Recent SPOK transcripts
Associated SPOK filings
Mike Wallace | Chief Operating Officer & Chief Financial Officer |
Vince Kelly | President & Chief Executive Officer |
Ryan Vardeman | Palogic |
Ladies and gentlemen, good morning and welcome to Spok's 2021 First Quarter Investor Call. Today's call is being recorded. On line today we have Mr. Vince Kelly, President and Chief Executive Officer; and Mr. Mike Wallace, Chief Operating Officer and Chief Financial Officer. opening will for over the time Mr. to this comments, turn I call At Wallace. sir. ahead go Please
Good for Thank investor morning. you update. first our quarter XXXX joining us for
which statements that upon I estimates Before include that statements those estimates These on statements and financial to statements. forward-looking relating conference expenses to dependent operating and plans as discuss statements uncertainties future Spok's subject represent intended the call this to conditions. or income results, of events or assurance and results. as Spok's we not remind include revenue our actual are future are other of everyone give in as are the may only to call from today's risks forward-looking results anticipated these business any actual materially conference may to Such could predictive company's want and well future performance. date differ
Vince. file believes upon the the Although Please With obligation that, reasonable risk based to review and we which operations expect these related filings subject statements factors Please our filed they calls. and conference are forward-looking turn present the Exchange and section Spok assumptions in environment to Form note to XXXX to risks statements assumes I'll today call uncertainties. any compete with we documents update which business Securities related that later are to XX-Q over Commission. and no our be to and the past company contained that the or
update on you call. joining XXXX our quarter good and Thank morning. us Mike for Thanks first everyone
new very from operationally with safe. and are have and backlog. to an recently work full we're us indicators lost another speedy We're positive employee unavailable we've down challenging essentially now most your friends COVID we of As that always I recovery. had business along customers for all financially quarter, with hope first spouse. the and XXXX, and our year. Unfortunately, our to their praying were employee his a right -- and existing In for families recovering In down down were hard and install are another you remain customers we saw of with shut
and As priority pandemic went vital IT, care, enterprise respiratory administration science primary the products a moved Health result patient PPE. offices companies list. and software of That starting our to is monitoring focus business very and year new equipment Spok to understandably professionals That and the shut spending down on like home. from change. equipment for care all followed the many our including business and stopped down ours lab medication and of prospect teams to Like difficult essentially last working travel. sales for health advice while it made
access new pandemic on over their with new select and furloughs install focus to Spok unable facilities grant thanking R&D effectively even Early were for sell product heard customers results to the is we us our that us projects. year together and existing our to from continue Our across-the-board decisions. keep steps implementing impact Go, we in product to base a or just approach last would cash projects can't we The knew Zoom. this employee RIF. our and feedback team preserve our like versus took empathizing by investing significant We reality
albeit hybrid in in canceling second as the a are year of to office and environment to slowly we this for economy reopens announce those We manner. returns an furloughs half pleased are the travel
business. significant our this communications from we a integrated and clinical to preserved of quarter, company successfully our have We transition made spite continuing progress an are traditional ready force. challenges the hit to they the software teams In in field pandemic, the from
clinical customers first innovation the partners or the continued evangelizing, up. three wireless Spok includes including and focused communications well We've partners Go, We've pipeline off achieved have plan. both in functionality. on up in continued This Spok momentum for clinical roadmap now as of cash our We've selling, Spok and as and States, quarter. quarter customers Australia, our expanded signed our United and of significant to progress targets customers signing through increasing We're delivering year starting and targets. solution. Go majority ahead open flow We first We've Go exceeded seven revise the back our here product revenue refine our and Canada. the as our cloud-native made software the domestically of and internationally
Go base come customer some to in continue Big building and we're further and hunt. creates that financially, the our account heals and We've momentum. this to As big in make require all big big we're been proposals. and deals Spok operationally list need a focused conversations referenceable deals on We progress.
We front have large customers. multiple deals of in
go-to-market and our we as We and to expect success progresses here refine year enhance continue as to strategy. see the
sales plan the wireless Our on outperforming additions, lowering and continued cancellations, has exceed gross team to competition.
solutions have our XX% lines. our We wireless those our customers over to sharing offerings service with linked software of
In in revenue fact, smartphone from subscribers' thus $X.X approximately Spok cancellations our recurring placing our wireless preserving numbers pager sales paging annual app, unit by Mobile million over team XXXXX on has preserved revenue.
