Core Insights - Omnicell, Inc. reported a significant increase in adjusted earnings per share (EPS) for Q4 2024, reaching 60 cents, an 81.8% year-over-year surge, surpassing the Zacks Consensus Estimate by 5.2% [1][2] - Total revenues for Q4 2024 were $306.9 million, reflecting an 18.6% increase year-over-year and exceeding the Zacks Consensus Estimate by 3.3% [3] - The company anticipates total revenues for 2025 to be between $1.105 billion and $1.155 billion, with adjusted EPS expected in the range of $1.65 to $1.85 [7] Financial Performance - The GAAP EPS for Q4 2024 was 34 cents, compared to a loss of 32 cents in the same period last year [2] - For the full year, adjusted earnings were $1.71 per share, down 10.4% from the previous year [2] - Gross profit for Q4 increased by 34.5% year-over-year to $141.8 million, with a gross margin expansion of 547 basis points to 46.2% [5] Revenue Breakdown - Product revenues in Q4 declined by 25.1% year-over-year to $182.3 million, while service and other revenues increased by 10.1% to $124.6 million [4] - Total revenues for the full year 2024 were reported at $1.11 billion, down 3% from the previous year [3] Cash Flow and Financial Position - At the end of Q4 2024, Omnicell had cash and cash equivalents of $369.2 million, down from $468 million at the end of Q4 2023 [6] - Cumulative cash flow from operating activities at the end of Q4 was $187.7 million, compared to $181.1 million in the prior year [6] Strategic Developments - The company achieved notable wins in Q4, including service renewals and expansions with major medical centers and new contracts for specialty pharmacy programs [10] - The XT Amplify innovation program continues to gain traction, contributing to the company's growth [10] Market Reaction - Following the earnings announcement on February 6, OMCL shares rose by 1.9%, closing at $40.16 [3]

Investor Presentation February 6, 2025 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of federal securities laws. These forward-looking statements include statements with respect to 2025 guidance, strategic and growth opportunities, other expectations and other non-historical information. Without limiting the foregoing, statements including the words "expect," "intend," "may," "will," "should," "would," "could," "plan," "potential," "anticipate," "belie ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $307 million, an increase of $24 million from the previous quarter and an increase of $48 million compared to Q4 2023 [12][25] - Product revenues were $182 million, up $24 million from the previous quarter and up $37 million from Q4 2023 [12][26] - Service revenues reached $125 million, an increase of $1 million from the previous quarter and an increase of $11 million from Q4 2023 [12][26] - Non-GAAP gross margin for Q4 2024 was 47.4%, an increase of 290 basis points from the prior quarter [13][27] - GAAP earnings per share for Q4 2024 was $0.34, compared to $0.19 in the prior quarter and a loss of $0.32 in Q4 2023 [13][28] - Non-GAAP earnings per share for Q4 2024 was $0.60, compared to $0.56 in the prior quarter and $0.33 in the same period last year [13][29] - Non-GAAP EBITDA for Q4 2024 was $46 million, an increase of $8 million from the previous quarter and an increase of $23 million from the same period last year [13][29] Business Line Data and Key Metrics Changes - Product revenues increased due to improvements in the macroeconomic environment and the timing of XT Series systems implementation [26] - SaaS and Expert Services contributed to service revenue growth, reflecting strong customer demand [26][27] - Specialty Pharmacy services continued to gain traction, with notable wins in Q4 2024 [21] Market Data and Key Metrics Changes - The company noted favorable conditions in many addressable markets, with a focus on innovation and customer awareness [14] - Demand for products and services launched as part of the XT Amplify program continued to grow [11] Company Strategy and Development Direction - The company is transitioning to new bookings metrics starting in 2025, focusing on product bookings and annual recurring revenue (ARR) [7][38] - The strategy includes enhancing pharmacy and nursing efficiencies, reducing medication errors, and maximizing customer value from XT automated dispensing systems [48] - The company is excited about the customer response to the XT Amplify program and expects new products to contribute significantly to 2025 bookings [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving financial conditions of hospitals, which are expected to drive growth in 2025 [53][55] - The company anticipates continued demand for XT systems through expansions and new market share opportunities [41] - Management highlighted the importance of operational improvements and fiscal discipline in driving profitability [60][61] Other Important Information - Cash and cash equivalents at the end of Q4 2024 were $369 million, down from $571 million due to the convertible senior notes transaction [30] - Total backlog as of December 31, 2024, was $1,201 million, an increase from $1,143 million a year earlier [33] Q&A Session Summary Question: Can you expand on end-market demand and budget growth? - Management noted that improved hospital financial conditions have contributed to strong bookings and set the company up well for 2025 [53][55] Question: What is driving the product revenue ramp? - Management indicated that strong bookings and improved financial conditions of customers are driving product revenue growth [53][55] Question: How do you expect gross margin and operating expenses to trend in 2025? - Management expects continued improvement in gross margins due to effective expense management and favorable product mix [59][60] Question: Can you discuss the upside to bookings in 2024? - Management highlighted significant strength in demand for connected devices and additional bookings from XT upgrades as key contributors to improved bookings performance [67] Question: What are your thoughts on the new administration's focus on technology innovation? - Management believes the focus on efficiency and safety aligns well with the company's core strengths and innovation goals [78] Question: What is the outlook for annual recurring revenue (ARR)? - Management anticipates ARR to continue growing, with specialty pharmacy services being a key driver [110] Question: What are the capital deployment priorities over the next 12 months? - Management is assessing capital deployment strategies to ensure long-term sustainable growth [102]

Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were $307 million, an increase of $24 million from the previous quarter and an increase of $48 million compared to Q4 2023 [9][17] - Product revenues were $182 million, up $24 million from the previous quarter and up $37 million year-over-year [9][17] - Service revenues reached $125 million, an increase of $1 million from the previous quarter and an increase of $11 million from Q4 2023 [9][17] - Non-GAAP gross margin for Q4 2024 was 47.4%, an increase of 290 basis points from the prior quarter [9][18] - GAAP earnings per share for Q4 2024 was $0.34, compared to $0.19 in the prior quarter and a loss of $0.32 in Q4 2023 [10][19] - Non-GAAP earnings per share for Q4 2024 was $0.60, compared to $0.56 in the prior quarter and $0.33 in the same period last year [10][19] - Non-GAAP EBITDA for Q4 2024 was $46 million, an increase of $8 million from the previous quarter and an increase of $23 million year-over-year [10][19] Business Line Data and Key Metrics Changes - Strong performance in connected devices and SaaS services, particularly specialty pharmacy services, contributed to revenue growth [17][19] - Product backlog as of December 31, 2024, was $647 million, with $447 million expected to convert to revenue within twelve months [21] - SaaS and expert services backlog was $555 million, with $93 million expected to convert to revenue within twelve months [21][22] Market Data and Key Metrics Changes - The company noted an improving macroeconomic environment, which positively impacted customer financial conditions and decision-making [10][33] - Demand for XT systems and specialty pharmacy services continues to grow, with several notable customer wins in Q4 2024 [11][12] Company Strategy and Development Direction - The company is focused on transforming pharmacy care delivery through innovation, including robotics, smart devices, and data analytics [11][29] - A new bookings metric will be introduced in 2025, focusing on product bookings and annual recurring revenue (ARR) [6][24] - The company anticipates product bookings for 2025 to be in the range of $500 million to $550 million, reflecting a flat to modest decline compared to 2024 [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improved financial conditions of customers and the potential for continued growth in 2025 [33][34] - The company expects to see a strong quarter-over-quarter growth trajectory, driven by strong bookings and customer demand [34][35] - Management highlighted the importance of operational improvements and fiscal discipline in driving profitability [39][40] Other Important Information - Cash and cash equivalents at the end of Q4 2024 were $369 million, down from $571 million at the end of Q3 2024 [19] - Non-GAAP free cash flow for Q4 2024 was $43 million, significantly higher than the previous quarter [19][20] Q&A Session Summary Question: Can you expand on end market demand and budget growth? - Management noted that improved hospital financial conditions have contributed to strong bookings and set the company up well for 2025 [33][34] Question: What are the drivers of gross margin and operating expense growth in 2025? - Management expects continued improvement in gross margins due to effective expense management and favorable product mix [39][40] Question: What contributed to the upside in bookings for 2024? - Significant strength in demand for connected devices and XT upgrades, along with solid demand for XT Xtend, contributed to improved bookings performance [45] Question: How does the new administration's focus on technology innovation impact the business? - Management believes the focus on efficiency and safety aligns well with the company's strengths and innovation goals [52][53] Question: What is the outlook for annual recurring revenue (ARR) in 2025? - ARR is expected to grow and contribute significantly to overall revenue, with specialty pharmacy services being a key driver [77][78]

