Press Release Details

Vocera Announces Fourth Quarter 2020 Financial Results

02/11/2021

SAN JOSE, Calif.--(BUSINESS WIRE)-- Vocera Communications, Inc. (NYSE: VCRA), a recognized leader in clinical communication and workflow solutions, today reported total revenue of $56.6 million for the fourth quarter of 2020, an increase of 14% compared to last year.

“We had an outstanding Q4. Strong execution by our enhanced sales organization and the rising priority of our solutions translated into excellent performance in our business across the board,” said Brent Lang, Chairman and CEO. “This year, we faced unprecedented challenges around the world and rallied as a company to deliver the best results in our history.”

Fourth quarter of 2020 financial highlights include:

  • Total revenue of $56.6 million, up 14% compared to $49.7 million last year
  • GAAP net income of $0.1 million compared to a GAAP net loss of $(1.7) million last year
  • Non-GAAP net income of $9.7 million compared to $4.9 million last year
  • Adjusted EBITDA of $13.1 million compared to $6.9 million last year
  • Full-year bookings were $233.3 million, up 17% year-over-year
  • Deferred revenue and backlog combined of $173.9 million as of December 31, 2020, an increase of 28% over last year

Fourth Quarter 2020 Results

Total revenue for the fourth quarter of 2020 was $56.6 million, an increase of 14% compared to last year.

(in thousands)

Three months ended December 31,

 

2020

 

2019

 

% change

Product revenue

 

 

 

 

 

Device

$

21,291

 

 

$

17,658

 

 

20.6

 

%

Software

8,965

 

 

9,257

 

 

(3.2

)

 

Total product

$

30,256

 

 

$

26,915

 

 

12.4

 

%

 

 

 

 

 

 

Service revenue

 

 

 

 

 

Subscription and support

$

21,082

 

 

$

17,987

 

 

17.2

 

%

Professional services and training

5,247

 

 

4,750

 

 

10.5

 

 

Total service

26,329

 

 

22,737

 

 

15.8

 

%

Total revenue

$

56,585

 

 

$

49,652

 

 

14.0

 

%

GAAP gross margin for the fourth quarter of 2020 was 68.1%, compared to 61.4% in the fourth quarter of 2019.

 

Three months ended December 31,

 

2020

 

2019

Gross margin

 

 

 

Product

74.9

%

 

68.1

%

Service

60.4

 

 

53.6

 

Total gross margin

68.1

%

 

61.4

%

 

 

 

 

Non-GAAP gross margin

 

 

 

Product

76.2

%

 

69.7

%

Service

63.6

 

 

57.6

 

Total non-GAAP gross margin

70.4

%

 

64.2

%

GAAP net income for the fourth quarter of 2020 was $0.1 million, or $0.00 per share, compared to GAAP net loss of $(1.7) million, or $(0.05) per share in the fourth quarter of 2019.

 

Three months ended December 31,

(in thousands except per share amounts)

2020

 

2019

 

Net income (loss)

$

121

 

$

(1,686

)

Net income (loss) per share

0.00

 

$

(0.05

)

Non-GAAP net income

$

9,724

 

$

4,947

 

Non-GAAP diluted net income per share

$

0.28

 

$

0.15

 

Adjusted EBITDA

$

13,077

 

$

6,926

 

Deferred revenue at December 31, 2020 was $64.7 million compared to $61.5 million at December 31, 2019. Cash, cash equivalents and short-term investments were $230.2 million at December 31, 2020 compared to $229.9 million at December 31, 2019.

Full Year 2021 Guidance

For the full-year 2021, the Company expects revenue between $215.0 million and $225.0 million and a GAAP loss per share between $(0.64) and $(0.44). The Company expects non-GAAP diluted earnings per share to be between $0.45 and $0.61 and non-GAAP Adjusted EBITDA to be between $30.0 million and $35.0 million.

 

FY’21

(in millions except per share amounts)

Low

 

High

Revenue

$

215.0

 

 

 

$

225.0

 

 

Loss per share

$

(0.64

)

 

 

$

(0.44

)

 

Non-GAAP diluted earnings per share

$

0.45

 

 

 

$

0.61

 

 

Adjusted EBITDA

$

30.0

 

 

 

$

35.0

 

 

Conference Call Information

Vocera Communications will host a conference call at 5 p.m. ET (2 p.m. PT) today, February 11, 2021, to discuss the Company’s results.

A free, live webcast of the conference call will be available on the Investors section of the company’s website at investors.vocera.com.

The call also can be accessed by dialing 833-968-2210, or +1 778-560-2808 for international callers, and using the access code 5559137.

