Omnicell (OMCL) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.08 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 137.50%. A quarter ago, it was expected that this Omnicell Inc. Would post earnings of $0.17 per share when it actually produced earnings of $0.33, delivering a surprise of 94.12%.Over the last four quarters, th ...

Omnicell Q1 2024 Earnings Release [Financial Performance](index=1&type=section&id=Financial%20Results) Omnicell's Q1 2024 results exceeded guidance, with revenues declining 15% to $246 million and a GAAP net loss of $16 million, yet operating cash flow increased - First quarter 2024 results **exceeded** previously issued guidance across all key metrics[2](index=2&type=chunk) - Year-over-year revenue decreased due to a challenging customer environment and the completed XT Series systems replacement cycle[4](index=4&type=chunk) Q1 2024 Financial Highlights (vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Total GAAP Revenues | $246 million | $290 million | -15% | | GAAP Net Loss | $16 million | $15 million | +$1 million | | GAAP Diluted EPS | $(0.34) | $(0.33) | - | | Non-GAAP Net Income | $1 million | $17 million | -94% | | Non-GAAP Diluted EPS | $0.03 | $0.39 | -92% | | Non-GAAP EBITDA | $11 million | $27 million | -59% | Balance Sheet and Cash Flow Summary (as of March 31, 2024) | Metric | Value | Comparison | | :--- | :--- | :--- | | Cash and Cash Equivalents | $512 million | - | | Total Debt (net) | $570 million | - | | Total Assets | $2.28 billion | - | | Cash Flow from Operations | $50 million | vs. $13 million in Q1 2023 | [Corporate Highlights and Outlook](index=3&type=section&id=Corporate%20Highlights) Omnicell focuses on innovation and a business review, maintaining full-year 2024 guidance of $1.045-$1.120 billion in revenues and providing Q2 2024 projections - A holistic business review is underway to identify financial and operational improvements for stockholder value[3](index=3&type=chunk)[14](index=14&type=chunk) - Key corporate activities included introducing XT Amplify, hosting Illuminate 2024, publishing the 2023 ESG Report, and launching a refreshed website[14](index=14&type=chunk) Full Year 2024 Guidance (Unchanged) | Metric | 2024 Guidance Range | | :--- | :--- | | Bookings | $750 million - $875 million | | Total Revenues | $1.045 billion - $1.120 billion | | Non-GAAP EBITDA | $90 million - $120 million | | Non-GAAP EPS | $0.90 - $1.40 | Second Quarter 2024 Guidance | Metric | Q2 2024 Guidance Range | | :--- | :--- | | Total Revenues | $250 million - $260 million | | Non-GAAP EBITDA | $14 million - $20 million | | Non-GAAP EPS | $0.10 - $0.20 | [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, including Statements of Operations, Balance Sheets, and Cash Flows [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 total revenues were $246.15 million, down from $290.63 million in Q1 2023, resulting in a GAAP net loss of $15.68 million Q1 2024 vs Q1 2023 Statement of Operations (in thousands) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total revenues | $246,151 | $290,629 | | - Product revenues | $133,295 | $185,715 | | - Services revenues | $112,856 | $104,914 | | Gross profit | $92,623 | $125,029 | | Loss from operations | $(21,847) | $(22,963) | | Net loss | $(15,676) | $(15,000) | | Diluted net loss per share | $(0.34) | $(0.33) | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $2.28 billion, with cash at $512.36 million, and total liabilities at $1.10 billion Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $512,364 | $467,972 | | Total current assets | $989,918 | $927,571 | | Total assets | $2,283,755 | $2,226,878 | | Total current liabilities | $416,364 | $367,792 | | Convertible senior notes, net | $570,439 | $569,662 | | Total liabilities | $1,095,158 | $1,037,924 | | Total stockholders' equity | $1,188,597 | $1,188,954 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $49.95 million in Q1 2024, with total cash, equivalents, and restricted cash at $550.0 million Q1 2024 vs Q1 2023 Cash Flow (in thousands) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $49,953 | $12,770 | | Net cash used in investing activities | $(12,340) | $(13,640) | | Net cash provided by financing activities | $11,926 | $3,862 | | Net increase in cash, cash equivalents, and restricted cash | $48,983 | $3,168 | [Non-GAAP Financial Measures and Reconciliation](index=6&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) Omnicell utilizes non-GAAP measures like net income, EBITDA, and free cash flow to provide insights into core operating performance, with detailed reconciliations to GAAP results - Non-GAAP financial measures are used to facilitate period-to-period comparisons of core operating results by excluding non-recurring items[21](index=21&type=chunk)[22](index=22&type=chunk) - Key non-GAAP adjustments include