Omnicell (OMCL) 30 Oct 242024 Q3 Earnings call transcript

Thank you for standing by. My name is John and I'll be your conference operator today. Please note that today's meeting is being recorded. [Operator Instructions]. I would now like to turn the call over to Kathleen Nemeth, Senior Vice President, Investor Relations. Please go ahead.

to Third welcome Results XXXX and Call. Conference morning, the Quarter Omnicell Financial Good

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

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

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

to most call, discuss to GAAP measures. Relations a that comparable our our during the non-GAAP releases we of forward-looking the financial press results non-GAAP on not these we would financial measures provide remind measures forward-looking non-GAAP are measures in you to Additionally, included posted will measures forward-looking like on reconciliation Reconciliations we a measures, to do website. With basis. of some this Investor comparable respect GAAP financial non-GAAP

difficult be As turn without Randall? and effort. With uncertain these items unreasonable are estimate I inherently over that, predicted Randall. will and the to to call cannot

where all morning, financial discuss business support experiences to Good results but will firmly in delivery the delivering care innovation We not quarter customers investing only and are and in delivered for result revenues third pharmacy Kathleen. patient our us people improved outlook remainder year. generate positive predictable thank on and of customer driving and they where our outcome-centric today, you another the that transforming to outcomes. our you, of quarter. for Omnicell future. the joining execution, consistent more and empowering Thank solid our for will the they believe recurring remain focused We and the our model updated in to XXXX be

get quarter welcome I the before our are Njoku would trends industry Nnamdi we in to into to formally financials, Now Omnicell. I like seeing third

created the the of Operating Chief During we appointment of quarter, announced Officer. newly to the Nnamdi role

quarters, several and the to transformation. are with taking business we approach the operational I've shared financial customer-first and diligently strategy while our last company's As a you, to over strengthen performance working excellence

everyone Nnamdi I believe solutions-based in profitability model, at towards a helping commitment success. team. shareholder will and be of our our we enhanced service here Nnamdi this evolution excellence to shift essential be be company Omnicell our and speak consistent GAAP of the that in it we management vital business, our in role long-term will operational welcoming to to objective know returns, delivering clear lead scale a we believe change operational supporting further to As and for our whether having or to our our initiatives culture deliver I drive care

a macroeconomic to landscape. turn the review let's Now of

We are automation, our software generally for fundamentals, seeing note through market Coupled and markets. improving analytics. that creating and provider favorable system continued conditions in pleased these are signs of capital end to with are increased stabilization we modernization for projects demand

of in including medication our refreshed whether upgrades continuing are specialty an our or XT excited our pharmacy invest solutions and customers journey in forward as our move outcomes-based and in to focus Omnicell systems is at the addressing health as and well of here fleet dispensing is Amplify services. We investments we we outpatient with acute on for an XT believe product setting. our as next-generation portfolio, We multiyear future making remain customers' resonating well care automated on

our quarterly Now turning financials. to

actions business objective on full planning. appears early, to is this global expense We And and improved our while believe guidance team disciplined we embracing bearing streamline as are and our to internal in fruit and what processes take management of continues raising deliberate we which terms of are are part our profitability pleased ranges it while forecasting to as XXXX our revise systems. year for be outlook our to

We we to end by strong our exceeded in global results. for products Omnicell's sound demand of believe with upper services quarter Turning reflects third or our guidance line and solid our and generally were results that execution the team. delivered ranges which

$X XXXX. $XXX third prior was of $XX a quarter Our the representing and XXXX million, sequential decrease over quarter of third million quarter total a over million revenue increase

or quarter profit of the accordance profit with Third share in prior XXXX. quarter $X.XX share third a in $X.XX a share of compared per per GAAP $X.XX per quarter earnings in and per to XXXX the profit of share

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

in decrease period details with non-GAAP a achievements key quarter. when third performance as details of remainder quarter million team's previous of will to as wins the a was now quarter's I'm of our few $XX regarding decrease for customer same the pleased year. I'll provide drivers Nchacha of this Third $X further $X the a million, this and outlook for quarter well more the to the of year. million compared quarter. the XXXX EBITDA highlight compared last the the

the our medication management of customers' needs, successfully our to are solutions We across care positioning full continuum. address portfolio

momentum are seeing this with We resonating we from market. seeing are that and some the the is XT also program, positive Amplify signs continued

