Omnicell Announces Third Quarter 2024 Results
Total revenues of
GAAP net income per diluted share of
Non-GAAP net income per diluted share of
Raises 2024 non-GAAP EBITDA and non-GAAP earnings per share guidance
Financial Results
Total revenues for the third quarter of 2024 were
Total GAAP net income for the third quarter of 2024 was
Total non-GAAP net income for the third quarter of 2024 was
Total non-GAAP EBITDA for the third quarter of 2024 was
Balance Sheet
As of
As of
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
For the fourth quarter of 2024, the Company expects total revenues to be between
The table below summarizes Omnicell’s fourth quarter and full year 2024 guidance outlined above.
|
|
Q4’24 |
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2024 |
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Bookings |
Not provided |
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Total Revenues |
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|
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Product Revenues |
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|
|
|
|
Service Revenues |
|
|
|
|
|
Technical Services Revenues |
Not provided |
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|
|
|
Advanced Services Revenues |
Not provided |
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|
|
Non-GAAP EBITDA |
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Non-GAAP Earnings Per Share |
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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.
Omnicell Conference Call Information
About
Since 1992,
From time to time,
Forward-Looking Statements
To the extent any statements contained in this press release deal with information that is not historical, these statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Without limiting the foregoing, statements including the words “expect,” “intend,” “may,” “will,” “should,” “would,” “could,” “plan,” “potential,” “anticipate,” “believe,” “forecast,” “guidance,” “outlook,” “goals,” “target,” “estimate,” “seek,” “predict,” “project,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to the occurrence of many events outside Omnicell’s control. Such statements include, but are not limited to, Omnicell’s projected bookings, revenues, including product, service, technical services and Advanced Services revenues, non-GAAP EBITDA, and non-GAAP earnings per share; expectations regarding our products and services and developing new or enhancing existing products and solutions and the related objectives and expected benefits (and any implied financial impact); expectations regarding the new chief operating officer appointment; our ability to scale our business; and statements about Omnicell’s strategy, plans, objectives, promise and purpose, goals, opportunities, and market or Company outlook. Actual results and other events may differ significantly from those contemplated by forward-looking statements due to numerous factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things, (i) unfavorable general economic and market conditions, including the impact and duration of inflationary pressures, (ii) Omnicell’s ability to take advantage of growth opportunities and develop and commercialize new solutions and enhance existing solutions, (iii) reduction in demand in the capital equipment market or reduction in the demand for or adoption of our solutions, systems, or services, (iv) delays in installations of our medication management solutions or our more complex medication packaging systems, (v) risks related to Omnicell’s investments in new business strategies or initiatives, including its transition to selling more products and services on a subscription basis, and its ability to acquire companies, businesses, or technologies and successfully integrate such acquisitions, (vi) ability to realize the benefits of our expense containment initiatives, (vii) risks related to failing to maintain expected service levels when providing our Advanced Services or retaining our Advanced Services customers, (viii) Omnicell’s ability to meet the demands of, or maintain relationships with, its institutional, retail, and specialty pharmacy customers, (ix) risks related to climate change, legal, regulatory or market measures to address climate change and related emphasis on ESG matters by various stakeholders, (x) changes to the 340B Program, (xi) Omnicell’s substantial debt, which could impair its financial flexibility and access to capital, (xii) covenants in our credit agreement could restrict our business and operations, (xiii) continued and increased competition from current and future competitors in the medication management automation solutions market and the medication adherence solutions market, (xiv) risks presented by government regulations, legislative changes, fraud and anti-kickback statues, products liability claims, the outcome of legal proceedings, and other legal obligations related to healthcare, privacy, data protection, and information security, including any potential governmental investigations and enforcement actions, litigation, fines and penalties, exposure to indemnification obligations or other liabilities, and adverse publicity as a result of the previously disclosed ransomware incident, (xv) any disruption in Omnicell’s information technology systems and breaches of data security or cyber-attacks on its systems or solutions, including the previously disclosed ransomware incident and any potential adverse legal, reputational, and financial effects that may result from it and/or additional cybersecurity incidents, as well as the effectiveness of business continuity plans during any future cybersecurity incidents, (xvi) risks associated with operating in foreign countries, (xvii) Omnicell’s ability to recruit and retain skilled and motivated personnel, (xviii) Omnicell’s ability to protect its intellectual property, (xix) risks related to the availability and sources of raw materials and components or price fluctuations, shortages, or interruptions of supply, (xx) Omnicell’s dependence on a limited number of suppliers for certain components, equipment, and raw materials, as well as technologies provided by third-party vendors, (xxi) fluctuations in quarterly and annual operating results may make our future operating results difficult to predict, (xxii) failing to meet (or significantly exceeding) our publicly announced financial guidance, and (xxiii) other risks and uncertainties further described in the “Risk Factors” section of Omnicell’s most recent Annual Report on Form 10-K, as well as in Omnicell’s other reports filed with or furnished to the
