Executive Summary

Q4 2024 revenue was $306.9M, up 19% y/y, with GAAP EPS $0.34 and non-GAAP EPS $0.60; non-GAAP EBITDA was $46.4M. Results slightly exceeded the top end of the company’s Q4 revenue and EBITDA guidance ranges and were within EPS guidance, indicating solid execution into year-end .
Full-year 2024 bookings were $923M (+8% y/y) and total backlog at year-end was $1.201B; management introduced new KPIs for 2025 including Product Bookings ($558M for 2024 under the new definition) and ARR ($580.0M as of year-end) to better reflect the shift toward recurring revenue .
Product revenue strength and a favorable mix lifted non-GAAP gross margin to 47.4% in Q4 (+290 bps q/q); free cash flow also improved materially in Q4 to $42.7M, supporting the balance sheet after the November 2024 note issuance and partial repurchase of 2025 converts .
2025 guidance implies modest top-line growth (total revenue $1.105–$1.155B) with ARR expected to grow to $610–$630M; management flagged an approximate $0.20 headwind to 2025 non-GAAP EPS from lower interest income after refinancing, a potential stock-reaction catalyst alongside recurring revenue scaling and the OmniSphere rollout .

What Went Well and What Went Wrong

What Went Well

Returned to y/y revenue growth in Q4 with product revenue at $182.3M (+$24M q/q, +$37M y/y) and service revenue at $124.6M (+$1M q/q, +$11M y/y), aided by XT implementations and SaaS/Expert Services traction. “We delivered solid financial results for the fourth quarter of 2024, including returning to year-over-year revenue growth.” .
Margin and profitability improved: non-GAAP gross margin reached 47.4%, and non-GAAP EBITDA rose to $46.4M (+$8M q/q, +$23M y/y), reflecting favorable product/customer mix and operational improvements per management .
Cash generation and balance sheet actions: Q4 operating cash flow was $56.3M and non-GAAP free cash flow was $42.7M; in November, the company issued $172.5M of 1% converts due 2029 and repurchased $400M of 2025 converts (~$391.2M cash), reducing near-term maturity risk .

What Went Wrong

Full-year 2024 total revenue declined 3% y/y to $1.112B; non-GAAP EPS fell to $1.71 (from $1.91 in 2023), reflecting a challenging environment for part of the year and being largely through the XT replacement cycle .
2025 Product Bookings guided flat to modestly down ($500–$550M vs. $558M in 2024 under the new definition) due to concluding the XT replacement cycle; management expects XT Amplify to partially offset but not fully replace upgrade-driven bookings .
2025 non-GAAP EPS faces an approximate $0.20 headwind from reduced interest income following the convertible debt transactions, tempering earnings growth despite ARR expansion and margin initiatives .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Total Revenue ($USD Millions)	$258.8	$276.8	$282.4	$306.9
GAAP EPS ($)	($0.32)	$0.08	$0.19	$0.34
Non-GAAP EPS ($)	$0.33	$0.51	$0.56	$0.60
GAAP Gross Margin (%)	40.7%	41.3%	43.3%	46.2%
Non-GAAP Gross Margin (%)	43.6%	44.2%	44.5%	47.4%
Non-GAAP EBITDA ($USD Millions)	$23.7	$39.8	$38.7	$46.4
Non-GAAP EBITDA Margin (%)	9.2%	14.4%	13.7%	15.1%

Segment breakdown:

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Product Revenues ($USD Millions)	$145.7	$156.6	$158.4	$182.3
Service Revenues ($USD Millions)	$113.2	$120.2	$124.1	$124.6

KPIs and balance sheet:

KPI	FY 2023	FY 2024
Bookings ($USD Millions)	$854	$923
Total Backlog ($USD Thousands)	$1,142,686	$1,201,296
Product Backlog ($USD Thousands)	$610,832	$646,508
Annual Recurring Revenue (ARR) ($USD Thousands, new metric)	N/A	$580,025

Selected Q4 2024 operating and cash metrics:

Metric	Q4 2023	Q4 2024
Cash from Operations ($USD Thousands)	$38,414	$56,315
Non-GAAP Free Cash Flow ($USD Thousands)	$26,042	$42,747
Cash & Equivalents ($USD Thousands)	$467,972	$369,201
Total Debt, net ($USD Millions)	$569.7 (LT converts)	$341.0 (total, net)

Note: Days Sales Outstanding (DSO) was 77 days in Q4 2024, reflecting continued progress in collections and working capital management .

Comparison to company guidance (Q4 2024):

Metric	Prior Guidance (Q3 PR)	Actual	Result
Total Revenues ($USD Millions)	$295–$305	$306.9	Bold beat top end
Non-GAAP EBITDA ($USD Millions)	$40–$45	$46.4	Bold beat top end
Non-GAAP EPS ($)	$0.55–$0.62	$0.60	In range

