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• Net Income: $15 million or $0.73 per diluted share for 2024.

• Total Revenue: $137.7 million in 2024, down from $139 million in 2023.

• Wireless Revenue: $73.5 million in 2024, down from $76 million in 2023.

• Software Revenue: $64.1 million in 2024, driven by a nearly 22% increase in professional services revenue.

• Adjusted EBITDA: $29.2 million in 2024, down from $30.3 million in 2023.

• Cash Returned to Stockholders: $26.4 million in 2024.

• Software Operations Bookings: $34.1 million in 2024, up more than 13% from the prior year.

• Professional Services Revenue: $17.9 million in 2024, up 21.6% from 2023.

• Managed Services Revenue: $3.3 million in 2024, up from $1.4 million in 2023.

• Cash and Cash Equivalents: $29.1 million at the end of 2024.

• 2025 Revenue Guidance: Expected to range from $134 million to $142 million.

• 2025 Adjusted EBITDA Guidance: Expected to range from $27.5 million to $32.5 million.

• Warning! GuruFocus has detected 7 Warning Sign with SPOK.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Spok Holdings Inc (NASDAQ:SPOK) returned $26.4 million of cash to stockholders and generated over $29 million of adjusted EBITDA in 2024.

• The company achieved double-digit growth in its professional services business and software operations bookings, with a 13% increase in software operations bookings from the prior year.

• Spok Holdings Inc (NASDAQ:SPOK) maintained solid profitability levels and continued effective expense management, with operating expenses virtually unchanged from 2023.

• The company invested over $11.5 million in product research and development, enhancing its product offerings and maintaining a strong industry reputation.

• Spok Holdings Inc (NASDAQ:SPOK) secured 82 six and seven-figure customer contracts, a 22% increase from 2023, and executed 40 multi-year engagements, indicating strong sales momentum.

Negative Points

• Total GAAP revenues for 2024 were $137.7 million, down from $139 million in 2023, indicating a slight decline in overall revenue.

• Wireless revenue decreased to $73.5 million from $76 million in the prior year, reflecting a continued decline in demand for wireless services.

• License and hardware revenue fell to $9 million from $11.4 million in 2023, showing a decrease in this segment of the business.

• Adjusted EBITDA decreased to $29.2 million in 2024 from $30.3 million in 2023, reflecting lower consolidated revenue.

• The company anticipates continued secular decline in demand for wireless services, with expected net unit churn ranging from 4% to 6% in 2025.