Vocera Communications, Inc. ( VCRA Quick Quote VCRA - Free Report) 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.
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.
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 Quick Quote OOMA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and SeaChange International, Inc. ( SEAC Quick Quote SEAC - Free Report) and Ubiquiti Inc. ( UI Quick Quote 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.