Vocera Communications, Inc. (NYSE: VCRA), a recognized leader in
clinical communication and workflow solutions, today reported total
revenue of $63.6 million for the third quarter of 2021, an increase
of 18% compared to the third quarter of 2020.
“The third quarter was another fantastic quarter for our
business with strong growth and customer success,” said Brent Lang,
Chairman and CEO of Vocera. “Our market leadership in both the
commercial and federal healthcare markets continued with impressive
bookings and revenue growth, demonstrating the value of our unique
solutions and the strong execution by our team.”
Third quarter of 2021 financial highlights include:
- Total revenue of $63.6 million, up 18% compared to $53.8
million last year
- GAAP net income of $2.1 million compared to $4.2 million last
year
- Adjusted EBITDA of $15.3 million compared to $13.5 million last
year
- Deferred revenue and backlog was $252.7 million as of September
30, 2021, an increase of 67% over last year
Third Quarter 2021 Results
(in thousands)
Three months ended September
30,
2021
2020
% change
Product revenue
Device
$
20,650
$
17,027
21.3
%
Software
12,286
11,483
7.0
Total product
$
32,936
$
28,510
15.5
%
Service revenue
Subscription and support
$
25,069
$
20,387
23.0
%
Professional services and training
5,563
4,918
13.1
Total service
30,632
25,305
21.1
%
Total revenue
$
63,568
$
53,815
18.1
%
GAAP gross margin for the third quarter of 2021 was 67.6%,
compared to 67.5% for the third quarter of 2020.
Three months ended September
30,
2021
2020
Gross margin
Product
74.6
%
75.0
%
Service
60.1
59.1
Total gross margin
67.6
%
67.5
%
Non-GAAP gross margin
Product
78.5
%
75.9
%
Service
63.8
62.7
Total non-GAAP gross margin
71.4
%
69.7
%
GAAP net income for the third quarter of 2021 was $2.1 million,
or $0.06 per share, compared to GAAP net income of $4.2 million, or
$0.13 per share for the third quarter of 2020.
Three months ended September
30,
(in thousands except per share
amounts)
2021
2020
Net income
$
2,077
$
4,161
Net income per share
$
0.06
$
0.13
Non-GAAP net income
$
10,829
$
8,502
Non-GAAP diluted net income per share
$
0.28
$
0.26
Adjusted EBITDA
$
15,336
$
13,498
Deferred revenue as of September 30, 2021 was $66.7 million
compared to $64.7 million as of December 31, 2020. Cash, cash
equivalents and short-term investments were $304.6 million as of
September 30, 2021 compared to $230.2 million as of December 31,
2020.
2021 Guidance
The Company has increased its 2021 guidance for revenue,
adjusted EBITDA and GAAP loss per share. Revenue is expected to be
in a range of $226.0 million and $233.0 million and GAAP loss per
share between $(0.48) and $(0.30). The Company expects non-GAAP
diluted earnings per share to be between $0.62 and $0.72 and
non-GAAP Adjusted EBITDA to be between $35.0 million and $40.0
million.
Year ending December 31,
2021
(in millions except per share amounts)
Low
High
Revenue
$
226.0
$
233.0
Loss per share
$
(0.48
)
$
(0.30
)
Non-GAAP diluted earnings per share
$
0.62
$
0.72
Adjusted EBITDA
$
35.0
$
40.0
Non-GAAP Income Tax Expense
Starting April 1, 2021, the Company changed the calculation of
its non-GAAP provision for income taxes in accordance with the SEC
guidance of non-GAAP financial measures and has applied such change
to all periods presented. The Company’s current and deferred income
tax expense is commensurate with the non-GAAP measure of
profitability using a non-GAAP tax rate of 20% for the three and
nine months ended September 30, 2021 and 2020. The Company uses
annual projected tax rate in its computation of the non-GAAP income
tax provision, and excludes the direct impact of stock-based
compensation, intangible amortization expenses and acquisition
related expenses. The projected rate considers other factors such
as our current operating structure, existing tax positions in
various jurisdictions, and key legislation in major jurisdictions
where we operate.
The change will not affect the company’s non-GAAP income before
income taxes, actual cash tax payments, or cash flows, but will
result in higher non-GAAP provision for income taxes. The Company,
however, does not expect to pay substantial taxes on a GAAP basis
in the U.S. and certain other foreign jurisdictions for the
foreseeable future due to its net operating loss carryforward
balances.
Conference Call Information
Vocera Communications will host a conference call at 5 p.m. ET
(2 p.m. PT) today, October 28, 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 +1 844-200-6205, or +1
929-526-1599 for international callers, and using the access code
231016.
