Vocera Announces Second Quarter Financial Results

Thursday, July 25, 2019
SAN JOSE, Calif.

SAN JOSE, Calif.--(BUSINESS WIRE)--Vocera Communications, Inc. (NYSE: VCRA), a recognized leader in clinical communication and workflow solutions, today reported total revenue of $44.8 million for the second quarter of 2019, compared to revenue of $42.7 million in the second quarter of 2018.

“The second quarter of 2019 was another solid quarter for Vocera, with good revenue and profitability,” said Brent Lang, Chairman and Chief Executive Officer of Vocera. “Software continues to be a highlight and was the fastest growing part of our business.”

Second quarter of 2019 financial highlights include:

  • Total revenue of $44.8 million, compared to $42.7 million last year
  • GAAP net loss per share of $(0.16); non-GAAP net income per share of $0.07
  • GAAP net loss of $(4.9) million; Adjusted EBITDA of $3.9 million
  • Deferred revenue and backlog combined of $116.4 million as of June 30, 2019

Second Quarter 2019 Results

Total revenue for the second quarter of 2019 was $44.8 million, an increase of 5% compared to last year.

(in thousands)

Three months ended June 30,

 

2019

 

2018

 

% change

Product revenue

 

 

 

 

 

Device

$

14,504

 

 

$

15,049

 

 

(3.6

)%

Software

8,628

 

 

6,775

 

 

27.4

 

Total product

$

23,132

 

 

$

21,824

 

 

6.0

%

 

 

 

 

 

 

Service revenue

 

 

 

 

 

Maintenance and support

$

16,928

 

 

$

15,505

 

 

9.2

%

Professional services and training

4,699

 

 

5,357

 

 

(12.3

)

Total service

21,627

 

 

20,862

 

 

3.7

%

Total revenue

$

44,759

 

 

$

42,686

 

 

4.9

%

GAAP gross margin for the second quarter of 2019 was 60.4%, compared to 60.1% in the second quarter of 2018.

 

Three months ended June 30,

 

2019

 

2018

Gross margin

 

 

 

Product

70.1

%

 

69.4

%

Service

49.9

 

 

50.4

 

Total gross margin

60.4

%

 

60.1

%

 

 

 

 

Non-GAAP gross margin

 

 

 

Product

73.3

%

 

72.9

%

Service

54.6

 

 

54.6

 

Total non-GAAP gross margin

64.3

%

 

64.0

%

GAAP net loss for the second quarter of 2019 was $(4.9) million, or $(0.16) per share, compared to GAAP net loss of $(3.6) million, or $(0.12) per share in the second quarter of 2018.

 

Three months ended June 30,

(in thousands except per share amounts)

2019

 

2018

Net loss

$

(4,857

)

 

$

(3,554

)

Net loss per share

$

(0.16

)

 

$

(0.12

)

Non-GAAP net income

$

2,232

 

 

$

2,779

 

Non-GAAP net income per share

$

0.07

 

 

$

0.09

 

Adjusted EBITDA

$

3,929

 

 

$

3,473

 

Deferred revenue at June 30, 2019 was $52.6 million compared to $58.6 million at December 31, 2018. Cash, cash equivalents and short-term investments were $215.4 million at June 30, 2019 and $221.2 million at December 31, 2018.

Full Year and Third Quarter 2019 Guidance

For the full-year 2019, the Company expects revenue between $182 million and $190 million and a GAAP loss per share between $(0.58) and $(0.42). The Company expects non-GAAP net income per share to be between $0.33 and $0.46 and non-GAAP Adjusted EBITDA to be between $19 million and $23 million.

For the third quarter of 2019, the Company expects revenue between $48 million and $52 million and a GAAP income (loss) per share between $(0.09) and $0.00. The Company expects non-GAAP net income per share to be between $0.14 and $0.22 and non-GAAP Adjusted EBITDA to be between $7.0 million and $9.5 million.

(in millions except per share amounts)

Q3’19

 

FY’19

 

Low

 

High

 

Low

 

High

Revenue

$

48.0

 

 

$

52.0

 

 

$

182.0

 

 

$

190.0

 

Income (loss) per share

$

(0.09

)

 

$

0.00

 

 

$

(0.58

)

 

$

(0.42

)

Non-GAAP net income per share

$

0.14

 

 

$

0.22

 

 

$

0.33

 

 

$

0.46

 

Adjusted EBITDA

$

7.0

 

 

$

9.5

 

 

$

19.0

 

 

$

23.0

 

Certain amounts in our release may not re-compute due to rounding. A reconciliation of non-GAAP to GAAP financial measures, and third quarter and full-year guidance, are included in the financial schedules.

