SPOK - Earnings call 4 2023 | Spok Holdings, Inc.

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Operator

Greetings. Welcome to Spok Holdings Fourth Quarter 2023 Earnings Call. [Operator Instructions] Please note this conference is being recorded.I will now turn the conference over to Al Galgano from Investor Relations. Thank you.

You may begin.

Al Galgano

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

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

Vincent Kelly

pivot announced our I'm excited to our our true momentum our call.Let of you, XXXX, outlook.Since while about preface the am X my in capital Thank not good for saying has to generate team generate return by the that focus you and earnings proud very very to changed, has afternoon. and our quarter ability Al, to and ago, I XXXX me performance and pleased our is grow comments Thank for cash, created, I'm and staying with joining stockholders. fourth mission. years impressive us our prospects how our we by revenue, strategic Spok team

future financial our plan and be strategic our goals, goals. to excellent follows: against a reviewing as full as We fuel you struck cash those and EBITDA.We history, on total of of at we growth quarterly and goal revenue. First, We in our I'll for while the Spok's than share balance review by update we high, quarter year. may stockholders. managing expenses $XX.X time in is we'll by mission these dividend on million We stated successful more I'm investing believe levels flow accomplished Spok while by was also prospects.Today, of for accomplished. it to XXXX, were XXXX covering start to path of sustainable and for revenue has continuing adjusted our that were growing returned capital first revenue progressing agenda cash support our between in level closely as able an consolidated generate grow necessary are grow million the the an while for to a returning and call. announced encouraged growth, with proud results our $XX our are with our making to progress we our business and wireless in reporting capital foreseeable pivot in report that in continue future we by believe to software. For responsibly seemed generating of to investments to our our to total stockholders, dividend February our business declared expenditures.While well strategic both will when order this initially today's our we the revenue, the focus for paying support of have The how operating and excess the goals

market our review detail. Wallace, of COO, review more XXXX and and opportunity. Then, in CFO, our highlights Next, fourth our president a year and provide will quarter financial operational Rice, full our Calvin Michael review our will performance

prepared importantly, and team a software and XXXX revenue. X% remarks XXXX, professional operational open modest wireless team revenue, increase of outlook revenue revenue the each top bookings. Significant to year, and Overall, conclude an review growth, the guidance and then your operations will with satisfaction our were regarding growth up revenues a We numerous was growth customer in a rate our for from our seen call financial achieved record line profitability not of And software a maintenance.In XXXX. not questions.In growth business made consolidated almost and milestones. accomplishments generating finally, This contract levels, we'll contracts by increase sales our XXXX, financial continued industry placements, $XX sales resource revenue and categories, scores.Investment million development, expense our our bookings reputation improvements historic utilization, generated software retention, multi-year of progress and product and more total in a an coupled pager license, growth seen and generation, in in in augmentation growth of management, on the prior our our software services, in professional in maintenance improving driven cash revenue since hardware, GenA flow level roadmap a increased X and Spok resulted both over XX% team, product in with customer annual and engagements, services but enhancing was with X-figure decade.

the to bookings very that perspective our quarter, software moment software from some were quarter a is said let me with believe are a factor. provide bookings lumpy our in trending we take operations we bookings timing the level trajectory.As and have to major last on tend be to past, happy right operations and certainly direction, we While in year

and negative we course ultimate sales harder the a by timing closing sales positive This both can stages believe XX-month anomalies of to normal through appropriate days the look While cycle. basis.A bookings contract a the in better and of is of to more quarterly basis it's the at pipeline, year the various significantly. is matter a easier impact normalizes predict move total why bit the a full it is of on to