We flexible which foster approach and responsive are an result to innovative embracing believe more better engagement, experiences. agile will we and in customer

XX value these gaining multiyear we innovation to appears selected earlier their be announced part Our Amplify of Amplify XT an the medication safety experience. program they clinician innovation which seek in integral our campuses effort hospital XTExtend, to XT standardize several is as to to of systems. new their system momentum program, upgrading management that In XT and nonproppant by an customers solutions. offerings fleet its Through across as this partner and Minnesota-based maximize enhance with health long-term year well security. point-of-care health across market as Omnicell choosing

recent optimize and production Ohio shining You service the security in enhance through of that to IV agreement reporting on greater impact control. as the Amplify delivered the system potential due in system may health for a X have hospitals instances compounding also signed help the IV shortages. weather a events from need an light their IV in their control some of X-year to hurricanes The mitigate our the to fluid and strategies shutdown chain to chain effort in point-of-care resulted health it IV supply on shortages and looks safety a systems benefiting has solutions upgraded health seen to have importantly, of existing supply compounding innovations nonprofit accuracy, XT safety across A program. of

often anesthesia is dispensing of with lagged. addition standard medical on upgrades the purchased. the in are the care chose of its with extend the cabinets print This While XT cabinet in expanding its rooms automation leading across automated A partnership dispensing academic in automation XT workstation. all and Omnicell, floors, setting adoption products operating room automated center to amplified has Boston nursing to to operating they system our

health care enable specialty Specialty Services outcomes. Omnicell we to their anesthesia delivered and workstation and with the central Central health customers storing, enable to dispensing. integrated patient effort pharmacy management, operations and settings. Advanced picking and the is as inventory pharmacy also system Our quarter enhance the dispensing patients perioperative third new and Services help pharmacies within a service highlight pharmacy dispensing is that It to solid customers. the clinical help security performance. care Southeast standard help another medication to optimize selected optimize system intended label specialty in-house medication, of enhance operational programs adopting should in In robot medical serve XRX printer to the its improve Omnicell's for enhanced opened is an large X intended continues and more to an streamline safety which of medication to One center should improved quarter, drive performance.

enable and commitment and that the our everywhere SaaS The for our each are that and enhance the brand, that showing a team of outcome-centric patient designed including the our financial Omnicell help purpose customers and is I'm as Omnicell Michigan strong this to need We believe proud recognizing performance. improve systems system to pharmacies transformation. Every Enliven's X customer choosing EnlivenHealth outcomes in for intended performance systems, receive support of better focus operational our to our health on management continues large across Several communities. driving and quarter. actions and solutions systems hospital to continuum innovation, it customers, clinical And our Our stepping patients the solutions up solutions up very to performance. and health seek day, be trusted to pharmacy success deliver the of see and they team's care. In excellence portfolio part most summary, are services are experience comprehensive and focus and partner selected is taking patient other, delivered our engagement health financial care. and to the is care autonomous these of provider's of health walls deliver medication consistent extend I results. patient a for beyond health Omnicell consistent optimize and for retail enthusiasm has more Georgia drive employees improved advanced third

Chief do. work are more Financial and delivery for and the Omnicell have diligently Nchacha consistent support turn this way our model. At transform revised for review Officer, performance I'm Etta to to we along journey. confident long-term quarter you Thank third your a financial over our to our point, work we of to of progress guidance. detailed we as the as care our like multiyear call on toward I'd modernize We results Nchacha? delivering pharmacy But growth

walk Randall. line our or and execution consistent of to We environment as you and of well continue guidance. solid am team upper higher year issued as at stated We generally non-GAAP to with than quarter third for range. as share the guidance expense daily control quarter revenue stabilizing third drivers principles the performance of per some focus to basis. guidance. our provided believe demonstrate this our our commitment proud through financial delivered who our quarter commitment updated improvements. I Total promise guidance. came macroeconomic EBITDA you third reflects and am XXXX previously our while and our as a on XXXX in exited results Thank well going non-GAAP process earnings our on their our in previously Omnicell to full previously I end the guiding the