Use of Non-GAAP Financial Information
This press release contains financial measures that are not calculated in accordance with
Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP EBITDA, and non-GAAP EBITDA margin are exclusive of certain items to facilitate management’s review of the comparability of Omnicell’s core operating results on a period-to-period basis because such items are not related to Omnicell’s ongoing core operating results as viewed by management. We define our “core operating results” as those revenues recorded in a particular period and the expenses incurred within such period that directly drive operating income in such period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we believe we should invest in research and development, fund infrastructure growth, and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results: non-GAAP gross profit and non-GAAP gross margin exclude from their GAAP equivalents items a), b), e), and g) below; non-GAAP operating expenses excludes from its GAAP equivalents items a), b), c), d), e), g), h) and i) below; non-GAAP income from operations and non-GAAP operating margin exclude from their GAAP equivalents items a), b), c), d), e), g), h) and i) below; and non-GAAP net income and non-GAAP net income per diluted share exclude from their GAAP equivalents items a) through i) below. Non-GAAP EBITDA is defined as earnings before interest income and expense, taxes, depreciation, amortization, and share-based compensation, as well as excluding certain other non-GAAP adjustments. Non-GAAP EBITDA and non-GAAP EBITDA margin exclude from their GAAP equivalents items a), c), d), e), f), g), h) and i) below:
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a) |
Share-based compensation expense. We excluded from our non-GAAP results the expense related to equity-based compensation plans as it represents expenses that do not require cash settlement from |
|
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b) |
Amortization of acquired intangible assets. We excluded from our non-GAAP results the intangible assets amortization expense resulting from our past acquisitions. These non-cash charges are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results. |
|
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c) |
Acquisition-related expenses. We excluded from our non-GAAP results the expenses related to recent acquisitions, including amortization of representations and warranties insurance. These expenses are unrelated to our ongoing operations, vary in size and frequency, and are subject to significant fluctuations from period to period due to varying levels of acquisition activity. We believe that excluding these expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance, and to the financial results of peer companies. |
|
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d) |
Impairment and abandonment of operating lease right-of-use and other assets related to facilities. We excluded from our non-GAAP results the impairment and abandonment of certain operating lease right-of-use assets, as well as property and equipment, incurred in connection with restructuring activities for optimization of certain leased facilities. These non-cash charges are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results. |
|
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e) |
Severance-related expenses. We excluded from our non-GAAP results the expenses related to restructuring events, partially offset by reversals of previously recognized severance expenses in subsequent periods. These expenses are unrelated to our ongoing operations, vary in size and frequency, and are subject to significant fluctuations from period to period due to varying levels of restructuring activity. We believe that excluding these expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance, and to the financial results of peer companies. |
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f) |
Amortization of debt issuance costs. Debt issuance costs represent costs associated with the issuance of revolving credit facilities and convertible senior notes. The costs include underwriting fees, original issue discount, ticking fees, and legal fees. These non-cash expenses are not considered by management to reflect the core cash-generating performance of the business and therefore are excluded from our non-GAAP results. |
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|
g) |
RDS restructuring. We excluded from our non-GAAP results the nonrecurring restructuring charges related to the wind down of the Company’s Medimat Robotic Dispensing System (“RDS”) product line, partially offset by reversals of previously recognized expenses in subsequent periods. For the period ended |
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h) |
Executives transition costs. We excluded from our non-GAAP results the executives transition costs associated with the departure of certain executive officers, primarily consisting of severance expenses. These expenses are unrelated to our ongoing operations and we do not expect them to occur in the ordinary course of business. We believe that excluding these expenses provides more meaningful comparisons of the financial results to our historical operations and forward-looking guidance, and to the financial results of peer companies. |
|
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i) |
Ransomware-related insurance recoveries. We excluded from our non-GAAP results the insurance recoveries related to the previously disclosed ransomware incident identified by the Company on |
Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Omnicell’s control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational or non-cash expenses involving stock compensation plans or other items.
