In This Article:
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GAAP Net Income: $3.7 million or 18 per diluted share.
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Total GAAP Revenue: $34.9 million.
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Wireless Revenue: $18.3 million.
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Software Revenue: $16.6 million.
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Software Operations Bookings: 24 six-figure contracts, doubling from the prior quarter.
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Software Backlog: $63.6 million, up more than 19% year-over-year.
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Professional Services Revenue: $4.8 million, up 26.1% year-over-year.
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Managed Services Growth: Increased by almost 133% year-over-year.
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Adjusted EBITDA: $7.5 million.
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Cash Balance: $27.8 million, up from $23.9 million in the previous quarter.
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Research and Development Investment: Increased by nearly $0.3 million or 10.5% year-over-year.
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Full Year Revenue Guidance: $136 to $144 million.
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Full Year Adjusted EBITDA Guidance: $27.5 to $32.5 million.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Spok Holdings Inc (NASDAQ:SPOK) achieved nearly 65% year-over-year growth in software operations bookings for Q3 2024.
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The company doubled the number of six-figure customer contracts compared to the previous quarter, indicating strong sales momentum.
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Spok Holdings Inc (NASDAQ:SPOK) has strong relationships with top healthcare systems, contributing to consistent sales and customer loyalty.
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The company reported a 26% year-over-year growth in its professional services business, reflecting robust demand.
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Spok Holdings Inc (NASDAQ:SPOK) increased its cash balances by approximately $4 million during the quarter, showcasing strong financial management.
Negative Points
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GAAP net income decreased to $3.7 million in Q3 2024 from $4.5 million in the same period last year.
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Total GAAP revenue slightly declined to $34.9 million from $35.4 million in the prior year period.
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Wireless revenue experienced a decline, with a noted increase in net unit churn, which could impact future revenue.
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The company anticipates full-year churn to be slightly higher than previously expected, ranging from 4.5% to 6%.
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Spok Holdings Inc (NASDAQ:SPOK) faces challenges in expanding its cloud software solutions to smaller hospitals due to resource constraints.
Q & A Highlights
Q: Can you provide more details on the makeup of the 24 six-figure software operations bookings this quarter? A: Most of these contracts were with larger existing customers doing upgrades and purchasing managed services. There wasn't a significant amount of new logo business this quarter, but expanding new customer acquisition will be a focus in 2025. - Unidentified Company Participant