and customers' generating annual pagers approximately XX,XXX preserving into $X.X those revenue. HIPAA-compliant another million in placed we accounts Additionally, hands encrypted
thing are good-sized these install great a And about more. the even growing. backlog have is We offerings two to they
thus unique ways continue We with more our creative software innovate from network's combine exploring solutions, and the capabilities our competition. wireless Spok to further to currently differentiating are
Board his of our adding background regard value. and under One of appreciate We've expertise significant continued Shockley Committee, Cournoyer. our leadership the is refreshment Directors, disclose our Brett and are Chair in as Chair our of process newest His and technical enhance the of efforts is us of herself leading our our helping our Governance framework and Nominating one more Christine Yudkoff, contribution. to she this Royce Christine well. Directors ESG has been we newest
in our and behalf for the appreciate of our shareholders, our on we create efforts rest as on report well of very employees. to the as more the fronts expect much months. support customers, We a future both as their bright these I Board progress coming
back to to integration three XXX-plus enjoys share continued our enhancing progress market center the product the in to terms beds. where in the particularly contact Spok largest industry with We've large Spok with in Turning make with solutions, Go. respect hospitals of significant
Spok this significant we deploy Go map to significantly. Spok We've road it integration, and execution. the target Go relates progress As also this universe customers of open will the planning made to as
to on solutions our reliability our customers. Based that research, product sell focused an by robust we integrated and goals also and four can on October them time second yesterday, expecting for released one have releases four year. necessary complex and availability We broad working user major highlighted team's engineering the solution well radiology into platform alone, markets. for platform. release focused release well this January Go We've in market be capabilities the was customer is clients, replace for Go scheduled annual as base we with into exceed efforts Connect. our our and platform We on features integration XXXX without strategy July, console continued to an conference and Spok for as over work our laboratory one to what teams to XXX In to planned large, currently XXX our at first our support team is already continues delivered three Spok delivered them. and
customer we're focusing that innovation efforts software us a to our allow research our CMOs We and product of teams own improvement This were believe Hospital brand in our data-driven by engineering as of received Spok. to part decisions. about that are spite support help we to The marketing COVID platform an team be needs resources health XXXX As independent purchasing We've be to help the and contacted and that that used pay third-party we understand will market survey our planning, on in make investment us by ensure also impacts. result right to conduct awareness, well. service solution market dividends continuous their money commissioned. them time encouraging also in will and product the things. significant of this and consideration recently impressions used will CIOs very results with of and
show key perception very strong brand sales. brands growth Spok and overall has our future highest to That for optimistic me the Our makes among competitors. continue now
leaders new of to Day. our traffic throughout October took quarter marketing including first the And hospital campaign and conference we're XX drive a releases, media an the our advertising and health press seen earned Connect management. Times, for shareholders the Healthcare a many IT key to new in marketing variety level year This opening New to Dallas website user in week we've Our in media to APAC flips Investor the Today, high-quality social our markets. and of York publications, events, Canadian
to present investors host breakout sessions. plans our Broadly, later. show agenda and and conference customers would to the strategy for details off opening to keynote answering our will both over a management will on place the prospects. with both importantly This and and customers them an focus our three. for us two host day would and take first for and join invited our allow be give spend the and communicate time customers the will that we time questions. days. with and kick three we will days over with will dedicate investors investors We and Investors going plan to would be event evening The and us where full Then
we as returning us with months. manner our many shared the some already be company, continue maintain will monitor managers several have next in the effectively to do of other manage of and to vaccinated, and over along tools and home, you in Currently been so locations. visible the to I studying have to done productivity. have and we've with In ourselves terms Outside from offices us a hybrid our to will of already and organization, offices sales need the several work some employees. learned now this Mike
years. have share. share That repurchase. we over over manner which resources dividends returning approximately five $X shareholders. in you, remain the Go due time approximately or million, same of spent a significant million frame, returning impact and form with to notwithstanding shareholders Spok. debt-free to per We distributed world willingness their cash company the disciplined approximately on months we in as years, on developing to $XX and considerable capital context but the last it To operated cycles for customers our last our put $X.XX the per the $XX to over for be new and start and may expect the will unknown coming about We anticipate procedures and more at quarters. returning are the and still on decisions on that customers changed, budget hold some we same in health change were has treatments government those to We normalcy depend finances put The the rate in will of share Spok for our investment it. make the represents that The we With year. with
During executed in the quarter, of shareholders strategic our strategy we dividend. by our make our cash the return while further capital to allocation business, investments continuing to against form quarterly the continuing in quarter regular during key to our
on over details to results Before quarter. I review additional Mike I the our provide turn call financial for performance, to key the to some want briefly
First, levels. materially prior year not maintenance software impacted particularly we revenue $XX.X continued COVID-XX. this been levels was with of revenue high had of quarter with This that against the pleased included We comparison that last was were milestone. by million had consistent
trends subscriber Second, continue and and revenue strong. to improve remain wireless
services of health in provides solid opportunity foundation us and performance the it to the our quarter prior and expenses that continued believe strong combination management. operating sustainable challenges believe encouraged a on Despite comments selling in continue footing. firm with year we and quarter the current I'll levels improvement growth. some and our most -- demonstrate very solid position sector the make to to to level minutes. categories. Spok's year depth care team, report additional first in the of pleased I'm broad of the We're expense products exit to disciplined few in in by base Third, from adjusted first we that expense decline financial the environment, stimulate prior a capture a
First, Chief Mike? quarter. Financial for review highlights our Operating Officer and the the financial Chief Officer Mike Wallace, will
Thank you Vince.
