UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (Exact name of registrant as specified in its charter) Delaware 16-1694797 (State or other jurisdiction of incorporation or organization) For the quarterly period ended March 31, 2021 (I.R.S. Employer Identification No.) or 5911 Kingstown Village Pkwy, 6th Floor ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securiti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-32358 SPOK HOLDINGS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

Spok Holdings, Inc. (NASDAQ:SPOK) Q4 2020 Earnings Conference Call February 18, 2021 10:00 AM ET Company Participants Michael Wallace - CFO & COO Vincent Kelly - President, CEO & Director Conference Call Participants Ryan Vardeman - Palogic Value Management Richard Dearnley - Longport Partners George Melas - MKH Management Company Operator Good morning, ladies and gentlemen, and welcome to the Spok 2020 Fourth Quarter Investor Call. Today's call is being recorded. On line today, we have Vince Kelly, Presid ...

Financial Data and Key Metrics Changes - Total GAAP revenue for Q3 2020 was $37.7 million, compared to $35.7 million in Q2 2020 and $39.5 million in the same period last year [19][23] - Software revenue for Q3 2020 was $16.9 million, up from $14.7 million in Q2 2020, approaching prior year levels [23] - Adjusted EBITDA for the first nine months of 2020 was approximately $4.3 million, with cash balances growing to over $79 million by the end of Q3 [7][28] Business Line Data and Key Metrics Changes - Software bookings exceeded $21 million in Q3 2020, up almost 39% from the prior quarter and a 5% increase from the prior year [20][11] - Wireless revenue for the first nine months of 2020 declined a record low of 4.9% from the prior year period, with a net decline in paging units totaling 1.9% [25][12] - The software revenue backlog reached a record $51.7 million, up about 7% sequentially [11] Market Data and Key Metrics Changes - The company reported strong performance in its wireless business, particularly in the healthcare segment, which comprises nearly 84% of its paging subscriber base [12] - The recognition of Spok's solutions by U.S. News & World Report's Best Hospitals Honor Roll enhances credibility and provides momentum in the market [8][9] Company Strategy and Development Direction - The company is transitioning from a wireless and premise-based software provider to a cloud-native, SaaS-based software solutions provider with Spok Go [30][31] - The capital allocation strategy focuses on sustainable growth, dividends, share repurchases, and strategic investments in product development [30] - The company aims to drive software revenue growth while managing declines in wireless revenue, with a focus on enhancing the Spok Go platform [33] Management's Comments on Operating Environment and Future Outlook - Management noted an improving outlook despite the ongoing challenges of the pandemic, with outpatient procedures returning to pre-pandemic levels in many markets [32] - The company is cautious about the potential impact of COVID-19 spikes on customer financial health but remains optimistic about its positioning for future success [32][29] Other Important Information - The company has maintained SOC 2 Type 2 compliance for its solutions, enhancing security for customer data [14][15] - Spok added 10 new healthcare software customers in Q3 2020 and closed two significant Spok Go deals totaling $812,000 in aggregate contract value [16][20] Q&A Session Summary Question: Can you talk about the total subscription opportunity for Spok Go over the next 5 or 10 years? - Management believes the subscription opportunity remains at around $1 billion, despite current pandemic challenges [38] Question: Across how many hospitals are the two Spok Go contracts? - The contracts are with two individual healthcare organizations, one with many physical locations and the other with fewer [39] Question: Why would some large new logos not go with Spok Go? - Some customers prefer to see others of similar size using Spok Go before committing, while others are upgrading existing solutions [44] Question: Will wireless churn pick back up in the first half of '21? - Management does not expect a significant increase in churn, as the trend has shown a decrease in revenue erosion over the years [45]

