• Q3 revenue of $21.3 million, increasing 30% year-over-year
• Q3 gross profit increased 37% year-over-year to $13.4 million with a gross margin of 63%
• Won 5 DAAP deals during Q3

WALTHAM, Mass., Nov. 13, 2024 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of healthcare technology solutions helping life sciences companies reach and engage healthcare professionals (HCPs) and patients, reported results for the three months ended September 30, 2024. Quarterly comparisons are to the same year-ago period.

Financial Highlights

• Revenue in the third quarter of 2024 increased 30% to $21.3 million, as compared to $16.3 million in the same year ago period.
• Gross profit in the third quarter of 2024 increased 37% year-over-year to $13.4 million, from $9.8 million during the third quarter of 2023.
• GAAP net loss totaled $(9.1) million or $(0.50) per basic and diluted share in the third quarter, as compared to $(2.9) million or $(0.17) during the third quarter of 2023.
• Non-GAAP net income in the third quarter totaled $2.3 million, or $0.12 per diluted share, as compared to non-GAAP net income of $1.6 million or $0.09 per diluted share during the third quarter of 2023 (see definition of these non-GAAP measures and reconciliation to GAAP below).
• Adjusted EBITDA for the third quarter of 2024 came in at $2.7 million compared to $0.9 million in the same year ago period (see definition of this non-GAAP measure and reconciliation to GAAP below).
• Cash, cash equivalents and short-term investments totaled $16.1 million as of September 30, 2024 as compared to $13.9 million as of December 31, 2023.

Will Febbo, OptimizeRx CEO, commented, “While revenue against expectations came in under, we are encouraged by the traction we are getting with our top clients and DAAP’s continued progress. We are also pleased to show we met expectations on an adjusted EBITDA basis, which speaks to the scale and leverage in our business when growth returns. We also paid down an additional $2.0 million of principal on our term loan since the end of the third quarter and were cash flow positive for the period. We continue to see enterprise and pipeline building and pharma leaning into digital and believe there is significant value in our platform and in the Company’s strategic positioning across the broader market. We now have one client that is expected to surpass $15 million with revenue in-year and multiple customers for 2025, each which is expected to generate over $10 million in revenue. All this gives us confidence in the business and its trajectory.

“Having expanded the business from a single product to being recognized as an established market leader in digital health communications, we continue to serve top-tier clients, collaborate with scalable partners, and rely on a talented team that drives our success. Our clients are looking to scale with digital partners and our thesis around HCP and DTC on one platform is resonating. Our clients are relying on us as an innovative leader to educate HCPs and patients, while our exceptional team consistently exceeds client expectations and delivers outstanding results. None of this is reflected in our public valuation, but all of it is reflected in our day-to-day with clients, partners and teammates. While it may take a little longer than we thought to grow the business into what we believe it can become, there is a clear large market opportunity, and we are squarely focused on capturing market share as a leader in the digital marketing space.”

2024 Financial Outlook

For the full year 2024, the Company is updating its 2024 guidance and expects revenue to be between $88 million and $92 million with an Adjusted EBITDA to be between $8 million and $10 million.

Conference Call

Definition and Use of Non-GAAP Financial Measures 

This earnings release includes a presentation of non-GAAP net loss and non-GAAP net loss per diluted share or non-GAAP EPS, and Adjusted EBITDA, all of which are non-GAAP financial measures.

The Company defines non-GAAP net income (loss) as GAAP net loss with an adjustment, as applicable, to add back depreciation, amortization, amortization of debt issuance costs, stock-based compensation, acquisition expenses, severance expenses, income or loss related to the fair value of contingent consideration, gain or loss from the disposal of a business, asset impairment charges, other income (loss), and reversal of deferred tax valuation allowance. Non-GAAP EPS is defined as non-GAAP net income (loss) divided by the number of weighted average shares outstanding on a diluted basis. Adjusted EBITDA is defined as GAAP net loss with an adjustment, as applicable, to add back depreciation, amortization, interest, stock-based compensation, acquisition expenses, severance expenses, income or loss related to the fair value of contingent consideration, gain or loss from the disposal of a business, asset impairment charges, other income (loss), and income taxes. The Company has provided non-GAAP financial measures to aid investors in better understanding its performance. Management believes that these non-GAAP financial measures provide additional insight into the operations and cash flow of the Company.

Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a Company’s non-cash operating expenses, management believes that providing non-GAAP financial measures that exclude non-cash expenses allows for meaningful comparisons between the Company’s business operating results and those of other companies, as well as provides an important tool for financial and operational decision making and for evaluating the Company’s business operating results over different periods of time.

The Company’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate such non-GAAP financial results differently. The Company’s non-GAAP net income (loss), non-GAAP EPS and Adjusted EBITDA are not measurements of financial performance under GAAP and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. The Company does not consider these non-GAAP measures to be substitutes for or superior to the information provided by its GAAP financial results.

The table, “Reconciliation of Non-GAAP to GAAP Financial Measures,” included below, provides a reconciliation of Non-GAAP net income (loss), Non-GAAP EPS and Adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023. Although the Company provides guidance for Adjusted EBITDA, it is not able to provide guidance to the most directly comparable GAAP measures. Reconciliations for forward-looking figures would require unreasonable efforts at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, acquisition expenses, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information.

Definition of Key Performance Indicators*

Top 20 pharmaceutical manufacturers: We have updated the definition of “top 20 pharmaceutical manufacturers” in our key performance indicators to be based upon Fierce Pharma’s most updated list of “The top 20 pharma companies by 2023 revenue”. We previously used “The top 20 pharma companies by 2022 revenue”. As a result of this change, prior periods have been restated for comparative purposes.

Net revenue retention: Net revenue retention is a comparison of revenue generated from all clients in the previous period to total revenue generated from the same clients in the following year (i.e., excludes new client relationships for the most recent year).

Revenue per average Full Time Employee: We define revenue per average full-time employee (FTE) as total revenue over the last 12 months (LTM) divided by the average number of employees over the LTM, which is calculated by taking our total number of FTEs at the end of the prior year period by our total FTE headcount at the end of the most recent.

About OptimizeRx

OptimizeRx provides best-in-class health technology that enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. Connecting over 2 million U.S. healthcare providers and millions of their patients through an intelligent technology platform embedded within a proprietary digital point-of-care network, as well as mass digital communication channels, OptimizeRx helps life sciences organizations engage and support their customers.

For more information, follow the Company on Twitter, LinkedIn or visit www.optimizerx.com. 

Important Cautions Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates”, “believes”, “estimates”, “expects”, “forecasts”, “intends”, “plans”, “projects”, “targets”, “designed”, “could”, “may”, “should”, “will” or other similar words and expressions are intended to identify these forward-looking statements. All statements that reflect the Company’s expectations, assumptions, projections, beliefs or opinions about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to the Company’s growth, business plans, future performance. These forward-looking statements are based on the Company’s current expectations and assumptions regarding the Company’s business, the economy, and other future conditions. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as required by applicable law. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, seasonal trends, our ability to maintain our contracts with electronic prescription platforms, competition, and other risks summarized in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, its subsequent Quarterly Reports on Form 10-Q, and its other filings with the Securities and Exchange Commission.

OptimizeRx Contact
Andy D’Silva, SVP Corporate Finance
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Investor Relations Contact
Ashley Robinson
LifeSci Advisors, LLC
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