A replay of the call will be archived after the event 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. 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, potential impacts of the COVID-19 pandemic on our operations, 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 fourth quarter of 2020, 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 diluted income/(loss) per share, non-GAAP operating expenses, non-GAAP other expense, net and non-GAAP benefit from (provision for) income taxes. 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 diluted income/(loss) per share, non-GAAP operating expenses, non-GAAP other expense, net, non-GAAP benefit from (provision for) income taxes, 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 2020, 2016, and 2014, 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) 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.

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, (ii) transition costs and (iii) non-cash tax adjustments. 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 and other transitional employee costs treated as compensation expense as well as the change in the fair value of contingent consideration payments payable to the selling shareholders. Non-cash tax adjustments includes the benefit received from releasing deferred tax assets reserves that were available to offset tax liabilities acquired through acquisition. 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.

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 are 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:

a) 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;

b) 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

c) 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:

a) 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.

b) 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, performance based 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, patients, and families while enabling hospitals to enhance quality of care and operational efficiency and humanize the healthcare experience. 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 2,100 facilities worldwide, including nearly 1,700 hospitals and healthcare facilities, have selected our 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. They can create a richer, more human connection for patients and their loved ones before, during, and after care using Vocera Ease applications. Interoperability between the Vocera Platform and more than 150 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 solutions are found in luxury hotels, aged care facilities, retail stores, schools, power facilities, libraries, and more. Vocera solutions make mobile workers safer and more effective by enabling them to connect instantly with other people and access resources or information quickly. Vocera has made the list of Forbes 100 Most Trustworthy Companies in America, and the Vocera Smartbadge was named to TIME’s list of the 100 Best Inventions of 2020. Learn more at www.vocera.com, and follow @VoceraComm and @VoceraEase on Twitter.

Vocera® and the Vocera logo are trademarks 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
December 31,

 

Year ended
December 31,

 

2020

 

2019

 

2020

 

2019

Revenue

 

 

 

 

 

 

 

Product

$

30,256

 

 

 

$

26,915

 

 

 

$

100,567

 

 

 

$

92,561

 

 

Service

26,329

 

 

 

22,737

 

 

 

97,853

 

 

 

87,940

 

 

Total revenue

56,585

 

 

 

49,652

 

 

 

198,420

 

 

 

180,501

 

 

Cost of revenue

 

 

 

 

 

 

 

Product

7,592

 

 

 

8,589

 

 

 

28,805

 

 

 

29,039

 

 

Service

10,435

 

 

 

10,553

 

 

 

40,998

 

 

 

42,363

 

 

Total cost of revenue

18,027

 

 

 

19,142

 

 

 

69,803

 

 

 

71,402

 

 

Gross profit

38,558

 

 

 

30,510

 

 

 

128,617

 

 

 

109,099

 

 

Operating expenses

 

 

 

 

 

 

 

Research and development

10,880

 

 

 

8,828

 

 

 

38,820

 

 

 

34,280

 

 

Sales and marketing

17,242

 

 

 

16,165

 

 

 

65,494

 

 

 

63,168

 

 

General and administrative

7,604

 

 

 

6,239

 

 

 

28,382

 

 

 

25,774

 

 

Total operating expenses

35,726

 

 

 

31,232

 

 

 

132,696

 

 

 

123,222

 

 

Income (Loss) from operations

2,832

 

 

 

(722

)

 

 

(4,079

)

 

 

(14,123

)

 

Interest income

491

 

 

 

1,200

 

 

 

3,169

 

 

 

5,110

 

 

Interest expense

(2,404

)

 

 

(2,265

)

 

 

(9,354

)

 

 

(8,789

)

 

Other income (expense), net

(523

)

 

 

15

 

 

 

(640

)

 

 

(158

)

 

Income (loss) before income taxes

396

 

 

 

(1,772

)

 

 

(10,904

)

 

 

(17,960

)

 

Benefit from (provision for) income taxes

(275

)

 

 

86

 

 

 

1,248

 

 

 

(20

)

 

Net income (loss)

$

121

 

 

 

$

(1,686

)

 

 

$

(9,656

)

 

 

$

(17,980

)

 

 

 

 

 

 

 

 

 

Income (loss) per share

 

 

 

 

 

 

 

Basic

$

0.00

 

 

 

$

(0.05

)

 

 

$

(0.30

)

 

 

$

(0.57

)

 

Diluted

$

0.00

 

 

 

$

(0.05

)

 

 

$

(0.30

)

 

 

$

(0.57

)

 

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

 

 

 

 

 

 

 

Basic

32,570

 

 

 

31,579

 

 

 

32,215

 

 

 

31,273

 

 

Diluted

34,670

 

 

 

31,579

 

 

 

32,215

 

 

 

31,273

 

 

 

Vocera Communications, Inc.

