OMCL - Earnings call transcript Q1 2022

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Operator

Good afternoon, ladies and gentlemen and welcome to the Omnicell First Quarter 2022 Earnings Conference Call. [Operator Instructions] And now at this time, I'd like to turn the call over to Ms. Kathleen Nemeth, Senior Vice President Investor Relations.

Kathleen Nemeth

Good afternoon and welcome to the Omnicell first quarter financial results conference call.

On the call with me today are Randall Lipps, Omnicell Chairman, President, CEO and Founder; Scott Seidelmann, Executive Vice President and Chief Commercial Officer; and Peter Kuipers, Executive Vice President and Chief Financial Officer. to forward-looking statements statements expectations, actual regarding outlook are contain projections to targets results will other that other and from or Omnicell's subject or to call differ statements, could those related including financial or factors materially This that uncertainties expressed cause implied. risks, plans, objectives,

and the more Report a SEC today. detailed description our these made Form you refer please statements, on the information more of in impact Annual For to be release on press the in with reliance February XXth, statements that XX-K recent SEC. filed today and XXXX aware issued forward-looking should on other undue forward-looking the risks with not Omnicell place reports filed the any Please that

were at ir.omnicell.com. Relations and in are Our this afternoon website posted section our results the released of Investor

to financial financial forward-looking financial some we'd release. to of non-GAAP these remind will Additionally, to With and as results like measures, measures discuss most call that during as uncertain we to GAAP cannot a we to items in guidance comparable targets, forward-looking over measures. forward-looking without unreasonable measures respect our Reconciliations are predicted call these included the this comparable be now non-GAAP press you such and non-GAAP inherently measures basis, the non-GAAP Randall. on will provide of are difficult turn the to a and measures GAAP do reconciliation not estimate I effort.

Randall Lipps

pressure, thank XXXX unrest. headwinds We've a to had afternoon. geopolitical Thank despite you, today. Kathleen, inflationary to solid and you for us And joining good due start and

on that a pharmacy industry enabled to the SaaS is single operations. and with advance cloud to our of vision work platform to the continue pharmacy enable tech designed based autonomous creating focus We

the Our Pharmacy that our demand the is continued system and management our Dispensing believe customers. with Omnicell resonate One and generating to and We to non-GAAP which quarter and to strongly from comprehensive It quarter and ranges recognize build for and their first transforming pressing strategy quarter is Central we SaaS first delivered our partners, management this care results year. exceeded strong saw us last for expand momentum strong revenues, our are our customer health Overall, solutions, capabilities on model platform. customers results. modernize continue pharmacy delivery non-GAAP retail continues we medication XXXX We Services, EPS. need clear medication total guidance to our EBITDA

also a outsourcing. Labor extremely with to need find healthcare as IVX an of per automate first labor We revenues EBITDA reducing cost intensive Compounding for retail million, highlight compounding to as high and cost be $X.XX. compounding manual of medication robot that approach we differentiated include labor I'd a while IVX management processes, compounding systems, reducing provides well quarter processes. highlight that power new market. of constraints, Station $XX last continue the and we month And scale, at the share total $XXX of believe like solution believe to of the non-GAAP We medication non-GAAP higher accessible Service, modernize and IV designed provide of to errors labor pressing customers. IV and issues of these results challenge it an the area enable the associated management. to the to earnings will Our broader million our generation robotic our technology IV scale make and IV innovative is benefits, that launched

with quarter. summary, among Scott? of IVX some we solid I'm call many for other over able overall assist more products we're let that, launch Station, very our execution With turn shortages. address me and to for our that pleased staff the solutions, and the outlook our to to maintaining In first With our year. Scott quarter, this the are details the on customers

