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Spok Reports Fourth Quarter And Full Year 2023 Results

Total annual revenue growth for the first time in the Company's history, with year-over-year growth in both Software and Wireless revenue

2023 Software operations bookings, up 22% from the prior year

Company provides earnings guidance for 2024

Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the fourth quarter and full year ended December 31, 2023. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on March 29, 2024, to stockholders of record on March 15, 2024.

Recent Highlights:

  • Generated net income of $3.4 million, or $0.17 per diluted share, in the fourth quarter, compared to net income of $24.2 million, or $1.21 per diluted share, in the prior year, or $2.3 million and $0.12 per diluted share, when excluding the $21.9 million non-cash tax benefit related to the release of the previously established valuation allowance
  • Generated $6.5 million of adjusted EBITDA in the fourth quarter, compared to $5.6 million in the fourth quarter of 2022
  • Software operations bookings totaled $4.1 million in the fourth quarter
  • 2023 Software operations bookings are up more than 22% from 2022
  • Fourth quarter 2023 Software operations bookings included 14 six-figure customer contracts
  • Fourth quarter 2023 Software revenue totaled $14.9 million, up 4% from the prior year period
  • Fourth quarter 2023 Wireless average revenue per unit (ARPU) was $7.84, up on a year-over-year basis, with units in service down 2.5% from the prior quarter and 6.4% on a trailing-twelve-month basis
  • Fourth quarter 2023 Wireless revenue of $19.1 million, compared to revenue of $19.0 million in the same period in 2022
  • Capital returned to stockholders in 2023 totaled $25.6 million in the form of the Company’s regular quarterly dividend
  • Cash and cash equivalents balance of $32.0 million on December 31, 2023, and no debt

"I am so proud of the very strong performance our team was able to deliver in 2023, and their continued dedication to Spok's mission to grow revenue, generate cash flow and return capital to stockholders,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “Last year we achieved numerous operational and financial milestones as a 3.3% year-over-year increase in total revenue, the first in the Company's history, was coupled with a more than 12% decline in operating expenses. In addition, we strengthened our sales team and made tremendous progress in executing our product roadmap and building a robust product pipeline, both in terms of size and quality. We exited last year with record Software backlog levels, which were up nearly 28% from 2022. Software operations bookings for the year totaled $30.1 million and were up 22% from an already strong level of bookings in 2022. Included in this performance were 67 six-figure customer contracts, which exceeded prior year levels. Software operations bookings included the largest customer contract ever signed in the Company's history and we saw a doubling of our average new contract size. Most importantly, last year's performance included 30 multi-year engagements, up approximately 60% from the level generated in 2022. Lastly, we were able to generate this growth, while increasing customer satisfaction scores and retention.

"In short, I believe Spok has done an excellent job of balancing the necessary investments we needed to make in our products and infrastructure in order to fuel future growth, while continuing to create stockholder value and return capital to our stockholders," continued Kelly. "In 2023, we generated nearly $16 million of net income and more than $30 million of adjusted EBITDA, which more than covered the $25.6 million we returned to our stockholders. However, at the same time, we invested more than $10.5 million in our products and services. We remain committed to this approach and believe our extensive experience operating our established and well-regarded communication solutions will create significant value going forward.

"Based on our performance in 2023, and the numerous financial and operational milestones we achieved during the year, we are providing guidance estimates for revenue and adjusted EBITDA generation for this year. This guidance reflects the team's confidence in being able to outpace our 2023 performance. At the midpoint of the guidance range, we believe we are on track to again grow consolidated revenue in 2024, on a year-over-year basis, with slight declines in wireless revenue being more than offset by continued growth in software revenue. We also anticipate that the midpoint of our adjusted EBITDA guidance will be consistent with last year, with additional growth potential at the high-end of the guidance range. Of course, we will continue to update you on our outlook each quarter when we report our results," concluded Kelly.