Condensed Consolidated Balance Sheets

(In Thousands)

(Unaudited)

 

 

December 31,
2020

 

December 31,
2019

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

34,976

 

 

$

25,704

 

Short-term investments

195,227

 

 

204,164

 

Accounts receivable, net of allowance

45,653

 

 

42,547

 

Other receivables

6,170

 

 

6,312

 

Inventories

10,159

 

 

4,576

 

Prepaid expenses and other current assets

6,317

 

 

5,149

 

Total current assets

298,502

 

 

288,452

 

Property and equipment, net

8,103

 

 

8,661

 

Intangible assets, net

12,788

 

 

5,461

 

Goodwill

69,168

 

 

49,246

 

Deferred commissions

12,293

 

 

10,477

 

Other long-term assets

5,967

 

 

8,158

 

Total assets

$

406,821

 

 

$

370,455

 

Liabilities and stockholders' equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

3,127

 

 

$

6,036

 

Accrued payroll and other current liabilities

23,195

 

 

14,757

 

Deferred revenue, current

54,785

 

 

50,033

 

Total current liabilities

81,107

 

 

70,826

 

Deferred revenue, long-term

9,948

 

 

11,442

 

Convertible senior notes, net

124,376

 

 

117,178

 

Other long-term liabilities

10,374

 

 

7,184

 

Total liabilities

225,805

 

 

206,630

 

Stockholders' equity

181,016

 

 

163,825

 

Total liabilities and stockholders’ equity

$

406,821

 

 

$

370,455

 

 

Vocera Communications, Inc.

Three months ended December 31, 2020

 

(In thousands)

GAAP
2020

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Restructuring
expense (c)

 

Acquisition
related
expense (d)

 

Total
adjustments

 

Non-GAAP
2020

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

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

$

30,256

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

30,256

 

Service

26,329

 

 

 

 

 

 

 

 

 

 

 

 

26,329

 

Total revenue

56,585

 

 

 

 

 

 

 

 

 

 

 

 

56,585

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

7,592

 

 

180

 

 

226

 

 

 

 

 

 

406

 

 

7,186

 

Service

10,435

 

 

852

 

 

 

 

 

 

 

 

852

 

 

9,583

 

Total cost of revenue

18,027

 

 

1,032

 

 

226

 

 

 

 

 

 

1,258

 

 

16,769

 

Gross profit

$

38,558

 

 

$

1,032

 

 

$

226

 

 

$

 

 

$

 

 

$

1,258

 

 

$

39,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP
2020

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Restructuring
expense (c)

 

Acquisition
related
expense (d)

 

Total
adjustments

 

Non-GAAP
2020

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

10,880

 

 

$

1,145

 

 

$

 

 

$

 

 

$

445

 

 

$

1,590

 

 

$

9,290

 

Sales and marketing

17,242

 

 

2,076

 

 

493

 

 

 

 

296

 

 

2,865

 

 

14,377

 

General and administrative

7,604

 

 

2,586

 

 

39

 

 

405

 

 

71

 

 

3,101

 

 

4,503

 

Total operating expenses

$

35,726

 

 

$

5,807

 

 

$

532

 

 

$

405

 

 

$

812

 

 

$

7,556

 

 

$

28,170

 

(a)

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

(b)

This adjustment reflects the accounting impact of acquisitions in 2020, 2016, and 2014 in non-cash expense.

(c)

This adjustment reflects costs associated with 2020 exit and disposal activities.

(d)

This adjustment reflects the costs associated with the acquisition in 2020.

 

Three months ended December 31, 2019

(In thousands)

GAAP
2019

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Total
adjustments

 

Non-GAAP
2019

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

Revenue

 

 

 

 

 

 

 

 

 

Product

$

26,915

 

 

$

 

 

$

 

 

$

 

 

$

26,915

 

Service

22,737

 

 

 

 

 

 

 

 

22,737

 

Total revenue

49,652

 

 

 

 

 

 

 

 

49,652

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Product

8,589

 

 

187

 

 

239

 

 

426

 

 

8,163

 

Service

10,553

 

 

923

 

 

 

 

923

 

 

9,630

 

Total cost of revenue

19,142

 

 

1,110

 

 

239

 

 

1,349

 

 

17,793

 

Gross profit

$

30,510

 

 

$

1,110

 

 

$

239

 

 

$

1,349

 

 

$

31,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP
2019

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Total
adjustments

 

Non-GAAP
2019

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

 

 

 

 

 

 

 

 

 

 

Research and development

$

8,828

 

 

$

1,077

 

 

$

 

 

$

1,077

 

 

$

7,751

 

Sales and marketing

16,165

 

 

1,728

 

 

313

 

 

2,041

 

 

14,124

 

General and administrative

6,239

 

 

2,128

 

 

38

 

 

2,166

 

 

4,073

 

Total operating expenses

$

31,232

 

 

$

4,933

 

 

$

351

 

 

$

5,284

 

 

$

25,948

 

(a)

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

(b)

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

 

Vocera Communications, Inc.

