Q1 2025 Spok Holdings Inc Earnings Call
Operator: Greetings and welcome to Spok's first quarter 2025 earnings At this time, all participants are in a listen-only mode. A question-and-answer session will follow formal... If anyone should require operator assistance, please press star zero and your... As a reminder, this conference is being recorded. Thank you for tuning in. My pleasure. Thank you. Al Galgano. Thank you.
Greetings and welcome to spokes to the first quarter of 2025 earnings results Conference call.
At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.
Speaker Change: It's now my pleasure to introduce your host Al Galgano. Thank you you may begin.
Al Galgano: Hello everyone and welcome to Spok Holdings first quarter 2025 earnings call. I am joined by Vince Kelly, Chief Executive Officer, Mike Wallace, Chief Operating Officer, and Calvin Rice, Chief Financial Officer. I want to remind everyone that today's conference call may include forward-looking statements that are subject to risks and uncertainties relating to Spok's future financial and business performance. Such statements may include estimates of revenues, expenses, and income, as well as other predictive statements or plans, which are dependent upon future events or conditions. These statements represent the company's estimates only on the date of this conference call and are not intended to give any assurance as to actual future results.
Speaker Change: Hello, everyone and welcome to spoke holdings first quarter 2025 earnings call I am joined by Vince Kelly, Chief Executive Officer, Mike Wallace, Chief operating Officer, and Calvin Rice, Chief Financial Officer.
Speaker Change: I want to remind everyone that todays conference call May include forward looking statements that are subject to risks and uncertainties relating to spokes future financial and business performance. Such statements May include estimates of revenue expenses and income as well as other predictive statements or plans, which.
Speaker Change: You are dependent upon future events or conditions. These statements represent the company's estimates only on the date of this conference call and are not intended to give any assurance as to actual future results.
Al Galgano: Spok's actual results could differ materially from those anticipated in these forward-looking statements. Although these statements are based upon assumptions that the company believes to be reasonable, they are subject to risks and uncertainty.
Speaker Change: Spokes actual results could differ materially from those anticipated in these forward looking statements. Although these statements are based upon assumptions that the company believes to be reasonable they are subject to risks and uncertainties. Please review the risk factors section relating to our operations and the business environment.
Al Galgano: Please review the risk factors section relating to our operations and the business environment which are contained in our first quarter 2025 Form 10-Q and related documents filed with the Securities and Exchange Commission. Please note that Spok assumes no obligation to update any forward-looking statements from past or present filings and conference calls.
Speaker Change: Which are contained in our first quarter 2025 Form 10-Q and related documents filed with the Securities and Exchange Commission. Please note that spoke assumes no obligation to update any forward looking statements from past or present filings and conference calls with that.
Vincent Kelly: With that, I'll turn the call over to Ben. Thank you, Al, and good afternoon, everyone, and thank you for joining us for our first quarter 2025 earnings call. I'm very proud of the strong performance our team was able to deliver in the first quarter, and I believe these results position us well for the remainder of the year. We've gotten off to a great start, outperforming our internal forecast, and we're maintaining that momentum.
Vince Kelly: Now I'll turn the call over to Vince.
Vince Kelly: Thank you al and good afternoon, everyone and thank you for joining us for our first quarter 2025 earnings call I'm very proud of the strong performance of our team was able to deliver in the first quarter and I believe these results position us well for the remainder of the year, we've gotten off to a great start outperforming our internal forecasts and we.
Vince Kelly: We're maintaining that momentum let.
Vincent Kelly: Let me also take this opportunity right up front to remind everyone that our mission remains solidly unchanged, that is, to generate cash and return capital to our shareholders over the long term while responsibly investing in and growing our business. As we've demonstrated with our performance over these last three years, we believe we are on a sustainable path to doing so. That is our job and our primary focus. Returning the capital to shareholders is our public company legacy, and we feel good about executing a strategy we believe in and that we have had a lot of historical success with.
Vince Kelly: Let me also take this opportunity right upfront to remind everyone that our mission remains solidly unchanged that is to generate cash and return capital to our shareholders over the long term, while responsibly investing in and growing our business as we've demonstrated with our performance over these last three years, we believe.
Vince Kelly: We are on a sustainable path to doing so that is our job and our primary focus.
Vince Kelly: Turning to capital to shareholders as our public company legacy and we feel good about executing this strategy. We believe in and that we have had a lot of historical success with.
Vincent Kelly: Today we will share with you an update on how our strategic business plan is progressing in support of this goal, as well as our financial results for the quarter. I'll start by reviewing the agenda for today's call. The order will be as follows. We will begin by providing a review of our company performance for the quarter.
Vince Kelly: Today, we will share with you an update on how our strategic business plan is progressing in support of this goal as well as our financial results for the quarter I'll start by reviewing the agenda for today's call. The order will be as follows.
Vince Kelly: We will begin by providing a review of our company performance for the quarter.
Michael Wallace: I'll then turn the call over to Mike Wallace, our COO, to review some of our quarterly sales highlights.
Vince Kelly: I'll, then turn the call over to Mike Walsh, our CFO to review some of our quarterly sales highlights.
Calvin Rice: Then our CFO, Calvin Rice, will review our first quarter financial highlights and financial guidance for 2025.
Speaker Change: Our CFO Calvin Rice will review, our first quarter financial highlights and financial guidance for 2025.
Vincent Kelly: I will then wrap the call up and open it up for your questions. As I said up front, we're proud of what Spok has been able to deliver and accomplish in the first quarter and believe our results provide a solid springboard for the year ahead. First quarter highlights include a 4% year-over-year growth in total revenues driven by a more than 9% increase in software revenue. strong year-over-year increases in net income and adjusted EBITDA levels of 22.7% and 8.9% respectively. A near 6% year-over-year increase in software operations bookings from already strong prior year levels. and 44% increase in year-over-year professional services revenue, driven by a three-fold increase in the managed services category.
Speaker Change: I will then wrap the call up and then open it up for your questions.
Speaker Change: As I said upfront we're proud of what spoke he has been able to deliver and accomplish in the first quarter and believe our results provide a solid springboard for the year ahead first quarter highlights include a 4% year over year growth in total revenues driven by our more than 9% increase in software revenues.
Speaker Change: Strong year over year increases in net income and adjusted EBITDA levels of 22, 7% and eight 9% respectively.
Speaker Change: Our near 6% year over year increase in software operations bookings from already strong prior year levels.
Speaker Change: A 44% increase in year over year professional services revenue driven by a threefold increase in the managed services category.
