OMCL - Earnings call transcript Q2 2024

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Operator

Good morning, and thank you for standing by. My name is Aaron, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Omnicell Second Quarter 2024 Financial Results Call. [Operator Instructions] With that, I would like to turn the call over to Kathleen Nemeth, Senior Vice President.

Kathleen Nemeth

Good morning, and welcome to the Omnical second quarter 2024 financial results conference call.

contain me Founder; or Randall ability results marketing President or to subject uncertainties Nchacha services Financial differ product, actual call with or holistic President, Omnicell and performance our call expressed statements goals, Officer. This management, drive and including expectations, regarding CEO Etta, will strategy, are or of the other long-term outlook implied. results those or and today company solutions, financial Omnicell's success, more that Lipps, are to Chairman, deliver and initiative, Chief related that expense statements consistent other to On to performance our could statements plans, from projections objectives, review risks, materially factors forward-looking Executive investments, Vice planned cause

release as should any the the law, undue not any For filed the only Omnicell SEC. Please on statements date publicly of detailed please our today today. more to risk not be the assume these release with in and as impact do report statements. in you we update aware All the annual speak recent February description otherwise on statements in refer reports other revisions hereof to reliance made the or that call. on or date with issued forward-looking by specified forward-looking forward-looking Except filed place of required forward-looking our SEC XX-K press on obligation statements, information XX, XXXX, any to the that a more the Form

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

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

Randall Lipps

Thank in and for financial remainder continued the the discuss quarter company for results thank morning, We you, quarter for Kathleen. us outlook our of year. Good position to to all the and joining strong the ability you remain had for confident our success. our and a XXXX second long-term of

you company's we streamline confidence with to X several opportunity completed management the that have have while innovations expected platform innovative our have we our will processes drive improve review calls, our to for we intended believe synergies medication and strategy, identified our share revenue. At time, are in offering has are further also we and on same reoccurring and working XT we that our validated on previous in around are both to As our our that businesses. increase our areas refreshed initiatives. Also, earnings platform. progressing Today, releasing holistic I initiative, I'm solutions pleased point-of-care been which the shared our financial XT performance, investing which to actions focuses to take of services across on that

are these of early consistent seeing, more to XT medication performance and the our strong expect our visibility first showing for with the based offerings tracking solutions in our point-of-care on and for expectations business. updating Omnicell's metrics annual signs year. current macroeconomic guidance we goal us is performance. Based We initial Accordingly, to and the previously of provided advanced are half our of is actions management our line toward improvement landscape progress enable service demand XXXX on the we what

results. quarter products strong execution delivered second of demand services, our We and exceeded for Omnicell's by our believe and Next, we results turning reflects upper team. that solid guidance our end solid ranges, the to

The or XX% and quarter of X% the quarter decrease quarter, $XXX a second XXXX XXXX. over total million or of sequential $XX revenues $XX million prior a million, over was representing second increase

quarter in with and prior $X.XX of share XXXX share GAAP profit of of second to $X.XX was per Second XXXX. profit a quarter earnings per the in share per of in the compared per loss share a quarter accordance $X.XX a

share $X.XX compared the quarter in second the per per Our year. and non-GAAP period earnings per in quarter prior with XXXX were share same share $X.XX $X.XX last

compared when $XX compared year. million year. the regarding to million, quarter's of the this same to an well quarter for drivers decrease our increase non-GAAP as details of more the was details Nchacha quarter, results a provide period as of the for will Second further remainder previous $XX but of the EBITDA XXXX million $X outlook last

well investing upgrades are next-generation dispensing in services. pharmacy as for XT in We fleet as medication investments making solutions and systems our of specialty automated outcomes-based

