Good day, and thank you for standing by. Welcome to the Omnicell first quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during this time, you will need to press star one on your telephone keypad. If you require any further assistance, you can press star zero. I would now like to hand the conference over to your speaker today, Ms. Kathleen Nemeth. Please go ahead. Thank you, operator. Good afternoon, and welcome to the Omnicell first quarter 2021 financial results call. On the call with me today are Randall Lipps, Omnicell Chairman, President, CEO, and Founder, Scott Seidelmann, Executive Vice President and Chief Commercial Officer, and Peter Kuipers, Executive Vice President and Chief Financial Officer. This call will include forward-looking statements subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. For a more detailed description of the risks that impact these forward-looking statements, please refer to the information in our press release today, in the Omnicell annual report on Form 10-K filed with the SEC on February 24th, 2021, and in other more recent reports filed with the SEC. Please be aware that you should not place undue reliance on any forward-looking statements made today. The date of this conference call is April 29th, 2021, and all forward-looking statements made on this call are based on the beliefs of Omnicell as of this date only. Future events or simply the passage of time may cause these beliefs to change, and we undertake no obligation to update these forward-looking statements. Finally, this conference call is the property of Omnicell, Inc. and any taping, other duplication, or rebroadcast without the express written consent of Omnicell is prohibited. We refreshed and expanded the investor relations section of our website, where you can find our first corporate sustainability report and other information. On our call today, Randall will provide an update on our business. After Randall's remarks, Scott will provide perspective on the healthcare industry and our key customer wins. Finally, Peter will cover our results for the first quarter, our guidance for the second quarter, and our total year guidance. Our first quarter financial results are included in our earnings announcement, which was released earlier today and is posted in the investor relations section of our website at omnicell.com. Additionally, we'd like to remind you that 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 earnings announcement. I will now turn the call over to Randall. Good afternoon. Thanks for joining us today. Well, Omnicell is off to a solid start for the year, and I'm proud of the outstanding results delivered by the team this quarter. We exceeded the top end of our guidance ranges for revenue, non-GAAP EBITDA, and non-GAAP EPS, posting record revenues of $252 million and non-GAAP earnings per share of $0.83 for the first quarter. We believe these strong results reflect our customers' trust in Omnicell and their recognition of the significant benefits inherent in vision of the Autonomous Pharmacy. Our first quarter performance also reflects excellent operational execution and financial discipline, with non-GAAP EBITDA of $61 million and strong free cash flow of $44 million. Peter will review the financial results and the guidance for the second quarter and the full year in more detail later in the call. It's been about one year now since the COVID-19 pandemic fundamentally altered our society and our daily lives. During this time, we have focused our efforts on supporting our healthcare partners through this unprecedented time. We successfully pivoted to virtual installs of hospital sites, and like many companies, we implemented remote work practices. We learned a lot over the last year, and we believe the industry now recognizes that medication management is a mission-critical element of their care delivery model. It's been a privilege to support our customers as they've worked to modernize and optimize their medication management systems, and we are confident that Omnicell is well positioned to enable them to accomplish this effectively and efficiently. Turning to recent customer successes. We increased our number of long-term sole source contracts during the first quarter with top 300 U.S. health systems. One of these new wins is the largest single sole source agreement in Omnicell's history. A top 10 U.S. health system has chosen Omnicell to help them design and implement complex pharmacy workflows in support of their journey towards the Autonomous Pharmacy. We now have long-term sole source agreements with 147 of the top 300 U.S. health systems. We are honored to have been selected for this critical infrastructure initiative and believe a win of this magnitude demonstrates that our strategy and our execution are working. Our second quarter is off to a solid start with the addition of Scripps Health as our 148th long-term sole source agreement. Through this new partnership, Omnicell will be implementing automated dispensing systems for patient care areas and operating rooms, cloud-based intelligence solutions, and tech-enabled services. This newest win is a competitive conversion opportunity for us and underscores the strength of Omnicell's value proposition. We believe that the power of our customer relations is unique