Spok Holdings, Inc. (NASDAQ:SPOK) Q4 2023 Earnings Call Transcript
Spok Holdings, Inc. (NASDAQ:SPOK) Q4 2023 Earnings Call Transcript February 21, 2024
Spok Holdings, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings. Welcome to Spok Holdings' Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] Please note, this conference is being recorded. I will now turn the conference over to Al Galgano from Investor Relations. Thank you. You may begin.
Al Galgano: Hello, everyone, and welcome. I am joined today by Vince Kelly, Chief Executive Officer, Michael Wallace, President of Spok, Inc., and Chief Operating Officer, and Calvin Rice, Chief Financial Officer. After a brief presentation by management, we will open up the call to your questions. 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 revenue, 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.
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 uncertainties. Please review the risk factors section relating to our operations and the business environment, which are contained in our 2023 Form 10-K 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. With that, I'll turn the call over to Vince.
Vincent Kelly: Thank you, Al and good afternoon. Thank you for joining us for our fourth quarter 2023 earnings call. Let me preface my comments by saying how proud I am of our Spok team and our ability to generate very impressive performance in 2023, while staying true to our mission. I'm very pleased with the momentum our team has created, and I'm excited by our prospects and outlook. Since the strategic pivot we announced about two years ago, our focus has not changed; that is to grow revenue, generate cash, and return capital to our stockholders. For 2023, it was mission accomplished. We returned $25.6 million of cash to our stockholders while more than covering that total by generating in excess of $30 million of adjusted EBITDA.
We were also successful in our stated goal to grow revenue. I'm proud to report that for the first time in Spok's history, we were able to grow consolidated total revenue with revenue growth for both wireless and software. We accomplished this by responsibly investing in our business to support growing revenue, while closely managing our operating expenses and capital expenditures. While the dividend level we declared when we announced our pivot in February of 2022 may have initially seemed high, we believe Spok has struck an excellent balance between making the necessary investments to fuel future growth, while continuing to generate cash flow and returning capital to our stockholders. We believe we are on a sustainable path to continue paying our quarterly dividend at these levels for the foreseeable future and are encouraged by our prospects.
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