May, drive maximize for post-acute outcomes enthusiastic at are health and are automated have with we multiyear enhanced point-of-care about XT clinical the within hospitals, is Omnicell systems XT program value Omnicell's facilities dispensing systems, also and and in upon we are while invested here seeking announced pleased the we and to a that intended feedback that have pharmacies. Amplify to operational We customer April, receiving. In innovation embarked at particularly early the journey multiyear

program to well the to forward deliver in pleased a strong that resonating the step us innovations. the the and are next outcome-centric with XT Amplify appears journey for report is be market, demonstrating We to

forward with as well to We also as and you. current the further next customers future of have slated these all and for announcements our quarters several sharing look

from the focus for of is to XXXX, of across XT drive improved of products quarters quarter care increase expect XX% the the beginning Advanced designed on revenue seeing second Amplify outcomes were new Omnicell an are which XX% for for services, just strong our we As continuum. last full of and and quarter, long-term also XXXX. Services indicated our our medication management which our the revenue first growth. We're of to services, we drive second advanced reinvigorated demand

revenue We We technical will of Advanced XX% which approximately to the continue our year revenue XXXX. that anticipate services represent and of for revenue, full total for total XX% consumables includes total reoccurring year the to XXXX. anticipate Services full represent

highlights customer Now few selected quarter. wins turning of this a our to

upgrade As and their health XT Systems system across long-term Illinois continue to infrastructure and systems integrated selected Automated has manage medications standardize Omnicell partners academic replacing Omnicell fleet and ever. A health health in of selected and systems Wisconsin ranked enterprise XX existing systems. An the as seamlessly Dispensing their their customer generation point-of-care facilities. merge with new has This and Omnicell to need This automate management spending, Iowa, solutions XTExtend, XT they also their previous to component than units a and management across to announced with as a console into XT innovation capabilities. to mergers medication growing Amplify experience. scale important earlier high-level enhanced consolidate find solutions we competitive existing center is medication includes nationally new a an facilities medical Illinois replacing an this provide long-term of were through security integrated care and upgrading standardize year. is more acquisitions, and system user program the designed XTExtend includes nursing

accurate outpatient better long-term a of the provide our one diversion largest U.S. at our clinics As substance the enable medication identify rehabilitation about able product this the as storing, events their and discrepancies, dispensing. outcomes. are to also engagement picking central the standard main is safety enhanced medication and new optimize a within is of save for to substances. This nurses adopting trails top well, for dispensing, to clinical in Dispensing and drive is of delivered and should to narcotic Pennsylvania quarter. portfolio should operations provide providing that recovery within a care health selected company, in providers and Central technicians. Advanced One should system right manage It Southeast Dispensing XRX illness controlled we performance right dispensers help their timely centers to them are effort Automated facilities, Medication management, XT critical and X expected streamlined their robot the also help greater which dispensing enable multi-hospital their complete medication, time Omnicell's controlled Service streamline inventory highlight rehabilitation at being throughout should hospitals, pharmacy time in enterprise, facilitate pharmacists, pharmacy with the visibility priority solid excited intended also this an occupational a hospitals, operational and to Services inpatient to audit

providing across provide independent Specialty their help numerous Omnicell their can Pharmacy services systems for XXXX. the optimizing new service partner and their through of the to are contributing programs, pharmacy the we'll our regarding access as laser actions encouraged the and outpatient by care expert market the that investment members work to first-of-its-kind grew to proud part advanced deliver designed pharmacy details Our most strong Omnicell to care more U.S. And health We third-party existing that Specialty optimize do sustainable am reimbursement the deliver performance independent patient expansion that with forefront and and our clinical portfolio pharmacies very we believe for state and by to to and consistent service our has patient This recognize an designed solutions. quarter. the managed information reimburse we providing expand in focus purpose pharmacy Later locations of I solution today, XXXB selected by Services, care those a results. is be to potential. In to that transformation. care the of of at maximize care in this on and performance drive including health EnlivenHealth access retail pharmacies the improve and commitment and to elevating customers solutions up-to-date health seeks greater service Enliven technology partner delivered opening is intended and performance autonomous to brand, and strategic through clinical providers' scope Pharmacy financial there's to first that pharmacy summary, new of enable a growth Omnicell, take emphasizes administrator help a outcome-centric customer area of and success be trusted services. We finally, half deliver team's pharmacies continues high-quality local pharmacies service innovation, are Services that announcing provide Omnicell's second growth. to practice snapshot, our patient pharmacy to

our sell-ins, daily the to our dedication Our to deliver positive for inspires are me to forward communities. that we basis, striving is for impact omni look a and on I and continuing customers see something