within our industry, as we are truly strategic partners with our customers and work closely together to understand, design, and implement complex pharmacy automation workflows. This enables pharmacy staff and care providers to spend their time where it matters most, caring for patients. It is the quality of these relationships, together with our innovative products and services, that enables us to achieve market share gains and improve business performance. Importantly, our advanced services portfolio, which includes several subscription-based technology-enabled services such as Omnicell 340B, EnlivenHealth, and Omnicell One, delivered strong results for the quarter and continues to be well-received by the market. As we continue to enable the vision of the Autonomous Pharmacy, we are evolving from a product hardware company to a technology-enabled software services business powered by the cloud. 2021 marks nearly 30 years since the company was founded. Throughout the years, I've learned that evolving this business and undertaking a shift in strategy requires that we continue to elevate our culture. For instance, three years ago, I hired Scott Sieldermann to help transform our commercial organization to realize our vision. Scott has since assembled a great team that has been responsible for some of our recent strong execution. Under this mindset, we welcomed Christine Mellon to Omnicell during the first quarter of this year in the newly created role of Chief People Officer. The Autonomous Pharmacy vision requires investment in our people and culture, which is why the role is so critical for us at this time. Christine brings more than 25 years of experience at high-performing software and technology companies such as Oracle and most recently, CSG. We are delighted to welcome Christine to the team. Our achievements over the years have always been driven by our people, individuals from diverse backgrounds, who share a commitment to our vision and seek to make a positive impact in the world. During the last year, our employees have shown great dedication and efforts despite the many challenges brought by the pandemic. Before I turn it over to Scott, I wanted to highlight our recently released inaugural ESG and corporate responsibility report, which many of you have probably already seen. We recognize that we are accountable not only to our customers and our shareholders, but also to the global community. We are focused on innovating to drive sustainability across our business ethically and responsibly sourcing materials by adhering to the internationally recognized OECD guidance and elevating our diversity and inclusion initiatives. We hope you find our first report helpful, and we look forward to continuing to provide updates on our progress. Now, looking ahead, I remain confident and believe that we are well positioned to continue to drive growth and add real value to the communities we serve. We're excited to continue to build on our momentum in 2021 and beyond, and we appreciate your support and confidence in Omnicell. With that, I'll turn it over to Scott. Thank you, Randy. Before I discuss some of the customer highlights and our progress this quarter, I want to briefly expand on the point that Randy just mentioned regarding the organizational work that we have done over the last three years. Once we translated the Autonomous Pharmacy vision into a strategy, it was clear that we needed to evolve our organizational design from one focused on delivering primarily a single hardware product to one that could deliver new products and technology-enabled services built on the cloud. We significantly changed our organizational design by elevating our account management structure and nationalizing our sales and customer organization, a structure that has been recognized by Gartner as a best-in-class go-to-market design. We also added professional services, product management, customer success, and software engineering functions. Into that transformed organizational design, we recruited seasoned leaders with expertise in technology-enabled services, SaaS, customer experience, and software development. Today, we are fortunate to have a complete world-class commercial leadership team, which is largely responsible for our exciting recent results. The combination of our strategy, transformed organizational design, and new leadership is helping us to realize the vision of the Autonomous Pharmacy. Practically, that progress can be seen in our continued expansion of our long-term customer partnerships and competitive conversions. As Randy mentioned, we increased the number of sole source agreements in the first quarter, bringing our total to 147. Our 146th sole source agreement is with a top 10 health system, which selected Omnicell to deliver medication management solutions across its network of more than 65 hospitals and 550 facilities in the U.S., the largest contract in our company's history. Additionally, we signed our 147th agreement in Q2 with a North Carolina-based four-hospital system. Our second quarter is off to a solid start with the addition of Scripps Health as our 148th long-term sole source agreement. Through this new partnership, Omnicell will be implementing its XT automated dispensing system and its cloud-based intelligence solution. This is a