Vocera Communications, Inc. reported healthy third-quarter 2021 results with both the bottom line and top line surpassing their respective Zacks Consensus Estimate. Higher revenues, software strength, and broad-based growth across its business supported by dynamic business fundamentals drove Vocera’s quarterly performance.
Bottom Line
On a GAAP basis, net income in the September quarter came in at $2.1 million or 6 cents per share compared with $4.2 million or 13 cents per share in the year-ago quarter. The year-over-year decline despite top-line growth was primarily attributable to higher operating expenses. Benefit from income taxes in the prior year was a significant factor as well.
On a non-GAAP basis, quarterly net income was $10.8 million or 28 cents per share compared with $8.5 million or 26 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents.
Revenues
Quarterly revenues came in at $63.6 million compared with $53.8 million in the year-ago quarter. The 18.72% year-over-year increase was primarily driven by higher product and service revenues coupled with major hospital system wins, thereby contributing to software growth. Broad-based growth across its business fueled by its market leadership position acted as significant tailwinds. The top line surpassed the consensus estimate of $61 million.
Product revenues rose 15.4% to $32.9 million, mainly due to an increase in the number of software licenses delivered to customers. Service revenues aggregated $30.6 million compared with $25.3 million in the year-ago quarter as a result of higher implementation services and software maintenance contracts along with higher subscription revenues.
Other Details
Total operating expenses were $39.6 million compared with $32.3 million in the prior-year quarter, mainly due to higher R&D and sales and marketing expenses. Operating income decreased to $3.4 million from $4 million. Gross profit came in at $43 million compared with $36.3 million in the prior year with respective margins of 67.6% and 67.5%. Adjusted EBITDA totaled $15.3 million compared with $13.5 million in the prior-year period. As of Sep 30, 2021, the company had $40.6 million of cash and cash equivalents with $128.6 million of total current liabilities.
Outlook Raised
With a healthy quarterly performance, Vocera increased its earlier guidance for 2021 to better reflect the improving business conditions. Revenues are currently expected to be in the range of $226-$233 million, up from earlier projections of $221-$231 million. Adjusted earnings are likely to be within 62-72 cents per share, up from 49-59 cents expected earlier. Adjusted EBITDA is estimated to be between $35 million and $40 million, up from prior guidance of $29 million to $34 million.
Zacks Rank & Stocks to Consider
Verizon carries a Zacks Rank #4 (Sell) at present. Some better-ranked stocks in the industry are Ooma, Inc. (OOMA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and SeaChange International, Inc. (SEAC - Free Report) and Ubiquiti Inc. (UI - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ooma delivered an earnings surprise of 55.2%, on average, in the trailing four quarters.
Ubiquiti has a long-term earnings growth expectation of 32.9%. It delivered an earnings surprise of 20.5%, on average, in the trailing four quarters.
SeaChange has a long-term earnings growth expectation of 10%. It delivered an earnings surprise of 28.9%, on average, in the trailing four quarters.
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Vocera Communications, Inc. reported healthy third-quarter 2021 results with both the bottom line and top line surpassing their respective Zacks Consensus Estimate. Higher revenues, software strength, and broad-based growth across its business supported by dynamic business fundamentals drove Vocera’s quarterly performance.
Bottom Line
On a GAAP basis, net income in the September quarter came in at $2.1 million or 6 cents per share compared with $4.2 million or 13 cents per share in the year-ago quarter. The year-over-year decline despite top-line growth was primarily attributable to higher operating expenses. Benefit from income taxes in the prior year was a significant factor as well.
On a non-GAAP basis, quarterly net income was $10.8 million or 28 cents per share compared with $8.5 million or 26 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents.
Revenues
Quarterly revenues came in at $63.6 million compared with $53.8 million in the year-ago quarter. The 18.72% year-over-year increase was primarily driven by higher product and service revenues coupled with major hospital system wins, thereby contributing to software growth. Broad-based growth across its business fueled by its market leadership position acted as significant tailwinds. The top line surpassed the consensus estimate of $61 million.
Product revenues rose 15.4% to $32.9 million, mainly due to an increase in the number of software licenses delivered to customers. Service revenues aggregated $30.6 million compared with $25.3 million in the year-ago quarter as a result of higher implementation services and software maintenance contracts along with higher subscription revenues.
Other Details
Total operating expenses were $39.6 million compared with $32.3 million in the prior-year quarter, mainly due to higher R&D and sales and marketing expenses. Operating income decreased to $3.4 million from $4 million. Gross profit came in at $43 million compared with $36.3 million in the prior year with respective margins of 67.6% and 67.5%. Adjusted EBITDA totaled $15.3 million compared with $13.5 million in the prior-year period. As of Sep 30, 2021, the company had $40.6 million of cash and cash equivalents with $128.6 million of total current liabilities.
Outlook Raised
With a healthy quarterly performance, Vocera increased its earlier guidance for 2021 to better reflect the improving business conditions. Revenues are currently expected to be in the range of $226-$233 million, up from earlier projections of $221-$231 million. Adjusted earnings are likely to be within 62-72 cents per share, up from 49-59 cents expected earlier. Adjusted EBITDA is estimated to be between $35 million and $40 million, up from prior guidance of $29 million to $34 million.
Zacks Rank & Stocks to Consider
Verizon carries a Zacks Rank #4 (Sell) at present. Some better-ranked stocks in the industry are Ooma, Inc. (OOMA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and SeaChange International, Inc. (SEAC - Free Report) and Ubiquiti Inc. (UI - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ooma delivered an earnings surprise of 55.2%, on average, in the trailing four quarters.
Ubiquiti has a long-term earnings growth expectation of 32.9%. It delivered an earnings surprise of 20.5%, on average, in the trailing four quarters.
SeaChange has a long-term earnings growth expectation of 10%. It delivered an earnings surprise of 28.9%, on average, in the trailing four quarters.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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