We believe that the presentation of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP EBITDA, and non-GAAP EBITDA margin is warranted for several reasons:
|
a) |
Such non-GAAP financial measures provide an additional analytical tool for understanding Omnicell’s financial performance by excluding the impact of items which may obscure trends in the core operating results of the business. |
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b) |
Since we have historically reported non-GAAP results to the investment community, we believe the inclusion of non-GAAP numbers provides consistency and enhances investors’ ability to compare our performance across financial reporting periods. |
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c) |
These non-GAAP financial measures are employed by management in its own evaluation of performance and are utilized in financial and operational decision-making processes, such as budget planning and forecasting. |
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d) |
These non-GAAP financial measures facilitate comparisons to the operating results of other companies in our industry, which also use non-GAAP financial measures to supplement their GAAP results (although these companies may calculate non-GAAP financial measures differently than |
Set forth below are additional reasons why share-based compensation expense is excluded from our non-GAAP financial measures:
|
i) |
While share-based compensation calculated in accordance with Accounting Standards Codification (“ASC”) 718 constitutes an ongoing and recurring expense of |
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ii) |
We present ASC 718 share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation under ASC 718 are dependent upon the trading price of Omnicell’s common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties, the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results. |
Non-GAAP diluted shares is defined as our GAAP diluted shares, excluding the impact of dilutive convertible senior notes for which the Company is economically hedged through its anti-dilutive convertible note hedge transaction. We believe non-GAAP diluted shares is a useful non-GAAP metric because it provides insight into the offsetting economic effect of the hedge transaction against potential conversion of the convertible senior notes.
Non-GAAP free cash flow is defined as net cash provided by operating activities less cash used for software development for external use and purchases of property and equipment. We believe free cash flow is important to enable investors to better understand and evaluate our ongoing operating results and allows for greater transparency in the review and understanding of our overall financial, operational, and economic performance, because free cash flow takes into account certain capital expenditures and cash used for software development necessary to operate our business.
As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for Omnicell’s GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:
|
a) |
Omnicell’s equity incentive plans and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in Omnicell’s GAAP results for the foreseeable future under ASC 718. |
|
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b) |
Other companies, including companies in Omnicell’s industry, may calculate non-GAAP financial measures differently than |
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c) |
