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Spok Reports Fourth Quarter and Full Year 2022 Results

Continued improvement in net income and adjusted EBITDA

Company provides financial guidance for the full year 2023

Board Declares Regular Quarterly Dividend

Spok Holdings, Inc. (NASDAQ: SPOK), a global leader in healthcare communications, today announced results for the fourth quarter and full year ended December 31, 2022. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.3125 per share, payable on March 30, 2023, to stockholders of record on March 16, 2023.

Recent Highlights:

  • Strategic business plan continued to progress in the fourth quarter as the Company generated net income of $24.2 million, or $1.21 per diluted share, compared to a net loss of $16.7 million, or $0.86 per diluted share in the prior year period
  • The fourth quarter 2022 benefit from income taxes increased due to a $21.9 million non-cash gain related to the release of the previously established valuation allowance for net operating losses and research and development tax credits
  • For the full year 2022, the Company generated $24.5 million of adjusted EBITDA, excluding one-time costs related to the strategic business plan(1)
  • With the renewed focus on Spok Care Connect® clients, full year 2022 software operations bookings totaled $24.7 million, a 16.6% year-over-year increase
  • Fourth quarter 2022 software operations bookings included 17 six figure new customer contracts, bringing the full year total to 66 new contracts worth over six figures
  • Fourth quarter 2022 wireless average revenue per unit was $7.50, up 3.3% year-over-year, with units in service down only 3.5% for the full year 2022
  • Capital returned to stockholders in 2022 totaled $25.0 million in the form of the Company’s regular quarterly dividend
  • Cash, cash equivalents and short-term investments balance of $35.8 million on December 31, 2022, and no debt
  • In October, Spok released the results of its 12th annual survey on communications in healthcare, with more than 200 participants from around the U.S. responding to questions regarding the state of communication at their respective organizations.

"I am proud of what the Spok team has been able to accomplish in 2022 and believe that we have established a solid foundation for the future as we continue to execute our focus on generating cash flow and returning capital to stockholders,” said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. “Last year, we made progress in several key performance areas, including wireless trends, software bookings and backlog levels, as well as expense management, as we aligned our cost structure with our business plan. In 2023 we will continue to invest in a targeted and limited manner in our Spok Care Connect solutions and leverage the traction that our sales team generated through the 66 six figure new customer contracts booked last year and the growth in our sales pipeline. Spok will also take advantage of new wireless technologies, such as our GenA™ pager, to further minimize unit churn and support average revenue per unit. Going forward, we believe our extensive experience operating our established communication solutions will create significant value for stockholders by maximizing revenue and cash flow generation.”

1) Annual adjusted EBITDA, excluding one-time costs related to the strategic business plan, of $24.5 million is equal to Adjusted EBITDA excluding $7.5 million of payroll and related, and $2.0 million of non-payroll Spok Go and other outside services costs.

Financial Highlights:

 

For the three months ended December 31,

 

For the year ended December 31,

(Dollars in thousands)

2022

 

2021

 

Change (%)

 

2022

 

2021

 

Change (%)

Revenue

 

 

 

 

 

 

 

 

 

 

 

Wireless revenue

 

 

 

 

 

 

 

 

 

 

 

Paging revenue

$

18,450

 

$

18,513

 

(0.3

)%

 

$

73,323

 

$

75,845

 

(3.3

)%

Product and other revenue

 

571

 

 

 

690

 

 

(17.2

)%

 

 

2,299

 

 

 

2,981

 

 

(22.9

)%

Total wireless revenue

$

19,021

 

 

$

19,203

 

 

(0.9

)%

 

$

75,622

 

 

$

78,826

 

 

(4.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

Software revenue

 

 

 

 

 

 

 

 

 

 

 

License

$

1,269

 

 

$

1,650

 

 

(23.1

)%

 

$

7,202

 

 

$

5,917

 

 

21.7

%

Professional services

 

3,063

 

 

 

3,783

 

 

(19.0

)%

 

 

12,565

 

 

 

17,161

 

 

(26.8

)%

Hardware

 

585

 

 

 

573

 

 

2.1

%

 

 

2,211

 

 

 

2,267

 

 

(2.5

)%

Maintenance

 

9,317

 

 

 

9,335

 

 

(0.2

)%

 

 

36,934

 

 

 

37,982

 

 

(2.8

)%

Total software revenue

 

14,234

 

 

 

15,341

 

 

(7.2

)%

 

 

58,912

 

 

 

63,327

 