Financial Data and Key Metrics Changes - Consolidated revenue for 2019 was $160.3 million, down approximately 5.4% from $169.5 million in 2018, primarily due to a $6.1 million reduction in wireless revenue [18][36] - Software revenue for 2019 decreased by approximately $3.1 million compared to the prior year, reflecting a focus on developing the new cloud-native platform [19] - Total revenue for Q4 2019 was $39.5 million, down from $43.3 million in Q4 2018 [35] Business Line Data and Key Metrics Changes - Software operations bookings saw a sequential growth of more than 17% in Q4 2019 [16] - Wireless revenue for Q4 2019 declined by only 0.9% from the prior quarter, with a full-year decline of 6.5%, marking a record low [37][38] - Maintenance revenue renewal rates for software remained strong at approximately 99% [36] Market Data and Key Metrics Changes - The company added more than 150 new accounts in 2019, primarily in the healthcare and government sectors [28] - Wireless subscriber base saw 112,000 new units added in 2019, with a year-over-year rate of paging unit erosion consistent with prior year levels [21][22] Company Strategy and Development Direction - The company is transitioning from customized premise-based solutions to a configurable cloud-native solution, with approximately 80% of R&D spend in 2020 allocated to the new platform, Spok Go [12][66] - The strategic pivot aims to offer a single integrated clinical communication and collaboration platform, addressing customer needs for a unified approach [64][65] - The company plans to balance internal development and sales efforts for Spok Go while maintaining its wireless subscriber base [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term success of Spok Go, despite challenges in achieving immediate revenue recognition [9][42] - The company anticipates significant bookings in 2020, particularly in the second half of the year, as visibility improves [83] - Management emphasized the importance of continued investment in R&D to support long-term growth and shareholder value [66][69] Other Important Information - The company returned over $16.4 million to shareholders in 2019 through dividends and share repurchases [17] - The balance sheet remains strong with cash and short-term investments totaling $77.3 million at year-end 2019 [34] - An $8.8 million non-cash impairment charge was recorded in Q4 2019 due to a goodwill assessment, but management remains confident in the future value of the business [41][42] Q&A Session Summary Question: What are the 2020 bookings goals for the cloud platform? - Management did not issue specific bookings goals for the legacy or Spok Go platform in the current guidance [76] Question: Concerns about the lack of specific metrics for the new platform's success - Management acknowledged the frustration and stated that while they are excited about the future, they are cautious about providing specific bookings guidance due to past delays in platform delivery [78][80] Question: When can stakeholders expect to see confidence reflected in the numbers? - Management expects significant bookings in 2020, primarily in the second half of the year, and will provide updates as results come in [83]

Spok Holdings, Inc. (NASDAQ:SPOK) Q2 2019 Earnings Conference Call August 1, 2019 10:00 AM ET Company Participants Mike Wallace - Chief Financial Officer Vince Kelly - President and Chief Executive Officer Conference Call Participants Ryan Vardeman - Palogic Operator Good morning, and welcome to Spok's Second Quarter Investor Call. Today's call is being recorded. On line today, we have Vince Kelly, President and Chief Executive Officer; and Mike Wallace, Chief Financial Officer. At this time, for opening co ...

Financial Data and Key Metrics Changes - Total GAAP revenue for Q1 2019 was $41.8 million, a decrease from $43.1 million in Q1 2018 [29] - Software revenue reached $19.2 million, reflecting a nearly 2% increase from the prior year [30] - Adjusted operating expenses were $38.3 million, down from $39.8 million in the year-earlier quarter [33] - EBITDA for the quarter was approximately $3.5 million, showing an increase both sequentially and year-over-year [37] Business Line Data and Key Metrics Changes - Software maintenance revenue renewal rates exceeded 99%, providing a stable revenue base [11][31] - Wireless revenue declined by 6.8% from the prior year, driven by solid gross additions and minimized churn [32] - Gross pager placements were 27,000, while gross disconnects decreased by nearly 15% year-over-year [15] Market Data and Key Metrics Changes - The healthcare segment comprises nearly 82% of the paging subscriber base, indicating strong performance in this market [17] - A large public hospital in Australia was added as a customer, showcasing the company's expansion into international markets [20] Company Strategy and Development Direction - The company is focused on enhancing its Cloud Native enterprise communications platform, Spok Care Connect, which is expected to be a game changer in healthcare communication technology [9][10] - The capital allocation strategy includes dividends, share repurchases, and strategic investments in product development and infrastructure [44][45] - The company is exploring select M&A opportunities but prefers building its integrated platform over acquisitions [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for Q2 2019, indicating a strong sales outlook despite a seasonal dip in Q1 [72] - The company aims to accelerate product development and drive software revenue growth while managing wireless revenue declines [55] Other Important Information - The company ended Q1 2019 with a cash balance of $81.8 million, down approximately $5.5 million from the end of 2018 [38] - The adoption of ASC 842 resulted in a $17 million increase in noncurrent assets and corresponding liabilities [40] Q&A Session Summary Question: Is the $2.5 billion opportunity for the communication software suite based on annual subscription revenue? - The $2.5 billion to $3 billion figure is based on an on-prem license market, with about $1 billion for annual subscription revenue [62] Question: What is the outlook for bookings for the Care Connect platform? - The company expects to start selling the Care Connect platform in the second half of the year, with significant revenue anticipated in 2020 [63] Question: What products did the dozen new customers purchase? - New customers purchased a variety of products, primarily contact center and mobile solutions [65] Question: What is the outlook for operating expenses and R&D investment? - R&D expenses are expected to stabilize, with no significant increases anticipated moving forward [70] Question: What has driven the increase in accounts receivable? - The increase is attributed to slower payments in the hospital sector and larger, more complex deals that extend payment terms [76]

