Omnicell(OMCL) - 2024 Q4 - Annual Results

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].