 

(7.0

)%

Total revenue

$

33,255

 

 

$

34,544

 

 

(3.7

)%

 

$

134,534

 

 

$

142,153

 

 

(5.4

)%

 

For the three months ended December 31,

 

For the year ended December 31,

(Dollars in thousands)

2022

 

2021

 

Change (%)

 

2022

 

2021

 

Change (%)

GAAP

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

$

30,300

 

$

55,355

 

 

(45.3

)%

 

$

134,296

 

$

169,871

 

 

(20.9

)%

Net income (loss)

$

24,226

 

 

$

(16,669

)

 

245.3

%

 

$

21,856

 

 

$

(22,180

)

 

198.5

%

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

$

35,754

 

 

$

59,582

 

 

(40.0

)%

 

$

35,754

 

 

$

59,582

 

 

(40.0

)%

Capital returned to stockholders

$

6,162

 

 

$

2,435

 

 

153.1

%

 

$

25,011

 

 

$

10,025

 

 

149.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating expenses

$

28,481

 

 

$

39,535

 

 

(28.0

)%

 

$

123,396

 

 

$

154,284

 

 

(20.0

)%

Adjusted EBITDA

$

5,647

 

 

$

(3,788

)

 

249.1

%

 

$

14,965

 

 

$

(4,892

)

 

405.9

%

 

For the three months ended December 31,

 

For the year ended December 31,

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

2022

 

2021

 

Change (%)

 

2022

 

2021

 

Change (%)

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

Wireless units in service

 

817

 

 

847

 

(3.5

)%

 

 

817

 

 

847

 

(3.5

)%

Wireless average revenue per unit (ARPU)

$

7.50

 

 

$

7.26

 

 

3.3

%

 

$

7.34

 

 

$

7.30

 

 

0.5

%

Software operations bookings(2)

$

5,863

 

 

$

7,329

 

 

(20.0

)%

 

$

24,692

 

 

$

21,184

 

 

16.6

%

Software maintenance bookings(3)

$

9,547

 

 

$

7,058

 

 

35.3

%

 

$

37,315

 

 

$

35,902

 

 

3.9

%

Software backlog (as of period end)

$

43,966

 

 

$

43,361

 

 

1.4

%

 

$

43,966

 

 

$

43,361

 

 

1.4

%

2) 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, excluding sales of Spok Go and related services which were discontinued in early 2022.

3) Software maintenance bookings includes the renewal of maintenance and term license contracts.

Financial Outlook:

Regarding financial guidance, the Company expects the following for the full year 2023:

(Unaudited and in millions)

 

Current Guidance

Full Year 2023

 

 

From

 

To

Revenue

 

 

 

 

Wireless

 

$

71.5

 

$

74.5

Software

 

$

57.5

 

 

$

62.0

 

Total Revenue

 

$

129.0

 

 

$

136.5

 

 

 

 

 

 

Adjusted EBITDA

 

$

24.0

 

 

$

26.0

 

2022 Fourth Quarter Call:

Management will host a conference call and webcast to discuss these financial results on Thursday, February 23, 2023, at 8:30 a.m. Eastern Standard Time. The presentation is open to all interested parties and may include forward-looking information.

Conference Call Details

Date/Time:

Thursday, February 23, 2023, at 8:30 a.m. EST

Webcast:

https://www.webcast-eqs.com/spok_02232023_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 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, adjusted EBITDA and adjusted EBITDA, excluding one-time costs related to the strategic business plan. Adjusted operating expenses excludes depreciation, amortization and accretion, impairment of intangible assets, severance and restructuring costs, and effects of capitalized software development 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, severance and restructuring, and effects of capitalized software development costs. With respect to our expectations under "Financial Guidance" above, reconciliation of adjusted EBITDA to net income (loss) 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 (loss) 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. Adjusted EBITDA excluding one-time costs related to the strategic business plan is a temporary Non-GAAP measure used by management to reflect our financial performance excluding material costs that are included within our financial statements due to the adoption of our new strategic business plan in early 2022. 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; our ability to identify potential acquisitions, consummate and successfully integrate such acquisitions, and achieve the expected benefits of such acquisitions; risks related to the COVID-19 pandemic; economic conditions such as recessionary economic cycles, higher interest rates, inflation and higher levels of unemployment; 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; unauthorized breaches or failures in cybersecurity measures adopted by us and/or included in our products and services; our ability to realize the benefits associated with our deferred income tax assets; future impairments of our long-lived assets, amortizable intangible 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.

