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Spok Reports Second Quarter 2024 Results

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Spok Holdings (NASDAQ: SPOK) reported their Q2 2024 financial results. Key highlights include software operations bookings rising 10.3% from Q1 2024 to $8.7 million. The software backlog reached $55 million, a 4% increase year-over-year. Wireless ARPU increased to $7.84. However, total revenue decreased by 6.8% to $33.98 million. Net income declined to $3.43 million, a 27.6% drop from the previous year. Adjusted EBITDA fell 17.2% to $7.05 million. The company reaffirmed its FY 2024 guidance, projecting total revenue between $136 million and $144 million and adjusted EBITDA between $27.5 million and $32.5 million. A quarterly dividend of $0.3125 per share was declared, payable on September 9, 2024.

Spok Holdings (NASDAQ: SPOK) ha riportato i risultati finanziari del secondo trimestre 2024. Tra i punti salienti, gli ordini delle operazioni software sono aumentati del 10,3% rispetto al primo trimestre 2024, raggiungendo i 8,7 milioni di dollari. L'arretrato del software ha raggiunto i 55 milioni di dollari, con un incremento del 4% rispetto all'anno precedente. L'ARPU wireless è aumentato a 7,84 dollari. Tuttavia, il fatturato totale è diminuito del 6,8%, scendendo a 33,98 milioni di dollari. Il reddito netto è calato a 3,43 milioni di dollari, con un abbassamento del 27,6% rispetto all'anno scorso. L'EBITDA rettificato è sceso del 17,2%, arrivando a 7,05 milioni di dollari. L'azienda ha confermato le previsioni per l'anno fiscale 2024, prevedendo un fatturato totale tra i 136 milioni e i 144 milioni di dollari e un EBITDA rettificato tra i 27,5 milioni e i 32,5 milioni di dollari. Un dividendo trimestrale di 0,3125 dollari per azione è stato dichiarato, pagabile il 9 settembre 2024.

Spok Holdings (NASDAQ: SPOK) informó sobre sus resultados financieros del segundo trimestre de 2024. Los aspectos más destacados incluyen un aumento del 10,3% en las reservas de operaciones de software desde el primer trimestre de 2024, alcanzando los 8,7 millones de dólares. El backlog de software llegó a 55 millones de dólares, un incremento del 4% interanual. El ARPU inalámbrico aumentó a 7,84 dólares. Sin embargo, los ingresos totales disminuyeron un 6,8%, alcanzando los 33,98 millones de dólares. La utilidad neta cayó a 3,43 millones de dólares, una caída del 27,6% en comparación con el año anterior. El EBITDA ajustado disminuyó un 17,2% a 7,05 millones de dólares. La compañía reafirmó su guía para el año fiscal 2024, proyectando ingresos totales entre 136 millones y 144 millones de dólares y un EBITDA ajustado entre 27,5 millones y 32,5 millones de dólares. Se declaró un dividendo trimestral de 0,3125 dólares por acción, que se pagará el 9 de septiembre de 2024.

스포크 홀딩스( NASDAQ: SPOK )가 2024년 2분기 재무 결과를 발표했습니다. 주요 하이라이트에는 소프트웨어 운영 주문이 2024년 1분기 대비 10.3% 증가하여 870만 달러에 이르렀습니다. 소프트웨어 백로그는 5500만 달러에 도달하여 전년 대비 4% 증가했습니다. 무선 ARPU는 7.84달러로 증가했습니다. 그러나 전체 수익은 6.8% 감소하여 3,398만 달러로 줄었습니다. 순이익은 343만 달러로 감소했으며, 이는 지난해보다 27.6% 줄어든 수치입니다. 조정된 EBITDA는 17.2% 감소하여 705만 달러에 이르렀습니다. 회사는 2024 회계연도 가이던스를 재확인하며, 총 수익이 1억 3,600만 달러에서 1억 4,400만 달러 사이, 조정된 EBITDA가 2,750만 달러에서 3,250만 달러 사이에 이를 것으로 예상하고 있습니다. 주당 0.3125달러의 분기 배당금이 선언 되었으며, 2024년 9월 9일에 지급될 예정입니다.