Scott Seidelmann

that Randall. to our face According system Community medication associated our exacerbated difficult I by having similar with systems trends. filling some medication retention if of some Pharmacists pharmacy color intensive nearly area the a of analytics and is pandemic an provide the XX% pharmacies, and National labor already the believe staff particularly management Omnicell automate survey enabled for and will burnout examples, to of address who the and regard the workload daunting time positions. around believe few the We macro labor to staffing conditions. retail pharmacies issues portfolio and a pharmacy. be customers, specific Health challenges. think additional of can the to worse But experts technology manual industry for robots, services, leading tasks Service our which solutions customers products, COVID-XX Service issues concern several extremely technicians of labor Thank community And We not how a responsible software facing are These The market Central today these working. staff of we areas and in from continues to recent help strategy are our with you, market been Dispensing Pharmacy mitigate have highlight to increased use health Association, they're ways. many of management. Compounding IV trends

tasks, critical pharmacist many notifies the And automates to is Pharmacy up in that manual to task by a very key the One And check Omnicell platform required for should Interactive personalized to the Central people. XX%. prescriptions for hospital. cabinet Response a Voice staff perform SaaS EnlivenHealth to when several tasks And Dispensing is our Additionally, the what automate new of a of version time pharmacist. force software manual restock, a workflow design which pharmacy of help face. otherwise beta the efficiency uses Services But as reduces a the technology challenges as product such improve labor the of we concept the is potential such the efficiency number vision needs mitigate are reduce of management is examples importantly, how that at pharmacy solution designing our calls These team of the a a they few increase a pharmacist part solutions by solutions. labor more key analytics is current that to for shown using our tenant the and XX%. future labor that autonomous and has the to handle key industry's believe least of just providers to

Now recent comment our some I will of highlights. on customer

Dispensing sole Central with Dispensing experts management pharmacy First, solution selected in enhance operations. inventory a and Pharmacy Southeast streamline central leading comprehensive health technicians and to certified the staff it extension clinical for value in activities. to on and relationship. focus existing help an an long the pharmacy represents effort in is System should to XRX This improve system and central its safety higher an CPDS Robotic This outcomes relationship Omnicell largest the combines enable Service to-date, source term of pharmacy Omnicell

the country. than top an and the extension Northeast sole Omnicell have XXX Second, long has an medication represents One to long health supply in enhance sole its Health our the to-date, Omnicell largest its relationship of built health visibility system’s for the And Omnicell with across System selected chain pharmacy This existing optimize resources agreements hospitals. with One is and of term term strong and more a XX% customers. source leading source Omnicell partnerships XX systems we relationship.

numerous a combines years. leading with high our system release. new reduce that highlight Southeastern enable in expertise with our our During leading would to available as IVX pharmacy five a At Compounding robot leaders health This with features in health Winter approach, manual analytics, Massachusetts, Illinois, technicians. the system IV IVX for along and robot, and first we dependence Station us along also enhancements on is certified which and efficiency. quarter, reduce be launched the other shortages, with than medications, expected errors, in Compounding system event, formally will The cost Station and virtually, medication on for Service, staff agreements the another joined than LIVE. like IV of XXth, our we both through a service XXXX I more XXX reduce extended improve our providers to March XX this outsource in-person health to IVX others, more Illuminate

was cross and to EnlivenHealth’s SaaS mission driven innovative sizes Additionally, during focus all quarter pharmacies of and the Amplicare, types helps digital of in Media, which this retail EnlivenHealth’s the enable advance between grow of and integration acquired good EnlivenHealth of continued MarkeTouch progress one the A in and continued first that acquired is already to orchestrating base. quarter, the XXXX. solutions thrive healthcare. companies most selling new EnlivenHealth solutions of customer building technology and this FDS of particular Omnicell seeing and era

One, to our with EnlivenHealth ultimately make cloud believe fully which like smarter all safer of the of we our for of enhancements, other our the a ongoing getting infrastructure Omnicell launch will powered closer Station, services, care the be other devices, vision along and pharmacy that are everyone. platform by we With IVX and will integrated, intelligent help our

creates ensure solution. the medications with is population, programs. clinics, requirements. in providers, for and enable XXXB care offer comments designed patients implement has that supports providers actions a the to our systems few vaccines, on providers, well Program. medication supporting Now, care manufacturer retail as federal free health provide management this deep Drug to solution mental for uninsured and health value XXXB significant provider and Pricing specialty as Program's health Program, risk expertise safety-net patients, have The the and access rural program on complying health which of and utilization in Despite services community those for XXXB and Omnicell’s provide recent administering limited XXXB to at

our changes. while headwinds As solution such industry XXXB out works will experience these the

of important with continue and provide we health help tools summary, enable to customers the healthcare to and need is intelligent expect and we to overall services significant Omnicell solution ultimately positioned and deliver system best transform to a help outcomes. our they system. infrastructure retail deliver XXXB in role partners to strategy patient an In to our the part uniquely services play believe the our However,

look turn our that, on excited positive momentum. Peter. forward our progress the over will call With to and are by We to continuing build to to-date I