Conference Call Information

Vocera Communications will host a conference call at 5 p.m. ET (2 p.m. PT) today, July 25, 2019, 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 833-238-7944, or 647-689-4192 for international callers, and using the access code 3976192.

A webcast replay of the call will be archived at investors.vocera.com.

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 our expected operating results for the third quarter and full year 2019. 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, 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 achieve anticipated strategic or financial benefits from our acquisitions; 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 manufacturers; our ability to develop and introduce new solutions and features to existing solutions and to manage our growth; the impact of tax law reform on us or our customers; and the other factors described in our most recently filed 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 second quarter of 2019, 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 income/(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 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) 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 among 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.

d) 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:

The mission of Vocera Communications, Inc. is to simplify and improve the lives of healthcare professionals and patients, while enabling hospitals to enhance quality of care and operational efficiency. In 2000, when the company was founded, we began to forever change the way care teams communicate. Today, Vocera offers the leading platform for improving clinical communication and workflow. More than 1,850 facilities worldwide, including nearly 1,600 hospitals and healthcare facilities, have selected our clinical communication and workflow solutions. Care team members use our solutions to communicate and collaborate with co-workers by securely texting or calling, and to be notified of important alerts and alarms. They can choose the right device for their role or task, including smartphones or our hands-free, wearable Vocera Smartbadge and Vocera Badge. Interoperability between the Vocera Platform and more than 140 clinical and operational systems helps reduce alarm fatigue; speed up staff response times; and improve patient care, safety, and experience. In addition to healthcare, Vocera is at home in luxury hotels, aged care facilities, nuclear power facilities, schools, libraries, retail stores, and more. Vocera solutions make a difference in any industry where workers are on the move and need to connect instantly with team members and access resources or information quickly. In 2017, Vocera made the list of Forbes 100 Most Trustworthy Companies in America. Learn more at www.vocera.com , and follow @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.

Vocera Communications, Inc.

Condensed Consolidated Statements of Operations

(In Thousands, Except Per Share Amounts)

(Unaudited)

 

 

Three months ended June 30,

 

Six months ended June 30,

 

2019

 

2018

 

2019

 

2018

Revenue

 

 

 

 

 

 

 

Product

$

23,132

 

 

$

21,824

 

 

$

37,135

 

 

$

42,911

 

Service

21,627

 

 

20,862

 

 

42,933

 

 

40,017

 

Total revenue

44,759

 

 

42,686

 

 

80,068

 

 

82,928

 

Cost of revenue

 

 

 

 

 

 

 

Product

6,912

 

 

6,683

 

 

12,246

 

 

13,028

 

Service

10,831

 

 

10,352

 

 

21,121

 

 

20,348

 

Total cost of revenue

17,743

 

 

17,035

 

 

33,367

 

 

33,376

 

Gross profit

27,016

 

 

25,651

 

 

46,701

 

 

49,552

 

Operating expenses

 

 

 

 

 

 

 

Research and development

8,943

 

 

7,323

 

 

17,089

 

 

14,637

 

Sales and marketing

15,478

 

 

15,266

 

 

31,497

 

 

30,288

 

General and administrative

6,535

 

 

6,176

 

 

13,115

 

 

12,535

 

Total operating expenses

30,956

 

 

28,765

 

 

61,701

 

 

57,460

 

Loss from operations

(3,940

)

 

(3,114

)

 

(15,000

)

 

(7,908

)

Interest income

1,332

 

 

530

 

 

2,611

 

 

745

 

Interest expense

(2,170

)

 

(997

)

 

(4,291

)

 

(997

)

Other expense, net

(159

)

 

(528

)

 

(28

)

 

(807

)

Loss before income taxes

(4,937

)

 

(4,109

)

 

(16,708

)

 

(8,967

)

Benefit from income taxes

80

 

 

555

 

 

116

 

 

643

 

Net loss

$

(4,857

)

 

$

(3,554

)

 

$

(16,592

)

 

$

(8,324

)

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

Basic

$

(0.16

)

 

$

(0.12

)

 

$

(0.53

)

 

$

(0.28

)

Diluted

$

(0.16

)

 

$

(0.12

)

 

$

(0.53

)

 

$

(0.28

)

Weighted average shares used to compute net loss per share

 

 

 

 

 

 

 

Basic

31,242

 

 

29,867

 

 

31,022

 

 

29,673

 

Diluted

31,242

 

 

29,867

 

 

31,022

 

 

29,673

 

Vocera Communications, Inc.