Spok Holdings (NASDAQ: SPOK) a annoncé ses résultats financiers pour le deuxième trimestre 2024. Parmi les principaux points, les réservations des opérations logicielles ont augmenté de 10,3 % par rapport au premier trimestre 2024, atteignant 8,7 millions de dollars. Le carnet de commandes des logiciels a atteint 55 millions de dollars, soit une augmentation de 4 % par rapport à l'année précédente. L'ARPU sans fil a augmenté à 7,84 dollars. Cependant, le chiffre d'affaires total a diminué de 6,8 % pour atteindre 33,98 millions de dollars. Le bénéfice net a chuté à 3,43 millions de dollars, une baisse de 27,6 % par rapport à l'année dernière. L'EBITDA ajusté a baissé de 17,2 % pour atteindre 7,05 millions de dollars. L'entreprise a réaffirmé ses prévisions pour l'exercice 2024, prévoyant un chiffre d'affaires total compris entre 136 millions et 144 millions de dollars et un EBITDA ajusté compris entre 27,5 millions et 32,5 millions de dollars. Un dividende trimestriel de 0,3125 dollar par action a été déclaré, payable le 9 septembre 2024.

Spok Holdings (NASDAQ: SPOK) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht. Zu den wichtigsten Punkten gehört ein Anstieg der Softwarebetriebsbuchungen um 10,3% gegenüber dem ersten Quartal 2024 auf 8,7 Millionen Dollar. Der Software-Rückstand erreichte 55 Millionen Dollar, ein Anstieg von 4% im Jahresvergleich. Der kabellose ARPU stieg auf 7,84 Dollar. Allerdings sank der Gesamterlös um 6,8% auf 33,98 Millionen Dollar. Der Nettogewinn fiel auf 3,43 Millionen Dollar, was einem Rückgang von 27,6% im Vergleich zum Vorjahr entspricht. Das bereinigte EBITDA fiel um 17,2% auf 7,05 Millionen Dollar. Das Unternehmen bestätigte seine Prognose für das Geschäftsjahr 2024 und geht von einem Gesamterlös zwischen 136 Millionen und 144 Millionen Dollar sowie einem bereinigten EBITDA zwischen 27,5 Millionen und 32,5 Millionen Dollar aus. Eine vierteljährliche Dividende von 0,3125 Dollar pro Aktie wurde erklärt, zahlbar am 9. September 2024.

Positive
  • Software operations bookings up 10.3% from Q1 2024 to $8.7 million.
  • Software backlog increased by 4% year-over-year to $55 million.
  • Wireless ARPU increased to $7.84.
  • Quarterly dividend of $0.3125 per share declared.
Negative
  • Total revenue decreased by 6.8% to $33.98 million.
  • Net income declined by 27.6% to $3.43 million.
  • Adjusted EBITDA fell by 17.2% to $7.05 million.
  • Cash and cash equivalents decreased by 22.6% to $23.88 million.

Insights

Spok's Q2 2024 results present a mixed picture. While software operations bookings increased 10.3% quarter-over-quarter to $8.7 million, overall revenue declined 6.8% year-over-year to $33.98 million. This decline was primarily driven by a 54% drop in software license revenue and a 3.1% decrease in wireless revenue.

The company's focus on maintaining cash flow and returning capital to shareholders is evident, with $6.3 million returned in Q2. However, the 27.6% decrease in net income to $3.43 million raises concerns about profitability.

Positively, the software backlog grew 3.6% year-over-year to $55 million, indicating potential future revenue. The increase in wireless ARPU to $7.84 is also encouraging, although the continuing decline in wireless units in service (-7.3% YoY) suggests an ongoing shift in the business model.

Management's reiterated guidance for 2024, projecting total revenue between $136 million and $144 million, implies confidence in their strategy. However, investors should closely monitor the company's ability to convert its software backlog into revenue and manage the decline in its wireless business.