Now let update. Nchacha? to over it financial Nchacha for me the turn

Nchacha Etta

Randall. you, Thank

we our the for outlook walk second remainder you strong XXXX quarter. through noted, for a of quarter as the some had of Randall going second our the well performance As I'm drivers to as year.

drivers expectations. The included for demand to installs second the are number We in quarter point-of-care as Pharmacy strong healthy line products environment with results our initial our Omnicell of Specialty demand well see for suite pleased tracking that Services. of is as our for a

bottom promise on and our second to team, a so approach XXXX. I will and improved take of Their our managing to continue as to fundamental The line our commitment basis. out and we we expenses outcomes. taken quarter we prudent what in continue have demonstrate We guiding believe am strong to patient of principles daily to Omnicell expense our our to cautious management helped exciting who agenda. results innovation their a is roll took commitment the is delivering approach disciplined proud our contribute to

of cycle. prior of were second quarter quarter second the over prior million an of increase timing decrease The million total and macroeconomic $XX or impact $XX of XX% environment X% the $XXX over XXXX. quarter of million, exit revenue the the the or life and reflects year Our XXXX decrease product over a revenue

XX.X%, and Services. Non-GAAP for management quarter advanced second each to approximately million. Revenues press quarter Omnicell's full from with believe quarter, our for is Relations early to macroeconomic were end the of of would systems XXX higher reconciliation to second base and services were X% over budgets above strong $XX basis the were XXXX growth ultimately as and of revenue the disclosed prudent quarter aided showing accounting Specialty remaining health installed on customer of converted an particularly revenues second leverage advanced an implementation. Product top of $XXX XXXX of landscape the become Services of performance be contributed for volume second the and our our are of $XXX were previous points continued solutions quarter our in quarter, quarter previously XT increase prior $XX compared an the XXXX of X% margin XXXX, non-GAAP demand the of XXXX. primarily and reflecting Advanced an available it million, was XXXX. of reflected point-of-care in second by second over our gross of revenue to time posted of quarter Omnicell's the as GAAP the million, signs and the some XX% we health XX% quarter revenues accounting are services Pharmacy to actions XXXX medication Services our the take customer management. A overachievement $X increase Both well the revenues quarter revenues While in services. Total is of and upon down as the million guidance improving, product offerings, revenues included earnings service expense budgets Technical increase what are which quarter first to Investor bookings results Services releases, in our quarter due systems previous over range, impact for and million, over and pricing website. our growing increase the technical and

prior XXXX second and quarter Our with $X.XX accordance share of in second per of per $X.XX of compared share the the a share quarter, $X.XX quarter GAAP earnings of a XXXX. profit a loss in in to per per share were profit

return As to mentioned, is we to it have GAAP goal management's consistent profitability.

quarter last earnings XXXX $X.XX in share year. same share quarter the second $X.XX share period prior with compared per $X.XX Our was per and in per non-GAAP the

period of year. non-GAAP EBITDA compared million to previous to compared of last million, Second quarter, a but $XX the when same $XX decrease quarter million the increase an was $X

and XX, and of non-GAAP and exceeded cost was was non-GAAP $XX Non-GAAP expectations with XXXX million quarter is end a $XXX as revenue cash share $XXX our million, free as as per believe cash quarter as strong XXXX. during continue take we we XXXX prudent we the capital quarter up continue from equivalents and see of March management the execution investment our cash second management. balance what flow due Second decisions. At XXXX, EBITDA timing, approach expense to strong well earnings collections operating cash the second and to million, of of our as to working