Omnicell (OMCL) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.26%. A quarter ago, it was expected that this Omnicell Inc. Would post earnings of $0.41 per share when it actually produced earnings of $0.56, delivering a surprise of 36.59%.Over the last four quarters, the company ha ...

Financial Performance - Total revenues for Q4 2024 were $307 million, an increase of $48 million or 19% year-over-year[3]. - Total revenues for the fiscal year 2024 were $1.112 billion, a decrease of $35 million or 3% compared to 2023[3]. - Total GAAP net income for Q4 2024 was $16 million, or $0.34 per diluted share, compared to a GAAP net loss of $14 million in Q4 2023[4]. - Total non-GAAP net income for Q4 2024 was $28 million, or $0.60 per diluted share, compared to $15 million in Q4 2023[5]. - Net income for the year ended December 31, 2024, was $12,531,000, compared to a net loss of $20,371,000 in 2023[44]. - Operating cash flow for the year ended December 31, 2024, was $187,722,000, slightly up from $181,094,000 in 2023[44]. - Total revenues for Q4 2024 reached $306,879,000, a 18.6% increase from $258,847,000 in Q4 2023[40]. - Product revenues were $182,271,000 in Q4 2024, up from $145,655,000 in Q4 2023, representing a 25.1% growth[40]. - Service revenues increased to $124,608,000 in Q4 2024, compared to $113,192,000 in Q4 2023, marking a 10.8% rise[40]. - Gross profit for Q4 2024 was $141,761,000, a significant increase from $105,404,000 in Q4 2023, reflecting a 34.4% improvement[40]. - GAAP gross profit for Q4 2024 was $141,761 thousand, up from $105,404 thousand in Q4 2023, representing a 34.4% increase[46]. - Non-GAAP gross profit for Q4 2024 was $145,478 thousand, compared to $112,797 thousand in Q4 2023, reflecting a 29.0% increase[46]. - GAAP net income for Q4 2024 was $15,842 thousand, a significant recovery from a net loss of $14,375 thousand in Q4 2023[48]. - Non-GAAP net income for Q4 2024 reached $28,340 thousand, up from $15,013 thousand in Q4 2023, indicating an increase of 88.7%[48]. - Non-GAAP EBITDA for Q4 2024 was $46,424 thousand, compared to $23,742 thousand in Q4 2023, marking a 95.5% increase[50]. - Non-GAAP free cash flow for Q4 2024 was $42,747 thousand, up from $26,042 thousand in Q4 2023, representing a 64.2% increase[50]. - GAAP operating expenses for Q4 2024 were $129,365 thousand, slightly higher than $128,769 thousand in Q4 2023, with a decrease in operating expenses as a percentage of total revenues from 49.7% to 42.2%[46]. - Non-GAAP operating expenses for Q4 2024 were $113,019 thousand, compared to $103,459 thousand in Q4 2023, with a decrease in percentage of total revenues from 40.0% to 36.8%[46]. - The company reported a GAAP operating income of $12,396 thousand for Q4 2024, a recovery from a loss of $23,365 thousand in Q4 2023[46]. - Non-GAAP operating margin improved to 10.6% in Q4 2024 from 3.6% in Q4 2023, indicating enhanced operational efficiency[46]. Future Projections - For 2025, the company projects total revenues between $1.105 billion and $1.155 billion[21]. - The company anticipates long-term growth and consistent GAAP profitability, despite potential risks such as unfavorable economic conditions and competition in the medication management market[27]. - The company is focused on transforming pharmacy and nursing care through outcomes-centric solutions, aiming to deliver clinical and business outcomes across all care settings[24]. - The company is investing in research and development to enhance existing products and develop new solutions, aiming to meet evolving market demands[27]. - The company’s financial guidance includes expectations for product bookings and annual recurring revenue, indicating a focus on sustainable growth[27]. Debt and Cash Management - As of December 31, 2024, cash and cash equivalents were $369 million, with total debt of $341 million[15]. - The company issued $172.5 million in convertible senior notes due 2029 and repurchased $400 million in convertible senior notes due 2025[20]. - Cash and cash equivalents decreased to $369,201,000 as of December 31, 2024, down from $467,972,000 in 2023[42]. - Total assets decreased to $2,120,960,000 in 2024 from $2,226,878,000 in 2023[42]. - Total liabilities decreased to $877,647,000 in 2024 from $1,037,924,000 in 2023[42]. - Omnicell's substantial debt may affect its financial flexibility and access to capital, posing a risk to its growth strategy[27]. Risks and Challenges - The company faces risks related to cybersecurity, including previous ransomware incidents, which could impact its operations and financial performance[27]. - The company is committed to maintaining relationships with its pharmacy customers while navigating regulatory and market challenges[27]. - The company emphasizes the importance of non-GAAP financial measures, which include non-GAAP gross profit, operating expenses, and EBITDA, to provide a clearer view of its core operating performance[28]. - The company expects to continue reporting non-GAAP financial measures, which may differ from GAAP results, highlighting the importance of understanding both[36]. - Omnicell's non-GAAP EBITDA is adjusted for various items, including share-based compensation and acquisition-related expenses, to reflect the company's ongoing operations more accurately[30]. Bookings and Backlog - Total bookings for the year ended December 31, 2024, were $923 million, an increase of 8% year-over-year[8]. - Total backlog as of December 31, 2024, was $1.201 billion, up from $1.143 billion in 2023[9]. New Product Launch - The company announced the launch of OmniSphere, a cloud-native software workflow engine aimed at enhancing medication management[17].