Spok's Q2 results highlight the ongoing transition in the healthcare communications sector. The 10.3% increase in software operations bookings is promising, indicating growing demand for Spok's software solutions. However, the sharp decline in license revenue (-54%) suggests a shift towards service-based models, which could impact short-term revenue but potentially lead to more stable, recurring income streams.

The company's investment in R&D, totaling $6.1 million in the first half of 2024, is important for maintaining competitiveness in the rapidly evolving healthcare tech landscape. This investment, coupled with the growing software backlog, positions Spok to capitalize on emerging opportunities in healthcare communications.

The decline in hardware revenue (-64.2%) aligns with broader industry trends towards cloud-based and software-centric solutions. Spok's ability to adapt to this shift will be critical for its long-term success.

While the wireless segment continues to decline, its slower pace of attrition (0.8% quarterly net unit churn) and increasing ARPU suggest effective management of this legacy business. This could provide a stable cash flow to fund innovation in the software segment.

Software Operations Bookings Up 10.3% From Prior Quarter

Year-Over-Year Software Revenue Performance Driven by Growth in Maintenance and Services

ALEXANDRIA, Va.--(BUSINESS WIRE)-- 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

 

 

 

 

 

 

 

 

 

 

 

Wireless revenue

 

 

 

 

 

 

 

 

 

 

 

Paging revenue

$

17,633

 

$

18,271

 

(3.5

)%

 

$

35,603

 

$

36,796

 

(3.2

)%

Product and other revenue

 

664

 

 

606

 

9.6

%

 

 

1,289

 

 

1,109

 

16.2

%

Total wireless revenue

$

18,297

 

$

18,877

 

(3.1

)%

 

$

36,892

 

$

37,905

 

(2.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

Software revenue

 

 

 

 

 

 

 

 

 

 

 

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

)%

 

 

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

 

 

 

 

 

 

 

 

 

 

 

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

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

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

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Wireless units in service (000's)

 

747

 

 

806

 

(7.3

)%

 

 

747

 

 

806

 

(7.3

)%

Wireless average revenue per unit (ARPU)

$

7.84

 

$

7.53

 

4.1

%

 

$

7.85

 

$

7.56

 

3.8

%

Software operations bookings(1)

$

8,695

 

$

14,010

 

(37.9

)%

 

$

16,580

 

$

19,688

 

(15.8

)%

Software backlog (as of period end)(2)

$

55,006

 

$

53,075

 

3.6

%

 

$

55,006

 

$

53,075

 

3.6

%

(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.

(2) Software backlog excludes $6.0 million and $3.9 million of contractual obligations that are deemed cancellable by the customer without significant penalty as of June 30, 2024 and 2023, respectively.

Financial Outlook:

Regarding financial guidance, the Company reiterated the following expectations 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

2024 Second Quarter Call:

Management will host a conference call and webcast to discuss these financial results on Wednesday, July 24, 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, July 24, 2024, at 5:00 p.m. ET

Webcast:

 

Q2 2024 Earnings Results (webcast-eqs.com)

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 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 70 million messages each month through their Spok® solutions. Spok enables smarter, faster clinical communication. For more information, visit spok.com.

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 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 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 cyberattacks 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.

Tables to Follow

 

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 six months ended

 

 

6/30/2024

 

6/30/2023

 

6/30/2024

 

6/30/2023

Revenue:

 

 

 

 

 

 

 

 

Wireless

 

$

18,297

 

 

$

18,877

 

 

$

36,892

 

 

$

37,905

 

Software

 

 

15,685

 

 

 

17,586

 

 

 

31,999

 

 

 

31,738

 

Total revenue

 

 

33,982

 

 

 

36,463

 

 

 

68,891

 

 

 

69,643

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenue (exclusive of items shown separately below)

 

 

7,163

 

 

 

6,727

 

 

 

14,302

 

 

 

13,263

 

Research and development

 

 

3,176

 

 

 

2,853

 

 

 

6,127

 

 

