Vocera Announces Second Quarter Revenue of $38.5 Million | Vocera

Vocera Announces Second Quarter Revenue of $38.5 Million

Thursday, July 27, 2017

SAN JOSE, Calif. - July 27, 2017 - Vocera Communications, Inc. (NYSE: VCRA), a recognized leader in clinical communication and workflow solutions, today reported total revenue of $38.5 million for the second quarter of 2017, an increase of 23% compared to revenue of $31.2 million in the second quarter of 2016.

"Vocera's second quarter results completed a great first half to the year.  This was the fifth quarter in a row in which we achieved revenue growth of over 20%," said Vocera's CEO, Brent Lang.  "Our platform, which now includes the Engage software, continues to have significant impact in the market with sizable new customer wins. Overall, demand for our products is rising and our second quarter results reflect a market that is driving hospitals to become more efficient and patient-focused."

Second quarter of 2017 financial highlights include:

  • Total revenue of $38.5 million, up 23% year-over-year
  • GAAP loss per share of $(0.26); non-GAAP loss per share of $(0.03)
  • GAAP net loss of $(7.4) million; Adjusted EBITDA of $0.1 million
  • Deferred revenue of $56.8 million as of June 30, 2017
  • Cash, cash equivalents and short-term investments of $71.3 million as of June 30, 2017; no debt

 

Second Quarter 2017 Results
Total revenue for the second quarter of 2017 was $38.5 million, compared to $31.2 million in the second quarter of 2016.

(in thousands)

Three months ended June 30,

 

2017

 

2016

 

% change

Product revenue

 

 

 

 

 

Device

$

14,837

 

 

$

12,031

 

 

23.3

%

Software

5,821

 

 

5,671

 

 

2.6

 

Total product

$

20,658

 

 

$

17,702

 

 

16.7

%

 

 

 

 

 

 

Service revenue

 

 

 

 

 

Maintenance and support

$

12,583

 

 

$

10,573

 

 

19.0

%

Professional services and training

5,209

 

 

2,877

 

 

81.1

 

Total service

17,792

 

 

13,450

 

 

32.3

 

Total revenue

$

38,450

 

 

$

31,152

 

 

23.4

%

 

GAAP gross margin for the second quarter of 2017 was 56.4%, compared to 61.2% in the second quarter of 2016. Gross margin reflects the added cost of revenues related to the Extension Healthcare acquisition.

 

Three months ended June 30,

 

2017

 

2016

Gross margin

 

 

 

Product

67.0

%

 

66.4

%

Service

44.0

 

 

54.4

 

Total gross margin

56.4

%

 

61.2

%

 

 

 

 

Non-GAAP gross margin

 

 

 

Product

71.5

%

 

67.1

%

Service

48.5

 

 

56.3

 

Total non-GAAP gross margin

60.9

%

 

62.5

%

GAAP net loss for the second quarter of 2017 was $(7.4) million, or $(0.26) per share, compared to $(2.7) million, or $(0.10) per share in the second quarter of 2016.

 

Three months ended June 30,

(in thousands except per share amounts)

2017

 

2016

Net loss

$

(7,351

)

 

$

(2,706

)

Net loss per share

$

(0.26

)

 

$

(0.10

)

Non-GAAP net income (loss)

$

(895

)

 

$

625

 

Non-GAAP net income (loss) per share

$

(0.03

)

 

$

0.02

 

Adjusted EBITDA

$

95

 

 

$

1,026

 

 

Deferred revenue at June 30, 2017, was $56.8 million compared to $55.0 million at December 31, 2016. Cash equivalents and short-term investments were $71.3 million at June 30, 2017 and $74.1 million at December 31, 2016. The Company continues to have a strong balance sheet with no debt.

Full Year and Third Quarter 2017 Guidance
For the full-year 2017, the Company expects revenue between $157 million and $162 million and a GAAP loss per share between $(0.74) and $(0.56). The Company expects non-GAAP net income per share to be between $0.08 and $0.22 and non-GAAP Adjusted EBITDA to be between $6.5 million and $10.5 million.

