Thursday, February 9, 2017
SAN JOSE, Calif.
SAN JOSE, Calif.--(BUSINESS WIRE)--
Vocera
Communications, Inc. (NYSE: VCRA), the leading healthcare
communications company, today reported total revenue of $36.0 million
for the fourth quarter of 2016, an increase of 27% compared to revenue
of $28.4 million in the fourth quarter of 2015.
“2016 was a pivotal year for Vocera. We had strong sales execution and
believe our highly differentiated software platform is unmatched in the
marketplace today,” said Brent Lang, president and CEO of Vocera. “The
demand for our platform is expanding as customers seek unified solutions
to address their communication, collaboration and clinical workflow
challenges.”
Fourth quarter of 2016 financial highlights include:
-
Total revenue of $36.0 million, up 27% year-over-year
-
GAAP loss per share of $(0.36); non-GAAP earnings per share of $0.00
-
GAAP net loss of $(9.8) million; Adjusted EBITDA of $1.0 million
-
Full-year bookings of $143.1 million
-
Deferred revenue of $55.0 million; and backlog of $69.5 million as of
December 31, 2016
-
Deferred revenue and backlog was $124.5 million as of December 31,
2016, up 27% year-over-year.
-
Cash, cash equivalents and short-term investments of $74.1 million as
of December 31, 2016; no debt
Fourth Quarter 2016 Results
Total revenue for the fourth quarter of 2016 was $36.0 million, compared
to $28.4 million in the fourth quarter of 2015.
|
(in thousands)
|
|
Three months ended December 31,
|
|
|
|
2016
|
|
2015
|
|
% change
|
|
Product revenue
|
|
|
|
|
|
|
|
Device
|
|
$
|
13,521
|
|
|
$
|
11,448
|
|
|
18.1
|
%
|
|
Software
|
|
6,339
|
|
|
4,342
|
|
|
46.0
|
|
|
Total product
|
|
19,860
|
|
|
15,790
|
|
|
25.8
|
|
|
|
|
|
|
|
|
|
|
Service revenue
|
|
|
|
|
|
|
|
Maintenance and support
|
|
11,676
|
|
|
9,980
|
|
|
17.0
|
|
|
Professional services and training
|
|
4,476
|
|
|
2,595
|
|
|
72.5
|
|
|
Total service
|
|
16,152
|
|
|
12,575
|
|
|
28.4
|
|
|
Total revenue
|
|
$
|
36,012
|
|
|
$
|
28,365
|
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin for the fourth quarter of 2016 was 59.4%, compared to
63.4% in the fourth quarter of 2015. Gross margin includes the effect of
added costs related to the Extension Healthcare acquisition.
|
|
|
Three months ended December 31,
|
|
|
|
2016
|
|
2015
|
|
Gross margin
|
|
|
|
|
|
Product
|
|
68.0
|
%
|
|
66.7
|
%
|
|
Service
|
|
48.9
|
|
|
59.4
|
|
|
Total gross margin
|
|
59.4
|
%
|
|
63.4
|
%
|
|
|
|
|
|
|
|
Non-GAAP gross margin
|
|
|
|
|
|
Product
|
|
70.8
|
%
|
|
67.4
|
%
|
|
Service
|
|
53.3
|
|
|
61.5
|
|
|
Total non-GAAP gross margin
|
|
63.0
|
%
|
|
64.8
|
%
|
|
|
|
|
|
|
|
|
GAAP net loss for the fourth quarter of 2016 was $(9.8) million, or
$(0.36) per share, compared to $(3.0) million, or $(0.11) per share in
the fourth quarter of 2015. Both Adjusted EBITDA and non-GAAP net income
were positive in the fourth quarter of 2016.
|
|
|
Three months ended December 31,
|
|
(in thousands except per share amounts)
|
|
2016
|
|
2015
|
|
Net loss
|
|
$
|
(9,780
|
)
|
|
$
|
(2,984
|
)
|
|
Net loss per share
|
|
$
|
(0.36
|
)
|
|
$
|
(0.11
|
)
|
|
Non-GAAP net income (loss)
|
|
$
|
49
|
|
|
$
|
(291
|
)
|
|
Non-GAAP net income (loss) per share
|
|
$
|
—
|
|
|
$
|
(0.01
|
)
|
|
Adjusted EBITDA
|
|
$
|
972
|
|
|
$
|
247
|
|
|
|
|
|
|
|
|
|
|
|
Deferred revenue at December 31, 2016, was $55.0 million, compared to
$41.8 million at September 30, 2016, and $39.6 million at December 31,
2015. Cash equivalents and short-term investments of $74.1 million at
December 31, 2016, compared to $121.6 million at September 30, 2016, and
$116.8 million at December 31, 2015. The Company continues to have a
strong balance sheet with no debt.