Tables to Follow

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

 

 

12/31/2022

 

12/31/2021

 

12/31/2022

 

12/31/2021

Revenue:

 

 

 

 

 

 

 

 

Wireless

 

$

19,021

 

 

$

19,203

 

 

$

75,622

 

 

$

78,826

 

Software

 

 

14,234

 

 

 

15,341

 

 

 

58,912

 

 

 

63,327

 

Total revenue

 

 

33,255

 

 

 

34,544

 

 

 

134,534

 

 

 

142,153

 

Operating expenses:

 

 

 

 

 

 

 

 

Cost of revenue (exclusive of items shown separately below)

 

 

6,859

 

 

 

8,290

 

 

 

28,267

 

 

 

32,470

 

Research and development

 

 

2,281

 

 

 

4,851

 

 

 

13,625

 

 

 

17,514

 

Technology operations

 

 

6,800

 

 

 

7,331

 

 

 

27,412

 

 

 

28,844

 

Selling and marketing

 

 

3,667

 

 

 

5,356

 

 

 

16,296

 

 

 

21,083

 

General and administrative

 

 

8,874

 

 

 

11,104

 

 

 

37,796

 

 

 

43,531

 

Depreciation, amortization and accretion

 

 

938

 

 

 

2,694

 

 

 

3,571

 

 

 

10,446

 

Severance and restructuring

 

 

881

 

 

 

66

 

 

 

7,329

 

 

 

320

 

Goodwill and capitalized software development impairment

 

 

 

 

 

15,663

 

 

 

 

 

 

15,663

 

Total operating expenses

 

 

30,300

 

 

 

55,355

 

 

 

134,296

 

 

 

169,871

 

% of total revenue

 

 

91.1

%

 

 

160.2

%

 

 

99.8

%

 

 

119.5

%

Operating income (loss)

 

 

2,955

 

 

 

(20,811

)

 

 

238

 

 

 

(27,718

)

% of total revenue

 

 

8.9

%

 

 

(60.2

)%

 

 

0.2

%

 

 

(19.5

)%

Interest income

 

 

226

 

 

 

56

 

 

 

592

 

 

 

320

 

Other income

 

 

57

 

 

 

54

 

 

 

167

 

 

 

66

 

Income (loss) before income taxes

 

 

3,238

 

 

 

(20,701

)

 

 

997

 

 

 

(27,332

)

Benefit from income taxes

 

 

20,988

 

 

 

4,032

 

 

 

20,859

 

 

 

5,152

 

Net income (loss)

 

$

24,226

 

 

$

(16,669

)

 

$

21,856

 

 

$

(22,180

)

Basic net income (loss) per common share

 

$

1.23

 

 

$

(0.86

)

 

$

1.11

 

 

$

(1.14

)

Diluted net income (loss) per common share

 

 

1.21

 

 

 

(0.86

)

 

 

1.09

 

 

 

(1.14

)

Basic weighted average common shares outstanding

 

 

19,703,802

 

 

 

19,483,004

 

 

 

19,672,423

 

 

 

19,404,477

 

Diluted weighted average common shares outstanding

 

 

20,009,234

 

 

 

19,483,004

 

 

 

19,991,202

 

 

 

19,404,477

 

Cash dividends declared per common share

 

 

0.3125

 

 

 

0.1250

 

 

 

1.2500

 

 

 

0.5000

 

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

 

 

12/31/2022

 

12/31/2021

 

 

 

 

 

ASSETS

 

(Unaudited)

 

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

35,754

 

 

$

44,583

 

Short-term investments

 

 

 

 

 

14,999

 

Accounts receivable, net

 

 

26,861

 

 

 

26,908

 

Prepaid expenses

 

 

6,849

 

 

 

6,641

 

Other current assets

 

 

587

 

 

 

922

 

Total current assets

 

 

70,051

 

 

 

94,053

 

Non-current assets:

 

 

 

 

Property and equipment, net

 

 

8,223

 

 

 

6,746

 

Operating lease right-of-use assets

 

 

13,876

 

 

 

15,821

 

Goodwill

 

 

99,175

 

 

 

99,175

 

Deferred income tax assets, net

 

 

52,398

 

 

 

31,653

 

Other non-current assets

 

 

754

 

 

 

706

 

Total non-current assets

 

 

174,426

 

 

 

154,101

 

Total assets

 

$

244,477

 

 

$

248,154

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

5,880

 

 

