Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $291 million, an increase of $14 million or 5% year-over-year and an increase of $21 million or 8% compared to the previous quarter [6][18] - GAAP earnings per share for Q2 2025 were $0.12, compared to $0.08 in Q2 2024 and a loss of $0.15 in the prior quarter [6][20] - Non-GAAP gross margin for Q2 2025 was 44.7%, an increase of 50 basis points year-over-year and 260 basis points from the prior quarter [19] - Non-GAAP earnings per share for Q2 2025 were $0.45, down from $0.51 in the same period last year and up from $0.26 in the prior quarter [20] - Free cash flow for Q2 2025 was $27 million, an increase of $17 million compared to the prior quarter [20] Business Line Data and Key Metrics Changes - Product revenue for Q2 2025 was $163 million, an increase of $7 million year-over-year and an increase of $18 million over the previous quarter [18] - Service revenue for Q2 2025 was $127 million, an increase of $7 million from the previous year and an increase of $3 million over the previous quarter [18] Market Data and Key Metrics Changes - The company is focused on expanding its market presence across both inpatient and outpatient settings, including nursing units, operating rooms, and various types of pharmacies [8] - The installed customer base has grown significantly, contributing to strong demand for the company's products [5] Company Strategy and Development Direction - The company is evolving from a device-centric model to an end-to-end medication and medical supplies management technology platform, integrating automation and intelligence [5][10] - Key strategic initiatives include expanding market presence, scaling recurring revenue, and accelerating the Omnisphere technology platform [8][10] - The launch of new products like MedVision and MedTrak aims to enhance visibility and operational efficiency in medication management [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer demand tracking expectations despite macroeconomic uncertainties [4][8] - The company is navigating tariff impacts, with an expected net quarterly impact of approximately $6 million for 2025 [23][24] - Future growth is anticipated to be driven by innovation and providing ROI solutions to customers [16] Other Important Information - The company unveiled an innovation lab in Austin, Texas, dedicated to addressing customer pain points through rapid prototyping [11] - Omnisphere received HITRUST CSF certification, affirming the company's commitment to cybersecurity [10] Q&A Session Summary Question: Competitive landscape and hospital purchasing behavior - Management noted that hospitals are still in the market and their buying behavior remains steady despite macroeconomic headwinds [30][39] Question: Impact of Medicaid cuts on purchasing - Management indicated that hospitals are still assessing the full impact of legislative changes and have not seen a change in purchasing behavior yet [36][39] Question: Demand for IV compounding products - Management confirmed that the IV compounding product has gained momentum and has a backlog of customers [45] Question: Software solutions for clinics - Management highlighted the importance of integrated solutions for clinics and outpatient settings, with MedVision being a key offering [52] Question: Tariff assumptions in guidance - Management confirmed that guidance assumes a 30% tariff rate for the second half of the year [82]

Investor Presentation May 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," "believe," ...

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]