of quarter. accounts decrease for of XX days, receivable, quarter a day XX terms was prior over the In outstanding days sales the

from a $XX quarter XX, June to We collections million of the prior are $XX strong in of a the quarter, the $XX approximately XX, inventories $X restructuring million, previously. inventory June we as decrease $XX XXXX, includes the pleased with and were XXXX in quarter. Inventories planned of decrease second million The million million from decrease on RDS the announced related XXXX. write-down

to Now turning guidance. our

in on based full and our updating the year visibility XXXX, strong are year, First, we remainder of results for our the of outlook. current our quarter delivered the second XXXX

to Non-GAAP of range million. million is $XXX expected to XXXX, anticipate increase million. Total full billion. of be the we year million to $X.XXX of $XXX expected expected EBITDA is are a range revenues EPS $XXX to bookings to the $X.XX be $XXX the to to in range $X.XX. For the in of to increase billion range to to $X.XXX Non-GAAP

for are outlook the XXXX, providing third following our guidance. of we Regarding the quarter

with million $XXX We to million XXXX quarter to services and expect and between million. revenues and total be third $XXX product revenues revenue $XXX and between between $XXX million million $XXX be $XXX million,

million historic are with second EBITDA $XX second we half exited to million. our non-GAAP revenues. We for slightly to second quarter, total XXXX expectations the the between $XX half half performance seasonal conform third revenues trend Given first which third and quarter in expect quarter total be our and XXXX revenues patterns, above

share. Non-GAAP seasonal XXXX between employee XXXX reflects $X.XX expect the as quarter share increases be non-GAAP issued per salary XXXX, increases would well per years which guidance third per broad $X.XX non-GAAP early in quarter for share some and affect EBITDA We third X EPS merit and quarter earnings third the expenses. in to salary as

guidance. For are the assume tax we full rate share approximately earnings our continuing effective of in per XXXX, non-GAAP blended XX% year an to

note you to that I information additional conclude, anticipate in would expectations. we our annual XXXX, bookings' on I Before like with beginning providing

metric a recurring bookings modeling continue our in will as we business. We we recurring understanding product And plan and assist in for towards believe revenue our XXXX, services begin beginning to Specifically, annual business. our breakout and to providing pivot to revenue, our of of quarter In summary, XXXX. And we an business. we the second questions. be we internal the like for call with pleased it metric manage reoccurring expect important for driving our now as I would are open to results this

Operator

Stan with [Operator Berenshteyn Instructions] comes Our of line from Fargo. first the question Wells

Stanislav Berenshteyn

to by actually range you a like the walk was see at to the product guidance, down revenue. be beat came It drove on looks the of it to by through us and what Can quarter first in $X full guidance revision? guidance nice midpoint $XX contributed the But just million. quarter what year the Maybe million. looking

Nchacha Etta

Stan, thanks question. for Yes. the

revenue to our demand was strong Specialty from or increased. demand contributed Services -- point-of-care as a in what We business. our well So saw increased our portfolio product Pharmacy for strong performance as

year, we about In as the implementation good do to because very full guidance terms be backlog. very today a have our consider confident to we're our as healthy well we what of plan visibility

And so deliver that we in to do full for feel year. guidance line the our are we

Stanislav Berenshteyn

on timing a as about And end the beat guidance second think then range you we that? puts not of was burn? was the guidance got the Kind to of expected range, should how driven revised business upfront. you've takes for might for So more a issue the burn bookings some of function where down just the that the of quarter, top that and

Randall Lipps

No.

product the revenues, through believe from by standpoint continue demand primarily believe business. Pharmacy well driven strong perform the continued be is guidance provided we our we've to for have -- it's the point-of-care a what And will in year. first will what our half. But visibility we Services we standpoint. So second from Specialty the half to a driven was the But by schedule strong implementation again primarily half clearly driven second the that point-of-care performance by do of