website. Dispensing revenues million, down quarter of in increase quarter revenues prior the a and by of quarter $XX as Similar due technical posted and third A primarily Specialty quarter actions XXXX Services. including the of has over full quarter million demand growing an advanced third an points services of the in volumes revenues of third and our $XXX customer million of the XXXX EnlivenHealth third store were the advanced of and technical to our Relations the million, of and third million third were advanced increase well of Investor $XXX of increase over Our of are quarter group compared performance GAAP XX over an both quarter revenues compared to the service the were included in the XXXX. XXXX. the XXXX. for of XXXX the total the $XX gross previous quarter to an as Product margin to business. Service the to from previous quarterly in our was are base million, XXXX strong pricing decrease our our quarter. $X the quarter $X the increase Automated $X from over third of third our for quarter million each second last decreased non-GAAP lower results in services Pharmacy Product Revenues quarter the of press which services our basis of on and XX.X%, earnings over contributed prior were aided third third million compared releases, impact services. Non-GAAP strong XXXX, to million and quarter. increase reconciliation to quarter quarter, $XXX XXXX $XX of reflecting an Systems

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

is management's consistent evidence to GAAP that progress. we goal As of to we have believe profitability. mentioned this return previously, it And is

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

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

XXXX quarter cost expense balance reflects XX, quarter At as compensation the quarter end as increase. Free million. quarter the annual June earnings $XXX the third result during of $XXX million and of $X XXXX. of was was from and employee our compared operating the and of Non-GAAP non-GAAP third of cash up lower of cash in flow quarter EBITDA and Third XXXX share per cash timing non-GAAP cash prior equivalent million XXXX, management. flow was a to third our merit the free the strong

these were days. sales quarter XXXX for XX In third terms of receiveable, accounts outstanding

September continued our working XX, of an and million, increase with were September of management. collections the a We million from decrease of $X capital quarterly from $XX are million XX, as and strong Inventories pleased quarter XXXX, XXXX. prior $XX

on including ranges of non-GAAP full Based and per end ranges outlook guidance. our our updating bottom bottom the we the increasing bookings EBITDA. to XXXX guidance first top the the and year, increasing quarter remainder and turning earnings the for XXXX of end and both current Now of our results are non-GAAP year revenues and for share the total for visibility

year billion EBITDA year For revenues of million. to the to $XXX XXXX, of in now in range ranges the in increases of now are expected range to to expected the to $XXX range momentum commercial in in million expected a million. XXXX to $X.X to believe share to per $X.XX. management the guidance be of in reflect strong full we be be $XXX and Total $X.XX Non-GAAP We is be Non-GAAP earnings anticipate $X.XX these the culture trends our is organization. range million full $XXX cost bookings of our billion.

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

seeing million we revenues fourth are total be business. from overall $ and expect XXXX million be scheduled quarter reflects and guidance with in and to between fourth $XXX product implementations $XXX between $XXX be to and services visibility product million strength and between revenue the We revenue XXX the to million The to million. $XXX revenues $XXX commercial million quarter

and million. We quarter non-GAAP XXXX between be million $XX EBITDA $XX fourth expect to our

per earnings the earnings XXXX $X.XX Non-GAAP investments expenses $X.XX per expect between quarter quarter fourth share in fourth for to EBITDA share We per and and innovation. seasonal the and includes be share. per share continued non-GAAP non-GAAP

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

we XXXX, plan call, announced in bookings to on last metrics beginning we we our provide. that the earnings As change

connected include services consist software software licenses. licenses, devices our guidance, Beginning which to bookings plan our As product and a bookings, we currently XXXX provide and reminder, consumables. connected with and advanced devices of

of to and will also recurring consumables. which plan We and metric technical advanced services, new services our provide consist a revenue,

historic reconciliation well bookings utilizing ARR as new the the product We booking metrics to planning provide metrics. as XXXX are and a

given corresponding company comparison a going manage how business in have to for growing these you reflect our believe metrics So XXXX. apples-to-apples forward. be particularly and focus revenue modeling our the recurring and We new should you on we better helpful understanding will internally

operated I would team up reiterate in we wrap improve the call we of of would commitment year are and with like to As we results the solid the their execution for for that for their form full stronger XXXX. third customer-first now questions. to provided XXXX like to to quarter of a thank for outlook guidance our the want Omnicell the pleased have I focus. We the open entire take moment and to also