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, 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 for our solutions; our ability to obtain the
required capacity and product quality from our contract
manufacturers; 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; potential impacts of the COVID-19
pandemic on our operations, changes in regulations in the U.S. and
other countries; our ability to achieve anticipated strategic or
financial benefits from our acquisitions; 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 third quarter of 2021, 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 therefor. Actual events or
results could differ materially from those anticipated in
forward-looking statements.
Computational Guidance on Earnings Per Share
Estimates
Accounting principles require that EPS be computed based on the
weighted average shares outstanding (“basic”), and also assuming
the issuance of potentially issuable shares (such as those subject
to stock options, convertible notes, etc.) if those potentially
issuable shares would reduce EPS (“diluted”).
The number of shares related to options and similar instruments
included in diluted EPS is based on the “Treasury Stock Method”
prescribed in Financial Accounting Standards Board (“FASB”) ASC
Topic 260, Earnings Per Share (“FASB ASC Topic 260”). This method
assumes a theoretical repurchase of shares using the proceeds of
the respective stock option exercise at a price equal to the
issuer’s average stock price during the related earnings period.
Accordingly, the number of shares includable in the calculation of
diluted EPS in respect of stock options and similar instruments is
dependent on this average stock price and will increase as the
average stock price increases.
Starting January 1, 2021, the number of shares included in the
calculation of diluted EPS in respect of convertible senior notes
is based on the “If Converted” method prescribed in FASB ASC Topic
260. This method assumes the conversion or exchange of these
securities for shares of common stock. In determining if
convertible securities are dilutive, the interest savings (net of
tax) subsequent to an assumed conversion are added back to net
earnings. The shares related to a convertible security are included
in diluted EPS only if EPS as otherwise calculated is greater than
the interest savings, net of tax, divided by the shares issuable
upon exercise or conversion of the instrument. Accordingly, the
calculation of diluted EPS for these instruments is dependent on
the level of net earnings.
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 provision for (benefit from) 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 provision for (benefit from)
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 2021, 2020, and 2016, and recorded 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 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. 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) Income tax effects. Starting April 1, 2021, we changed the
calculation of our non-GAAP provision for income taxes in
accordance with the SEC guidance of non-GAAP financial measures.
The Company’s current and deferred income tax expense is
commensurate with the non-GAAP measure of profitability using a
non-GAAP tax rate of 20% for the three and nine months ended
September 30, 2021 and 2020. We use the annual projected tax rate
in computation of the non-GAAP income tax provision, and exclude
the direct impact of stock-based compensation, intangible
amortization expenses and acquisition related expenses. The
projected rate considers other factors such as our current
operating structure, existing tax positions in various
jurisdictions, and key legislation in major jurisdictions where we
operate.
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 the Company’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 improve the
lives of healthcare professionals, patients, and families. Founded
in 2000, Vocera provides clinical communication and workflow
solutions that help protect and connect team members, increase
operational efficiency, enhance quality of care and safety, and
humanize the healthcare experience. More than 2,300 facilities
worldwide, including nearly 1,900 hospitals and healthcare
facilities, have selected Vocera solutions to enable their
workforce to communicate and collaborate with co-workers and engage
with patients and families. Mobile workers can choose the right
device for their role or task, including smartphones or one of the
company’s wearable communication devices, and use voice commands to
easily reach people by name, role, or group. The hands-free Vocera
Smartbadge was named to TIME’s list of the 100 Best Inventions of
2020. Vocera solutions can integrate with more than 150 clinical
and operational systems, including electronic health records, nurse
call systems, ventilators, physiological monitors, and more. In
addition to healthcare, Vocera solutions are found in aged care
facilities, veterinary hospitals, schools, luxury hotels, retail
stores, power facilities, and more. Visit www.vocera.com/ to learn
more and follow @VoceraComm 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 September
30,
Nine months ended September
30,
2021
2020
2021
2020
Revenue
Product
$
32,936
$
28,510
$
83,888
$
70,311
Service
30,632
25,305
84,528
71,524
Total revenue
63,568
53,815
168,416
141,835
Cost of revenue
Product
8,361
7,139
22,858
21,213
Service
12,230
10,346
35,440
30,563
Total cost of revenue
20,591
17,485
58,298
51,776
Gross profit
42,977
36,330
110,118
90,059
Operating expenses
Research and development
12,294
9,559
34,650
27,940
Sales and marketing
19,132
15,291
55,227
48,252
General and administrative
8,162
7,464
24,501
20,778
Total operating expenses
39,588
32,314
114,378
96,970
Income (loss) from operations
3,389
4,016
(4,260
)
(6,911
)
Interest income
227
645
868
2,678
Interest expense
(812
)
(2,368
)
(2,383
)
(6,950
)
Other (expense) income, net
(549
)
264
(1,551
)
(117
)
Income (loss) before income taxes
2,255
2,557
(7,326
)
(11,300
)
(Provision for) benefit from income
taxes
(178
)
1,604
(512
)
1,523
Net income (loss)
$
2,077
$
4,161
$
(7,838
)
$
(9,777
)
Income (loss) per share
Basic
$
0.06
$
0.13
$
(0.23
)
$
(0.30
)
Diluted
$
0.06
$
0.13
$
(0.23
)
$
(0.30
)
Weighted average shares used to compute
net income (loss) per share
Basic
34,733
32,394
34,108
32,096
Diluted
35,746
33,019
34,108
32,096
Vocera Communications,
Inc.