share-based compensation, amortization of acquired intangibles, acquisition-related costs, severance, and restructuring charges[23](index=23&type=chunk)[27](index=27&type=chunk) Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Q1 2024, in thousands) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(15,676)** | | Share-based compensation expense | $8,641 | | Amortization of acquired intangibles | $5,960 | | RDS restructuring | $3,272 | | Other adjustments (net) | $(1,027) | | **Non-GAAP net income** | **$1,220** | Reconciliation of GAAP Net Loss to Non-GAAP EBITDA (Q1 2024, in thousands) | Description | Amount | | :--- | :--- | | **GAAP net loss** | **$(15,676)** | | Interest, Taxes, Depreciation & Amortization | $13,683 | | Share-based compensation expense | $8,641 | | Other adjustments | $4,189 | | **Non-GAAP EBITDA** | **$10,837** | Reconciliation to Non-GAAP Free Cash Flow (Q1 2024, in thousands) | Description | Amount | | :--- | :--- | | GAAP net cash provided by operating activities | $49,953 | | External-use software development costs | $(3,383) | | Purchases of property and equipment | $(8,957) | | **Non-GAAP free cash flow** | **$37,613** |

FORT WORTH, Texas--(BUSINESS WIRE)--Omnicell, Inc. (Nasdaq:OMCL), a leader in transforming the pharmacy care delivery model, will present at the virtual KeyBanc Annual Life Sciences & MedTech Investor Forum on Wednesday, March 20, 2024 at 4:30 p.m. ET. Live and archived webcasts of the presentation will be available through the Omnicell website at: https://ir.omnicell.com/events-and-presentations/ About Omnicell Since 1992, Omnicell has been committed to transforming pharmacy care through outcomes-centri ...

[Part I](index=6&type=section&id=PART%20I) [Business](index=6&type=section&id=Item%201.%20Business) Omnicell leads in medication management, leveraging robotics, software, and services to achieve autonomous pharmacy operations and reduce errors [Overview](index=6&type=section&id=Item%201.%20Business%20-%20Overview) Omnicell transforms pharmacy care by providing an industry-leading medication management infrastructure to achieve zero-error medication management - Omnicell provides a medication management infrastructure that includes robotics, smart devices, intelligent software, and expert services to support the industry vision of the Autonomous Pharmacy[20](index=20&type=chunk) [Business Strategy](index=6&type=section&id=Item%201.%20Business%20-%20Business%20Strategy) Omnicell's strategy addresses pharmacy challenges like labor shortages and errors through automation, focusing on four key market categories for long-term growth - The company identifies major challenges in the pharmacy industry, including budget constraints, labor shortages, drug diversion, and manual processes, as key drivers for the demand for its automation and medication management solutions[21](index=21&type=chunk) - Omnicell's strategic focus is on four main market categories: - **Point of Care**: Expanding dispensing systems within hospitals and ambulatory settings - **Central Pharmacy and IV Compounding**: Automating high-volume, error-prone processes - **Specialty Pharmacy and 340B Program**: Helping health systems optimize programs to improve outcomes and drive savings - **Retail, Institutional, and Payer**: Driving adoption of patient engagement solutions as care shifts to retail and home settings[23](index=23&type=chunk)[28](index=28&type=chunk) [Products and Services](index=7&type=section&id=Item%201.%20Business%20-%20Products%20and%20Services) Omnicell provides a comprehensive suite of medication management products and services, including point-of-care automation, central pharmacy solutions, and patient engagement tools - **Point of Care**: XT Series automated dispensing systems for medications and supplies, designed to improve clinician workflows in various hospital departments[26](index=26&type=chunk)[27](index=27&type=chunk) - **Central Pharmacy and IV Compounding**: Comprehensive services combining advanced robotics and expert operators to optimize medication dispensing and IV compounding, aiming to enhance safety and reduce waste[28](index=28&type=chunk)[29](index=29&type=chunk) - **Specialty Pharmacy and 340B**: A fully managed service to help health systems operate in-house specialty pharmacies, including support for payer contracting, staffing, and 340B Program administration[30](index=30&type=chunk) - **Advanced Services**: A combination of robotics, smart devices, intelligent software, and expert services designed to deliver improved medication management outcomes. These include Central Pharmacy Dispensing Service, IV Compounding Service, and EnlivenHealth solutions[43](index=43&type=chunk) [Industry Background and Market](index=9&type=section&id=Item%201.