A limitation of the utility of free cash flow as a measure of financial performance is that it does not represent the total increase or decrease in Omnicell’s cash balance for the period. |
A detailed reconciliation between Omnicell’s non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release as well as in Omnicell’s other reports filed with or furnished to the
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Condensed Consolidated Statements of Operations |
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(Unaudited, in thousands, except per share data) |
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Three Months Ended
|
|
Nine Months Ended
|
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2024 |
|
2023 |
|
2024 |
|
2023 |
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Revenues: |
|
|
|
|
||||||||||||
|
Product revenues |
$ |
158,361 |
|
$ |
188,755 |
|
$ |
448,236 |
|
$ |
562,906 |
|
||||
|
Service revenues |
|
124,059 |
|
|
109,908 |
|
|
357,123 |
|
|
325,359 |
|
||||
|
Total revenues |
|
282,420 |
|
|
298,663 |
|
|
805,359 |
|
|
888,265 |
|
||||
|
Cost of revenues: |
|
|
|
|
||||||||||||
|
Cost of product revenues |
|
94,448 |
|
|
106,311 |
|
|
286,270 |
|
|
323,800 |
|
||||
|
Cost of service revenues |
|
65,704 |
|
|
60,388 |
|
|
189,847 |
|
|
173,029 |
|
||||
|
Total cost of revenues |
|
160,152 |
|
|
166,699 |
|
|
476,117 |
|
|
496,829 |
|
||||
|
Gross profit |
|
122,268 |
|
|
131,964 |
|
|
329,242 |
|
|
391,436 |
|
||||
|
Operating expenses: |
|
|
|
|
||||||||||||
|
Research and development |
|
21,214 |
|
|
24,281 |
|
|
64,372 |
|
|
70,296 |
|
||||
|
Selling, general, and administrative |
|
94,490 |
|
|
103,971 |
|
|
276,929 |
|
|
332,643 |
|
||||
|
Total operating expenses |
|
115,704 |
|
|
128,252 |
|
|
341,301 |
|
|
402,939 |
|
||||
|
Income (loss) from operations |
|
6,564 |
|
|
3,712 |
|
|
(12,059 |
) |
|
(11,503 |
) |
||||
|
Interest and other income (expense), net |
|
5,063 |
|
|
3,670 |
|
|
14,052 |
|
|
9,912 |
|
||||
|
Income (loss) before income taxes |
|
11,627 |
|
|
7,382 |
|
|
1,993 |
|
|
(1,591 |
) |
||||
|
Provision for income taxes |
|
2,997 |
|
|
1,829 |
|
|
5,304 |
|
|
4,405 |
|
||||
|
Net income (loss) |
$ |
8,630 |
|
$ |
5,553 |
|
$ |
(3,311 |
) |
$ |
(5,996 |
) |
||||
|
Net income (loss) per share: |
|
|
|
|
||||||||||||
|
Basic |
$ |
0.19 |
|
$ |
0.12 |
|
$ |
(0.07 |
) |
$ |
(0.13 |
) |
||||
|
Diluted |
$ |
0.19 |
|
$ |
0.12 |
|
$ |
(0.07 |
) |
$ |
(0.13 |
) |
||||
|
Weighted-average shares outstanding: |
|
|
|
|
||||||||||||
|
Basic |
|
46,153 |
|
|
45,333 |
|
|
45,947 |
|
|
45,117 |
|
||||
|
Diluted |
|
46,427 |
|
|
45,595 |
|
|
45,947 |
|
|
45,117 |
|
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|
|
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Condensed Consolidated Balance Sheets |
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|
(Unaudited, in thousands) |
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ASSETS |
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Current assets: |
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|
|
|||||
|
Cash and cash equivalents |
$ |
570,628 |
|
|
$ |
467,972 |
|
|
|
Accounts receivable and unbilled receivables, net |
|
251,764 |
|
|
|
252,025 |
|
|
|
Inventories |
|
95,059 |
|
|
|
110,099 |
|
|
|
Prepaid expenses |
|
28,884 |
|
|
|
25,966 |
|
|
|
Other current assets |
|
64,927 |
|
|
|
71,509 |
|
|
|
Total current assets |
|
1,011,262 |
|
|
|
927,571 |
|
|
|
Property and equipment, net |
|
111,744 |
|
|
|
108,601 |
|
|
|
Long-term investment in sales-type leases, net |
|
50,575 |