Financial Highlights:

 

For the three months ended December 31,

 

For the twelve months ended December 31,

(Dollars in thousands)

2023

 

2022

 

Change (%)

 

2023

 

2022

 

Change (%)

Revenue

 

 

 

 

 

 

 

 

 

 

 

Wireless revenue

 

 

 

 

 

 

 

 

 

 

 

Paging revenue

$

18,220

 

$

18,450

 

(1.2

)%

 

$

73,135

 

$

73,323

 

(0.3

)%

Product and other revenue

 

871

 

 

571

 

52.5

%

 

 

2,833

 

 

2,299

 

23.2

%

Total wireless revenue

$

19,091

 

$

19,021

 

0.4

%

 

$

75,968

 

$

75,622

 

0.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Software revenue

 

 

 

 

 

 

 

 

 

 

 

License

$

998

 

$

1,269

 

(21.4

)%

 

$

8,721

 

$

7,202

 

21.1

%

Professional services

 

3,785

 

 

3,063

 

23.6

%

 

 

14,694

 

 

12,565

 

16.9

%

Hardware

 

587

 

 

585

 

0.3

%

 

 

2,675

 

 

2,211

 

21.0

%

Maintenance

 

9,492

 

 

9,317

 

1.9

%

 

 

36,967

 

 

36,934

 

0.1

%

Total software revenue

 

14,862

 

 

14,234

 

4.4

%

 

 

63,057

 

 

58,912

 

7.0

%

Total revenue

$

33,953

 

$

33,255

 

2.1

%

 

$

139,025

 

$

134,534

 

3.3

%

 

 

For the three months ended December 31,

For the twelve months ended December 31,

(Dollars in thousands)

2023

2022

Change (%)

2023

2022

Change (%)

GAAP

 

Operating expenses

$

29,871

$

30,300

(1.4

)%

$

117,797

$

134,296

(12.3

)%

Net income

(1)

$

3,365

$

24,226

(86.1

)%

$

15,666

$

21,856

(28.3

)%

Cash, cash equivalents, and short-term investments (as of period end)

$

31,989

$

35,754

(10.5

)%

$

31,989

$

35,754

(10.5

)%

Capital returned to stockholders

$

6,238

$

6,162

1.2

%

$

25,642

$

25,011

2.5

%

 

 

Non-GAAP

 

Adjusted operating expenses

$

28,765

$

28,481

1.0

%

$

112,728

$

123,396

(8.6

)%

Adjusted EBITDA

$

6,509

$

5,647

15.3

%

$

30,342

$

14,965

102.8

%

 

(1) For the three months and year ended December 31, 2022 Net income includes a non-cash benefit of $21.9 million related to the release of a previously established valuation allowance in alignment with our projections of future taxable income.

 

 

For the three months ended December 31,

 

For the twelve months ended December 31,

(Dollars in thousands, excluding units and service and ARPU)

 

2023

 

2022

 

Change (%)

 

2023

 

2022

 

Change (%)

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

Wireless units in service

 

 

765

 

 

817

 

(6.4

)%

 

 

765

 

 

817

 

(6.4

)%

Wireless average revenue per unit (ARPU)

 

$

7.84

 

$

7.50

 

4.5

%

 

$

7.71

 

$

7.34

 

5.0

%

Software operations bookings(1)

 

$

4,112

 

$

5,863

 

(29.9

)%

 

$

30,113

 

$

24,692

 

22.0

%

Software backlog (as of period end)

 

$

56,231

 

$

43,966

 

27.9

%

 

$

56,231

 

$

43,966

 

27.9

%

 

(1) Software operations bookings includes net new (i.e., new customers or incremental add-on sales to existing customers) sales of license, professional services, equipment, and first-year maintenance.

Financial Outlook:

Regarding financial guidance, the Company expects the following for the full year 2024:

(Unaudited and in millions)

 

Current Guidance

Full Year 2024

 

 

From

 

To

Revenue

 

 

 

 

Wireless

 

$

72.0

 

$

75.0

Software

 

$

64.0

 

$

69.0

Total Revenue

 

$

136.0

 

$

144.0

 

 

 

 

 

Adjusted EBITDA

 

$

27.5

 

$

32.5

2023 Fourth Quarter Call:

Management will host a conference call and webcast to discuss these financial results on Wednesday, February 21, 2024, at 5:00 p.m. Eastern Time. The presentation is open to all interested parties and may include forward-looking information.

Conference Call Details

 

Date/Time:

 

Wednesday, February 21, 2024, at 5:00 p.m. ET

Webcast:

 

https://www.webcast-eqs.com/register/spok_q42023_en/en

U.S. Toll-Free Dial In:

 

877-407-0890

International Dial In:

 

1-201-389-0918

To access the call, please dial in approximately ten minutes before the start of the call. For those unable to join the live call, an OnDemand version of the webcast will be available following the call under the URL link and on the investor relations website.