Full Year and First Quarter 2017 Guidance
For the full-year 2017, the Company expects revenue between $154 million
and $161 million and a GAAP loss per share between $(0.67) and $(0.51).
The Company expects non-GAAP net income per share to be between $0.07
and $0.24 and non-GAAP Adjusted EBITDA to be between $5.0 million and
$10.0 million.
For the first quarter of 2017, the Company expects revenue between $33.5
million and $35.5 million and a GAAP loss per share between $(0.32) and
$(0.28). The Company also expects non-GAAP net loss per share to be
between $(0.12) and $(0.06) and non-GAAP Adjusted EBITDA to be between
$(2.5) million and $(1.0) million.
|
(in millions except per share amounts)
|
|
Q1'17
|
|
FY'17
|
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Revenue
|
|
$
|
33.5
|
|
|
$
|
35.5
|
|
|
$
|
154.0
|
|
|
$
|
161.0
|
|
|
Loss per share
|
|
$
|
(0.32
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.67
|
)
|
|
$
|
(0.51
|
)
|
|
Diluted non-GAAP net income (loss) per share
|
|
$
|
(0.12
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
0.07
|
|
|
$
|
0.24
|
|
|
Adjusted EBITDA
|
|
$
|
(2.5
|
)
|
|
$
|
(1.0
|
)
|
|
$
|
5.0
|
|
|
$
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain amounts in our release may not re-compute due to rounding. A
reconciliation of non-GAAP to GAAP financial measures, and fourth
quarter and full-year guidance, are included in the financial schedules,
linked below.
Link to fourth-quarter financial statements, guidance and
reconciliation to GAAP:
http://www.vocera.com/public/earnings/VCRA-Q4-16-Financials.pdf
Conference Call Information
Vocera Communications will host a conference call at 5 p.m. ET (2 p.m.
PT) today, February 9, 2017, to discuss the Company’s results.
Investors may access a free, live webcast of the call through the
Investors section of the Company’s website at investors.vocera.com.
The call also can be accessed by dialing 844-464-3152, or 508-637-5574
for international callers, and using the access code 50849984.
A webcast replay of the call will be archived on the Vocera
website.
HIMSS Annual Conference
Vocera will be at the 2017 HIMSS Annual Conference and Exhibition, Feb.
19-23 in Orlando. During HIMSS17, attendees can visit the Vocera Booth
(#1261) for more information and product demonstrations, or email
investorrelations@vocera.com
for
a booth meeting.
Forward-Looking Statements
Statements in this press release that are not strictly historical in
nature are forward-looking statements within the meaning of the U.S.
federal securities laws, including statements regarding future events,
such as our ability to continue executing on our business plans and
strategies and our expected operating results for the first quarter and
full year 2017. These forward-looking statements are based on limited
information currently available to us and our management's expectations,
which are inherently subject to change and involve a number of risks and
uncertainties. Actual events or results may differ materially from those
in any forward-looking statement due to various factors, including but
not limited to, our ability to achieve anticipated strategic or
financial benefits from our acquisitions; changes in regulations in the
U.S. and other countries; the effects on government and commercial
hospital customers of the federal budget and budgetary uncertainty;
changes in healthcare insurance coverage and consumers’ utilization of
healthcare and hospital services; our ability to achieve and maintain
profitability; the demand for our various solutions in the healthcare
and other markets; our lengthy and unpredictable sales cycle; our
ability to offer high-quality services and support for our solutions;
our ability to acquire the sole and limited source hardware and software
components of our solutions; our ability to obtain the required capacity
and product quality from our contract manufacturer; our ability to
develop and introduce new solutions and features to existing solutions
and to manage our growth; and the other factors described in our most
recently filed Annual Report on Form 10-K and Quarterly Report on Form
10-Q, as well as our other filings with the Securities and Exchange
Commission (SEC). Our filings with the SEC are available on the
Investors section of the Company's web site at www.vocera.com.