|
|
|
42,954 |
|
|
|
Operating lease right-of-use assets |
|
25,312 |
|
|
|
24,988 |
|
|
|
|
|
737,169 |
|
|
|
735,810 |
|
|
|
Intangible assets, net |
|
193,969 |
|
|
|
211,173 |
|
|
|
Long-term deferred tax assets |
|
42,093 |
|
|
|
32,901 |
|
|
|
Prepaid commissions |
|
49,730 |
|
|
|
52,414 |
|
|
|
Other long-term assets |
|
81,734 |
|
|
|
90,466 |
|
|
|
Total assets |
$ |
2,303,588 |
|
|
$ |
2,226,878 |
|
|
|
|
|
|
|
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|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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|
Current liabilities: |
|
|
|
|||||
|
Accounts payable |
$ |
47,810 |
|
|
$ |
45,028 |
|
|
|
Accrued compensation |
|
45,090 |
|
|
|
51,754 |
|
|
|
Accrued liabilities |
|
144,253 |
|
|
|
149,276 |
|
|
|
Deferred revenues |
|
152,367 |
|
|
|
121,734 |
|
|
|
Convertible senior notes, net |
|
571,997 |
|
|
|
— |
|
|
|
Total current liabilities |
|
961,517 |
|
|
|
367,792 |
|
|
|
Long-term deferred revenues |
|
69,811 |
|
|
|
58,622 |
|
|
|
Long-term deferred tax liabilities |
|
1,411 |
|
|
|
1,620 |
|
|
|
Long-term operating lease liabilities |
|
31,524 |
|
|
|
33,910 |
|
|
|
Other long-term liabilities |
|
7,997 |
|
|
|
6,318 |
|
|
|
Convertible senior notes, net |
|
— |
|
|
|
569,662 |
|
|
|
Total liabilities |
|
1,072,260 |
|
|
|
1,037,924 |
|
|
|
Total stockholders’ equity |
|
1,231,328 |
|
|
|
1,188,954 |
|
|
|
Total liabilities and stockholders’ equity |
$ |
2,303,588 |
|
|
$ |
2,226,878 |
|
|
|
|
||||||||
|
Condensed Consolidated Statements of Cash Flows |
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|
(Unaudited, in thousands) |
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|
|
|
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|
|
|
Nine Months Ended
|
||||||
|
|
|
2024 |
|
2023 |
||||
|
|
|
|
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|
Operating Activities |
|
|
||||||
|
Net loss |
$ |
(3,311 |
) |
$ |
(5,996 |
) |
||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
|
Depreciation and amortization |
|
62,266 |
|
|
65,596 |
|
||
|
Loss on disposal of assets |
|
412 |
|
|
2,110 |
|
||
|
Share-based compensation expense |
|
30,277 |
|
|
43,113 |
|
||
|
Deferred income taxes |
|
(9,401 |
) |
|
(14,165 |
) |
||
|
Amortization of operating lease right-of-use assets |
|
5,279 |
|
|
6,238 |
|
||
|
Impairment and abandonment of operating lease right-of-use assets related to facilities |
|
— |
|
|
7,815 |
|
||
|
Inventory write-down |
|
5,393 |
|
|
— |
|
||
|
Amortization of debt issuance costs |
|
2,917 |
|
|
3,139 |
|
||
|
Changes in operating assets and liabilities: |
|
|
||||||
|
Accounts receivable and unbilled receivables |
|
1,174 |
|
|
27,050 |
|
||
|
Inventories |
|
10,038 |
|
|
31,690 |
|
||
|
Prepaid expenses |
|
(2,918 |
) |
|
(857 |
) |
||
|
Other current assets |
|
8,354 |
|
|
1,521 |
|
||
|
Investment in sales-type leases |
|
(7,453 |
) |
|
(8,839 |
) |
||
|
Prepaid commissions |
|
2,684 |
|
|
5,533 |
|
||
|
Other long-term assets |
|
1,048 |
|
|
2,539 |
|
||
|
Accounts payable |
|
2,945 |
|
|
(13,358 |
) |
||
|
Accrued compensation |
|
(6,664 |
) |
|
(29,390 |
) |
||
|
Accrued liabilities |
|
6,963 |
|
|
3,749 |
|
||
|
Deferred revenues |
|
27,746 |
|
|
23,628 |
|
||
|
Operating lease liabilities |
|
(8,021 |
) |
|
(8,145 |
) |
||
|
Other long-term liabilities |
|
1,679 |
|
|
(291 |
) |
||
|
Net cash provided by operating activities |
|
131,407 |
|
|
142,680 |
|
||
|
Investing Activities |
|
|
||||||
|
External-use software development costs |
|
