PART I FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Omnicell's unaudited financial statements for the period ended June 30, 2023, including balance sheets, statements of operations, comprehensive income (loss), stockholders' equity, and cash flows, with accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets slightly decreased to $2.19 billion, cash and equivalents increased to $399.5 million, total liabilities decreased to $1.03 billion, and total stockholders' equity rose to $1.16 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $399,464 | $330,362 | | Total current assets | $881,361 | $881,812 | | Goodwill | $735,523 | $734,274 | | Total assets | $2,193,872 | $2,210,758 | | **Liabilities & Equity** | | | | Total current liabilities | $370,157 | $428,446 | | Convertible senior notes, net | $568,114 | $566,571 | | Total liabilities | $1,030,307 | $1,080,621 | | Total stockholders' equity | $1,163,565 | $1,130,137 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2023 total revenues decreased 10% to $299.0 million, with net income falling to $3.5 million, while the six-month period reported a net loss of $11.5 million Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $298,973 | $331,386 | $589,602 | $650,214 | | Gross profit | $134,443 | $158,092 | $259,472 | $308,139 | | Income (loss) from operations | $7,748 | $12,485 | $(15,215) | $17,569 | | Net income (loss) | $3,451 | $9,069 | $(11,549) | $17,282 | | Diluted EPS | $0.08 | $0.20 | $(0.26) | $0.37 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to $85.7 million for H1 2023, driven by better working capital management, with net cash used in investing at $28.5 million and provided by financing at $7.5 million Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $85,673 | $(25,547) | | Net cash used in investing activities | $(28,457) | $(25,550) | | Net cash provided by (used in) financing activities | $7,465 | $(33,571) | | Net increase (decrease) in cash | $64,829 | $(86,791) | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail revenue recognition, debt, leases, goodwill, share-based compensation, and restructuring, confirming the company operates as a single segment focused on medication management solutions - The company manages its operations as a single segment for assessing performance and making operating decisions, with the CEO as the Chief Operating Decision Maker (CODM)[32](index=32&type=chunk) Disaggregation of Revenues by Type (in thousands) | Revenue Type | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Connected devices, software licenses, and other | $167,475 | $215,632 | $332,622 | $423,710 | | Consumables | $20,961 | $18,174 | $41,529 | $35,971 | | Technical services | $57,191 | $53,303 | $110,548 | $102,472 | | Advanced Services | $53,346 | $44,277 | $104,903 | $88,061 | | **Total revenues** | **$298,973** | **$331,386** | **$589,602** | **$650,214** | - As of June 30, 2023, the company had remaining performance obligations not yet included in deferred revenue of **$288.7 million**, primarily from non-cancellable technical and Advanced Services contracts[45](index=45&type=chunk) - The company has a **$575.0 million** principal amount of 0.25% convertible senior notes due in 2025, with a carrying value of **$568.1 million** and a fair value of **$581.6 million** as of June 30, 2023[69](index=69&type=chunk)[49](index=49&type=chunk)[77](index=77&type=chunk) - In connection with a restructuring plan initiated in November 2022, the company incurred **$6.0 million** in employee severance costs during the first six months of 2023[117](index=117&type=chunk)[120](index=120&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, business strategy, and liquidity, attributing Q2 2023 revenue decline to lower product sales due to health system constraints, while affirming sufficient liquidity for the next twelve months [Business Strategy](index=34&type=section&id=Business%20Strategy) The company's strategy focuses on the Autonomous Pharmacy vision, addressing pharmacy challenges through technology and intelligence across four key market categories - Omnicell is focused on delivering solutions to drive positive medication management outcomes across four key market categories[137](index=137&type=chunk) - **Point of Care:** Expanding use of dispensing systems within hospitals, capitalizing on the replacement cycle of older models, and pursuing competitive conversions[137](index=137&type=chunk)[138](index=138&type=chunk) - **Central Pharmacy and IV Compounding:** Automating manual, error-prone processes to reallocate labor, enhance safety, and reduce waste, an area with nascent adoption[137](index=137&type=chunk)[138](index=138&type=chunk) - **Specialty Pharmacy and 340B Program:** Investing in revenue-generating activities for health systems to manage complex specialty drugs and optimize 340B programs[137](index=137&type=chunk)[138](index=138&type=chunk) - **Retail, Institutional, and Payer:** Capitalizing on the shift of care to non-acute settings by providing solutions that improve patient engagement