Instructions]. [Operator

Your first Craig-Hallum the question from Capital from comes line Matt of Group. Hewitt

anything a product anything Maybe in strong bit be better the first here side. you're services to any up The with the the anticipated from still just to leading side, growth the the is delayed curious, dealing was revenue on there another hurricanes? or implementations side. headwinds. Obviously, of But related that Were I'm performance there little QX? may obviously,

The you QX did thank not any our the for Matt, hurricane in have revenue. impact question.

in the was line As we do with expect and revenue revenue also you to our saw, expectations, QX our increase.

gross therefore, where is Got product XX% little the higher? third still to bit should COVID closer see supply a just of continuing you of and I'm pop a working curious, which back take creating a of ago, trend couple then how you inventories quarter. of long the through Are that headwind. the to margins, gross in to just very it. And do think do during nice here challenges purchased years it a And that's were or margin? when you maybe to get you some

overall will with been improve our having customers ours. we've focus a a know, on in start margin in the regards financial improving getting skills are invest contributing and we and as to you margins services We that advanced believe performance position key start the that as gross impact we the where to to to a our do over continues as of we continue margins expect our positive time gross to in meaningful years feedback focused Matt, be should revenue. to [indiscernible] our initial those also we're continue, from contributing the over

I'll now it's revenue jump of a the from mix a reflected. just And there referenced know different and he few streams do in Matt, of have XX% seeing Kathleen. you're years ago. that margins We

we know, have specialty through you as is flowing So that that's scaling. still

margins a So lower. there bit the are

bear it continue So the strengthen to we expect progress, ago. years different in that we we'll is that few to than but mind revenue continue was a mix as --

And mind. helpful. one, really don't That's one if maybe last you

the Regarding XT pipeline. Amplify

experienced curve. maybe of is you've Is of will, more here This see greater equipment. type would an you not is replacement this software. an over that more last was bell-shaped loaded, for Would opportunity this cycle than more there maybe maybe the that few bit it you over different X than big you of a to to Given upgrade front-end this typical where a a follow the would with the first be demand upgrade cycle? a years, you X typically if would little anticipate

Yes.

I more that XT upgrade technology on-ramp the Amplify never had new an an think right? is to than we've cycle, It's before.

innovations before. that out, this have can strong really solved really some show does that it MedChill. we and to it. the it products continue several an engage really we while console excited customers us you to new coming it access committed like levels upgrade, XTExtend, And selling as these to solve so never customers problems with about include market been new we solution feel to And are that innovation some we've path in allows going which call reflects And to we on that the uptake are of and

essential to that today's And care XT and in so has software types just of health deployed system. hardware It than much console Amplify the is more upgrade. larger is be the

question. Next

of from from the Jessica Sandler. Next question Tassan comes line Piper

have Amplify end to know ask of year-over-year kind the the continue -- but to being cabinet don't stable just just XXXX. cycle? cabinet about of they should 'XX yet, thinking the of about off wanted directionally guidance Or excluding essentially we the base? the be in we I as I contribution, decline through will

cycling couple going cycle of of on, actions the the XT Well, down. The we right? is G Series a upgrade have from

to out So there of XT have the we a market with those the that are in opportunities Amplify. now less expand have that upgrades XT to are fleet do opportunity the large

looks Series adding to in are upgrade XT these all Amplify generally large the of But different of it midst in differently. expansion the So G-Series their on or as there's providers accounts. new customers C or hospitals series, --

So along. it of as and, of competitive allows come expansion several course, modes wins they

releases on And perspective you maybe, cycle. Randy, helpful. some amplify we about cycle some be cabinet should of product then offer thoughts. new just intact. the can or Does life of could cycle, still refresh if It XX-year be cadence the that a of is would kind provide just you thinking That's this XX-year which helpful just how it is historical change component

really to really a good That's software the on-ramp generation for and extends Jess. this hardware. allows of question. next No, Yes, technology, our and

that want we technologies really achieve to So disruption. it one technologies, make without upgrade customers of the for acquire easier as to is things new new to to much