Peter Kuipers

quarter I’m strong pleased results for first Scott. XXXX. of you, with Thank the

members Our particularly we autonomous innovation the further team that vision to pharmacy. to dynamic XXXX industry’s executing well performance of deliver, are I'm our demonstrates and proud is strategy microenvironments. our working the us of continue during the approximately the that designed consistently especially Omnicell execution roadmap our current solid to on

to now results. our Turning financial

of revenue impact and quarter $XXX in of an XXXX. performing of increase Amplicare, XXXX $X and approximately gross dollars the the offset quarter the momentum, XXXX exceeded strong XXXX. GAAP a Media non-GAAP and first were of quarter On the materials for for first quarter in acquisitions million, prior to basis XX% management our semiconductors, for quarter our continued year-over-year including First The commercial million over over increase margin certain reflects compared revenues XXXX record Omnicell’s margin trade medication first Non-GAAP partially contribution quarter first demand well basis, range, revenues of $X revenue non-GAAP the and on plan expected XX.X% increased and above a million first are within of costs of an solutions and the XX% up slightly in and solutions, was for of quarter modestly was by inflationary timing gross and costs non-GAAP connected quarter. our the revenue as than devices guidance in profitability. Total lower implementations maintenance from first of paid auto from delay of FDS at our year-over-year. organic GAAP XXXB revenue The MarkeTouch strength well was the and renewals as quarter recent acquisitions. ReCept reflecting our service the

higher. costs, would points approximately margin inflationary percentage Excluding basis the have been million in $X XXX

in posted quarter The the XXXX. per first in XXXX to GAAP with $X.XX share on the Our full of earnings the first share in earnings XXXX it's accordance fourth GAAP cents quarter XXXX share, per share and our results reconciliation first and our quarter in quarter to per non-GAAP of website. release, per included compared or $X.XX is $X.XX of press

in and quarter, of share year. per share were non-GAAP per per quarter share same compared XXXX $X.XX period last the in The the first $X.XX $X.XX previous earnings to

stock our exceeded million per the due $X.XX strength and earnings delivered EBITDA of well expectations share of of revenue, total We a first compensation impact our the non-GAAP non-GAAP benefit $XX of XXXX. $X share. quarter XX.X% and in favorable as as margin. million our was in the of $XXX per quarter the range a $XXX reflects First to as which XXXX, tax XX, first from down EBITDA of At non-GAAP million above guidance end is the balance XXXX, of quarter cash December million,

of of cost XXX,XXX approximately shares we at million, stock $XX price a the for to reflected XXXX per and payments additional stock implementations, repurchased first employee seasonal share. use common cash cash approximately quarter, due quarter. of quarter, cash during compensation of of Free increases the first the timing collections, $XX our flow customer of reflecting semiconductor During million a second inventory insurgencies, average an quarter $XXX in

the expect cash quarter flow cash to as through in flow the second free We we of positive and continuously XXXX year. progress improve free

accounts March of of quarter The of increase of XX XX, timing sales the first advance days quarter approximately within in supply were $XX for XX, XX implementation of important an XXXX that will secure of prior timelines. outstanding XXXX. the outstanding, of note terms days. It's purchases semiconductors Inventories million, of for increase million the of as days quarter, the includes $XXX and we [enforcing] In day future XXXX, believe inventories from over last that customer from primarily million quarter, March an increase an the were help as million to the of receipts receivable, sales the $XX quarter. from that's $XX reasonably XXXX first

We continue our supply process well global execute chain on management improvements to inventory and initiatives. very

full our quarter and to XXXX on second year moving guidance. Now

healthy of look strong expect we a to the we continue backlog. the growth customer demand revenue to As and rest year, and

We confidence necessary to our secured for components semiconductor in through supply to critical XXXX continue devices systems that niche and healthcare we to have critical have connected deliver our and and high customers. order the