competitive conversion and underscores the value of our market proposition. Another highlight for the quarter is a competitive conversion with an Illinois-based academic medical center that will be expanding their footprint from XT automated dispensing systems across their integrated health network. One of the reasons that our sole source strategy is winning in the market is because of our unique advanced services portfolio. Let's walk through some of the highlights. Omnicell One is a cloud-based technology-enabled service that combines software, analytics, and experts to help health systems manage drug inventory, increase provider efficiency, and reduce compliance risks. We continue to see strong market demand for this unique solution. Recently, West Virginia-based WVU Medicine subscribed to Omnicell One as part of a multiyear sole source agreement renewal. Central Pharmacy Dispensing Service is a technology-enabled service that combines our XR2 robot, analytics, and experts to help health system central pharmacies reduce errors and increase provider efficiency for oral drug distribution. We are very pleased with the positive customer feedback we are receiving on this recently launched solution and look forward to continuing to update you on our progress. In the first quarter, Atrium Health Foundation and The Christ Hospital Health Network signed long-term agreements for CPDS. Omnicell 340B is a technology-enabled service that combines workflow software, analytics, and experts to help health systems organize their increasingly complex and financially critical 340B programs. We see strong market demand for this solution, this is a great example of the power of Omnicell's channel to accelerate acquisitions. Less than six months after we acquired this technology-enabled service business, we successfully integrated the Omnicell 340B capabilities into our Autonomous Pharmacy vision. Excitedly, in Q1, the largest not-for-profit healthcare system in Texas expanded its existing Omnicell relationship with the implementation of Omnicell 340B solution under a multiyear agreement. Also in Q1, we signed Omnicell 340B partnerships with an integrated health system in the Midwest and one of the largest community health members in the Northwest. EnlivenHealth is a technology-enabled service that combines workflow software, analytics, and experts to help retail pharmacies and payers to increase provider efficiency, improve economics, and provide population health services to at-risk populations. We are helping retail pharmacies and health plans to improve patient outcomes while reducing costs through advanced technology solutions for patient engagement and communication. We are very proud that EnlivenHealth CareScheduler solution is playing an important role in enabling pharmacies and other healthcare entities to efficiently manage the historic COVID-19 immunization effort. CareScheduler automates the scheduling, patient communication, and reporting for administering vaccinations, immunizations, and select diagnostics, all increasingly important services as pharmacies are apt to expand their scope of service. This week, we announced a new partnership with Twilio, a global leader in cloud-based digital communication technology. The partnership will enable EnlivenHealth to accelerate the creation and launch of an omnichannel communication solution that will allow customers to create a truly personalized experience for their patients and members using interactive phone messaging, SMS texting, chatbots, email, and a mobile app. Like a traditional SaaS offering, EnlivenHealth will continue to frequently add new features and capabilities to this platform to increase value for its retail pharmacies and payer customers. We are still early in the development of our advanced services portfolio and the realization of the Autonomous Pharmacy vision. Overall, we are excited by our recent performance and long-term outlook. Our advanced services portfolio not only creates new sources of revenue growth and recurring revenue streams for Omnicell, but is key to achieving a fully autonomous pharmacy. The powerful combination of our advanced services portfolio with our superior channel and long-term sole source contract strategy reinforces our confidence in the 2025 advanced services revenue targets we shared with you at the JP Morgan Annual Healthcare Conference earlier this year. As a reminder, we are forecasting a 50% CAGR in advanced services revenue from 2020 to 2025, which would be 20%-30% of total revenue by that timeframe. Now, I'd like to turn the call over to Peter to discuss our first quarter financial and operational results and our Q2 and full year 2021 guidance. Peter? Thank you, Scott. Our strong first quarter commercial, operational, and financial results demonstrate the strength of our business model and that our strategy is working. Healthcare system partners are embracing the vision of the fully Autonomous Pharmacy, resulting in an increasing percentage of high visibility and high predictability recurring revenue for Omnicell. Our customers see the value in our platform and solutions and are partnering with us as they advance their pharmacy automation roadmaps. I'm very pleased with the progress we're making at furthering the vision of the Autonomous Pharmacy, and I'm