
(Dollars in thousands) | 2024 |
| 2023 |
| Change (%) |
| 2024 |
| 2023 |
| Change (%) | ||||||
Revenue |
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Wireless revenue |
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Paging revenue | $ | 17,633 |
| $ | 18,271 |
| (3.5 | )% |
| $ | 35,603 |
| $ | 36,796 |
| (3.2 | )% |
Product and other revenue |
| 664 |
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| 606 |
| 9.6 | % |
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| 1,289 |
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| 1,109 |
| 16.2 | % |
Total wireless revenue | $ | 18,297 |
| $ | 18,877 |
| (3.1 | )% |
| $ | 36,892 |
| $ | 37,905 |
| (2.7 | )% |
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Software revenue |
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License | $ | 1,697 |
| $ | 3,692 |
| (54.0 | )% |
| $ | 4,323 |
| $ | 5,310 |
| (18.6 | )% |
Professional services |
| 4,286 |
|
| 3,837 |
| 11.7 | % |
|
| 8,311 |
|
| 7,076 |
| 17.5 | % |
Hardware |
| 334 |
|
| 933 |
| (64.2 | )% |
|
| 718 |
|
| 1,289 |
| (44.3 | )% |
Maintenance |
| 9,368 |
|
| 9,124 |
| 2.7 | % |
|
| 18,647 |
|
| 18,063 |
| 3.2 | % |
Total software revenue |
| 15,685 |
|
| 17,586 |
| (10.8 | )% |
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| 31,999 |
|
| 31,738 |
| 0.8 | % |
Total revenue | $ | 33,982 |
| $ | 36,463 |
| (6.8 | )% |
| $ | 68,891 |
| $ | 69,643 |
| (1.1 | )% |
| For the three months ended June 30, |
| For the six months ended June 30, | ||||||||||||||
(Dollars in thousands) | 2024 |
| 2023 |
| Change (%) |
| 2024 |
| 2023 |
| Change (%) | ||||||
GAAP |
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Operating expenses | $ | 29,508 |
| $ | 30,248 |
| (2.4 | )% |
| $ | 59,526 |
| $ | 58,711 |
| 1.4 | % |
Net income | $ | 3,425 |
| $ | 4,733 |
| (27.6 | )% |
| $ | 7,661 |
| $ | 7,850 |
| (2.4 | )% |
Cash and cash equivalents (as of period end) | $ | 23,875 |
| $ | 30,866 |
| (22.6 | )% |
| $ | 23,875 |
| $ | 30,866 |
| (22.6 | )% |
Capital returned to stockholders | $ | 6,329 |
| $ | 6,230 |
| 1.6 | % |
| $ | 13,715 |
| $ | 13,163 |
| 4.2 | % |
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Non-GAAP |
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Adjusted operating expenses | $ | 28,093 |
| $ | 28,875 |
| (2.7 | )% |
| $ | 56,615 |
| $ | 56,092 |
| 0.9 | % |
Adjusted EBITDA | $ | 7,048 |
| $ | 8,511 |
| (17.2 | )% |
| $ | 14,583 |
| $ | 15,410 |
| (5.4 | )% |
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| For the three months ended June 30, |
| For the six months ended June 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) |
| 747 |
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| 806 |
| (7.3 | )% |
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| 747 |
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| 806 |
| (7.3 | )% |
Wireless average revenue per unit (ARPU) | $ | If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news
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