And addressing importantly, a chain we've minimizing these value pricing customers, continuing being supply well we to the which taken customers. recently procurement strength great are the are Omnicell's disruptions axes global our to Our received believe by and demonstrates challenges teams job do proposition. of

and non-GAAP are between between revenues [PSN] billion. product range billion pleased customer and hiring $X.XXX in the And and been services fully timelines. $X.XXX $X.XXX. XXXX for to with expect Consistent are guidance, XXXX with to year bookings We previous support be in full and continued our demand momentum customer a we expected have billion implementation GAAP $X.XXX

expect As we're of dynamics, revenues a range $XXX for market and product million the our $XXX million. non-GAAP GAAP now and We result of mix modifying revenues to between XXXX.

mix implementation We non-GAAP revenue renewals updated between and timing a $XXX XXXB million. prior service million of The expect revenues of be and offset within a market devices the reflect and service [indiscernible] $XXX and healthy maintenance generation on GAAP timelines revenues the by to backlog connected in equipments year.

revenue impact of resolved revenue original our in services We in year. XX% and to that for approach be expected expect renewals approximately a the to rate revenue the services at percentage XXXB revenue We XXXX, the timing XX% as now be the of technical towards maintenance to to total run expect a factoring conservative business. end be of

between operational bottom to non-GAAP per $XXX $X.XX year expect based the outstanding, representing XXXX and full the model of $XXX non-GAAP EBITDA be impact management be the reflecting of the share We expected guidance our first $X.XX excellence initiatives. in strength and lower to quarter million, We XXXX. primarily XXX,XXX full common total to and which our of million share, the approximately increase business stock the and commitment expanse continue year between per to EPS of expect prudent both in diluted per to range now expense includes the and shares share, repurchase shares an on $X.XX of of

quarter’s due well experiencing to chain are and trade shortages to previous the The and semiconductor the extent in costs. hazards. steel million manage the component be auto $XX impact to noted inflation compared This in non-GAAP quarters, cost of impact as to while we material and we to supply approximately unchanged includes no and inflationary materials continues for XXXX of million team to raw also a other As guidance Totally phase continues EBITDA costs, last cost other remains primarily of $XX semiconductors, the supply showing to-date. and lesser paid of and continuity with XXXX trade outlook. from

prior non-GAAP the in full for EBITDA FDS also As around $X Amplicare, year and of integration ReCept, acquisitions. discussed the MarkeTouch costs million includes quarter, guidance Media XXXX the

we in we margins the EBITDA will our pricing the margins actions. near impact favorable reminder, put guidance and pricing end the as on these EBITDA greater to expect we begin that move XXXX. into and have place a gross a XXXX non-GAAP non-GAAP in Including actions have of impact that of is As

margin expect We second compared expand gross percentage to in moderately the to half half XXXX the as first of XXXX. of

tax year guidance. rate a of X% in For continue full EPS effective non-GAAP blended assume XXXX, to an we approximately

For XXXX, the of providing guidance. quarter we the are second following

product million non-GAAP between and GAAP expect and to be $XXX We GAAP non-GAAP between be service and revenues $XXX to revenues $XXX and be million. and XXXX and GAAP and total non-GAAP million $XXX $XX million revenues quarter with million between million second $XX

expect to cents And quarter $XX million. XXXX earnings cents We second XXXX quarter between be to share. $X.XX be per million $X.XX per and we $XX expect EBITDA non-GAAP second and share non-GAAP share per between

our turning term Now to outlook. long

We scale plans, built company revenue we believe increased the well of targets, able total the co-develop on tech And by very and term services a deal source to number long is sole sizes. deliver that it's adapt and believe driven from average partnerships, well. multi-year customer a growth to factors have growing benefits its including continue to that we XXXX revenue, positioned

XXXX profitability We size that targets. are to and continue of line committed our

However, to environment. to prior issued deflationary note it's current important and that reiterate the targets we these

