vocerainvestordeck january-2017final
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January2017
InvestorReview
Thispresenta8oncontainsforward-lookingstatementsreflec8ngourcurrentexpecta8onsthatinvolverisksanduncertain8eswhicharesubjecttosafeharborsundertheSecuri8esActof1933,asamended,ortheSecuri8esAct,andtheSecuri8esExchangeActof1934,asamended,ortheExchangeAct.Theseforward-lookingstatementsmayinclude,butarenotlimitedto,statementsconcerningourplans,objec8ves,expecta8onsandinten8ons,futurefinancialposi8on,futurerevenues,projectedcosts,expecta8onsregardingdemandandacceptanceforourtechnologies,growthopportuni8esandtrendsinthemarketinwhichweoperate,prospectsandplansandobjec8vesofmanagement.Thewords“an8cipates,”“believes,”“es8mates,"“expects,”“intends,”“may,”“plans,”“projects,”“will,”“would”andsimilarexpressionsareintendedtoiden8fyforward-lookingstatements,althoughnotallforward-lookingstatementscontaintheseiden8fyingwords.Wemaynotactuallyachievetheplans,inten8onsorexpecta8onsdisclosedinourforward-lookingstatements,andyoushouldnotplaceunduerelianceonourforward-lookingstatements.Theseforward-lookingstatementsinvolverisksanduncertain8esthatcouldcauseouractualresultstodiffermateriallyfromthoseintheforward-lookingstatements,including,withoutlimita8on,theriskssetforthinPartII,Item1A,“RiskFactors”inourQuarterlyReportsonForm10-QandinourotherfilingswiththeSecuri8esandExchangeCommission.Wedonotassumeanyobliga8ontoupdateanyforward-lookingstatements.
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Forward-LookingStatements
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• LargemarketshiXingtowardsVocera
• MarketleaderwithcompellingROI
• Largewinsvalidatesalesstrategy• SoXwareacquisi8onextendspla]orm
• Accelera8ngtowardtargetfinancialmodel
*Earningsbeforeinterest,taxes,deprecia8onandamor8za8on,andfurtherexcludesstock-basedcompensa8onandchangeinfairvalueofwarrantandop8onliabili8es.
**Representsthehighendofthecompany’sguidancerange
[VALUE]M
[VALUE]M
$128M
-13%
-3%3%
FY14 FY15 FY16Guide-High**
Revenue A-EBITDA%*
SignificantValueCrea8ngOpportunity
(1)JointCommission,anindependenthealthcareaccredita8onorganiza8on(2)Agarwalet.al.Univ.ofMaryland,2010
92%ofphysiciansuseunsecuredSMStextforpaRentcare,leadingtodatabreechesandHIPAAviola8onsresul8nginover$1.5Minfinesperyear
EfficientcommunicaRonisaprimarycomponentindrivingpa8entengagementandsaRsfacRon
NursesoXenonlyspend20%oftheirRmedeliveringdirectcareatthepa8entbedside
69%ofaccidentaldeathsandseriousinjuriesinhospitalsarecausedbycommunica8onsbreakdowns1
CybercriminalsareincreasinglygoingaXertargetsinthemedicalandhealthcarever8cals
$12billionwastedannually
InU.S.hospitalsasaresultofcommunica8oninefficiencies2
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HealthcareCommunica8onChallenges
MarketForces VoceraForces
5
Poli%calForces
Sales&Marke%ng
Product
TechnologyForces
DeviceofChoiceCC&C
UnifiedPla3orm
ROISellingCrossSelling
System-levelDeals
MeaningfulUseHangoverACARepeal
Medicare/MedicaidHospitalBudgets
ScalabilityIntegraGon
UnifiedPla3orm
StrongBacklog/DefRevenue
ApproachingTargetmodel
2017Context
VoceraBefore VoceraNow
Communica8ons
Badge-Centric
PointProduct
DepartmentSale
ClinicalWorkflow
SoXware-Centric
CompleteSolu8on
EnterpriseSale
StrategicEvolu8on
• LargeSystemDeals• Furtherpenetrateexis8ng
healthsystemcustomers• Con8nuepaceofnew
customeracquisi8on
Buildingmomentumacrossnewproducts• EHRIntegra8on• Collabora8onSuite• ClinicalIntegra8on• EvenDrivenAlerts• CareExperience
ExtendReachtoNewUsers• Physicians• LongTermCare• SurgeryCenters
A^racRveInternaRonalMarkets• Canada• UnitedKingdom• SaudiArabia• UAE• Qatar• Australia• Singapore• Malaysia
CoreCustomerGrowth
So_ware
NewUsers
InternaRonalExpansion
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OurOpportunity:Mul8pleAvenuesforGrowth
Quality ExperiencePaRent-CenteredCostEnhancehowcareisprovidedtohelppa8entstoachievebeneroutcomes
IncreaseOpera8onalEfficiencies
Improvepa8entexperiencebyallowing
caregiverstobePa8entCentered
Improvethecaregiverexperiencebyimprovingworkflowandempowering
careteams
TheQuadrupleAim
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OurMission
Byenablingthecareteamtogetthedata,context,presence,andinsightsneededto…AchievetheQuadrupleAim
FocusonthePaRent
Enhanceworkflows
MakeinformaRonandhelpeasiertofind
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HowDoWeDoThat?