(11,849 |
) |
|
(10,240 |
) |
||
|
Purchases of property and equipment |
|
(27,376 |
) |
|
(32,404 |
) |
||
|
Net cash used in investing activities |
|
(39,225 |
) |
|
(42,644 |
) |
||
|
Financing Activities |
|
|
||||||
|
Proceeds from issuances under stock-based compensation plans |
|
13,140 |
|
|
23,035 |
|
||
|
Employees’ taxes paid related to restricted stock units |
|
(3,544 |
) |
|
(6,130 |
) |
||
|
Change in customer funds, net |
|
(10,744 |
) |
|
(6,615 |
) |
||
|
Net cash provided by (used in) financing activities |
|
(1,148 |
) |
|
10,290 |
|
||
|
Effect of exchange rate changes on cash and cash equivalents |
|
879 |
|
|
(464 |
) |
||
|
Net increase in cash, cash equivalents, and restricted cash |
|
91,913 |
|
|
109,862 |
|
||
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
500,979 |
|
|
352,835 |
|
||
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
592,892 |
|
$ |
462,697 |
|
||
|
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheets: |
||||||||
|
Cash and cash equivalents |
$ |
570,628 |
|
$ |
446,840 |
|
||
|
Restricted cash included in other current assets |
|
22,264 |
|
|
15,857 |
|
||
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
592,892 |
|
$ |
462,697 |
|
||
|
|
||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||
|
(Unaudited, in thousands, except per share data and percentage) |
||||||||||||||||
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Reconciliation of GAAP gross profit to non-GAAP gross profit: |
|
|
|
|||||||||||||
|
GAAP gross profit |
$ |
122,268 |
|
$ |
131,964 |
|
$ |
329,242 |
|
$ |
391,436 |
|
||||
|
GAAP gross margin |
|
43.3 |
% |
|
44.2 |
% |
|
40.9 |
% |
|
44.1 |
% |
||||
|
Share-based compensation expense |
|
1,709 |
|
|
2,213 |
|
|
4,884 |
|
|
6,489 |
|
||||
|
Amortization of acquired intangibles |
|
1,024 |
|
|
2,633 |
|
|
3,114 |
|
|
8,558 |
|
||||
|
RDS restructuring, net of reversals |
|
642 |
|
|
— |
|
|
8,686 |
|
|
— |
|
||||
|
Severance-related expenses, net of reversals |
|
— |
|
|
(280 |
) |
|
— |
|
|
102 |
|
||||
|
Non-GAAP gross profit |
$ |
125,643 |
|
$ |
136,530 |
|
$ |
345,926 |
|
$ |
406,585 |
|
||||
|
Non-GAAP gross margin |
|
44.5 |
% |
|
45.7 |
% |
|
43.0 |
% |
|
45.8 |
% |
||||
|
|
|
|
|
|
||||||||||||
|
Reconciliation of GAAP operating expenses to non-GAAP operating expenses: |
|
|
||||||||||||||
|
GAAP operating expenses |
$ |
115,704 |
|
$ |
128,252 |
|
$ |
341,301 |
|
$ |
402,939 |
|
||||
|
GAAP operating expenses % to total revenues |
|
41.0 |
% |
|
42.9 |
% |
|
42.4 |
% |
|
45.4 |
% |
||||
|
Share-based compensation expense |
|
(9,896 |
) |
|
(12,769 |
) |
|
(25,393 |
) |
|
(36,624 |
) |
||||
|
Amortization of acquired intangibles |
|
(4,556 |
) |
|
(5,050 |
) |
|
(14,098 |
) |
|
(15,402 |
) |
||||
|
Acquisition-related expenses |
|
(224 |
) |
|
(246 |
) |
|
(716 |
) |
|
(738 |
) |
||||
|
Impairment and abandonment of operating lease right-of-use and other assets related to facilities |
|
— |
|
|
— |
|
|
— |
|
|
(8,420 |
) |
||||
|
RDS restructuring, net of reversals |
|
34 |
|
|
— |
|
|
(833 |
) |
|
— |
|
||||
|
Ransomware-related insurance recoveries |
|
— |
|
|
184 |
|
|
— |
|
|
184 |
|
||||
|
Executives transition costs |
|
— |
|
|
(1,348 |
) |
|
— |
|
|
(2,189 |
) |
||||
|
Severance-related expenses, net of reversals |
|
— |
|
|
301 |
|
|
— |
|
|
(5,352 |
) |
||||
|
Non-GAAP operating expenses |
$ |
101,062 |
|
$ |
109,324 |
|
$ |
300,261 |
|
$ |
334,398 |
|
||||
|
Non-GAAP operating expenses as a % of total revenues |
|
35.8 |
% |
|
36.6 |
% |
|
37.3 |
% |
|
37.6 |
% |
