Total annual revenue growth for the first time
in the Company's history, with year-over-year growth in both
Software and Wireless revenue
2023 Software operations bookings, up 22% from
the prior year
Company provides earnings guidance for 2024
Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in
healthcare communications, today announced results for the fourth
quarter and full year ended December 31, 2023. In addition, the
Company’s Board of Directors declared a regular quarterly dividend
of $0.3125 per share, payable on March 29, 2024, to stockholders of
record on March 15, 2024.
Recent Highlights:
- Generated net income of $3.4 million, or $0.17 per diluted
share, in the fourth quarter, compared to net income of $24.2
million, or $1.21 per diluted share, in the prior year, or $2.3
million and $0.12 per diluted share, when excluding the $21.9
million non-cash tax benefit related to the release of the
previously established valuation allowance
- Generated $6.5 million of adjusted EBITDA in the fourth
quarter, compared to $5.6 million in the fourth quarter of
2022
- Software operations bookings totaled $4.1 million in the fourth
quarter
- 2023 Software operations bookings are up more than 22% from
2022
- Fourth quarter 2023 Software operations bookings included 14
six-figure customer contracts
- Fourth quarter 2023 Software revenue totaled $14.9 million, up
4% from the prior year period
- Fourth quarter 2023 Wireless average revenue per unit (ARPU)
was $7.84, up on a year-over-year basis, with units in service down
2.5% from the prior quarter and 6.4% on a trailing-twelve-month
basis
- Fourth quarter 2023 Wireless revenue of $19.1 million, compared
to revenue of $19.0 million in the same period in 2022
- Capital returned to stockholders in 2023 totaled $25.6 million
in the form of the Company’s regular quarterly dividend
- Cash and cash equivalents balance of $32.0 million on December
31, 2023, and no debt
"I am so proud of the very strong performance our team was able
to deliver in 2023, and their continued dedication to Spok's
mission to grow revenue, generate cash flow and return capital to
stockholders,” said Vincent D. Kelly, chief executive officer of
Spok Holdings, Inc. “Last year we achieved numerous operational and
financial milestones as a 3.3% year-over-year increase in total
revenue, the first in the Company's history, was coupled with a
more than 12% decline in operating expenses. In addition, we
strengthened our sales team and made tremendous progress in
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 28% from
2022. Software operations bookings for the year totaled $30.1
million and were up 22% from an already strong level of bookings in
2022. Included in this performance were 67 six-figure customer
contracts, which exceeded prior year levels. Software operations
bookings included the largest customer contract ever signed in the
Company's history and we saw a doubling of our average new contract
size. Most importantly, last year's performance included 30
multi-year engagements, up approximately 60% from the level
generated in 2022. Lastly, we were able to generate this growth,
while increasing customer satisfaction scores and retention.
"In short, I believe Spok has done an excellent job of balancing
the necessary investments we needed to make in 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 2023, we generated nearly $16 million of net
income and more than $30 million of adjusted EBITDA, which more
than covered the $25.6 million we returned to our stockholders.
However, at the same time, we invested more than $10.5 million in
our products and services. We remain committed to this approach and
believe our extensive experience operating our established and
well-regarded communication solutions will create significant value
going forward.