proud of the solid execution our nearly 3,000 Omnicell team members continue to consistently deliver. Turning now to our financial results. Our first quarter 2021 revenues were $263 million. An increase of $3 million over the prior quarter, up 10% over the first quarter of 2020, above the top of our guidance range. First quarter earnings per share on a GAAP basis of $0.30 per share, compared to $0.37 per share in the fourth quarter of 2020, and $0.26 per share in the first quarter of 2020. A full reconciliation of our GAAP and non-GAAP results is included in our first quarter earnings press release and posted on our website. First quarter non-GAAP earnings per share were $0.83 compared to $0.91 a share in the previous quarter, and $0.66 in the same period 2020. First quarter non-GAAP EPS result exceeded our expectations due to stronger revenue as well as favorable expense items such as travel and the timing of account additions. Non-GAAP gross margin for the first quarter was 50.6%. A slight decrease from the previous quarter, primarily due to revenue mix and increased freight expense. Year-over-year, which represents an increase of 120 basis points, driven by volume leverage, supply chain initiatives, and favorable product mix. The non-GAAP EBITDA margin for the first quarter of 20.1%, expanded by 250 basis points compared to the prior year first quarter, and decreased slightly from the previous quarter. I would now like to comment on the strength of our cash flow performance. At the end of the first quarter, our cash balance was $548 million, up from $486 million as of December 31st, 2020. The $62 million increase in cash was driven primarily by $57 million in cash flow from operations. The cash flow during the first quarter was strong at $44 million, compared to $65 million from the previous quarter and $11 million from the prior year. In terms of accounts receivables, days sales outstanding for the first quarter was 76 days, an increase of five days over the last quarter and a decrease of 17 days from the first quarter of 2020. Inventories as of March 31st, 2021 were $96 million, essentially flat with the prior quarter, and a decrease of $17 million when compared to the first quarter of 2020 as a result of our concerted efforts on global supply chain process improvements and inventory management. Before turning to guidance, as a reminder, I would like to walk through the long-term financial framework we initially presented at the JP Morgan Healthcare Conference earlier this year, and that we reiterated on our last earnings call. I will now walk through the highlights. Our revenue base is resilient and highly visible in nature, and is differentiated by five key drivers. First, a very robust product backlog, which increased during the first quarter and is expected to further increase during the year. Secondly, long-term sole source agreements with now 148 of the top 300 U.S. health systems. Thirdly, customer value across all clients, evidenced by our strong customer retention rate of approximately 99%. Fourth, we have strong insights into annual service and maintenance revenue from our large installed base of connected devices, which is in the early stages of its upgrade cycles. Lastly, while nearly all of our revenue has high visibility, roughly 40% of our revenue base is recurring in nature, and we are focused on growing this percentage over time. As we have previously discussed, an area of our business which is driving substantial growth in high visibility revenue is advanced services. We're forecasting a revenue CAGR of approximately 50% from 2020 to 2025 for these advanced services, with revenues expected to reach 20%-30% of total Omnicell revenues by 2025. This is subscription-based recurring revenue with high margin unit economics. We're targeting a company-level total revenue CAGR of 14%-16% in 2021 to 2025, reaching $1.9 billion-$2 billion in total revenue by 2025. We're targeting non-GAAP operating margin of 21% and a non-GAAP EBITDA margin of 25%, both by 2025. We have built a company that's able to scale very well, and we believe we are very well positioned to deliver on our 2025 plans. This is driven by a number of factors, including improved business mix, benefits of long-term exclusive customer partnerships, economies of scale, manufacturing savings, and process efficiency. As we continue to scale the business, we expect to redeploy some of these savings into value-creating growth and innovation initiatives. Moving on to our full year 2021 updated guidance. Given the strong start to the year, we are raising our full year non-GAAP EBITDA and non-GAAP earnings per share guidance. As a reminder, our full year 2021 product bookings are expected to range between $1 billion and $90 million and $1 billion and $150 million. We expect total 2021 revenue to range between $1 billion and $85 million and $1 billion and $105 million. We expect product revenue to range between $770 million and $785 million. We expect service revenue to be between $315 million and $320 million. We now expect total year 2021 non-GAAP EBITDA to be between $231 million and $242 million. Using the midpoint of the updated and increased non-GAAP EBITDA ranges, this represents an approximate 21.6% non-GAAP EBITDA margin for 2021, up approximately 380 basis points in 