Condensed Consolidated Balance
Sheets
(In Thousands)
(Unaudited)
September 30,
2021
December 31,
2020
Assets
Current assets
Cash and cash equivalents
$
40,602
$
34,976
Short-term investments
263,973
195,227
Accounts receivable, net of allowance
43,802
45,653
Other receivables
6,834
6,170
Inventories
8,074
10,159
Prepaid expenses and other current
assets
6,542
6,317
Total current assets
369,827
298,502
Property and equipment, net
6,477
8,103
Intangible assets, net
21,272
12,788
Goodwill
94,833
69,168
Deferred commissions
17,167
12,293
Other long-term assets
7,109
5,967
Total assets
$
516,685
$
406,821
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$
7,493
$
3,127
Accrued payroll and other current
liabilities
25,013
23,195
Deferred revenue, current
55,753
54,785
Convertible senior notes, net
40,338
—
Total current liabilities
128,597
81,107
Deferred revenue, long-term
10,954
9,948
Convertible senior notes, net
218,327
124,376
Other long-term liabilities
6,501
10,374
Total liabilities
364,379
225,805
Stockholders' equity
152,306
181,016
Total liabilities and stockholders’
equity
$
516,685
$
406,821
Vocera Communications,
Inc.
Three months ended September
30, 2021
Stock
Acquisition
(In thousands)
GAAP
compensation
Intangible
related
Total
Non-GAAP
2021
expense (a)
amortization (b)
expense (c)
adjustments
2021
Reconciliation of GAAP Gross Profit to
Non-GAAP Gross Profit (Unaudited)
Revenue
Product
$
32,936
$
—
$
—
$
—
$
—
$
32,936
Service
30,632
—
—
—
—
30,632
Total revenue
63,568
—
—
—
—
63,568
Cost of revenue
Product
8,361
235
1,043
—
1,278
7,083
Service
12,230
1,176
—
(41)
1,135
11,095
Total cost of revenue
20,591
1,411
1,043
(41)
2,413
18,178
Gross profit
$
42,977
$
1,411
$
1,043
$
(41)
$
2,413
$
45,390
Stock
Acquisition
(In thousands)
GAAP
compensation
Intangible
related
Total
Non-GAAP
2021
expense (a)
amortization (b)
expense (c)
adjustments
2021
Reconciliation of GAAP Operating
Expenses to Non-GAAP Operating Expenses (Unaudited)
Research and development
$
12,294
$
1,222
$
—
$
413
$
1,635
$
10,659
Sales and marketing
19,132
2,876
590
304
3,770
15,362
General and administrative
8,162
3,094
—
157
3,251
4,911
Total operating expenses
$
39,588
$
7,192
$
590
$
874
$
8,656
$
30,932
(a)
This adjustment reflects the
accounting impact of non-cash stock-based compensation expense.
(b)
This adjustment reflects the
accounting impact of acquisitions in 2021, 2020, and 2016 in
non-cash expense.
(c)
This adjustment reflects the
costs associated with acquisitions in 2021 and 2020.