 

5,346

 

Technology operations

 

 

6,181

 

 

 

6,452

 

 

 

12,480

 

 

 

13,039

 

Selling and marketing

 

 

3,506

 

 

 

4,354

 

 

 

7,655

 

 

 

8,255

 

General and administrative

 

 

8,067

 

 

 

8,489

 

 

 

16,051

 

 

 

16,189

 

Depreciation and accretion

 

 

1,067

 

 

 

1,265

 

 

 

2,135

 

 

 

2,501

 

Severance and restructuring

 

 

348

 

 

 

108

 

 

 

776

 

 

 

118

 

Total operating expenses

 

 

29,508

 

 

 

30,248

 

 

 

59,526

 

 

 

58,711

 

% of total revenue

 

 

86.8

%

 

 

83.0

%

 

 

86.4

%

 

 

84.3

%

Operating income

 

 

4,474

 

 

 

6,215

 

 

 

9,365

 

 

 

10,932

 

% of total revenue

 

 

13.2

%

 

 

17.0

%

 

 

13.6

%

 

 

15.7

%

Interest income

 

 

391

 

 

 

354

 

 

 

645

 

 

 

626

 

Other expense

 

 

(14

)

 

 

(138

)

 

 

(16

)

 

 

(85

)

Income before income taxes

 

 

4,851

 

 

 

6,431

 

 

 

9,994

 

 

 

11,473

 

Provision for income taxes

 

 

(1,426

)

 

 

(1,698

)

 

 

(2,333

)

 

 

(3,623

)

Net income

 

$

3,425

 

 

$

4,733

 

 

$

7,661

 

 

$

7,850

 

Basic net income per common share

 

$

0.17

 

 

$

0.24

 

 

$

0.38

 

 

$

0.39

 

Diluted net income per common share

 

$

0.17

 

 

$

0.23

 

 

$

0.37

 

 

$

0.39

 

Basic weighted average common shares outstanding

 

 

20,252,452

 

 

 

19,957,786

 

 

 

20,211,500

 

 

 

19,927,782

 

Diluted weighted average common shares outstanding

 

 

20,473,751

 

 

 

20,255,248

 

 

 

20,500,335

 

 

 

20,266,914

 

Cash dividends declared per common share

 

 

0.3125

 

 

 

0.3125

 

 

 

0.6250

 

 

 

0.6250

 

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

6/30/2024

 

12/31/2023

 

 

 

 

 

ASSETS

 

(Unaudited)

 

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

23,875

 

 

$

31,989

 

Accounts receivable, net

 

 

22,824

 

 

 

23,314

 

Prepaid expenses

 

 

8,590

 

 

 

7,885

 

Other current assets

 

 

858

 

 

 

704

 

Total current assets

 

 

56,147

 

 

 

63,892

 

Non-current assets:

 

 

 

 

Property and equipment, net

 

 

7,056

 

 

 

7,321

 

Operating lease right-of-use assets

 

 

9,177

 

 

 

10,526

 

Goodwill

 

 

99,175

 

 

 

99,175

 

Deferred income tax assets, net

 

 

43,939

 

 

 

46,260

 

Other non-current assets

 

 

883

 

 

 

510

 

Total non-current assets

 

 

160,230

 

 

 

163,792

 

Total assets

 

$

216,377

 

 

$

227,684

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

5,418

 

 

$

5,969

 

Accrued compensation and benefits

 

 

4,922

 

 

 

7,284

 

Deferred revenue

 

 

25,239

 

 

 

26,298

 

Operating lease liabilities

 

 

3,352

 

 

 

4,184

 

Other current liabilities

 

 

4,425

 

 

 

4,273

 

Total current liabilities

 

 

43,356

 

 

 

48,008

 

Non-current liabilities:

 

 

 

 

Asset retirement obligations

 

 

7,197

 

 

 

7,191

 

Operating lease liabilities

 

 

6,374

 

 

 

6,902

 

Other non-current liabilities

 

 

1,238

 

 

 

1,812

 