We actions manufacturing execute continue and pricing programs. savings to

savings We address we growth market. or in initiatives. our the disruptions continue we with redeploy supply to the invest results headwinds long the coming what we summary, continue to term of innovation be we expect some continue years, of and chain for In As first these as pleased steps creating confident with and we the are and in to inflationary XXXX to scale are to dynamic business well quarter challenging environment. our outlook take and in believe remain executing value and

for our updating look We the would coming forward open you for to all are committed and on stakeholders your a call value quarters. to delivering durable progress like With that, in to of questions. our we

Operator

Instructions]. Thank you, Kuipers. Mr. [Operator

Scott go we at through Schoenhaus First Stephens

Scott Schoenhaus

Omnicell Hi, wanted to reduced Hope software doing the wanted just your year, delayed Just implies growth EnlivenHealth? outlined on the as with Scott Is you ask XXXB Randy, where the so services the well? growth services in now in is it Or Peter, retail near you're within on your Kathleen. guidance off, seeing and this most team advanced side start I software as side Is and some in to institutional opportunity. it it term. One? portfolio? is the

Peter Kuipers

this Peter and is as Yeah, upon let’s well. call [Virad]

is So of momentum next and CPDS clearly the uptake and long, only solid great so on IV on perspective lot generation demand that also there is strong growth. We And be a software side, also on see IVCS. which of will from by also and pharmacy then retail the really really a customer powered also robots.

we both. say So would

Scott Seidelmann

to I'd those only as front customers as we're And is combined side for the Peter that in end, offerings And is the from MarkeTouch. the least last acquired now thing nice add on year, seeing we've mentioned, side, positive in and combined FDS, from reception market, retail on that we commercial that offering. the really at Enliven a the

too, yeah. So that us gives

Scott Schoenhaus

new this going this there's IV service unlock provide replacement more numbers also briefly. to sense you I'm this streams about on cycle, revenue Great. is compounding potentially embedded guys and is is And software get just way for assuming maybe to also contribution you Thanks. could to then and revenue up, this more could potentially a how assuming? is new software, it there, forward, with launch equipment any firstly, But talked on upside come and If much of the from follow pricing robot. a trying

Scott Seidelmann

a no, think Yeah, question. it's I great

that we're excited IV. market to opportunity thing is of about technology we that think believe the that I lot number is this for so that improve this is launch this type a one greenfield demand of where a there

new us. for this market And is really a growth unlocking so

CPDS. We are like our part a delivering it of service, as

will be of IV So this service. compounding part

’XX well. enabled I tech that But but it's recurring customer early -- on. be both kind great, of mean, is we also terms this software product so quite but revenue, really in again, really timing, end point have in excited year be but is to of opportunity, services, terms of And a be and will feedback maybe in something demand we're about component there'll limited it's going as

Scott Schoenhaus

Congrats guys. good quarter. a Thanks, on

Peter Kuipers

Scott. Thanks,

Scott Seidelmann

Scott. you, Thank

Operator

We Tassan go to Jessica Piper Thank now at you. Sandler. next

Jessica Tassan

so taking you thank much Hi, the for questions.

you sort the service? help So maybe, then follow are kind what what when [competency]? opportunity And question just tap viable Or around of size and the the there? a they're that your candidates of So just for opportunity? this might us Scott's the up or IV outsource understand hospital or opportunity to to are of Can on is market as compounding to considerations is explain hospitals key and big broad deciding what that endorse weigh service.

Scott Seidelmann

Sure.

even to think delivery, question with them I today obviously XXXB but -- choices a drugs. which though hospitals, process and and care to are also compounding outsourcing known very quality them getting it's the is The there's couple with where subject shortage. starting Predominantly, it quality your I drugs a it the easier. makes internally compounded makes is on manual certainly critical them for that safety issues, outsourcers, outsourcing, Ironically, to to risk through second it's been they're IV of those now of and that's expensive. historically also part hospital mean, right get issues. alternative of well have

standards for shortages, much. for desperately reduces has a using those and throughput time live but also value meet around time failed reliability to long drugs, It frankly, being essentially able so been, errors compounding a quite ROI of proposition been the avoid that challenge very the and has high importantly, to demand outsourcing drugs. of long up that market to avoiding to the insource robotics those of really And has very obviously robotics most cost demonstratable needed. the for is the The the which

demands. we have because to robot But not about this meet excited we're so we're reason optimistic the throughput and finally, create this because those technology reliability so can that demand. is And

And the so proposition. that's really value

robotics in hospital very hospitals larger far the digit quite hospitals, large but the of unlock. market limited. very been As again, use US It's that that really that in this market, it's tends this technology as given excited will been has size penetration. this portion be in of to But US we're single a the

So, in we've of magnitude, meaningful. don't that. terms I we're -- disclosed think it's But

Peter Kuipers

And that it's say will not robot. appropriate multiple a I think many to take hospitals robots, single

Scott Seidelmann

Right.

