Spok(US:SPOK)2024-10-30 20:02Financial Performance - Total revenue for Q3 2024 was $34.87 million, a decrease of 1.6% compared to $35.43 million in Q3 2023[4] - Net income for Q3 2024 was $3.66 million, down 17.8% from $4.45 million in Q3 2023[4] - Adjusted EBITDA for Q3 2024 was $7.53 million, a decline of 10.5% from $8.42 million in Q3 2023[4] - Operating income for Q3 2024 was $4,961,000, representing 14.2% of total revenue, down from 17.5% in Q3 2023[19] - Total operating expenses increased to $29,909,000, which is 85.8% of total revenue, compared to 82.5% in the prior year[19] - Net income for the nine months ended September 30, 2024, was $11,321,000, down from $12,301,000 for the same period in 2023[22] - Adjusted EBITDA for the three months ended September 30, 2024, was $7,534,000, down from $8,422,000 in the same period last year, a decrease of 10.6%[26] Revenue Breakdown - Wireless average revenue per unit (ARPU) was $7.95 in Q3 2024, reflecting a nearly 5% year-over-year growth[2] - Wireless revenue decreased to $18,261,000, down 3.7% from $18,972,000 year-over-year[19] - Software revenue increased slightly to $16,609,000, compared to $16,456,000 in the same quarter last year[19] - Software operations bookings reached $10.4 million in Q3 2024, a 64.4% increase year-over-year, marking the highest total in six years[2] - Software backlog increased to $63.6 million as of September 30, 2024, up more than 19% from the prior year quarter[2] Cash and Assets - Cash and cash equivalents increased by nearly $4.0 million in Q3 2024, totaling $27.8 million as of September 30, 2024[2] - Cash and cash equivalents at the end of the period were $27,830,000, a decrease from $31,989,000 at the beginning of the period[22] - Total assets decreased to $216,762,000 from $227,684,000 at the end of 2023[21] - Total liabilities decreased to $60,474,000 from $63,913,000 at the end of 2023[21] - Stockholders' equity decreased to $156,288,000 from $163,771,000 at the end of 2023[21] Capital and Expenses - Capital returned to stockholders in Q3 2024 totaled $6.33 million, a 1.4% increase from $6.24 million in Q3 2023[4] - Research and development costs for the first nine months of 2024 amounted to $9.0 million, supporting future growth initiatives[2] - Adjusted operating expenses for the three months ended September 30, 2024, were $28,509,000, compared to $27,871,000 for the same period last year, an increase of 2.3%[25] - Total adjusted operating expenses for the nine months ended September 30, 2024, were $85,123,000, compared to $83,963,000 for the same period last year, an increase of 1.4%[25] Units in Service - Total units in service decreased to 730,000 as of September 30, 2024, down from 765,000 a year earlier, representing a decline of 4.6%[23] - The number of units in the >1,000 units category decreased to 564,000 from 579,000 in the previous quarter, a decline of 2.6%[23] - Healthcare segment accounted for 85.7% of total ending units in service, slightly down from 86.1% in the previous quarter[24] - The government segment represented 4.1% of total ending units in service, consistent with the previous quarter's performance[24] Average Revenue Per Unit - Average Revenue Per Unit (ARPU) for units with 1 to 100 units increased to $12.70, up from $12.51 in the previous quarter, reflecting a growth of 1.5%[24] - The ARPU for units with >1,000 units increased to $7.33, up from $7.21 in the previous quarter, reflecting a growth of 1.7%[24]