Investor Presentation. November 2012

Transcription

1 Investor Presentation November 2012

2 Notices This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. Sales and offers to sell Vocera Communications, Inc. securities will only be made in accordance with applicable securities laws. This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. It may not be retained, reproduced or distributed, in whole or in part, by any means (including electronic) without the prior written consent of Vocera. Forward-Looking Statements: Statements in this presentation that are not strictly historical in nature are forward-looking statements within the meaning of the U.S. federal securities laws, including statements regarding our market opportunity, performance and benefits of our solutions, scalability of our business, our strategic and operational plans, our future financial performance, and our future growth. These forward-looking statements are based on limited information currently available to Vocera and our management s expectations that are inherently subject to change and involve risks and uncertainties. Actual results may differ materially from those in any forward-looking statement due to various factors, including but not limited to the demand for our solutions in the healthcare market; our lengthy and unpredictable sales cycle; our ability to offer high-quality services and support for our solutions, to acquire the sole and limited source hardware and software components of our products, to obtain the required capacity and product quality from our contract manufacturer, to develop and introduce new solutions and features to existing solutions and to manage our growth; and the other risk factors described in Vocera s prospectus dated September 4, In addition, Vocera s historical operating results are not necessarily indicative of Vocera s operating results for any future periods. The financial and other information contained in this presentation should be read in conjunction with the financial statements and related notes included in Vocera s prospectus dated September 4, This presentation speaks only as of its date. Vocera assumes no obligation to revise or update any forward-looking statements or the reasons actual results could differ materially from those anticipated. Non-GAAP Measures: This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Our management evaluates our company s results and makes operating decisions using various GAAP and non-gaap measures. We present the non-gaap measures because we consider them to be important supplemental information for our investors for analyzing Vocera s performance, core operating results and trends. The non-gaap financials should be considered along with our GAAP financials as such financials are not an alternative or substitute for GAAP. Investors are encouraged to review the reconciliation of non-gaap financial measures to their most directly comparable GAAP measures included with this presentation. Third Party Data: This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.

3 Presenting Management Bob Zollars Chairman and CEO present Neoforma (NASDAQ: NEOF) Chairman and CEO, Cardinal Health (NYSE: CAH) Section 16 Officer EVP, Baxter Int l (NYSE: BAX) Led multiple divisions, (including positions held at American Hospital Supply) Brent Lang President and COO present Vocera Communications VP of Marketing ( ) 3Com Corp. ( ) Senior Director of Marketing Monitor Group ( ) Strategy Consultant William Zerella CFO present Force 10 Networks ( ) CFO, VP Finance & Admin Infinera Corp ( ) CFO, VP Finance & Admin Calient Networks ( ) CFO, VP Finance & Admin 3

4 Investment Highlights Strong growth with diversified revenue streams and high visibility Unique Voice Communication solution Multi-Billion dollar market opportunity Healthcare IT software platform with significant cross-selling opportunities Recognized and trusted brand Broad and loyal customer base Strong track record of financial performance 4

5 Business Overview

6 Vocera Snapshot Provider of mobile communication solutions addressing critical communication challenges facing hospitals Founded February 2000 Deployed in over 800 hospitals and healthcare facilities +300 employees as of Sept. 30, 2012 Headquartered in San Jose, CA $41 $57 $ CAGR: +39% $ YTD September Revenue ($ in Millions) 6

7 Communication Challenges in Healthcare 69% of accidental deaths and serious injuries in hospitals are linked to communication failures (1) 37% of patient hand-offs were defective and did not allow caregiver to effectively care for the patient (1) $12 billion is wasted annually in U.S. hospitals as a result of communication inefficiencies (2) Communication is a big part of patient satisfaction survey which could affect reimbursement rates starting in 2012 (3) (1) Joint Commission, an independent healthcare accreditation organization (2) Agarwal et. al. Univ. of Maryland, 2010 (3) CMS HCAHPS Hospital Compare Data 7

8 Instant Voice Communication Pre Vocera Post Vocera Current Hub and Spoke Communication Direct Wireless Communication Vocera empowers clinical staff to communicate directly to the right person on the care delivery team 8

9 Market Opportunity Convergence of Two Attractive Markets Healthcare IT ~ $100B Fully Integrate Workflow Enterprise Communications & Collaboration ~ $22B Enable or Replace Source: MarketsandMarkets.com, Synergy Research Group 9

10 Multi-Billion Dollar Addressable Market U.S. Healthcare Market International Healthcare Market Other Vertical Markets Vocera Customers: 700+ Vocera Customers: 90+ 6,928 Hospitals in the U.S. (1) Hospital Size (Beds) U.S. Hospitals Vocera Hospitals Total 6, Over $6 Billion Global Market Opportunity in Hospitals for our Voice Communication Solution (2) (1) Billians Market Data (2) Company estimates 10

11 Diverse Healthcare Customer Base Academic Health Systems Government Community / Rural Largest end customer was 2.8% of revenue in hospitals and health systems have spent >$1.0M 11

12 ROI: Addressing Top Hospital Issues Increase Revenue Decrease Expense Quick Payback Improve Reimbursement $3M increase in annual patient revenue from improved Emergency Department throughput (1) $2M increase in annual revenue capacity due to operating room throughput and turnover efficiency (2) 45% less time looking for people and resources (3) Reduction in overtime and improvement in nurse recruitment and retention Potential for one additional surgery per day as a result of a 5% throughput improvement in the operating room represents a rapid payback (2) Medicare/Medicaid reimbursement, tied to HCAHPS patient satisfaction scores (1) Customer hospital with nearly 400 beds (2) Academic research study commissioned by Vocera of a hospital in the Midwest (3) Customer teaching and research hospital 12