Peter Kuipers

a $XX In single think Central TAM Pharmacy, been the billion. the identified has I place, we've

the robotic have that. the pieces the technicians, have can't process. to do the not So it's handling IV these centerpiece to you're it of save changer. really just people do a you on if most pharmacists And another robot going another the processes. And be in manually a just other the obviously They're it house I product a has And to note they make there. money, experienced these a it's transforming is and get to of I'd is significant pharmacy, portion not game opportunity to fantastic think generation, and

So the robotics actually house going supply for hospitals the robot help prefer, not needing manage path to which provides a the in to process. job done labor, labor we're would the and getting the

Jessica Tassan

of up, that contract issues manufacturer acquisition. Really the the one around just these then quick pharmacy time there XXXB, process, kind so are And think some on at around I of helpful. you. follow of out Thank the

time hasn't the has business to the it Thank on for future that of that, prospects relative and acquisition? So gotten changed what you. I changed your guess view changed what growth is has the or --

Peter Kuipers

the for Yeah, thanks question. Jessica,

number from So of part manufacturers changed program, what of is certain the the right. really the has discount in additional quarter, their the remove math first latter of

from base We're volume included conservative that and a a that’s strategic therefore XXX our forecast US impacted also and in revenue the to taking healthcare says of that program we a at essential our that the believe perspective. very approach the system. part So is B are customer revenue following the guide outlook,

Jessica Tassan

Got guys. it, thank you

Operator

you. Thank

Samuel We will go next JP to at Anne Morgan.

Anne Samuel

guidance question. your to savings you were since to your offsets about but So achieve anticipated? sooner on able quarter talked thanks provided than line or the able bottom Despite, wondering, cost maybe the Congrats I actually know, higher was guys. from for pressures, you you and you inflationary the were guidance Hi, is you year? maintain just you any helping there you pricing were for that last,

Peter Kuipers

you for question. the Thank Yeah.

a components I couple So upon touch inflationary can maybe first of costs. the there, and

to that very able manage we well. So were

freight You some see, as are are also headwinds well, cost are the that. markets. in There steel From inherently and spot markets there. experiencing we probably a perspective,

semiconductors for we're within -- as we to remarks, amount to significant with connected in the offset can able on However, a semiconductors customers already purchases. our have of in you inflation and that prepared see, lower device those needed supply our in

we some and cost the well. backlog, it. service prudence product slightly And offset given we demand additional so also And we lower can from there, for management perspective have the able revenue, a balance customer did as we're to offset from that with revenue strength

continue the range. to able to original So we're guide EBITDA to

Anne Samuel

Great, you. thank

Operator

Hewitt Thank you. Craig-Hallum We go next at to Capital. Matt

Matt Hewitt

the still from the and first relatively Congratulations selling you afternoon. ReCept And what any there year. can that question, the opportunities days to Good far? but cross has so regarding acquisition? to been customers Are good I maybe it's to the reception start realize early speak

Scott Seidelmann

the reception that say I'd positive. has very, been Yeah, very

would expect other the and Omnicell feedback TPAs, like XXXB thing a the very at the of point some thing sense they pharmacy it's at is certainly combine operating is interesting, that, that this. you the notion service when makes Omnicell which, I entities of , point, we've payer that, competitive management for of yes, think positive think a actions us it that specialty better, is which said, fully into manufacturer we one very I side like mean, overall the really in really with on part think of the that helpful this PBM. with this and of platform, deliver process, sort part the other has to health competitive medication process the perceived And I our at or being most to competitive gotten that the owned or thesis that that customer validated that haven't the to as this by even But systems communication. and integrated systems major I and/or least are health MSOs, frankly, aligned of a are sales the

in So a very unique position us with that puts these services.

