Spok Holdings Inc (SPOK) Q3 2024 Earnings Call Highlights: Strong Software Bookings Amid ...

In This Article:

  • GAAP Net Income: $3.7 million or 18 per diluted share.

  • Total GAAP Revenue: $34.9 million.

  • Wireless Revenue: $18.3 million.

  • Software Revenue: $16.6 million.

  • Software Operations Bookings: 24 six-figure contracts, doubling from the prior quarter.

  • Software Backlog: $63.6 million, up more than 19% year-over-year.

  • Professional Services Revenue: $4.8 million, up 26.1% year-over-year.

  • Managed Services Growth: Increased by almost 133% year-over-year.

  • Adjusted EBITDA: $7.5 million.

  • Cash Balance: $27.8 million, up from $23.9 million in the previous quarter.

  • Research and Development Investment: Increased by nearly $0.3 million or 10.5% year-over-year.

  • Full Year Revenue Guidance: $136 to $144 million.

  • 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

  • Spok Holdings Inc (NASDAQ:SPOK) achieved nearly 65% year-over-year growth in software operations bookings for Q3 2024.

  • The company doubled the number of six-figure customer contracts compared to the previous quarter, indicating strong sales momentum.

  • Spok Holdings Inc (NASDAQ:SPOK) has strong relationships with top healthcare systems, contributing to consistent sales and customer loyalty.

  • The company reported a 26% year-over-year growth in its professional services business, reflecting robust demand.

  • Spok Holdings Inc (NASDAQ:SPOK) increased its cash balances by approximately $4 million during the quarter, showcasing strong financial management.

Negative Points

  • GAAP net income decreased to $3.7 million in Q3 2024 from $4.5 million in the same period last year.

  • Total GAAP revenue slightly declined to $34.9 million from $35.4 million in the prior year period.

  • Wireless revenue experienced a decline, with a noted increase in net unit churn, which could impact future revenue.

  • The company anticipates full-year churn to be slightly higher than previously expected, ranging from 4.5% to 6%.

  • 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

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