||||
|
|
|
|
|
|
||||||||||||
|
Reconciliation of GAAP income (loss) from operations to non-GAAP income from operations: |
||||||||||||||||
|
GAAP income (loss) from operations |
$ |
6,564 |
|
$ |
3,712 |
|
$ |
(12,059 |
) |
$ |
(11,503 |
) |
||||
|
GAAP operating income (loss) % to total revenues |
|
2.3 |
% |
|
1.2 |
% |
|
(1.5 |
)% |
|
(1.3 |
)% |
||||
|
Share-based compensation expense |
|
11,605 |
|
|
14,982 |
|
|
30,277 |
|
|
43,113 |
|
||||
|
Amortization of acquired intangibles |
|
5,580 |
|
|
7,683 |
|
|
17,212 |
|
|
23,960 |
|
||||
|
Acquisition-related expenses |
|
224 |
|
|
246 |
|
|
716 |
|
|
738 |
|
||||
|
Impairment and abandonment of operating lease right-of-use and other assets related to facilities |
|
— |
|
|
— |
|
|
— |
|
|
8,420 |
|
||||
|
RDS restructuring, net of reversals |
|
608 |
|
|
— |
|
|
9,519 |
|
|
— |
|
||||
|
Ransomware-related insurance recoveries |
|
— |
|
|
(184 |
) |
|
— |
|
|
(184 |
) |
||||
|
Executives transition costs |
|
— |
|
|
1,348 |
|
|
— |
|
|
2,189 |
|
||||
|
Severance-related expenses, net of reversals |
|
— |
|
|
(581 |
) |
|
— |
|
|
5,454 |
|
||||
|
Non-GAAP income from operations |
$ |
24,581 |
|
$ |
27,206 |
|
$ |
45,665 |
|
$ |
72,187 |
|
||||
|
Non-GAAP operating margin (non-GAAP operating income as a % of total revenues) |
|
8.7 |
% |
|
9.1 |
% |
|
5.7 |
% |
|
8.1 |
% |
||||
|
|
||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||
|
(Unaudited, in thousands, except per share data and percentage) |
||||||||||||||||
|
|
|
|
||||||||||||||
|
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
|
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Reconciliation of GAAP net income (loss) to non-GAAP net income: |
||||||||||||||||
|
GAAP net income (loss) |
$ |
8,630 |
|
$ |
5,553 |
|
$ |
(3,311 |
) |
$ |
(5,996 |
) |
||||
|
Share-based compensation expense |
|
11,605 |
|
|
14,982 |
|
|
30,277 |
|
|
43,113 |
|
||||
|
Amortization of acquired intangibles |
|
5,580 |
|
|
7,683 |
|
|
17,212 |
|
|
23,960 |
|
||||
|
Acquisition-related expenses |
|
224 |
|
|
246 |
|
|
716 |
|
|
738 |
|
||||
|
Impairment and abandonment of operating lease right-of-use and other assets related to facilities |
|
— |
|
|
— |
|
|
— |
|
|
8,420 |
|
||||
|
RDS restructuring, net of reversals |
|
608 |
|
|
— |
|
|
9,519 |
|
|
— |
|
||||
|
Ransomware-related insurance recoveries |
|
— |
|
|
(184 |
) |
|
— |
|
|
(184 |
) |
||||
|
Executives transition costs |
|
— |
|
|
1,348 |
|
|
— |
|
|
2,189 |
|
||||
|
Severance-related expenses, net of reversals |
|
— |
|
|
(581 |
) |
|
— |
|
|
5,454 |
|
||||
|
Amortization of debt issuance costs |
|
974 |
|
|
1,048 |
|
|
2,917 |
|
|
3,139 |
|
||||
|
Tax effect of the adjustments above (a) |
|
(1,551 |
) |
|
(2,008 |
) |
|
(6,376 |
) |
|
(9,181 |
) |
||||
|
Non-GAAP net income |
$ |
26,070 |
|
$ |
28,087 |
|
$ |
50,954 |
|
$ |
71,652 |
|
||||
|
|
|
|
|
|
||||||||||||
|
Reconciliation of GAAP net income (loss) per share - diluted to non-GAAP net income per share - diluted: |
||||||||||||||||
|
Shares - diluted GAAP |
|
46,427 |
|
|
45,595 |
|
|
45,947 |
|
|
45,117 |
|
||||
|
Shares - diluted non-GAAP |
|
46,427 |
|
|
45,595 |
|
|
46,079 |
|
|
45,410 |
|
||||
|
|
|
|
|
|
||||||||||||
|
GAAP net income (loss) per share - diluted |
$ |
0.19 |
|
$ |
0.12 |
|
$ |
(0.07 |
) |
$ |
(0.13 |
) |
||||
|
Share-based compensation expense |
|
0.25 |
|
|
0.33 |
|
|
0.66 |
|
|
0.95 |
|
||||
|
Amortization of acquired intangibles |
|
0.12 |
|
|
0.16 |
|
|
0.37 |
|
|
0.52 |
|
||||
|
Acquisition-related expenses |
|
0.00 |
|
|