Condensed Consolidated Balance Sheets

(In Thousands)

(Unaudited)

 

 

June 30,
2019

 

December 31,
2018

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

44,901

 

 

$

34,276

 

Short-term investments

170,487

 

 

186,894

 

Accounts receivable, net of allowance

29,702

 

 

40,127

 

Other receivables

5,578

 

 

4,148

 

Inventories

5,184

 

 

4,350

 

Prepaid expenses and other current assets

4,938

 

 

4,691

 

Total current assets

260,790

 

 

274,486

 

Property and equipment, net

7,422

 

 

7,468

 

Intangible assets, net

7,038

 

 

9,070

 

Goodwill

49,246

 

 

49,246

 

Deferred commissions

9,918

 

 

10,303

 

Other long-term assets

7,189

 

 

1,525

 

Total assets

$

341,603

 

 

$

352,098

 

Liabilities and stockholders' equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

3,378

 

 

$

4,217

 

Accrued payroll and other current liabilities

12,902

 

 

12,885

 

Deferred revenue, current

42,303

 

 

44,053

 

Total current liabilities

58,583

 

 

61,155

 

Deferred revenue, long-term

10,302

 

 

14,579

 

Convertible senior notes, net

113,759

 

 

110,540

 

Other long-term liabilities

6,479

 

 

2,957

 

Total liabilities

189,123

 

 

189,231

 

Stockholders' equity

152,480

 

 

162,867

 

Total liabilities and stockholders’ equity

$

341,603

 

 

$

352,098

 

Vocera Communications, Inc.

Three months ended June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2019

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2019

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)

Revenue

 

 

 

 

 

 

 

 

 

 

 

Product

$

23,132

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

23,132

 

Service

21,627

 

 

 

 

 

 

 

 

 

 

21,627

 

Total revenue

44,759

 

 

 

 

 

 

 

 

 

 

44,759

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

Product

6,912

 

 

172

 

 

573

 

 

 

 

745

 

 

6,167

 

Service

10,831

 

 

1,006

 

 

 

 

 

 

1,006

 

 

9,825

 

Total cost of revenue

17,743

 

 

1,178

 

 

573

 

 

 

 

1,751

 

 

15,992

 

Gross profit

$

27,016

 

 

$

1,178

 

 

$

573

 

 

$

 

 

$

1,751

 

 

$

28,767

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2019

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2019

Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

8,943

 

 

$

1,034

 

 

$

 

 

$

 

 

$

1,034

 

 

$

7,909

 

Sales and marketing

15,478

 

 

1,758

 

 

368

 

 

 

 

2,126

 

 

13,352

 

General and administrative

6,535

 

 

2,139

 

 

39

 

 

 

 

2,178

 

 

4,357

 

Total operating expenses

$

30,956

 

 

$

4,931

 

 

$

407

 

 

$

 

 

$

5,338

 

 

$

25,618

 

 

 

(a)

This adjustment reflects the accounting impact of non-cash stock-based compensation expense.

(b)

This adjustment reflects the accounting impact of acquisitions in 2014 and 2016 in non-cash expense.

(c)

This adjustment reflects the costs associated with the acquisition in 2016.

Three months ended June 30, 2018

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2018

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2018

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)

Revenue

 

 

 

 

 

 

 

 

 

 

 

Product

$

21,824

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

21,824

 

Service

20,862

 

 

 

 

 

 

 

 

 

 

20,862

 

Total revenue

42,686

 

 

 

 

 

 

 

 

 

 

42,686

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

Product

6,683

 

 

139

 

 

626

 

 

 

 

765

 

 

5,918

 

Service

10,352

 

 

827

 

 

 

 

60

 

 

887

 

 

9,465

 

Total cost of revenue

17,035

 

 

966

 

 

626

 

 

60

 

 

1,652

 

 

15,383

 

Gross profit

$

25,651

 

 

$

966

 

 

$

626

 

 

$

60

 

 

$

1,652

 

 

$

27,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2018

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2018

Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

7,323

 

 

$

755

 

 

$

 

 

$

 

 

$

755

 

 

$

6,568

 

Sales and marketing

15,266

 

 

1,655

 

 

378

 

 

 

 

2,033

 

 

13,233

 

General and administrative

6,176

 

 

2,020

 

 

39

 

 

(166

)

 

1,893

 

 

4,283

 

Total operating expenses

$

28,765

 

 

$

4,430

 

 

$

417

 

 

$

(166

)

 

$

4,681

 

 

$

24,084

 

(a)

This adjustment reflects the accounting impact of non-cash stock-based compensation expense.

