Vocera (NYSE:VCRA) Jumps By 30%+ Following Key Reveal In Q2 Call

The Vocera B3000N badge's prototype submitted to the Federal Communications Commission (FCC) for approval.

Healthcare communications products and services provider Vocera Communications, Inc (NYSE:VCRA) announced its earnings results for the second quarter of 2020 yesterday. The company, which is responsible for providing healthcare professionals with devices and services that permit them to stay in touch with patients, reported $47 million in revenue and $3.5 million in GAAP net loss. Heading into the earnings, Wall Street analysts had expected the company to mail $0.05 in loss-per-share and Vocera vanquish this estimate past posting $0.10 in earnings per share (not-GAAP EPS), marking for 43% year-over-twelvemonth growth.

The big surprise for investors in the earnings call however was not only the EPS beat out. Instead, Vocera's management announced that instead of competing with Amazon'southward Alexa for the communication needs between caregivers and their patients, the company will instead piece of work with Amazon. Every bit a effect, Vocera'due south share cost jumped by roughly 15% in pre-market trading before market place open today, and as trading commences, they are standing to maintain this momentum.

Vocera Communications Maintains Pre-Market place Share Cost Momentum Post-obit Market Open Afterward Visitor's Primal Reveal In Q2 2020 Earnings

Following the earnings reveal, analyst across the board expressed their optimism for Vocera every bit they continued to upgrade their toll targets for the company. The upgrades came from Piper Jaffray, Craig Hallum, RBC Majuscule and Wells Fargo, with the firms' new price targets for the company now standing at $28, $30, $27 and $28 respectively.

Commenting on the earnings release and the subsequent call, Hallum analyst Matt Hewitt noted in an investor annotation that he does not consider Amazon's Alexa to be a threat to Vocera's Smartbadge since caretakers using the bluecoat will be able to communicate with patients who are using the Alexa smart speaker.

The Vocera Smartbadge allows for easily-free communication between patients and caregivers.

The upcoming compatibility between Amazon's Alexa and Vocera'due south Smartbadge was announced by the latter'south chief executive officer Mr. Brent Lang. Mr. Lang revealed in the earnings phone call that his visitor is working on a new skill set that volition allow patients in Intensive Care Units (ICUs) and other rooms to communicate with the caretakers in charge of them. This feature will follow Vocera'south earlier plans of using the Smartbadge for inter-patient communications in ICUs.

The executive's full comments (courtesy of The Fool) are as follows:

As a visitor, we accept connected to advance the ball with a sense of urgency. Our engineering science and product teams continue to innovate and deliver solutions that are grounded in our clinical approach to the market and our deep knowledge of our customers. Concluding quarter, we talked about using our Smartbadge strapped to the bed for patient communications in ICU rooms that are beingness used at double capacity. Expanding this to a whole other level, we are developing a new Alexa skill that will let patients to utilise vocalization commands to communicate with their care team on Vocera through an Amazon Echo in the room.

Vocera intends to deport pilot projects of this feature afterwards this year, and some of the use cases highlighted by the company'south C.E.O. cover questions well-nigh staff identity, working hours and the communication of other needs.

The visitor's products also feature security features that cover AES 256 encryption, SOC 2 Blazon 1 audit criteria and Department of Defense Balls Certification and Accreditation Procedure (DoD DIACAP) requirements. Additionally, they have also been cleared past authorities to operate secure networks, with the Vocera B2000, B3000, and B3000n badges having cleared Federal Information Processing Standard (FIPS 140-two) cryptographic requirements.

As the day unfolds, Vocera stock is soaring to new highs, after having gained an astounding 36% over Mon'south endmost cost on 10:24 ET. Even so, the shares are yet short of their all-time high toll of $41 that they reached early last year.