For the third quarter of 2017, the Company expects revenue between $40.0 million and $42.0 million and a GAAP loss per share between $(0.15) and $(0.10). The Company also expects non-GAAP net income per share to be between $0.06 and $0.11 and non-GAAP Adjusted EBITDA to be between $2.8 million and $4.3 million.

(in millions except per share amounts)

Q3'17

 

FY'17

 

Low

 

High

 

Low

 

High

Revenue

$

40.0

 

 

$

42.0

 

 

$

157.0

 

 

$

162.0

 

Loss per share

$

(0.15

)

 

$

(0.10

)

 

$

(0.74

)

 

$

(0.56

)

Diluted non-GAAP net income per share

$

0.06

 

 

$

0.11

 

 

$

0.08

 

 

$

0.22

 

Adjusted EBITDA

$

2.8

 

 

$

4.3

 

 

$

6.5

 

 

$

10.5

 

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 27, 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 877-201-0168, or 647-788-4901 for international callers, and using the access code 36246031.

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 statements regarding future events, such as our ability to continue execute on our business plans and strategies and our expected operating results for the third 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 second quarter of 2017, 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 Òcore operating resultsÓ 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) 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 continues to offer the leading platform for clinical communication and workflow. More than 1,400 hospitals and health systems around the world, have selected our solutions for care teams to text securely using smartphones or make calls with our hands-free, wearable Vocera Badge. Interoperability between Vocera and more than 120 clinical 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, nuclear facilities, libraries, retail stores and more. Vocera makes 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. 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.

Contacts:

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

Media: Tara Stultz
Amendola Communications
440.225.9595
tstultz@acmarketingpr.com


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,

 

2017

 

2016

 

2017

 

2016

Revenue

 

 

 

 

 

 

 

Product

$

20,658

 

 

$

17,702

 

 

$

40,691

 

 

$

31,504

 

Service

17,792

 

 

13,450

 

 

34,054

 

 

26,425

 

Total revenue

38,450

 

 

31,152

 

 

74,745

 

 

57,929

 

Cost of revenue

 

 

 

 

 

 

 

Product

6,807

 

 

5,944

 

 

13,216

 

 

10,393

 

Service

9,962

 

 

6,134

 

 

19,117

 

 

11,784

 

Total cost of revenue

16,769

 

 

12,078

 

 

32,333

 

 

22,177

 

Gross profit

21,681

 

 

19,074

 

 

42,412

 

 

35,752

 

Operating expenses

 

 

 

 

 

 

 

Research and development

7,371

 

 

4,428

 

 

14,300

 

 

8,400

 

Sales and marketing

15,377

 

 

12,747

 

 

29,958

 

 

24,773

 

General and administrative

5,984

 

 

4,625

 

 

11,679

 

 

8,961

 

Total operating expenses

28,732

 

 

21,800

 

 

55,937

 

 

42,134

 

Loss from operations

(7,051

)

 

(2,726

)

 

(13,525

)

 

(6,382

)

Interest income

128

 

 

199

 

 

233

 

 

377

 

Other income (expense), net

(67

)

 

(137

)

 

42

 

 

(151

)

Loss before income taxes

(6,990

)

 

(2,664

)

 

(13,250

)

 

(6,156

)

Provision for income taxes

(361

)

 

(42

)

 

(741

)

 

(134

)

Net loss

$

(7,351

)

 

$

(2,706

)

 

$

(13,991

)

 

$

(6,290

)

 

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

 

     Basic and diluted

$

(0.26

)

 

$

(0.10

)

 

$

(0.50

)

 

$

(0.24

)

Weighted average shares used to compute net loss per share

 

 

 

 

 

 

 

     Basic and diluted

28,422

 

 

26,624

 

 

28,088

 

 

26,501

 

 


Vocera Communications, Inc.