%20Business%20-%20Industry%20Background%20and%20Market) The healthcare market faces rising costs, workforce shortages, and medication non-adherence, driving demand for Omnicell's automation and technology solutions - The U.S. healthcare market faces rising costs, with prescription drug expenditures reaching approximately **$634 billion** in 2022[47](index=47&type=chunk) - Workforce challenges are a top concern for hospital CEOs, with significant shortages of nurses (**90% of CEOs reporting**) and pharmacy technicians (**vacancy rates of 20-30%**)[51](index=51&type=chunk) - Medication non-adherence is a major issue, with an estimated annual cost of **$528 billion** in 2016 due to non-optimized medication therapy[50](index=50&type=chunk) [Government Regulation](index=11&type=section&id=Item%201.%20Business%20-%20Government%20Regulation) Omnicell's global operations are subject to extensive healthcare, data privacy, and medical device regulations, requiring significant compliance efforts and posing potential risks - The company is subject to numerous U.S. and international laws, including healthcare fraud and abuse laws like the Anti-Kickback Statute and the False Claims Act[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - Omnicell manufactures products classified as Class I and Class II medical devices, which are subject to FDA regulation, including Quality System Regulation and medical device reporting[57](index=57&type=chunk) - The company's handling of personal health information subjects it to data privacy laws like HIPAA in the U.S. and GDPR in Europe, with emerging regulations around AI also impacting its business[55](index=55&type=chunk)[56](index=56&type=chunk) [Sales and Distribution](index=14&type=section&id=Item%201.%20Business%20-%20Sales%20and%20Distribution) Omnicell primarily sells in the US through a direct sales force and GPOs, with lengthy sales cycles for complex automation systems - Approximately **88%** of the company's revenue was generated in the United States for the year ended December 31, 2023[67](index=67&type=chunk) - Sales to members of the ten largest Group Purchasing Organizations (GPOs) and federal agencies under the GSA Contract accounted for approximately **64%** of total consolidated revenues in fiscal year 2023[70](index=70&type=chunk) - The sales cycle for automation systems is long, often taking **12 to 24 months** from initial meeting to installation, due to the cost and complexity of the systems[69](index=69&type=chunk) [Backlog](index=18&type=section&id=Item%201.%20Business%20-%20Backlog) Total backlog decreased to $1.14 billion in 2023, driven by lower product backlog but offset by growth in Advanced Services backlog, indicating a business mix shift Backlog Summary (in thousands) | | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total backlog** | **$1,142,686** | **$1,215,462** | | Product backlog | $610,832 | $796,967 | | Advanced Services backlog | $531,854 | $418,495 | - Backlog is defined as the dollar amount of bookings not yet recognized as revenue. While it may not indicate the timing of future revenue due to potential customer changes, it is considered an indication of future revenue generation[93](index=93&type=chunk) [Human Capital Management](index=19&type=section&id=Item%201.%20Business%20-%20Human%20Capital%20Management) Omnicell reduced its workforce to 3,650 employees in 2023 due to restructuring, focusing on engagement, development, and DEIB initiatives - Employee headcount was approximately **3,650** as of December 31, 2023, a decrease of approximately **580** employees from year-end 2022, reflecting restructuring initiatives[98](index=98&type=chunk) - The company conducts an Employee Engagement Survey, achieving a satisfaction score of **68** in September 2023, which was a three-point increase from the beginning of the year but below the Glint benchmark average[99](index=99&type=chunk) - In 2023, the company introduced four Employee Impact Groups (EIGs) focused on Black Inclusion, LGBTQ+, Mental Health & Disability Inclusion, and Women in Technology to shape its DEIB vision and strategy[107](index=107&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) Omnicell faces diverse risks including economic downturns, strategic transition challenges, intense competition, technology issues, regulatory compliance, cybersecurity threats, and financial obligations - **Economic and Demand Risks**: Unfavorable economic conditions, customer labor shortages, and capital budget constraints can reduce demand for the company's capital equipment and solutions, leading to decreased revenues[120](index=120&type=chunk) - **Strategic and Market Risks**: The transition to subscription-based Advanced Services carries risks, including potential temporary revenue reduction and customer retention challenges. The company operates in highly competitive markets and faces pressure on pricing and market