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Spok(SPOK) - 2024 Q3 - Quarterly Results
SPOKSpok(SPOK)2024-10-30 20:02

Financial Performance - Total revenue for Q3 2024 was 34.87million,adecreaseof1.634.87 million, a decrease of 1.6% compared to 35.43 million in Q3 2023[4] - Net income for Q3 2024 was 3.66million,down17.83.66 million, down 17.8% from 4.45 million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was 7.53million,adeclineof10.57.53 million, a decline of 10.5% from 8.42 million in Q3 2023[4] - Operating income for Q3 2024 was 4,961,000,representing14.24,961,000, representing 14.2% of total revenue, down from 17.5% in Q3 2023[19] - Total operating expenses increased to 29,909,000, which is 85.8% of total revenue, compared to 82.5% in the prior year[19] - Net income for the nine months ended September 30, 2024, was 11,321,000,downfrom11,321,000, down from 12,301,000 for the same period in 2023[22] - Adjusted EBITDA for the three months ended September 30, 2024, was 7,534,000,downfrom7,534,000, down from 8,422,000 in the same period last year, a decrease of 10.6%[26] Revenue Breakdown - Wireless average revenue per unit (ARPU) was 7.95inQ32024,reflectinganearly57.95 in Q3 2024, reflecting a nearly 5% year-over-year growth[2] - Wireless revenue decreased to 18,261,000, down 3.7% from 18,972,000year−over−year[19]−Softwarerevenueincreasedslightlyto18,972,000 year-over-year[19] - Software revenue increased slightly to 16,609,000, compared to 16,456,000inthesamequarterlastyear[19]−Softwareoperationsbookingsreached16,456,000 in the same quarter last year[19] - Software operations bookings reached 10.4 million in Q3 2024, a 64.4% increase year-over-year, marking the highest total in six years[2] - Software backlog increased to 63.6millionasofSeptember30,2024,upmorethan1963.6 million as of September 30, 2024, up more than 19% from the prior year quarter[2] Cash and Assets - Cash and cash equivalents increased by nearly 4.0 million in Q3 2024, totaling 27.8millionasofSeptember30,2024[2]−Cashandcashequivalentsattheendoftheperiodwere27.8 million as of September 30, 2024[2] - Cash and cash equivalents at the end of the period were 27,830,000, a decrease from 31,989,000atthebeginningoftheperiod[22]−Totalassetsdecreasedto31,989,000 at the beginning of the period[22] - Total assets decreased to 216,762,000 from 227,684,000attheendof2023[21]−Totalliabilitiesdecreasedto227,684,000 at the end of 2023[21] - Total liabilities decreased to 60,474,000 from 63,913,000attheendof2023[21]−Stockholders′equitydecreasedto63,913,000 at the end of 2023[21] - Stockholders' equity decreased to 156,288,000 from 163,771,000attheendof2023[21]CapitalandExpenses−CapitalreturnedtostockholdersinQ32024totaled163,771,000 at the end of 2023[21] Capital and Expenses - Capital returned to stockholders in Q3 2024 totaled 6.33 million, a 1.4% increase from 6.24millioninQ32023[4]−Researchanddevelopmentcostsforthefirstninemonthsof2024amountedto6.24 million in Q3 2023[4] - Research and development costs for the first nine months of 2024 amounted to 9.0 million, supporting future growth initiatives[2] - Adjusted operating expenses for the three months ended September 30, 2024, were 28,509,000,comparedto28,509,000, compared to 27,871,000 for the same period last year, an increase of 2.3%[25] - Total adjusted operating expenses for the nine months ended September 30, 2024, were 85,123,000,comparedto85,123,000, compared to 83,963,000 for the same period last year, an increase of 1.4%[25] Units in Service - Total units in service decreased to 730,000 as of September 30, 2024, down from 765,000 a year earlier, representing a decline of 4.6%[23] - The number of units in the >1,000 units category decreased to 564,000 from 579,000 in the previous quarter, a decline of 2.6%[23] - Healthcare segment accounted for 85.7% of total ending units in service, slightly down from 86.1% in the previous quarter[24] - The government segment represented 4.1% of total ending units in service, consistent with the previous quarter's performance[24] Average Revenue Per Unit - Average Revenue Per Unit (ARPU) for units with 1 to 100 units increased to 12.70,upfrom12.70, up from 12.51 in the previous quarter, reflecting a growth of 1.5%[24] - The ARPU for units with >1,000 units increased to 7.33,upfrom7.33, up from 7.21 in the previous quarter, reflecting a growth of 1.7%[24]