Why Vocera Communications Inc (NYSE: VCRA) stock is going gangbusters today

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Vocera Communications Inc (NYSE: VCRA) stock surged over 11% in the pre-market session of 27th July, 2020.

Revenues rose 5.8% yoy to over $47.3 million driven by solid bookings performance to respond to COVID outbreaks and large strategic wins with some new marquee customers. Device revenues were outstanding during the quarter rising over 17.9% to $17.1 million while Maintenance and support segment delivered the major growth in the services revenue segments increasing over 12.2% on a yoy basis. The firm’s professional services team showed ongoing deployments from both on-site and from their remote teams. Bad shipments were solid driven by their Smartbadge which showed solid momentum as customers recognize the value in choosing the right device for the right role.

The group’s backlog and deferred revenue rose 10% yoy to $127.5 million during the second quarter of 2020. Their adjusted EBITDA also improved during the quarter rising over 46% on a yoyo basis while GAAP net loss reached $3.5 million, again better than expected. Services margin improved on a yoy basis driven by better mix of software maintenance and support revenue and profitability gains. Non-GAAP operating expenses rose 4% yoy to $26.7 million as they were hiring on the most critical position in the near term while most of the workforce continued to work from home following local government guidelines, which led to lower travel expenses in the quarter.

The ongoing COVID pandemic led to several strategic wins for the firm as hospitals tried to prepare and respond to this crisis. In VA alone the firm booked over $6 million in large and strategic new facility wins. They also got $2 million expansion at UT Southwest, for Smartbadge. Norton which is a major client to the group shifted their plans to include Smartbadges rather than smartphones for certain roles. The cost savings which Smartbadge offers gives an edge than the smartphone. International opportunity also improved especially from the United Kingdom as funds became available for the motivated buyers trying to respond to the pandemic. Other product which is gaining traction is the group’s Vina Mobile App which helps to improve enterprise scale capability, both where in the United States and abroad.

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