share[132](index=132&type=chunk)[142](index=142&type=chunk) - **Legal and Regulatory Risks**: The company is subject to complex healthcare laws (e.g., Anti-Kickback Statute, False Claims Act) and data privacy regulations (e.g., HIPAA, GDPR), with non-compliance potentially leading to significant fines and penalties[149](index=149&type=chunk)[182](index=182&type=chunk)[186](index=186&type=chunk) - **Data Security and Technology Risks**: Significant disruptions to IT systems or cybersecurity attacks, like the May 2022 ransomware incident, could adversely impact business operations and reputation. Errors in Advanced Services could also expose the company to liability[133](index=133&type=chunk)[166](index=166&type=chunk) - **Debt and Financial Risks**: The company has substantial debt, including convertible notes, which could impair financial flexibility. Conversion of these notes may dilute stockholder ownership[146](index=146&type=chunk)[225](index=225&type=chunk) [Unresolved Staff Comments](index=51&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are currently no unresolved written comments from the staff of the U.S. Securities and Exchange Commission (SEC) - There are no unresolved issues with respect to any SEC staff's written comments[235](index=235&type=chunk) [Cybersecurity](index=52&type=section&id=Item%201C.%20Cybersecurity) Omnicell manages cybersecurity risk through a comprehensive program overseen by its Audit Committee, implementing enhanced defenses following a 2022 ransomware incident - The Audit Committee of the Board of Directors is primarily responsible for overseeing the company's information security and technology risks, including cybersecurity[237](index=237&type=chunk) - Following a May 4, 2022 ransomware incident, the company implemented a three-pronged approach to enhance security, focusing on reducing exposure, raising security awareness, and strengthening defenses through measures like multifactor authentication and Endpoint Detection and Response solutions[240](index=240&type=chunk)[241](index=241&type=chunk) - The company does not believe the 2022 ransomware incident, or other identified cyber risks, have had or will have a material adverse effect on its business, operating results, cash flow, or financial condition[246](index=246&type=chunk) [Properties](index=55&type=section&id=Item%202.%20Properties) Omnicell operates its headquarters and several other key leased facilities across the US, UK, and Germany for administration, manufacturing, and R&D Material Leased Facilities | Site | Major Activity | Approximate Square Footage | | :--- | :--- | :--- | | St. Petersburg, Florida | Administration, R&D, sales, manufacturing | 167,700 | | Warrendale, Pennsylvania | Manufacturing and R&D | 107,400 | | Cranberry Township, PA | Administration, R&D, sales, support | 58,400 | | Irlam, United Kingdom | Administration, sales, distribution | 61,000 | | Milpitas, California | Administration, manufacturing, R&D | 46,300 | | Fort Worth, Texas | Administration, sales, R&D | 34,400 | [Legal Proceedings](index=55&type=section&id=Item%203.%20Legal%20Proceedings) Omnicell is involved in routine legal proceedings, with management assessing no material impact on financial position or operations - The company has not recorded any material accrual for contingent liabilities from legal proceedings, as it believes a material loss is not probable, and any possible range of loss cannot be reasonably estimated[578](index=578&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[251](index=251&type=chunk) [Part II](index=56&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=56&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Omnicell's common stock trades on NASDAQ (OMCL); the company has never paid dividends and did not repurchase shares in 2023 - The company's common stock is traded on the NASDAQ Global Select Market under the symbol "OMCL"[254](index=254&type=chunk) - Omnicell has never declared or paid cash dividends and does not expect to in the foreseeable future[255](index=255&type=chunk) - No shares of common stock were repurchased during the year ended December 31, 2023[260](index=260&type=chunk) 5-Year Cumulative Total Return Comparison | | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Omnicell, Inc. | $100.00 | $133.44 | $195.98 | $294.64 | $82.33 | $61.45 | | NASDAQ Composite | $100.00 | $136.69 | $198.10 | $242.03 | $163.28 | $236.17 | | NASDAQ Health Care | $100.00 | $110.75 | $140.85 | $126.71 | $95.29 | $96.06 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, Omnicell's revenue declined 11% to $1.15 billion, resulting in a net loss, yet operating cash flow significantly improved to $181.1 million [Results of Operations](index=69&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20-%20Results%20of%20Operations) Total revenues decreased 11% to $1.15 billion in 