Matt Hewitt

with both That's very just in prepared top of one, obviously the they're touched and able And and maybe customers the are helpful. how three talk two, you. inflationary coming their quickly of regarding on? customers, and you. coming those Thank Thank implement to and When priorities your you to your solutions one, of wages two in remarks for you're some form to their maybe and general. on help you lot a maybe what there's And of you you that hiring pressures, the challenges separately, costs customer? to higher the to kind talking they're at problems, then in are

Scott Seidelmann

with system, it's complex fact at the But think or I care side systems, acute that to by the health labor. increasingly geographically helpedX product. think deliver the the its me probably right much now would right service in continue that the in distributed health And it's vary speaking to labor. right I'm with right the time or underwhelmed very I meds generally location on my

in meds those labor Omnicell restocking health mitigate is Even pharmacy where Omnicell go. task because I direct a to a any with think tech driving and in think visibility. care, and to going at of cabinet. provides where issues, side have then to meds One and and so direct number order visibility CPDS which demand real are able we're two, One, in certainly a into a And should on And the the and that labor your more direct benefit the be that's system can on then, And as interest to importantly, time manage I the that's to IVCS. point feeds your you have

So that's helping to offset that.

on technologies I patients it's and and is struggling to about more that the engage do me automate now gives I done scheduled I is vaccinations, I The labor think to a similar, for very helps retail even as testing, begin to retail scheduled side, Mrs. need overwhelmed than appointment need which I simply that patients, an just historically such as I pharmacy, have problem that med. to am grow, I to with that. schedule with need shortage, tools so I'm know talk Smith’s

where so is which automate helpful, to and tools lot of those. to Enliven workflow is provide a SaaS platform And that's an so

up And so the clinical free pharmacist to of that deliver the are better which And everything is same, we're doing. that's themes exactly the heart care. to

Matt Hewitt

very you color. Thank great. That’s much for the

Scott Seidelmann

Yeah.

Operator

go Instructions] We [Operator next to David at BTIG. now Larsen

David Larsen

are how Like to March. price Are helpful. any a there, lot pricing on and February very a at Are with a prevalence on hospital rates, quarter. good clients very in high there's okay talk or abated had these you're there'll that your going Hi, be them? Just not? they pushing little rates congratulations. bit responding taking? power? increases hospitals. Can they January your color Hi, my about So very back they in high COVID congrats you

Peter Kuipers

is David, So, this Peter.

also So think in EBITDA we commented remarks, in section. I on my pricing,

in and the understood And So price well. so customers go increases received generally the that by not only well industry. ones being to as they well we're the

with the safety, on shows-off in the systems really Scott earlier and really early the It shortages health really of value answered and right? it labor the importance of our solutions question solutions, efficiencies. So helps and and

And we so coming latest into orders backlog we -- see these see

Scott Seidelmann

Yeah. increase. price A healthy

Peter Kuipers

increases the cost prices Price average higher. or average are or

Scott Seidelmann

Yeah.

Peter Kuipers

it coming. can see we So

Scott Seidelmann

See book some yeah. it and backlog, in

David Larsen

the what their it them it hospitals that value improve dealing so and of are revenue sounds internal yours hospital as and and own they're clients to enables with inflation costs, care of like because buying on quality Okay, own grow they wage getting the the they're their ultimately ultimately well. reduced have for

through in increases pretty are much well So you semiconductors enough to particular, XXXX? you how semiconductors you in being in April, and received. as terms And we It through okay. now, those China, progress then XXXX? stock inflation, have about XXXX? is for looking are are set inflation for we price -- from Do you of as bring you And in protected like, inventory think are sounds Taiwan? And

Peter Kuipers

you Yeah, question. for so thank that

inherently overall, half so probably well spot there year. pressure So manage there's some of costs, we're market, is to inflationary the in still see pretty able Freight we second the and what and mostly to total balance.

from part from that perspective. need think in cost fantasy, would that within brokers, Dependency the range. I pricing semiconductors given already managing we're We directly, a substantial manage they're there this perspective some to able supplies from a already to say. on we stock However, and etc. Taiwan the is is, OEMs and and year of that China have our get we We're really for fixed

and supply. have feel, of high we we surety confidence So

David Larsen

Okay, thanks very much. Congrats on a good quarter.