"Based on our performance in 2023, and the numerous financial
and operational milestones we achieved during the year, we are
providing guidance estimates for revenue and adjusted EBITDA
generation for this year. This guidance reflects the team's
confidence in being able to outpace our 2023 performance. At the
midpoint of the 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
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 twelve months ended
December 31,
(Dollars in thousands)
2023
2022
Change (%)
2023
2022
Change (%)
Revenue
Wireless revenue
Paging revenue
$
18,220
$
18,450
(1.2
)%
$
73,135
$
73,323
(0.3
)%
Product and other revenue
871
571
52.5
%
2,833
2,299
23.2
%
Total wireless revenue
$
19,091
$
19,021
0.4
%
$
75,968
$
75,622
0.5
%
Software revenue
License
$
998
$
1,269
(21.4
)%
$
8,721
$
7,202
21.1
%
Professional services
3,785
3,063
23.6
%
14,694
12,565
16.9
%
Hardware
587
585
0.3
%
2,675
2,211
21.0
%
Maintenance
9,492
9,317
1.9
%
36,967
36,934
0.1
%
Total software revenue
14,862
14,234
4.4
%
63,057
58,912
7.0
%
Total revenue
$
33,953
$
33,255
2.1
%
$
139,025
$
134,534
3.3
%
For the three months ended
December 31,
For the twelve months ended
December 31,
(Dollars in thousands)
2023
2022
Change (%)
2023
2022
Change (%)
GAAP
Operating expenses
$
29,871
$
30,300
(1.4
)%
$
117,797
$
134,296
(12.3
)%
Net income
(1)
$
3,365
$
24,226
(86.1
)%
$
15,666
$
21,856
(28.3
)%
Cash, cash equivalents, and short-term
investments (as of period end)
$
31,989
$
35,754
(10.5
)%
$
31,989
$
35,754
(10.5
)%
Capital returned to stockholders
$
6,238
$
6,162
1.2
%
$
25,642
$
25,011
2.5
%
Non-GAAP
Adjusted operating expenses
$
28,765
$
28,481
1.0
%
$
112,728
$
123,396
(8.6
)%
Adjusted EBITDA
$
6,509
$
5,647
15.3
%
$
30,342
$
14,965
102.8
%
(1) For the three months and year ended
December 31, 2022 Net income includes a non-cash benefit of $21.9
million related to the release of a previously established
valuation allowance in alignment with our projections of future
taxable income.
For the three months ended
December 31,
For the twelve months ended
December 31,
(Dollars in thousands, excluding units
and service and ARPU)
2023
2022
Change (%)
2023
2022
Change (%)
Key
Statistics
Wireless units in service
765
817
(6.4
)%
765
817
(6.4
)%
Wireless average revenue per unit
(ARPU)
$
7.84
$
7.50
4.5
%
$
7.71
$
7.34
5.0
%
Software operations bookings(1)
$
4,112
$
5,863
(29.9
)%
$
30,113
$
24,692
22.0
%
Software backlog (as of period end)
$
56,231
$
43,966
27.9
%
$
56,231
$
43,966
27.9
%
(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.
Financial Outlook:
Regarding financial guidance, the Company expects the following
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
2023 Fourth Quarter
Call:
Management will host a conference call and webcast to discuss
these financial results on Wednesday, February 21, 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, February 21, 2024, at 5:00 p.m.
ET
Webcast:
https://www.webcast-eqs.com/register/spok_q42023_en/en
U.S. Toll-Free Dial In:
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, Inc., a wholly owned subsidiary of Spok Holdings, Inc.
(NASDAQ: SPOK), headquartered in Alexandria, Virginia, is proud to
be a global leader in healthcare communications. We deliver
clinical information to care teams when and where it matters most
to improve patient outcomes. Top hospitals rely on the Spok Care
Connect® platform to enhance workflows for clinicians and support
administrative compliance. Our customers send over 100 million
messages each month through their Spok® solutions. Spok enables
smarter, faster clinical communication. For more information, visit
spok.com or follow @spoktweets on Twitter.
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, amortization 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, amortization 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 U.S. healthcare industry; the sales
cycle of our software solutions and services can run from six to
eighteen months, making it difficult to plan for and meet our sales
objectives and bookings on a steady basis quarter-to-quarter and
year-to-year; our reliance on third-party vendors to supply us with
wireless paging equipment; our ability to maintain successful
relationships with our channel partners; our ability to protect our
rights in intellectual property that we own and develop and the
potential for litigation claiming intellectual property
infringement by us; our use of open source software, third-party
software and other intellectual property; the reliability of our
networks and servers and our ability to prevent cyber-attacks and
other security issues and disruptions; our reliance on data centers
and other systems and technologies provided by third parties, and
technology systems and electronic networks supplied and managed by
third parties; cyberattacks, data breaches or other compromises to
our or our critical third parties' systems, data, products or
services; our ability to realize the benefits associated with our
deferred income tax assets; future impairments of our long-lived
assets or goodwill; risks related to data privacy and
protection-related laws and regulation; and our ability to manage
changes related to regulation, including laws and regulations
affecting hospitals and the healthcare industry generally, as well
as other risks described from time to time in our periodic reports
and other filings with the Securities and Exchange Commission.
Although Spok believes the expectations reflected in the
forward-looking statements are based on reasonable assumptions, it
can give no assurance that its expectations will be attained. Spok
disclaims any intent or obligation to update any forward-looking
statements.