2020. In 2021, we're assuming an effective blended tax rate of approximately 12% in our non-GAAP EPS guidance. We now expect 2021 non-GAAP earnings per share to be between $2.50 per share and $3.70 per share. We believe that our margin expansion progress is on track towards our 2025 estimated non-GAAP EBITDA margin target of 25%. For the second quarter of 2021, we are providing the following guidance. As you noted last quarter, we continue to invest in scaling our business to support the expected increase in revenue and the timing of customer implementations. Our second quarter guidance also includes additional freight costs given global market conditions. We expect total second quarter revenue to be between $265 million and $270 million, with product revenues between $192 million and $195 million, and service revenues between $73 million and $75 million. We expect second quarter non-GAAP EBITDA of $53 million to $56 million. Using the midpoints of the second quarter guidance ranges, this represents an estimated quarter-over-quarter non-GAAP EBITDA margin expansion of approximately 30 basis points. We expect second quarter non-GAAP earnings now to be between $0.80 per share and $0.85 per share. The team has done a fantastic job supporting our customers during these unprecedented times. As Randy mentioned, while many of us at Omnicell have transitioned to remote work, this is not an option for our supply chain and manufacturing teams, who have remained on site since the start of the pandemic, ensuring that access to our critical and strategic medication management automation management systems were assembled, tested, and transported to our healthcare system partners all throughout this. I would like to thank them for their efforts and contributions. In summary, we are very pleased with our commercial, operational, and financial results for the first quarter of 2021, and we look forward to updating you on the progress in the coming quarters. With that, we would like to open the call for your questions. If you would like to ask a question, please press star one on your telephone keypad. We'll pause for a moment to compile the Q&A roster. Your first question comes from the line of Sean Wieland with Piper Sandler. Hi. Thank you guys so much. It's Jess on for Sean. I think we're interested to know just how exactly the COVID vaccine management solution was developed. If you could talk just a little bit about the innovation process. Were your customers asking you for this? How was it rolled out? Maybe just, was it more a new customer driver? Was it incremental revenue driver at existing customers? Any detail on that would be helpful. Sure. I'll take that. This is Scott Seidelmann. I think the question, if folks couldn't hear me, was really around what was the innovation process around the development of our COVID vaccination solution, which is we launched as CareScheduler under the brand name. First off, CareScheduler, what that actually is, EnlivenHealth platform is a SaaS platform that we provide to retail pharmacies to enable pharmacists to automate a variety of workflows, frankly, to let them focus on things and actually treating the patient as opposed to doing many administrative things. Clearly, one of the things that we heard loud and clear from our retail pharmacy customers as COVID unraveled, and frankly, the scope of practice for pharmacists was expanded as it became clear that pharmacists were going to have to start providing these vaccinations, was that they just simply did not have the tools to do that. We're talking, in some cases, around pretty basic capabilities, like how do I schedule patients? Now with COVID, do I want those patients queuing up inside the retail pharmacy, et cetera. We certainly are eager to continue to add value and add capabilities to that retail platform, which creates incremental value for those retail pharmacies. I think kudos to the team that quite quickly, over about a six-month period, they identified the need, developed the software, and rolled that out. I think one aspect of your question was, did we really roll this out to net new customers on the platform, or was this incremental for existing customers? The short answer is both, but predominantly existing customers, right? Which is that in typical SaaS platform fashion, we could charge an additional amount for the CareScheduler module. As they upgraded to that and had that capability, they could provide that service to their customers. It was really quite fast. I think like many things during the pandemic, we have been very proud of that team's ability not only to develop and bring the product to market, but actually get it deployed and to the point where it could be used quite widely by that customer base. Anyway, I hope that gives you some of the flavor. Yes, that's helpful. Can I just quickly, one follow-up on that. How has EnlivenHealth driving patient engagement and communication pre-Twilio, or are these pharmacists essentially going from nothing to a comprehensive omni-channel solution? Absolutely. Like I said, the Enliven platform automated workflows for pharmacists, and one of those workflows, or one set of those workflows, is enabling pharmacists to engage their patients in that way. Voice in the form of IVR, text message follow-up communication. We were