Peter Kuipers

Okay, thank you.

Operator

Thank you. to now next Capital. Dev We go Weerasuriya at Berenberg

Dev Weerasuriya

opportunity compounding automation And then, market the XRX? conversations XXXX, station, the to level end you're are of kind talk Pharmacy, Hey, drive here. such when this like I to hello, around provide with further current that not, thanks second to the Central does hospitals new suited hospitals robotics that seems great off and does a the IVX, drive want perfectly is bit of automation. that -- about in it my little clients to in kind a kind to an at dynamics IV the for that question. of kick maximum as incentivize if And just with quarter taking

kind to to customers So, something to really get -- like you. if not an of know, is on needed what's really XRX? what drive Thank

Scott Seidelmann

not your discussions system, that on, the I they Their compounding point these and to for your those etc. time. look may related right really the Dispensing at conversations for much have around even timing question short is different initiatives is, may the think with first Services? answer meds the deliver absolutely. Pharmacy IV They conversation, is same Central and be One service, care But our contemporary Yeah, very them. location going health the you've are right got around, around or OC frankly, The to of is,

very automate sales Service, options labor, itself is a grow, and And often much for we those would lend has with today? struggling very depending itself And it's you're the can but It's to labor, ROI. the Pharmacy what problems compounding about more are related work we IV think, then to also drugs Central seeing help the service, customer you they're clear And ROI that the number those to tasks. there. than with lends cycle Dispense where on away You model conversation them. not compounding. want I a unlocking of frankly, delivery

how techs. systems? on so, meds across distribute reliance pharmacy they the they Certainly, their it manage want to And do reduces

very on things demand very as we and well. are seeing strong similar of very, a of it's side So the lot CPDS

Dev Weerasuriya

question, the the it's Okay, great, not perfect of on kind and market of to this there. just, second kind is drive adoption further

adoption You be kind the know, what what's -- I'm back really of would there getting at? what holding is really for

Scott Seidelmann

CPDS XRX? side with the On

Dev Weerasuriya

right. Yes, that's

Scott Seidelmann

would don't the big the optimistic is And some think right I a that what the that finding say against of I more it's, this think market. there bullet continuing the is suddenly time, demand no change. But I is and than to things I right? competing coming is curve we're people done. think silver that there's just drop up think learning I that I bit time to do Yeah, often CPDS. manual to bullish there's speed, not think I and a way regulatory honestly, always with think mean, there's L-system. which some out unlocks don't strong. around we're -- process, they've that the And I and needs

really Pharmacy you picking basement wherever. I and them people it down off boil can't to, not does think simply maybe boil with operate that Central it simply this really it's sending over the the XXX It's meds in down labor know, inflation. But carousels just you sustainable of and to, does time.

that finding need or It's just do the location bottom we're there. to build bullish line opportunity is, really whatever. the is customer. And sense so, the time makes for about them to The a apparent about that right

Dev Weerasuriya

you. Okay, great. Thank

Operator

And we handing no questions back to it for you comments. Lipps, today. have any closing further appears, Mr. I’m

Randall Lipps

I comments close here for out. us of today. have thanks to Yeah, joining this couple

Responsibility we in commitment highlighted month, Turning initiatives. published significant responsibility, to we Report. strides an update innovation governance, And that the made earlier social, on in advancing this Omnicell’s environmental, corporate we've Report, and Corporate to our XXXX

And huge about management, software, so Everybody every product go pharmacy and of company yourself the more team, is training. same. Station. congratulations department like several out the I working been company never years Cheers. our will a next project around in I'd time. people, big on you to the our to avail that, really engineering, this launching Certainly the our lastly, and our to for to launch hope see hardware, IVX in our And and which because has done the We'll everyone. find all, Omnicell to website you'll you you -- be almost that. Thanks, congratulations send are

Operator

I would great a bye. of you first you thank all you again. wish and Thank to Good today's for concludes joining like does That earnings all Omnicell call. quarter day. your XXXX us remainder

Omnicell (OMCL) 1 May 222022 Q1 Earnings call transcript