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Communicate Engage
ExperienceImproveresponse8mes,pa8entcare,
safetyandsa8sfac8on
Over120clinicalintegra8ons
SecureText,Voice,Image
ClinicalCommunica8onandCollabora8on
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HospitalStaff Physicians PostAcute Home
Badge MC40-HC iPhone Android Tablets Desktop
Voice SecureTex8ng ClinicalIntegra8onandWorkflow
Pa8entEngagement
VoceraSo_warePladormCommunica8onandClinicalWorkflowsMasterDirectorywithCareTeamSyncStaffAssignmentandOn-CallScheduling
Analy8csandRepor8ngCer8fiedSecurityClinicalSystemIntegra8ons
Enterprise-GradeCommunica8onPla]orm
Vocera’sClinicalIntegraRons
EHR NurseCall
PhysiologicMonitoring
Pa8entManagement
RTLS FallPreven8on
EnhancePa8entSafety
IncreasePa8entSa8sfac8on
ImproveTeamEfficiency
DecreaseLengthofStay
Pla]ormintegra8ondeliverscri8calalertstotherightuser,withtherightinforma8on,attheright8meandplace,ontheirdeviceofchoice
PaRentSaRsfacRonCareTeamEfficiency
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Integratedwith120+ClinicalSystems
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TheDeviceofChoiceDifferen8ator
KeyDifferenRators:• Enterprise-classpla]orm
(vscobblingtogethervendors)
• ClinicalIntegra8on• DeviceofChoice(AppleandZebra)• VoceraBadgeresonateswithnursing• SuperbReferences• World-ClassSupport
andProfessionalServices
(1)JointCommission,anindependenthealthcareaccredita8onorganiza8on(2)Agarwalet.al.Univ.ofMaryland,2010 14
MEDCOM
HealthcareRecentPla]ormWinsValidateStrategy
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Scalable,SecureandIntegrated=weconsistentlywin>70%ofcompe88vesales
StatusQuo
• Pagers• OverheadPaging• Shou8ngorWalking
Wire
less
Devices • Spectralink
• Cisco• Ascom
Smartpho
ne
Apps
• Voalte• TigerText• Tex8ngSolu8ons• MobileApps
ü Completeend-to-endsolu8on
ü Role-basedintelligenceü DeviceofChoiceü Ease-of-useü Hands-free
ü Clinicalintegra8onü Enterpriseclassü Trustedproviderü Purpose-builtdeviceü Worldclassserviceandsupport
Compe88veLandscape
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10minutespernursepershi_
Bedturnoverratesup50%
ORrevenuesup$780,000
350moreannualORcapacityhours
4,000annualEDhoursrecaptured
OperaRonalEfficiency
Response8mesdownfrom2minutesto9seconds
35%overallSatRa8ngimprovement
25%improvementinHCAHPSscores
Fallrelatedinjuriesdown60%;es8mated$1.27mmsavings
PaRentSafetyandSaRsfacRon
CompellingReturnonInvestment
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• 60%revenuesarerecurring
• Highvisibility• Lowcustomerconcentra8on
%of2015Revenue RevenueStreams
• Perpetuallicenses• Subscrip8ons
So_ware*20%recurring15%
• SoXwaremaintenance• Technicalsupport
Maintenance*Allrecurring37%
• Professionalservices• Deployment&trainingServices9%
39% Devices*50%recurring
• Badges• Baneries,chargers,accessories
DiversifiedRevenueStreams
(1)Earningsbeforeinterest,taxes,deprecia8onandamor8za8on,andfurtherexcludesstock-basedcompensa8onandchangeinfairvalueofwarrantandop8onliabili8es.