About Spok

Spok, Inc., a wholly owned subsidiary of Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Alexandria, Virginia, is proud to be a global leader in healthcare communications. We deliver clinical information to care teams when and where it matters most to improve patient outcomes. Top hospitals rely on the Spok Care Connect® platform to enhance workflows for clinicians and support administrative compliance. Our customers send over 100 million messages each month through their Spok® solutions. Spok enables smarter, faster clinical communication. For more information, visit spok.com or follow @spoktweets on Twitter.

Spok is a trademark of Spok Holdings, Inc. Spok Care Connect and Spok Mobile are trademarks of Spok, Inc.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: adjusted operating expenses and adjusted EBITDA. Adjusted operating expenses excludes depreciation, amortization and accretion expense, impairment of intangible assets and severance and restructuring costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax benefit/expense, depreciation, amortization and accretion expense, stock-based compensation expense, impairment of intangible assets and severance and restructuring. With respect to our expectations under "Financial Guidance" above, reconciliation of adjusted EBITDA to net income is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and uncertainty with respect to certain items included in net income that are excluded from adjusted EBITDA, in particular, income tax benefit / expense, stock-based compensation expenses, impairment of intangible assets, severance and restructuring and other non-recurring expenses. These items can have unpredictable fluctuations based on unforeseen activity that is out of our control and /or cannot be reasonably predicted.

We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Spok's financial condition and results of operations. We use these non-GAAP measures for financial, operational, and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures permit us to more thoroughly analyze key financial metrics used to make operational decisions and allow us to assess our core operating results. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies who present similar non-GAAP financial measures. We adjust for certain items because we do not regard these costs as reflective of normal costs related to the ongoing operation of the business in the ordinary course. In general, these items possess one or more of the following characteristics: non-cash expenses, factors outside of our control, items that are non-operational in nature, and unusual items not expected to occur in the normal course of business. We believe it is important to exclude these costs, given that they do not represent future operational costs under this strategic business plan. This allows us to assess the underlying performance of our core business under this new strategic business plan.

We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principle of these non-GAAP financial measures is that they exclude significant amounts that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.

Safe Harbor Statement under the Private Securities Litigation Reform Act

Statements contained herein or in prior press releases which are not historical fact, such as statements regarding our future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause our actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, our ability to manage wireless network rationalization to lower our costs without causing disruption of service to our customers; our ability to retain key management personnel and to attract and retain talent within the organization; the productivity of our sales organization and our ability to deliver effective customer support; economic conditions such as recessionary economic cycles, higher interest rates, inflation and higher levels of unemployment; risks related to our overall business strategy, including maximizing revenue and cash generation from our established businesses and returning capital to stockholders through dividends and repurchases of shares of our common stock; competition for our services and products from new technologies or those offered and/or developed from firms that are substantially larger and have much greater financial and human capital resources; continuing decline in the number of paging units we have in service with customers, commensurate with a continuing decline in our wireless revenue; our ability to address changing market conditions with new or revised software solutions; undetected defects, bugs, or security vulnerabilities in our products; our dependence on the U.S. healthcare industry; the sales cycle of our software solutions and services can run from six to eighteen months, making it difficult to plan for and meet our sales objectives and bookings on a steady basis quarter-to-quarter and year-to-year; our reliance on third-party vendors to supply us with wireless paging equipment; our ability to maintain successful relationships with our channel partners; our ability to protect our rights in intellectual property that we own and develop and the potential for litigation claiming intellectual property infringement by us; our use of open source software, third-party software and other intellectual property; the reliability of our networks and servers and our ability to prevent cyber-attacks and other security issues and disruptions; our reliance on data centers and other systems and technologies provided by third parties, and technology systems and electronic networks supplied and managed by third parties; cyberattacks, data breaches or other compromises to our or our critical third parties' systems, data, products or services; our ability to realize the benefits associated with our deferred income tax assets; future impairments of our long-lived assets or goodwill; risks related to data privacy and protection-related laws and regulation; and our ability to manage changes related to regulation, including laws and regulations affecting hospitals and the healthcare industry generally, as well as other risks described from time to time in our periodic reports and other filings with the Securities and Exchange Commission. Although Spok believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Spok disclaims any intent or obligation to update any forward-looking statements.