Condensed Consolidated Balance Sheets

(In Thousands)

(Unaudited)

 

June 30,
 2017

 

December 31,
 2016

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

31,558

 

 

$

35,033

 

Short-term investments

39,715

 

 

39,033

 

Accounts receivable, net of allowance

25,043

 

 

24,142

 

Other receivables

1,152

 

 

1,211

 

Inventories

3,512

 

 

4,556

 

Prepaid expenses and other current assets

4,118

 

 

3,364

 

Total current assets

105,098

 

 

107,339

 

Property and equipment, net

6,499

 

 

5,894

 

Intangible assets, net

15,827

 

 

18,200

 

Goodwill

49,246

 

 

49,246

 

Other long-term assets

1,461

 

 

1,394

 

Total assets

$

178,131

 

 

$

182,073

 

Liabilities and stockholders' equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

2,905

 

 

$

3,231

 

Accrued payroll and other current liabilities

14,961

 

 

15,896

 

Deferred revenue, current

39,349

 

 

43,845

 

Total current liabilities

57,215

 

 

62,972

 

Deferred revenue, long-term

17,425

 

 

11,155

 

Other long-term liabilities

4,625

 

 

4,505

 

Total liabilities

79,265

 

 

78,632

 

Stockholders' equity

98,866

 

 

103,441

 

Total liabilities and stockholders' equity

$

178,131

 

 

$

182,073

 

 

 


Vocera Communications, Inc.

Three months ended June 30, 2017

 

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2017

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2017

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

Revenue

 

 

 

 

 

 

 

 

 

 

 

Product

$

20,658

 

 

 

 

 

 

 

 

 

 

 

$

 

 

 

$

20,658

 

Service

17,792

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,792

 

Total revenue

38,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,450

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

Product

6,807

 

 

125

 

 

801

 

 

 

 

 

926

 

 

5,881

 

Service

9,962

 

 

723

 

 

 

 

 

73

 

 

796

 

 

9,166

 

Total cost of revenue

16,769

 

 

848

 

 

801

 

 

73

 

 

1,722

 

 

15,047

 

Gross profit

$

21,681

 

 

$

848

 

 

$

801

 

 

$

73

 

 

$

1,722

 

 

$

23,403

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2017

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2017

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

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

7,371

 

 

$

623

 

 

$

 

 

 

$

12

 

 

$

635

 

 

$

6,736

 

Sales and marketing

15,377

 

 

1,779

 

 

384

 

 

7

 

 

2,170

 

 

13,207

 

General and administrative

5,984

 

 

1,653

 

 

56

 

 

220

 

 

1,929

 

 

4,055

 

Total operating expenses

$

28,732

 

 

$

4,055

 

 

$

440

 

 

$

239

 

 

$

4,734

 

 

$

23,998

 

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

(b)          This adjustment reflects the accounting impact of acquisitions in 2010, 2014 and 2016 in non-cash expense.

(c)          This adjustment reflects the costs associated with the acquisition in 2016.

 

Three months ended June 30, 2016

 

 

 

Stock

 

Intangible

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

Total

 

Non-GAAP

 

2016

 

expense (a)

 

(b)

 

adjustments

 

2016

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

Revenue

 

 

 

 

 

 

 

 

 

Product

$

17,702

 

 

 

 

 

 

 

 

$

 

 

 

$

17,702

 

Service

13,450

 

 

 

 

 

 

 

 

 

 

 

13,450

 

Total revenue

31,152

 

 

 

 

 

 

 

 

 

 

 

31,152

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Product

5,944

 

 

66

 

 

59

 

 

125

 

 

5,819

 

Service

6,134

 

 

258

 

 

 

 

 

258

 

 

5,876

 

Total cost of revenue

12,078

 

 

324

 

 

59

 

 

383

 

 

11,695

 

Gross profit

19,074

 

 

324

 

 

59

 

 

383

 

 

19,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Intangible

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

Total

 

Non-GAAP

 

2016

 

expense (a)

 

(b)

 

adjustments

 

2016

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

 

 

 

 

 

 

 

 

 

 

Research and development

4,428

 

 

304

 

 

 

 

 

304

 

 

4,124

 

Sales and marketing

12,747

 

 

1,278

 

 

46

 

 

1,324

 

 

11,423

 

General and administrative

4,625

 

 

1,239

 

 

81

 

 

1,320

 

 

3,305

 

Total operating expenses

21,800

 

 

2,821

 

 

127

 

 

2,948

 

 

18,852

 

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

(b)          This adjustment reflects the accounting impact of acquisitions in 2010 and 2014 in non-cash expense.