(b)

This adjustment reflects the accounting impact of acquisitions in 2014 and 2016 in non-cash expense.

(c)

This adjustment reflects the costs associated with the acquisition in 2016.

Vocera Communications, Inc.

Six months ended June 30, 2019

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2019

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2019

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)

Revenue

 

 

 

 

 

 

 

 

 

 

 

Product

$

37,135

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

37,135

 

Service

42,933

 

 

 

 

 

 

 

 

 

 

42,933

 

Total revenue

80,068

 

 

 

 

 

 

 

 

 

 

80,068

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

Product

12,246

 

 

309

 

 

1,183

 

 

 

 

1,492

 

 

10,754

 

Service

21,121

 

 

1,847

 

 

 

 

 

 

1,847

 

 

19,274

 

Total cost of revenue

33,367

 

 

2,156

 

 

1,183

 

 

 

 

3,339

 

 

30,028

 

Gross profit

$

46,701

 

 

$

2,156

 

 

$

1,183

 

 

$

 

 

$

3,339

 

 

$

50,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2019

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2019

Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

17,089

 

 

$

1,856

 

 

$

 

 

$

 

 

$

1,856

 

 

$

15,233

 

Sales and marketing

31,497

 

 

3,478

 

 

737

 

 

 

 

4,215

 

 

27,282

 

General and administrative

13,115

 

 

4,163

 

 

78

 

 

 

 

4,241

 

 

8,874

 

Total operating expenses

$

61,701

 

 

$

9,497

 

 

$

815

 

 

$

 

 

$

10,312

 

 

$

51,389

 

(a)

This adjustment reflects the accounting impact of non-cash stock-based compensation expense.

(b)

This adjustment reflects the accounting impact of acquisitions in 2014 and 2016 in non-cash expense.

(c)

This adjustment reflects the costs associated with the acquisition in 2016.

Six months ended June 30, 2018

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2018

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2018

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)

Revenue

 

 

 

 

 

 

 

 

 

 

 

Product

$

42,911

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

42,911

 

Service

40,017

 

 

 

 

 

 

 

 

 

 

40,017

 

Total revenue

82,928

 

 

 

 

 

 

 

 

 

 

82,928

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

Product

13,028

 

 

240

 

 

1,454

 

 

 

 

1,694

 

 

11,334

 

Service

20,348

 

 

1,473

 

 

 

 

120

 

 

1,593

 

 

18,755

 

Total cost of revenue

33,376

 

 

1,713

 

 

1,454

 

 

120

 

 

3,287

 

 

30,089

 

Gross profit

$

49,552

 

 

$

1,713

 

 

$

1,454

 

 

$

120

 

 

$

3,287

 

 

$

52,839

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

14,637

 

 

$

1,362

 

 

$

 

 

$

 

 

$

1,362

 

 

$

13,275

 

Sales and marketing

30,288

 

 

3,151

 

 

756

 

 

 

 

3,907

 

 

26,381

 

General and administrative

12,535

 

 

3,757

 

 

84

 

 

30

 

 

3,871

 

 

8,664

 

Total operating expenses

$

57,460

 

 

$

8,270

 

 

$

840

 

 

$

30

 

 

$

9,140

 

 

$

48,320

 

(a)

This adjustment reflects the accounting impact of non-cash stock-based compensation expense.

(b)

This adjustment reflects the accounting impact of acquisitions in 2014 and 2016 in non-cash expense.

(c)

This adjustment reflects the costs associated with the acquisition in 2016.

Vocera Communications, Inc.

