Vocera Announces Third Quarter 2021 Financial Results
Vocera Communications (NYSE: VCRA) reported Q3 2021 total revenue of $63.6 million, marking an 18% increase year-over-year. Despite strong growth, GAAP net income fell to $2.1 million from $4.2 million in Q3 2020. Adjusted EBITDA rose to $15.3 million, while deferred revenue surges 67% to $252.7 million. The company has revised its 2021 guidance, expecting revenue between $226.0 million and $233.0 million, and non-GAAP diluted EPS between $0.62 and $0.72.
- Revenue increased by 18% year-over-year to $63.6 million.
- Adjusted EBITDA improved to $15.3 million from $13.5 million.
- Deferred revenue and backlog grew 67% to $252.7 million.
- GAAP net income decreased to $2.1 million from $4.2 million year-over-year.
- GAAP loss per share guidance revised to between $(0.48) and $(0.30).
“The third quarter was another fantastic quarter for our business with strong growth and customer success,” said
Third quarter of 2021 financial highlights include:
-
Total revenue of
$63.6 million 18% compared to$53.8 million -
GAAP net income of
$2.1 million $4.2 million -
Adjusted EBITDA of
$15.3 million $13.5 million -
Deferred revenue and backlog was
$252.7 million September 30, 2021 , an increase of67% over last year
Third Quarter 2021 Results
(in thousands) |
Three months ended |
||||||||||
|
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
|
Three months ended |
|||||
|
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
|
Three months ended |
|||||||
(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
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
|
Year ending |
|||||||
(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
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
Conference Call Information
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
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
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
Starting
Use of Non-GAAP Financial Information
This press release contains financial measures that are not calculated in accordance with
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
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
The mission of
Vocera® and the
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(In Thousands, Except Per Share Amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
Three months ended |
|
Nine months ended |
|||||||||||||
|
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 |
|
|||||
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(In Thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|||||
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 |
|
|||
|
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 |
|
|
|
||||||||||||||||||||||||
Three months ended |
||||||||||||||||||||||||
|
|
|
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 |
||||||||||||||||||||||||
|
|
|
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. |
|
||||||||||||||||||||||||
Nine months ended |
||||||||||||||||||||||||
|
|
|
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 |
||||||||||||||||||||||||
|
|
|
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. |
|
||||||||||||||||
Non-GAAP Net income and net income per share and Adjusted EBITDA |
||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three months ended |
|
Nine months ended |
|||||||||||||
|
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 |
(b) Starting |
|
||||||||
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
|
|||||||
|
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
|
|||||||
|
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:
408.882.5971
investorrelations@vocera.com
Media:
669.999.3368
shearon@vocera.com
Source:
FAQ
What were Vocera's Q3 2021 earnings results?
What is Vocera's guidance for 2021?
How did Vocera's deferred revenue change in Q3 2021?
What factors impacted Vocera's GAAP net income in Q3 2021?