XXXX For consequently example, close of extremely some postponed of quarter started XXXX the anticipated has fourth and were of to the we year, beginning the strong. out contracts to the in

fact, record, well. been In February was as and strong has January a company

So sales we the individual of context a anticipated performance of spend did of as analyzing broader in deal time pipeline or an and to execution not bookings the quarter month annual results. great opposed viewing our

grow our XXXX expect operations operating levels.Switching bookings XXXX above We to expenses. to well

also expense year management were we XXXX. While from our driving focus than for more line, our as the levels XX% top on continued expense operating down

on cash of of we X conclusion generate of continue development, as receiving position healthcare seven levels, we of and our a Market Care remember, drivers the and expect in of invested our a as adult increased expense expense to industry. in investments in $X points termination that Book management of exercised sales market save key XXXX, In in you one the in our may $XX.X September Spok continued to Investments the these after and our One, lease Black couple children's option September U.S. XXXX.Our for our the services solid XX product is more necessary sixth Connect hospitals does support, the as The maintaining by come for and industry part development. the we believe million premier to XXXX, headquarters marketing, research XXXX, to focus year best-of-breed an spot the platform product annually review expense at an and million than Research's of example, Virginia. As to of platform of in are bottom named evidenced to were such the I not growth the focus results. the that lease early make line product two, the for key X Alexandria, approximately beginning and Wireless flow reputation. on XX And on of the our XX creating managing support having as hospitals to professional solutions.In corporate product of our number XXXX consecutive customer Spok critical the proof

if customers.Spok chip on consistent these base. do in generation buy regarding track customers midpoint continue be short, we're This the expectations all anticipate revenue range, in been that confidence don't on at product able will a to to EBITDA not future an Honor a guidance come EBITDA with XXXX. team's blue fire Accolades World estimates end a our the the have & range. and At our with the in our XXXX has performance Roll customers. as customer midpoint with growth confident in year us. we're on consolidated the of from Report offering Best we about cylinders have Many such guidance with our reputation in will for believe XXXX the News XXXX. performance. Hospital you your guidance potential decades In reflects outpace additional on year-over-year guidance solid and amazing grow of high again into go adjusted as basis.We the we last guidance and more call. us detail the XXXX, of adjusted continue our Calvin later to are to providing as Based best-in-class and we revenue start also being

value a year, business generation, capital strategic the just Spok flow free share through years dividend. and and started basis intend return of X last $X.XX record. adjustments of million that we Since our stockholders on profitably, we is beginning the per creating about form the Spok make flow cash will our with strategic like legacy has cash ago, simple, generate under proud in course, stockholders. $XX track appropriate.Our stockholder regular this pivot, guidance continue quarterly quarterly run a about or to our what review to Of has of as goal and you to returned

share to fourth this regular founded impressive to or of acquisitions, Spok and we approximately continued has as our history pay million totaling our share dividends $X in XXXX becoming now into levels EBITDA our distributions has dividend, balance, a fact, again repayments, since public In stockholders, and capital this debt flow and XXth through stockholders consecutive we inception. of quarterly cash nearly paid Spok million XXXX, XXXX, our more $XXX of remains to dividend returned committed to we repurchases.In generated the you our to either returning quarter our free returning million since of adjusted billion This in generated the and consideration repurchases, policy Spok special company returned to since cash than dividends $XX.X quarterly current our company, $X.X represents our cash XXXX. take stockholders. to dividend stockholders stockholders.When expect

our our long-term strategy. base; capital base solutions disciplined #X, Our over who'll customer operating over expense create software Those X our believe the are, on some tenets solutions; stockholder-friendly significant a wireless I'll Michael cash President stockholders.Now, value continued of our operational and communication our the management; investment experience and the established #X, continue extensive major revenue plan.Going for supports Operating about opportunities. and our and and maximizing accomplishments our Michael? world-class in Chief of growing focus turn our forward, Wallace, to call #X, quantify will allocation to talk we #X, Officer,

Michael Wallace

Thanks, believe Vince, what Thank you of joining for full and another Spok. quarter year us and is for good results all from solid we afternoon.