Vincent Kelly: A more than 15% increase in our software backlog. and improved wireless trends as net unit churn was primarily offset by continued expansion of our wireless average revenue per unit and sales of our higher revenue encrypted HIPAA compliant alphanumeric Gen A page. And we were able to accomplish all of this while continuing to invest in our products and infrastructure at levels consistent with 2024. In short, I believe Spok is doing an excellent job of balancing our goal of returning cash to our stockholders with those investments in order to fuel future growth. In the first quarter of 2025, we generated over $8.2 million of adjusted EBTA, which more than covered the $7.9 million we returned to our stockholders.
Speaker Change: I'm more than 15% increase in our software in backlog.
Speaker Change: And improved wireless trends as net unit churn was primarily offset by continued expansion of our wireless average revenue per unit and sales of our higher revenue encrypted HIPAA compliant alphanumeric journey pager.
Speaker Change: And we were able to accomplish all of this while continuing to invest in our products and infrastructure at levels consistent with 2024.
Speaker Change: I believe spoke is doing an excellent job of balancing our goal of returning cash to our stockholders with those investments in order to fuel future growth.
Speaker Change: In the first quarter 2025, we generated over $8 2 million of adjusted EBITDA, which more than covered the $7 9 million, we returned to our stockholders. However.
Vincent Kelly: However, at the same time, we maintained research and development investment at prior year levels. We're on track to invest between $11 and $12 million in product research and development expense in 2025. We believe this investment will fuel future software revenue growth and that our extensive experience selling and operating our established communication solutions will create significant value for stockholders by maximizing revenue and cash flow generation. As I mentioned, Spok has a proud legacy of creating stockholder value through free cash flow generation, and we intend to continue this track record. In fact, over the last 20 years, Spok has returned a total of more than $700 million to our stockholders, either through our regular quarterly dividend, special dividends, or share repurchase.
Speaker Change: However at the same time, we've maintained research and development investment and prior year levels were on track to invest between 11 and $12 million in product research and development expense in 2025.
Speaker Change: We believe this investment will fuel future software revenue growth and then our extensive experience selling and operating our established communications solutions will create significant value for stockholders by maximizing revenue and cash flow generation.
Speaker Change: As I mentioned spoke is a proud legacy of creating stockholder value to free cash flow generation and we intend to continue this track record in fact over the last 20 years smoke has returned a total of more than 700 million to our stockholders EBIT through our regular quarterly dividend special dividends or share repurchases.
Vincent Kelly: Our focus on maximizing cash over the long-term supports the four major tenets of our strategy. Those are, number one, continued investment in our wireless and software solutions. Number two, growing our revenue base. Number three, continued discipline to expense management. And number four, a stockholder-friendly capital allocation plan. Going forward, we believe our extensive experience selling and operating our established communication solutions and world-class customer base will create significant value for our stockholders.
Speaker Change: Our focus on maximizing cash over the long term sports the four major tenants of our strategy those are.
Speaker Change: Number one continued investment in our wireless and software solutions number two growing our revenue base number three continued disciplined expense management and number four a stockholder friendly capital allocation plan.
Speaker Change: Going forward, we believe our extensive experience selling and operating our established communication solutions and world class customer base will create significant value for our stockholders.
Vincent Kelly: Before I turn the call over to Mike, for all of you that are new to the story, let me take a moment to review what Spok evolved into since its inception about 25 years ago. As you know, Spok started as a wireless technology communications company, and until 2011, prior to the acquisition of Amcom Software, operated solely as a telecom company, with 100% of our revenues coming from that product offer. Spok has transformed into a global healthcare communications provider, offering both software and wireless products and solutions to customers. Given our recent focus on SpokCare Connect and our pivot about three years ago to a new strategic direction, we believe that we've transformed into one of the leading healthcare technology companies in the nation.
Speaker Change: Before I turn the call over to Mike for all of you that are new to the story, let me take a moment to review would spoke evolved into since its inception about 25 years ago.
Speaker Change: As you know spoke started as a wireless technology Communications company and until 2011 prior to the acquisition of <unk> software operating solely as a telecom company with 100% of our revenues coming from that product offering.
Speaker Change: Focused transform into a global health care communications provider offering both software and wireless products and solutions to customers.
Given our recent focus on spoke care connect and our pivot about three years ago to a new strategic direction. We believe that we are transferring into one of the leading health care technology companies in the nation.
Vincent Kelly: When you look at Spok today, We're a leader in healthcare communications with a solid reputation. We maintain the largest paging network in the United States. We have a blue chip customer base of more than 2200 hospitals who keep buying from us. We have created a large portfolio of intellectual property via strategic R&D investments. We have generated significant shareholder value through cash flow generation, returning capital to our investors, and we have a best-in-class product offering.
Speaker Change: When you look at spoke today.
Speaker Change: We're a leader in health care communications with the solid reputation.
Speaker Change: We maintain the largest paging network in the United States.
Speaker Change: We have a blue chip customer base of more than 2200 hospitals, who keep buying from US we have created a large portfolio of intellectual property by a strategic R&D investments, we have generated significant shareholder value through cash flow generation, returning capital to our investors and we have a best in class product off.
Speaker Change: Right.
Vincent Kelly: Spok is Bill. and industry-leading reputation over the years. Under the Spok banner, we are recognized as the top clinical communications platform in our industry for eight of the past 10 years by Black Book Research since we fully integrated our company. We are honored by the unwavering trust our healthcare clients have placed in Spok as their go-to partner for clinical communications. The achievement of securing the top position for eight consecutive years underscores our commitment to delivering critical communication technology and enhances hospital and health system communication, which ultimately enhances patient care and safety.
Speaker Change: Spoke is built.
Speaker Change: An industry leading reputation over the years under the spoke banner, we are recognized as the top clinical communications platform in our industry for eight of the past 10 years by Black book Research since we fully integrated our company.
Speaker Change: We are honored by the unwavering Trust, our health care clients in place and spoke as their go to partner for clinical communications the achievement of securing the top position for eight consecutive years underscores our commitment to delivering critical communication technology and enhance this hospital and health system communication, which ultimately enhances patient care and safety.
Vincent Kelly: And lastly, I want to briefly address the current uncertainty in the macro environment around tariffs and its impact on the healthcare industry, and Spok in particular. Based on the current landscape, we believe that neither our revenue nor our supply chain will be materially impacted. Additionally, Spok's products and solutions are viewed as an essential utility within the walls of our hospital customers.
Speaker Change: And lastly, I want to briefly address the current uncertainty in the macro environment around tariffs and its impact on the health care industry and spoke in particular.
Speaker Change: Based on the current landscape, we believe that neither our revenue.
