Anna Kruszenski: Hi, guys. This is Anna Kruszenski on for Stephanie. Thank you for taking our questions. My first is I was curious if you could talk about how hospital buying is being impacted by the push pull of the change disruption and better utilization levels.
Randall Lipps: I think if you’re referring to the change impact, we’re not seeing any impact in our business, but we’re monitoring it carefully.
Anna Kruszenski: Got it. Okay, thank you. And then as a follow up, just given the recent cadence of forward guidance conservatism, can you walk us through what your assumptions are in the 2Q [ph] guidance? And is this reflective of a pull forward in 1Q or the softer backdrop or just setting a lower bar?
Randall Lipps: Yes, we’re very comfortable with our plan for the guidance that we provided. I know we had a good first quarter and we are not changing our outlook at this point. We continue to track to what we provided. We are seeing some headwinds with some of our customers, but we maintaining our guidance for the year.
Anna Kruszenski: Got it. That’s helpful. Thank you for the color.
Kathleen Nemeth: Next question.
Operator: The next question comes from the line of Bill Sutherland from Benchmark Company. Please go ahead.
Bill Sutherland: Thanks, everyone. Hey, Nchacha.
Kathleen Nemeth: Hi, Bill.
Bill Sutherland: Hey, get the cost initiatives, the cost takeouts that you plan, Nchacha, are they fully reflected now in the model that we’re seeing for, I guess, 2Q?
Nchacha Etta: Bill, I want to make sure I understand your question. Are you referring, which cost takeout, are you referring to?
Bill Sutherland: The ones that you implemented year end? Correct? Am I remembering correctly?
Nchacha Etta: Yes.
Bill Sutherland: Okay. So there’s been nothing incremental year-to-date?
Nchacha Etta: Well, the majority of the benefit from the cost actions were realized the beginning of the first quarter of this year with a smaller portion. We anticipate a smaller portion to continue throughout the year, but the majority was realized in the first quarter.
Bill Sutherland: Okay. And then over to Enliven a little more color. Randy, potentially on what benefited the business and the outlook for it?
Randall Lipps: Yes, I think we’re cautiously optimistic there, but we’ve seen some, a good start to the year with some nice wins, and those wins are the contracting portion and they will result in the ARR as we move forward. But it’s nice to see that business, and I think that’s coming because of the settling down of pharmacists and retail outlets a little bit. And so it gives us a good platform to come in and put in new innovation, but that business is doing solid and then, we believe will eventually grow steadily over the long term.
Bill Sutherland: Has it been more about new rooftops or adding services to current clients?
Randall Lipps: I think the most. A little bit of both, but I think the most recent is rooftops.
Bill Sutherland: Okay. Because it seems like you have such massive market share. Okay, thanks everybody.
Randall Lipps: You bet.
Operator: The next question comes from the line of Stan Berenshteyn from Wells Fargo. Please go ahead.
Stan Berenshteyn: Hi, thanks for allowing me to follow up here. Just wanted to quickly ask on your comments regarding the services revenue pull forward. Can you just give us some color as to what contributed to the timing impact in the quarter? Thanks.
Randall Lipps: Yes, Stan, we saw the timing impact was primarily driven by the pull forward demand in our advanced services as well as our technical services. We do expect that to even out as we go throughout the course of the year. So that’s why we’re tracking or maintaining the guidance outlook that we provided.
Stan Berenshteyn: Great. Thank you.
Operator: As there are no further questions at the queue this time, this concludes our Q&A session; I would like to turn the call over back to Randall Lipps for closing remarks.
Randall Lipps: Well, thank you for joining us today. It’s really an exciting time at Omnicell to see this new innovation, multiyear roadmap. It’s really allowing us to engage with our customers and solving problems that have been pain points that haven’t been addressed. And it really allows us to talk about the future with them. Not only the future of inpatient, but outpatient, and having a more holistic platform and approach to really innovate automation and deliver on the autonomous pharmacy is what the industry needs. I also want to thank the Omnicell employees. Thanks for the hard work and going through Q4 and launching off a good, refreshing year, and I look forward to seeing you next time. Cheers.
A – Kathleen Nemeth: Thank you.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
