Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to the Spok Holdings, Inc. Fourth Quarter 2022 Earnings Results Call [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce you to your host, Al Galgano. Thank you, sir. Please go ahead.

Al Galgano

to Fourth welcome Call. XXXX and everyone, Spok Quarter Holdings' Earnings Hello, am Kelly, Spok President Vince today Inc. Executive I by Wallace, Chief joined Officer; Mike of and Financial Rice, Chief and Chief Operating Officer; Officer. Calvin that today's want statements are business Spok's to subject performance. remind to I and relating financial conference that uncertainties to risks future may include call forward-looking everyone and events plans, Such as other well and income which dependent statements are as may include estimates of or upon future statements expenses or conditions. revenue, predictive company's the conference not to to represent These on this give only as statements date of estimates call the assurance results. and intended actual are future any could Spok's results forward-looking statements. those differ actual anticipated in these materially from

XX-K Although our be statements the Form business Exchange no Please these documents XXXX forward-looking company any review Commission. are upon our or conference note are calls. with operations and obligation that the environment, Factors which Please and that believes in reasonable, and relating section Spok assumes and uncertainties. present statements filings Risk from to the the to update are subject Securities and based related contained assumptions past they to to risks filed

With that, Vince. over I'll call the to turn

Vince Kelly

The for and call. share fourth everyone, morning, you, quarter. thank us an on update XXXX be and you our with Thank how morning will this the Today, reviewing our start for I'll our quarter today's you year good order full for will and joining earnings strategic business results by we call. plan agenda is as progressing as as financial well the follows. for

Mike as forma as full the financial and of full begin fourth performance by the operational call to year. results. well quarter highlights quarter our then will XXXX a and I'll pro review turn year review our our We providing over to for

has what general, continue and been and again We how shareholders. foundation established team have for in accomplish cash we'll with singular we some year. proud we I In financial We with a last We am will And a business execute. this wrap we'll to with to believe conclude remarks XXXX. Q&A. the as returning want guidance generating up it future to I finally, it our did outlook able our Spok to prepared that now then and solid year, capital and of do XXXX have flow for the reiterate focus

operating key cost management In wireless expense performance in the trends, levels terms we bookings backlog progress of our aligned successfully and results, year, structure areas, plan. we business made including over well software our as updated with last as as

for our create believe communications extensive we established revenue, of return will forward, experience significant our generation solutions maximizing in cash operating Going capital. value stockholders flow and by

announced change. well as year quickly Certainly, the set new we plan XXXX and as capital respond that In solutions, a a products last was to effort goal February, demand maximizing business of of strategic shareholders. to priority a marketplace with on our flow to for our an dynamics cash returning

As eliminate sale part the discontinue costs. Go we tough and and to pivot, the development associated made that of decision all of strategic Spok

customer enjoys financial to consolidating offices. the record and Wireless to track cash this for approximately of flow the center our employee market significant their getting reducing was record on position, and track Connect leadership call experience solutions. by streamlining more is has steps out existing XX%, due flow This and communication hospital and lines revenue and environment not lines and for upon Additionally, focused cash external base software. expenditures challenging rightsize driving and Spok's This to and management costs, resources about generation. services hospital experienced management as by new reducing XX%, we excellent by headcount pandemic. situated due capital tight a structure an taken and environment, continues are to personal to good already our Spok's projects has resource expanded Board company and narrowband rationalizing and expense disciplined business suite environment. focus remain Spok of the were These ideally Care hospital difficult from are was budgets accomplished these service our on

we've sales, pivot been $XX execution. our February, and in strategic generated Since nearly XXXX, We deliver children's XXXX, smarter, adjusted all the in last and Spok most seen improve XX areas, overall million improvement pro has virtually for communications. top where to forma a teams and care In morale clinical mission U.S. has a hospitals high Spok being care significant EBITDA outcomes, of it development including in include in this remained XX leader million again clinical of to difficult as plan. communications our matters adult customers. as health solutions for implementation to true that the enables $XX named the returned communications to for the since all has and changes do trusted on shareholders you've global Spok track faster critical provide of And Spok strategic our to customers guidance, year. from we're implemented These to patient when customers. hospitals Spok the cumulative Despite information vital business our and of XX seen it service capital a our product