Calvin Rice: Our supply chain will be materially impacted Additionally, spokes products and solutions are viewed as an essential utility within the walls of our hospital customers for these reasons and coupled with our first quarter performance, we feel comfortable reiterating our guidance for the full year of 2025, the Calvin will review in detail later in the call.
Michael Wallace: For these reasons, and coupled with our first quarter performance, we feel comfortable reiterating our guidance for the full year of 2025 that Calvin will review in detail later in the With that, I'll turn the call over to Mike Wallace. Thanks, Vince. And thank you, everyone, for joining us this afternoon. As Vince pointed out, it was a very strong quarter, and we made tremendous progress in a number of key performance areas. Yet amidst all of the progress and continuing to create a solid financial platform, and shareholder friendly capital allocation strategy, we remain true to our mission of being a global leader in healthcare communication.
Calvin Rice: With that I'll turn the call over to Mike Walsh Mike.
Mike Walsh: Thanks, Vince and thank you everyone for joining us this afternoon as Vince pointed out it was a very strong quarter and we made tremendous progress in a number of key performance areas yes.
Mike Walsh: Amidst all of the progress and continuing to create a solid financial platform and shareholder friendly capital allocation strategy, we remain true to our mission of being a global leader in health care Communications.
Michael Wallace: We deliver clinical information to care teams when and where it matters most to improve patient outcomes as Spok enables smarter, faster clinical communications for our customers. And Spok continues to build upon its strong industry reputation.
Mike Walsh: We deliver clinical information to care teams, when and where it matters most to improve patient outcomes as folk enables smarter faster clinical communications for our customers.
Mike Walsh: And spoke continues to build upon its strong industry reputation.
Michael Wallace: In late March, we announced that for the eighth consecutive year, we earned top honors in Black Book's 2025 survey of health care industry clients. We are particularly proud this year as top honors came in two categories of the survey. This incredible milestone demonstrates our commitment to delivering robust and reliable technology that removes barriers to exceptional patient experiences and care. Spok received the highest honors for customer satisfaction in 12 of the 18 key performance indicators that Black Book Research measures for secure messaging and clinical communication solutions. For the new category of enterprise messaging and critical alert management solutions, Spok received the top-rated spot for individual key performance metrics such as alert accuracy and relevance, usability and adoption rate by clinicians and staff, customer support and vendor responsiveness, and impact on patient safety and clinical outcomes.
Mike Walsh: In late March we announced that for the eighth consecutive year. We earned top honors in Black book in 2025 survey and healthcare industry clients.
Mike Walsh: We are particularly proud this year as top honors came in two categories that the survey.
Mike Walsh: This incredible milestone demonstrates our commitment to delivering robust and reliable technology that removes barriers to exceptional patient experiences and care.
Mike Walsh: Spoke received the highest honors for customer satisfaction in 12 of the 18 key performance indicators. The Black book research measures for secure messaging and clinical communications solutions.
Mike Walsh: So the new category of enterprise messaging and critical alert management solutions spoke received the top rated sponsor individual key performance metrics, such as alert accuracy and relevance.
Mike Walsh: Usability and adoption rate by clinicians SaaS customer support and vendor responsiveness and impact on patient safety and clinical outcomes.
Michael Wallace: Now, turning to our software operations bookings performance in the first quarter, we generated 8.2 million of bookings that included 22 six-figure customer contracts, sustaining the momentum that we saw last year. This performance included two new logo agreements, and those six-figure contracts had an average contract size that continues to grow from prior year levels. We are extremely pleased with the start to 2025.
Mike Walsh: Now turning to our software operations bookings performance in the first quarter, we generated $8 $2 million of bookings that included 22, six figure customer contracts sustaining the momentum that we saw last year. This performance included two new logo agreements and those six figure contracts had an average contract size that continues to.
Mike Walsh: Growth from prior year levels, we are extremely pleased with the start to 2020.
Michael Wallace: Now, let me take a few minutes to highlight a few of the customer engagements that we signed in the last quarter. The first contract was with a large Midwest health system that provides care and life-saving services to more than 100,000 patients annually. Each year, the organization also manages over 450,000 operator calls and processes over 4 million messages through its Spok system. Last quarter, we secured a three year managed services commitment that will extend our partnership with this health system and will continue to drive value and critical communication services that are core to their mission and growth in the Midwest.
Mike Walsh: Now, let me take a few minutes or a few minutes to highlight a few of the customer engagements that we signed in the last quarter.
Mike Walsh: The first contract was with a large Midwest health system that provides care and life saving services to more than 100000 patients annually.
Mike Walsh: Each year. The organization also manages over 450000, operator calls and processes over 4 million messages through its folk system.
Mike Walsh: Last quarter, we secured a three year managed services commitment that will extend our partnership with this health system and we will continue to drive value in critical communication services that are core to their mission and growth in the Midwest.
Michael Wallace: This multi-year engagement includes Spok SmartSuite, console and web upgrades, our new Spok Care Connect reporting and dashboards, Spok Mobile, and Spok Messenger. Coupled with our value added services, including solution assessment and data integrity, our platform is being extended to deliver priority alerts to clinicians using Epic Chat. This organization will continue to build out its Spok and Epic Coexistence Strategy to manage system-wide communication workflows.
Mike Walsh: This multi year engagement includes spoke smart suite console and web upgrades or new spoke care connect reporting and dashboards stop mobile and spoke messenger upgrades.
Mike Walsh: Coupled with our value added services, including solution assessment and data integrity, our platform is being extended to deliver priority alerts to clinicians using epic chat.
Mike Walsh: This organization will continue to build out its both an epic coexistence strategy to manage system wide communication workflows.
Michael Wallace: The second outstanding contract in the last quarter was with a faith-based non-profit healthcare network that has partnered with Spok for more than 23 years. This health system has 11 hospitals and over 28,000 employees, 4,500 physicians and 100 physician practices and outpatient facilities. As part of the agreement, Spok will provide metacall and web directory upgrades to the core system, as well as Spok's value-added services such as data integrity and solution assessment, which will help our partner derive maximum value from their Spok solution. Additionally, two new sites will join the enterprise and leverage the Spok platform.
Mike Walsh: The second outstanding contracts in the last quarter was with a faith based nonprofit health care network that is part of the spoke for more than 23 years.
Mike Walsh: This health system has 11 hospitals and over 28000 employees 4500 positions and 100 physician practices outpatient facilities.
Mike Walsh: As part of the agreement spoke will provide medical and web directory upgrades to the core system as well as folks value added services, such as data integrity and solution assessment, which will help our partner derive maximum value from their spokes solutions.
Mike Walsh: Additionally, two new sites will join the enterprise and leverage the <unk> platform.
