Spok(SPOK)2020-02-29 08:18Financial Data and Key Metrics Changes - Consolidated revenue for 2019 was 169.5 million in 2018, primarily due to a 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 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 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]