Roll. Hospitals Report's XXXX, Honor XXXX World & News Best

hospital Spok In named roll been has to the customer. decade, a every past that fact, over nearly honor

many the a over United the provides us revenue that This X,XXX reoccurring have is no health long-standing relationships. have and world-class who representing with customer built providing honor in We over of facilities and is solutions nature. our which debt, in viable We've customer as States. healthcare place company value flexibility. significant customers, and care, our hospitals years our communications who's service of We're and with our respect we strength over XX% their the in financial ecosystem. We coupled

spent spend development support GenA providers. million nation's to we software Spok XXXX, development focus as of previous to pager. and wireless $X.X and with Care investing healthcare In such approximately research products as wireless Connect our continue well platform our as we reduced in order our Care leading our from integrated Connect still our year, sharply enhancing the continue Spok new relationships We to on products, long-standing in that and solutions the

later our this will to into and return to these with cash are with in the our eventual expect are embedded We will Spok flow allow believe Go. combined generate investment guidance experienced, expand investment and important Mike line our committed that of significant dedicated employee future We to of cover what our revenue, future in growth this million base, these to in levels attributes, year, This introduction relative spending for to and us shareholders. capital to is approximately call. that and the prior stabilization plans software incremental costs $XX.X

quarter take with So of let highlights said, me stabilizing positioning XXXX. that through We in business for successful were Spok for and the a fourth our few future you growth.

XX% on erosion prior operations pivot; in from other software resulting and a we build third, our generated In year; down noteworthy XX% software a previously of performance backlog, $XX prior we and year-over-year nearly X.X%, year I outlined year year year-over-year addition slide, software than the adjusted our pagers less quarter the of to listed a basis increase a bookings; expenses, the next, up bookings; million quarterly unit operations of from reduction $X.X the a EBITDA. fourth points included: in XX through X%, with annual implement in able respect strategic averaged unit highlights as wireless phased-in our ended operating the in to to primarily next, result, erosion with we million were actions full adjusted success

in of cash the assets. all regular accomplish of to able quarter, we over returning million $XX the this deferred was dividend. year of team and form with approximately $XX while with our of million $X.XX Our our during cash equivalents to quarterly in shareholders And tax the million ended cash

At the generated we quarter. same X-figure during XX new customer time, contracts the

Let of highlight me moments couple a and a take few these.

large A XX-hour health hospitals and have a benefits. predictable area. agreement clinics. than of quicker to process than Oregon. region highlight health a signed a X-year system our ratings contracts, the in ensured hospital, the this and with agreement center most mental more organization system behavioral health procurement hospital a across XX six new customers signed services the annual care XX,XXX the includes like care example years, an for With and supportability, multiyear and X-star as has First, multiyear X,XXX full-service functionality among other primary specialty for nearly a customer nonprofit, children's many With providers, new services comprehensive multiyear and in care owned spending, urgent to XX the a strategy. locally health employees, contract system access streamlined This I'd provides healthcare more health

solution. of areas urgent health extensive in and primary, system contract care, employees that facilities care. clinics. is I'd and with XX,XXX this They you academics has recognition like customer industry support financial premium services for when role understood matter. a and customer their in professional A health Spok and the for the pressure, Spok signed of seconds leadership X,XXX delivering while value the in that's hospitals, medicine, to XX across over other care highlight customer's nursing deep received critical decade, agreement considerable a providers. health Minnesota XXX and multiple health Even and skilled multiyear nearly nationwide healthcare the in have play large for The system Founded roots is community systems specialty solutions Spok with communication under for a

spend, ideal and provide deeper of company the implemented our in just will releases they health with solutions. advantage critical because for has Certainly, is and quarter year, for create take was Our chosen shared for the I we our allowing When growth services annual in to in shareholders, poised partnership strategic believe the markets. to a I fourth customers. multiyear that strategic care stabilized that both provide support, examples its full current maximize customer good we a had that pivot Spok last of value-added I significant year value demonstrates performance shift The feature our predictable value operation to continue sense to said while this wanted to services and creating. two a opportunities the our investment software agreement our are communication

more turn guidance, financial to and drive the want assumptions Mike for I some a Now the of that financial XXXX. for discussion our detailed of expectations I to forward-looking highlights call before our over outline

on multiyear in moderate constraints, our anticipate operations continue bookings contracts operate service and to engagements. we customers growth focus we their software within value-added resource First, while as our

