february, 2018€¦ · as of january 1, 2017 (2) definitive healthcare database international...

February, 2018

Investor Presentation

©2017 Vocera Communications. All rights reserved. ©2017 Vocera Communications. All rights reserved.

This presentation contains forward-looking statements reflecting our current expectations that involve risks and uncertainties which are subject to safe harbors under the Securities Act of 1933, as amended, or the Securities Act, and the Securities Exchange Act of 1934, as amended, or the Exchange Act.

These forward-looking statements may include, but are not limited to, statements concerning our plans, objectives, expectations and intentions, future financial position, future revenues, projected costs, expectations regarding demand and acceptance for ourtechnologies, growth opportunities and trends in the market in which we operate, prospects and plans and objectives of management. The words “anticipates,” “believes,” “estimates," “expects,” “intends,” “may,” “plans,” “projects,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those in the forward-looking statements, including, without limitation, the risks set forth in Part II, Item 1A, “Risk Factors” in our Quarterly Reports on Form 10-Q and in our other filings with the Securities and Exchange Commission. We do not assume any obligation to update any forward-looking statements.

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Forward-Looking Statements


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• Large market shifting toward Vocera

• Market leader with compelling ROI

• Large wins validate sales strategy

• Software acquisition extends platform

• Accelerating operating leverage

Our Opportunity

Earnings before interest, taxes, depreciation and amortization, and further excludes stock -based compensation and change in fair value of warrant and option liabilities. See Appendix for a reconciliation.

*Represents the high end of the company’s guidance range provided February 8, 2018.

$104

$128

$163

$183*

-3%

3%

8%11%

FY15 FY16 FY17 FY18 Guide -High*

Revenue A-EBITDA %


Vocera Before Vocera Now

Communications

Badge-Centric

Point Product

Department Sale

Clinical Workflow

Software-Centric

Complete Solution

Enterprise Sale

Strategic Evolution

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Quality ResiliencyPatient-CenteredCostEnhance how care is

provided to help patients to achieve

better outcomes

Increase operational efficiencies

Improve patient experience by allowing

caregivers to be Patient Centered

Improve the caregiver experience by improving

workflow and empowering care teams

The Quadruple Aim

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Our Mission


6,986 Hospitals in the U.S.(1)

U.S. Hospitals1100+

(1)

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Large Global Market Opportunity

(1 ) Based on Definitive US Healthcare Database. As of January 1, 2017(2) Definitive Healthcare database

International Healthcare Facilities

230+

Global Non-Healthcare Facilities

270+

Fed Hospitals(1)

Vocera Total(2)

VA 62 168

DoD 38 48

Total 100 216

~$6 Billion Global Market Opportunity

11085236

Vocera Hospitals US Hospitals

18% U.S. Penetration Rate(2)

(6344 Total US Hospitals)

©2017 Vocera Communications. All rights reserved.

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Broadcast to OR Turnover

Call on-call Orthopedic Surgeon

Secure text to on-call Cardiologist

Urgent call to ED Charge Nurse

The Call Sheet Transformed


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Communicate, Collaborate, Make Informed Decisions Quickly

PHYSICIAN Collaborate whether inside

or outside the hospital

NURSEReach the right person

without names or numbers

NURSE SUPERVISOR Keep nurses and

patients safer

HOSPITALIST Receive timely, relevant

patient information

HOUSEKEEPING Increase bed turnover

Alert & Alarm Intelligence

Electronic Health Record

Nurse Call

Physiologic Monitor

Bed Management

Real-TimeLocation System

Laboratory Info System

INPUTSDynamic Data

Aggregation of PatientEvents and Context

OUTPUTSContext-Aware EventsResponse and Critical

Collaboration

Dynamic Master Directory


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Recent Platform Wins Validate Strategy

MEDCOM


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The Patient Journey in a Real Time Health System

Admission, discharge,

transfer

Test results

Nurse-physician consult

Obtain, clarify, change

orders

Update Patient status

Streamline Patient

flow

“The RTHS uses information and communication technology to reduce the time in which patient information and medical knowledge is collected, analyzed, shared and applied.”