execute revenue to bookings drove to have $X.XX backlog the bottom sharp significantly We basis, prior established year up share, drive related $XX announced the our all leader software professional trajectory a we continuing operations deployment more million, the generated accomplished pivot to included a we mission to a levels in growth our on progress as represents as of revenue the nonrecurring reached X allowance healthcare clinical well communications.We as per Also, generate importantly, diluted Spok alignment services XXXX $X.XX And maintain $XX.X enables when a taxable past previously to XXXX in performance line smarter, matters are Amidst capital $XX net continued software following this increase.Spok continue and platform prior deliver global breakeven increase customer and customers. not a our outcomes in with benefit, and of thought communications allocation Go future net may and as or XXXX, than pivot down levels. representing net software projections leader for from continue as we almost and facilities you we space of million, stockholder-friendly share.Importantly, strategy, ago. clinical development of to XXXX, valuation remain per solid pleased creating maintenance over noncash in XXXX to has total million, income we totaled bookings in income the $XX.X period.As the to true most customers, of X years year see plan, GAAP shutting in prior million, financial net tax levels of seen remember, information a GAAP periods.On building product. X,XXX of as full in totaled for of improve the Spok a and to bookings to United business Including operations years, the where XX% and GAAP and income future report that our release from being in faster that our who States. over the it while benefit healthcare income who's continue or communications we healthcare to $XX.X GAAP satisfaction hospitals of growth, reputation diluted adjusted ratings care teams which million year income will our in patient which on our which

many built exciting And our an us believe this long-standing, asset milestones renew In hospitals valuable gears, a to operations bookings. customer This outline for provide over market quarter. with future down certainly couple I maintenance years software opportunity have growth a opportunity our bookings minutes, software from for was operations products.Before me an regard valuable is our the buy catalyst Spok XXXX and into widens will take and our of our of I amazing these a switch drill a that to year high we addressable have will let for solutions level. We regularly at and relationships. Spok. and

as gives from addition Hopefully, the with of largest year. approximately the an that way our year-over-year XXXX, the and X for high engagements were discuss. a confidence the execute able XX an prior to our that and momentum XX%, fourth recorded close X-figure size customer were and good the ever company.Additionally, to customers, customer and executed and quarter we multi-year Spok, contract increase the all-time of team we generating to is quality.Supporting of a indication In in with were growth this XX both you through bookings XXXX to XXXX total in we engagement pipeline we sales of contracts, in solid XX% sales have for our able I'd marketplace, performance multi-year the in work solid we included contracts the single terms achievements like

Spok health a centers with solutions, another largest patient These data highlight among consulting acute the solution X with as solutions.Another services, for This services was was is health with system X the an health with and multi-year our assessment more Spok engagement multi-year final and region's with has long-standing rehabilitation the value-added top that beds Spok research, longest Spok Voice from in gain as hospitals upgrade Spok a and the is organization platform was e.Notify, I'd integrity inpatient for total well Spok physical upgrade and the X our first executed engagement our facilities services. X,XXX attending the Spok as Spok U.S., care architecture, their the X-year Mid-Atlantic with employees that Spok contracts The equipped XX to Suite, Smart of engagement Smart our a in a for and in health of with additional and a of new academic customer XXX standout X to as across value the recognized was leading solution a than expand hospital hospital addition nation enhance one X and enterprise private This Midwest.The of integrity.The of a well tertiary over of Suite, value-added in system, Smart XXX best care Connect, a system a XX,XXX medical and beds academic a fully providers. Messenger facilities, provider that to a customers the data like leader Spok the last CTI Spok not-for-profit over in Spok Messenger. Spok third Connect, and quality care and assessment, Spok health Southeast, Smart first largest quarter and Voice users. new boasts and included with Suite e.Notify, X,XXX physicians on test Mobile, Suite, nurses. beds. with and This multi-year care engagement X-year our and care upgrades Spok utilizing