Next, we products to ARPU, our to this to related driving although strategic of And ability taken lastly, pager. continue great GenA control have we continue minimize of pride in the pivot, we wireless per and incremental in to XXXX. our we the as from and took costs. anticipate or continue to pricing costs will majority that And XXXX unit out savings maximize be in we average we deployment take churn the benefit expect unit, revenue in our that to we able actions

Finally, believe Mike in more in detailed EBITDA $XX adjusted our in but business $XX we moments, drive million to of that will these generate the XXXX. provide million range can information guidance a few to assumptions

review to With Mike? that like call said, Mike turn over our I'd financial performance. to Wallace the to

Mike Wallace

for now minutes yesterday. everyone. and take review of our I this more good it when contained for financial charges. back that will be We But net to in of you as and adds $X.X new information adjusted old operational believe calculation, you between Under do, EBITDA our performance, this as table morning, as performance the associated and to XXXX, our into the EBITDA And performance like were we asset added difference visibility we for two of Under our our before restructuring greater greater back our compensation adjusted quarter our the The out asset noncash which then noise our XXXX of reflective will a now any much the you the year would capital includes million of restructuring the stock-based and operations which performance that peers. severance was takes from significantly XXXX. you provide a about significantly and starts it severance created charges. will the Vince, encourage any I EBITDA with and earnings in costs briefly method, stock-based statements release. I financial full charges and again, impairment more and then any with Thanks, expenses clarity this adding in cover treatment business noncash I as severance from updated income method, recap expenses, be impairment. pivot and give or of outline started as our would strategic into and net back of reconciliation like and financial less in filed, being: software on subtracted than previously reported company give and best compensation, definition operations XX-K, believe the income, and few impactful subtracting included methods of impacts the call. capital Again, to fourth the we practices well XXXX. course, will ongoing adjusted restructuring

As earnings otherwise in this such, reported presented, and periods today noted. the being all new deck definition our this unless results reflect release, press in for

$XX.X to statement. a Turning quarter of release $XX.X income for in per included income share unused to XXXX. Fourth $X.XX our noncash established and tax related share, $X.XX diluted net the valuation or a net compared research fourth income development million, the diluted million gain credits. million, allowance the quarter $XX.X of previously net XXXX, loss In or to of GAAP totaled per

future that assessed state that operating realizable income credits our uncertainty several The to projections losses than tax related to would would rely of deferred on were Go detractors several assets the of over fourth we on taxable tax reasonably be quarter, surrounding and based valuation last more our be the and federal allowance and certain and likely During ability determined factors. and it both our not years. significant COVID other Spok net

With related of projections largely XXXX. income our future to of efforts resulting conclusion, uncertainties our in the costs largely a Go were of primary these taxable consideration from Spok and restructuring removed, in elimination development

the to these and wireless our Spok in our profit of software Additionally, provides knowledge the deep experience of with historical in generation service projections. with confidence existing of conjunction us lines, introduction prior greater Go,

credits The a have tax the state relates and valuation valuation allowance on $X.X in As $XX.X remaining currently based by realize state allowance losses, result, the we these to not which do operating XXXX. million tax previously we credits certain to quarter was reduced established foreign million, of fourth projections. expect that net

a XX-K. detailed the For explanation, discussion in more please see our

revenue ongoing GAAP churn respect revenue last million largely $X.X in than quarter revenue compared was the or performance revenue down With a as revenue, quarter which rate decline with of to net fourth value on wireless to The of a fees, for of onetime revenue are service the sales, software total X.X%, X.X% wireless the are and $XX paging product was which quarter wireless far a full year, only Revenue did of pager decline in quarter we million, nature of relates unit of only basis, by and And XX,XXX. the business. in on prior that to million down For X% less from declining with during full units by slow. basis. $XX.X than $XX.X which in the year, The the million through the million, driven X% fourth represents decline of and XXXX, was remainder was in revenue of $XX.X less XXXX. less consisted wireless, erosion expected, overall year, from of continues line pager declined year-over-year impactful was year-over-year component pager XXXX lost of revenue our while and wireless by XX% to fourth continued revenue, to XXXX monthly quarter primarily this expectations. fourth in decline year wireless

