Spok(SPOK)2021-08-01 17:28Financial Data and Key Metrics Changes - Total GAAP revenue for Q2 2021 was 15.9 million, up more than 8% from the prior year quarter, driven by a nearly 28% increase in professional services revenue [11][21] - Operating expenses for Q2 2021 were reported at 34.1 million in the same period a year ago [26] Business Line Data and Key Metrics Changes - Wireless subscriber units increased sharply, resulting in net pager losses declining to approximately 5,000 units, a record low of 0.6% [10] - Software maintenance revenue for Q2 2021 was 9.5 million in the corresponding year-ago period [22] - The company added 6 new customers in Q2, including 3 wireless and 3 software [13] Market Data and Key Metrics Changes - The healthcare segment comprises nearly 85% of the paging subscriber base, demonstrating stable revenue trends [10] - The company reported a software revenue backlog of 3.2 million from the prior quarter [11] Company Strategy and Development Direction - The company aims to achieve sustainable, profitable business growth while maximizing long-term shareholder value through capital allocation strategies that include dividends and strategic investments [30] - Focus on developing the Spok Go platform, with expectations that subscription revenue will significantly exceed current maintenance revenue over time [35][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the size and quality of the software deals pipeline for the second half of 2021, despite challenges posed by the COVID-19 pandemic [7][18] - The company is closely monitoring market conditions and is prepared to adapt operations to align with demand levels [31] Other Important Information - The company released its first Environmental, Social and Governance (ESG) report, highlighting its commitment to sustainability and corporate responsibility [15] - The company has discontinued furloughs as of Q3 2021, reflecting a positive shift in operational strategy [28] Q&A Session Summary Question: What do the selling efforts look like for transitioning existing customers to Spok Go? - The selling efforts consist of a new business group focused on Spok Go and existing enterprise sales directors selling legacy software [34] Question: What is the expectation for maintenance revenue transitioning to Spok Go? - The expectation is that subscription revenue from Spok Go will significantly exceed current maintenance revenue over time, but it is still early in the transition process [35][37] Question: When will operational results give confidence in the company's value? - Management expressed frustration with the stock price but highlighted strong performance in the wireless business and a valuable customer base [39] Question: Can you provide an update on the integration of Spok Go with contact center solutions? - Significant progress has been made in integrating contact centers, with a focus on delivering enhanced functionality to stimulate adoption [44]