OptimizeRx Reports First Quarter 2021 Financial Results, Revenue Up 48% on Rising Enterprise Adoption of Digital Health

• Revenue Up 48% to $11.2 million, closing on 33 enterprise contracts
• Expanded recurring revenue stream, reaching new base of customers
• Cash flow positive from operations of $1.7 million

ROCHESTER, Mich., May 06, 2021 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of digital health solutions for life science companies, physicians and patients, reported results for the three months ended March 31, 2021. Quarterly comparisons are to the same year-ago period.

Financial Highlights

• Revenue in the first quarter of 2021 increased 48% to a record $11.2 million, from $7.6 million as compared to the same year ago period.
• Gross profit in the first quarter of 2021 increased 41% to $6.1 million.
• GAAP net loss totaled $0.6 million or $(0.04) per basic and diluted share in the first quarter.
• Non-GAAP net income in the first quarter totaled $0.6 million or $0.04 per basic and $0.03 per fully diluted share respectively (see definition of this non-GAAP measure and reconciliation to GAAP, below).
• Cash and cash equivalents totaled $82.3 million as of March 31, 2021 as compared to $10.5 million as of December 31, 2020. This was a result of an equity offering in February where we raised $70.7 million.

Operational Highlights

• Secured new enterprise-level deals for 2021 that provide access to the company’s full suite of solutions and nationwide digital healthcare platform.
• Enhanced our leadership team by adding a General Counsel & Chief Compliance Officer as well as elevated the Chief Technology Officer to report directly to the CEO.
• Secured multiple new channel partnerships outside of electronic health record companies for additional reach to oncologists and other specialties.
• Committed to an inclusion and diversity pledge.
• Enhanced our patient engagement commercial team to further scale that portion of the business.
• Consolidated our technology centers of excellence in Croatia.
• Completed all integration work for previous two acquisitions and paid last earnout payment related to acquisitions.
• Maintained a no travel, virtual operational plan with a particular focus on training, open communication, and great work culture.

Management Commentary“We’ve had a strong start to the new year and are pleased with the Company’s financial and operational performance. We finished the quarter cash flow positive from operations, generating meaningful revenue growth, and closing on client renewals and new business alike,” said OptimizeRx CEO, William Febbo. “The demand for OptimizeRx’s digital health platform and services has increasingly become self-evident as we continue to invest in the business, supporting further enterprise growth well into the near and foreseeable future.

“To put this into perspective, of the 46 enterprise engagements announced at the end of 2020, we closed on 33 of these this quarter, worth $25 million in annual contract value. What is clear is that the business is highly resistant to macro shocks as the acceleration and adoption of digital health remains a long-term trend.

“In order to support this exciting growth while maintaining operational excellence, we have enhanced the Company’s infrastructure across strategic functions and leadership roles. This expansion of human capital is directly in line with the planned buildout of a vibrantly growing, highly scalable technology business across its sales, technology centers, engagement and new business development lifecycles. The result of our success is not just reflected in our financial results but have been shared in the feedback that we receive from clients and partners. We take pride in the relevance of OptimizeRx’s suite of solutions for the enhancement of stakeholder engagement and alignment to the patient journey both inside and outside of the electronic health record, and daily workflows of physicians and patients accessing our solutions.

Mr. Febbo concluded, “We have been very fortunate to be an early mover and proponent of digital health communications and care management, connecting life sciences to the full care continuum. The growth and recognition that OptimizeRx has earned in the last few years has been truly remarkable and we look forward to continuing to serve patients, healthcare providers and the life sciences while delivering significant shareholder value to our investors.”

Q12021 Financial Summary

Total revenue reported for the three months ended March 31, 2021 was approximately $11.2 million, an increase of 48% over the approximately $7.6 million from the same period in 2020. The increased revenue resulted from increases in sales in all our solutions.

Gross margin decreased to 55% from 57% in the year-ago quarter, with the decrease related to a change in solution mix.

Operating expenses totaled $6.8 million and remained relatively flat from $6.6 million in the same year-ago quarter. The moderate increase was due to the company’s efforts to expand its solutions and build out its organization for future growth.

Net loss on a GAAP basis was approximately $0.6 million or $(0.04) per basic and diluted share, as compared to a net loss of $2.2 million or $(0.15) per basic and fully diluted share in the first quarter of 2020.

Non-GAAP net income was $0.6 million or $0.04 per basic and $0.03 per fully diluted share, compared to non-GAAP net loss of $0.8 million or $(0.06) per basic and fully share in the same year-ago period (see definition of this non-GAAP measure and reconciliation to GAAP, below).

Cash and cash equivalents totaled $83 million as of March 31, 2021, as compared to $10.5 million as of December 31, 2020. This was a result of an equity offering in February where we raised $71 million.

Conference Call

OptimizeRx management will host the presentation, followed by a question-and-answer period.

Date: Thursday, May 6, 2021Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)Web access: http://public.viavid.com/index.php?id=144705 Toll-free dial-in number: 1-800-496-4039International dial-in number: 1-323-347-3281 Conference ID: 5789519

Please call the conference telephone number five minutes prior to the start time.

A replay of the call will remain available for 12 months via the Investors section of the OptimizeRx website at www.optimizerx.com/investors.

Definition and Use of Non-GAAP Financial MeasuresThis earnings release includes a presentation of non-GAAP net income (loss) and non-GAAP earnings (loss) per share or non-GAAP EPS, both of which are non-GAAP financial measures.

The company defines non-GAAP net income (loss) as GAAP net income (loss) with an adjustment to add back depreciation, amortization, stock-based compensation, acquisition expenses, income or loss related to the fair value of contingent consideration, and deferred income taxes. Non-GAAP EPS is defined as non-GAAP net income (loss) divided by the number of weighted average shares outstanding on a basic and diluted basis. 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 cashflow 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 excludes non-cash expenses allows for meaningful comparisons between the company’s core 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 own core business operating results over different periods of time.