wireless our compared and, paging wireless year only a by year-over-year For expectations, declining component again, in X.X% the revenue of on year, the revenue full to monthly the range basis. the prior declined X.X% with of

essentially prior revenue, fourth which revenue, flat our to year to the component million. beginning is $X.X Turning software quarter, with maintenance the quarter revenue, the largest of totaling software was

churn and back our have to expectation Connect levels our with down Care quarters. the products, we as focus on quarterly basis, this maintenance we uplift software flat brought calls through year-over-year continue Spok is gross with prior consistent be a As remaining being to pivot, previous revenue for in discussed slightly to and given

bookings Connect, will continue and in Spok However, with as we maintenance years Care grow we coming revenue expect on along with map road progress our to make continue the it. to product

will a of maintenance on revenue, lagging nature license the Given basis. revenue work higher sales through

and that versus fourth beginning of to in decline, stabilizing revenue $X.X million look it. grow Professional quarter then the revenue services million we first $X.X was So to XXXX.

align we business in net current strategic our of As required had the shift related reduction planned this plan. the level a we a financial are our with flow this time. our complete and for drive backlog calls the over in our resulting of guidance, at past to in alignment actions And higher we expected believe the with approximately stated several earnings services rate have in alignment from cash personnel of to better lower quarters to revenue, XX%

have we to an as cash to not important licensed maintenance is is as opportunity And has that viewed several expand as footprint to been to services calls, flow fulfill historically through it remember on which stand-alone our customers. a has earnings maintaining basis, existing critical in as engagement obligations stated upgrade our contracts, meaningful but driven under customer well

$X.X million of Lastly, compared license period revenue prior and million the was with $X.X same hardware in year. the

year, bookings This in better professional the annual due down during XX%, driven professional was the was the higher driven of the $XX.X of and which For an to revenue to the revenue million $XX.X fourth churn seen by resources compared was million, $XXX.X by intentional offset operations line being XX%, in license million million GAAP year-to-date backlog services software maintenance reflecting $XX.X revenue and to full prior $XXX.X trends in reduction million in $XX.X compared million X.X% the on to revenue strong just discussed, quarter, net in the with was XXXX, basis, in with XXXX. paging on down year. to compared total revenue a period. basis software services Wireless of revenue revenue align by

amortization for compared the approximately which in XXXX depreciation, costs and And accretion and $X.X expenses $XXX.X million or $XX.X as lower. adjusted operating fourth of the in April personnel operating of most XX% we totaled million $XXX.X lower Spok XX% were $XX.X excludes to million severance full million or XXXX related restructuring through of and million expenses, costs XXXX. compared of the quarter year, quarter Turning to to Go in carried $X.X and to million, fourth adjusted

quarter paid of to As in EBITDA and EBITDA, is earlier with liability before assets, date reduction complete, earlier, effects for discussed earnings as of development of employee adjusted in pivot. of the the streamlining made of in a progress $X.X software the with reflects intangible and first the definition now I positive stock-based to negative compensation and Vince capitalized expense, be quarter costs And impairment remaining tables was and XXXX. management substantially which all lastly, and mentioned fourth of the severance our quarter, the headcount compared and release our same $X.X million the expected of costs represents defined with XXXX million a restructuring strategic

the a $X.X in full our year, million a $XX For million adjusted XXXX. negative compared positive was EBITDA to

our to other as pro January pivot have million employees to higher be approximately related and have $X and forward. EBITDA changes Spok going forma XXXX EBITDA as well X, onetime been Had Go the been effect EBITDA would $XX.X Now of related been strategy $X.X approximately adjustments, Inclusive XXXX, strategic strategic Pro non-payroll our results adjusted of those costs million of terminated that to these costs not year. for adjusted the adjusted million. includes our will This million. forma exclude costs in EBITDA. our $X.X to operations would of under adjusted turning as costs related prior incurred