Amplify move the XT our planet customers to time, we you future. with but all It the makes on-ramp is as really about investing they that is some of So we're good things, in the investing it next-generation more start. also these be and their we're them Amplify really is the and what in on resonates And talking coolest have, we'll feel today. forward the which technology, in how

us never it customers part. we're new like And that So right, they resonates used with potential what doing. who've customers before, love both

from next Lutz Allen the question of from Bank of comes Your America. line

for here. One Randy

going change? sequential some push XQ what if the figure but at then as quarter dissect been on few just trying market negative the really you more XQ, for XQ And about look is which the Is a around of guidance gives asked Matt it the trying what's revenues there at extending more product couple strong. market to Just just the past is of the exactly revenue and past is And the the already think know improvement type exactly sequential I get look was level, that quarters year. the product Because there's look of over side? we confidence in change kind high side, back a trying into we weaker. the to I around to of to Amplify what getting of years, driving into it improving? a But revenue product to XQ. was Is back of driving kind contributing sense out the the

good QX QX, Yes, what's resources guidance in just predictability on own to and basically our and really met we and strong substantially schedule represents even our question. up customer the meet We've those We and different. of quarter. before great are There's able been being schedule. very on working create based to the resources our nothing hard and ended those schedules set

it's guess end I revenues. And bottom confidence product high and well we of guidance our of just be revenue balance the getting feel meet confident can So bookings. that -- our as our service, we advanced as we really recurring clear, revenues the services, for our product these to ranges raised technical right did about and

So about fourth we I pretty feel quarter. think good

like continued the up business, opened the in you there. follow-up comment from you there's pharmacy specialty then around made It a X momentum seems a quarter. And

As we think lot about specialty pricing there the to XXXB. inflation Reduction and there's drug impact a of Act,

to table? bringing read to conversations your anything there's those them from Is to it a so if to in? any Trying like of with And the it year. either changes part negative the or customers' IRA understand is of Is these causing impact business. them positive that on begin had type of customers? Has your your prospects seems it lot that changes or that next bringing

on something previous large was years mostly that specialty think focused very in entities. was I pharmacy Well,

that Now bring the the types specialty small we with can hospital on systems site. services the table, of to inside even on things pharmacy take and can their

think market. it's And the broadened so I

understand have because have with has to a piece of board are entities. and complex coming catalog and larger are ability deal there broadened. the drugs off the gotten more expertise these on dropping market to for the ones So happy expert kind It's you the to which and which

is increasing and and strong the So the markets. there I'd and say smaller middle in particularly demand

[indiscernible]. Thanks, Allen

Next question?

of comes Davis Barclays. from Your next line the question Stephanie from

just cost optimization the could initiatives, COOs. fee we creation of magnitude hoping the was earnings given I of and revisit a recent the the

think only to on date, priorities been So there it's color a as been about third-party COO like gets from any opportunities your any is top that his and Njoku there consultants how we taken seat? should he initiatives by Nnamdi the earth major acknowledging hurry into on the has month,

you the for Thank question.

you performance taken of or some XX financial seen as So taken and we've a the actions months, the the improve have actions some we've our company. opportunities driven of across been last quite really that know, to actions over we've lot by

that to innovation overall will ] and well our needed see as [ take that to so improve want you drive to overall continue We explore part really efficiencies investments fill this improve along is and financial and where in our opportunities our has results, make performance of financial we become to continue today. us further part that can continue operational Omnicell we to of sure company we culture