Source: Gartner Real-Time Health System Technologies

Requirements:

• Aware

• Integrated

• Collaborative

• Patient-Centric

(1) Earnings before interest, taxes, depreciation and amortization, and further

excludes stock -based compensation and change in fair value of warrant and option liabilities.

Revenue Q4 2017 Highlights

Adjusted EBITDA

$36.0 $45.5

$127.7 $162.5

Q416 Q417 2016 2017

($ in

Mill

ion

s)

$1.0

$9.3

$4.3

$13.1

Q416 Q417 2016 2017

($ in

Mill

ion

s)

Q4/2017 Results exceeded expectations • Q4: 26% Revenue Growth, 2017: +27%

• Q4: 44% Software Growth, 2017: +36%

• $128.1 million Backlog + Deferred Revenue

Solid Customer Base and Value Proposition• 95%+ s/w maintenance renewal rate

• Strong competitive win rate

Expanding Profitability and Cash Flow• A-EBITDA $13.1 million in 2017

• GAAP Net Income of $2.7M in Q4

• $81.2 million in cash on balance sheet

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+26% +27%

Q4’17 Financial Highlights


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% 2017 Revenue

17%

SoftwareMaintenance*All recurring

32%

ProfessionalServices*15%+ recurring

13%

38%Devices *44% recurring

Diversified Revenue, High Visibility

• Greater than 50% of revenues are recurring

• High visibility

• Low customer concentration

Software*10%+ subscription

*%’s are of the specific category, not company revenue.


SoftwareMaintenance

Professional Services

Software

Hardware

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Larger Deals, Higher Software Mix

$9.4M $14.9M $2.7M $3.5M $3.1M

$ values are in bookings

$1.9M

31%

18%23%

30%

13%

34%

12%

14%

17%

19%

24%

15%

39%

29%

23%

19%

56%

51%

18%

39% 37%32%

7%


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Actual

2014 2015 2016 2017

R&D % of Revenue 17% 15% 13% 16%

S&M % of Revenue 47% 41% 37% 32%

G&A % of Revenue 13% 12% 11% 10%

Target Model

12%

29%

8%

Sales

Notes

• All numbers are non-GAAP, see appendix for reconciliation. • Mean peer group enterprise value comps are 3-4x Revenue and 12-15x A-EBITDA

Drivers

Operating Leverage Drives Significant Value

Thank you!

Appendix


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GAAP to Non-GAAP Reconciliation 2017Vocera Communications, Inc.

Year ended December 31, 2017

Stock Intangible Acquisition

(In thousands) GAAP compensation amortization related Total Non-GAAP

2017 expense (a) (b) expense (c) adjustments 2017

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

Revenue

Product $ 88,865 $ — $ — $ — $ — $ 88,865

Service 73,683 — — — — 73,683

Total revenue 162,548 — — — — 162,548

Cost of revenue

Product 27,244 413 2,873 — 3,286 23,958

Service 37,683 2,458 — 289 2,747 34,936

Total cost of revenue 64,927

2,871

2,873

289

6,033

58,894

Gross profit $ 97,621 $ 2,871 $ 2,873 $ 289 $ 6,033 $ 103,654


(In thousands) GAAP compensation amortization related Total Non-GAAP

2017 expense (a) (b) expense (c) adjustments 2017

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

Research and development $ 27,685

$ 2,122

$ —

$ 47

$ 2,169

$ 25,516

Sales and marketing 59,986

6,563

1,539

15

8,117

51,869

General and administrative 23,970

6,640

221

918

7,779

16,191

Total operating expenses $ 111,641

$ 15,325

$ 1,760

$ 980

$ 18,065

$ 93,576

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

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

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


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GAAP to Non-GAAP Reconciliation 2016Vocera Communications, Inc.