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited and in thousands except share, per share amounts and ARPU)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

 

12/31/2023

 

12/31/2022

 

12/31/2023

 

12/31/2022

Revenue:

 

 

 

 

 

 

 

 

Wireless

 

$

19,091

 

 

$

19,021

 

 

$

75,968

 

 

$

75,622

 

Software

 

 

14,862

 

 

 

14,234

 

 

 

63,057

 

 

 

58,912

 

Total revenue

 

 

33,953

 

 

 

33,255

 

 

 

139,025

 

 

 

134,534

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenue (exclusive of items shown separately below)

 

 

6,933

 

 

 

6,859

 

 

 

26,818

 

 

 

28,267

 

Research and development

 

 

2,642

 

 

 

2,281

 

 

 

10,549

 

 

 

13,625

 

Technology operations

 

 

6,399

 

 

 

6,800

 

 

 

25,843

 

 

 

27,412

 

Selling and marketing

 

 

4,028

 

 

 

3,667

 

 

 

16,350

 

 

 

16,296

 

General and administrative

 

 

8,763

 

 

 

8,874

 

 

 

33,168

 

 

 

37,796

 

Depreciation and accretion

 

 

728

 

 

 

938

 

 

 

4,496

 

 

 

3,571

 

Severance and restructuring

 

 

378

 

 

 

881

 

 

 

573

 

 

 

7,329

 

Total operating expenses

 

 

29,871

 

 

 

30,300

 

 

 

117,797

 

 

 

134,296

 

% of total revenue

 

 

88.0

%

 

 

91.1

%

 

 

84.7

%

 

 

99.8

%

Operating income

 

 

4,082

 

 

 

2,955

 

 

 

21,228

 

 

 

238

 

% of total revenue

 

 

12.0

%

 

 

8.9

%

 

 

15.3

%

 

 

0.2

%

Interest income

 

 

233

 

 

 

226

 

 

 

1,099

 

 

 

592

 

Other income (expense)

 

 

43

 

 

 

57

 

 

 

(2

)

 

 

167

 

Income before income taxes

 

 

4,358

 

 

 

3,238

 

 

 

22,325

 

 

 

997

 

(Provision for) benefit from income taxes

 

 

(993

)

 

 

20,988

 

 

 

(6,659

)

 

 

20,859

 

Net income

(1)

$

3,365

 

 

$

24,226

 

 

$

15,666

 

 

$

21,856

 

Basic net income per common share

(1)

$

0.17

 

 

$

1.23

 

 

$

0.79

 

 

$

1.11

 

Diluted net income per common share

(1)

$

0.17

 

 

$

1.21

 

 

$

0.77

 

 

$

1.09

 

Basic weighted average common shares outstanding

 

 

19,987,640

 

 

 

19,703,802

 

 

 

19,953,747

 

 

 

19,672,423

 

Diluted weighted average common shares outstanding

 

 

20,367,248

 

 

 

20,009,234

 

 

 

20,343,912

 

 

 

19,991,202

 

Cash dividends declared per common share

 

 

0.3125

 

 

 

0.3125

 

 

 

1.2500

 

 

 

1.2500

 

 

(1) For the three months and year ended December 31, 2022 Net income, basic net income per common share, and diluted net income per common share includes a non-cash benefit of $21.9 million related to the release of a previously established valuation allowance in alignment with our projections of future taxable income.

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

12/31/2023

 

12/31/2022

 

 

 

 

 

ASSETS

 

(Unaudited)

 

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

31,989

 

 

$

35,754

 

Accounts receivable, net

 

 

23,314

 

 

 

26,861

 

Prepaid expenses

 

 

7,885

 

 

 

6,849

 

Other current assets

 

 

704

 

 

 

587

 

Total current assets

 

 

63,892

 

 

 

70,051

 

Non-current assets:

 

 

 

 

Property and equipment, net

 

 

7,321

 

 

 

8,223

 

Operating lease right-of-use assets

 

 

10,526

 

 

 

13,876

 

Goodwill

 

 

99,175

 

 

 

99,175

 

