George Miller's questions to Spok Holdings (SPOK) leadership • Q3 2024
Question
George Miller of MJH Management questioned the drivers behind the consistent growth in software operations bookings, the timeline for these bookings to translate into maintenance revenue, and whether Spok is seeing changes in the competitive landscape.
Answer
CEO Vince Kelly stated that while bookings have been consistent, it's partly coincidental as large deals can cause quarterly fluctuations, but reiterated confidence in achieving double-digit bookings growth for the year. CFO Calvin Rice explained that it takes approximately 6 to 12 months for bookings to fully flow through and have a comparable year-over-year impact on maintenance revenue. Kelly added that Spok is strengthening its position against traditional rivals and sees a new opportunity in partnering with UCaaS/CCaaS vendors that are replacing legacy PBX systems in hospitals.