13 Multiple Avenues of Growth Expand in non-healthcare Expand internationally Develop and acquire new products Penetrate installed base Add new hospitals 13

14 Vocera Solutions Voice Communication Secure Messaging Care Transition Vocera Communication Platform Scalable software platform delivers critical information to the right audience at the right time 14

15 Voice Communication Solution Features Badge Server Software Intelligence Infrastructure Vocera Connect Wearable, hands-free, voice controlled User database, speech recognition, call control Call by name, role, group; broadcast, locate Wi-Fi wireless, connects to PBX and clinical systems BlackBerry, iphone, Android, and Cisco clients 15

16 Vocera B3000 Communication Badge Durable Lightweight Design Speech Zone Magnesium Alloy Spine Smart Battery Technology 16

17 Communication Processes are Antiquated and Lead to Mistakes Call Sheet 17

18 Vocera Connects the Right People Together in a Timely Manner Send a message to ICU nurses Broadcast to OR turnover Call Sheet Urgent broadcast to rapid response Call room 203 nurse Broadcast to discharge team Call a transport tech Locate team members 18

19 Over 40 Clinical Systems Integrated with our Software Platform Nurse call Patient monitoring Bed management EMR RTLS / RFID Enhance Patient Safety Increase Patient Satisfaction Improve Nurse Responsiveness Decrease Length of stay Platform integration delivers critical alerts to the right user on their Vocera device 19

20 Real Impact on Hospital Performance Traditional Challenges Benefits of using Vocera Lack of closed loop communication Improve patient safety Reduced alarm closure time from over 9 minutes to under 40 seconds (1) Inability to reach the right person Streamline patient flow 80% reduction in diversion hours for the ER (2) Noisy environment Enhance patient experience 94% reduction in use of overhead paging (3) Time away from the bedside Increase staff empowerment Reduce time spent looking for other people by 45% (4) (1) Customer hospital with over 500 beds; (2) Customer hospital with nearly 400 beds; (3) Study commissioned by Vocera of a hospital with over 300 beds; (4) Customer teaching and research hospital 20

21 Barriers to Entry Software 12 years of development 21 U.S. patents issued / pending Intelligent software platform Speech recognition tuning Multi-language support First Mover Unique Solution Devices Hands-free, lightweight Multi-platform support Wi-Fi & VoIP expertise Noise cancellation Durability Proprietary IP Strong Brand Network 800 healthcare customers Integration with clinical systems 100+ sales & services people 20 nurses on staff ExperiaHealth Consulting 21

22 Financial Overview

23 Compelling Financial Profile Large market Strong track record of revenue growth Highly visible, repeatable revenue streams A broad and diverse healthcare customer base Strong gross margin profile with path to further expansion Capital efficient with strong cash flow 23

24 Diversified Revenue Streams % of 2011 Revenue Revenue Streams 47% Devices Badges Batteries, chargers, accessories High visibility 16% 27% Software Maintenance Perpetual licenses Subscriptions Software Maintenance Technical Support Strong recurring revenue No customer concentration 10% Services Professional services Deployment & training 24

25 Initial Customer Deployment Example Revenue Streams Example Initial Deployment (1) Devices $ 100,000 28% Software $ 140,000 39% Maintenance $ 40,000 11% Services $ 80,000 22% Total $ 360,000 (1) Company estimates based upon illustrative purchase of 200 enterprise user licenses, 200 badges, 400 batteries and associated accessories, based on 2011 data 25

26 Quarterly Bookings Patterns Lead to High Visibility New Customer Deployments New Badges & Licenses Additional deployments within existing customers New Customers Badges & Accessories Sold into existing deployments Expansions Expansions Highly Visible Software Maintenance Supplies Supplies Supplies Business Model Maintenance Maintenance Maintenance Maintenance 26

27 Strong Revenue Growth Revenue Deferred Revenue ($ in Millions) CAGR: +39% ($ in Millions) CAGR: +33% $80 $74 $57 $34 $40 $41 $22 $25 $16 $ Sept. YTD /30/12 27

28 Recent Financial Performance ($ in Millions) $58 Revenue $74 Growth: +28% Q Highlights Continued strong growth of core Voice Communication solution Margin expansion driven by strong software sales and lower unit costs for the B3000 badge 2011 YTD Sept YTD Sept. ($ in Millions) $1.8 EBITDA (1) $8.8 Growth: +380% B3000 badge shipments represented 71% of total in Q Launched Vocera Mobility Business Unit to capitalize on the opportunity outside of healthcare 2011 YTD Sept YTD Sept. (1) Earnings before interest, taxes, depreciation and amortization, and further excludes stock based compensation and change in fair value of warrant and option liabilities. 28

29 Balance Sheet ($ in Millions) As of 9/30/12 Cash & Cash equivalents $121.0 Total Assets $158.7 Deferred Revenue $25.5 Total Borrowings - Total Liabilities $

30 Investment Highlights Strong growth with diversified revenue streams and high visibility Unique Voice Communication solution Multi-Billion dollar market opportunity Healthcare IT software platform with significant cross-selling opportunities Recognized and trusted brand Broad and loyal customer base Strong track record of financial performance 30

31 Helping customers save steps, save time, save lives.

32 Appendix

33 Non-GAAP Reconciliation Three Months ended Sept. 30 Nine Months ended Sept. 30 ($ in thousands) GAAP Net income (loss) $1,737 ($900) $2,082 ($2,242) Add back: Stock compensation expense 1, ,671 1,435 Non-cash stock warrant expense - (286) 1, Interest, net (60) 107 (12) 221 Depreciation and Amortization ,930 1,276 Income tax expense Non-GAAP Adjusted EBITDA $3,764 $65 $8,722 $1,837 33