providing those services. What the partnership with Twilio does is enables us to really upgrade the quality of those communication technologies and to add chat and other online and mobile. It really, for us, instead of developing that for ourselves and modernizing those, we were able to partner with a best-in-class provider and get to market so much faster. Yeah, it allows us to put our resources on solving problems, not delivering basic connectivity to people. It really allows us to work on those complex workflows that really solve problems. Thank you. Our next question, please. Thank you, Jessica. Next question. Your next question comes from the line of Iris Long with Berenberg Capital Management. Hello. Hi, guys. Thanks for taking my question. I guess a follow-up to the EnlivenHealth question. I'm wondering if you guys can talk about how big is the retail pharmacy business as a percentage of your total revenue right now. As we think about the guidance and as you continue to add more features to the platform, I guess, what growth assumptions do you have, or what growth assumption is embedded in the guidance? Yeah, thank you, Iris. This is Peter. The retail pharmacy part of our business, right, is a smaller part of the business if you compare it to the hospital side of the business. It is growing at a really nice momentum, maybe generally kind of in line with the total company. While we are focusing, I think as we discussed before, really on the software platform there to really engage the patients and freeing up the pharmacist in the retail pharmacy today. Okay, got it. The pricing model there, is it just a subscription model based on the number of modules? Is that the right way to think about it? Yeah, it's a combination. It's a subscription model mixed with the one-time services. A good chunk of that also is pure SaaS. Okay, great. The other question- Patients engaged, right? Yeah. Yeah. Okay. The other question I have is on Omnicell One. It seems that you guys are seeing strong customer interest. I'm wondering if you can compare Omnicell One to maybe some of the other software solutions on the market. What's Omnicell One's advantage? I guess the same similar question there, can you remind us what your pricing model and the pricing strategy going forward? Sure. The question is, how does Omnicell One compare to some of the other offerings in the market? I think two ways. One's in depth, right? On the one hand, the vision for Omnicell One was not to be a pure analytics product in the sense that there's a lot of analytics capabilities in healthcare, and the challenge with analytics capabilities in healthcare, I can only speak to healthcare, pretty much the only industry I work in. The challenge is that getting an operator and the customer to actually react to that data and actually change things, that's often they're not connected many times because the workflows are so complicated. What we've done with Omnicell One is to really integrate analytics with workflow. If Omnicell One is predicting that there's a potential for a stock out or a shortage, instead of just creating a dashboard that someone may or may not pay attention to, Omnicell One actually sends a notification to the pharmacy tech to actually do something or create a task in a workflow. We think that on the one hand, that connectivity between analytics and workflow is really so important. I mentioned previously, I think extending that, is that we have a customer success organization of former pharmacy informaticists, workflow experts that get assigned to accounts that really, in true customer success fashion, are really trying to interpret some of the data and work very closely with customers to engage and provide better outcomes. On the one hand, it is very much a true service on that in the sense that we're identifying outcomes, we're integrating it with workflow, and there's an expert that is on the customer journey with the customer to achieve those outcomes. We think that's highly differentiated. The second one, I think on the second dimension, which is breadth of offerings, is that Omnicell One optimizes inventory, optimizes provider efficiency, optimizes avoidance of compliance risk. That breadth is very unique when compared to other service offerings. That was a very deliberate in our approach to not offer those as separate modules, but to offer it as a single subscription service that combine those. Again, like a true subscription service, we're continuing to add that and add that functionality, and that value will continue to grow for the customer and drive more demand for the service. Great. If I may add one more question. You guys talk a lot about competitive conversion. I'm wondering, what do you think is the main driver for success there? How has that changed maybe compared to last year? You want me to take that one? Yeah. I'll take that. Well, I'd say it hasn't changed much from last year, but I'd say a couple of years ago or a few years ago, it was more product-based. As we moved to a solution-based company with a broader breadth of products and now tech-enabled services, really allows us to talk about how are we going to digitize the entire pharmacy workflows so that we can use the power of the cloud to do a lot of the work that just doesn't seem to get done as you would