0.01 |
|
|
0.02 |
|
|
0.02 |
|
||||
|
Impairment and abandonment of operating lease right-of-use and other assets related to facilities |
|
— |
|
|
— |
|
|
— |
|
|
0.18 |
|
||||
|
RDS restructuring, net of reversals |
|
0.01 |
|
|
— |
|
|
0.21 |
|
|
— |
|
||||
|
Ransomware-related insurance recoveries |
|
— |
|
|
(0.00 |
) |
|
— |
|
|
(0.00 |
) |
||||
|
Executives transition costs |
|
— |
|
|
0.03 |
|
|
— |
|
|
0.05 |
|
||||
|
Severance-related expenses, net of reversals |
|
— |
|
|
(0.01 |
) |
|
— |
|
|
0.12 |
|
||||
|
Amortization of debt issuance costs |
|
0.02 |
|
|
0.02 |
|
|
0.06 |
|
|
0.07 |
|
||||
|
Tax effect of the adjustments above (a) |
|
(0.03 |
) |
|
(0.04 |
) |
|
(0.14 |
) |
|
(0.20 |
) |
||||
|
Non-GAAP net income per share - diluted |
$ |
0.56 |
|
$ |
0.62 |
|
$ |
1.11 |
|
$ |
1.58 |
|
||||
|
|
|
|
|
|
||||||||||||
|
Reconciliation of GAAP net income (loss) to non-GAAP EBITDA (b): |
||||||||||||||||
|
GAAP net income (loss) |
$ |
8,630 |
|
$ |
5,553 |
|
$ |
(3,311 |
) |
$ |
(5,996 |
) |
||||
|
Share-based compensation expense |
|
11,605 |
|
|
14,982 |
|
|
30,277 |
|
|
43,113 |
|
||||
|
Interest (income) and expense, net |
|
(6,549 |
) |
|
(5,247 |
) |
|
(18,337 |
) |
|
(12,731 |
) |
||||
|
Depreciation and amortization expense |
|
20,176 |
|
|
21,542 |
|
|
62,266 |
|
|
65,596 |
|
||||
|
Acquisition-related expenses |
|
224 |
|
|
246 |
|
|
716 |
|
|
738 |
|
||||
|
Impairment and abandonment of operating lease right-of-use and other assets related to facilities |
|
— |
|
|
— |
|
|
— |
|
|
8,420 |
|
||||
|
RDS restructuring, net of reversals |
|
608 |
|
|
— |
|
|
9,519 |
|
|
— |
|
||||
|
Ransomware-related insurance recoveries |
|
— |
|
|
(184 |
) |
|
— |
|
|
(184 |
) |
||||
|
Executives transition costs |
|
— |
|
|
1,348 |
|
|
— |
|
|
2,189 |
|
||||
|
Severance-related expenses, net of reversals |
|
— |
|
|
(581 |
) |
|
— |
|
|
5,454 |
|
||||
|
Amortization of debt issuance costs |
|
974 |
|
|
1,048 |
|
|
2,917 |
|
|
3,139 |
|
||||
|
Provision for income taxes |
|
2,997 |
|
|
1,829 |
|
|
5,304 |
|
|
4,405 |
|
||||
|
Non-GAAP EBITDA |
$ |
38,665 |
|
$ |
40,536 |
|
$ |
89,351 |
|
$ |
114,143 |
|
||||
|
Non-GAAP EBITDA margin (non-GAAP EBITDA as a % of total revenues) |
|
13.7 |
% |
|
13.6 |
% |
|
11.1 |
% |
|
12.9 |
% |
||||
| ____________________ | ||
|
(a) |
Tax effects calculated for all adjustments except share-based compensation expense, using an estimated annual effective tax rate of 21% for both fiscal years 2024 and 2023. |
|
|
(b) |
Defined as earnings before interest income and expense, taxes, depreciation, amortization, and share-based compensation, as well as excluding certain other non-GAAP adjustments. |
|
|
|
||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||
|
(Unaudited, in thousands) |
||||||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
||||||||||||
|
Reconciliation of GAAP net cash provided by operating activities to non-GAAP free cash flow: |
||||||||||||||||
|
GAAP net cash provided by operating activities |
$ |
22,754 |
|
$ |
57,007 |
|
$ |
131,407 |
|
$ |
142,680 |
|
||||
|
External-use software development costs |
|
(4,468 |
) |
|
(3,555 |
) |
|
(11,849 |
) |
|
(10,240 |
) |
||||
|
Purchases of property and equipment |
|
(8,868 |
) |
|
(10,632 |
) |
|
(27,376 |
) |
|
(32,404 |
) |
||||
|
Non-GAAP free cash flow |
$ |
9,418 |
|
$ |
42,820 |
|
$ |
92,182 |
|
$ |
100,036 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030989631/en/
Senior Vice President, Investor Relations
650-435-3318
Kathleen.Nemeth@Omnicell.com
Source:
