Financial Data and Key Metrics Changes - In 2024, GAAP net income totaled $15 million or $0.73 per diluted share, compared to $15.7 million or $0.77 per diluted share in 2023 [45][29] - Total GAAP revenues were $137.7 million, down from $139 million in 2023, with wireless revenue at $73.5 million, down from $76 million [45][46] - Software revenue increased to $64.1 million in 2024, driven by a nearly 22% increase in professional services revenue [46][51] - Adjusted EBITDA was $29.2 million in 2024, down from $30.3 million in 2023, reflecting lower consolidated revenue but maintaining a healthy margin of over 21% [56] Business Line Data and Key Metrics Changes - Software operations bookings totaled $34.1 million, up more than 13% from the prior year, with significant growth in professional services and maintenance backlog levels exceeding $62 million [30][31] - Professional services revenue reached $17.9 million, up 21.6% from $14.7 million in 2023, indicating improved resource utilization and higher margins [51][52] - Managed services revenue totaled $3.3 million, representing 18.2% of professional services revenue, up from 1.4 million or less than 10% in 2023 [53] Market Data and Key Metrics Changes - The company reported a reduction in net unit churn, with a decline of approximately 5.9% in 2024 compared to a 6.4% decline in 2023 [47] - Wireless revenue performance was primarily driven by an improvement in average revenue per unit (ARPU), which increased by $0.26 year-over-year [46] Company Strategy and Development Direction - The strategic focus remains on growing software revenue, generating cash, and returning capital to stockholders, with a commitment to maintaining a disciplined expense management approach [8][24] - The company aims to enhance its product offerings, particularly through the Spok Care Connect suite, and has invested significantly in research and development [15][19] - The company has a strong recurring revenue model, with approximately 80% of revenue coming from recurring sources, including wireless services and software maintenance [96][97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute in 2025, with expectations for revenue and adjusted EBITDA to remain stable or grow slightly [58][59] - The company anticipates continued demand for its wireless services, despite a secular decline in pager units, and is focused on pricing strategies to offset revenue loss [48][49] - Management highlighted the importance of ongoing product development and customer satisfaction as key drivers for future growth [110][125] Other Important Information - The company returned $26.4 million in cash to stockholders in 2024, continuing its legacy of returning capital since becoming public [8][25] - The company has generated over $1 billion in free cash flow since its inception in 2004, supporting its dividend policy and capital allocation strategy [26] Q&A Session Summary Question: Key attributes of software operations bookings growth - Management indicated that growth was driven by a mix of new contracts, renewals from existing customers, and enhancements to the Care Connect suite [67][70] Question: Contributors to EBITDA guidance - The increase in EBITDA is expected to come from a greater mix of software sales and improved efficiency in professional services [76][78] Question: Reason for headquarters relocation - The relocation to Plano was primarily a cost-saving measure, consolidating operations to improve efficiency [87][89] Question: Recurring revenue metrics - Approximately 80% of bookings come from existing customers, with a significant portion of revenue being recurring [93][96] Question: Product roadmap and timelines - Management provided insights into ongoing product updates and enhancements, which are expected to drive future license sales [107][110]