Stanislav Berenshteyn

it. Got

the maybe it then what some the opportunities to on us of save costs. and some would time review, you found opportunities what be? kind capture size And holistic found for Can line synergies Okay. you seems like to those you

Randall Lipps

Yes. half the the year. to of looking in the improve continuing second We're at performance really

will end And our do the contribute to savings continue on that focused cost -- through prudent and so that, expect the to fully we management, we expense will year. overall We're that performance. continue do of the expect

Stanislav Berenshteyn

then go I'm quick a And sorry, ahead. maybe one Okay. -- just

Kathleen Nemeth

it's No. less out to want and just to point initial close back today, to product question, No. where I go Kathleen. we product from beginning we're on revenue. reliant on bookings the gap Stan, of sit year, the based the your one at where the were we that in

far environment has been the So demand thus good.

And product from revenue have of the second year half standpoint. confidence we in the the so

Stanislav Berenshteyn

on Got a just it. for And very love compounding demand the Helpful. then maybe one. quick get pharmacy environment to update robotics solution? Would your an and central just

Randall Lipps

area there's interest Yes, I of problem. there's solve the think a a lot of a lot need in to because that

new adjust With needed meet ROI. was that finding end at of some help of ourselves our of robot the having the to last and efficiencies to we're to in continue the get order the guidance to year, functions given the features

as deploy more feature out we those we so set robots continue to regulations. still will meet slowly continue those build the help And that to but

the is interest. deployment bookings, still So getting lot but a slower. We're of

Operator

KeyBanc. of from the Scott Schoenhaus line our is with next question

Scott Schoenhaus

Good quarter.

again it Can wanted a is But just year? And your XT can embedded much I more to demand IVX guess you then I the of seeing, this the that context color about in question talked The strong how more XT product seeing just guidance it then have compounding. maybe guidance? ask healthy of on first, the a and your lot is provide much embedded on I there. you're in drill how Amplify demand. is [indiscernible] to follow-up I you're side You of of currently, much the how for Amplify. and

Randall Lipps

is a investment really in statement about the XT Yes. the The about Amplify fleet. XT

of not And in we to so product, upgrade call expand a the examples couple script. and customers as we confidence gives but also systems, deploy that it did their only as

is this the to revenues itself not to going the So XT contribute a amplify lot year.

G it we're of and that because in most today XT go systems. actual gives next year those upgrade customers ahead XT this So the bookings will confidence the for their year. hit getting Series products, the Series investment to also older Amplify But they XT probably see to

XT it's in building building Amplify the -- building it's is backlog. So

Scott Schoenhaus

helpful, Really Randy.

now helpful. follow-up So be I that for the you where versus upgrade Series your on is natural there quarter, guess and cycle are the last XT would

Randall Lipps

Yes. yet haven't for number end but a I we we several that series we dig the Series are backs, upgraded of at XT, are you. all the stated call But customers their G can if don't and know the up have maybe that the there yet. G or

kind unlocked. of And become so we're seeing that demand

the And we there's finish it months. -- XX unwinds probably end over most so as the -- of the probably it Series, XT it's of next

Operator

question the from Group. Capital next line with is Craig-Hallum Our of Matt Hewitt

Matthew Hewitt

But obviously, I'm you're Is the Congratulations a strong quarter. faster reception. if little if if a ready don't talk you could little that and the up, talk allowing the there's of Maybe backlog. revenue on XTEXtend about much for know pipeline, the to bit been seems be a bit correct? the strong about I first XTExtend faster conversion. And should correct, like implementations turnaround, it

Randall Lipps

has in macroeconomic slowly with announcement. the the second slowdowns improving. And I part not And their There particularly correct. pipeline probably quarter, important assist scheduled building the things purchase were ups. ability been The the or doing no in actually the had to manpower that we as available Yes, the we speed that products, planned. since to that having all installation. And is saw think were but with where quite the the hospitals just really rapidly us, to environment along

continue -- to predictable. us more environment you that are the efficient allows really And be that And throughout and more think so correct. year. And and will we

are at upgrades, in particularly console look you As those as to much the do. XT not manpower