$

5,292

 

Accrued compensation and benefits

 

 

11,628

 

 

 

13,948

 

Deferred revenue

 

 

26,274

 

 

 

25,608

 

Operating lease liabilities

 

 

5,096

 

 

 

5,405

 

Other current liabilities

 

 

4,573

 

 

 

4,745

 

Total current liabilities

 

 

53,451

 

 

 

54,998

 

Non-current liabilities:

 

 

 

 

Asset retirement obligations

 

 

7,237

 

 

 

6,355

 

Operating lease liabilities

 

 

10,604

 

 

 

11,883

 

Other non-current liabilities

 

 

1,107

 

 

 

1,227

 

Total non-current liabilities

 

 

18,948

 

 

 

19,465

 

Total liabilities

 

 

72,399

 

 

 

74,463

 

Commitments and contingencies

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

99,908

 

 

 

97,291

 

Accumulated other comprehensive loss

 

 

(1,909

)

 

 

(1,588

)

Retained earnings

 

 

74,077

 

 

 

77,986

 

Total stockholders' equity

 

 

172,078

 

 

 

173,691

 

Total liabilities and stockholders' equity

 

$

244,477

 

 

$

248,154

 

SPOK HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited and in thousands)

 

 

 

 

 

For the year ended

 

12/31/2022

 

12/31/2021

Operating activities:

 

 

 

Net income (loss)

$

21,856

 

 

$

(22,180

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Depreciation, amortization and accretion

 

3,571

 

 

 

10,446

 

Goodwill and capitalized software development impairment

 

 

 

 

15,663

 

Valuation allowance

 

(21,850

)

 

 

 

Deferred income tax expense (benefit)

 

903

 

 

 

(5,483

)

Stock-based compensation

 

3,827

 

 

 

7,239

 

Provisions for credit losses, service credits and other

 

1,777

 

 

 

1,162

 

Changes in assets and liabilities:

 

 

 

Accounts receivable

 

(1,757

)

 

 

1,833

 

Prepaid expenses and other assets

 

(88

)

 

 

2,594

 

Net operating lease liabilities

 

357

 

 

 

763

 

Accounts payable, accrued liabilities and other

 

(2,258

)

 

 

(679

)

Deferred revenue

 

118

 

 

 

(3,390

)

Net cash provided by operating activities

 

6,456

 

 

 

7,968

 

Investing activities:

 

 

 

Purchases of property and equipment

 

(3,776

)

 

 

(4,393

)

Capitalized software development

 

 

 

 

(10,842

)

Purchase of short-term investments

 

(14,967

)

 

 

(44,990

)

Maturity of short-term investments

 

30,000

 

 

 

60,000

 

Net cash provided by (used in) investing activities

 

11,257

 

 

 

(225

)

Financing activities:

 

 

 

Cash distributions to stockholders

 

(25,011

)

 

 

(10,025

)

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

 

 

 

 

132

 

Purchase of common stock for tax withholding on vested equity awards

 

(1,210

)

 

 

(1,860

)

Net cash used in financing activities

 

(26,221

)

 

 

(11,753

)

Effect of exchange rate on cash and cash equivalents

 

(321

)

 

 

(136

)

Net decrease in cash and cash equivalents

 

(8,829

)

 

 

(4,146

)

Cash and cash equivalents, beginning of period

 

44,583

 

 

 

48,729

 

Cash and cash equivalents, end of period

$

35,754

 

 

$

44,583

 

Supplemental disclosure:

 

 

 

Income taxes paid/(refunded)

$

223

 

 

$

(126

)

SPOK HOLDINGS, INC.

UNITS IN SERVICE, MARKET SEGMENTS,

AND AVERAGE REVENUE PER UNIT (ARPU) (a)

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

12/31/2022

 

9/30/2022

 

6/30/2022

 

3/31/2022

 

12/31/2021

 

9/30/2021

 

6/30/2021

 

3/31/2021

Account size ending units in service (000's)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

 

50

 

 

 

51

 

 

 

53

 

 

 

54

 

 

 

55

 

 

 

57

 

 

 

58

 

 

 

59

 

101 to 1,000 units

 

 

147

 

 

 

147

 

 

 

149

 

 

 

150

 

 

 

154

 

 

 

154

 

 

 

155

 

 

 

163

 

>1,000 units

 

 

620

 

 

 

626

 

 

 

633

 

 

 

634

 

 

 

638

 

 

 

642

 

 

 

656

 

 

