Omnicell, Inc.

Thank you for standing by. My name is Eric and I'll be your conference operator today. At this time I would like to welcome everyone to the OmniCell second quarter 2025 financial results call. All lines have been placed on mute to prevent any background noise. After the speakers 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 Kathleen Nemeth, Senior Vice President Investor Relations, please go ahead.

Good morning and welcome to the OmniCell second quarter 2025 financial results conference call. On the call with me today are Randall Lips, OmniCell chairman, president, CEO and founder, and Chacha Etta, Executive Vice President and Chief Financial Officer, and Nandi Njokwu, Executive Vice President and Chief Operating Officer. The call today will contain forward looking statements including statements related to financial projections or performance and market or company outlook based on current expectations. These forward looking statements speak only as of today on the date specified on the call. Actual results and other events may differ materially from those contemplated due to numerous factors that involve substantial risks and uncertainties. For more information please refer to our press release issued today, OmniCell's annual report on form 10k filed with the SEC on February 27th 2025 and another more recent reports filed with the SEC. Except as required by law we do not assume any obligation to update any forward looking statements. 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 releases. Our results were released this morning and our financial results press releases are posted in the investor relations section of our website at .OmniCell.com. With that I will turn the call over to Randall. Randall?

Randall Good morning everyone and thank you for joining us today. We had a strong second quarter and first half of 2025 and I am pleased to announce today that we are reaffirming our full year 2025 outlook for product bookings and annual reoccurring revenue and modestly increasing our full year 2025 guidance for total revenues. Non-GAAP EBITDA and non-GAAP earnings per share which reflects our strong first half 2025 performance and greater visibility as we move through the back half of the year. I am proud of the team's ability to deliver strong despite the headwinds from tariffs and uncertainty in the macroeconomic environment. I am also pleased to note that we are seeing that overall customer demand is tracking to our expectations which we believe reflects the strength of our innovative portfolio of products and services. Customers appear to continue to see the value in our products and have been receptive of broader pricing increases and strategies we recently started to implement. Also, we think it is important to remember that our install base has grown significantly over the last several years and as we continue to announce new innovations and capabilities, it should position us well as we move forward. I am excited about the journey Ami Salazan is on. Evolving from a device-centric medication and medical supplies management company, to an -to-end medication and medical supplies management technology platform company, combining both automation and intelligence that serves the entire continuum of care. This transformation is meant to allow us to serve our health system customers by providing high visibility of medications and medical supplies in every location and giving them accurate, actionable insights intended to enhance operational and clinical outcomes. Now let's review the second quarter 2025 financial results. Total revenue was $291 million, representing an increase of $14 million or 5% over the second quarter of 2024 and an increase of $21.8 million compared to the previous quarter. Our second quarter 2025 earnings per share in accordance with GAAP were $0.12 per share compared to $0.08 per share in the second quarter of 2024 and a loss of $0.15 per share in the prior quarter. We believe that we are building customer awareness around our roadmap, which includes both automation with robotics and smart devices and intelligence with software and analytics, and this appears to be resonating with the market. We believe we are increasingly viewed by our customers as a way for them to maximize their capital and strategic investment dollars. As I noted, we are pleased to see that customer demand is tracking to our initial expectations at the start of the year, despite the uncertainty customers are facing, whether from legislative or economic environments. We expect our future growth to continue to be driven by three core levers. First, expanding our market presence. We are focused on capturing greater market share across both in-patient and out-patient settings. This includes nursing units, operating rooms, and pharmacies of all types, from central pharmacies to specialty pharmacies. Our recent customer wins and continued platform adoption reflect what we think is the strength of our solutions and the trust we believe we are building across the healthcare continuum. Second, scaling reoccurring revenue. We are taking actions to grow and scale our predictable recurring revenue base. This includes service contracts, software subscriptions, and cloud-based offerings that are expected to provide long-term value to our customers and greater visibility in our own business. We are pleased to note that