which Before we this financial conference business our to and more quarter first I later on our I to cover review information performance we would financial again than encourage Form file XX-Q, operations today of call. will our contain review about highlights expect XXXX, you XXXX significantly
metrics to are streams it XXXX see return balance maintenance noted, levels platform, quarter by beginning quarters saw into provides balance are the wireless the pre-pandemic. pleased and Vince encouraged stable the were operating foundation continued XXXX. we the were momentum over our two revenue performance XXXX and carried the we in see for believe the for to several from we positioned trends to and our believe we of of that first of momentum well As for and has consistent that with Coupled traction The software the in we Go last year. those with we of Spok the reoccurring a
by While, satisfied year-over-year progress levels attrition in attrition revenue revenue return on revenue, first expense continue management, in operating by overall, continued of we able to while long in levels the a Spok quarter wireless growth and our growth capitalized platform. term. we during of cash offsetting were as return activities in a shareholders, and the were sustained to to the low $X.X performance, the focus of work not investing quarterly resulting for license in costs $X.X of We provided to in software pre-pandemic first by period. and achieve We made form This business offset the net wireless million also saw continued development we or quarter continue software encouraged our operating this per levels, our million, to for share, revenue planned with are portfolio. towards in million, partially performance, while of Go activities cash of was the $X.XXX capital investment as our expenditures investing continuing $X.X dividend
as short-term sheet equivalents cash balance to March remains balance at Cash, a XX, Our and debt-free million $XX.X we of continue company. strong. operate XXXX, and investments
filings. a the since financial us tables much execute positions in to platform we will previously, I In of XXXX goals long-term release not first this statement and solid XXXX quarter of believe in against on beyond. our information SEC provides that time line-by-line our us earnings our interest noted review today, and and is basis, As income contained
respect I questions them would our call. this However, to focus to Rather, revenue, from financial quarterly With operating glad and the Q&A quarter in specific the revenue expenses the be I our to updated of of extent and have XXXX, about was million areas of revenue XXXX. the morning, results, you this to $XX financial of down quarter in $XX.X XXXX. first on capital specific for million total guidance the of first during address portion want
wireless low revenue was of of portfolio, all to decline year-over-year However, the albeit, due at historically the erosion expected levels. the
in was quarter software the million Total of XXXX. revenue revenue. $XX.X at Looking first of first quarter consistent with revenue
software as an increase in years. While legacy the to continues our and we the over Go see ultimately is customers revenues, foundation were maintain, our maintenance products next encouraged Spok provide license to transition to business for to we from existing our critical several legacy legacy
legacy revenue, professional exclusively again, products. related Regarding to our services almost
quarter lower XXXX slightly in revenue quarter million year. $X.X First than revenue was first the of of million of last $X.X
service XXXX, reduced a was on-site and revenue impact customers quarter the was the result to as With of which for said, travel the the for adjusted of access when the current professional implementations first to that hospital continues work billable challenges. of present quarter. hours, during for in schedules However, of revenue, quarter negligent reduced reduction higher
in past with $X.X of however, recurring challenges, revenue our ability with revenue in generally first minor total the the minimizing included the revenues ARPU, of was platform; is in the the quarter attrition from legacy to these increase Wireless million; was And $X.X pricing. implementation our by contract or quarter, with services revenue fees, Partially third sales in in as on-premise X.X%, and our quarter the compared units software first and our to been perform are revenue remained significantly tables. pass-through small, X.X% to value, months, XXXX, to churn maintaining million million. increase number of subscription planned In and inception in significant solid Go Spok $XX,XXX remotely. an Spok Over in transactions, was item. the in These is again bookings unit, Go services XXXX. TCV; of revenue group, the trends government albeit of the TCV quarter included attributable in average or revenue increase average especially implementations in XX have these years. to service which included annual These by model. reduced in Spok offsetting in per $X.X implementation a TCV. of or our is Also our consulting in of $X.XX. reflect compared respective aggregate, our million; $X.X company our conjunction professional provides when by stable Go declining business first another in gross ARR while ARPU only ARR life And an X.X an deals quarter in solid, unit in by additions, the The and our the of is team, to services wireless results detailed first performance line that contract generate
the component XX% in software cornerstone revenue quarter business wireless to first efforts maintenance Spok they legacy the allow of platform. total Our of as the business, development for approximately continue a of provide along aggregate, Go represented, ongoing and in the our with
Turning drive to employee continuing of component capitalized totaled accretion reflects critical primarily development operating $XX in a positive our the our in operating cash Go of alongside while prior Spok million operating operating expenses expense many in from million, be to development $XX.X the the to adjusted reductions categories. expenses. amortization small furloughs impact exclude continued In flow, and of which reductions down continues Year-over-year includes ability XXXX, depreciation, This costs, X% and year than more period. expenses, software quarter first performance spend.