and reduce total care costs[137](index=137&type=chunk)[138](index=138&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Total revenues declined 10% in Q2 2023 and 9% in H1 2023 due to lower product sales, while services revenue grew 13%, and gross margin contracted due to fixed costs Revenue Performance (in thousands) | Revenue Type | Q2 2023 | Q2 2022 | Change | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Product revenues | $188,436 | $233,806 | (19)% | $374,151 | $459,681 | (19)% | | Services and other revenues | $110,537 | $97,580 | 13% | $215,451 | $190,533 | 13% | | **Total revenues** | **$298,973** | **$331,386** | **(10)%** | **$589,602** | **$650,214** | **(9)%** | - The decrease in product revenues was primarily due to lower revenues from the automated dispensing systems business, resulting from ongoing health systems' capital budget and labor constraints[144](index=144&type=chunk)[147](index=147&type=chunk) Gross Margin Performance | Period | 2023 | 2022 | | :--- | :--- | :--- | | Q2 Gross Margin | 45% | 48% | | H1 Gross Margin | 44% | 47% | - The decrease in gross margin was primarily due to lower product revenues, as the decrease in cost of product revenues did not decrease proportionally due to fixed costs like labor and overhead[155](index=155&type=chunk)[158](index=158&type=chunk) - Selling, general, and administrative (SG&A) expenses decreased by **$15.7 million (13%)** in Q2 2023, primarily due to lower headcount-related expenses, commissions, and consulting costs, as well as the absence of prior-year ransomware-related expenses[160](index=160&type=chunk)[161](index=161&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened with cash increasing to $399.5 million and working capital to $511.2 million, driven by $85.7 million in operating cash flow, with a $500 million revolving credit facility available Liquidity Position (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $399,464 | $330,362 | | Working capital | $511,204 | $453,366 | - Net cash provided by operating activities was **$85.7 million** for the first six months of 2023, compared to net cash used of **$25.5 million** in the same period of 2022, with improvement driven by a decrease in accounts receivable and inventories[179](index=179&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - As of June 30, 2023, the company had **$417.7 million** available under its **$500.0 million** revolving credit facility with no outstanding balance[175](index=175&type=chunk) - There were no stock repurchases during the six months ended June 30, 2023, with **$2.7 million** remaining available under the 2016 Repurchase Program[177](index=177&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from foreign currency and interest rates, with no significant changes reported, and no foreign exchange forward contracts outstanding as of June 30, 2023 - The company is exposed to foreign currency exchange rate fluctuations, primarily with the British Pound and the Euro, and had no outstanding foreign exchange forward contracts as of June 30, 2023[191](index=191&type=chunk) - Interest rate risk exposure comes from borrowing activities, with fixed-rate convertible senior notes having a carrying amount of **$568.1 million** and a fair market value of **$581.6 million** as of June 30, 2023, and no outstanding balance on the variable-rate A&R Credit Agreement[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting identified during the quarter - Based on an evaluation, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[196](index=196&type=chunk) - There were no changes in internal control over financial reporting during the three months ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[198](index=198&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 for legal proceedings, highlighting the settlement and final court approval of the Heard Action class action lawsuit on April 6, 2023 - The company settled the 'Heard Action' class action lawsuit for a total payment of **$4.3 million**, with final court approval on April 6, 2023, and final payment by April 21, 2023[93](index=93&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022, have been reported - There are no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022[202](index=202&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Omnicell did not repurchase any shares of its common stock under its existing repurchase program during the second quarter of 2023 - The company did not repurchase any shares of its common stock during the three months ended June 30, 2023[203](index=203&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading plans were adopted or terminated, and a correction was disclosed for an inadvertent exclusion of $87.6 million in remaining performance obligations as of March 31, 2023 - The company identified that approximately **$87.6 million** in remaining performance obligations were inadvertently excluded from the amount previously reported as of March 31, 2023, with the corrected balance being **$286.8 million**[207](index=207&type=chunk)

