Spok Reports Fourth Quarter and Full Year 2024 Results
Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the fourth quarter and full year ended December 31, 2024. In addition, the Company’s Boa...
Strong Q4 Software Operations Bookings Drive More Than 13%Year-Over-Year Growth
Year-End Software Backlog Up Nearly 22% From Prior Year
PLANO, Texas: Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the fourth quarter and full year ended December 31, 2024. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on March 31, 2025, to stockholders of record on March 14, 2025.
Recent Highlights:
- Software operations bookings totaled $7.1 million in the fourth quarter, up 73.2% from the fourth quarter of 2023, driving total 2024 software operations bookings of $34.1 million, up 13.2% from the prior year
- Fourth quarter software operations bookings included 20 six and seven-figure customer contracts, up from the amount generated in the prior year quarter
- Software backlog totaled $62.4 million at December 31, 2024, up nearly 22% from the prior year
- Fourth quarter 2024 Wireless average revenue per unit (ARPU) was $8.16, up more than 4% on a year-over-year basis
- Capital returned to stockholders in the fourth quarter of 2024 totaled $6.3 million and $26.4 million for the full year 2024
- Cash and cash equivalents increased by an additional $1.3 million in the fourth quarter, resulting in a total cash and cash equivalents balance of $29.1 million at December 31, 2024
- Research and development costs totaled $11.5 million in 2024, supporting Spok's investment in the Company's industry-leading solutions to fuel future growth
"I am proud of the very strong finish to 2024 that our team was able to deliver in the fourth quarter and their continued dedication to Spok's mission to grow software revenue, generate cash flow and return capital to stockholders,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “In 2024 we achieved numerous operational and financial milestones as a year-over-year increase in software revenue was coupled with essentially flat year-over-year operating expenses, despite continued growth in our investment in Spok's products and services. In addition, we strengthened our sales, product and development teams while making tremendous progress executing our product roadmap and building a robust product pipeline, both in terms of size and quality. We exited last year with record Software backlog levels, which were up nearly 22% from 2023. Software operations bookings for the year totaled $34.1 million and were up more than 13% from an already strong level of bookings in 2023. Included in this performance were 82 six- and seven-figure customer contracts, which exceeded prior year levels by more than 22%. Additionally, software operations bookings included 40 multi-year engagements, up significantly from the prior year, and the fourth quarter average new contract size increased by more than 50% on a year-over-year basis. Lastly, we were able to generate this growth, while increasing customer satisfaction scores and retention.
"I believe Spok has done an excellent job of balancing the necessary investments required for our products and infrastructure in order to fuel future growth, while continuing to create stockholder value and return capital to our stockholders," continued Kelly. "In 2024, we generated $15.0 million of net income and $29.2 million of adjusted EBITDA, which more than covered the $26.4 million we returned to our stockholders. However, at the same time, we invested more than $11.5 million in our products and services through our R&D efforts. We remain committed to this approach of balancing cash returned to our stockholders with investments in our product offering and believe our extensive experience operating our established and well-regarded communication solutions will create significant value going forward. In short, we believe it is important to make money and regularly return capital to our stockholders as we move forward.
"Based on our performance in 2024, and the numerous financial and operational milestones we achieved during the year, we are providing 2025 guidance estimates for revenue and adjusted EBITDA. This guidance reflects the team's confidence in being able to outpace our last year's performance. At the midpoint of the guidance range, we believe we are on track to again grow consolidated revenue in 2025, on a year-over-year basis, with continued growth in software revenue, partially offset with slight declines in wireless revenue. We also anticipate that the midpoint of our adjusted EBITDA guidance will be consistent with last year, 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 December 31, |
| For the year ended December 31, | |||||||||||||||
(Dollars in thousands) | 2024 |
| 2023 |
| Change (%) |
| 2024 |
| 2023 |
| Change (%) | |||||||
Revenue |
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Wireless revenue |
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Paging revenue | $ | 17,750 | $ | 18,220 | (2.6 | )% | $ | 70,958 |
| $ | 73,135 |
| (3.0 | )% | ||||
Product and other revenue |
| 620 |
| 871 | (28.8 | )% |
| 2,565 |
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| 2,833 |
| (9.5 | )% | ||||
Total wireless revenue | $ | 18,370 | $ | 19,091 | (3.8 | )% | $ | 73,523 |
| $ | 75,968 |
| (3.2 | )% | ||||
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Software revenue |
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License |
| 1,283 |
| 998 | 28.6 | % |
| 7,648 |
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| 8,721 |
| (12.3 | )% | ||||
Professional services - projects | $ | 3,503 | $ | 3,340 | 4.9 | % | $ | 14,616 |
| $ | 13,305 |
| 9.9 | % | ||||
Professional services - managed services |
| 1,226 |
| 445 | 175.5 | % |
| 3,259 |
|
| 1,389 |
| 134.6 | % | ||||
Hardware |
| 269 |
| 587 | (54.2 | )% |
| 1,382 |
|
| 2,675 |
| (48.3 | )% | ||||
Maintenance |
| 9,241 |
| 9,492 | (2.6 | )% |
| 37,225 |
|
| 36,967 |
| 0.7 | % | ||||
Total software revenue | $ | 15,522 | $ | 14,862 | 4.4 | % | $ | 64,130 |
| $ | 63,057 |
| 1.7 | % | ||||
Total revenue | $ | 33,892 | $ | 33,953 | (0.2 | )% | $ | 137,653 |
| $ | 139,025 |
| (1.0 | )% | ||||
| For the three months ended December 31, |
| For the year ended December 31, | |||||||||||||||
(Dollars in thousands) | 2024 |
| 2023 |
| Change (%) |
| 2024 |
| 2023 |
| Change (%) | |||||||
GAAP |
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Operating expenses | $ | 29,254 |
| $ | 29,871 |
| (2.1 | )% |
| $ | 118,688 |
| $ | 117,797 |
| 0.8 | % | |
Net income | $ | 3,644 |
| $ | 3,365 |
| 8.3 | % |
| $ | 14,965 |
| $ | 15,666 |
| (4.5 | )% | |
Cash and cash equivalents (as of period end) | $ | 29,145 |
| $ | 31,989 |
| (8.9 | )% |
| $ | 29,145 |
| $ | 31,989 |
| (8.9 | )% | |
Capital returned to stockholders | $ | 6,336 |
| $ | 6,238 |
| 1.6 | % |
| $ | 26,381 |
| $ | 25,642 |
| 2.9 | % | |
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Non-GAAP |
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Adjusted operating expenses | $ | 28,313 |
| $ | 28,765 |
| (1.6 | )% |
| $ | 113,436 |
| $ | 112,728 |
| 0.6 | % | |
Adjusted EBITDA | $ | 7,055 |
| $ | 6,509 |
| 8.4 | % |
| $ | 29,173 |
| $ | 30,342 |
| (3.9 | )% | |
For the three months ended December 31, |
| For the year ended December 31, | ||||||||||||||||
(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) |
| 720 |
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| 765 |
| (5.9 | )% |
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