few to and general, outline our base Finally, In pivot in performance cautious XXXX. Vince constructed precepts our minutes reviewed was optimism with strategic I'd financial on a to this take based assumption that guidance the XXXX of earlier. a for our like with guidance

earnings to a are As the included going reminder, release. I'm discuss our in the figures today table guidance in

have $XX.X $XXX.X expect of revenue to on based revenue In expect of of a be taken the wireless certain continue to revenue which we million, we actions we rate million to million XXXX, to pricing and total continued we erosion $XX.X adoption our to in slower range year-over-year pager. $XXX range million as GenA between expect

expected from is to software software million, small $XX $XX.X revenue. increase revenue revenue from Software a million range to XXXX representing implying the total with midpoint

XXXX, guidance expect adjusted not after As and of XXXX, progress guidance note, $XX our our in we discontinuing EBITDA due Spok manage previously, research tightly made coupled revenue which included for and our timing providing software though CapEx previously, refocus million million on our in are software to have result On Go, to in with effort to are expenses, for XXXX. with a the specific we guidance $XX in final Spok other million, to Connect Total prior would in business, summarized for expenditures Care continuing development and discussed capital we growth we stabilize The be in involve will $X.X the our from years. year. have position future Vince XXXX full the costs CapEx it efforts years. for in with $X.X issues, million were year would down levels line the prior along

now will to said, turn I over the Vince. call that back With

Vince Kelly

Thank you, Mike.

open line to and dive to before we prior received analyst questions, the a some I'd deeper call. questions we today's to answer like little Finally, up

sales I of further achieve additional you think, every your future yes, looking the deals with was down necessary first to multiyear levels value-added the licensing deals have and service at sales is prior Many we're The to growing years. about equivalent Do goals? are month. our feel levels that upgrades. you relative full-time engagements being pipeline one

on came more solutions. of And is well. regional headcount Connect they've and our They're less a as the in we Care we're sales good. Spok our of now coverage channel now, roles from the sales directors director the of new new efficient salespeople team from board two adding process suite was just and inside sales past. in much than been out Most Go Our took

feel talent going to to add needed we our good support to targets, and about those levels. we're when sales So continue resource

customer sales with engagement. has Second do question to

great going was face-to-face Actually How a During get meetings. this environment? question. COVID, it is today's hard in to

still of we're So hybrid meetings. mix a seeing

to it's are a traveling and some are the site. can, And remote. we when better, maximizing it's still still And on meeting the always result and strategically. pushing person, and business that to in on are our to sales with team's but of more interaction getting the RFPs works sales We're hospitals opportunity. the the We're wireless some almost direct understand important drive, every the much our software customers It's way get we associated both challenge. like. versus they're Some outside we're side our exclusively the responding and

we're So seeing and Although more "in-person as pandemic. more it's meetings the critical virtual meetings." that like best everyone, we've to adapted given possible as

Third cycles So interest are good we existing customer sales given We're and with a delays another not macro upgrade just seeing rates Are question. sales on shorten other multiyear elongating seeing cycles, our our and pressures? bit rising deals. it question. any

and project pretty their constraints already the in strengths both systems networks because They're leverage we're what in solutions. trying in messaging. financial hospitals and slow to wireless resource narrowband leader contact due are resource However, industry existing an for they personnel and our an to still more center initiatives constraints. have leader out new constraints, industry get of We're

our meet really them they how help we see and So them can can with solutions. leverage

so So, so far, there. good

we What expecting mean, track not something at So, customers. you i.e., PBX for our through you went I And in upgrades think question. your base upgrades, what PBX in do terms percentage of software of that's 'XX? Fourth are communications 'XX? again,

Our sales are that. not dependent on

solutions their Spok upgrade a arise For from need PBX with to customers upgrade. can integration, the CTI

we're it's industry our I've leader believe Now we of CTI an strengths, there. said and before, integration, one this

However, to that's many only additional that lead sales opportunities. one of drivers can

upgrade in solutions with big our might depending a and to have average other on the and functions, years, generally Over of for prevalence database maintain the systems and other past have between increasing couple the factors. of a size the last number critical X factor the customer that's cybersecurity and updated and solutions and been need number breaches, of the years And update the X cycles really operating of upgrade ranged in frequency. complexity the your

there. so far, good so So,

Number five.