Deferred income tax assets, net

 

 

46,260

 

 

 

52,398

 

Other non-current assets

 

 

510

 

 

 

754

 

Total non-current assets

 

 

163,792

 

 

 

174,426

 

Total assets

 

$

227,684

 

 

$

244,477

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

5,969

 

 

$

5,880

 

Accrued compensation and benefits

 

 

7,284

 

 

 

11,628

 

Deferred revenue

 

 

26,298

 

 

 

27,255

 

Operating lease liabilities

 

 

4,184

 

 

 

5,096

 

Other current liabilities

 

 

4,273

 

 

 

4,573

 

Total current liabilities

 

 

48,008

 

 

 

54,432

 

Non-current liabilities:

 

 

 

 

Asset retirement obligations

 

 

7,191

 

 

 

7,237

 

Operating lease liabilities

 

 

6,902

 

 

 

10,604

 

Other non-current liabilities

 

 

1,812

 

 

 

1,107

 

Total non-current liabilities

 

 

15,905

 

 

 

18,948

 

Total liabilities

 

 

63,913

 

 

 

73,380

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

$

 

 

$

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

102,936

 

 

 

99,908

 

Accumulated other comprehensive loss

 

 

(1,764

)

 

 

(1,909

)

Retained earnings

 

 

62,597

 

 

 

73,096

 

Total stockholders' equity

 

 

163,771

 

 

 

171,097

 

Total liabilities and stockholders' equity

 

$

227,684

 

 

$

244,477

 

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

 

 

 

 

 

 

 

For the year ended

 

 

12/31/2023

 

12/31/2022

Operating activities:

 

 

 

 

Net income

 

$

15,666

 

 

$

21,856

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation, amortization and accretion

 

 

4,496

 

 

 

3,571

 

Valuation allowance

 

 

 

 

 

(21,850

)

Deferred income tax expense

 

 

6,378

 

 

 

903

 

Stock-based compensation

 

 

4,063

 

 

 

3,827

 

Provisions for credit losses, service credits and other

 

 

950

 

 

 

1,777

 

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

2,580

 

 

 

(1,757

)

Prepaid expenses and other assets

 

 

(909

)

 

 

(88

)

Net operating lease liabilities

 

 

(1,264

)

 

 

357

 

Accounts payable, accrued liabilities and other

 

 

(5,217

)

 

 

(2,258

)

Deferred revenue

 

 

(559

)

 

 

118

 

Net cash provided by operating activities

 

 

26,184

 

 

 

6,456

 

Investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(3,417

)

 

 

(3,776

)

Purchase of short-term investments

 

 

 

 

 

(14,967

)

Maturity of short-term investments

 

 

 

 

 

30,000

 

Net cash (used in) provided by investing activities

 

 

(3,417

)

 

 

11,257

 

Financing activities:

 

 

 

 

Cash distributions to stockholders

 

 

(25,642

)

 

 

(25,011

)

Proceeds from issuance of common stock under the Employee Stock Purchase Plan

 

 

210

 

 

 

 

Purchase of common stock for tax withholding on vested equity awards

 

 

(1,245

)

 

 

(1,210

)

Net cash used in financing activities

 

 

(26,677

)

 

 

(26,221

)

Effect of exchange rate on cash and cash equivalents

 

 

145

 

 

 

(321

)

Net decrease in cash and cash equivalents

 

 

(3,765

)

 

 

(8,829

)

Cash and cash equivalents, beginning of period

 

 

35,754

 

 

 

44,583

 

Cash and cash equivalents, end of period

 

$

31,989

 

 

$

35,754

 

Supplemental disclosure:

 

 

 

 

Income taxes paid

 

$

179

 

 

$

223

 

SPOK HOLDINGS, INC.