Michael Wallace: Lastly, Spok is excited to continue our partnership with a valued customer of almost 30 years located in the southeast. This health system is dedicated to innovating medicine, teaching the caregivers of the future, and supporting the healthcare needs of their patients. This customer signed a three-year agreement to upgrade their existing Spok SmartSuite console, Spok eNotify, and Spok Mobile Solutions, and will add Spok Voice Connect, Spok Care Connect Enterprise Reporting, and Spok Messenger with dashboards for SMS. Also included in this engagement are several of Spok's value-added services to assist with closer collaboration with the clinical team.
Mike Walsh: Lastly spoke is excited to continue our partnership with a valued customer of almost 30 years located in the southeast.
Mike Walsh: This health system is dedicated to innovative medicine teaching the caregivers and the future and supporting the health care needs of their patients.
Mike Walsh: This customer signed a three year agreement to upgrade their existing spoke smart suite console spoke you notify and spoke mobile solutions and will add spoke boys connect spoke care connect enterprise reporting and spoke messenger with dashboards for SMS.
Also included in this engagement several spokes value added services to assist with closer collaboration with the clinical teams.
Michael Wallace: So, as you can see, Spok continues to consistently deliver effective communication solutions to hospitals and healthcare systems. Our first quarter success underscores our steadfast dedication to offering unparalleled communication solutions to our clients. We are confident that our software solutions will continue bringing positive change to healthcare institutions nationwide.
Mike Walsh: So as you can see spoke continues to consistently deliver effective communication solutions to hospitals and health care systems, our first quarter success underscores our steadfast dedication to offering unparalleled communication solutions to our clients.
Mike Walsh: We are confident that our software solutions will continue bringing positive change to healthcare institutions nationwide.
Calvin Rice: I will now turn the call over to Calvin Rice, our Chief Financial Officer, to briefly review the first quarter financial performance. Thanks, Mike, and good afternoon, everyone. I would now like to take a few minutes and provide a recap of our first quarter 2025 financial performance, which we reported today.
Speaker Change: I'll now turn the call over to Calvin Rice, our Chief Financial Officer to briefly review, our first quarter financial performance Calvin.
Mike Walsh: Yeah.
Calvin Rice: Thanks, Mike and good afternoon, everyone.
Calvin Rice: I would now like to take a few minutes and provide a recap of our first quarter 2025 financial performance, which we reported today.
Calvin Rice: I encourage you to review our 10-Q when filed, as it includes significantly more information about our business operations and financial performance than we will cover on this call. Turning to our income statement, in the first quarter of 2025, GAAP net income totaled $5.2 million, or $0.25 per diluted share, up from net income of $4.2 million, or $0.21 per diluted share in 2024. For the first quarter of 2025, total GAAP revenue was $36.3 million, up more than 7% from prior quarter revenue of $33.9 million, and up nearly 4% from revenue of $34.9 million in the first quarter of 2024.
Calvin Rice: I encourage you to review our 10-Q filed as it includes significantly more information about our business operation and financial performance than we will cover on this call.
Calvin Rice: Turning to our income statement in the first quarter of 2025, GAAP net income totaled $5 2 million or <unk> 25 per diluted share up from net income of $4 2 million or 21 per diluted share in 2024.
Calvin Rice: For the first quarter of 2025 total GAAP revenue was $36 3 million up more than 7% from prior quarter revenue of $33 9 million and up nearly 4% from revenue of $34 9 million in the first quarter of 2024.
Calvin Rice: Revenue for the quarter consisted of wireless revenue of $18.5 million, nearly flat to the first quarter of 2024, and software revenue of $17.8 million, up 9.2% from the prior year quarter. With respect to wireless revenue, we saw an 80 basis point decline in the trailing 12-month net unit churn to 6.4% in the first quarter of 2025, from 7.2% in the first quarter of 2024. Adding to the positive trend in net unit churn was a 4.4% year-over-year increase in the average revenue per unit, or ARPU, to $8.24. The increase in our boot was primarily driven by the success of our prior pricing actions and to a lesser extent continued sales of our new Gen 8 Patriot.
Calvin Rice: Revenue for the quarter consisted of wireless revenue of $18 5 million nearly flat for the first quarter of 2024 and software revenue of $17 8 million up nine 2% from the prior year quarter.
Calvin Rice: With respect to wireless revenue, we saw an 80 basis point decline in the trailing 12 month net unit churn to six 4% in the first quarter of 2025 from seven 2% in the first quarter of 2024.
Calvin Rice: Adding to the positive trend in net unit churn was a four 4% year over year increase in the average revenue per unit or <unk> to $8 24.
Calvin Rice: The increase in <unk> was primarily driven by the success of our prior pricing actions and to a lesser extent continued sales of our new Gen eight Asia.
Calvin Rice: While we believe the demand for our wireless services will continue to decline on a secular basis, as reflected in declining pager units in service, we are hopeful that our focus on pricing and other initiatives like the Gen A pager will continue to further offset revenue lost through pager unit decline. One of those more recent initiatives includes an increase in the price that we charge our customers for pagers that are not returned when service is discontinued. This increase went into effect in February, and we believe this should lead to an annualized benefit of at least $1 million going forward as a result of this initiative.
Calvin Rice: While we believe the demand for our wireless services will continue to decline on a secular basis as reflected in declining paging units in service. We are hopeful that our focus on pricing and other initiatives like the G&A Patriot will continue to further offset revenue washed through Patriot net decline.
Calvin Rice: One of those more recent initiatives includes an increase in the price that we charge our customers for payers that are not returned when services discontinued.
This increase went into effect in February and we believe this should lead to an annualized benefit of at least $1 million going forward as a result of this initiative.
Calvin Rice: These revenues are recorded as product sales under our wireless revenue. Turning to first quarter software revenue, maintenance revenue totaled $9.1 million and was down slightly from the prior year quarter by approximately 2.1%. New maintenance revenue was down slightly in 2025 as a result of license sales.
Calvin Rice: Revenues are recorded as product sales under our wireless revenue turning.
Calvin Rice: Turning to first quarter software revenue maintenance revenue totaled $9 1 million and was down slightly from the prior year quarter by approximately two 1% new maintenance revenue was down slightly in 2025 as a result of license sales, while first quarter bookings were strong as Ben highlighted it will take several quarters for us to grow new maintenance revenue back.
Calvin Rice: While first quarter bookings were strong, as has been highlighted, it will take several quarters for us to grow new maintenance revenue back to a point where we can return to revenue growth. In the near term, we expect to be in line or slightly below prior year results. As previously mentioned, growth in professional services revenue was a key driver in the growth of software revenue in the first quarter of 2025. Professional services revenue of $5.8 million in the first quarter of 2025 was up nearly 44% from revenue of $4 million in the first quarter of 2024.