Non-GAAP Net income and net income per share and Adjusted EBITDA

(In thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

2019

 

2018

 

2019

 

2018

GAAP net loss

$

(4,857

)

 

$

(3,554

)

 

$

(16,592

)

 

$

(8,324

)

Add back:

 

 

 

 

 

 

 

Stock compensation expense

6,109

 

 

5,396

 

 

11,653

 

 

9,983

 

Acquisition related expenses

 

 

(106

)

 

 

 

150

 

Interest income

(1,320

)

 

(514

)

 

(2,586

)

 

(703

)

Interest expense

2,170

 

 

997

 

 

4,291

 

997

 

Depreciation and amortization expense

1,907

 

 

1,809

 

 

3,797

 

 

3,776

 

Benefit from income taxes

(80

)

 

(555

)

 

(116

)

 

(643

)

Non-GAAP adjusted EBITDA

$

3,929

 

 

$

3,473

 

 

$

447

 

 

$

5,236

 

 

 

 

 

 

 

 

 

GAAP net loss

$

(4,857

)

 

$

(3,554

)

 

$

(16,592

)

 

$

(8,324

)

Add back:

 

 

 

 

 

 

 

Stock compensation expense

6,109

 

 

5,396

 

 

11,653

 

 

9,983

 

Intangible amortization

980

 

 

1,043

 

 

1,998

 

 

2,294

 

Acquisition related expenses

 

 

(106

)

 

 

 

150

 

Non-GAAP net income (loss)

$

2,232

 

 

$

2,779

 

 

$

(2,941

)

 

$

4,103

 

Non-GAAP net income (loss) per share

 

 

 

 

 

 

 

Basic

$

0.07

 

 

$

0.09

 

 

$

(0.09

)

 

$

0.14

 

Diluted

$

0.07

 

 

$

0.09

 

 

$

(0.09

)

 

$

0.13

 

Weighted average shares used to compute non-GAAP net income (loss) per share

 

 

 

 

 

 

 

Basic

31,242

 

 

29,867

 

 

31,022

 

 

29,673

 

Diluted

32,105

 

 

31,038

 

 

31,962

 

 

30,910

 

Vocera Communications, Inc.

Future guidance for operating results

(In millions, except per share amounts)

 

Reconciliation for GAAP to Non-GAAP for net income (loss) and net income (loss) per share

 

 

 

Three months ended
September 30, 2019

 

Year ended
December 31, 2019

 

Low

 

High

 

Low

 

High

Revenue

$

48.0

 

 

$

52.0

 

 

$

182.0

 

 

$

190.0

 

GAAP net income (loss)

(2.9

)

 

(0.1

)

 

(18.2

)

 

(13.2

)

Stock compensation expense

6.5

 

 

6.2

 

 

25.0

 

 

24.0

 

Intangible amortization expense

1.0

 

 

1.0

 

 

4.0

 

 

4.0

 

Total adjustments

7.5

 

 

7.2

 

 

29.0

 

 

28.0

 

Non-GAAP net income

$

4.6

 

 

$

7.1

 

 

$

10.8

 

 

$

14.8

 

Weighted average shares (in thousands)

 

 

 

 

 

 

 

Basic

31,500

 

 

31,500

 

 

31,300

 

 

31,300

 

Diluted - GAAP

31,500

 

 

31,500

 

 

31,300

 

 

31,300

 

Diluted

32,700

 

 

32,700

 

 

32,400

 

 

32,400

 

 

 

 

 

 

 

 

 

GAAP net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

(0.09

)

 

$

0.00

 

 

$

(0.58

)

 

$

(0.42

)

Diluted

$

(0.09

)

 

$

0.00

 

 

$

(0.58

)

 

$

(0.42

)

Non-GAAP net income per share :

 

 

 

 

 

 

 

Basic

$

0.15

 

 

$

0.23

 

 

$

0.35

 

 

$

0.47

 

Diluted

$

0.14

 

 

$

0.22

 

 

$

0.33

 

 

$

0.46

 

Reconciliation of Non-GAAP net income (loss) to adjusted EBITDA

 

 

 

Three months ended
September 30, 2019

 

Year ended
December 31, 2019

 

Low

 

High

 

Low

 

High

Non-GAAP net income

$

4.6

 

 

$

7.1

 

 

$

10.8

 

 

$

14.8

 

Interest expense, net

1.0

 

 

1.0

 

 

3.7

 

 

3.7

 

Depreciation expense

1.1

 

 

1.1

 

 

4.0

 

 

4.0

 

Provision for income taxes

0.3

 

 

0.3

 

 

0.5

 

 

0.5

 

Total adjustments

2.4

 

 

2.4

 

 

8.2

 

 

8.2

 

Adjusted EBITDA

$

7.0

 

 

$

9.5

 

 

$

19.0

 

 

$

23.0

 

* Amounts may not recompute due to rounding.

Investors:
Sue Dooley
Vocera Communications, Inc.
408.882.5971
investorrelations@vocera.com

Media:
Philip Anast
Amendola Communications
312.576.6990
panast@acmarketingpr.com

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