Three months ended September
30, 2020
Stock
Intangible
Acquisition
(In thousands)
GAAP
compensation
amortization
related
Total
Non-GAAP
2020
expense (a)
(b)
expense (c)
adjustments
2020
Reconciliation of GAAP Gross Profit to
Non-GAAP Gross Profit (Unaudited)
Revenue
Product
$
28,510
$
—
$
—
$
—
$
—
$
28,510
Service
25,305
—
—
—
—
25,305
Total revenue
53,815
—
—
—
—
53,815
Cost of revenue
Product
7,139
147
114
—
261
6,878
Service
10,346
895
—
—
895
9,451
Total cost of revenue
17,485
1,042
114
—
1,156
16,329
Gross profit
$
36,330
$
1,042
$
114
$
—
$
1,156
$
37,486
Stock
Intangible
Acquisition
(In thousands)
GAAP
compensation
amortization
related
Total
Non-GAAP
2020
expense (a)
(b)
expense (c)
adjustments
2020
Reconciliation of GAAP Operating
Expenses to Non-GAAP Operating Expenses (Unaudited)
Research and development
$
9,559
$
1,046
$
—
$
222
$
1,268
$
8,291
Sales and marketing
15,291
2,037
375
148
2,560
12,731
General and administrative
7,464
2,554
40
485
3,079
4,385
Total operating expenses
$
32,314
$
5,637
$
415
$
855
$
6,907
$
25,407
(a)
This adjustment reflects the
accounting impact of non-cash stock-based compensation expense.
(b)
This adjustment reflects the
accounting impact of an acquisition in 2016 in non-cash
expense.
(c)
This adjustment reflects the
costs associated with the acquisition in 2020.
Vocera Communications,
Inc.
Nine months ended September
30, 2021
Stock
Intangible
Acquisition
(In thousands)
GAAP
compensation
amortization
related
Total
Non-GAAP
2021
expense (a)
(b)
expense (c)
adjustments
2021
Reconciliation of GAAP Gross Profit to
Non-GAAP Gross Profit (Unaudited)
Revenue
Product
$
83,888
$
—
$
—
$
—
$
—
$
83,888
Service
84,528
—
—
—
—
84,528
Total revenue
168,416
—
—
—
—
168,416
Cost of revenue
Product
22,858
670
2,068
—
2,738
20,120
Service
35,440
3,220
—
166
3,386
32,054
Total cost of revenue
58,298
3,890
2,068
166
6,124
52,174
Gross profit
$
110,118
$
3,890
$
2,068
$
166
$
6,124
$
116,242
Stock
Intangible
Acquisition
(In thousands)
GAAP
compensation
amortization
related
Total
Non-GAAP
2021
expense (a)
(b)
expense (c)
adjustments
2021
Reconciliation of GAAP Operating
Expenses to Non-GAAP Operating Expenses (Unaudited)
Research and development
$
34,650
$
3,455
$
—
$
1,093
$
4,548
$
30,102
Sales and marketing
55,227
7,633
1,630
806
10,069
45,158
General and administrative
24,501
7,610
78
1,830
9,518
14,983
Total operating expenses
$
114,378
$
18,698
$
1,708
$
3,729
$
24,135
$
90,243
(a)
This adjustment reflects the
accounting impact of non-cash stock-based compensation expense.
(b)
This adjustment reflects the
accounting impact of acquisitions in 2021, 2020, and 2016 in
non-cash expense.
(c)
This adjustment reflects the
costs associated with the acquisition in 2021 and 2020.
Nine months ended September
30, 2020
Stock
Intangible
Acquisition
(In thousands)
GAAP
compensation
amortization
related
Total
Non-GAAP
2020
expense (a)
(b)
expense (c)
adjustments
2020
Reconciliation of GAAP Gross Profit to
Non-GAAP Gross Profit (Unaudited)
Revenue
Product
$
70,311
$
—
$
—
$
—
$
—
$
70,311
Service
71,524
—
—
—
—
71,524
Total revenue
141,835
—
—
—
—
141,835
Cost of revenue
Product
21,213
510
125
—
635
20,578
Service
30,563
2,619
—
—
2,619
27,944
Total cost of revenue
51,776
3,129
125
—
3,254
48,522
Gross profit
$
90,059
$
3,129
$
125
$
—
$
3,254
$
93,313
Stock
Intangible
Acquisition
(In thousands)
GAAP
compensation
amortization
related
Total
Non-GAAP
2020
expense (a)
(b)
expense (c)
adjustments
2020
Reconciliation of GAAP Operating
Expenses to Non-GAAP Operating Expenses (Unaudited)
Research and development
$
27,940
$
3,035
$
—
$
222
$
3,257
$
24,683
Sales and marketing
48,252
5,858
912
148
6,918
41,334
General and administrative
20,778
6,864
118
485
7,467
13,311
Total operating expenses
$
96,970
$
15,757
$
1,030
$
855
$
17,642
$
79,328
(a)
This adjustment reflects the
accounting impact of non-cash stock-based compensation expense.
(b)
This adjustment reflects the
accounting impact of an acquisition in 2016 in non-cash
expense.
(c)
This adjustment reflects the
costs associated with the acquisition in 2020.
