FORT WORTH, Texas–(BUSINESS WIRE)–Omnicell, Inc. (NASDAQ:OMCL), a leader in transforming the pharmacy care delivery model, today announced results for its third quarter ended September 30, 2024.
Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell, said, “We are pleased to deliver another consecutive quarter of solid financial performance, with results within or exceeding each of our previously issued guidance ranges. As the macroeconomic environment within the healthcare sector continues to show signs of stabilization, we believe our outcomes-centric innovation and customer-first focus is resonating with the market.”
Mr. Lipps continued, “We are also excited to welcome Nnamdi Njoku to the Omnicell leadership team as Executive Vice President and Chief Operating Officer. Nnamdi brings a depth of operational experience and a purpose-driven leadership ethos that we believe will be instrumental for Omnicell as we continue to scale our business.”
Financial Results
Total revenues for the third quarter of 2024 were $282 million, down $16 million, or 5%, from the third quarter of 2023. The year-over-year decrease in total revenues reflects the impact of a continued challenging environment for some of our health system customers and the timing of our XT Series automated dispensing systems lifecycle, as we are largely through the replacement cycle.
Total GAAP net income for the third quarter of 2024 was $9 million, or $0.19 per diluted share. This compares to GAAP net income of $6 million, or $0.12 per diluted share, for the third quarter of 2023.
Total non-GAAP net income for the third quarter of 2024 was $26 million, or $0.56 per diluted share. This compares to non-GAAP net income of $28 million, or $0.62 per diluted share, for the third quarter of 2023.
Total non-GAAP EBITDA for the third quarter of 2024 was $39 million. This compares to non-GAAP EBITDA of $41 million for the third quarter of 2023.
Balance Sheet
As of September 30, 2024, Omnicell’s balance sheet reflected cash and cash equivalents of $571 million, total debt (net of unamortized debt issuance costs) of $572 million, and total assets of $2.3 billion. Cash flows provided by operating activities in the third quarter of 2024 totaled $23 million. This compares to cash flows provided by operating activities totaling $57 million in the third quarter of 2023.
As of September 30, 2024, the Company had $350 million of availability under its revolving credit facility with no outstanding balance.
Corporate Highlights
- The Company appointed Nnamdi Njoku as Executive Vice President and Chief Operating Officer. In this newly created role, Mr. Njoku – a seasoned business executive with approximately 25 years of experience with several global healthcare and medical technology organizations – will lead Omnicell’s global operations.
- The Company announced Central Med Automation Service, a comprehensive offering designed to streamline medication dispensing from a central fulfillment area throughout the entire health system enterprise, which is expected to enhance inventory visibility, scalability, and patient safety. Integrating enterprise-wide robotics, smart devices, and intelligent software with expert services in an effort to help health systems optimize central fill pharmacy operations, Central Med Automation Service is expected to help health systems develop and execute a central fill strategy while providing the expert support necessary to help ensure this environment meets current and future medication management needs.
- The Company’s EnlivenHealth® brand continues to deliver innovative solutions designed to optimize population health, deliver exceptional patient care, and cultivate sustainable growth. One of the largest long-term care pharmacy companies in the United States implemented EnlivenHealth’s Medicare Match solution in order to provide cost estimates for patient out-of-pocket expenses; this is expected to reduce the staffing needed to provide accurate service and should give patients and caregivers more autonomy over their data.
- Omnicell’s IVX Station has been awarded Gold for Technical Innovation of the Year for Healthcare Technology by the 2024 Stevie® Awards for Technology Excellence. As sterile compounding demands grow, we believe the importance of automating sterile compounding processes in an effort to enhance accuracy, support compliance, and improve workflow efficiency is more critical than ever. This award recognizes Omnicell’s innovative approach in working to help our healthcare partners address these challenges.
2024 Guidance
Based on strong performance during the first three quarters of 2024 and current visibility of the business, the Company is updating the previously provided 2024 annual guidance ranges. For the full year 2024, the Company expects bookings to be between $800 million and $875 million. The Company expects full year 2024 total revenues to be between $1.100 billion and $1.110 billion. The Company expects full year 2024 product revenues to be between $625 million and $630 million, and full year 2024 service revenues to be between $475 million and $480 million. The Company expects full year 2024 technical services revenues to be between $236 million and $238 million, and full year 2024 Advanced Services revenues to be between $239 million and $242 million. The Company expects full year 2024 non-GAAP EBITDA to be between $129 million and $134 million. The Company expects full year 2024 non-GAAP earnings per share to be between $1.65 and $1.72 per share.
For the fourth quarter of 2024, the Company expects total revenues to be between $295 million and $305 million. The Company expects fourth quarter 2024 product revenues to be between $177 million and $182 million, and fourth quarter 2024 service revenues to be between $118 million and $123 million. The Company expects fourth quarter 2024 non-GAAP EBITDA to be between $40 million and $45 million. The Company expects fourth quarter 2024 non-GAAP earnings per share to be between $0.55 and $0.62 per share.
The table below summarizes Omnicell’s fourth quarter and full year 2024 guidance outlined above.
|
|
Q4’24 |
|
2024 |
|
|
Bookings |
Not provided |
|
$800 million – $875 million |
|
|
Total Revenues |
$295 million – $305 million |
|
$1.100 billion – $1.110 billion |
|
|
Product Revenues |
$177 million – $182 million |
|
$625 million – $630 million |
|
|
Service Revenues |
$118 million – $123 million |
|
$475 million – $480 million |
|
|
Technical Services Revenues |
Not provided |
|
$236 million – $238 million |
|
|
Advanced Services Revenues |
Not provided |
|
$239 million – $242 million |
|
|
Non-GAAP EBITDA |
$40 million – $45 million |
|
$129 million – $134 million |
|
|
Non-GAAP Earnings Per Share |
$0.55 – $0.62 |
|
$1.65 – $1.72 |
The Company does not provide guidance for GAAP net income or GAAP earnings per share, nor a reconciliation of any forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis, because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These forward-looking non-GAAP financial measures do not include certain items, which may be significant, including, but not limited to, unusual gains and losses, costs associated with future restructurings, acquisition-related expenses, and certain tax and litigation outcomes.
About Omnicell
Since 1992, Omnicell has been committed to transforming pharmacy care through outcomes-centric innovation designed to optimize clinical and business outcomes across all settings of care. Through a comprehensive portfolio of robotics, smart devices, intelligent software, and expert services, Omnicell solutions are helping healthcare facilities worldwide to reduce costs, improve labor efficiency, establish new revenue streams, enhance supply chain control, support compliance, and move closer to the industry vision of the Autonomous Pharmacy. To learn more, visit omnicell.com.