today on only respect good few that i.e., on pitched within one a you have do products. So opportunity and do the years upsell relative handle ago? our And really two to strategy customers additional use really We're opportunity focused our a our build multiyear value-added workflow. into way services called with in solution their And solutions. solutions the services. they're structured the about their their the licensing customers shows quotes today customers for talked additional with most that of be is or capture don't that allows purchase solutions what your a have how assessment, deals to helpful organization the differently to low-hanging base, we and with Where fruit? our that what and we to us opportunities You to also terms will

major our full integration platform is approach our with So technology our with one of advantages.

hospitals. six Question was on update into software smaller number selling

solution. in by our March year. We be have the in in up There's get process had of That's None salespeople in staffed April. hosted hiring forecast and or now XX. and one offering up I Xst to guidance. should around the it of we're to our customer, second subscription upside the this be So selling -- we up forecast. our the should in half online that's and running, bring no running, it of small already and slowly We'll hospital. the of inside two like our that on one going right for in right we now immediately. to customer started plan said, on we're selling We've ramp We fully start it

posted. So we'll you goes, that we'll keep how and see

discipline, tracking? They've these these that delivered XX,XXX advantage units, balance XXXX, GenAs while we're from been more deliver in well next-gen is So and out. very we How devices want seven. we maintain a ARPU new to pager to than big units received. release expecting and X,XXX We're Number the in we getting roll XXXX.

eight, retention levels in XXXX. Number

numbers. We're prior in I They A We're the a call Given full-time hitting and compare of equivalents numbers. a turnover reasons. plan with define morale inside a for a other you been lot voluntarily as money, to So debt. we XXXX, no that our would is now. company strategic jobs. so appreciate can really XXXX are now, We're year? lot what how as we're helping the And that's In people right lot competitors new I making as the and morale. high of the in running for regrettable who And do drop struggling. leave and of business we say turnover, and think years. right regrettable it's plan, company it's see those in --

it XX.X%. want about around about So for at It's who people don't In was retirements. we year terminate XXXX, going XXXX, it than for or in Right we're that's run 'XX. XX.X%, X% less a to we include people was X% to lose performance now, and rate. about last XXXX basically.

we'll see good shape but progresses, the how year right So really there. in we're

software teams accounts we're to sold success synergies strong Number businesses utilizes now, wireless more. place are there. of sales numerous million two XX% to with that that do both So both hospitals Can about nine. expecting in the we've grow also right use the got services? XXXX, And we weren't added In $X.X 'XX, wireless maximize sales plan We've that Spok a our and software you in Any deals. untapped? between incentive in collaboration prior.

use is both of team do motivated our to compensated so. is and to to plan hospitals continue grow the service, that Our the and percentage

good like decision. bookings of as Obviously, the the to of Board I to XXXX. far, an in down Question so dividend below declared threshold dividend night, future. in you press number level cash So believe generate it? we annual last the road every We to foreseeable consider of a the for so and there its this previously, fell looks paying stated is XX. dividend paying have we're this Board And quarter. we a committed there. at The Is you'd release continue did where dividend $X.XX we'll sufficient if reducing the

pre-submitted Last question, XX. number

had those in additional opportunity have to have purposely really at revenues we're coming market total think 'XX? from that's from that's point term. year. Short longer console to a You longer-term exploit one got opportunity. about that spend other there the of answer, longer so mentioned today trying to but areas not segments, there's a We've is this a more our government. We of Is that outside opportunities focused hospitality and on something term? that priority would lot, for grow and healthcare. for it We communications Or XX% in development

to the gave range capital adjusted within want the and shareholders. you that priority generating you with that just I we fact our returning So EBITDA to leave guidance is our

So operator at up ask line Operator? point, additional any the this the questions. I'll to open for

Operator

from [Operator Eric Markets. of Lake Martinuzzi Capital is Instructions] first Our question Street

Eric Martinuzzi

with the Congratulations -- time. financial a It's short to in was strong XXXX. really outlook. relatively just finish has lot starting period on question XXXX accomplished My -- do a off a to of

wireless XXXX versus had the a in side, in you On ARPU. we of if balance, the kind revenue will, the unit churn