Calvin Rice: To a point, where we can return to revenue growth in the near term, we expect to be inline or slightly below prior year results.
Calvin Rice: As previously mentioned growth in professional services revenue was a key driver in the growth of software revenue in the first quarter of 2025 professional services revenue of $5 8 million in the first order of $2 25 was up nearly 44% from revenue of $4 million in the first quarter of 2024.
Calvin Rice: We are seeing further sustained improvement in our resource utilization, delivering on our internal initiatives to better align total resources with our backlog and driving a higher rate of margin and net cash flow. Managed services has evolved into a significant component of our professional services revenue. In the first quarter, managed services revenue totaled $1.3 million, or 22.7% of total professional services revenue. This is up more than 7% from prior quarter revenue of $1.2 million, and up more than 180% from revenue of $0.5 million in the first quarter of 2024. License and hardware revenue totaled nearly $3 million, and it was in line with the same period of 2024, consistent with the strong levels of software operations bookings we continue to see.
Calvin Rice: We are seeing further sustained improvement in our resource utilization delivering on our internal initiatives to better align total resources with our backlog and driving a higher rate of margin and net cash flow.
Calvin Rice: Managed services has evolved into a significant component of our professional services revenue.
Calvin Rice: During the first quarter managed services revenue totaled $1 3 million or 22, 7% of total professional services revenue. This is up more than 7% from prior quarter revenue of $1 2 million and up more than 180% from revenue of zero point $5 million in the first quarter of 2020 for life.
Calvin Rice: License and hardware revenue totaled nearly $3 million and was in line with the same period of 2024 consistent with the strong levels of software operations bookings, we continue to see.
Calvin Rice: Okay.
Calvin Rice: First border adjusted operating expenses, which excludes depreciation, accretion, and severance and restructuring costs, totaled $29.4 million in the first border compared to $28.5 million in the prior year period. While year-over-year expenses were up $0.8 million, most of the increase was driven by selling and marketing expense, primarily to a greater presence at this year's HEMS conference, additional personnel, and costs directly related to the more than 9% increase in software revenue. Technology operations continues to benefit from network rationalization and cost reductions as we look to minimize the impact of unit churn.
Calvin Rice: First quarter, adjusted operating expenses, which excludes depreciation accretion in severance and restructuring cost totaled $29 4 million in the first quarter compared to $28 5 million in the prior year period.
Calvin Rice: While year over year expenses were up 0.8 million most of the increase was driven by selling and marketing expense primarily to a greater presence at this year's HIMSS conference additional personnel and costs directly related to more to the more than 9% increase in software revenue.
Calvin Rice: Technology operations continues to benefit from network rationalization and cost reductions as we look to minimize the impact of the unit churn.
Calvin Rice: General and administrative costs were generally in line, apart from timing variances and severance and restructuring, and severance and restructuring no longer includes amortization of the New York lease, which ended in the fourth quarter last year. Adjusted EBITDA totaled $8.2 million, a nearly 9% increase from adjusted EBITDA in the same quarter of 2024. This is a reflection of our strong pipeline results to begin the year. I'd also like to address our cash balances, which were just under $20 million at the end of the first quarter. Consistent with prior years, our cash balances declined in the first quarter because of typical working capital needs, including things like the payment of our short-term incentive plans, prepaid annual renewals of technology contracts, etc.
General and administrative costs were generally in line apart from timing variances in severance and restructuring and.
Calvin Rice: Severance and restructuring no longer includes amortization of the New York lease which ended in the fourth quarter last year.
Calvin Rice: Adjusted EBITDA totaled $8 2 million or nearly 9% increase from adjusted EBITDA in the same quarter of 2024. This is a reflection of our strong topline results to begin the year.
Calvin Rice: I'd also like to address our cash balances, which were just under $20 million at the end of the first quarter.
Calvin Rice: <unk> with prior years, our cash balances declined in the first quarter because of typical working capital needs, including things like the payment of our short term incentive plans prepaid annual renewals of technology contracts et cetera. Additionally.
Calvin Rice: Additionally, first quarter cash flow financing activities are typically higher than in the three remaining quarters of the year, reflecting payments on the company's long-term incentive.
Calvin Rice: Additionally, first quarter cash flow financing activities are typically higher than in the three remaining quarters of the year, reflecting payments on the company's long term incentive plans.
Calvin Rice: However, we anticipate cash balances will generally grow through the remainder of the year, given those needs are behind us. Based on our current outlook, we anticipate annual free cash flow in the range of $24 to $28 million, and expect to exit 2025 with cash balances between $23 and $27 million.
Calvin Rice: We anticipate cash balances will generally grow through the remainder of the year given those needs are behind us based on our current outlook, we anticipate annual free cash flow in a range of 24% to $28 million and expect to exit 2025, with count cash balances between 23% and $27 million.
Calvin Rice: Moving on to guidance for 2025. We have provided estimates for revenue and adjusted EBITDA. As a reminder, the figures I'm going to discuss today are included in our guidance table in the earnings release.
Calvin Rice: Moving onto guidance for 2025, we have provided estimates for revenue and adjusted EBITDA. As a reminder, the figures I'm going to discuss today are included in our guidance table in the earnings release.
Calvin Rice: We have begun 2025 on very positive footing, and no doubt our solid performance in the first quarter of 2025 might lead many to impute a higher level of performance than is reflected by the midpoints of our current financial guidance range. However, like many of our peers, as Vince noted earlier, we believe that given the current uncertainty in the macroeconomic environment and its potential impact on the healthcare industry, it is more prudent to maintain a position of guarded optimism until we have greater visibility on the year. As a result, we are reiterating our guidance estimates for revenue and adjusted EBITDA generation for this year.
Calvin Rice: We have begun 2025 on very positive footing and no doubt our solid performance in the first quarter of 'twenty five might lead many to impute, a higher level of performance and as reflected by the midpoint of our current financial guidance ranges. However.
Vince Kelly: However, like many of our peers as Vince noted earlier, we believe that given the current uncertainty in the macroeconomic environment and its potential impact on the health care industry. It is more prudent to maintain a position of guarded optimism until we have greater visibility on the year. As a result, we are reiterating our guidance estimates for revenue and adjusted.
Vince Kelly: EBITDA generation for this year and 2025, we expect total revenue to range from $134 million to $142 million. The midpoint of our guidance reflects consolidated revenue generally in line with 2024 results, but with a higher mix of software revenue, while the high end of our guidance reflects nearly 3% annual grew.