Are you a that can talk us like buckets of maybe initiatives level X deeper give can strokes granularity? or there broad any about on

area optimizing across board. the earlier, We opportunities efficiencies Nnamdi especially leaving that on sure within areas there like forward, make going unturned. coming on mean, I want that refocus operational a key we have whatever are is But few looking to are I with that Well, at company. mentioned we're will we're we not we any one stone

will We performance. to overall done as opportunities areas the improve business to our look the past we've continuously across all at identify in

across at And with leaving just board that Nchacha, looking really stone of as as business, and European taking of operations add, type down, one unturned. our Stephanie, I not would any approach, we're that winding we're the the you saw

there us well? you the now a as Super chain mind just the the follow-up Is can supply any helpful. is management retail give right hospital Services. And few next there years? med around quick as adoption on opportunity Is centralized really beyond rollout of top pharmacies Automation and Central color Med just for over any

costs about these Yes. robotics. as offering for services. little X quite quite because to all or -- centers on-site to picking of out gains We larger launching and their a our XX, some these by enormous hospitals. for XX than together services central X used see X the launched generate we allow center these central single of a and pharmacy bit service can of move the center entities they have into of where are gotten And we in hospital And some put XX, pharmacy service consolidated unique not and talked but and considerably use that really an our and cases, robots individual hospitals able accuracies are efficiencies emerging just consolidated to creating of put a get the a we bit

line question Your Anne comes from of next JPMorgan. from the Samuel

to spoke You ROI. I hospital little it you spend and prioritization some And expand areas? across how of loosening the they're are kind Maybe within of seeing market. maybe stabilization about product board? are just could Or you bit. in then discuss budgets a the And hoping just that on was specific thinking seeing

strategic think Well, for that is think these on investment key I when about long-term you the the pharmacies, service spending centers. like return consolidated

that to particular for out not significant decisions just programs but much some a So are these that an need upgrade year, involve make term. rolling and systems significant multiyear in longer

really multiyear, broader-based multiyear It's be our table key we getting our And make well customers a really a those the conversations want X event. want to and into that as come C-suite ROI pipeline engaging our involved starting about we're order have means approach and this level. of implementation in for reengage seeing get not these them, us give in returns sort to to us we're just but comfort opportunistic us discussion and out the really on really to to discussions them strategic these them at decisions events year, so as see multiyear because platform. And build the pharmacy And the rolling entire it. from a really you both bringing we these and to conversations and which

That's great to hear.

you headwinds we're about of speak we end And the hoping As up year, to bit how out just XXXX. little to should tailwinds thinking could then how thinking maybe coming be and that also on should a Amplify about we within as I context? be look the was you

been those incrementally continue. comfort it that now trajectory a improving It a to before is they I and strategic capital, quarter-to-quarter. start give of projects. out health And positive. on them investing run and doesn't we're think that, just have I because would they a systems in several Well, assume good in quarters takes that Remember, health mean system spend row would

these their this that us, I and about assuming and as bring add see both much continued continues interest just talk and there in capital think go their as operations really willingness lean and form, seems I they think, to on, that a long both down. some customers which is So talked to they future, continues flatten about rate spend went continue one were lot larger strategic new I the the their or to to to sensitivity of which continuing in a things be requires is consolidation. projects. And continued for They conversation in X for that week trend, acquisitions. pharmacy I look it to doesn't the was levels. requires but money into system, good stop, think strategic it I these just to to put thing a affordable they spending, to strategic the that to it going that more it's seem to and just into I at had a rate

steady I we're would slow, of or those people in changes more think think improvement it's don't there. some way amount as in what insured. the I insured how It some macroeconomic. much. pay be are they're or see the seeing that Headwinds took But just really a out is I change So tailwinds. payers

I it, as signs some seeing end on add about the positive we what markets We Randy, and macros. as certainly, is all are. would think well we're

sharing you well along we've couple XT over the we're For the path on quarters, of bookings perspective a upgrade from as with been the last Omnicell, cycle.

So that's we go forward X X keep in quarters. to as something to you well the mind think as next business over about Omnicell's as

within that just takes of kind revenue. Great. know the kind And to and bookings of for to Amplify -- to those of up year, back of the then it bit just of thinking little headwinds follow convert be we just tailwinds should context of next I a when we about maybe maybe question, half time kind how for

that? be how about thinking timing So should we for

and conversations the we just started, rich. are Well, I I think think

give a basis, as customers for that I new regular even driving do continue to launch to and reasons enrich amplified deploy innovations that more that we we more on think platform will anymore conversations the will sooner. those

not think so platform. Amplify place. take revenue event uplift Amplify conversation the the getting just it's from I that broader does when the And about It's about to get the broader

in this discussion. customer -- to at we intend see to I pretty point, XT I are expect that Amplify engaged much see the every So

we the tailwind as that a XXXX, and be good So we're that beginning us move the don't from have many G we into though even have we upgrades map, -- road should as Series. to