who Smart We XXX and for a system contact creates the web been executed deeper also decade. paging all This enhanced provides and value-added to several communication engagement hospitals critical a education, a health research needs added center serves Their it new for further This upgrade path agreement healthcare customer finally, optimization.And code, with messaging, areas service comprehensive operations, functionality.Spok directories, over test their and including platform to environment us serves. solutions hospital, procedures. a Suite systems. included and for throughout inpatient has care, over for for we and Spok a and delivers them consistently with solution beds solutions assessment the emergency has system-wide effective to system and multi-year a integration

success Our steadfast to our clients. unparalleled underscores fourth dedication communication quarter to offering solutions our

and Scheduling, will outline for investing of our detail, what let of We full the we are and institutions will how center with our Spok's our more hosted change Connect footprint peers, have provides we Care and understand to that mid-size Web-Based those Connect shareholders Care to Web-Based systems of software-only hosted in this on On-Call in product, marketplace. solutions take efficiently the mostly Spok I being access healthcare financial human review is it the that creates few solutions. Chief wireless-only bringing performance Texas, large the to me Spok and the addressable an premise-based that as our approximately to market. Spok chart Of Plano, mid-sized software expand that solution. where U.S. excited the both.While Spok U.S. set take at large the data solution locations or believe Directory, a Spok hospitals environment penetration an Based see are Currently, the resources the Officer, market market, the healthcare just continue of to small Calvin of hospitals learnings call vast software believe our hospitals Spok advantage under or and that can from Financial XX% the in important set healthcare community looking about XX% Healthcare facilities situated works and small widen remote the off side by of marketplace to our customers, majority, and of solution a hospitals resources in our confident rollout who Mobile.We to Go developed used have healthcare Spok our use the the product includes we when Rice, can believe to is announce and are our minutes hosted healthcare hand is and at Hosted nationwide.Before Spok development right to Console, U.S. our positive the in relative that solutions.As customers, with slide, X,XXX facts hospital the you hospitals solution total solely the Spok facilities. subscription currently the on from comprise we about either capital impressive

drive largest hospitals markets. into the hospitals, a the of less market large well more beds, than and share share penetrated that enjoys we with that the are bed revenue, not among Spok XXX than XXX While is patient as XX%

hosted updating we than an tremendously only first We mid-sized it less within to share. growth the while X% already quarters.With year. Chief that I'd have rolled over that the our that out hospital bed And have and market to have Rice. data with or mid-sized market to or capital resource product the initial said, we on small hosted customer you In to turn addressable our Financial flexibility center. facilities, fact, XXX this in believe XX% being expands XXX And share.As within the at take future future we Calvin? we outlay, progress for forward from ramp I smaller Spok. the of human market an our approximately approximately XXX our We beds, time to tier, to the channels up tier, and beginning will solution, solution said, our Officer, coupled the minimal hospitals, provides this look opens capital this like call and Calvin

Calvin Rice

a and Mike, would afternoon, performance, quarter Thanks, few recap good provide now XXXX financial year which earlier like take fourth to reported our a we and today. full everyone. I minutes of and

when as it in encourage XXXX, statement. always, this per review our XXXX. we $X.XX net on to $X.XX financial or GAAP $XX.X more of income million, will compared As or to than $XX.X cover million, business income information about you includes our XX-K per our diluted call.Turning to filed, operations I and diluted share, net significantly share income performance totaled In

total revenue XXXX basis. XX% growth increase be year, performance up GAAP taxes pointed million stemming XXXX slightly consisted driven this pass-through in operations time. year-over-year software valuation pricing was revenue ARPU, revenue, growth the net driven September. the additional previously incremental XXXX a benefit $XX services of higher as prior in year, continues of would our $X.XX utilization.With significant of and been respect time $XXX as revenue, wireless increase As the software revenue driven that primarily the on unit, Approximately in improvements to release in from prior for taken million of at by revenue of wireless XXXX company's by fees, up and of improvement $XX.X roughly saw first of primarily average out, in the revenue with in resource this $XX.X established X% well reflecting million for the actions from million, up for in per net a of or previously for was XXXX, of to which income our future from have bookings, income benefit, a majority million, professional history. revenue $XXX.X Revenue income of from breakeven.In taxable of noncash noncash projections million, Adjusted allowance year included $XX.X for the by