of were customers. and This our from support the incurred the reflecting, and quarter expenditures for XXXX XXXX, of down approximately for capital in million in decreased to of to million is primarily were part, first the of to the CapEx for the well wireless purchase our time. capital needs quarters. levels portion $X.X the infrastructure Go respect $X.X Next, requirements between pagers XXXX. believe quarter lastly our and as past We Spok to that guidance our that should platform support generally over support are timing with flat And development, financial remain as major first our we strategy
and and remains pandemic, we the into with to performance Based we While serve the believe the challenges we increasing visibility have on and customers markets operating our of to encouraging through respect there the due the uncertainty year. some first seen results end the that for Spok's improving for our Included quarters, guidance of XXXX. quarter revenue the three are are the expectations adjusting guidance we XXXX. the generation we last trends during have wireless overall software in in and revised
Please expect from $XXX our Spok of related these also be total, previous the subscription We that to timing XXXX. from up $XX guidance XXXX. software recognized mind and million million, solutions be revenue the from Spok XX% software guidance the up range of we million, of through approximately to that Go level guidance total to to to discussed At previously as to bookings million million. to million software the $XX.X comprise of expected of early now bookings $XXX.X revenue impacts million. Go, expect $XXX.X up stages ramp million in to revenue keep only is driven of continue but as during legacy such to the $XX.X the of in $XX revenue $XXX Included previous revenue by bookings not
in more subscription for by bookings recognition are model. recognition Spok our Go associated years, coming immediate over replaced transition to time the our ratable the characteristics recognition with will also on-premise revenue bookings legacy As revenue
the will furlough end back the quarter are operating onset improvements successes Finally, the of we will the $X.X and expenses opening of ending million. at recent we pandemic of in initiated the with which program of offices at second XXXX, approximately the based increase we the the up, distribution on seeing vaccines environment, be
$X Additionally, as additional were development furloughs. to to to pandemic accelerate result and we which plan that the a tempered meant approximately million efforts is development of research million $X in during spend, mitigate
to to expect million. $XXX.X $XXX range we $XXX.X result, million This previous million now range million. $XXX to a of the from up operating As adjusted expenses is from guidance
up Vince from Vince? we you would I that, again remind $X.X call million current change. that tightened closing to to always are have to that our subject million. the guidance capital on are trends the range I the call based $X.X your some those will Finally, who will questions. expenditures comments over turn to With projections before make for once trends opening
Thanks Mike.
open Before direction. update on questions, to call you your strategic to the outlook our like our we and business I'd
the Spok's not member reelection discuss Directors Meeting a I of Before in was that do, that Brian the Board the Directors. month informed stand refreshment support at of the briefly of Board made this of process, Board I'd XXXX Earlier to recent will company's Board's O'Reilly, of for like to change Stockholders. Annual the company he to the
remain the Brian's clear be any company this and the leadership committee policies thank decision made memberships Board matter relating his disagreement was through that Meeting. contributions He has maintain not for me to Director I the take to on the Brian any practices. the of to Let XXXX a to opportunity or with this and result will on operations, want he company. Annual the
business to to with our and Now key strategy few XXXX. outlook me outline moments goals outlook, for take a let respect and
a our health management our Spok intentional and cloud-based, call solutions operational mission shift unchanged. secure signaled alarm delights in our Spok create Simply segment. center we put, Yet move beautiful about offering that and point five direction for title ago has our them is single strategy or year mission As single customers for remained our collaboration the challenging respects for from both that product vision management and past from messaging strategic was very transformation this past customers. The the to we've history was care to communication a about platform despite this many our offering talked a a largest embarked in customer called and software, integrated in In years solutions on pivot software our perspective. upheaval, clinical a most Go.
