Spok(SPOK) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $33.9 million, a slight decrease of 0.2% compared to Q4 2023, while total revenue for the year was$ 137.7 million, down 1.0% from 2023[9] - Operating income for the year ended December 31, 2024, was $18,965,000, a decrease of 10.6% from$ 21,228,000 in 2023[29] - Net income for the year ended December 31, 2024, was $14,965,000, down 4.5% from$ 15,666,000 in the previous year[33] - Net income for Q4 2024 increased to $3,644,000 compared to$ 3,365,000 in Q4 2023, marking an increase of 8.29%[39] - Adjusted EBITDA for the year ended December 31, 2024, was $29,173,000, down from$ 30,342,000 in 2023, a decrease of 3.85%[39] Revenue Breakdown - Software operations bookings reached $7.1 million in Q4 2024, a 73.2% increase from Q4 2023, contributing to total bookings of$ 34.1 million for the year, up 13.2% year-over-year[3] - The software backlog was $62.4 million as of December 31, 2024, reflecting a nearly 22% increase from the previous year[3] - Average revenue per unit (ARPU) for Wireless in Q4 2024 was$ 8.16, up more than 4% year-over-year[3] - Wireless revenue decreased to $18,370,000 for the three months ended December 31, 2024, down 3.8% from$ 19,091,000 in the prior year[29] - Software revenue increased to $15,522,000 for the three months ended December 31, 2024, up 4.4% from$ 14,862,000 in the same period last year[29] Expenses and Investments - Research and development costs totaled $11.5 million in 2024, supporting the company's investment in future growth[3] - Total operating expenses for the year ended December 31, 2024, were$ 118,688,000, an increase of 0.8% from $117,797,000 in 2023[29] - Adjusted operating expenses for Q4 2024 were$ 28,313,000, a decrease from $28,765,000 in Q4 2023, reflecting a reduction of 1.57%[37] Shareholder Returns - The company returned$ 6.3 million to stockholders in Q4 2024, a 1.6% increase from the previous year[9] - Cash dividends declared per common share remained constant at $0.3125 for both the three months ended December 31, 2024, and December 31, 2023[29] Guidance and Future Outlook - The company expects 2025 total revenue guidance to be between$ 134.0 million and $142.0 million, with software revenue projected between$ 65.0 million and $70.0 million[12] Operational Metrics - The number of wireless units in service decreased by 5.9% year-over-year to 720,000[11] - Total account size ending units in service decreased to 720,000 from 730,000 in the previous quarter, representing a decline of 1.37%[35] - Healthcare segment accounts for 85.6% of total ending units in service, slightly down from 85.7% in the previous quarter[35] - The average revenue per user (ARPU) for accounts with 1 to 100 units increased to$ 13.08 from $12.70 in the previous quarter, a rise of 2.99%[35] - The number of accounts with more than 1,000 units remained stable at 560,000, unchanged from the previous quarter[35] - The percentage of large enterprise accounts remained stable at 3.9% of total ending units in service[35] Assets and Cash Position - Total assets decreased to$ 217,103,000 as of December 31, 2024, from $227,684,000 as of December 31, 2023[31] - Cash and cash equivalents at the end of the period were$ 29,145,000, down from $31,989,000 at the end of the previous year[33] Tax Provisions - The company reported a provision for income taxes of$ 1,244,000 for Q4 2024, compared to $993,000 in Q4 2023, an increase of 25.31%[39]