IT get we aligned will the which also require times, the many us department. the Now with to upgrade of servers,

doesn't -- of included only bit but it usually takes factor. a of And it the that's a a upgrade. be much take in time Amplify may little people the factor, that so And

Kathleen Nemeth

that, the And time to I does approval capital take Matt, also it that process. would add get into

that in of part the addition as process Randy is it to IT, mentioned. So

Matthew Hewitt

it. this then here product anticipate should pop that quarter. Or in nice margins regarding anything was gross Is margins. second of in second kind your question nature my something from gross volumes as hit continue Obviously, building we And onetime to Got in that is a here that recover? the quarter? there

Nchacha Etta

Matt. gross over to We prepared do improvement our Yes, remarks, innovation do as most in continue -- to multiyear with But improve especially scale. there some to strategy, business expect Advanced our margin the as time, importantly, expect grow. said And are our Services margins business our during to see also... continues we we we our as continues will that

Operator

Next David with BTIG. question of the Larsen line is from

David Larsen

the just what please about are totality, bit in can highlighted you X a Services And them. please? think report, the key Randy, EBITDA Advanced that within I Services for you margin press remind us on products list and the of I a think and contribution Services? talk Advanced is couple you Page the I what Advanced of mean, revenue

Randall Lipps

XXXB third-party use inside execute pharmacies their program services a specialty that them David. line, remarks. major Thanks the as hospitals setting locally We're pleased we which to kind of Advanced helping there. of XXXB that is for using and have our up we combination specialty commented question, fastest that the as growing pharmacy, building Yes, our as one product which Services, well in as X is well components we with as of really in

Secondly primarily which is at retail pharmacies. and our is focused EnlivenHealth, outpatient

signed relatively We lastly to to customers, margin grow, And up -- going of the portion continue is is we some nice that some business. and products grow. see high and continue robotic. to then believe that's that We've that services more and are ARR advanced gross

place well in in IV and customers are to XRX. So continue buy the placed as and as that them and Those to place. are them these growing run put pharmacies robots systems

growth they're about margin. of good those and the are really the both X So scaling we and Advanced get major our to feel Services, components

David Larsen

then tech-enabled the Great. described And EBITDA TES, you components Services? also -- and is what margin for think consumables. as revenue and of And like are it I percentage what Advanced of the what services

like what Advanced to Advanced revenue. this for the those piece of recurring and seems to it recurring trying EBITDA portion margin get in just a So sort sense I'm of pieces? your the other is total there -- of like what addition Services, revenue Services of is is that is

Randall Lipps

Yes.

X articulated to are clear, I Just be those advanced just service. that services the

We have services, not services the of tech but which which service. fixed service, are advanced a bright is part it is

We also a and it's part not sell consumables that of is -- product. products

the team Advanced to not I'll that. for can't they without up the the to so enable leave up years And of service. And to customers describe us that over few are problems EBITDA, the the the solve being finance Services Services new to part it solve it's in form a But that of of that either. create the breakout solutions that the last Advanced lines our we've built more

Nchacha Etta

Yes.

businesses today -- the business continue we as the to So it's expect -- EBITDA is grow do the Services growing it to and continue scale. to Advanced

Kathleen Nemeth

XX% specifically, year be we Advanced Services our of for about so And just Advanced the part. Yes. That's just Services, to expect this revenue. Dave,

consumables about mentioned, think more our you field that like and the others which you then The can to services, total service tech about recurring brings revenues XX%.

or with revenue the of being the technical for year the to consumables bringing XX% XXXX. XX% total so for remainder Advanced services, and So Services, for

Operator

of next line comes from the the Benchmark Our Bill Sutherland question Company. with

William Sutherland

their to is you XT this that to I'm Randy, mentioned that curious systems? Medical, with Select just introduce deal

Randall Lipps

... is it guess, I Well,

William Sutherland

What was the takeaway?