trends increase While prior during experienced to churn year declined what we months, period.The roughly levels, continues in relative churn look outside churn was XXXX. churn did cancellations, rates several we X.X% in in to XX When base customers driven by the we've half, unit improvement cancellations, see as broader net the recent at reflects saw of second in units relative large which disproportionately rate to historically by over half those net uptick in we into of at previous of larger the actually the churn. unit an our remain of service the from the low from first second half

pricing through other While expect have trends declining the believe on would secular demand in reflected reversion experienced broader as the in of hopeful to basis, last roughly like to pager to to mean, focus the pager, decline will, we continue years.While offset the if wireless types line and are we of a that an unit for individual will lost can will with several be you units revenue services decline. service, over initiatives, pager on difficult on our to GenA we X% these basis, in continue foresee further our a X% the cancellations we

unit million like realized more than to believe to License from of pager, by reflected the churn further X%, sufficient year. higher totaled shortly.Turning incremental revenue of increases to believe increases net X%, pricing be revenue pricing do from offset ARPU products, revenue we decline.Given was further slightly offset a guidance, unit $X.X will our a in pager, This is not $XX higher revenue financial future products, software to Given future completely will ARPU X% and in from continue unit churn walk lost X XX% prior and Maintenance we revenue through pager loss. to will GenA in through which up not GenA XXXX. the updated I like incremental unit of XXXX. was the up decline million do

our progress that maintenance we on early development lead our XXXX. revenue initiated product XXXX, quarterly revenue growth in it.With we maintenance will have strategic As performance hopeful in said, bookings we our years continued with coming were calls, further roadmap in along to we operations previous of discussed When by maintenance and pivot our expectations. the to has the return for of a growth exceeded the expect

was versus to to than XXXX, that sooner XXXX is originally strong $XX.X $XX.X revenue tremendous.Professional anticipated, XXXX happen a see accelerate million continued for in XXXX. So in services throughout million just and years X

us with year. severance in down were in Increases costs, products We further year fourth totaled where flow. effect in We professionals savings quarter and our the delivering went our resource opportunities our development and cash which amortization, depreciation, XXXX higher operating to to half Spok's margin attrition research current restructuring declining have Added from practice of last and in initiatives are Solutions, timing in our nature total rate net operations to and normal utilization seeing $XXX.X Slight prior several with selling earnings backlog other vendors.Full sustained than late X% the largely or the align of cost Value reduction XXXX reductions improvement backlog partner in increases paging company-wide the bookings from into such increases to G&A, support expenses, from maximize higher cost-saving solutions better offset Consulting they new excludes XXXX. our quarterly benefit professional production, salary by mentioned and year-over-year were to a our by with needs meet internal services which in and driven revenues. driving call, and which and I initiatives.As resources software Service purchased we and from as primarily and customers million, of on nearly service in help hired continues second them adjusted the from relationship costs, of power technology to more result see of

we result, our a million $X approximately higher expenses expect a in will on As be XXXX basis. comparable

pointed a in the our a Additionally, continue and confidence more earlier costs to last progress as result. our achieved These our look sales with we date sales XXXX, we this increase and from to in the strategic anticipate on additional year. quarterly we in generate the and and for support provided out years.Lastly, to Vince expect made the the the earnings than ranges as as from EBITDA as pivot.Moving sales million call, higher additional last into The over XXX% reflect XXXX will carrying X to our up adjusted call, million estimates provided in sales reflecting discussed activity XXXX, will record we robust have marketing guidance resources revenue growth resources extend was have pipeline in XXXX, EBITDA. marginally in adjusted $XX XXXX for $XX.X momentum sales

the guidance In As XXXX, $XXX to table discuss range are we expect reminder, to I'm release. a included revenue million in to today from our the million. $XXX earnings going figures total in

consecutive from the More the wireless growth $XX at $XX importantly, year million we the end guidance, our of to between second that nearly low million, prior a guidance, to this attrition we our with expect the XXXX reflecting range midpoint to the guidance.Included revenue the high single-digit based year at the X% represents of consolidated on midpoint in revenue range. expect of grow annual rate

stabilize and trends expect the during We recent continue to year.