Just wondering for XXXX, given is revenue expectation the wireless? guide for what the

Mike Wallace

churn continue in that we've consistently is process thought unit we'll see 'XX. seen to our Yes, pretty what with much

that's if his uptick actions talked you've as probably impact, you the function noticed, remarks, We took, the pricing And we having ARPU pagers in solid seen of have, from perspective. actually an an all about a perspective. from Vince that's that will, of a that an of ARPU GenA some

those 'XX underlying range we kind you the that's So wireless that have for in driving if there drivers, are revenue. that will, of

Eric Martinuzzi

XX%, going And what's license And $X.XX there? revenue then of What's just the it a down it question. on The was call since we've that because I XXXX. revenue QX in first negative the seen comp expectation? category out just only and QX that's million, of

Mike Wallace

in would that and it we the on to go ups license sort total, it's There's as it's downs day. perspective. any a as really. mix quarter, just revenue you see grow we just up. a in bookings fashion. reality there nothing as an and of From relates to tough end expect And linear at -- function to you The for is to is and grow annual a of mix be license different we thus, what can some the certainly period, expect through let's bookings that static license from going the It's will be over, given of the quarters that have say,

So with track overall it should bookings.

Eric Martinuzzi

XX And XX I the -- realized the XX full XXXX year. deals good comp The a in the on year. full had the also QX for for congrats, again, year was X-figure that it and in you

can your versus you large raw you a exited year number as -- a the deals give do of talked about What you've here. certain either have Is growing by percentage a You us? year there or for numbers category just pipeline ago? us, customer

Vince Kelly

pipeline start low on don't was a in Go. total provide did February in focus, our what We Look, we our pretty Spok of from guidance year because of terms growth is. base the last prior 'XX, to pivot

it's Connect to our and we since lot this more lot been did deals of we pretty So say, in expect mid-XXXX. nicely year, big growing a with then, year. a But Care that last solutions we suite growing the do than really and in, started pipeline

Eric Martinuzzi

in much ask to the has is return question the Or CapEx, that's adjusted assumption the call $XX in shareholders plan, of dip last generate of XXXX. million my million XXXX, let's given for we'll operations and coming $XX sheet maybe another EBITDA How and it here returned million of Obviously, is $X And balance that operations? to with into from this $X do million to to and of you again, way is, remaining the that about the it midpoint the million? $XX shareholders from cash.

Vince Kelly

spot on. You're

Eric Martinuzzi

I answered question. my own

Vince Kelly

doesn't like there? the look have Operator, other questions are any we in It queue.

Operator

we no further No, sir. questions, have have

the floor I if back to -- hand So will you.

Vince Kelly

our broader important opportunity management and note, team. final talk see it's for -- to we we're kind the investors your And a our our to to category, support one the wrap Yes, in quarter. want with more today. up. I updating on joining We thing under interest give everyone next us I business of appreciate and again, think customers you, to Spok. our to want to and forward going We look thank

respect to to is another We The with to and on X, we on regular the XXXX. And We're in going host fall have going have Investor we're our to going one Thursday, management that customer an do investors, meetings one Day have and presentations. do program north. may up May a Dallas, basis. in this

there. there. be be Calvin I'll will and Mike So

Al Sales, So of more the Jon join get the Galgano, he'll next over our day. on with will our course all be Take our questions about any things and opportunity. Q&A thanks Relations that the you. details when look, We to contact, talking first quarter Head in webcast quarter There'll But coordinate have a earnings. forward care. for will be you Tindle, great to of that really and out will Anyway, just it, if all next can't to we Wax; Investor presenting. you and quarter. joining person. out We'll And look reach to also us our for you be report Tim us this have event those CIO, morning,

Operator

Thank you conference. Ladies sir. much, concludes very and that today's then gentlemen,

and your disconnect time, for participation. lines this may thank your at You you

Al Galgano	IR
Vince Kelly	Chief Executive Officer
Mike Wallace	President and Chief Operating Officer
Calvin Rice	Chief Financial Officer
Eric Martinuzzi	Lake Street Capital Markets

Spok (SPOK) 23 Feb 232022 Q4 Earnings call transcript