Omnicell (OMCL) is advancing toward the industry-defined vision of Autonomous Pharmacy by leveraging automation and advanced services across its cloud-based platform. The strength of the company’s Advanced Services offerings is highly encouraging to sustain growth in the upcoming quarters. Efforts to expand into more overseas markets instill optimism. However, adverse macroeconomic challenges and fierce rival pressure could hurt Omnicell’s performance.Currently sporting a Zacks Rank #1 (Strong Buy), OMCL st ...

The market expects Omnicell (OMCL) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

Omnicell, Inc. (OMCL) has witnessed strong momentum in the past year. Shares of the company have risen 26.2% against 15.7% decline of the industry. The S&P 500 composite has increased 24.2%.With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.Omnicell develops and markets end-to-end automation solutions for the medication-use process. The company's products enable care providers to improve patient saf ...

Core Viewpoint - Omnicell (OMCL) shows a positive earnings outlook, with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism about Omnicell's earnings prospects, which is expected to influence the stock price positively [2]. - The current-quarter earnings estimate is $0.57 per share, representing a 72.73% increase from the previous year, with a 9.57% increase in consensus estimates over the last 30 days [5]. - For the full year, the expected earnings are $1.68 per share, showing a year-over-year decline of 12.04%, but the consensus estimate has increased by 10.67% due to positive revisions [6]. Zacks Rank - Omnicell has achieved a Zacks Rank 1 (Strong Buy), supported by strong agreement among analysts in raising earnings estimates, which historically correlates with stock outperformance [3][7]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [7]. Stock Performance - The stock has gained 6.6% over the past four weeks, driven by solid estimate revisions, suggesting that it may be a good addition to investment portfolios [8].