we are growing and scaling our predictable recurring revenue base, both from growth in market share and price levers. And third, accelerating our technology platform, Omnisphere. A key pillar of our transformation is Omnisphere. Our cloud-native platform designed to be the connected backbone for all Omnisale products. Omnisphere is intended to enable enterprise-wide visibility into medications and medical supplies inventory and provide a single point of access for all cloud-connected automation and intelligence. This quarter, we were proud to announce that Omnisphere received High Trust CSF I-1 certification, an important milestone that affirms our commitment to cyber security and operational excellence. We believe we are the only men management company to achieve this milestone, and importantly, at a time when many customers are looking for solutions that achieve the highest data protection standards. In the second quarter, we unveiled our innovation lab in Austin, Texas. This facility is dedicated to solving customer-identified pain points through rapid prototyping and testing. We also hosted at our lab, Illuminate 2025, our fifth annual customer-focused event that aims to shine a light on customers' most pressing medication management challenges and Omnisale's innovative solutions that are helping to drive enhance clinical and operational outcomes. As more patient care shifts toward an outpatient model, we believe there is growing need for better medication management at the clinic level. To support health systems in managing growing inventory locations in outpatient settings, we launched MedVision, a software solution that is built to offer the ability to manage real-time medication inventory workflows in clinics. The product is designed to provide visibility through dynamic dashboards, insights into stock-outs, stock values, usage, and high interoperability through automated reordering and replenishing at the clinic level. We are pleased the market reception thus far. Also, to continue our path to increase visibility within the hospital to continue to lead the industry with innovation, we launched a new RFID product line, MedTrac. We are starting in the operating room with the first offering named MedTrac OR. The RFID enabled drawer is designed to work in conjunction with an Omnisale anesthesia workstation to allow non-controlled medication to be automatically tracked via RFID and allow providers to adopt -and-go dispensing and returning approach within the operating room and procedural area environments. These exciting new products continue to add to our strategy that seeks to create visibility and provide actionable insights throughout the health system and reach the outcomes laid out in the autonomous pharmacy framework. These innovative products also reflect our commitment to seeking to help healthcare providers improve outcomes, reduce costs, and alleviate staff burnout. I'm confident in our long-term strategy and our ability to lead the next era of medication management. We are building the infrastructure, the talent, and the technology that should support our customers as they navigate a rapidly evolving healthcare landscape. Now let's turn to some of the customer win highlights for the second quarter. We continue to be pleased with the strong customer demand for our XDA Amplify offering, particularly XT Extend, which again helped drive our strong top-line performance in the second quarter of 2025. XT Extend was part of several larger portfolio deals this quarter, including a significant win at a large Northeast health organization with seven locations across New Jersey, along with other wins at healthcare entities in Nebraska, Northern Pennsylvania, and Southern and Central New York, and government healthcare facilities. In June 2025, we held our inaugural IV Trust Summit, which brought together industry leaders, patient safety advocates, and policy advisors to explore opportunities for improving patient safety of intravenous medication compounding through automation and intelligence. Our IV automation solutions continue to gain traction in the market with the leading Southern California health system, selecting OmniCell to provide IV automation solutions that are intended to support safety and accuracy for their sterile compounding operations. Our central pharmacy footprint continues to grow with a large -for-profit academic medical system in Illinois and a Mississippi-based Catholic Health System, selecting our central pharmacy dispensing service in its efforts to enhance safety and efficiency in central pharmacy inventory management and dispensing. Finally, a leading acute care regional hospital in northern Georgia has selected OmniCell's specialty pharmacy services to launch a specialty pharmacy designed to extend its advanced inpatient and outpatient services as it seeks to deliver comprehensive community-focused care. In summary, while we are mindful of macroeconomic uncertainty and are working to navigate a dynamic cost structure environment relative to tariffs, we are pleased with the pace of innovation OmniCell is delivering across the entire continuum of care and are excited about the opportunities ahead. We believe our focus on innovation and providing ROI solutions will resonate with our customers during these uncertain times. Now with that update, I'd like to turn over the call to Cha-Cha. Thank you,