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 year ended
12/31/2023
12/31/2022
12/31/2023
12/31/2022
Revenue:
Wireless
$
19,091
$
19,021
$
75,968
$
75,622
Software
14,862
14,234
63,057
58,912
Total revenue
33,953
33,255
139,025
134,534
Operating expenses:
Cost of revenue (exclusive of items shown
separately below)
6,933
6,859
26,818
28,267
Research and development
2,642
2,281
10,549
13,625
Technology operations
6,399
6,800
25,843
27,412
Selling and marketing
4,028
3,667
16,350
16,296
General and administrative
8,763
8,874
33,168
37,796
Depreciation and accretion
728
938
4,496
3,571
Severance and restructuring
378
881
573
7,329
Total operating expenses
29,871
30,300
117,797
134,296
% of total revenue
88.0
%
91.1
%
84.7
%
99.8
%
Operating income
4,082
2,955
21,228
238
% of total revenue
12.0
%
8.9
%
15.3
%
0.2
%
Interest income
233
226
1,099
592
Other income (expense)
43
57
(2
)
167
Income before income taxes
4,358
3,238
22,325
997
(Provision for) benefit from income
taxes
(993
)
20,988
(6,659
)
20,859
Net income
(1)
$
3,365
$
24,226
$
15,666
$
21,856
Basic net income per common share
(1)
$
0.17
$
1.23
$
0.79
$
1.11
Diluted net income per common share
(1)
$
0.17
$
1.21
$
0.77
$
1.09
Basic weighted average common shares
outstanding
19,987,640
19,703,802
19,953,747
19,672,423
Diluted weighted average common shares
outstanding
20,367,248
20,009,234
20,343,912
19,991,202
Cash dividends declared per common
share
0.3125
0.3125
1.2500
1.2500
(1) For the three months and year ended
December 31, 2022 Net income, basic net income per common share,
and diluted net income per common share includes a non-cash benefit
of $21.9 million related to the release of a previously established
valuation allowance in alignment with our projections of future
taxable income.
SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
12/31/2023
12/31/2022
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
31,989
$
35,754
Accounts receivable, net
23,314
26,861
Prepaid expenses
7,885
6,849
Other current assets
704
587
Total current assets
63,892
70,051
Non-current assets:
Property and equipment, net
7,321
8,223
Operating lease right-of-use assets
10,526
13,876
Goodwill
99,175
99,175
Deferred income tax assets, net
46,260
52,398
Other non-current assets
510
754
Total non-current assets
163,792
174,426
Total assets
$
227,684
$
244,477
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
5,969
$
5,880
Accrued compensation and benefits
7,284
11,628
Deferred revenue
26,298
27,255
Operating lease liabilities
4,184
5,096
Other current liabilities
4,273
4,573
Total current liabilities
48,008
54,432
Non-current liabilities:
Asset retirement obligations
7,191
7,237
Operating lease liabilities
6,902
10,604
Other non-current liabilities
1,812
1,107
Total non-current liabilities
15,905
18,948
Total liabilities
63,913
73,380
Commitments and contingencies
Stockholders' equity:
Preferred stock
$
—
$
—
Common stock
2
2
Additional paid-in capital
102,936
99,908
Accumulated other comprehensive loss
(1,764
)
(1,909
)
Retained earnings
62,597
73,096
Total stockholders' equity
163,771
171,097
Total liabilities and stockholders'
equity
$
227,684
$
244,477
SPOK HOLDINGS, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited and in
thousands)
For the year ended
12/31/2023
12/31/2022
Operating activities:
Net income
$
15,666
$
21,856
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, amortization and
accretion
4,496
3,571
Valuation allowance
—
(21,850
)
Deferred income tax expense
6,378
903
Stock-based compensation
4,063
3,827
Provisions for credit losses, service
credits and other
950
1,777
Changes in assets and liabilities:
Accounts receivable
2,580
(1,757
)
Prepaid expenses and other assets
(909
)
(88
)
Net operating lease liabilities
(1,264
)
357
Accounts payable, accrued liabilities and
other
(5,217
)
(2,258
)
Deferred revenue
(559
)
118
Net cash provided by operating
activities
26,184
6,456
Investing activities:
Purchases of property and equipment
(3,417
)
(3,776
)
Purchase of short-term investments
—
(14,967
)
Maturity of short-term investments
—
30,000
Net cash (used in) provided by
investing activities
(3,417
)
11,257
Financing activities:
Cash distributions to stockholders
(25,642
)
(25,011
)
Proceeds from issuance of common stock
under the Employee Stock Purchase Plan
210
—
Purchase of common stock for tax
withholding on vested equity awards
(1,245
)
(1,210
)
Net cash used in financing
activities
(26,677
)
(26,221
)
Effect of exchange rate on cash and cash
equivalents
145
(321
)
Net decrease in cash and cash
equivalents
(3,765
)
(8,829
)
Cash and cash equivalents, beginning of
period
35,754
44,583
Cash and cash equivalents, end of
period
$
31,989
$
35,754
Supplemental disclosure:
Income taxes paid
$
179
$
223
SPOK HOLDINGS, INC.
