Omnicell, Inc.

Good day and thank you for standing by. Welcome to the OmniSales first quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this time, you will need to press star 1 on your telephone keypad. If you require any further assistance, you can press star zero. I would now like to hand the conference over to your speaker today, Ms. Kathleen Nemeth. Please go ahead.

Kathleen Nemeth Thank you, operator. Good afternoon and welcome to the ArmySEL First Quarter 2021 Financial Results Call. On the call with me today are Randall List, ArmySEL Chairman, President, CEO, and Founder, Scott Seidelman, Executive Vice President and Chief Commercial Officer, and Peter Keitler, Executive Vice President and Chief Financial Officer. This call will include forward-looking statements subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. For a more detailed description of the risks that impact these forward-looking statements, please refer to the information in our press release today in the OmniCell Annual Report on Form 10-K filed with the FCC on February 24th, 2021, and another more recent report filed with the FCC. Please be aware that you should not place undue reliance on any forward-looking statements made today. The date of this conference call is April 29th, 2021, and all forward-looking statements made on this call are based on the beliefs of OmniCell as of this date only. Future events or simply the passage of time may cause these beliefs to change, and we undertake no obligation to update these forward-looking statements. Finally, this conference call is the property of OmniCell Inc., and any taping, other duplication, or rebroadcast without the expressed written consent of OmniCell is prohibited. We've refreshed and expanded the Investor Relations section of our website, where you can find our first corporate sustainability report, and other information. On our call today, Randall will provide an update on our business. After Randall's remarks, Scott will provide perspective on the healthcare industry and our key customer wins. Finally, Peter will cover our results for the first quarter, our guidance for the second quarter, and our total year guidance. Our first quarter financial results are included in our earnings announcement, which was released earlier today, and is posted in the Investor Relations section of our website at amicel.com. Additionally, we'd like to remind you that during this call, we will discuss some non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most comparable GAAP financial measures are included in our earnings announcement. I will now turn the call over to Randall.

Good afternoon, and thanks for joining us today. Well, OmniCell is off to a solid start for the year, and I'm proud of the outstanding results delivered by the team this quarter. We've exceeded the top end of our guidance ranges for revenue, non-GAAP EBITDA, and non-GAAP EPS, posting record revenues of $252 million and non-GAAP earnings per share of $0.83 for the first quarter. We believe these strong results reflect our customers' trust in OmniCell and the recognition of the significant benefits inherent in the vision of the autonomous pharmacy. The first quarter performance also reflects excellent operational execution and financial discipline, with non-GAAP EBITDA of $51 million and strong free cash flow of $44 million. Peter will review the financial results and the guidance of the second quarter in its own year in more detail later in the call. It's been about one year now since the COVID-19 pandemic fundamentally altered our society and our daily life. During this time, we have focused our efforts on supporting our healthcare partners through this unprecedented time. We successfully pivoted to virtual installs of hospital sites, and like many companies, we implemented remote work practices. We learned a lot over the last year, and we believe the industry now recognizes that medication management is a mission critical element of their care delivery model. It's been a privilege to support our customers as they work to modernize and optimize their medication management systems. And we are confident that OmniHealth is well positioned to enable them to accomplish this effectively and efficiently. Now turning to recent customer successes, We increased our number of long-term sole source contracts during the first quarter with top 300 U.S. health systems. One of these new wins is the largest single sole source agreement in Omicel's history. A top 10 U.S. health system has chosen Omicel to help them design and implement complex pharmacy workloads in support of their very tortuous autonomous pharmacy. We now have long-term sole source agreements with 147 of the top 300 U.S. health systems. We are honored to have been selected for this critical infrastructure initiative and believe a win of this magnitude demonstrates that our strategy and our execution are working. And our second quarter is also a solid start with the addition of Scripps Health as our 148th long-term sole source agreement. Through this new partnership, OmniCell will be implementing automated dispensing systems for patient care areas and operating rooms, cloud-based intelligent solutions, and tech-enabled services. This newest trend is a competitive conversion opportunity for us and underscores the strength of OmniCell's value proposition. We believe that the power of our customer relations is unique within our industry, as we are truly strategic partners with our customers and work closely together to understand, design, and implement complex pharmacy automation workloads. This enables pharmacy staff and care providers to spend their time where it matters most, caring for patients. It is the quality of these relationships, together with our innovative products and services, that enables us to achieve market share gain and improve business performance. Importantly, our advanced services portfolio, which includes several subscription-based technology-enabled services, such as OmniCell 340B, Enliven Health, and OmniCell One, delivers strong results for the quarter and continues to be well-received by the market. As we continue to enable the vision of the autonomous pharmacy, we are evolving. from a product hardware company to a technology-enabled software services business powered by the cloud. 2021 marks nearly 30 years since the company was founded. And throughout the years, I've learned that evolving the business and undertaking a shift in strategy requires that we continue to elevate our culture. For instance, three years ago, I hired Scott Scottelman to help transform our commercial organization to realize our vision, and Scott has since assembled a great team that has been responsible for some of our recent strong executions. And under this mindset, we welcome Christine Mellenthal, myself, during the first quarter of this year in the newly created role of Chief People Officer. The autonomous pharmacy vision requires investment in our people and culture, which is why the role is so critical for us at this time. Christine brings more than 25 years of experience at high-performing software and technology companies such as Oracle, and most recently, CSG. We are delighted to welcome Christine to the team. Our achievements over the years have always been driven by our people, individuals from diverse backgrounds who share a commitment to our vision and seek to make a positive impact in the world. During the last year, employees have shown great dedication and efforts despite the many, many challenges brought by the pandemic. Now, before I turn it over to Scott, I wanted to highlight our recently released inaugural ESG and corporate responsibility report, which many of you have probably already seen. We recognize that we are accountable not only to our customers and our shareholders, but also to the global community. We are focused on innovating to drive sustainability across our business, ethically and responsibly sourcing materials by adhering to internationally recognized OECD guidance, and elevating our diversity and inclusion initiatives. We will hope you find our first report helpful, and we look forward to continuing to drive updates on our progress. Now, looking ahead, I remain confident and believe that we are well-positioned to continue to drive growth and add real value to the communities we serve. We're excited to continue to build on our momentum in 2021 and beyond, and we appreciate your support and confidence. And on we go. With that, I'll turn it over to Scott.