2023, driven by lower product sales, partially offset by service revenue growth, leading to a $20.1 million pre-tax loss Total Revenues (in thousands) | | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product revenues | $708,561 | $903,222 | $(194,661) | (22)% | | Services and other revenues | $438,551 | $392,725 | $45,826 | 12% | | **Total revenues** | **$1,147,112** | **$1,295,947** | **$(148,835)** | **(11)%** | Gross Profit (in thousands) | | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Gross profit | $496,840 | $588,987 | $(92,147) | (16)% | | Gross margin | 43% | 45% | | | - Selling, general, and administrative expenses decreased by **$51.7 million** (**11%**) in 2023, primarily due to lower employee-related expenses, consulting fees, commissions, and freight costs[332](index=332&type=chunk) - The company recorded a provision for income taxes of **$0.3 million** on a loss before taxes of **$20.1 million** in 2023, resulting in a negative effective tax rate of **1%**[335](index=335&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%20-%20Liquidity%20and%20Capital%20Resources) Omnicell's cash position improved to $468.0 million in 2023, with operating cash flow significantly increasing to $181.1 million, supported by an undrawn $350.0 million credit facility Cash Position and Working Capital (in thousands) | | December 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $467,972 | $330,362 | | Working capital | $559,779 | $453,366 | Summary of Cash Flows (in thousands) | | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $181,094 | $77,781 | | Net cash used in investing activities | $(55,016) | $(58,669) | | Net cash provided by (used in) financing activities | $23,420 | $(20,953) | - On October 10, 2023, the company entered into a Second Amended and Restated Credit Agreement, providing for a **$350.0 million** revolving credit facility expiring in 2028. As of December 31, 2023, there was no outstanding balance[342](index=342&type=chunk)[343](index=343&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Omnicell faces market risks from foreign currency fluctuations, primarily British Pound and Euro, and interest rate changes affecting its fixed-rate convertible notes - The company is exposed to foreign currency exchange rate fluctuations, with the most significant exposure related to the British Pound and the Euro. No foreign exchange forward contracts were outstanding as of December 31, 2023[359](index=359&type=chunk)[360](index=360&type=chunk) - Interest rate risk exists through borrowing activities. The convertible senior notes have a fixed interest rate, but their fair value is impacted by market rate changes. The fair market value of the notes was **$527.2 million** as of December 31, 2023, compared to a carrying value of **$569.7 million**[361](index=361&type=chunk) [Controls and Procedures](index=75&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and independent auditors concluded Omnicell's disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management, including the principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[366](index=366&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023, based on the COSO framework[368](index=368&type=chunk) - Deloitte & Touche LLP, the independent registered public accounting firm, issued an unqualified attestation report on the company's internal control over financial reporting as of December 31, 2023[369](index=369&type=chunk) [Part III](index=78&type=section&id=PART%20III) Part III incorporates information on directors, executive compensation, security ownership, and related party transactions by reference from the 2024 Proxy Statement [Directors, Executive Officers and Corporate Governance](index=78&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, the audit committee, and the code of conduct is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information required by this item is incorporated by reference from the company's forthcoming Proxy Statement[376](index=376&type=chunk)[377](index=377&type=chunk)[378](index=378&type=chunk) [Executive Compensation](index=78&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding director and executive officer compensation, Compensation Committee interlocks, and the Compensation Committee Report is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information required by this item is incorporated by reference from the company's forthcoming Proxy Statement[380](index=380&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=78&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management, as well as securities authorized for issuance under equity compensation plans, is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information required by this item is incorporated by reference from the company's forthcoming Proxy Statement[381](index=381&type=chunk) [Certain Relationships, Related Transactions and Director Independence](index=78&type=section&id=Item%2013.