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Product Bookings ($USD Millions, new metric)	FY 2025	N/A	$500–$550	Initiated
ARR ($USD Millions, new metric)	FY 2025	N/A	$610–$630	Initiated
Total Revenues ($USD Billions)	FY 2025	N/A	$1.105–$1.155	Initiated
Product Revenues ($USD Millions)	FY 2025	N/A	$610–$640	Initiated
Service Revenues ($USD Millions)	FY 2025	N/A	$495–$515	Initiated
Technical Services Revenues ($USD Millions)	FY 2025	N/A	$235–$245	Initiated
SaaS & Expert Services Revenues ($USD Millions)	FY 2025	N/A	$260–$270	Initiated
Non-GAAP EBITDA ($USD Millions)	FY 2025	N/A	$140–$155	Initiated
Non-GAAP EPS ($)	FY 2025	N/A	$1.65–$1.85	Initiated
Total Revenues ($USD Millions)	Q1 2025	N/A	$255–$265	Initiated
Product Revenues ($USD Millions)	Q1 2025	N/A	$137–$142	Initiated
Service Revenues ($USD Millions)	Q1 2025	N/A	$118–$123	Initiated
Non-GAAP EBITDA ($USD Millions)	Q1 2025	N/A	$19–$25	Initiated
Non-GAAP EPS ($)	Q1 2025	N/A	$0.15–$0.25	Initiated

Management commentary also notes ~100 bps expected EBITDA margin expansion in 2025 and an approximate $0.20 headwind to 2025 non-GAAP EPS from reduced interest income post-refinancing .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology Initiatives (OmniSphere, XT Amplify)	XT Amplify launched; momentum building; OmniSphere announced in Dec (ASHP)	OmniSphere highlighted; XT Amplify/XTExtend cited as demand drivers with better margins	Strengthening adoption; platform transition underway
Macro & Hospital Budgets	Stabilization signs; raised 2024 guidance ranges	“Green shoots” and improved hospital financial conditions aiding bookings/revenue trajectory	Improving macro supporting demand
Product Performance (XT Cabinets, IVX Station)	XT lifecycle largely through; IVX recognized with award	Strong XT implementations; XTExtend momentum; IVX robot progressing beyond early adopters; additional NDCs unlocked	Product mix improving; pipeline broadening
Specialty Pharmacy & EnlivenHealth	Specialty Pharmacy and EnlivenHealth partnerships advancing	Specialty Pharmacy wins and expansion; Fortune 25 insurer selecting EnlivenHealth	Strong ARR drivers; double-digit growth expected
Supply Chain/Tariffs	Not highlighted	Processes in place to mitigate tariff impacts; minimal to no expected impact; pricing flexibility	Risk mitigated
Recurring Revenue (ARR)	Advanced Services (SaaS/Expert) scaling	ARR ~53% of revenue; guided to $610–$630M by YE 2025; SaaS/Expert Services growing faster	Recurring mix rising
Regulatory/Legal (340B, HITRUST)	HITRUST certifications; compliance focus	Ongoing HITRUST certification; watchful on 340B implications	Continued compliance focus

Management Commentary

“We delivered solid financial results for the fourth quarter of 2024, including returning to year-over-year revenue growth.” — Randall Lipps (CEO) .
“Non-GAAP gross margin for the fourth quarter of 2024 was 47.4%, an increase of 290 basis points from the prior quarter, boosted by higher product revenue volumes and a favorable product and customer mix.” — Nchacha Etta (CFO) .
“We exceeded our bookings guidance for the year, driven by strength in connected devices.” — Randall Lipps (CEO) .
“ARR today is about 53% of our total revenue… Specialty Pharmacy is a key driver that's growing double digit.” — Nchacha Etta (CFO) .
On OmniSphere deployment: “You can actually run the cloud system with our current legacy systems… meant to be incremental without the double workload.” — Randall Lipps (CEO) .

Q&A Highlights

Macro tailwinds: Management sees improved hospital financial conditions translating into better bookings and a quarter-over-quarter growth trajectory into 2025–2026 .
Margin outlook: 2025 gross margin improvement expected from favorable mix, scaling of SaaS/Expert Services, and XT Amplify/XTExtend margin profile; disciplined OpEx management continues .
Bookings upside drivers: Strong connected devices demand, XT upgrades and market share gains; XTExtend contributed in 2024 .
Tariff risk: Minimal to no expected business impact; mitigations and pricing flexibility in place .
IV compounding robot: Progressing toward broader rollout with a key software release in 2025; customer rollout accelerating .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 and forward quarters was unavailable due to request limits; thus, we compare actuals to company guidance: revenue and non-GAAP EBITDA both modestly beat the top end of guidance, and EPS landed within the guided range . Values retrieved from S&P Global were unavailable due to API limits.

Key Takeaways for Investors

Q4 beat on internal revenue and EBITDA guidance, signaling improved execution and macro-driven demand; non-GAAP gross margin expansion to 47.4% underscores mix and operational gains .
Recurring revenue mix is rising: ARR was $580.0M at year-end and guided to $610–$630M in 2025, with Specialty Pharmacy and EnlivenHealth as key growth engines .
Product Bookings reset for 2025 ($500–$550M vs. $558M in 2024 under new definition) reflects the end of the upgrade cycle; watch XT Amplify/XTExtend and market-share wins to offset softness .
Balance sheet actions (new 2029 converts, repurchase of 2025 notes) reduce near-term debt risk but create an ~$0.20 EPS headwind in 2025 from lower interest income; the trajectory depends on margin/ARR scaling .
OmniSphere and platform modernization provide a multi-year catalyst for enterprise-wide medication management, with incremental migration that minimizes customer disruption .
Watch KPIs: backlog ($1.201B), product backlog ($646.5M), and free cash flow strength ($42.7M in Q4) to gauge 2025 conversion and cash generation .
Near term, seasonal Q1 pattern and guided ranges set expectations; medium term, ARR scaling and margin initiatives are the core thesis while product bookings normalize post-upgrade cycle .

OMNICELL, INC. (OMCL)·Q4 2024 Earnings Summary