Financial Data and Key Metrics Changes - Consolidated revenue for 2018 was $169.5 million, down approximately 1% from the prior year, a slower decline compared to nearly 5% in 2017 [22][33] - Fourth quarter total revenue was $43.3 million, consistent with the prior year quarter and up from $42.5 million in the third quarter of 2018 [36] - Software revenue increased by 7.4% year-over-year, with fourth quarter software revenue reflecting a 5% increase from both the prior quarter and the fourth quarter of 2017 [33][37] - Wireless revenue for the fourth quarter declined by a record low 0.7%, with a historical low erosion rate of 3.3% in the second half of 2018 [38][24] Business Line Data and Key Metrics Changes - Software bookings improved more than 20% year-over-year in the fourth quarter, totaling $23.1 million [19][47] - Annual software bookings increased nearly 5% from prior year levels [19] - Wireless subscriber erosion totaled 57,000 units, down 8% from the prior year, with wireless revenue erosion at 6.8%, a 90 basis point improvement from the prior year [24][25] Market Data and Key Metrics Changes - Demand for software solutions remained strong in North American markets, particularly among hospitals and healthcare organizations [23] - The healthcare segment was the best performing market segment in the fourth quarter, with the highest rate of gross placements and lowest unit disconnects [25] Company Strategy and Development Direction - The company is transitioning from a telecommunications provider to a software solutions provider, focusing on the North American healthcare market [11][12] - The introduction of the next evolution of the Spok Care Connect platform was well received at industry conferences, indicating positive market reception [12][30] - The company aims to capture a significant portion of the multi-billion dollar healthcare IT communications market through its integrated platform [73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance and strategic direction, highlighting the importance of software revenue growth and the stability of wireless revenue [8][11] - The company plans to maintain its capital allocation strategy, returning value to shareholders while investing in long-term growth [80][81] - Management anticipates that the new Care Connect platform will begin generating revenue in the latter half of 2019, with more significant contributions expected in 2020 and beyond [85][89] Other Important Information - The company returned over $23.6 million to shareholders in 2018 through dividends and share repurchases [20][28] - Operating expenses for 2018 totaled $161 million, reflecting a 9% increase from the prior year, primarily due to investments in the Spok Care Connect platform [39][40] - The company operates with a strong balance sheet, maintaining cash and short-term investments of $87.3 million as of December 31, 2018 [34] Q&A Session Summary Question: What is the success criteria for the investment in Spok Care Connect 2.0 in 2019 and beyond? - The success criteria are embedded in the revenue and operating expenses guidance, with expectations for more significant benefits in 2020 and 2021 [84] Question: What is the embedded annual recurring revenue from the Spok 2.0 platform in the 2019 guidance? - The majority of 2019 revenue will be driven by the existing platform, with the new Care Connect platform expected to begin generating revenue in the latter half of the year [89] Question: Why did the service, rental, and maintenance expenses increase as a percentage of paging revenue? - The increase is due to a reclassification of expenses rather than a fundamental uptick in costs [92] Question: What is the trend regarding the allowance for doubtful accounts? - The increase in the allowance for doubtful accounts is primarily a one-time event related to software receivables, with no significant ongoing trend expected [94] Question: How is the Professional Services Group expected to perform next year? - The Professional Services Group is transitioning to improve utilization and is expected to achieve margins of 30% to 40% as the company evolves its service delivery [96][98] Question: How are bookings distributed across various revenue line items? - Current bookings are heavily focused on services, but the company is working to increase license revenue, which is more profitable [99]