Omnicell, Inc.

second quarter 2024 financial results call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, just press star followed by the number one again. Thank you. With that, I would like to turn the call over to Kathleen Nemeth, Senior Vice President.

Good morning, and welcome to the OmniCell Second Quarter 2024 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 performance or other statements regarding omni cells plans strategy objectives goals expectations planned investments expense management products, services or solutions. results of our holistic review initiative, our ability to deliver more consistent performance and drive long-term success, or marketing 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 omniscient annual report on Form 10-K filed with the SEC on February 28, 2024, 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 day 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 in the Investor Relations section of our website at ir.omnifil.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 posted on our IR website. With respect to forward-looking non-GAAP measures, we do not provide a reconciliation of forward-looking non-GAAP measures to the comparable GAAP 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?

Thank you, Kathleen. Good morning, and thank you all for joining us to discuss our financial results for the second quarter of 2024 and our outlook for the remainder of the year. We had a strong quarter and remain confident in our ability to position the company for continued long-term success. As I shared with you on our previous two earnings calls, we have been working to improve the company's financial performance while also investing in and releasing innovative medication management solutions for our XT point of care platform. Today, I'm pleased to share that we are progressing on both initiatives. Also, we have completed our holistic review initiative. which has validated our confidence in our refresh strategy, which focuses on innovations around our XT platform and offering services that are expected to increase our reoccurring revenue. At the same time, we have identified several areas of opportunity to take actions that are intended to further streamline our processes and that we believe will drive synergies across our businesses. We expect these actions to enable us to progress toward our goal of more consistent performance. Based on what we are seeing, the macroeconomic landscape is showing early signs of improvement and the demand for OmniCells Medication Management XT point of care solutions and advanced service offerings is tracking in line with our initial expectations for the year. Accordingly, We are updating our previously provided 2024 annual guidance metrics based on our strong first half performance and our current visibility of the business. Next, turning to our second quarter results, we delivered solid results that exceeded the upper end of our guidance ranges. We believe reflects strong demand for OmniCell's products and services and sound execution by our team. For second quarter 2024, total revenues was $277 million, representing a sequential increase of $31 million or 12% over the prior quarter and a decrease of $22 million or 7% over second quarter 2023. Second quarter 2024 earnings per share in accordance with GAAP was a profit of $0.08 per share compared to a loss of $0.34 per share in the prior quarter and a profit of $0.08 per share in the second quarter of 2023. Our second quarter 2024 non-GAAP earnings per share were $0.51 compared with $0.03 per share in the prior quarter and $0.57 per share in the same period last year. Second quarter 2024 non-GAAP EBITDA was $40 million. an increase of $29 million compared to the previous quarter, but a decrease of $7 million when compared to the same period last year. CHA-CHA will provide more details of the drivers for this quarter's results as well as further details regarding our outlook for the remainder of the year. We are investing in next-generation upgrades and outcomes-based solutions for our XT fleet of automated medication dispensing systems as well as making investments in specialty pharmacy services. We are enthusiastic about the multi-year journey we have embarked upon here at Omnicel and are particularly pleased with the early customer feedback we are receiving. In May to April, we announced XT Amplify, a multi-year innovation program that is intended to maximize value for hospitals, health systems, and post-acute facilities, that have invested in OmniCell's XT automated dispensing systems, while also seeking to drive enhanced clinical and operational outcomes at the point of care and within pharmacies. We are pleased to report that the XT Amplify appears to be resonating well with the market, and the program is demonstrating a strong next step forward for us in the journey to deliver outcome-centric innovations. We also have further announcements slated for the next several quarters and look forward to sharing these with our current and future customers, as well as all of you. As we indicated last quarter, XD Amplify is just the beginning of our reinvigorated focus on new products and services, which we expect to drive long-term growth. We are also seeing strong demand for our advanced services, which are designed to drive improved medication management outcomes across the full care continuum. OmniCell Advanced Services were 22% of our revenue for the first and second quarters of 2024, an increase from 18% of our revenue for the second quarter of 2023. We continue to anticipate that Advanced Services will represent 21% of our total revenue for the full year 2024. We anticipate total recurring revenue, which includes consumables and technical services, to represent approximately 50% of total revenue for the full year 2024. Now turning to a few selected highlights of our customer wins this quarter. As health systems continue to consolidate through mergers and acquisitions, we find the need to standardize medication management care across a growing enterprise is more important than ever. A nationally ranked academic medical center in Illinois and long-term customer has selected OmniCell point of care and infrastructure solutions to standardize and scale their medication management capabilities. This includes replacing competitive solutions as they merge new facilities into the health system and upgrade their existing fleet of Omnicell systems. An integrated health system spanning Iowa, Wisconsin, and Illinois has selected Omnicell as their long-term partner to seamlessly automate and manage medications across their 16 facilities. This includes replacing previous generation systems with XT automated dispensing systems, while also upgrading existing XT units with XT Xtend, a new console designed to provide high-level security and an enhanced nursing user experience. XT Xtend is an integrated component of the XT Amplify innovation program announced earlier this year, as well We are excited about a new long-term engagement with one of the largest providers of critical illness recovery hospitals, inpatient rehabilitation hospitals, outpatient rehabilitation centers, and occupational health clinics in the US. Medication safety is a top priority for this company, and our controlled substance dispensers within our XT automated dispensing product portfolio are expected to provide greater visibility to their controlled substances. This should also help identify narcotic discrepancies, enable them to better manage diversion events throughout the enterprise. Being able to provide the right medication at the right time should facilitate accurate and timely dispensing, providing complete audit trails, and save time for their pharmacists, nurses, and technicians. Advanced services also delivered solid performance this quarter. One highlight is that a multi-hospital system in southeast Pennsylvania selected OmniCell's central pharmacy dispensing service in an effort to enable streamlined medication dispensing operations at their two main facilities. Adopting the XR2 robot within their central pharmacy as a standard of care should help to streamline medication storing, picking, and dispensing. It is also intended to optimize inventory management, which should drive enhanced clinical and operational outcomes. Our enlivened brand, part of our advanced service portfolio, continues to deliver solutions designed to help retail pharmacies and health systems optimize patient care and drive sustainable growth. Later today, we'll be announcing that a strategic partner has selected Enliven Health's Scope of Practice and Reimbursement Snapshot, a first-of-its-kind solution that is designed to provide their independent pharmacy members with access to up-to-date information regarding the clinical services that can provide in their state and reimburse details for those services. We believe that providing this new service emphasizes our commitment to elevating pharmacies to the forefront of healthcare by contributing to the clinical service expansion and providing greater access to patient care through local independent pharmacies across the U.S. And finally, Onyx Health's specialty pharmacy services grew by opening numerous new managed pharmacy locations and optimizing the performance at existing pharmacies in the first half of 2024. OmniCell's specialty pharmacy services seeks to help customers expand their outpatient pharmacy programs, deliver high-quality patient care, and maximize pharmacy performance through technology and expert services, including 340B third-party administrator solutions. This is an area of investment for OmniCell, and we are encouraged by the growth and market potential. In summary, OmniCell delivered a strong second quarter. We recognize that there is more work to do as we take actions that are intended to improve our financial performance and deliver consistent results. I am very proud of the team's laser focus on outcome-centric innovation, customer success, and our purpose to be healthcare providers' most trusted partner to enable the autonomous pharmacy transformation. Our OmniCell EMs Dedication is something that inspires me on a daily basis, and I look forward to continuing to see the positive impact we are striving to deliver for our customers and for our communities. Now, let me turn it over to Chacha for the financial update. Chacha?