UNITS IN SERVICE, MARKET SEGMENTS,

AND AVERAGE REVENUE PER UNIT (ARPU)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

12/31/2023

 

9/30/2023

 

6/30/2023

 

3/31/2023

 

12/31/2022

 

9/30/2022

 

6/30/2022

 

3/31/2022

Account size ending units in service (000's)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

 

44

 

 

 

46

 

 

 

48

 

 

 

48

 

 

 

50

 

 

 

51

 

 

 

53

 

 

 

54

 

101 to 1,000 units

 

 

142

 

 

 

143

 

 

 

144

 

 

 

149

 

 

 

147

 

 

 

147

 

 

 

149

 

 

 

150

 

>1,000 units

 

 

579

 

 

 

596

 

 

 

614

 

 

 

614

 

 

 

620

 

 

 

626

 

 

 

633

 

 

 

634

 

Total

 

 

765

 

 

 

785

 

 

 

806

 

 

 

811

 

 

 

817

 

 

 

824

 

 

 

835

 

 

 

838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market segment as a percent of total ending units in service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare

 

 

85.9

%

 

 

86.0

%

 

 

86.1

%

 

 

85.7

%

 

 

85.4

%

 

 

85.0

%

 

 

85.0

%

 

 

84.7

%

Government

 

 

4.2

%

 

 

4.2

%

 

 

4.2

%

 

 

4.3

%

 

 

4.4

%

 

 

4.1

%

 

 

4.2

%

 

 

4.7

%

Large enterprise

 

 

4.1

%

 

 

4.1

%

 

 

4.0

%

 

 

4.1

%

 

 

4.0

%

 

 

3.9

%

 

 

4.0

%

 

 

3.9

%

Other(1)

 

 

5.8

%

 

 

5.7

%

 

 

5.7

%

 

 

5.9

%

 

 

6.2

%

 

 

7.0

%

 

 

6.8

%

 

 

6.7

%

Total

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account size ARPU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

$

12.57

 

 

$

12.02

 

 

$

11.91

 

 

$

12.03

 

 

$

11.95

 

 

$

11.80

 

 

$

11.41

 

 

$

11.52

 

101 to 1,000 units

 

 

9.16

 

 

 

8.75

 

 

 

8.56

 

 

 

8.75

 

 

 

8.66

 

 

 

8.44

 

 

 

8.27

 

 

 

8.24

 

>1,000 units

 

 

7.15

 

 

 

6.97

 

 

 

6.94

 

 

 

6.95

 

 

 

6.86

 

 

 

6.69

 

 

 

6.63

 

 

 

6.64

 

Total

 

$

7.84

 

 

$

7.59

 

 

$

7.53

 

 

$

7.59

 

 

$

7.50

 

 

$

7.40

 

 

$

7.23

 

 

$

7.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Other includes hospitality, resort and indirect units

RECONCILIATION OF ADJUSTED OPERATING EXPENSES

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

 

12/31/2023

 

12/31/2022

 

12/31/2023

 

12/31/2022

Operating expenses

 

$

29,871

 

 

$

30,300

 

 

$

117,797

 

 

$

134,296

 

Add back:

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion

 

 

(728

)

 

 

(938

)

 

 

(4,496

)

 

 

(3,571

)

Severance and restructuring

 

 

(378

)

 

 

(881

)

 

 

(573

)

 

 

(7,329

)

Adjusted operating expenses

 

$

28,765

 

 

$

28,481

 

 

$

112,728

 

 

$

123,396

 

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

 

12/31/2023

 

12/31/2022

 

12/31/2023

 

12/31/2022

Net income

(1)

$

3,365

 

 

$

24,226

 

 

$

15,666

 

 

$

21,856

 

Add back:

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

 

993

 

 

 

(20,988

)

 

 

6,659

 

 

 

(20,859

)

(Other income) expense

 

 

(43

)

 

 

(57

)

 

 

2

 

 

 

(167

)

Interest income

 

 

(233

)

 

 

(226

)

 

 

(1,099

)

 

 

(592

)

Depreciation and accretion

 

 

728

 

 

 

938

 

 

 

4,496

 

 

 

3,571

 

EBITDA

 

$

4,810

 

 

$

3,893

 

 

$

25,724

 

 

$

3,809

 

Adjustments:

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

1,321

 

 

 

873

 

 

 

4,045

 

 

 

3,827

 

Severance and restructuring

 

 

378

 

 

 

881

 

 

 

573

 

 

 

7,329

 

Adjusted EBITDA

 

$

6,509

 

 

$

5,647

 

 

$

30,342

 

 

$

14,965

 

 

(1) For the three months and year ended December 31, 2022 Net income includes a non-cash benefit of $21.9 million related to the release of a previously established valuation allowance in alignment with our projections of future taxable income.

 

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