Revenue Q32016Highlights
AdjustedEBITDA
$26.5 $33.8$75.7 $91.7
Q315 Q316 YTD15 YTD16
($inM
illions)
-$0.4
$2.6
-$3.0
$3.3
Q315 Q316 YTD15 YTD16
($inM
illions)
Q3ResultsexceededexpectaRons• 28%RevenueGrowth• SoXwareup32%YTD2016• RecordQ3Backlog,andDeferredRevenue;balancedgrowth
SolidCustomerBaseandValueProposiRon• 95%+s/wmaintenancerenewalrate• Strongcompe88vewinrate
ExpandingProfitabilityandCashFlow• A-EBITDA$2.6million• Posi8veopera8ngcashflow
18
+28% +21%
Q3’16&YTDFinancialHighlights
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Actual 2014 2015 Q1-Q3‘16
R&D%ofRevenue 17.2% 15.3% 13%
S&M%ofRevenue 47.4% 41.3% 38%
G&A%ofRevenue 12.8% 11.8% 11%
~$200MTargetModel
12%
29%
8%
Sales
Notes• Allnumbersarenon-GAAP• Meanpeergroupenterprisevaluecompsare3-4xRevenueand12-15xA-EBITDA
Drivers
Opera8ngLeverageDrivesSignificantValue
Thankyou!
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BroadcasttoORTurnover
Callon-callOrthopedicSurgeon
Securetexttoon-callCardiologist
UrgentcalltoEDChargeNurse
TheCallSheetTransformed
MEDCOM
Vocera:StandardintheVAandDoD
• StrongchampionatDoD• ROIstudyatEvansArmyHospital• ImprovedPa8entSa8sfac8on• ImprovedOpera8ngEfficiency
• $14MbookinginQ3andQ4‘16• 23facili8esdeployedin’17&‘18
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32
Won
Greenfield67DoDfaciliGes
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112 Won
Greenfield153VAfaciliGes
EHR
EvansArmyCommunityHospital(EACH)92BedMilitaryTreatmentFacility(MTF)–APartofColoradoSpringsMilitaryHealthSystem,ColoradoSprings,ColoradoChallenge:Improvestaff-to-staffandstaff-to-pa8entcommunica8oninphysicallychallengingloca8ons
Pa8entandStaffSa8sfac8on
• Duetodistanceoffacili8es,loca8ons,andphysicallayoutofeachdepartment,thereisacommunica8onbarrierbetweenstaffmembersaswellasbetweenstaffandpa8ents
• Forthelastthreeyears,TheJointCommissionhasiden8fiedcommunica8onasoneofthetop3rootcausesofsen8nelevents
• 20%improvementininpa8entsa8sfac8onover10months:expectedreturnsofover$150,000/quarter
• 88%reduc8oninpa8entfallswithin10months.Hospital-wideimplementa8onyearlypoten8alcostavoidanceofover$94,000
• Keysecuritycer8fica8onsenabledMEDCOMtoestablishVoceraasenterprisestandard
Situa8on Approach Impact• InJune2012,theVoceraBadge,awearable,voice-controlleddeviceenablinghands-freecommunica8on,wasimplementedintheED.Bytheendof2015,itwasrolledouttomul8pledepartments.
• Thesolu8onwasintegratedwithalarmandalertsystemsandnursecallsystems:• Pa8ent-to-staff,andstaff-topa8ent• Painbunon
ImproveQualityofPa8entCareandSafety,andPa8entandStaffSa8sfac8on
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• TheVocera differenGatedusfromVoalte• capabili8eswithEPIC,NurseCall–partneringwithConnexall
• Abilitytoprovide• organiza8onsolidifiedusasapartnertotrust
• Compe88vedisplacementof5000Users• 1,250EnterpriseSoXwareLicenseexpansion• Collabora8onSuitefor1,100MC-40smartphones• 150B3000nVoceraBadges• Integra8onswithNurseCallandeventuallyEpic• 3hospitals–Parkview,Randallia,andWhitley
• Futurerollouttoen8rehealthsystem–9hospitals
• Vocera currentlyinuseatWomen’sandChildren’shospitalresonatedwithnursing,providedinternalsupportforVocera,andsetusapart
• Excellentcustomer calls• Comprehensive
ParkviewHealth
• 5,000EnterpriseLicensessuppor8ngall14Hospitalsandover1,000Physicians
• Collabora8onSuitefor2,300sharedZebraMC40’sandBYOD• 900+sharedhands-freebadgesforED,OR,NICU,etc.• ClinicalWorkflowEngineintegra8ngwithallNurseCalland
Physiologicsystems,plusAlarmAnaly8csRepor8ngPackage• Epicbi-direc8onalintegra8onforTreatmentTeam,
EnvironmentalServices,andHaiku/RoverMobileApps• CareRoundingsolu8onforallin-pa8ent,enterprisewide
®
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• offerssinglesolu8onvsapatchworkofvendors
• UniqueRoleandGroupsbasedrou8ngdeliver• ,regardlessofdeviceorloca8on
• capabili8esandRoadmapobservedtobe“ayearaheadofthecompe88on”
• Vocera resonatedwithnursingandsetusapart• Excellent sitevisitandcalls• Comprehensive