Year ended December 31, 2020

(In thousands)

GAAP
2020

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Restructuring
expense (c)

 

Acquisition
related
expense (d)

 

Total
adjustments

 

Non-GAAP
2020

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

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

$

100,567

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

100,567

 

Service

97,853

 

 

 

 

 

 

 

 

 

 

 

 

97,853

 

Total revenue

198,420

 

 

 

 

 

 

 

 

 

 

 

 

198,420

 

Cost of revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

28,805

 

 

690

 

 

351

 

 

 

 

 

 

1,041

 

 

27,764

 

Service

40,998

 

 

3,471

 

 

 

 

 

 

 

 

3,471

 

 

37,527

 

Total cost of revenue

69,803

 

 

4,161

 

 

351

 

 

 

 

 

 

4,512

 

 

65,291

 

Gross profit

$

128,617

 

 

$

4,161

 

 

$

351

 

 

 

 

$

 

 

$

4,512

 

 

$

133,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP
2020

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Restructuring
expense (c)

 

Acquisition
related
expense (d)

 

Total
adjustments

 

Non-GAAP
2020

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

$

38,820

 

 

$

4,180

 

 

$

 

 

$

 

 

$

667

 

 

$

4,847

 

 

$

33,973

 

Sales and marketing

65,494

 

 

7,934

 

 

1,405

 

 

 

 

444

 

 

9,783

 

 

55,711

 

General and administrative

28,382

 

 

9,450

 

 

157

 

 

405

 

 

556

 

 

10,568

 

 

17,814

 

Total operating expenses

$

132,696

 

 

$

21,564

 

 

$

1,562

 

 

$

405

 

 

$

1,667

 

 

$

25,198

 

 

$

107,498

 

(a)

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

(b)

This adjustment reflects the accounting impact of acquisitions in 2020, 2016, and 2014 in non-cash expense.

(c)

This adjustment reflects costs associated with 2020 exit and disposal activities.

(d)

This adjustment reflects the costs associated with the acquisition in 2020.

 

Year ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP
2019

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Total
adjustments

 

Non-GAAP

2019

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

Revenue

 

 

 

 

 

 

 

 

 

Product

$

92,561

 

 

$

 

 

$

 

 

$

 

 

$

92,561

 

Service

87,940

 

 

 

 

 

 

 

 

87,940

 

Total revenue

180,501

 

 

 

 

 

 

 

 

180,501

 

Cost of revenue

 

 

 

 

 

 

 

 

 

Product

29,039

 

 

689

 

 

2,001

 

 

2,690

 

 

26,349

 

Service

42,363

 

 

3,752

 

 

 

 

3,752

 

 

38,611

 

Total cost of revenue

71,402

 

 

4,441

 

 

2,001

 

 

6,442

 

 

64,960

 

Gross profit

$

109,099

 

 

$

4,441

 

 

$

2,001

 

 

$

6,442

 

 

$

115,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

GAAP
2019

 

Stock
compensation
expense (a)

 

Intangible
amortization
(b)

 

Total
adjustments

 

Non-GAAP
2019

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

 

 

 

 

 

 

 

 

 

 

Research and development

$

34,280

 

 

$

3,955

 

 

$

 

 

$

3,955

 

 

$

30,325

 

Sales and marketing

63,168

 

 

7,014

 

 

1,418

 

 

8,432

 

 

54,736

 

General and administrative

25,774

 

 

8,455

 

 

156

 

 

8,611

 

 

17,163

 

Total operating expenses

$

123,222

 

 

$

19,424

 

 

$

1,574

 

 

$

20,998

 

 

$

102,224

 

(a)

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

(b)

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

 

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
December 31,

 

Year ended
December 31,

 

2020

 

2019

 

2020

 

2019

GAAP net income (loss)

$

121

 

 

 

$

(1,686

)

 

 

$

(9,656

)

 

 

$

(17,980

)

 

Add back:

 

 

 

 

 

 

 

Stock compensation expense

6,839

 

 

 