Calvin Rice: In 2025, we expect total revenue to range from $134 to $142 million. The midpoint of our guidance reflects consolidated revenue generally in line with 2024 results, but with a higher mix of software revenue, while the high end of our guidance reflects nearly 3% annual growth. Included in the 2025 guidance, we expect wireless revenue to range between $69 to $72 million. Software revenue is expected to range from $65 to $70 million in 2025, with the midpoint implying total software revenue growth of more than 5% and more than 9% annual growth at the high end of the guidance range.
Vince Kelly: Both.
Vince Kelly: Included in the 2025 guidance, we expect wireless revenue to range between $69 million to $72 million.
Vince Kelly: Software revenue is expected to range from $65 million to $70 million in 2025, with the midpoint, implying total software revenue growth of more than 5% and more than 9% annual growth at the high end of the guidance range.
Calvin Rice: Lastly, our adjusted EBITDA guidance for 2025 is $27.5 to $32.5 million. The midpoint reflects minor improvement over 2024, while the high end represents over 10% growth, largely expected to be driven by a greater mix of higher margin software license books.
Vince Kelly: Lastly, our adjusted EBITDA guidance for 2025 is 27, 5% to $32 5 million.
Vince Kelly: The midpoint reflects a minor improvement over 2024, while the high end represents over 10% growth largely expected to be driven by a greater mix of higher margin software license bookings.
Vincent Kelly: With that said, I will now turn the call back over to Vincent. Thank you, Calvin. Before I open the call up for your questions, I'd like to again point out how proud I am of the strong performance our team was able to deliver in the first quarter, and believe these results position us well for the remainder of the year. We believe we are strongly positioned to grow our franchise while returning capital to our shareholders. We have a long-term organic growth engine in our software solutions through Spok Care Connect, and we maintain a source of strong recurring revenue in our wireless service line.
Vince Kelly: That said I will now turn the call back over to Vince.
Vince Kelly: Thank you Calvin before I open the call up for your questions I'd like to again point out how proud I am of the strong performance. Our team was able to deliver in the first quarter and believe these results position us well for the remainder of the year. We believe we are strongly positioned to grow our franchise, while returning capital to our shareholders. We have a long term.
Vince Kelly: Organic growth engine, and our software solutions, who spoke care connect and we maintain a source of strong recurring revenue and our wireless service lines. We won the largest paging company offering in the world integrated with our software operations and we have enhanced our paging platform and user devices to serve our core health care customer base, we believe.
Vincent Kelly: We run the largest paging company offering in the world, integrated with our software operations, and we have enhanced our paging platform and user devices to serve our core healthcare customer base. We believe these two assets going for us, our best financial results are ahead of Spok, and Spok's future is bright.
Vince Kelly: These two assets going for us our best financial results are ahead of spoke and spokes future is bright.
Vincent Kelly: We appreciate your support and interest in Spok, and we look forward to updating everyone again next quarter when we report second quarter results in July.
Vince Kelly: We appreciate your support and interest in spoke and we look forward to updating everyone again next quarter. When we report second quarter results in July. Thank you for joining US. This morning, operator, you may now open the call up to questions.
Vincent Kelly: Thank you for joining us this morning.
Operator: Operator, you may now open the call up to questions. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone.
Speaker Change: Great. Thank you well now be conducting a question and answer session.
Speaker Change: If you'd like to ask a question. Please press star one on your telephone keypad.
Operator: Confirmation toll will indicate your life is in question. You may press star 2 to remove. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the button. One moment, please.
Speaker Change: Confirmation tone will indicate your line is that the question Kim may push start to remove itself from the queue.
Speaker Change: Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star Keith one moment, please pull for questions.
Speaker Change: First question here is from Anderson Cha from B Riley. Please go ahead.
George Melas: This is questionnaires from Anderson Shock from B. Reilly. Hey, thanks for taking the questions and congratulations on a really strong quarter. So first, you signed 22 six-figure customer contracts in the first quarter.
Anderson Cha: Hey, Thanks for taking the questions and congratulations on a really strong quarter.
Anderson Cha: So first you signed 22 six figure customer contracts in the first quarter I guess is there any seasonality with the larger seven figure contracts. So we should be thinking about I know you signed seven in the fourth quarter last year.
Michael Wallace: I guess, is there any seasonality with the larger seven-figure contracts that we should be thinking about? I know you signed seven in the fourth quarter last year. You know, there's really not, we've noticed a good trend so far this year. We signed more in March than we signed in February than we signed in January. So it's certainly been trending in the right direction. And so far in the second quarter, it's looking pretty good, too. So no, no seasonality. We've not seen any type of, you know, tariff related or economic slowdown related pressure on our customers.
Anderson Cha: Theres really not we've not as a good trend so far this year.
Anderson Cha: We signed more in March than we signed in February than we signed in January. So that's certainly been trending in the right direction. So far in the second quarter, it's looking pretty good too so no.
Anderson Cha: Seasonality, we've not seen any type of.
Anderson Cha: Tariff related or economic slowdown related pressure on our customers. There are they are buying at a healthy rate.
Michael Wallace: They're, they're, they're buying at a healthy rate. Okay, got it.
Speaker Change: Okay got it and then there was a really strong quarter for wireless product revenue I guess, what drove this and should we expect to see this continue or well, let's return to the story around 600000 or 700000 range per quarter.
Calvin Rice: And then it was a really strong quarter for wireless product revenue. I guess what drove this and should we expect to see this continue? Or will this return to the historic around $600,000 to $700,000 range per quarter?
Calvin Rice: Hey, Anderson, this is Calvin. Yeah, so I mentioned a little bit about that in the prepared remarks, specifically with the initiative around increasing the prices of our disconnect fees. So when a customer disconnects a pager and the units are not returned to us, they are charged for those units, and we increased that pricing in the first quarter. And so most of that benefit you're seeing there is specifically from that. And we do expect, on an annualized basis, to get a benefit of about a million dollars. So I would expect to see, you know, probably about $250,000 a quarter higher, relatively speaking, go forward.
Calvin Rice: Hey, Andrew This is Calvin yeah, So I mentioned, a little bit about that in the prepared remarks, specifically with the initiative around increasing the prices.
Speaker Change: Our disconnection piece, so when we when a customer disconnects pager.
Calvin Rice: And it's not returned to a state.
Speaker Change: They are charged for those units and we increase that pricing.
Speaker Change: Pricing in the first quarter and so most of that benefit Youre seeing there is specifically from that and we.
Speaker Change: Do expect on an annualized basis to get a benefit of about $1 million. So I would expect to see.
Speaker Change: Probably about 200 to $1000 a quarter higher relatively speaking go forward.