think would happen in a complex pharmacy operation. When we go in and talk about the whole breadth of our product offering and the tech-enabled solutions to help them actually get better performance, not by them just deploying the product, but by us working together day to day, optimizing and deploying the products together, it's a different sense of success rate that they have not seen in the past with other ways of doing it. People want a better outcome, and the pandemic for sure brought up the shortcomings of the poor pharmacy supply chains in many of these systems, which in many cases, diverted the proper care for some patients because they just didn't have the right kind of drugs positioned in the right place. With that, I think there's a heightened sense of, look, we got to digitize the pharmacy in order to really get to where we want to, which is near perfection on getting drugs to the right place, near perfection on regulation and safety and economics, and making better decisions and get pharmacists out of the basement, get them out behind the counter and get them with the patient where their clinical practice can maybe change the difference in a big way. Thank you. Great. Thanks so much. Your next question comes from the line of Scott Schoenhaus with Stephens. Hi, Randall, Peter, and team. Yes. Hey, my first question is on the results and guidance. You guys beat the top line, driven by greater than expected product revenues, came in about $4 million above the top end of your guidance range, but you didn't change your full-year product revenue guidance. Was this just a pull forward in timing of a contract that you anticipated to occur later throughout the year? I just wanted any additional color there. Yeah. I'll wrap up on that. As you know, the product backlog going into the year, the product backlog for the end of December 31st 2020 is up 57%. We feel very strong and confident in the revenue guidance for the year. We did exceed in the first quarter the top end of the guidance range. It's a bit of timing, but it's also fairly early in the year still to look at updating full year guidance. We might later in the year. It's mostly aligned with customer timing of implementations. Does that? That makes sense. Yeah. Yeah, that makes sense, Peter, given your track record with achievable guidance. Okay. On the services side, can you talk more about 340B opportunities and the traction you're seeing in any cross-selling? I believe you stated last quarter that the 340B team closed multiple new opportunities in Q4. Is there any update to these stats in the quarter and maybe some color on the acceleration of other software platforms we've been talking about in EnlivenHealth, Omnicell One? Your guidance assumes more of a ramp in this service revenues, in the back half of the year. Thanks for the questions. Thank you, Scott. Multiple questions there. The 340B, we're very pleased with the addition to the Omnicell platform. We do have a rich pipeline and really good momentum in cross-selling the 340B. We did announce the first cross-sell already within the now top 148 multi-source partners within the top strategy of health systems. There is a really good opportunity there for those multi-source customers that do not have 340B currently or have a different software vendor. Very positive there and we're confident that we'll be able to announce some more positive news there on the additional cross-selling throughout the year and as we go through the years as well. In EnlivenHealth, we talked about them in script quite extensively. We had an early question there as well, really growing nicely, a lot of momentum. Also on CPDS, which Scott talked about a little bit earlier. We see some great momentum there as well. It's all in line and maybe another way to frame it is we're very confident in making progress to the long-term goal, and certainly for this year, we're definitely on track as we look at the quarter situation as well and the pipeline. Absolutely. Great. Thanks. Looking forward to your continued execution, Peter and team. Thanks. Yeah. Thanks. Again, if you would like to ask a question, please press star one on your telephone keypad. Your next question comes from Matthew Hewitt with Craig-Hallum Capital. Good afternoon. Congratulations on the good start to the year. Thank you. First one, I feel like it's been a while since we've talked about the competitive landscape. Obviously, as you guys have expanded the services, added more software, I feel like we don't talk about it much, but are you seeing anything from your peers? Are they trying to match or mimic the way that you've kind of expanded into other areas? Have they, I don't want to say given up, but I just feel like we're not hearing much about the competitive landscape much anymore. Yeah. Maybe I'll take that one first, and then Randall Lipps. Well, they're still there. There's always competition, and it just depends on what kinds of things our customers are looking for. Most customers are taking a strategic approach to medication management. I think if you take a strategic approach, now you have to take a broader and more in-depth approach to figuring out how to digitize the whole pieces of the business, and really want a company that's got a vision for doing that. I think people are not buying