%20Certain%20Relationships%2C%20Related%20Transactions%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information required by this item is incorporated by reference from the company's forthcoming Proxy Statement[382](index=382&type=chunk)[383](index=383&type=chunk) [Principal Accountant Fees and Services](index=79&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement for the 2024 Annual Meeting of Stockholders - Information required by this item is incorporated by reference from the company's forthcoming Proxy Statement[383](index=383&type=chunk) [Part IV](index=80&type=section&id=PART%20IV) [Exhibits and Financial Statement Schedules](index=80&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements, the independent auditor's report, and all exhibits filed with the Form 10-K - This item lists the consolidated financial statements and exhibits included as part of the Annual Report on Form 10-K[386](index=386&type=chunk) [Financial Statements and Supplementary Data](index=81&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) [Reports of Independent Registered Public Accounting Firms](index=81&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firms) Deloitte & Touche LLP issued unqualified opinions on Omnicell's 2023 financial statements and internal controls, noting critical audit matters in inventory and software capitalization - Deloitte & Touche LLP issued an unqualified opinion on the consolidated financial statements as of December 31, 2023[390](index=390&type=chunk) - The firm also issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2023[391](index=391&type=chunk)[404](index=404&type=chunk) - The audit identified two Critical Audit Matters: Inventory Valuation, due to judgments on excess and slow-moving inventory, and Capitalized Software Development Costs, due to the subjectivity in determining which costs to capitalize[395](index=395&type=chunk)[399](index=399&type=chunk) [Consolidated Financial Statements](index=86&type=section&id=Consolidated%20Financial%20Statements) Omnicell's 2023 consolidated financial statements show $2.23 billion in assets, a $20.4 million net loss on $1.15 billion revenue, and $181.1 million in operating cash flow Consolidated Balance Sheets (in thousands) | | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total current assets | $927,571 | $881,812 | | Total assets | $2,226,878 | $2,210,758 | | Total current liabilities | $367,792 | $428,446 | | Total liabilities | $1,037,924 | $1,080,621 | | Total stockholders' equity | $1,188,954 | $1,130,137 | Consolidated Statements of Operations (in thousands, except per share data) | | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Total revenues | $1,147,112 | $1,295,947 | | Gross profit | $496,840 | $588,987 | | Income (loss) from operations | $(34,868) | $(2,323) | | Net income (loss) | $(20,371) | $5,648 | | Diluted net income (loss) per share | $(0.45) | $0.12 | [Notes to Consolidated Financial Statements](index=92&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail Omnicell's accounting policies, debt, leases, and significant 2023 events including $15.5 million in restructuring expenses and ransomware incident costs - **Revenue Recognition**: Revenue for complex products is recognized upon installation and acceptance, while consumables revenue is recognized upon shipment. Services revenue is recognized over time[441](index=441&type=chunk)[450](index=450&type=chunk) - **Debt**: The company has a **$350.0 million** revolving credit facility (undrawn at year-end) and **$575.0 million** in **0.25%** convertible senior notes due 2025, with a net carrying value of **$569.7 million**[547](index=547&type=chunk)[554](index=554&type=chunk)[562](index=562&type=chunk) - **Restructuring**: The company recognized **$15.5 million** in employee-related restructuring expenses in 2023 related to headcount and real estate footprint reductions[621](index=621&type=chunk)[622](index=622&type=chunk)[623](index=623&type=chunk) - **Ransomware Incident**: As of Dec 31, 2023, the company has incurred **$13.6 million** in cumulative expenses related to the May 2022 ransomware incident, offset by **$12.2 million** in insurance recoveries[576](index=576&type=chunk)

zhihao/Moment via Getty Images Investment thesis Omnicell (NASDAQ:OMCL) has built a highly differentiated portfolio of products and services in the medication dispensing market that puts it, in my opinion, in a strongly advantageous position as the company is building a strong moat that will allow it to stay highly profitable and enjoy high and stable revenue streams in the long term, which should translate into significant (and hopefully steady) returns for investors once a more mature stage is reached. Th ...