Omnicell, Inc. (NASDAQ:OMCL) Q2 2023 Earnings Conference Call August 1, 2023 4:30 PM ET Company Participants Kathleen Nemeth - Head of IR Randall Lipps - Chief Executive Officer Nchacha Etta - EVP and Chief Financial Officer Conference Call Participants Scott Schoenhaus - KeyBanc Allen Lutz - Bank of America Stan Berenshteyn - Wells Fargo Matt Hewitt - Craig Hallum Capital Group Bill Sutherland - the Benchmark Company David Larsen - BTIG Jessica Tassan - Piper Sandler Operator Good afternoon and welcome eve ...

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 March 31, 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 OMNI ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2023 were $291 million, a decrease of $7 million or down 2% from the prior quarter and a decrease of $28 million or down 9% year-over-year [57] - Non-GAAP EBITDA for Q1 2023 was $27 million, an increase of $1 million compared to the previous quarter but a decrease of $24 million year-over-year [66] - Non-GAAP earnings per share for Q1 2023 were $0.39, compared to $0.33 in the prior quarter and $0.83 in the same period last year [66] Business Line Data and Key Metrics Changes - Services revenues for Q1 2023 were $105 million, an increase of 12% over Q1 2022, indicating successful digital transformation efforts [58] - The specialty pharmacy service continues to gain traction, with new partnerships established in Q1 2023, including a major Illinois health system and a Texas-based medical center [46] Market Data and Key Metrics Changes - The healthcare industry is facing ongoing labor constraints and capital budget challenges, which are expected to persist throughout 2023 [11] - Despite these challenges, there is a noted stabilization in the market, with health systems increasingly recognizing the need for automated medication management solutions [35][39] Company Strategy and Development Direction - The company is focused on integrating recent acquisitions to enhance its advanced services offerings, including ReCept, FDS Amplicare, and MarkeTouch Media [37] - A strategic alliance with Long Island University was announced to open the Center for Innovative Medication Management, aimed at fostering pharmacy education and technology [48][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while executing its growth strategy [18][55] - The company anticipates a sequential revenue growth from the first half to the second half of 2023, supported by a healthy backlog [70] Other Important Information - The company is undergoing a search for a new CFO as the current CFO is set to step down [28] - The company published its 2022 ESG report, highlighting efforts to protect patient data and foster a culture of inclusivity [27] Q&A Session Summary Question: Can you provide updates on the Specialty Services pipeline and the 340B opportunity? - Management indicated strong growth in the pipeline for Specialty Services, particularly in response to health systems' needs for specialty pharmacy operations [12] Question: What is the expectation for inflation trends in 2023? - Management expects pricing impacts to exceed inflation, with sufficient semiconductor inventory to cover most of the year [64][65] Question: How is the backlog trending as we approach midyear? - Management noted that the backlog remains healthy, with significant revenue expected to come from it [71] Question: What part of EnlivenHealth is resonating most with retail pharmacies? - The focus is on patient engagement and chronic care management, with retail pharmacies seeking better solutions for revenue cycle management [52][53] Question: What is the outlook for the point-of-care XT product line? - Management expects a stable continuation of the upgrade cycle for the XT series, despite some choppiness during the pandemic [97]