Total non-current liabilities

 

 

14,809

 

 

 

15,905

 

Total liabilities

 

 

58,165

 

 

 

63,913

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

$

 

 

$

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

102,946

 

 

 

102,936

 

Accumulated other comprehensive loss

 

 

(1,770

)

 

 

(1,764

)

Retained earnings

 

 

57,034

 

 

 

62,597

 

Total stockholders' equity

 

 

158,212

 

 

 

163,771

 

Total liabilities and stockholders' equity

 

$

216,377

 

 

$

227,684

 

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

 

 

 

 

 

For the six months ended

 

6/30/2024

 

6/30/2023

Operating activities:

 

 

 

Net income

$

7,661

 

 

$

7,850

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and accretion

 

2,135

 

 

 

2,501

 

Deferred income tax expense

 

2,313

 

 

 

3,602

 

Stock-based compensation

 

2,307

 

 

 

1,859

 

Provisions for credit losses, service credits and other

 

262

 

 

 

222

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

223

 

 

 

1,168

 

Prepaid expenses and other assets

 

(1,232

)

 

 

(653

)

Net operating lease liabilities

 

(11

)

 

 

(324

)

Accounts payable, accrued liabilities and other

 

(3,046

)

 

 

(1,745

)

Deferred revenue

 

(1,192

)

 

 

(3,282

)

Net cash provided by operating activities

 

9,420

 

 

 

11,198

 

Investing activities:

 

 

 

Purchases of property and equipment

 

(1,516

)

 

 

(1,815

)

Net cash used in investing activities

 

(1,516

)

 

 

(1,815

)

Financing activities:

 

 

 

Cash distributions to stockholders

 

(13,715

)

 

 

(13,163

)

Proceeds from issuance of common stock under the Employee Stock Purchase Plan

 

131

 

 

 

90

 

Purchase of common stock for tax withholding on vested equity awards

 

(2,428

)

 

 

(1,245

)

Net cash used in financing activities

 

(16,012

)

 

 

(14,318

)

Effect of exchange rate on cash and cash equivalents

 

(6

)

 

 

47

 

Net decrease in cash and cash equivalents

 

(8,114

)

 

 

(4,888

)

Cash and cash equivalents, beginning of period

 

31,989

 

 

 

35,754

 

Cash and cash equivalents, end of period

$

23,875

 

 

$

30,866

 

Supplemental disclosure:

 

 

 

Income taxes paid

$

241

 

 

$

253

 

SPOK HOLDINGS, INC.

UNITS IN SERVICE, MARKET SEGMENTS,

AND AVERAGE REVENUE PER UNIT (ARPU)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

6/30/2024

 

3/31/2024

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

 

9/30/2022

Account size ending units in service (000's)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

 

42

 

 

 

43

 

 

 

44

 

 

 

46

 

 

 

48

 

 

 

48

 

 

 

50

 

 

 

51

 

101 to 1,000 units

 

 

128

 

 

 

135

 

 

 

142

 

 

 

143

 

 

 

144

 

 

 

149

 

 

 

147

 

 

 

147

 

>1,000 units

 

 

577

 

 

 

575

 

 

 

579

 

 

 

596

 

 

 

614

 

 

 

614

 

 

 

620

 

 

 

626

 

Total

 

 

747

 

 

 

753

 

 

 

765

 

 

 

785

 

 

 

806

 

 

 

811

 

 

 

817

 

 

 

824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market segment as a percent of total ending units in service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare

 

 

85.8

%

 

 

86.1

%

 

 

85.9

%

 

 

86.0

%

 

 

86.1

%

 

 

85.7

%

 

 

85.4

%

 

 

85.0

%

Government

 

 

4.4

%

 

 

4.1

%

 

 

4.2

%

 

 

4.2

%

 

 

4.2

%

 

 

4.3

%

 

 

4.4

%

 

 

4.1

%

Large enterprise

 

 

4.0

%

 

 

3.9

%

 

 

4.1

%

 

 

4.1

%

 

 