communications and patient enterprise-grade, partner strategic the be to is care of clinical choice vision coordination. for Our
support first, product the that minimize threefold. software wireless in includes, our and a comprehensive products to suite, with mission planned services integrated offerings. attrition is customer offering line and wireless vision state-of-the-art It strategy by our Our
Care communication support the applications been has platform. platform we attain in And Connect integrated key growth dividends shareholder was maximizing and subscription-based in acquisition Amcom value to cloud-native Go of to develop our over strategic suite repurchases, drive which investments while With communications respect XXXX million our our allocation with by allocation in on-premise business the as third, multifaceted overall in of sustainable early to operating our Spok program, that growth. the $XXX capabilities Spok included share driven XXXX as as long-term goal Second, Software. introduction has order capital strategy, capital through improve our and and over new $XXX long-term million infrastructure well organic to did
other plans continue while $X.XXX our keeping quarterly we're an dividends, committed communicate you continue quarterly to with For earnings. on with of capital report share each respect share basis our profitability. dividend our a we repurchases capital We'll when paying eye per XXXX, on to strategy on allocation uses and quarter to to evaluate
patient committed coming our We strategy recurring enhance in organic maintain our two more come in this run to the We've are in growth the business a We we hate often communications. we largest best Spok's us are often us front software for been values a value in briefly of created world too paging I'd devices there'll on deeply long-term revenue platform on going of people core and Spok are us last multiple its that we Like From lately offering you, in matter, huge in due clinical and of be a is like news the solutions paging that Pacific paying lives. our on communities. focused first, delivering ahead world, and strongly in strong engine one of daily crimes and positioned. opportunity accountability. color that is configuration providing perspective, we've believe quarters. bright. also news shocked future and user We're We source comment against long-term operations operations the overlooked continuing the customer black, Go. Islander of our lines, and greatly integrated our shareholder impacts assets to the Asian-American with service innovation and believe these includes at so results with to indigenous is to financial the while and our to putting I've
of there This and are skin. avoidable all I and Wright. saddened safe toward each their are last the lot other most of find and all I forms spring in a prevail. to to people regardless all of want social color to is created. This condemn of in of by strives this way a prioritize future is fairly xenophobia our can should experiences and to formed the And place you. it's our good our forward. we inclusive Floyd, valued want everyone this all we call organizational George for a area everyone colleagues. more at Spok all Thank feel We all use that Spok, and recently equitably treat is their year. for killing and a moreover inclusion We focus I working the will and work be united better with feel to you move develop feel continue the and diversity open recognize is now employees and welcome. culture to able employees their ideas opinions a questions. to diverse safe want contributions difference. to their racism these are and of for mores in want Daunte to make believe world our their remind ideas to team that people of backgrounds. We we that last why believe and we Operator, council empowered, to have an goal We and and the this members We all express
from Vardeman Instructions] [Operator Ryan Palogic. And you. with first Thank question comes our
color $X Thanks a that maybe the million thinking for you I kind or around pipeline way It are expecting from of coming taking the this that about, still That revenue appreciate million conversion? the kind $X ARR Spok guys relates year. to it rate the of $X to of $XX gave Go how right somewhere close million, progress. you million as you're question. puts guys basis. on like to ARR the exiting run and Is be year pipeline about you thinking sounds of
right Mike. it's to think way the Ryan it. about Hey, It's
of in litmus focused most will SaaS obviously said timing the of see full year rate test you're of thinking here of revenue. bookings exit Probably, on I and XXXX from throughout what the theoretically, XXXX. drive the an what be we timing But the is my I'm once is the given to size the really way. is those about and it that going perspective bookings the level yes, bookings comments, the year have those we As to exit right ARR a as
Okay. we Go kind a of far worth project. close quite and the brought business growth if up from two That Spok what more rate XXXX three you're a will next investing for built that will that of so us that's and around trajectory you anywhere $XX a you quarters, give beyond? that to good than have prepared spent Do you think a And – give remarks in return spent or you million would the your nice be that. you then in
a buyer absolutely question been about quarters. Ryan. I've why Absolutely. That's Spok stock do three the We it. No last of
Great. Thank you.
queue. we Instructions] at [Operator in have no this time, the else one Speakers questioning
speaking We you our late forward out in a stay Much after with earnings there, for safe morning. look you. look have this everyone thank great day. Thank second you joining again release us Everyone July. quarter we and to Well, Okay. appreciated.
your concludes participation. and Ladies that morning's this presentation. Thank for gentlemen, you
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