KeyBanc question next Markets. Capital comes Schoenhaus line from Scott from Your of the

product of get give I Amplify to Series sense want how talk on of between into heading And you then more see you the the far bookings cycle software you're where set color year, opportunity about sort through the XT away opportunity on and the currently X. along mix currently? in mentioned both or any Can the of upgrade you us those side. you just XT next hardware. the most for Can the

think I through we're XT to Series. upgrades substantially G-Series the Well, the

kind the... we're at of So

booking. a From

to standpoint, From series Amplify we're you, the a From other standpoint, allows and innovating. that more products like booking a booking access MedChill customers yes. products Kathleen. new Thank

well additive marketplace driving So out a as fleet in to have the and functions new that features desire software get these products and in there XTs deployed things. in there -- the other is of these we as

and as at looking ambulatory. just chain And the It's of the the about access at on products upgrading not so supply of new to well ways solution new it's end all getting as sets in about cycle.

get from want they to today can the So X we customers X, over where to years. figure they be out next where are to want how

Amplify XT into stepping old." upgrade it's we the them that new their a not more problems, then world, And need the is a you are discussion just And things is these so saying, discussion "Hey, to -- the with positive and solve customer because it to because that that. And system. is on-ramp just give helping them to

why the Amplify that think several can because I well so of customers continue Amplify And XT we'll on And really see parts is levels XT lot access. with there's a engagement us. to resonating of that's

that on revenue right more Moving about their as advanced more advanced mixture that's systems we of complex and well to margins pharmacy as that the year? services-oriented part services should you're into of Obviously, services then software software mix think next helping Services. need How And obviously, on a Advanced with streams. the heading these modules now the hospital comprehensive like XXXB.

Yes.

at we our the So we that I well, as as I Services see we for as standpoint, is Advanced from for year. the Advanced continue performance around earlier, you growing, scale, that be to I our want services the this to look grow to call in margins. But I to expect advanced and expect XX%. mean, to year, year an Also, think rest contributing we invest do opportunity of continues do and fact Services an we again, do full it we Services the overall to -- mentioned see do business to continue Advanced the if

growth So really XXXX. solid going into

but the easy the we And of run growth, make fast, moving that transparent, we're business. of understand to is Services really ARR to recurring way Technical revenue, continued metric continued business growth our we to the really in business. probably think our portion next the not and Yes, as quite more really this helps year. double-digit that's

that that sure going of all set forward you. we so up make And we for way wanted going to it

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

wanted that's market bookings? to are I IVX potential kind the the outlook for go on update guidelines by required through get FDA just with getting and some into that an had the we of where the redesign to and the

We've and optimistic us up about releases to outcomes next it's to drive beginning these better it our make for is still say I'd Yes, sense lined those requirements, more customers. optimize slow, help got to it. but very we're and

-- and great see quite over the momentum as product, believe building, not increased So like. is still we it's But bookings think we'll year-to-year, would see but fast its I everybody slow. we as increased and adoption a maybe

there around thinking next what year ask capital Any also Got it. with deployment. be that? the wanted the just and about due And might convert bits I to thoughts particularly updated

And a We're very continue the strategic we we do is of -- dilution shareholder ensure no explore Yes. the options to standpoint. mindful that have there or convert value timing of maturity. to from

balance know, strong cash in with you position sheet our a $XXX revolver. million on very million and close we are As a to $XXX

as ensure options we're advantage have. taking notes. the a a with X.XX% different we're convertible not also position, not do we where And position But -- very we ourselves to you find in so we that we looking are at senior our that know, timing in solid a in of

will in the take here we future. in So the near some actions

I looking but your have note Bill, to to capital that would get at well. goal shared that to we question that performance, you as on deployment, also consistent we've a metric we with are GAAP ROIC

within seeing So capital disciplined is getting in our prior return it couple much comes last the when capital. invested of the quarters over improving we're deployment that to decision-making company. you're more What on