Vocera Communications, Inc.

Six months ended June 30, 2017

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2017

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2017

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

Revenue

 

 

 

 

 

 

 

 

 

 

 

Product

$

40,691

 

 

 

 

 

 

 

 

$

 

 

 

$

40,691

 

Service

34,054

 

 

 

 

 

 

 

 

 

 

 

34,054

 

Total revenue

74,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

74,745

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

Product

13,216

 

 

191

 

 

1,493

 

 

 

 

1,684

 

 

11,532

 

Service

19,117

 

 

1,177

 

 

 

 

 

169

 

 

1,346

 

 

17,771

 

Total cost of revenue

32,333

 

 

1,368

 

 

1,493

 

 

169

 

 

3,030

 

 

29,303

 

Gross profit

$

42,412

 

 

$

(1,368

)

 

$

(1,493

)

 

$

(169

)

 

$

(3,030

)

 

$

45,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock

 

Intangible

 

Acquisition

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

related

 

Total

 

Non-GAAP

 

2017

 

expense (a)

 

(b)

 

expense (c)

 

adjustments

 

2017

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

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

14,300

 

 

$

1,035

 

 

$

 

 

 

$

47

 

 

$

1,082

 

 

$

13,218

 

Sales and marketing

29,958

 

 

3,044

 

 

769

 

 

15

 

 

3,828

 

 

26,130

 

General and administrative

11,679

 

 

3,039

 

 

111

 

 

491

 

 

3,641

 

 

8,038

 

Total operating expenses

$

55,937

 

 

$

7,118

 

 

$

880

 

 

$

553

 

 

$

8,551

 

 

$

47,386

 

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

(b)             This adjustment reflects the accounting impact of acquisitions in 2010, 2014 and 2016 in non-cash expense.

(c)             This adjustment reflects the costs associated with the acquisition in 2016.

 

Six months ended June 30, 2016

 

 

 

Stock

 

Intangible

 

 

 

 

(In thousands)

GAAP

 

compensation

 

amortization

 

Total

 

Non-GAAP

 

2016

 

expense (a)

 

(b)

 

adjustments

 

2016

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

Revenue

 

 

 

 

 

 

 

 

 

Product

$

31,504

 

 

 

 

 

 

$

 

 

 

$

31,504

 

Service

26,425

 

 

 

 

 

 

 

 

 

26,425

 

Total revenue

57,929

 

 

 

 

 

 

 

 

 

 

 

57,929

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Product

10,393

 

 

106

 

 

119

 

 

225

 

 

10,168

 

Service

11,784

 

 

487

 

 

 

 

 

487

 

 

11,297

 

Total cost of revenue

22,177

 

 

593

 

 

119

 

 

712

 

 

21,465

 

Gross profit

35,752

 

 

(593

)

 

(119

)

 

(712

)

 

36,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Research and development

8,400

 

 

530

 

 

 

 

 

530

 

 

7,870

 

Sales and marketing

24,773

 

 

2,288

 

 

92

 

 

2,380

 

 

22,393

 

General and administrative

8,961

 

 

2,280

 

 

161

 

 

2,441

 

 

6,520

 

Total operating expenses

42,134

 

 

5,098

 

 

253

 

 

5,351

 

 

36,783

 

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

(b)             This adjustment reflects the accounting impact of acquisitions in 2010 and 2014 in non-cash expense.


Vocera Communications, Inc.