Year ended December 31, 2016 Stock Intangible Acquisition (In thousands) GAAP compensation amortization related Total Non-GAAP 2016 expense (a) (b) expense (c) adjustments 2016 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited) Revenue

Product $ 70,667 $ — $ 70,667

Service 57,029 — 57,029

Total revenue 127,696 — — — — 127,696 Cost of revenue

Product 22,788 235 672 907 21,881

Service 26,287 1,153 — 274 1,427 24,860

Total cost of revenue 49,075 1,388 672 274 2,334 46,741

Gross profit $ 78,621 $ (1,388 ) $ (672 ) $ (274 ) $ (2,334 ) $ 80,955 Stock Intangible Acquisition (In thousands) GAAP compensation amortization related Total Non-GAAP 2016 expense (a) (b) expense (c) adjustments 2016 Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)

Research and development $ 18,266 $ 1,158 $ — $ 23 $ 1,181 $ 17,085

Sales and marketing 52,811 4,625 415 399 5,439 47,372 General and administrative 24,499 4,864 288 5,126 10,278 14,221 Total operating expenses $ 95,576 $ 10,647 $ 703 $ 5,548 $ 16,898 $ 78,678

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

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


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GAAP to Non-GAAP Reconciliation 2015

Year ended December 31, 2015 Stock Intangible (In thousands) GAAP compensation amortization Litigation Total Non-GAAP 2015 expense (a) (b) expense (c) adjustments 2015 Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited) Revenue

Product $ 55,716 $ — $ 55,716

Service 48,370 — 48,370

Total revenue 104,086 — — — — 104,086 Cost of revenue

Product 19,666 232 323 555 19,111

Service 19,844 1,036 — 1,036 18,808 Total cost of

revenue 39,510 1,268 323 — 1,591 37,919

Gross profit 64,576 (1,268 ) (323 ) — (1,591 ) 66,167 Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)

Research and

development 16,990 1,072 — 1,072 15,918

Sales and marketing 47,647 4,486 229 4,715 42,932 General and

administrative 16,734 4,179 243 9 4,431 12,303 Total operating

expenses 81,371 9,737 472 9 10,218 71,153

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

(c) This operating expense adjustment reflects class action litigation expenses from the August 2013 lawsuit.


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GAAP to Non-GAAP Reconciliation 2014

Vocera Communications, Inc.

Year ended December 31, 2014Stock Intangible Acquisition

(In thousands) GAAP compensation amortization related Litigation Restructuring Total Non-GAAP

2014 expense (a) (b) expense (c) expense (d) expense (e) adjustments 2014

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

Revenue

Product $ 51,095 - - - - - $ - $ 51,095

Service 44,326 - - - - - - 44,326

Total revenue 95,421 - - - - - - 95,421

Cost of revenue

Product 18,766 254 429 - - 72 755 18,011

Service 18,470 924 - - - 26 950 17,520

Total cost of revenue 37,236 1,178 429 - - 98 1,705 35,531

Gross profit $ 58,185 $ (1,178) $ (429) $ - $ - $ (98) $ (1,705) $ 59,890


(In thousands) GAAP compensation amortization related Litigation Restructuring Total Non-GAAP

2014 expense (a) (b) expense (c) expense (d) expense (e) adjustments 2014

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

Research and development $ 18,035 $ 1,056 - $ 11 - - $ 1,067 $ 16,968

Sales and marketing 49,611 4,111 291 - - - 4,402 45,209

General and administrative 18,062 4,739 93 888 630 - 6,350 11,712

Restructuring 556 - - - - 556 556 -

Total operating expenses $ 86,264 $ 9,906 $ 384 $ 899 $ 630 $ 556 $ 12,375 $ 73,889

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

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

(c) This operating expense adjustment reflects the accounting impact of acquisitions, including for Q4 2014 $800K of consideration

deemed to be compensation.

(d) The operating expense adjustment reflects class action litigation expenses from the August 2013 lawsuit.

(e) This operating expense adjustment reflects the impact of restructuring expense.

february, 2018€¦ · as of january 1, 2017 (2) definitive healthcare database international...

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