Omnicell, Inc.

I'll turn the call over to Kathleen Nemeth, Senior Vice President, Investor Relations. You may begin your conference.

Good morning and welcome to the OmniCell Fourth Quarter and Full Year 2023 Financial Results Conference Call. On the call with me today are Randall Lipps, OmniCell Chairman, President, CEO, and Founder, and Chacha Etta, Executive Vice President and Chief Financial Officer. This call will contain forward-looking statements, including statements related to financial projections, or other statements regarding OmniCell's plans, strategy, objectives, goals, expectations, cost savings actions, holistic review of the business, or market or company outlook that are 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 issued today in the Omni-Cell Annual Report on Form 10-K filed with the SEC on March 1st, 2023, and in other more recent reports filed with the SEC. Please be aware that you should not place undue reliance on any forward-looking statements made today. All forward-looking statements speak only as of the date hereof or the date specified on the call. Except as required by law, we do not assume any obligation to update or otherwise release publicly any revisions to our forward-looking statements. Our results were released this morning and are posted on the Investor Relations section of our website at ir.omnicell.com. Additionally, we would 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 financial results press release issued today. With respect to forward-looking non-gap measures, we do not provide a reconciliation of forward-looking non-gap measures to the comparable gap measures on a forward-looking basis, as these items are inherently uncertain and difficult to estimate and cannot be predicted without unreasonable effort. With that, I will turn the call over to Randall. Randall?

Good morning, and thank you all for joining us. I will walk through our high-level performance for the fourth quarter and fiscal 2023, including some key customer wins. ChaCha will also provide an update on the current demand environment and our Q1 and full-year 2024 outlook. Beginning with our results, we delivered overall 2023 financial results roughly in line with the original guidance as we provided in February 2023. However, bookings for full year 2023 were down 19% for the prior year and missed our original guidance. For the fourth quarter, total GAAP revenues were $259 million, down 13% from the prior year, Total non-GAAP EBITDA for the fourth quarter was 24 million above our fourth quarter guidance to the strong expense management versus 26 million for the prior year. GAAP earnings per share was a loss of 32 cents per share versus a loss of 64 cents for the prior year. Now, let me be clear. We do not view our recent performance as acceptable. Although we have taken various actions to improve our performance, we intend to take further action. For example, over the past few years, we launched a number of advanced services that are gaining traction with customers and beginning to scale. We also previously announced a heightened focus on managing costs, including an approximate 7% reduction in our workflows announced last quarter. These already announced cost actions are expected to result in $50 million of savings on an annualized basis by the end of 2024. But we recognize we have more to do. Our results tell us there is a need for a thoughtful evaluation of where we can potentially make further changes to improve, from our operations and go-to-market initiatives to our product portfolio. Accordingly, we have decided to undertake a holistic review of the business with the assistance of an outside consultant in an effort to determine how we can best optimize our operations and investments. Now OmniCell's strength has been demonstrated repeatedly over the years, and we believe our core point of care business remains critical the health system's ability to safely and efficiently manage medication across the continuum of care. We intend to continue to evolve as a company to improve our performance and deliver returns to our shareholders. We are moving forward with this work with determination and urgency. We will continue to transform the pharmacy care delivery model and advance the industry vision of the autonomous pharmacy. However, WE ARE COMMITTED TO ENSURING WE DELIVER STRONG RETURNS FOR SHAREHOLDERS AS WE WORK TO ACHIEVE THIS MISSION. I LOOK FORWARD TO UPDATING YOU ON THE PROGRESS. FOR EXAMPLE, FOR THE PAST FEW YEARS WE LAUNCHED A NUMBER OF ADVANCED SERVICES THAT ARE GAINING TRACTION WITH CUSTOMERS AND BEGINNING TO SCALE. WE ALSO PREVIOUSLY Part of the interruption, we are experiencing a technical difficulty.