Your next question comes Berenshteyn from the line of Fargo. Wells from Stan

just to of the bookings through to for one upper bookings? what end guidance. to range a on needs quick talk get happen Maybe you Can just us the

the do that We bookings our Yes, the bookings the the year, Again, us of today, to should operations lower guidance are get year-to-date. to confident the that confident very with for of confidence bookings year. our Stan, expect no, for through our achieve that comfortable the -- commercial is from that seeing to rest have we in improving of at that lower we guidance. that end momentum -- go as we're we've trend year full we the we guiding our the bookings testament what or achieved continues, and we end of look momentum end a we revised the this we're

the changed primary the launched conditions last Yes. economic thing has things the -- products. just, is improved. customers And we've over is new our X of have X Stan, things other years. One few primary And

more that's in more of have buy. And strength we the I think customers QX. the and to willing our So pipeline for pipeline

being talk just fourth you in Okay. I is through And light bit quick seeing that's you're us timing pushed what quarter. revenue. little follow-up the out, a quarter? Can versus guidance. XQ. came think, a just Obviously, into into And product impact a XQ on ramp that happened the now the

Yes.

full ability line revenue product us revenue revenue the lower revenue again, and as saw in increase we of will to earlier, achieve XQ expectations. are did year our just you total our end I the for -- on And it guidance, be year. product our to with product full confident gives is that the we was that's mentioned Our achieve our about able revenue And we our [indiscernible]. confidence as

BTIG. Your line next question comes of from from Larsen the David

Can product? or quota How those reps allocated are a ago a go-forward Select? for Or like it? around services of what your color portion Any advanced bit of large all talk sales carrying strategy mixed to Enliven to is ago. is are about and many versus X your relative years little year you How it together. like sort

product deploy single solution Yes. then are And force have those, that to enterprise of instead accounts quota-carrying not force long-term as in that sales all building has do We've set connecting as evolving solution to it more a with the better of dedicated been strategy just relationship a building. been enterprise have past substantially reorganization with job has come set and more customer And those maybe people of our of from help the to opposed our strategy heavily single to event. because the with as our of but that have we to do the weighted the just the sales and the opportunities. relationship

that as numbers people. this much they've better year commitments seen predictability So exact kind numbers that those and the I really we produced. sales will We on continue don't that the evolve made disclose our to we've the move really forward. performance from force and they've of and we think But the

with we're we we've are. gone and so the somewhat through happy really And feel we where years, that change sea last of over really a couple of

CRM very That's just bit can And a maybe about your helpful. little then you platform. talk

few each client, I really and/or reviewed actually where measure a each account, think sort you backlog. went through a of process years ago, how you bookings you

revenue number. reported you got if just in on quarter by bit your I that, as little then call. you will conservative much And you backlog how be backlog the more reported fourth when report your please? maybe and what think Can a covered you it your about talk of 'XX just

don't are say Yes, the XX the David, generally, I months install. we specifically. We devices XX think most connected say backlog, of to in

redesigning creating XX And of people suppose, lot would report will our but really that of a a a and revenues our more just move next allowed time coming significant the of service and also in to for spent X our it's their in systems -- we product terms to to CRM sales say bookings, our out just not not I measurement. most revenues not our backlog So much question, well. redesigning step-up of -- last but the easily customers months, be that our we've deploy somewhat as quite us force predictability, system, over precise and capital. backlog that's better our I get And but easily understandable to for a better the processes go-to-market deliver

that to what's X the that results. this people. more processes these So And I over feel like is consistent in is we've why confident and We've taken X. last all done much And systems, time these driving QX. years are about invest we

for Lipps Q&A time, back like closing call session. our no are Randall questions over would there concludes As this that further I at turn the to to remarks.

folks team. world. for welcome the Nnamdi to hardware just solve X big and on you new us commercialization results leadership has helping them exciting the make last have reengage like to then better forward your difficult to flowing P&L. finally, we And whole next step. the develop next it's the really in really with And problems see team point. management great the so I bring extend going the just worked Omnicell And of Well, time. thank to We us customers I'd to Cheers. innovation We'll are you just this the years these It's to through continuing refreshing. that really see to to to the hard a to to look all this medication

joining. That concludes you Thank all today's for meeting.

disconnect. now may You