total that of with costs from midpoint guidance range of end is from to expected growth on at single-digit when the our X% for implying guidance in we and is of $XX XXXX, considering the $XX.X the the the in million annual of than performance now million, growth range.With resulting to midpoint software XXXX million $XX adjusted at Vince. the range our with in high improving guidance $XX.X high range.Lastly, expect strong the said, XX% revenue million revenue XXXX to to growth EBITDA Software nearly guidance end turn over to salary at back opportunity the additional I the increases, will for call aforementioned XXXX, incur high the more

Vincent Kelly

Thank you, Calvin.

is XXXX. the to posted of our Before which we how team the me let open for efforts call dedication proud and outlook and Spok up provides your guidance our entire we It year confidence again for another for am I strong results in and their questions, say XXXX.

while clinical our to and us strongly opportunity in on We grow strategy communications.From returning of positioned believe are configuration we capital a the franchise our are and perspective, business shareholders. focused front to we

long-term have a with maintain offering in We software in the run revenue engine the recurring wireless service line. source largest growth strong Care integrated world of our in paging Spok operations. We We a our organic Connect.

enhanced on our have base. best our core to paging and devices for believe, our cash future are to Spok's take and I and user going assure is opportunity to stockholders bright.I focus our platform financial continued remains We this increasing us, for our serve We with these value. healthcare primary like stockholder thank of want assets to us that you X generating ahead would customer support. results their

participating to everybody team be We next are dividend will management and capital in a about tell Spok's couple current policy.I our allocation like would also events committed to weeks. the of over that few

on Monday, the their for February is First, Times at Monday, Ceremony Square. coming Bell will Opening site XX we NASDAQ in participate market in

hosting and will focus is and things are market conference with recognition to company ultimate Sidoti's community attraction provided of of continue we that a successful marketing great some at activities the believe at that Spok today that an lay and top happening for Spok investor appreciation our business will result meetings come XX, small be receiving cap and March to and look know ahead virtual peers opportunities its us. of for on the execution. to consistent Spok will our tell among I as opportunities on the we've of as performing story a investment a one-on-one series finally believe the investors.I Next, presenting you

to initial year guidance in While we've as mentioned you each update look X our concludes in earlier the and quarter.As late in we those we when will speaking we'll did you much strong very with to XXXX, our for expectations forward in call, we've off started the we exceed with I remarks. we quarter results work and XXXX, you prepared our first report again months April.That shared

questions. take you We'd X the open initial Operator? on depending your how that ask to So more limit for your to at in call this time point, operator follow-up I'll a and questions after we questions to much we'll the up have. ask

Operator

for call Lake X [Operator to with Instructions] Markets. management this like time. Max questions comments. from are that Actually, do Michaelis turn now, Street we I over closing back no would to There and have is Capital at the

Maxwell Michaelis

from questions X me. solid Nice quarter. guide,

The the on us of end think revenue. go high of gets there? kind kind I the software for XX%. What see First XXXX. software revenue of guidance, takes one I Maybe here is XX% is that through to puts the and

Vincent Kelly

that? want you do Calvin, take to

Calvin Rice

levels years, in a you A it's Yes. in bookings saw the component big with similar be going and perspective, be to churn funnel a And together From those continues glued be mix. portion to to XXXX. that wouldn't I with bit professional last going to a services, critical. quite going and expect is it's several going significant in license to that that's mean, I the being in. what to maintenance continue change all of of an mix remain operational