FranciscanAlliance
• 4,000enterpriselicenses• Collabora8onSuite&ClinicalWorkflowEngine• 1,900Badges(alreadyexpanded)• 2,500iPhones• Integra8onswithEpicRover+NurseCall
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• TheVocera differen8atedusfromVoalteandcompe88on
• capabili8eswithEPICRover,NurseCall,AlarmManagement
• Vocera resonatedwithnursingandsetusapart
• Ourstrategicrela8onshipwith• Excellentcustomerreferencecalls• Maintenanceand tofulfillcustomerneeds
UniversityofNorthCarolinaHealthCare
Percentageofcustomerswhohaveusersinthefollowingcategories%
• Pharmacy• ClinicalEngineers/
Informa8cs• Dietary/Nutri8on• CommandCenter• Warehouse/
Materials• Phlebotomists
• Admi~ng• ED• Interpreters• PathLab• CaseManagement• Management/Admin• Biomed• Pastors• Ac8vityDepartment• Quality/Risk
Management
Others
Spring2015surveyofVoceracustomersconductedby
18%38%
59%61%68%72%78%81%81%
99%
OtherSecurity
ITorTelecomnPhysicians
RehabilitaRonTransportTechsHousekeeping
RespiratoryTherapistsImagingPersonnel
NursingStaff
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ExpandingUserBase
U.S.HospitalsandHealthSystems
28
850U.S.Hospitals 145InternaRonalHospitals 250non-healthcare
Washington,Cleveland,Tampa,Phoenix,AnnArbor
U.S.VAandDoD
EvansArmyHospitalFortCarson
IrwinArmyHospitalFortRiley
LandstuhlArmyMedicalCenterGermany
InternaRonal Non-Healthcare
Large,PassionateCustomerBase
29
UnifiedInboxforphonecalls,messages,alerts,alarmsfromclinicalsystems
MasterDirectorywithSynchedCareTeam,Roles,PresenceandAvailabilityIndicators
VoceraCollabora8onSuite
30
• Respiratorytherapyorders• Laborders• EKGorders• Blooddraworders• Sepsisearlywarnings• Infec8oncontrolteamalerts• Potassiumlevelalerts• AXerhoursimagingrequests• Socialworkconsults• Dietaryassessments• Housekeepingrequests• Andmore…
RichFunc8onality:EHRNo8fica8ons
VoceraCareTeamSync
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CareTeamSyncinformsandupdatestheMasterDirectory,facilitaRngaccuratecareteamassignments
Dr.Smith,PrimaryCarePhysician
Dr.Evans,Cardiologist
Dr.Jenkins,Hospitalist
StacyJones,Nurse
AdamNorth,Assistant
Dr.Smith,PrimaryCarePhysician
Dr.Evans,Cardiologist
Dr.Jenkins,Hospitalist
StacyJones,Nurse
AdamNorth,Assistant
Bi-Direc8onalSyncwiththeEHR
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NurseCall
FallPrevenRon&BedAlarms
PaRentFlow,RTLS,BedManagement
InteracRvePaRentEngagement
SmartphonesandTablets
ElectronicHealthRecords(EHR)
PhysiologicMonitoringandMedicalDevices
PartnerEcosystem
• IntelligentsoXwarepla]orm• Hands-free,lightweight• Purposebuiltdevice• Speechrecogni8oninterface• Mul8-pla]ormsupport• FIPS140-2,JITC,DoDATO• FDA510kpla]ormforalarmmanagementandsecuretex8ng
• Over95%renewalrates
• 1,400healthcarecustomers• Over500,000users• 275+sales&servicespeople• Roughly75quotacarryingreps
• 150+Engineers• 34+cliniciansonstaff• Pa8entexperiencecollabora8ve
• 15yearsofdevelopment• 29U.S.patentsissued–8pending• Mul8-variableclinicalrulesengine• Wi-Fi&VoIPexper8se• Proprietarynoisecancella8on• Integratedwith120+clinicalsystems
• Enterpriseclasssolu8on
FirstMoverwUniqueSoluRonwProprietaryIPwStrongBrand
VoceraDifferen8a8on
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TangiblebenefitsidenRfiedwithinthefirstsixmonthsaXerdeployingVocera
12%8%
20%30%
38%41%45%
71%73%
OtherIncreasedCostSavings
IncreasedPaRentSaRsfatcRonIncreasedPaRentThroughput
IncreasedPaRentSafetyReducedNoiseLevel
IncreasedCareTeamSaRsfacRonImprovedResponseTimes
IncreasedWorkflowEfficiencies
Spring2015surveyofVoceracustomersconductedby
WhatCustomersSayaboutVocera
EHR
ClinicalSystems
Loca8on
Scheduling
Messaging
Voice
VoceraCorePladorm
Engage(Workflow)
Acquisi8onEnhancements
OurEnhancedPla]orm
SOLUTION IMPACT
vCustomerExamples
vPROBLEM
• StudiesshowthatRNsareinterruptedabout128mesperhour,oronceevery5minutes
• Cri8calalarmsareoXenmissed,resul8nginpa8entharm.
