Vocera investordeck december web
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Transcript of Vocera investordeck december web
December 2016
Investor Review
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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Significant Value Creating Opportunity
• Large Market shifting towards VoceraPlatform Offering
• Market Leader with Compelling ROI
• Recent Large wins Validate Sales Strategy
• Recent software acquisition extends Platform
• Accelerating toward long-term 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
$95 $104
$128
-13%
-3%
3%
FY14 FY15 FY16 Guide- High**
Revenue A-EBITDA %*
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Forces in Healthcare Driving Change
EHR Pain Points
Sales Enablement
Vocera Software Platform
Technology Forces & Population Health
Embrace Innovation, Patient Focus
Right team, tools, compelling ROI.
Meaningful Use Hangover.
Time, resources now focus on better communication.
Centralized purchasing.
Expanded Functionality, 120+ Integrations, Device-of-Choice
Outside Forces Vocera Execution
Healthcare Communication Challenges
(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
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Strategic Evolution
Communications
Badge-Centric
Point Product
Department Sale
Clinical Workflow
Software-Centric
Complete Solution
Enterprise Sale
Vocera Before Vocera Now
• 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
Our Opportunity: Multiple Avenues for Growth
Attractive International Markets
• Canada
• United Kingdom
• Saudi Arabia
• UAE
• Qatar
• Australia
• Singapore
• Malaysia
Core Customer Growth
Software
New Users
International Expansion
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Our Mission
Quality ExperiencePatient-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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Vocera Clinical Communication and Collaboration Platform
Communicate Engage
Experience
9
Improve response times, patient care,
safety and satisfaction
Over 120 clinical integrations
Secure Text, Voice, Image
Enterprise-Grade Communication Platform
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Hospital Staff Physicians Post Acute Home
Badge MC40-HC iPhone Android Tablets Desktop
Voice Secure Texting Clinical Integration and Workflow
Patient Engagement
Vocera Software PlatformCommunication and Clinical Workflows
Master Directory with Care Team Sync
Staff Assignment and On-Call Scheduling
Analytics and Reporting
Certified Security
Clinical System Integrations
Our Enhanced Platform
EHR
Clinical Systems
Location
Scheduling
Messaging
Voice
Vocera Core Platform
Engage(Workflow)
Acquisition Enhancements11
Integrated with 120+ Clinical Systems
Vocera’s Clinical Integrations
EHR Nurse Call
Physiologic Monitoring
Patient Management
RTLS Fall Prevention
Enhance Patient Safety
IncreasePatient Satisfaction
ImproveTeam Efficiency
DecreaseLength of Stay
Platform integration delivers critical alerts to the right user, with the right information, at the right time and place, on their device of choice
Patient SatisfactionCare Team Efficiency
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The Device of Choice Differentiator
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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
Healthcare Recent Platform Wins Validate Strategy
(1) Joint Commission, an independent healthcare accreditation organization(2) Agarwal et. al. Univ. of Maryland, 2010 14
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Competitive Landscape
Scalable, Secure and Integrated = we consistently win >70% of competitive sales
Stat
us
Qu
o
• Pagers
• Overhead Paging
• Shouting or Walking
Wir
ele
ss
De
vice
s • Spectralink
• Cisco
• Ascom
Smar
tph
on
e
Ap
ps
• 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
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Compelling Return on Investment
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 to9 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
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Diversified Revenue Streams
• 60% revenues are recurring
• High visibility
• Low customer concentration
% of 2015 Revenue Revenue Streams
• Perpetual licenses • Subscriptions
Software*20% recurring
15%
• Software maintenance• Technical support
Maintenance*All recurring
37%
• Professional services• Deployment & training
Services9%
39% Devices *50% recurring
• Badges• Batteries, chargers, accessories
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Q416 Revenue Visibility
Visibility to approx. 90% of top-end revenue guidance
$36.3M
(1) Earnings before interest, taxes, depreciation and amortization, and further
excludes stock -based compensation and change in fair value of warrant and option liabilities.
Q3’16 & YTD Financial Highlights
Revenue Q3 2016 Highlights
Adjusted EBITDA
$26.5 $33.8
$75.7 $91.7
Q3 15 Q3 16 YTD 15 YTD 16
($ in
Mill
ion
s)
-$0.4
$2.6
-$3.0
$3.3
Q315 Q316 YTD 15 YTD 16
($ in
Mill
ion
s)
Q3 Results exceeded expectations • 28% Revenue Growth
• Software up 32% YTD 2016
• Record Q3 Backlog, and Deferred Revenue; balanced growth
Solid Customer Base and Value Proposition• 95%+ s/w maintenance renewal rate
• Strong competitive win rate
Expanding Profitability and Cash Flow• A-EBITDA $2.6 million
• Positive operating cash flow
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+28% +21%
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Operating Leverage Drives Significant Value Creation Opportunity
Actual
2014 2015 YTD 16
R&D % of Revenue 17.2% 15.3% 13%
S&M % of Revenue 47.4% 41.3% 38%
G&A % of Revenue 12.8% 11.8% 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• Base year for CAGR calcs is 2015
+24%
3-yr CAGR
12%
10%
9%
+14%
5-yr CAGR
7%
6%
5%
Drivers
Growth Horizon
Thank you!