Omnicell, Inc. (OMCL) reported fourth-quarter 2023 adjusted earnings per share (EPS) of 33 cents, in line with the year-over-year figure. However, the metric beat the Zacks Consensus Estimate of 17 cents.Adjustments include one-time expenses like share-based compensations, the amortization of acquired intangibles, acquisition-related expenses, executive transition costs, severance-related expenses and others.GAAP loss was 32 cents per share in the quarter under review compared with 64 cents in the prior-yea ...

Omnicell (OMCL) is well-poised for growth in the coming quarters, backed by the execution of its vision to transform the pharmacy care delivery model and deliver mission-critical medication management solutions for customers globally. The company is closely managing the cost structure with several initiatives, which are set to benefit its key metrics.Macroeconomic headwinds are resisting the full impact of expense containment efforts.In the past three months, this Zacks Rank #3 (Hold) stock has declined 21. ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2023 were $299 million, down 14% compared to Q3 2022, primarily due to lower point of care revenues [33] - Non-GAAP EBITDA for Q3 2023 was $41 million, a decrease of $6 million compared to the previous quarter [36] - Non-GAAP earnings per share for Q3 2023 were $0.62, compared to $1.00 in the same period last year [36] - Cash balance at the end of Q3 2023 was $447 million, up $48 million from $399 million as of June 30, 2023 [37] Business Line Data and Key Metrics Changes - Services revenue for Q3 2023 was $110 million, an increase of 8% versus Q3 2022, driven by growth in Advanced Services [33] - Advanced Services revenue is expected to be between $208 million and $213 million for 2023, reflecting a 13% increase at the midpoint compared to 2022 [44] - Technical Services revenue is expected to range between $222 million and $227 million in 2023, a 9% increase at the midpoint compared to 2022 [44] Market Data and Key Metrics Changes - Health system customers are showing caution in implementing new workflows due to staffing and budget constraints, impacting the timing of new capital and software projects [11] - Customer interest in IV solutions remains robust despite regulatory headwinds affecting IVX systems [12] Company Strategy and Development Direction - The company aims to transform the pharmacy care delivery model and deliver medication management solutions globally [9] - Focus on automation and optimization of pharmacy operations is seen as critical for long-term growth [14] - The company is building on expense containment initiatives and reducing headcount by approximately 7% to align cost structure with revenue expectations [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing challenges in the healthcare industry, including labor shortages and budget constraints, which are expected to continue into 2024 [54] - The company remains confident in its ability to capture market share as hospital financial pressures alleviate and the macroeconomic environment improves [13] - Future revenue guidance for 2023 has been adjusted to between $1.135 billion and $1.155 billion, reflecting a decrease from previous expectations [41] Other Important Information - The company has completed refinancing its revolving credit facility, indicating lender confidence in its business model [37] - Anticipated annualized cost savings from cost actions are expected to be between $45 million and $55 million [49] Q&A Session Summary Question: Can you detail any particular areas you plan to focus on for cost cuts? - The company is looking at enabling functions for cost reductions while limiting cuts in growth areas like Advanced Services [58] Question: What products or services under Advanced Services are contributing to growth? - Specialty services are a key growth engine, along with some growth in retail solutions [59] Question: What percentage of the bookings guidance is product-related? - The company does not disclose specific percentages but indicates that most headwinds in bookings are from inpatient point of care [62] Question: What are the conversations with hospital systems regarding forward demand? - Providers face flat revenues and rising labor costs, impacting their ability to execute orders, particularly in inpatient care [68] Question: Can you provide an update on regulatory requirements for IVX? - The situation is complex due to varying interpretations of FDA rules by local pharmacy boards, affecting the rollout of IV solutions [75] Question: What is the outlook for 340B revenue? - The company expects limited growth in 340B but sees opportunities in internal specialty pharmacy services [80] Question: What are the latest thoughts on capital allocation going forward? - The company will continue to invest in growth areas and monitor markets for opportunities that align with its strategy [106]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 000-33043 ...

Investor Relations August 1, 2023 This presentation contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), including Q2-2023 non-GAAP gross margin, non-GAAP operating expense, nonGAAP EBITDA, and non-GAAP earnings per share, 2017 and Q2-2023 liquidity and 2017 and Q2-2023 net debt/EBITDA, guidance with respect to 2023 non-GAAP EBITDA and non-GAAP earnings per share. Reconciliations of the 2017 and Q2-2023 non-GAAP financial measures to ...