Financial Data and Key Metrics Changes - For Q4 2022, GAAP revenues were $298 million, exceeding the top end of the revised guidance range by $3 million [11] - Q4 2022 GAAP earnings per share (EPS) were a loss of $0.64, compared to income of $0.37 in the previous quarter and income of $0.28 in Q4 2021 [12] - Full year 2022 GAAP revenues reached $1.296 billion, a 14% increase from the previous year [36][122] - Full year 2022 non-GAAP EPS was $3, a decrease of 21% from 2021 [19] - Full year 2022 free cash flow was $17 million, a decrease of $156 million from the previous year [21] Business Line Data and Key Metrics Changes - Bookings for full year 2022 were $1.054 billion, a 13% decrease from $1.217 billion in 2021, primarily due to a slowdown in point-of-care bookings [15] - Advanced Services backlog as of December 31, 2022, was $418 million, with $50 million in short-term backlog and $369 million in long-term backlog [120] - Non-GAAP gross margin for Q4 2022 was 45.3%, a decrease of 220 basis points from the previous quarter [13] Market Data and Key Metrics Changes - The company noted that many health systems implemented capital budget freezes, elongating sales cycles, particularly impacting the point-of-care business [8] - Despite the macroeconomic challenges, the company observed stabilization in the healthcare environment in Q4 2022 and early 2023 [9][41] Company Strategy and Development Direction - The company plans to continue R&D investment across its Advanced Services portfolio in 2023, focusing on integrating technology platforms from recent acquisitions [6] - The strategic focus includes transitioning to a next-generation cloud-native capability to transform the pharmacy care delivery model [32] - The company aims to reduce operating expenses by approximately $50 million for 2023 through workforce reductions and other cost containment measures [28] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand conditions stabilizing within health systems and hospitals [41] - The company anticipates that gross margin percentage will modestly expand in the second half of 2023 due to cost containment actions and expected volume leverage [69] - Management acknowledged ongoing macroeconomic uncertainties but remains confident in the long-term growth potential of Advanced Services [25][37] Other Important Information - The company announced that Peter Kuipers will step down as CFO on July 1, 2023, after significant contributions to the company [39][40] - The company expects total revenues for 2023 to be between $1.150 billion and $1.190 billion, with product revenue ranging from $740 million to $760 million [49] Q&A Session Questions and Answers Question: Is the announced savings factored into the guidance for the full year? - The savings are not specifically factored into the guidance, but the company continues to see strong demand for Advanced Services [78] Question: What is the outlook for the Specialty Pharmacy business? - The company is optimistic about the growth of the Specialty Pharmacy offering, viewing it as a significant growth driver for 2023 and beyond [109] Question: How is the company managing capital allocation moving forward? - The company is prioritizing maintaining a large cash balance and is cautious about M&A and strategic acquisitions in the current environment [87]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 OMNICELL, INC. (Exact name of regis ...

Omnicell, Inc. (NASDAQ:OMCL) Q3 2022 Earnings Conference Call November 2, 2022 8:30 AM ET Company Participants Kathleen Nemeth - Senior Vice President, Investor Relations Randall Lipps - Chairman, President, Chief Executive Officer, and Founder Scott Seidelmann - Executive Vice President and Chief Commercial Officer Peter Kuipers - Executive Vice President and Chief Financial Officer Conference Call Participants Stan Berenshteyn - Wells Fargo Securities Jessica Tassan - Piper Sandler Allen Lutz - Bank of Am ...

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 June 30, 2022 ☐ 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 OMNICELL ...

Omnicell, Inc. (NASDAQ:OMCL) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Kathleen Nemeth - Senior Vice President, Investor Relations Randall Lipps - Chairman, President, Chief Executive Officer, and Founder Scott Seidelmann - Executive Vice President and Chief Commercial Officer Peter Kuipers - Executive Vice President and Chief Financial Officer Conference Call Participants Joy Zeng - SVB Securities Stan Berenshteyn - Wells Fargo Jessica Tassan - Piper Sandler Lucas Bar ...

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 March 31, 2022 ☐ 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 OMNICEL ...