Engagecutsthroughtheclunerandsendsonlyac8onableno8fica8onsrequiring8melyresponse,onthecaregiversmobiledeviceofchoice
• Improvementsinpa8entsafety• Reducedneedlessinterrup8ons• Nursescanspendmore8meatthebedsideandstayfocusedonpa8entneeds
VeteransAdministraRon:55%reduc8onofar8factalarms(falseposi8vealarms).WakeForest:“Priori8za8onofalarmshasbeenanributedto19pa8ent“saves”,wherewepreventedafailuretorescuesitua8on.”
*Kowalcyk,Liz.Pa8entalarmsoXenunheard,unheeded.February13,2011.hnp://www.boston.com/lifestyle/health/ar8cles/2011/02/13/pa8ent_alarms_oXen_unheard_unheeded/
EngageUseCase:InterrupRonFaRgue
v
vPROBLEM
• NICUstaffreceivealertsthatlackcontext.
• Nursemusttakeaddi8onalstepstolocatetherelevantcontextualinforma8on,causingdelaysinpa8entresponse
• Engagesendscontextualeventno8fica8onstocaregiver
• Relevantdatacaninclude:• Loca8on• CallerID• Levelofurgency• Gesta8onage• Statusofamnio8cfluid
• Earlyinterven8onsandinformed,8melydecisions
• Quickerresponsetopa8entneedsandimprovedoutcomes
• Improvedneonatalresuscita8oncompliance
CustomerExampleUniversityofMaryland:TheneonatologistandNICUstaffreceivecontextualalarmno8fica8onstotheirZebraMC40-HCsmobilesmartphones.Thecaregiverusestherelevantdatatomakefasterdecisionsthatimproveoutcomesandcompliance.
SOLUTION IMPACT
EngageUseCase:NeonatalResuscitaRon
v
vPROBLEM
• Therearebetween700,000and1,000,000pa8entfallsinhospitalseachyear
• ImplicaRon:Fallsposeaserioushazardtopa8entsafetyaswellsignificantlegalandregulatoryproblemsforthehospital
• Engagetechnologysendsbedexitalarmsdirectlytonurse’smobiledeviceinstantly
• Nursecallrequestscanbesentatvaryinglevelsofprioritybasedonapa8ent’sfallriskscore
Reduc8onsinpa8entfallsandtherelatedinjuriesandcosts.40%reduc8oninfallrate
CustomerExamplesNursingleadersusingEngagepresentedacasestudyatNICHE(NursesImprovingCareforHealthsystemElders)showinganROIof$1.06M.Researchfoundadecreaseinpa8entfallsfrom3.27per1,000to1.97per1,000.
SOLUTION IMPACT
EngageUseCase:PaRentFalls
Maintenance Maintenance
Supplies
Expansions
Supplies
Maintenance
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Supplies
Expansions
NewCustomers
Soldintoexis8ngdeployments
Addi8onaldeploymentswithinexis8ngcustomers
Maintenance
QuarterlyBookingsPanernsLeadtoHighVisibility
40Note:Companyes8matesbaseduponillustra8vepurchaseof200enterpriseuserlicenses,200badges,400baneriesandassociatedaccessories,basedon2015data.AlldevicesandsoXwarelicensesassume100%sharedusage,3users/deviceorlicense.SmartphoneonlyassumesthatconsumersprocuretheirownsmartphonesoutsideVocera.Mixedmodelassumes20%MC40smartphoneand80%badgemix.SmartphoneandMixedmodelsincludesaleofEngagesoXwaretohalfofavailablebedsaslabeled.
Revenue-IniRalDeployment $359 $295 $414 $546
GrossMargin-IniRalDeployment $21259%
$19365%
$24259%
$34163%
So_ware
Maintenance
Services
Devices
RevenueStreams ($inthousands)
Ini8alCustomerDeploymentScenarios
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