The financial and other information contained in this press release
should be read in conjunction with the financial statements and notes
thereto included in our filings with the SEC. Our operating results for
any historical period, including the fourth quarter of 2016, are not
necessarily indicative of our operating results for any future periods.
This press release speaks only as of its date. We assume no obligation
to update the information in this press release, to revise any
forward-looking statements, or to update the reasons actual events or
results could differ materially from those anticipated in
forward-looking statements.
Use of Non-GAAP Financial Information
This press release contains financial measures that are not calculated
in accordance with U.S. generally accepted accounting principles (GAAP).
Our management evaluates the Company's results and makes operating
decisions using various GAAP and non-GAAP measures. In addition to our
GAAP results, we also consider non-GAAP gross margin, non-GAAP gross
margin for products and for services, non-GAAP net income/(loss),
non-GAAP earnings/(loss) per diluted share and non-GAAP operating
expenses. We also present Adjusted EBITDA, a non-GAAP measure that we
reconcile to net income/(loss). These non-GAAP measures should not be
considered as a substitute for the corresponding financial measure
derived in accordance with GAAP. We present the non-GAAP measures
because we consider them to be important supplemental information for
our investors for analyzing our performance, core operating results and
trends. Investors are encouraged to review the reconciliation of
non-GAAP financial measures to their most directly comparable GAAP
measures included with this press release.
Our non-GAAP gross margins, non-GAAP net income/(loss), non-GAAP
earnings/(loss) per diluted share, non-GAAP operating expenses, and
Adjusted EBITDA are exclusive of certain items to facilitate
management's review of the comparability of our core operating results
on a period to period basis because such items are not related to our
ongoing core operating results as viewed by management. We define our
"core operating results" as those revenues recorded in a particular
period and the expenses incurred within that period that directly drive
operating income in that period. Management uses these non-GAAP
financial measures in making operating decisions because, in addition to
meaningful supplemental information regarding operating performance, the
measures give us a better understanding of how we should invest in
research and development, fund infrastructure growth and evaluate the
effectiveness of marketing strategies. In calculating the above non-GAAP
results, management specifically adjusted for the following excluded
items:
a) Stock-based compensation expense impact. We recognize
equity plan-related compensation expenses, which represent the fair
value of all share-based payments to employees, including grants of
employee stock options and restricted stock units as non-GAAP
adjustments in each period.
b) Amortization of acquired intangibles. We acquired certain
companies in 2010, 2014 and 2016, and booked intangible assets related
to these acquisitions. The amortization of these acquired intangible
assets is excluded from non-GAAP net income because it is not related to
ongoing controllable management decisions and because it is non-cash in
nature.
c) Securities litigation. In August 2013, Vocera and other
related parties were named as defendants in two purported securities
class actions, alleging claims for allegedly misleading statements
regarding our business and financial results. An agreement in principle
to settle these matters has been agreed to by Vocera and lead plaintiff
counsel in the third quarter of 2015 and the settlement, which called
for payment of $9 million, was funded entirely and directly by our
insurance carriers and paid during the three months ended September 30,
2016. Our projections of net income/(loss), and non-GAAP earnings/(loss)
per diluted share for the full year and first quarter of 2017 do not
give effect to any such future legal expenses because we do not regard
them as reflective of the costs we incur to operate our business. For
the same reason, our non-GAAP results exclude these securities
litigation expenses.
d) Acquisition related expenses. In addition to the amortization
of acquired intangibles mentioned above, we also adjust for certain
acquisition-related expenses that we may incur including (i)
professional service fees and (ii) transition costs. Professional
service fees include third party costs related to the acquisition, such
as due diligence costs, accounting fees, legal fees, valuation services
and commissions, if any. Transition costs include retention payments,
transitional employee costs and earn-out payments (including amounts
relating to the distribution of purchase consideration amoung the
selling equity holders) treated as compensation expense. We consider
such costs and adjustments as highly variable in amount and frequency,
being significantly impacted by the timing and size of any acquisitions.
By excluding acquisition-related costs and adjustments from our non-GAAP
measures, management can better focus on the organic continuing
operations of our baseline and acquired businesses.
e) Restructuring costs. We exclude restructuring costs from
non-GAAP measures because we do not regard these limited-term or
one-time costs as reflective of normal costs we incur to operate our
business. These are defined in U.S. GAAP to include one-time employee
termination benefits, contract termination costs, and other associated
costs, with respect to exit or disposal activities.