Randall Lipps

swap, it competitive a was. was that Yes, yes,

William Sutherland

you. for Good

quarter the then midpoint biggest will question, in the And housekeeping the be EBITDA quarter one Nchacha. Okay. second on just it little At year. the the that EBITDA implies guidance,

understand to cadence. trying the Just

Nchacha Etta

Yes.

primarily is today to of EBITDA our quarter implementations. second Our line sight by have that driven again planned we the

And with expect be this to so our patents. in we historical line do

Randall Lipps

we QX, extra In some right? Yes. have expenses,

Nchacha Etta

Yes.

Randall Lipps

some... And pay increases and

Nchacha Etta

Yes. expenses. seasonal some And

Randall Lipps

of second expenses half the Seasonal Yes. year.

William Sutherland

that. something it like with in And then math quarter. it is quarter kind fourth I looks just doing of midpoint Okay. third the figured the line like was at EBITDA the year, for

relative I So should think -- about and to that? anything

Nchacha Etta

of half the we mean I our including do year, No. EBITDA. our feel about second confident

Operator

next Davis from of the is Our question Barclays. Stephanie with line

Anna Kruszenski

I Stephanie. to is Kruszenski are bit hoping the on factors low end Congrats your and high could about range? quarter. This for of get a just that swing for you the talk to year. on the rest what the the of little versus the And Anna visibility was guidance key

Nchacha Etta

Yes.

half in said implementations, we're year, full the by backlog, we've second with first we our seen from to is of be half year in in remarks, the number especially the what line be we that that We primarily guidance second very confident standpoint. And as plant we patent we've driven half, our we're do again, case, a deliver feel do strong that half guidance visibility with a one. we've about will very the historical the second on our prepared provided. comfortable expect to very able considering So into definitely and going high-quality do this will -- our

Randall Lipps

If as other installations. employee could more to not I constrained add on these side that accept Yes. are component because ready hospitals is one there the and

won't schedules months believe we disruptions. see we for that have We any next hardened X the

and give to really our is the those us health have place care systems longer-term so end keeping processes have to about of to view. kicked in these new guidance allow And us probably this high put the in schedules that

Anna Kruszenski

how leaked Got extent into are revenue at what labor the customers mix impact it. industry such your did labor kind for as just thinking lower And was to contract trends improving labor higher I of of helpful you trends the rest year? super and outlook. follow-up. actually the That's about my industry wondering the the

Randall Lipps

always point key, feature area. of and and Amplify kind two be I tends help that does of functions views. help features can we on put several nursing different One think Yes, very that is And It and sensitive a and nurses. innovations is the XT nursing. -- different it very that sets profiles product to to a have really

do. commitments help And with one customers to the are we're market. But the those can some lessening, implementation we further relief want and the that that's on pressure so see robots. a the gives it who of pharmacy seen they resonates we've you things and with responsible And systems confidence in the we the good to side tech out pharmacies get we lot do installing there. can well results. And remember, reason these some on implement that and with place because in those who system, put process, kinds side, And the that have cases, of can get

are Sometimes do the basic some bring extra prepare you take that but that things have improvement, floor, do robots things electrical, in to ADCs don't much just require improvement. beyond

So definitely do and that have to that time willingness and labor is money seeing the changing. and they

Operator

from next of of Our question Lutz America. line with Allen is the Bank

Allen Lutz

for Nchacha. One Randy or

margin performance gross there Can talk we side? about environment the over the Product As on type months is past at seen of in the then or current you've the that landscape And you product competitive the so? segment. that X pricing past the any change months? the about over there all think changed to Has X

Randall Lipps

to No. pricing, haven't There's -- we I changes don't any think services. major any of been our there's or our seen impact

feel interested we And if to for And our in to disciplined plays in I very think there. that been platform and continue extent, to less very approach really you less customers are pricing, will. like are plays product positive than pricing that sensitive or platforms us. we be it's