4.0

%

 

 

4.1

%

 

 

4.0

%

 

 

3.9

%

Other(1)

 

 

5.8

%

 

 

5.9

%

 

 

5.8

%

 

 

5.7

%

 

 

5.7

%

 

 

5.9

%

 

 

6.2

%

 

 

7.0

%

Total

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account size ARPU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

$

12.51

 

 

$

12.66

 

 

$

12.57

 

 

$

12.02

 

 

$

11.91

 

 

$

12.03

 

 

$

11.95

 

 

$

11.80

 

101 to 1,000 units

 

 

9.06

 

 

 

9.14

 

 

 

9.16

 

 

 

8.75

 

 

 

8.56

 

 

 

8.75

 

 

 

8.66

 

 

 

8.44

 

>1,000 units

 

 

7.21

 

 

 

7.23

 

 

 

7.15

 

 

 

6.97

 

 

 

6.94

 

 

 

6.95

 

 

 

6.86

 

 

 

6.69

 

Total

 

$

7.84

 

 

$

7.89

 

 

$

7.84

 

 

$

7.59

 

 

$

7.53

 

 

$

7.59

 

 

$

7.50

 

 

$

7.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Other includes hospitality, resort and indirect units

RECONCILIATION OF ADJUSTED OPERATING EXPENSES

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months ended

 

 

6/30/2024

 

6/30/2023

 

6/30/2024

 

6/30/2023

Operating expenses

 

$

29,508

 

 

$

30,248

 

 

$

59,526

 

 

$

58,711

 

Add back:

 

 

 

 

 

 

 

 

Depreciation and accretion

 

 

(1,067

)

 

 

(1,265

)

 

 

(2,135

)

 

 

(2,501

)

Severance and restructuring

 

 

(348

)

 

 

(108

)

 

 

(776

)

 

 

(118

)

Adjusted operating expenses

 

$

28,093

 

 

$

28,875

 

 

$

56,615

 

 

$

56,092

 

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months ended

 

 

6/30/2024

 

6/30/2023

 

6/30/2024

 

6/30/2023

Net income

 

$

3,425

 

 

$

4,733

 

 

$

7,661

 

 

$

7,850

 

Add back:

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

1,426

 

 

 

1,698

 

 

 

2,333

 

 

 

3,623

 

Other expense

 

 

14

 

 

 

138

 

 

 

16

 

 

 

85

 

Interest income

 

 

(391

)

 

 

(354

)

 

 

(645

)

 

 

(626

)

Depreciation and accretion

 

 

1,067

 

 

 

1,265

 

 

 

2,135

 

 

 

2,501

 

EBITDA

 

$

5,541

 

 

$

7,480

 

 

$

11,500

 

 

$

13,433

 

Adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

1,159

 

 

 

923

 

 

 

2,307

 

 

 

1,859

 

Severance and restructuring

 

 

348

 

 

 

108

 

 

 

776

 

 

 

118

 

Adjusted EBITDA

 

$

7,048

 

 

$

8,511

 

 

$

14,583

 

 

$

15,410

 

 

Al Galgano

952-224-6096

al.galgano@spok.com

Source: Spok Holdings, Inc.

FAQ

What were Spok Holdings' software operations bookings for Q2 2024?

Spok Holdings' software operations bookings for Q2 2024 were $8.7 million, an increase of 10.3% from Q1 2024.

How much did Spok Holdings' net income decline in Q2 2024?

Spok Holdings' net income declined by 27.6% to $3.43 million in Q2 2024.

What is the declared quarterly dividend for Spok Holdings?

The declared quarterly dividend for Spok Holdings is $0.3125 per share, payable on September 9, 2024.

What is Spok Holdings' revenue guidance for FY 2024?

Spok Holdings' revenue guidance for FY 2024 is between $136 million and $144 million.

What was Spok Holdings' adjusted EBITDA for Q2 2024?

Spok Holdings' adjusted EBITDA for Q2 2024 was $7.05 million, a decline of 17.2% from the previous year.

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