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Vocera investordeck february 2017 web (1)
- 2. 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 our technologies, 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. 2 Forward-Looking Statements
- 3. 3 • Large market shifting towards Vocera • Market leader with compelling ROI • Large wins validate sales strategy • Software acquisition extends platform • Accelerating toward target financial model *Earnings before interest, taxes, depreciation and amortization, and further excludes stock -based compensation and change in fair value of warrant and option liabilities. **Represents the high end of the company’s guidance range Significant Value Creating Opportunity
- 4. (1) Joint Commission, an independent healthcare accreditation organization (2) Agarwal et. al. Univ. of Maryland, 2010 92% of physicians use unsecured SMS text for patient care, leading to data breeches and HIPAA violations resulting in over $1.5M in fines per year Efficient communication is a primary component in driving patient engagement and satisfaction Nurses often only spend 20% of their time delivering direct care at the patient bedside 69% of accidental deaths and serious injuries in hospitals are caused by communications breakdowns1 Cybercriminals are increasingly going after targets in the medical and healthcare verticals $12 billion wasted annually In U.S. hospitals as a result of communication inefficiencies2 4 Healthcare Communication Challenges
- 5. Market Forces Vocera Forces 5 Political Forces Sales & Marketing Product Technology Forces Device of Choice CC&C Unified Platform ROI Selling Cross Selling System-level Deals Meaningful Use Hangover ACA Repeal Medicare/Medicaid Hospital Budgets Scalability Integration Unified Platform Strong Backlog/Def Revenue Approaching Target model 2017 Context
- 6. Vocera Before Vocera Now Communications Badge-Centric Point Product Department Sale Clinical Workflow Software-Centric Complete Solution Enterprise Sale Strategic Evolution
- 7. • Large System Deals • Further penetrate existing health system customers • Continue pace of new customer acquisition Building momentum across new products • EHR Integration • Collaboration Suite • Clinical Integration • Even Driven Alerts • Care Experience Extend Reach to New Users • Physicians • Long Term Care • Surgery Centers Attractive International Markets • Canada • United Kingdom • Saudi Arabia • UAE • Qatar • Australia • Singapore • Malaysia Core Customer Growth Software New Users International Expansion 7 Our Opportunity: Multiple Avenues for Growth
- 8. Quality ExperiencePatient-CenteredCost Enhance 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 8 Our Mission
- 9. By enabling the care team to get the data, context, presence, and insights needed to… Achieve the Quadruple Aim Focus on the Patient Enhance workflows Make information and help easier to find 9 How Do We Do That?
- 10. 10 Communicate Engage Experience Improve response times, patient care, safety and satisfaction Over 120 clinical integrations Secure Text, Voice, Image Clinical Communication and Collaboration
- 11. 11 Hospital Staff Physicians Post Acute Home Badge MC40-HC iPhone Android Tablets Desktop Voice Secure Texting Clinical Integration and Workflow Patient Engagement Vocera Software Platform Communication and Clinical Workflows Master Directory with Care Team Sync Staff Assignment and On-Call Scheduling Analytics and Reporting Certified Security Clinical System Integrations Enterprise-Grade Communication Platform
- 12. The Vocera ApproachToday’s Situation A Coordinated Approach Alerts Alarms Messaging Voice
- 13. Integrated with 120+ Clinical Systems Quadruple Aim Quality Cost Patient- Centered Experience
- 14. 14 The Device of Choice Differentiator
- 15. Key Differentiators: • Enterprise-class platform (vs cobbling together vendors) • Clinical Integration • Device of Choice (Apple and Zebra) • Vocera Badge resonates with nursing • Superb References • World-Class Support and Professional Services (1) Joint Commission, an independent healthcare accreditation organization (2) Agarwal et. al. Univ. of Maryland, 2010 15 MEDCOM Healthcare Recent Platform Wins Validate Strategy
- 16. 16 Scalable, Secure and Integrated = we consistently win >70% of competitive sales StatusQuo • Pagers • Overhead Paging • Shouting or Walking Wireless Devices • Spectralink • Cisco • Ascom Smartphone Apps • Voalte • Tiger Text • Texting Solutions • Mobile Apps Complete end-to-end solution Role-based intelligence Device of Choice Ease-of-use Hands-free Clinical integration Enterprise class Trusted provider Purpose-built device World class service and support Competitive Landscape
- 17. 6,986 Hospitals in the U.S.(1) U.S. Hospitals 1100+ (1) Large Global Market Opportunity (1 ) Based on Definitive US Healthcare Database (2) Definitive Healthcare database International Healthcare Facilities 230+ Global Non- Healthcare Facilities 270+ Fed Hospitals Vocera Total VA 68 153 DoD 32 64 Total 100 217 ~$6 Billion Global Market Opportunity 5200 1108 18% U.S. Penetration Rate (2) (6308 Total US Hospitals) 17
- 18. 18 10 minutes per nurse per shift Bed turnover rates up 50% OR revenues up $780,000 350 more annual OR capacity hours 4,000 annual ED hours recaptured Operational Efficiency Response times down from 2 minutes to 9 seconds 35% overall Sat Rating improvement 25% improvement in HCAHPS scores Fall related injuries down 60%; estimated $1.27 mm savings Patient Safety and Satisfaction Compelling Return on Investment
- 19. 19 • 60% revenues are recurring • High visibility • Low customer concentration % of 2016 Revenue Revenue Streams • Perpetual licenses • Subscriptions Software *15%+ recurring 16% • Software maintenance • Technical support Maintenance *All recurring 34% • Professional services • Deployment & training Services *15%+ recurring11% 39% Devices *50% recurring • Badges • Batteries, chargers, accessories Diversified Revenue Streams
- 20. (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 2016 Highlights Adjusted EBITDA $28.4 $36.0 $104.1 $127.7 Q415 Q416 2015 2016 ($inMillions) $0.2 $1.3 -$2.8 $4.3 Q415 Q416 2015 2016 ($inMillions) Q4/2016 Results exceeded expectations • Q4: 27% Revenue Growth, 2016: +23% • Q4: 46% Software Growth, 2016: +35% • 27% Backlog and Deferred Revenue Growth Solid Customer Base and Value Proposition • 95%+ s/w maintenance renewal rate • Strong competitive win rate Expanding Profitability and Cash Flow • A-EBITDA $4.3 million in 2016 • $11.4 million operating cash flow in 2016 20 +27% +23% Q4’16 Financial Highlights
- 21. 21 2017 Revenue Visibility $4.2 Rev from Def. Rev/BL Supplies Visible Revenue Book-ship 2017 Revenue $161M 65-70%
- 22. 22 Actual 2014 2015 2016 R&D % of Revenue 17% 15% 13% S&M % of Revenue 47% 41% 37% G&A % of Revenue 13% 12% 11% ~$200M Target Model 12% 29% 8% Sales Notes • All numbers are non-GAAP • Mean peer group enterprise value comps are 3-4x Revenue and 12-15x A-EBITDA Drivers Operating Leverage Drives Significant Value
- 23. Thank you!