UNITS IN SERVICE, MARKET
SEGMENTS,
AND AVERAGE REVENUE PER UNIT
(ARPU)
(Unaudited and in thousands)
For the three months
ended
12/31/2023
9/30/2023
6/30/2023
3/31/2023
12/31/2022
9/30/2022
6/30/2022
3/31/2022
Account size ending units in service
(000's)
1 to 100 units
44
46
48
48
50
51
53
54
101 to 1,000 units
142
143
144
149
147
147
149
150
>1,000 units
579
596
614
614
620
626
633
634
Total
765
785
806
811
817
824
835
838
Market segment as a percent of total
ending units in service
Healthcare
85.9
%
86.0
%
86.1
%
85.7
%
85.4
%
85.0
%
85.0
%
84.7
%
Government
4.2
%
4.2
%
4.2
%
4.3
%
4.4
%
4.1
%
4.2
%
4.7
%
Large enterprise
4.1
%
4.1
%
4.0
%
4.1
%
4.0
%
3.9
%
4.0
%
3.9
%
Other(1)
5.8
%
5.7
%
5.7
%
5.9
%
6.2
%
7.0
%
6.8
%
6.7
%
Total
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
100.0
%
Account size ARPU
1 to 100 units
$
12.57
$
12.02
$
11.91
$
12.03
$
11.95
$
11.80
$
11.41
$
11.52
101 to 1,000 units
9.16
8.75
8.56
8.75
8.66
8.44
8.27
8.24
>1,000 units
7.15
6.97
6.94
6.95
6.86
6.69
6.63
6.64
Total
$
7.84
$
7.59
$
7.53
$
7.59
$
7.50
$
7.40
$
7.23
$
7.24
(1) Other includes hospitality, resort and
indirect units
RECONCILIATION OF ADJUSTED
OPERATING EXPENSES
(Unaudited and in
thousands)
For the three months
ended
For the year ended
12/31/2023
12/31/2022
12/31/2023
12/31/2022
Operating expenses
$
29,871
$
30,300
$
117,797
$
134,296
Add back:
Depreciation, amortization and
accretion
(728
)
(938
)
(4,496
)
(3,571
)
Severance and restructuring
(378
)
(881
)
(573
)
(7,329
)
Adjusted operating expenses
$
28,765
$
28,481
$
112,728
$
123,396
RECONCILIATION OF ADJUSTED
EBITDA
(Unaudited and in
thousands)
For the three months
ended
For the year ended
12/31/2023
12/31/2022
12/31/2023
12/31/2022
Net income
(1)
$
3,365
$
24,226
$
15,666
$
21,856
Add back:
Provision for (benefit from) income
taxes
993
(20,988
)
6,659
(20,859
)
(Other income) expense
(43
)
(57
)
2
(167
)
Interest income
(233
)
(226
)
(1,099
)
(592
)
Depreciation and accretion
728
938
4,496
3,571
EBITDA
$
4,810
$
3,893
$
25,724
$
3,809
Adjustments:
Stock-based compensation
1,321
873
4,045
3,827
Severance and restructuring
378
881
573
7,329
Adjusted EBITDA
$
6,509
$
5,647
$
30,342
$
14,965
(1) For the three months and year ended
December 31, 2022 Net income includes a non-cash benefit of $21.9
million related to the release of a previously established
valuation allowance in alignment with our projections of future
taxable income.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221290700/en/
Al Galgano 952-224-6096 al.galgano@spok.com
Spok (NASDAQ:SPOK)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Spok (NASDAQ:SPOK)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024