Spok Holdings, Inc. (SPOK) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

I believe our results provide a solid springboard for the year ahead. First quarter highlights include a 4% year-over-year growth in total revenues driven by a more than 9% increase in software revenues. Strong year-over-year increases in net income and adjusted EBITDA levels of 22.7% and 8.9% respectively. A near 6% year-over-year increase in software operations bookings from already strong prior year levels, a 44% increase in year-over-year professional services revenue driven by a threefold increase in the managed services category, a more than 15% increase in our software backlog, and improved wireless trends as net unit churn was primarily offset by continued expansion of our wireless average revenue per unit and sales of our higher revenue encrypted HIPAA compliant off a numeric Gen A pager. And we were able to accomplish all this while continuing to invest in our products and infrastructure at levels consistent with 2024. In short, I believe Spoke is doing an excellent job of balancing our goal of returning cash to our stockholders with those investments in order to fuel future growth. In the first quarter of 2025, we generated over 8.2 million of adjusted EBTA which more than covered the $7.9 million we returned to our stockholders. However, at the same time, we maintained research and development investment at prior year levels. We're on track to invest between $11 and $12 million in product research and development expense in 2025. We believe this investment will fuel future software revenue growth and that our extensive experience selling and operating our established communication solutions will create significant value for stockholders by maximizing revenue and cash flow generation. As I mentioned, Spoke has a proud legacy of creating stockholder value t...