 

652

 

Total

 

 

817

 

 

 

824

 

 

 

835

 

 

 

838

 

 

 

847

 

 

 

853

 

 

 

869

 

 

 

874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market segment as a percent of total ending units in service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare

 

 

85.4

%

 

 

85.0

%

 

 

85.0

%

 

 

84.7

%

 

 

84.7

%

 

 

84.6

%

 

 

84.5

%

 

 

84.1

%

Government

 

 

4.4

%

 

 

4.1

%

 

 

4.2

%

 

 

4.7

%

 

 

4.8

%

 

 

4.8

%

 

 

4.9

%

 

 

4.8

%

Large enterprise

 

 

4.0

%

 

 

3.9

%

 

 

4.0

%

 

 

3.9

%

 

 

3.9

%

 

 

4.1

%

 

 

4.1

%

 

 

4.3

%

Other(b)

 

 

6.1

%

 

 

7.0

%

 

 

6.8

%

 

 

6.7

%

 

 

6.6

%

 

 

6.4

%

 

 

6.4

%

 

 

6.8

%

Total

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Account size ARPU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 to 100 units

 

$

11.95

 

 

$

11.80

 

 

$

11.41

 

 

$

11.52

 

 

$

11.58

 

 

$

11.67

 

 

$

11.69

 

 

$

11.72

 

101 to 1,000 units

 

 

8.66

 

 

 

8.44

 

 

 

8.27

 

 

 

8.24

 

 

 

8.30

 

 

 

8.38

 

 

 

8.35

 

 

 

8.33

 

>1,000 units

 

 

6.86

 

 

 

6.69

 

 

 

6.63

 

 

 

6.64

 

 

 

6.63

 

 

 

6.65

 

 

 

6.68

 

 

 

6.68

 

Total

 

$

7.50

 

 

$

7.40

 

 

$

7.23

 

 

$

7.24

 

 

$

7.26

 

 

$

7.29

 

 

$

7.32

 

 

$

7.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Slight variations in totals are due to rounding.

(b) 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

 

 

12/31/2022

 

12/31/2021

 

12/31/2022

 

12/31/2021

Operating expenses

 

$

30,300

 

 

$

55,355

 

 

$

134,296

 

 

$

169,871

 

Add back:

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion

 

 

(938

)

 

 

(2,694

)

 

 

(3,571

)

 

 

(10,446

)

Goodwill and capitalized software development impairment

 

 

 

 

 

(15,663

)

 

 

 

 

 

(15,663

)

Capitalized software development costs

 

 

 

 

 

2,603

 

 

 

 

 

 

10,842

 

Severance and restructuring

 

 

(881

)

 

 

(66

)

 

 

(7,329

)

 

 

(320

)

Adjusted operating expenses

 

$

28,481

 

 

$

39,535

 

 

$

123,396

 

 

$

154,284

 

RECONCILIATION OF ADJUSTED EBITDA

(Unaudited and in thousands)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

 

12/31/2022

 

12/31/2021

 

12/31/2022

 

12/31/2021

Net income (loss)

 

$

24,226

 

 

$

(16,669

)

 

$

21,856

 

 

$

(22,180

)

Add back:

 

 

 

 

 

 

 

 

Benefit from income taxes

 

 

(20,988

)

 

 

(4,032

)

 

 

(20,859

)

 

 

(5,152

)

Other income

 

 

(57

)

 

 

(54

)

 

 

(167

)

 

 

(66

)

Interest income

 

 

(226

)

 

 

(56

)

 

 

(592

)

 

 

(320

)

Depreciation, amortization and accretion

 

 

938

 

 

 

2,694

 

 

 

3,571

 

 

 

10,446

 

EBITDA

 

$

3,893

 

 

$

(18,117

)

 

$

3,809

 

 

$

(17,272

)

Adjustments:

 

 

 

 

 

 

 

 

Goodwill and capitalized software development impairment

 

 

 

 

 

15,663

 

 

 

 

 

 

15,663

 

Capitalized software development costs

 

 

 

 

 

(2,603

)

 

 

 

 

 

(10,842

)

Stock-based compensation

 

 

873

 

 

 

1,203

 

 

 

3,827

 

 

 

7,239

 

Severance and restructuring

 

 

881

 

 

 

66

 

 

 

7,329

 

 

 

320

 

Adjusted EBITDA

 

$

5,647

 

 

$

(3,788

)

 

$

14,965

 

 

$

(4,892

)

 

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