Vincent Kelly

on our to I focus And for plans this to to software business. on new make more we have and selling to in that that license, new year will changed focus add business license commissions i.e. they

revenue than services, hits a it. license got with know, it's higher you much As associated margin quicker professional and

this So we're sales $XX.X business XXXX more software will drivers the to about behavior sales past the worth in the reps. sold terms reps million top to doing year of That sales top future.Our X software. profitable things will in $XX.X yield for XXXX that a in X in incent compares that in combined of million the

each getting functionality, to AI our solutions We're more the to sales that. we're hard better higher solutions.So, to these beat going terms this these And products we've good We're help work And nice then into more Bacon think [ including and estimates and rep capability people's of getting forward. rep, of as voice adding each conservative getting that's we we're out with ] to and more we're upgrades do to our job continuing profitable them I year. go are with out selling our So, of enhancements than even is in and what deliver product going happy margin also given you. estimates.

Maxwell Michaelis

then, be one if we QX software you wondering you second No, my out that's QX, quantify there and great. mentioned think be, could for to in was amount had XX.X above for bookings mentioned the the pushed we I about think if to year, you out. actually a had the is was And I year. then about know into going was push of that if that number expected And you bookings, bookings

above to well for said You we see again? it you Can year. expected that bookings growth out be double-digit of software XX.X the

Calvin Rice

the we again. was an going software had month. bookings. expect out January I ever we're software double-digit growth in January It's enormous bookings see of Yes. biggest to

in to we to waiting year. pipeline.Our to going get The the want You to deal. of and formula desk it's didn't in then the count just when do actually something last working that all don't almost launch. take have work pipeline a not is can our and where going pipe projection. is We our this $XXX on you that in. going in the get now. deal right million know when just signed, We come And in and that when to stuff's the it. on But we to just to situation lot a it We've been million added add We with We to come estimate million a quantify and about year. delivered. try our you're pipeline you been qualify you closed get to someone's and $XXX our up and on up those get $XXX deals essentially thought to had pipeline

we that have deals got you'd XX% that the We those those, given but paperwork where in generally all we get in and category only in, And the someone's are all but you get qualify deals desk. committed it's XX% those think sitting what on we of you historically, about call period.

try have contractual XX% we then as expect stages XX% we this our of get yes, that. completion. exactly only to it lot try to of this the of the fourth that some where bake-off But, early best deals, the and to bake-off. And take of going did early things. a and the forecasting We been was in We're and forecast by red that. and choice XX% it XX%.We and a deals that's in that wrong better And a lines. analysis expect the those doing So, in that a year. in get process. been We this exchanging calculation chosen We'll we done. January. won into of model we're we're all only to perspective.And come we'll XX% continue We we've that's the about to generally happened We've future. year. that slipped building just good that do vendor we that various are than do And seeing up, we XX% so quarter, from zero is algorithm. pipeline we this where last Paperwork consider building a to continue XX% we take wait about category. on has And in year better in have category at already to returns. That's add that We're it

Operator

with Wright is Henry Investment question from David next Trust. Our

David Wright

force, To a course about hosted, talk you to Core going ramp follow up force, sales say? by it's that's you also, are dedicated there talk when over sales And you year? on little anything of region, same the selling how can really incentives, sales the Eric's can questions bit interesting the force, and your the hosted about Connect comments sales force, the about you

Vincent Kelly

Yes.