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 September
30,
Nine months ended September
30,
2021
2020
2021
2020
GAAP net income (loss)
$
2,077
$
4,161
$
(7,838
)
$
(9,777
)
Add back:
Stock compensation expense
8,603
6,679
22,588
18,886
Acquisition related expenses
833
855
3,895
855
Other expense, net (a)
212
8
973
8
Release of deferred tax valuation
allowance
—
(2,056
)
—
(2,056
)
Interest income
(224
)
(638
)
(855
)
(2,655
)
Interest expense
812
2,368
2,383
6,950
Depreciation and amortization expense
2,845
1,669
7,432
4,470
Provision for income taxes (b)
178
452
512
533
Non-GAAP adjusted EBITDA
$
15,336
$
13,498
$
29,090
$
17,214
GAAP net income (loss)
$
2,077
$
4,161
$
(7,838
)
$
(9,777
)
Add back:
Stock compensation expense
8,603
6,679
22,588
18,886
Intangible amortization
1,633
529
3,776
1,155
Acquisition related expenses
833
855
3,895
855
Other expense, net (a)
212
8
973
8
Provision for income taxes (b)
(2,529
)
(3,730
)
(4,269
)
(3,444
)
Non-GAAP net income
$
10,829
$
8,502
$
19,125
$
7,683
Add interest expense of convertible senior
notes, net of tax
650
—
1,906
—
Numerator for non-GAAP diluted EPS
calculation
$
11,479
$
8,502
$
21,031
$
7,683
Non-GAAP net income per share
Basic
$
0.31
$
0.26
$
0.56
$
0.24
Diluted
$
0.28
$
0.26
$
0.52
$
0.24
Non-GAAP weighted average shares used to
compute net income per share, basic
34,733
32,394
34,108
32,096
GAAP weighted average shares used to
compute net income per share, diluted
35,746
33,019
34,108
32,096
Dilutive effect of convertible senior
notes
4,998
—
5,061
—
Dilutive effect of employee equity
incentive plan awards and ESPP
—
—
1,226
541
Non-GAAP weighted average shares used to
compute net income per share, diluted
40,744
33,019
40,395
32,637
(a) This adjustment reflects the
accounting impact of the quarterly valuation reassessment of
contingent consideration resulting from the 2020 acquisition of
$0.2 million and $(1.1) million for the three and nine months ended
September 30, 2021, respectively and the induced conversion expense
from repurchasing our 2023 Notes of $2.1 million for the nine
months ended September 30, 2021.
(b) Starting April 1, 2021, the
Company changed the calculation of its non-GAAP provision for
income taxes in accordance with the SEC guidance of non-GAAP
financial measures. The Company’s current and deferred income tax
expense is commensurate with the non-GAAP measure of profitability
using a non-GAAP tax rate of 20% for the three and nine months
ended September 30, 2021 and 2020. The Company uses annual
projected tax rate in its computation of the non-GAAP income tax
provision, and excludes the direct impact of stock-based
compensation, intangible amortization expenses and acquisition
related expenses.
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 ending
December 31, 2021
Low
High
Revenue
$
226.0
$
233.0
GAAP net loss
(16.5
)
(10.4
)
Stock compensation expense
32.0
31.0
Intangible amortization expense
5.4
5.4
Acquisition and restructuring expense
4.3
4.3
Other expense
2.0
2.0
Income tax expense
(4.8
)
(5.8
)
Total adjustments
38.9
36.9
Non-GAAP net income
$
22.4
$
26.5
Add interest expense of convertible senior
notes, net of tax
2.6
2.6
Numerator for non-GAAP EPS calculation
$
25.0
$
29.1
Weighted average shares
Basic
34.3
34.3
Diluted
40.6
40.6
GAAP loss per share:
Basic
$
(0.48
)
$
(0.30
)
Diluted
$
(0.48
)
$
(0.30
)
Non-GAAP net income per share:
Basic
$
0.65
$
0.77
Diluted
$
0.62
$
0.72
Reconciliation of Non-GAAP net income
to adjusted EBITDA
Year ending
December 31, 2021
Low
High
Non-GAAP net income
$
22.4
$
26.5
Interest expense, net
2.1
2.1
Depreciation expense
4.9
4.9
Provision for income taxes
5.6
6.5
Total adjustments
12.6
13.5
Adjusted EBITDA
$
35.0
$
40.0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211028006137/en/
Investors: Sue Dooley Vocera Communications, Inc.
408.882.5971 investorrelations@vocera.com
Media: Shanna Hearon Vocera Communications, Inc.
669.999.3368 shearon@vocera.com
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