Allen Lutz

Got little becoming as environment a we be starting of and macro may green then about some it. bit shoots to show. the think the accommodative more And

here? or important out it driver going around in of more is next What cycle. the you there? As going think XT factors, you X you and X, the of think think you maybe where upgrade as that upgrade X is that about terms or pickup are put macro do to be important -- more years, macro of be some more a is you the about the the Is then to it

Randall Lipps

hospitals for it's at us meet to than of need demands Yes, the of end inpatient. to continue important the efficiency, the think systems and because the day, innovate places in products and pharmacy outpatient. drive demands other need of They I that nursing meet

profits As being you've hospital driven seen and in public many lot driving growth. of -- that of a reports the outpatient their is is

we what want this really And are so to needs our innovate, we that we are, meets which much sure as that holistic a the better enterprise make customer solution market. have

think profile. that's impact on growth have the I going biggest So our to

Operator

Piper the Our of question Sandler. Jessica with Tassan next from line is

Jessica Tassan

give sales average XT some we force? And cycle. products. for tenure the I'm confidence these can force get fertile that to a Amplify Amplify sales change long-term of that a of XT stats us if curious hunting changed the of so amplified wanted kind any go-to-market realigned on the just as that will the leader kind consultative your you Have and I these relationships just deeper ground exists So of I provide ask, into guess, get your or you sales of can you structure

Randall Lipps

Yes.

a it's -- larger great have particularly sales our in for we force, think customers. structure our I

as executives more you not rollout XT deliver allows a upgrade. sets that those on and It's results. accounts. And dedicated success well have managers realize the Amplify, an access solution about to it's more enterprise as really focused We product about

Amplify spearhead have the a rep customer for the great the to meeting every with really So XT customer. reason and is sales a for every

is drive the of very building will drive, why a great and that's it's So -- pipeline center go-to-market lot couple for it's a of results will next because well, conversation driving the of the and years. be

Operator

Our last line Samuel for Anne with of is from JPMorgan. today question the

Anne McCormick

some change maybe And your that the what key to around spoken are? today on of pipeline. you're conversations of their have thinking times finally, could the customers relates how touch about tracking in rate been few just it as I the macro improvement then like improving a environment. the metrics with about maybe hoping was financials your your macro you're you You've just and what And of

Randall Lipps

expansion And and investing was a we are largest systems indicator. When that some conversation, centers, our improvements of clinics. one from up key as new systems macro -- health X see key and our All our Usually, opening generally discuss expanding XX of key we kind customers customers these And I in last the means hours, of are opening is ones. Yes. merger and their you acquisition, that and their of in indicators health up the our footprint. customers that's new walk in that having expansions. into

invest the they those to goals stand-alone they're their their keep and to management to not investing in not our means are out, in as in to for footprint, which systems the sure that's they is a And only is they're we moving because all expansions and that they're they're kind expanding put central engaged our would patients harder them systems as system expanding not where to I their if a because say not require All patient. When it's make I get of efficiency, footprint. they medication improve follow to expanding. them in to go trend us with for are engagement site strategic want healthy. key They but that usually indicator have of a

Operator

of closing Mr. call conclude that Thank for and you Q&A for to back turn I the your question. portion would today's the like to will Lipps And call. ladies gentlemen, remarks. over

Randall Lipps

Well, for return position customers products X and new sure the over and I create it's of strategy. joining these new to a to for we which just focus X point. this growth to a to the see their to today, all Omnicell healthy team it's is to coming board. you nice And us want can thank the and company see to get to us last really months on exciting thank multiyear expansion

Operator

and you you We'll today's ladies day. will that next joining. And Have Thank you. conclude for call. gentlemen, time. see great a Thank

Omnicell (OMCL) 1 Aug 242024 Q2 Earnings call transcript