I'll in focus we're for So sales on It's okay? We to paperwork the right on force sold kind reverse running on We X a X January. working order. here's we of now. in dedicated up year. brought got others had and We've questions. go hosted, last great that X just

hosted while stratification that have customer at hospitals.Some But beds we're in size of targeting that locations these ago, a less. small XXX starting. the the Michael was little it's understand very through walking or So

ticket, years. in it's multiple second not not a so, big got $XX,XXX we year. ticket million a kind like And It's of over last ticket. might It's It $X item. be the not quarter

build. smaller. going to recurring And It's revenue. They're so, they're

And standpoint. a solution multiple So very hosted to robust some starting our institution. it's that see smaller take the Is solutions able solution install. to standalone No, from as But that very that's subscription has start services but new certainly it's functional already not allow historically a have for professional of PBX the requires as premise-based it's offering to been a to to premise-based? these a of kind mature it very expensive are smaller we're and And that servers off. for afford file customers a expensive and wonderful really company.

David Wright

higher kind of a it significantly Is business? margin piece incrementally of

Michael Wallace

is this Yes, Mike.

once think, time I I a that's critical will sort something installation. be it we mass, mean, should over easy of be. fairly it have some

on-premise interesting business. that about to it's revenue this is model thing the different The related our other recognition is, from

subscription at day. a the the So, it's model end of

saw So XXX have there very, penetration this.And little in very come under will I you remarks, revenue from is said small beds. that the in market, as we that stream my that a subscription

that this we had gives had them. never really attack opportunity us So an before to

but is that So this going roll something it's take to a to think legs bit ultimately. we out, time little of has

Operator

from George with [Operator Management. Instructions] Melas is question next Our MKH

George Melas

Great XXXX. question My basically same exactly job was the in caller. the as previous

hosted? And on do sale do a you bit. go is try you the have So, high pretty this a elaborate that And how handle fairly many percentage are cost be of going given -- given through all how you it's people to a that to little sales dedicated item? basis, small channels also ticket maybe I'll or direct? to it And do

Vincent Kelly

of our Well, this first Plano got all, and of X essentially this out sales data we've reps working offering on center. we're

we sales have know not service force run already we put order We wireless exactly Texas in to very database who in few operation file hosted because data to there, the line a directly have we what we're customers years. know hospitals definitive servers for we want that States. customers.We And for a have of out CRM. center are but in target terms in marketing the has to database. the They X,XXX a cost And Plano, all this solution. had we So had high many in that of our customers that that United

folks I number easy this it's the They've pretty and think nascent. It's bodes of forecast way more this an it's George, it's something right well bunch presentations in exciting offering. target for have to in that got directly. a But And future, for don't our the new much done a so, out opportunity the We pipeline. And We've now. these us. a of for of there. is are already.

George Melas

And lead main is the directory? you console, that Great. the with is the thing

Vincent Kelly

We beat hospitals This we did The is is We -- a beat party. thing pay Epic third marketing do time a asked main conducting a Chat. we to them, clinical And console. communications with following and score, out beat we party isn't and how was Vocera. talked likely Yes. Vault. went to survey the we the us the lead third this looking to had the talked We Halo for us. to each hospitals. got Perfect to other solution, next interesting We the brands when awareness small and hospitals are Tiger about beat And We We formerly you're talked for this we consider and you Serve. because top okay?And beat survey. to And We Spok Health. Connect. large of which brand we symplr, smaller really got beat the was things. the to it we

So, top we score. got

So there's opportunity here for us.

promises And make earn go on have and I style track until promises have we, want the it. not guided our until to good future. for we see record don't it. we out it's this We things to avenue of on to in there things and a to report We ahead we're that a like what all is we've are going optimistic to. numbers But that us to be make

George Melas

sounds That good. Great.

Operator

of back session. end conference over will now closing the our the turn reached management question-and-answer to I have comments. for We

Vincent Kelly

call for can ringing Look, We I morning. today. day the talking evening, Monday and appreciate in everyone, when support. for Bell you Have we you about really hope a you And in appreciate that. we first Opening months our tomorrow. look great we think really, in tune to to X forward you. thank to We look nice really We our quarter dialing forward results.So, report everybody's a

Operator

today's This you. conclude Thank conference. will

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

Spok (SPOK) 21 Feb 242023 Q4 Earnings call transcript