Anders Schacht's questions to Spok Holdings Inc (SPOK) leadership • Q1 2025
Question
Anders Schacht inquired about the potential seasonality of large, seven-figure customer contracts, the drivers behind the strong wireless product revenue, the sustainability of improved gross margins, and the conversion timeline for the growing software backlog.
Answer
CEO Vince Kelly stated there is no seasonality in large contracts, only positive momentum. CFO Calvin Rice attributed the strength in wireless product revenue to increased fees for unreturned pagers, expecting an annualized benefit of approximately $1 million. Rice also noted that gross margin fluctuates with revenue strength but underlying dynamics are stable. COO Michael Wallace explained the software backlog is roughly half services (converting in 9-15 months) and half maintenance (converting over one year).