6,043

 

 

 

25,725

 

 

 

23,865

 

 

Restructuring expense

405

 

 

 

 

 

 

405

 

 

 

 

 

Acquisition related expenses

812

 

 

 

 

 

 

1,667

 

 

 

 

 

Other expense, net (a)

789

 

 

 

 

 

 

797

 

 

 

 

 

Benefit for income taxes (b)

 

 

 

 

 

 

(2,056

)

 

 

 

 

Interest income

(485

)

 

 

(1,191

)

 

 

(3,140

)

 

 

(5,065

)

 

Interest expense

2,404

 

 

 

2,265

 

 

 

9,354

 

 

 

8,789

 

 

Depreciation and amortization expense

1,917

 

 

 

1,581

 

 

 

6,387

 

 

 

7,289

 

 

Provision for (benefit from) income taxes

275

 

 

 

(86

)

 

 

808

 

 

 

20

 

 

Non-GAAP adjusted EBITDA

$

13,077

 

 

 

$

6,926

 

 

 

$

30,291

 

 

 

$

16,918

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

$

121

 

 

 

$

(1,686

)

 

 

$

(9,656

)

 

 

$

(17,980

)

 

Add back:

 

 

 

 

 

 

 

Stock compensation expense

6,839

 

 

 

6,043

 

 

 

25,725

 

 

 

23,865

 

 

Intangible amortization

758

 

 

 

590

 

 

 

1,913

 

 

 

3,575

 

 

Restructuring expense

405

 

 

 

 

 

 

405

 

 

 

 

 

Acquisition related expenses

812

 

 

 

 

 

 

1,667

 

 

 

 

 

Other expense, net (a)

789

 

 

 

 

 

 

797

 

 

 

 

 

Benefit for income taxes (b)

 

 

 

 

 

 

(2,056

)

 

 

 

 

Non-GAAP net income

$

9,724

 

 

 

$

4,947

 

 

 

$

18,795

 

 

 

$

9,460

 

 

Non-GAAP net income per share

 

 

 

 

 

 

 

Basic

$

0.30

 

 

 

$

0.16

 

 

 

$

0.58

 

 

 

$

0.30

 

 

Diluted

$

0.28

 

 

 

$

0.15

 

 

 

$

0.57

 

 

 

$

0.30

 

 

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

 

 

 

 

 

 

 

Basic

32,570

 

 

 

31,579

 

 

 

32,215

 

 

31,273

 

 

Diluted

34,670

 

 

 

31,992

 

 

 

33,184

 

 

32,065

 

 

(a)

This adjustment reflects the accounting impact of the quarterly valuation reassessment resulting from the 2020 acquisition.

(b)

This adjustment reflects a non-cash tax benefit from the 2020 acquisition.

 

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

 

Year ended
December 31, 2021

 

Low

 

High

Revenue

$

215.0

 

 

$

225.0

 

GAAP net loss

 

(21.3

)

 

 

(14.8

)

Stock compensation expense

 

30.0

 

 

 

29.0

 

Intangible amortization expense

 

3.3

 

 

 

3.3

 

Acquisition and restructuring expense

 

4.0

 

 

 

4.0

 

Total adjustments

 

37.3

 

 

 

36.3

 

Non-GAAP net income

$

16.0

 

 

$

21.5

 

Weighted average shares (in thousands)

 

 

 

Basic

 

33.3

 

 

 

33.3

 

Diluted - GAAP

 

33.3

 

 

 

33.3

Diluted

 

35.5

 

 

 

35.5

 

 

 

 

 

GAAP loss per share:

 

 

 

Basic

$

(0.64

)

 

$

(0.44

)

Diluted

$

(0.64

)

 

$

(0.44

)

Non-GAAP net income per share:

 

 

 

Basic

$

0.48

 

 

$

0.65

 

Diluted

$

0.45

 

 

$

0.61

 

 

Reconciliation of Non-GAAP net income to adjusted EBITDA

 

 

 

Year ended
December 31, 2021

 

Low

 

High

Non-GAAP net income

$

16.0

 

 

$

21.5

 

Interest expense, net

 

8.0

 

 

 

7.5

 

Depreciation expense

 

5.0

 

 

 

5.0

 

Provision for income taxes

 

1.0

 

 

 

1.0

 

Total adjustments

 

14.0

 

 

 

13.5

 

Adjusted EBITDA

$

30.0

 

 

$

35.0

 

 

* Amounts may not recompute due to rounding.

 

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

Media:
Shanna Hearon
Vocera Communications, Inc.
669.999.3368
shearon@vocera.com

Source: Vocera Communications, Inc.