Management adjusts for the above items because management believes that,
in general, these items possess one or more of the following
characteristics: their magnitude and timing is largely outside of
Vocera's control; they are unrelated to the ongoing operation of the
business in the ordinary course; they are unusual and we do not expect
them to occur in the ordinary course of business; or they are
non-operational, or non-cash expenses involving stock award grants.
We believe that the presentation of these non-GAAP financial measures is
warranted for several reasons:
1) Such non-GAAP financial measures provide an additional analytical
tool for understanding our financial performance by excluding the impact
of items which may obscure trends in the core operating results of the
business;
2) These non-GAAP financial measures facilitate comparisons to the
operating results of other companies commonly compared to us, which use
similar financial measures to supplement their GAAP results, thus
enhancing the perspective of investors who wish to utilize such
comparisons in their analysis of our performance; and
3) These non-GAAP financial measures are employed by our management in
their own evaluation of performance and are utilized in financial and
operational decision making processes, such as budget planning and
forecasting.
Set forth below are additional reasons why share-based compensation
expense is excluded from our non-GAAP financial measures:
i) While share-based compensation constitutes one of our ongoing and
recurring expenses, it is not an expense that requires cash settlement
by us. We therefore exclude these charges for purposes of evaluating
core operating results. Thus, our non-GAAP measurements are presented
exclusive of stock-based compensation expense to assist management and
investors in evaluating our core operating results.
ii) We present share-based payment compensation expense in our
reconciliation of non-GAAP financial measures on a pre-tax basis because
the exact tax differences related to the timing and deductibility of
share-based compensation are dependent upon the trading price of our
common stock and the timing and exercise by employees of their stock
options. As a result of these timing and market uncertainties, the tax
effect related to share-based compensation expense would be inconsistent
in amount and frequency and is therefore excluded from our non-GAAP
results.
As stated above, we present non-GAAP financial measures because we
consider them to be important supplemental measures of performance.
However, non-GAAP financial measures have limitations as an analytical
tool and should not be considered in isolation or as a substitute for
our GAAP results. In the future, we expect to incur expenses similar to
certain of the non-GAAP adjustments described above and expect to
continue reporting non-GAAP financial measures excluding such items.
Some of the limitations in relying on non-GAAP financial measures are:
-
Our stock options, restricted stock units, and stock purchase plans
are important components of incentive compensation arrangements and
will be reflected as expenses in our GAAP results for the foreseeable
future; and
-
Other companies may calculate non-GAAP financial measures differently
than us, limiting their usefulness as a comparative measure.
Pursuant to the requirements of SEC Regulation G, a detailed
reconciliation between our non-GAAP and GAAP financial results is set
forth in the financial tables referred to above, and linked to, this
press release. Investors are advised to carefully review and consider
this information strictly as a supplement to the GAAP results for the
respective periods.
About Vocera:
Vocera Communications, Inc. offers one of the most robust clinical
communications systems in healthcare. Vocera delivers secure, integrated
and intelligent communication solutions that enable care teams to
collaborate more efficiently by delivering the right information, to the
right person, on the right device, in the right location, at the right
time. Vocera solutions provide hands-free voice communication,
smartphone applications, secure text messaging, patient engagement
tools, and integrated clinical workflow with EHRs, nurse call systems
and physiological monitors. These solutions help improve operational
efficiency, quality of care, safety and satisfaction across the
continuum of care. In addition to technology solutions, Vocera drives
thought leadership and new standards in care to elevate patient, family,
nurse and physician experiences via the company's research
collaborative, the Experience Innovation Network. Vocera is led by
President and CEO Brent Lang and is headquartered in San Jose,
California, with offices in San Francisco, Indiana, Tennessee, Canada,
India, United Arab Emirates and the United Kingdom. Robert J. Zollars is
the Chairman of the Board. For more information, visit
www.vocera.com
and @VoceraComm on Twitter.
The Vocera logo is a trademark of Vocera Communications, Inc. Vocera®
is a trademark of Vocera Communications, Inc. registered in the United
States and other jurisdictions. All other trademarks appearing in this
release are the property of their respective owners.
Investors:
Vocera Communications, Inc.
Sue Dooley, 408-882-5971
investorrelations@vocera.com
or
Media:
Amendola Communications
Tara Stultz, 440-225-9595
tstultz@acmarketingpr.com