only into what we have today, but where we're going. That's why you see these partnerships for seven, 10, 15 years, is because it's not necessarily that we have every single product they want today, but they know that we're committed and that the software as a service and tech-enabled services are places where we're going to continue to create value on the platform. To the extent that these customers are aligned with that vision with us, and many are, and maybe not everyone, but many of them are, it allows us to really compete sort of in a different space. I would never say there's no competition because there's always some. Got it. I think that what we're doing is a little different than most people. Understood. Then maybe shifting gears a little bit. With the ramps in the number of people vaccinated and obviously pockets of the pandemic maybe showing signs of slowing down, is that enabling your sales and service teams to get back in and actually meet with the customers face-to-face? What can that mean from driving incremental sales? Thank you. Yeah, I think we're seeing more of that. If you're vaccinated and under certain conditions where they can meet face-to-face, I'm not saying everybody's there, but certainly a lot are. I think for many of our big customers out there, this is strategic, and so it's really beyond the question of how healthy is the financial bottom line of the hospital. This is strategic, something they have to do, they know they need to do, and it's beyond just always having to meet in the old-fashioned way face-to-face. We have a lot of engagement with our account base and with the marketplace, and I just don't feel like this time that's really an hindrance to our execution at all. Maybe in some ways, getting a few more Zoom calls is a lot more efficient than flying some people around. We've taken a little bit of advantage of that. I feel really good about the pipeline, the momentum, the sales force ability to do what they need to do to get these solutions in front of customers that like that. Well, that's great. Thank you for taking the questions. You bet. Thanks, Matt. Thank you, Matt. Next question, please. You have a question from Bill Sutherland with The Benchmark Company. Thanks. Hello, everybody. I apologize up front. I got on pretty late in the call, so if you covered it. Peter, did you address the service gross margin in the first quarter? It was different than my model in F4Q. I thought there'd be a bit more 340B positive impact in it. On the service gross margin and looking at that, we're scaling to most of the attached services, right? That's all the recurring revenue that is accounted for, of course, in service revenue and the scaling that business. We have up-front investments, if you will. From a gross margin perspective, we expect both product gross margin and service gross margin to increase during the year through the quarter directionally, also over the next couple years. I'm not sure I caught the first part of your answer, Peter. The first quarter, is there anything other than just, I don't know what to call it, noise? It's scaling and investment, if you will, right? As we build out, scale these service offerings as well. Oh, I see. Okay. You see historically, I believe benefit cost in the first half of the year is always higher, right? Product go-to-market. Yeah. Just adding a few more people earlier on in the year to deal with demand as we move forward. That kind of hits a little bit more in the first quarter. Yeah. That's also what kind of threw me because the R&D was lower than I expected as a percent of revenue. One other thought I had on the 340B, the customers that they have already. Are there any discussions with their customers that might lead to sole source deals for your other family of solutions? Yeah, I think we are looking potentially those ways, right? In the sense that our channel certainly is quite powerful in its ability to introduce this solution to a much broader set of customers through the sole source arrangements. As Randy pointed out, the comprehensive strategic portfolio, that there's certainly demand there to add that service. Certainly, the teams are also looking to say, are there customers that 340B has that we don't currently serve, right? It's going to be a much, much smaller list, just given the breadth and depth of our customer base. Certainly the teams are exploring that. Yeah. Yeah. I was thinking it would mostly go one way, but occurs to me that it could lead to some sole source deals too. Thanks for taking the questions. We'll catch up later. Thank you, Bill. Thanks, Bill. I would now like to turn the conference over to Randall Lipps for closing remarks. Well, thanks for joining us today. We're certainly pleased with the strong start to the year. As the need for increased automation and digitization of processes grows, our solutions are more strategically relevant than ever for these customers. Our results and our continued momentum underscores that Omnicell remains the partner of choice, and we're excited to continue to build on our platform and advance the vision of the Autonomous Pharmacy. Thanks for joining us today. See you next time. Thanks, everyone. This does conclude today's conference call. Thank you for your participation. You may now disconnect your lines.