January 13, 2021

Omnicell Announces Preliminary Fiscal Year 2020 Financial Results

Company Expects to Exceed Previously Announced Guidance Across All Key Metrics; Provides Full Year 2021 Guidance and Updates Long-Term Targets

2020 Total Product Bookings Expected to be Approximately $1.00 Billion and 2020 Revenues Expected to be $890 Million-$892 Million

Increased Full Year 2021 Preliminary Revenue Guidance to $1.085 Billion-$1.105 Billion

Targeting 14%-15% 2021-2025 Revenue CAGR (Organic 11%-12%; Inorganic 3%)

Announced 2025 Targets of Approximately 21% Non-GAAP Operating Margin and Approximately 25% Non-GAAP EBITDA Margin

With Two New Adds in the Fourth Quarter of 2020, Ended Year with Long-Term, Sole-Source Agreements with 145 of Top 300 U.S. Health Systems

Company to Present at the J.P. Morgan Annual Healthcare Conference Today at 2:00 P.M. ET

Mountain View, Calif., – January 13, 2021 – Omnicell, Inc. (NASDAQ: OMCL), a leading provider of medication management solutions and adherence tools for health systems and pharmacies, today announced preliminary financial results for its fiscal year ended December 31, 2020 and provided full year 2021 guidance. For 2020, the Company expects to exceed its pre-pandemic product bookings guidance and also expects to exceed its October 2020 guidance across all key metrics, including revenues, total product bookings and non-GAAP earnings per share.

“The past year was an outstanding one for Omnicell as we continued to drive growth in our business, execute well on our strategic priorities, and deliver tremendous value to our health system partners, patients and shareholders,” said Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell. “Against the backdrop of the ongoing pandemic, it is clear that Omnicell’s medication management solutions are more strategically relevant than ever, and that Omnicell is the partner of choice. We achieved substantial increases in new customer wins and bookings, as well as expanded our portfolio of solutions both organically and through a strategic and accretive acquisition. I am also pleased to report we have accelerated our shift to the cloud and have high revenue visibility from our recurring revenues, long-term, sole-source agreements within the top 300 U.S. health systems and strong product backlog. We look forward to building on our momentum in 2021 and beyond, and we are confident that we are well-positioned to continue driving significant long-term value for our shareholders.”

Preliminary Fiscal Year 2020 Financial Results

Omnicell expects 2020 product bookings to be approximately $1.00 billion, exceeding its prior guidance of $865 million-$900 million. The Company expects 2020 total revenues to be $890 million-$892 million, exceeding its prior guidance of $881 million-$887 million. The Company expects 2020 GAAP net income to be $28.6 million-$30.6 million and 2020 non-GAAP EBITDA to be $157 million-$159 million. The Company expects 2020 GAAP earnings to be $0.65-$0.70 per share and 2020 non-GAAP earnings to be $2.46-$2.51 per share, exceeding its prior guidance of $2.35-$2.40 per share.

Full Year 2021 Guidance

For full year 2021, Omnicell expects total revenues to be between $1.085 billion and $1.105 billion, an increase from preliminary guidance provided on October 27, 2020. The Company expects 2021 non-GAAP EBITDA to be between $228 million and $240 million. The Company expects non-GAAP earnings to be between $3.38 and $3.58 per share.

The table below summarizes Omnicell’s Full Year 2021 Guidance outlined above.

 

Full Year 2021

Total Revenues

$1.085 billion - $1.105 billion

Non-GAAP EBITDA

$228 million - $240 million

Non-GAAP EPS

$3.38 - $3.58

The Company does not provide guidance for GAAP net income or GAAP earnings per share nor a reconciliation of 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 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 will provide its complete fourth quarter and full year 2020 results and additional 2021 guidance in connection with its fourth quarter 2020 earnings conference call on February 1, 2021.

2025 Targets

The Company has established a 2025 total revenue target of $1.90 billion to $2.00 billion, reflecting a 2021-2025 compound annual growth rate (“CAGR”) of 14%-15%. On an organic basis, the Company is targeting an 11%-12% revenue CAGR over the same time frame, with expected total organic revenue of $1.65 billion to $1.75 billion in 2025.

The Company is targeting a revenue CAGR of approximately 50% from 2020 to 2025 for Software-as-a-Service (“SaaS”), Subscription Software and Technology-Enabled Services, with revenues expected to reach 20%-30% of total Omnicell revenues by 2025.

Omnicell has also set a non-GAAP operating margin target of approximately 21% and a non-GAAP EBITDA margin target of approximately 25% by 2025. This represents non-GAAP EBITDA margin expansion of approximately 400 bps from 2021.

The Company does not provide GAAP operating margin targets or GAAP net operating income margin targets nor a reconciliation of non-GAAP financial targets to the most directly comparable GAAP financial targets because it is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These non-GAAP financial targets 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.

J.P. Morgan Healthcare Conference Presentation and Webcast Details

As previously announced, Omnicell will present at the J.P. Morgan 39th Annual Healthcare Conference today at 2:00 p.m. ET. The Company’s presentation is available on the Omnicell website at https://ir.omnicell.com/communications/events-presentations. A live webcast and replay of the presentation will also be available on Omnicell’s website.

Fourth Quarter 2020 Earnings Results and Conference Call

Omnicell will report its complete financial results for fiscal year and fourth quarter 2020 on February 1, 2021 and hold a conference call that day at 4:30 p.m. ET to discuss financial results. Interested parties can access the conference call by dialing 1-844-358-6756 within the U.S. or 1-216-562-0399 for all other locations. The Conference ID # is 9490367. The webcast of the conference call, along with related slides, will be accessible through Omnicell’s website at https://ir.omnicell.com/investor-relations and will be available for replay through Monday, March 1, 2021.

Read the full release

omnicell closing icon