Calvin Rice: Okay, that's really helpful.
Speaker Change: Okay, that's really helpful and then on.
Calvin Rice: And then on gross margin, so gross margin improved to 80%. I guess what drove this and should we expect to see this continue at this level through the year? Yeah, so the gross margin is going to fluctuate, you know, depending upon, you know, we had a really strong revenue quarter, so that's going to be the primary driver there that the cost side of the equation was relatively similar to what we've seen. And so, you know, you might get a blip up or down just based on a strong quarter like this, but I wouldn't expect the the overall dynamics to really be changing much from what we've Okay, got it.
Speaker Change: Gross margins, so gross margin improved to 80% I guess, what drove this and as we expect to see this continue at this level through the year.
Speaker Change: Yes, so the gross margin is going to fluctuate.
Speaker Change: Depending upon we had a really strong revenue quarter. So that's going to be the primary driver there the cost side of the equation is relatively similar to what we've seen.
Speaker Change: So you might get a blip up or down just based on a strong quarter like this but I wouldn't expect the overall dynamics to really be changing much from what we've seen.
Speaker Change: Okay got it and then software backlog was up about 15% year over year, I guess whats the conversion timeline for this and I guess, how will this impact the revenue recognition through the year.
Michael Wallace: And then software backlog up about 15% year over year. I guess what's the conversion timeline for this? And I guess how will this impact the revenue recognition through the year? Yeah, I mean most of the of the backlog Anderson, this is Mike, you know, about half of it is going to be services and the other half is going to be maintenance. So the maintenance component will, will generally kind of run through over a one year period. And then I would say on the services part, you're looking at that probably like nine to 12 months, generally speaking, that you run through that maybe nine to 15 months or so.
Speaker Change: Yes, I mean most of the.
Mike: The backlog Anderson this is Mike.
Mike: About half of it is going to be services and the other half is going to be maintenance. So the maintenance component oil well generally kind of run through over a one year period, and then I would say on the services part.
Mike: Looking at it that's probably like nine to 12 months generally speaking that you run through that maybe nine to 15 months or so.
Mike: It's kind of the usual transmission time.
Michael Wallace: That's kind of the usual transmission time. As we go through, I'll go through that backlog.
Mike: As we go through.
Mike: Got you to that backlog.
Michael Wallace: Okay, got it.
Speaker Change: Okay got it well. Thank you again for taking the questions and congratulations on the great quarter.
George Melas: Well, thank you again for taking the questions and congratulations on the great quarter.
Mike: Thank you.
George Melas: Next question is from George Melas from MKH Management. Great, thank you. Good afternoon. Congratulations on a great start to the year. A few quick questions.
Speaker Change: Next question is from George Melas from <unk> management. Please go ahead.
Speaker Change: Great. Thank you.
Speaker Change: Good afternoon, congratulations on a great start to the year.
Speaker Change: Quick question.
Vincent Kelly: Vinci talked about the HIMSS conference on the last quarter, and I just, I think it was in March, just wanted to see what was your experience there and What did you see that maybe you found surprising or how was the reception, you know, for the new products that you guys are putting out? Yeah, George, great question. And much better than what it was last year, the conference is kind of waking back up, we took a different approach this year. And that we sent a sales team that had to pre qualify meetings ahead of time, so that we didn't just send a bunch of people to stand at our booth, and try to catch people walking down the aisle, because it seems is still not back to that level that it used to be pre pandemic, where you could do that and have great success.
Speaker Change: Vince you talked about the HIMSS conference in the last quarter.
Speaker Change: I think it was in March just wanted to see what was your experience there and.
Speaker Change: Yeah.
Speaker Change: What do you see that maybe you've found surprising or.
Speaker Change: How is the reception for the new products that you guys are putting out.
Speaker Change: Yes, George Great question much better than what it was last year. The conference just kind of waking back up we took a different approach this year and that we send a sales team that had to prequalify meetings ahead of time. So that we didn't just spent a bunch of people to stand at our booth and try to catch people walking down the aisle because.
Speaker Change: Tim just still not back to that level.
Speaker Change: He used to be pre pandemic, where you could do that and have great success.
Vincent Kelly: But what it is, able to do is put customers together that are interested in Spok, that want to do an upgrade, and that we can set those meetings up ahead of time. And we had great success with that they like what we're doing with the new software. They like the new UI, the look and feel, we think it helped drive a lot of good numbers here in the first quarter is going to drive a lot of good pipeline that we have for the second quarter. So very encouraged by it. And we're going to actually go again next year, we're going to get a booth again, because remember, last year, we didn't have a booth, so we spent a little bit of money this year.
Speaker Change: What it is able to do is put customers together that are interested in so they wanted to do an upgrade and that we can set those meetings up ahead of time and we had great success with that they like what we're doing with the new software.
Speaker Change: The new UI, the look and feel we think it helped drive a lot of good numbers here in the first quarter is going to drive a lot of good pipeline that we have for the second quarter. So very encouraged by it and we're going to actually go again next year, we're going to get in our booths again, because remember last year, we didn't have a boost so.
Speaker Change: So we spent a little bit of money this year and I think we're going to cautiously incrementally increase that investment next year as well.
Vincent Kelly: And I think we're going to, you know, cautiously, incrementally increase that investment next year as well.
George Melas: Great, OK, good to know.
Speaker Change: Okay good to know.
Michael Wallace: On the services side. The professional, just the professional services is growing, and then on top of that you have the managed services. Maybe help us understand what you're doing on the professional service. Is it somewhat different than 12 months ago or 24 months ago? Or is it, you know, maybe it was just a little bit more of the same? Yeah, I'll go ahead. George, it's Mike, I'll go ahead and answer that. And Calvin can can fill in anything I missed. But you know, generally speaking, it's it's, it's the same as far as the underlying work that we're doing, George.
Speaker Change: On the services side.
Speaker Change: The professional adjusted professional services is growing and then on top of that you have the managed services maybe help us understand.
Speaker Change: What we're doing on the professional service is.
Speaker Change: Is it somewhat different.
Speaker Change: 12 months ago, or 24 months ago or is that maybe we didn't get a little bit more of the same.
Speaker Change: Yeah I'll go ahead, George It's Mike I'll go ahead and answer that and Calvin can can fill in anything I missed but generally speaking.
Speaker Change: It's the same as far as the underlying work that we're doing George.
Michael Wallace: The biggest difference as it relates to managed services is, you know, managed managed services ends up Being great for the customer because over a, usually a three year time period, they get a fixed cost. They know what their cost is going to be for all of the upgrades and work that we're going to do for them. And as opposed to kind of the traditional fixed fee time and expense that we had historically been doing, let's say two, three, four years ago. So as we've gone forward, one of the things we're doing from a sales perspective is really trying to drive more managed services such that it helps the customer from the standpoint of knowing what their cost is going to be.
Speaker Change: The biggest difference as it relates to managed services is.
Speaker Change: Manage managed services ends up being.
Speaker Change: Being great for the customer because over a usually a three year time period, they get a fixed cost they know what their cost is going to be for all of the upgrades and work that we're going to do for them.
Speaker Change: And as opposed to kind of the traditional <unk>.
Speaker Change: Fixed fee time and expense that we had historically been doing let's say 234 years ago. So as we've gone forward one of the things we're doing from a sales perspective is really trying to drive more managed services such that it helps the customer from the standpoint of knowing what their cost is going to be.
Michael Wallace: It helps us from a revenue recognition standpoint because the revenue is ratable. And thirdly, it helps a great deal from a churn perspective because we know we've got those customers locked in for that three year period of time. So at the end of the day, if we do everything right, that customer is happy because they know they're spent for those three years. And at the end of that three year period, we renew them and essentially do the same thing over again from a pure of services perspective.
Speaker Change: It helps us from.
Speaker Change: From a revenue recognition standpoint, because the revenue is ratable and thirdly. It helps a great deal from a churn perspective because.
Speaker Change: We know we've got those customers locked in for that three year period of time so.
Speaker Change: At the end of the day, we do everything right that.
Speaker Change: Customer is happy because they know their spend for those three years and then at the end of that three year period, we renew them and essentially do the same thing over again from a peer of services perspective.
Speaker Change: Okay.
Calvin Rice: And the hosted revenue, is that included in managed services? And is that- Do we have a few customers at this point on Hosted? Yeah, this is Calvin, George, we've got several customers, we've probably got about a dozen customers, I think, at this point on the hosted services, we're slowly making, chipping away at that. It's not included in the managed services component, we have that accounted for separately, but right now, we're just not breaking it out, it's just not material enough, so slowly chipping away at that, and obviously that's something that compounds over time, and so the long-term benefit is there.
Speaker Change: And the hosted the hosted revenue is that included in managed services is that.
Speaker Change: Do we have a few customers at this point on hosted.
Speaker Change: Yes. This is Calvin George we've got several customers, we've probably got about a dozen customers I think at this point on the hosted services, we're slowly making chipping away at that it's not included in the managed services component.
Speaker Change: We have that accounted for separately, but right now we're just not breaking it out it's just not material enough so slowly chipping away at that.
Speaker Change: Obviously, that's something that compounds over time, and so the long term benefit is there.
George Melas: Great. Okay.
Speaker Change: Great. Okay, and then one last question, Mike can you tell us a little bit about those two new logos.
Michael Wallace: And then one last question. Mike, can you tell us a little bit about those two new logos? Are they meaningful customers? Are they customers that you've been... after for a long time. Yeah, I mean, look, we know the total population of every customer in the United States that we're going after, so definitely been after them for a while. They were both two really good wins to get in the stable. It kind of falls, you've asked this question before, George, kind of in the 15 to 20 percent, you know, from a revenue, or not from a revenue, from a bookings amount standpoint.
Speaker Change: Are there meaningful customers the customers that you've been.
Speaker Change: After for a long time.
Speaker Change: Yes, I mean look we know the the total population of every customer in the United States that we're going after so.
Speaker Change: Definitely been after them for a while they were both two really good wins too.
Speaker Change: To get in the stable.
Speaker Change: It kind of falls you you've asked this question before George kind of in the 15% to 20%.
Speaker Change: From a revenue or from a revenue from a bookings amount standpoint.
Michael Wallace: You know, and as we continue the R&D investment that Vince talked about in his prepared remarks, that's something that we are really looking forward to getting more of as we go forward. So, yeah, two great wins for us on the new logo. Yeah, and we expect to see more. We've created a new business development team that is doing nothing but going after new logo. They are qualifying these customers that we don't have. They know exactly what vendors those customers are using for what functionality. And we can often go in there and show them that you're spending a lot of money and you can turn around and get Spok and save a lot of money with our integrated solution.
Speaker Change: And as we continue the R&D investment that Vince talked about it in his prepared remarks.
Speaker Change: That's something that we are really looking forward to getting more of as we go forward. So yeah, two great wins for us on the new logo front.
Speaker Change: Yes, and we expect to see more.
Speaker Change: We've created a new business development team that is doing nothing but going after new logo. They are qualifying these customers that we don't have they know exactly what vendors as customers are using for what functionality and we can often go in there and show them that you are spending a lot of money and you could turn around and get folks and save a lot of money.
Speaker Change: With our integrated solution. So it just becomes a question of whether or not they can prioritize a move like that right now because they have a lot of other competing technology and projects inside these hospitals, but we're very optimistic that we're going to gain momentum and see more and more results out of this new business development group going forward, it's going to be a good thing for slope.
Michael Wallace: So it just becomes a question of whether or not they can prioritize a move like that right now because they have a lot of other competing technology and projects inside these hospitals. But we're very optimistic that we're going to gain momentum and see more and more results out of this new business development group going forward. It's going to be a good thing.
George Melas: Okay, any, are there any big elephants in the, the sales pipeline? Um, I mean, I know those are where, you know, But just wondering, yes. Yeah. OK. Thanks.
Speaker Change: Okay.
Speaker Change: Are there any big elephants.
Speaker Change: The sales pipeline.
Speaker Change: I mean, I know those are aware.
Speaker Change: <unk>.
Speaker Change: But just wondering.
Speaker Change: Yes.
Speaker Change: Yes, okay.
Speaker Change: Thanks.
Operator: Bye.
Vincent Kelly: This concludes the question and answer session.
Moderator: This concludes the question and answer session I would like to turn the floor back to Vince Kelly for any closing comments.
Vincent Kelly: I'd like to turn it forward back to Vince Kelly for any Thank you everyone. We had a good quarter and a very strong quarter and we expect to do it again in the second quarter here and we look forward to talking to you when we report later in July. Everyone have a great day.
Speaker Change: Thank you everyone.
Vince Kelly: We had a good quarter and a very strong quarter and we expect to do it again in the second quarter here and we look forward to talking to you. When we report later in July.
Speaker Change: Everyone have a great day.
Operator: This concludes today's teleconference. You may disconnect your line at this time. Thank you again. © BF-WATCH TV 2021 © The Ultimate Parody Site!
Speaker Change: This concludes today's teleconference. You may disconnect. Your line at this time. Thank you again for your participation.
Speaker Change: Okay.
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