 

 

 

 

Non-GAAP Net income (loss) and net income (loss) per share and Adjusted EBITDA

 

 

 

 

(In thousands, except per share amounts)

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

2017

 

2016

 

2017

 

2016

GAAP net loss

$

(7,351

)

 

$

(2,706

)

 

$

(13,991

)

 

$

(6,290

)

Add back:

 

 

 

 

 

 

 

Stock compensation expense

4,903

 

 

3,145

 

 

8,486

 

 

5,691

 

Acquisition related expenses

312

 

 

 

 

 

722

 

 

 

 

Interest income

(117

)

 

(185

)

 

(209

)

 

(350

)

Depreciation and amortization expense

1,987

 

 

730

 

 

3,791

 

 

1,456

 

Provision for income taxes

361

 

 

42

 

 

741

 

 

134

 

Non-GAAP adjusted EBITDA

$

95

 

 

$

1,026

 

 

$

(460

)

 

$

641

 

 

 

 

 

 

 

 

 

GAAP net loss

$

(7,351

)

 

$

(2,706

)

 

$

(13,991

)

 

$

(6,290

)

Add back:

 

 

 

 

 

 

 

Stock compensation expense

4,903

 

 

3,145

 

 

8,486

 

 

5,691

 

Intangible amortization

1,241

 

 

186

 

 

2,373

 

 

372

 

Acquisition related expenses

312

 

 

 

 

 

722

 

 

 

 

Non-GAAP net loss

$

(895

)

 

$

625

 

 

$

(2,410

)

 

$

(227

)

Net loss per share

 

 

 

 

 

 

 

     Basic

$

(0.03

)

 

$

0.02

 

 

$

(0.09

)

 

$

(0.01

)

     Diluted

$

(0.03

)

 

$

0.02

 

 

$

(0.09

)

 

$

(0.01

)

Weighted average shares used to compute net loss per share

 

 

 

 

 

 

 

     Basic

28,422

 

 

26,624

 

 

28,088

 

 

26,501

 

     Diluted

28,422

 

 

28,002

 

 

28,088

 

 

26,501

 

 


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

 

 

 

Q3-17

 

FY-17

 

Low

 

High

 

Low

 

High

Revenue

$

40.0

 

 

$

42.0

 

 

$

157.0

 

 

$

162.0

 

GAAP net loss

(4.5

)

 

(3.0

)

 

(21.2

)

 

(16.2

)

Stock compensation expense

4.6

 

 

4.6

 

 

17.5

 

 

16.5

 

Intangible amortization expense

1.2

 

 

1.2

 

 

4.8

 

 

4.8

 

Acquisition and restructuring expense

0.4

 

 

0.4

 

 

1.4

 

 

1.4

 

Total adjustments

6.2

 

 

6.2

 

 

23.7

 

 

22.7

 

Non-GAAP net income

$

1.8

 

 

$

3.3

 

 

$

2.5

 

 

$

6.5

 

Weighted average shares (in thousands)

 

 

 

 

 

 

 

Basic

29,250

 

 

29,250

 

 

28,750

 

 

28,750

 

Diluted - GAAP

29,250

 

 

29,250

 

 

28,750

 

 

28,750

 

    Diluted - Non-GAAP

30,250

 

 

30,250

 

 

30,000

 

 

30,000

 

 

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

$

(0.15

)

 

$

(0.10

)

 

$

(0.74

)

 

$

(0.56

)

 

 

 

 

 

 

 

 

Non-GAAP net income per share :

 

 

 

 

 

 

 

Basic

$

0.06

 

 

$

0.11

 

 

$

0.09

 

 

$

0.23

 

Diluted

$

0.06

 

 

$

0.11

 

 

$

0.08

 

 

$

0.22

 

 

 

 

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

 

 

 

 

 

Q3-17

 

FY-17

 

Low

 

High

 

Low

 

High

Non-GAAP net income

$

1.8

 

 

$

3.3

 

 

$

2.5

 

 

$

6.5

 

Interest income, net

(0.1

)

 

(0.1

)

 

(0.4

)

 

(0.4

)

Depreciation expense

0.7

 

 

0.7

 

 

2.8

 

 

2.8

 

Provision for income taxes

0.4

 

 

0.4

 

 

1.6

 

 

1.6

 

Total adjustments

1.0

 

 

1.0

 

 

4.0

 

 

4.0

 

Adjusted EBITDA

$

2.8

 

 

$

4.3

 

 

$

6.5

 

 

$

10.5

 

 

*     Amounts may not recompute due to rounding.

 
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