The company’s non-GAAP net income (loss) and non-GAAP EPS 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) and non-GAAP EPS 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) and non-GAAP EPS for the three months ended March 31, 2021 and 2020.

About OptimizeRxOptimizeRx is a digital health company that provides communications solutions for life science companies, physicians and patients. Connecting over half of healthcare providers in the U.S. and millions of patients through a proprietary network, the OptimizeRx digital health platform helps patients afford and stay on medications. The platform unlocks new patient and physician touchpoints for life science companies along the patient journey, from point-of-care, to retail pharmacy, through mobile patient engagement.

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 definition of Section 27A of the Securities Act of 1933, as amended, and such as in section 21E of the Securities and Exchange Act of 1934, as amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. 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, competition, and other material risks.

OptimizeRx ContactDoug Baker, CFOTel (248) 651-6568 x807[email protected]        

Media Relations Contact Maira Alejandra, Media Relations ManagerTel (754) 245-7070 [email protected]        

Investor Relations ContactAshley RobinsonLifeSci Advisors, LLC[email protected]

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

		March 31,2021				December 31,2020
ASSETS
Current Assets
Cash and cash equivalents		$	82,278,696			$	10,516,776
Accounts receivable, net			14,738,890				17,885,705
Prepaid expenses			3,519,528				4,456,611
Total Current Assets			100,537,114				32,859,092
Property and equipment, net			142,119				148,854
Other Assets
Goodwill			14,740,031				14,740,031
Technology assets, net			5,049,334				5,251,822
Patent rights, net			2,304,923				2,349,570
Right of use assets, net			422,635				445,974
Other intangible assets, net			4,361,665				4,519,552
Security deposits and other assets			12,859				12,859
Total Other Assets			26,891,447				27,319,808
TOTAL ASSETS		$	127,570,680			$	60,327,754
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable – trade		$	499,279			$	618,250
Accrued expenses			869,791				2,420,361
Revenue share payable			3,493,805				4,969,868
Current portion of lease obligations			119,389				123,220
Current portion of contingent purchase price payable			-				1,610,813
Deferred revenue			448,140				285,795
Total Current Liabilities			5,430,404				10,028,307
Non-current Liabilities
Lease obligations, net of current portion			305,039				325,533
Total Non-current liabilities			305,039				325,533
Total Liabilities			5,735,443				10,353,840
Commitments and contingencies (See note 7)			-				-
Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding at March 31, 2021 or December 31, 2020			-				-
Common stock, $0.001 par value, 166,666,667 shares authorized, 17,260,588 and 15,223,340 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively			17,261				15,223
Additional paid-in-capital			158,087,090				85,590,428
Accumulated deficit			(36,269,114	)			(35,631,737	)
Total Stockholders’ Equity			121,835,237				49,973,914
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	127,570,680			$	60,327,754

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

		For the Three MonthsEnded March 31,
		2021				2020
TOTAL REVENUE		$	11,229,211			$	7,584,602
COST OF REVENUES			5,104,603				3,241,763
GROSS MARGIN			6,124,608				4,342,839
OPERATING EXPENSES			6,762,916				6,602,091
LOSS FROM OPERATIONS			(638,308	)			(2,259,252	)
OTHER INCOME
Interest Income			931				55,321
TOTAL OTHER INCOME			931				55,321
LOSS BEFORE PROVISION FOR INCOME TAXES			(637,377	)			(2,203,931	)
PROVISION FOR INCOME TAXES			-				-
NET LOSS		$	(637,377	)		$	(2,203,931	)
WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC			16,101,837				14,609,499
DILUTED			16,101,837				14,609,499
NET LOSS PER SHARE
BASIC		$	(0.04	)		$	(0.15	)
DILUTED		$	(0.04	)		$	(0.15	)

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)

		For the Three Months Ended March 31,
		2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(637,377	)		$	(2,203,931	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, amortization and non-cash lease expense			526,180				519,669
Stock-based compensation			582,159				754,512
Stock issued for board service			124,994				100,000
Provision for loss on accounts receivable			20,000				-
Changes in:
Accounts receivable			3,126,815				(1,643,495	)
Prepaid expenses and other assets			937,083				(2,099,448	)
Accounts payable			(118,971	)			55,105
Revenue share payable			(1,476,063	)			1,021,811	)
Accrued expenses and other liabilities			(1,581,415	)			(154,473	)
Deferred revenue			162,345				(88,576	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES			1,665,750				(3,738,826	)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of intangible assets			(64,693	)
Purchase of equipment			(19,871	)			(15,937	)
NET CASH USED IN INVESTING ACTIVITIES			(84,564	)			(15,937	)
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Proceeds from public offering of common stock, net of offering costs			70,671,536				-
Proceeds from exercise of stock options			1,120,011				112,152
Payment of contingent consideration			(1,610,813	)			-
NET CASH PROVIDED BY FINANCING ACTIVITIES			70,180,734				112,152
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			71,761,920				(3,642,611	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			10,516,776				18,852,680
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	82,278,696			$	15,210,069
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest		$	-			$	-
Cash paid for income taxes		$	-			$	-
Lease liabilities arising from right of use assets		$	-			$	-

OPTIMIZERx CORPORATIONRECONCILIATION of NON-GAAP to GAAP FINANCIAL MEASURES(UNAUDITED)

	For the Three Months Ended March 31,
		2021				2020
Net loss	$	(637,377	)		$	(2,203,931	)
Depreciation and amortization		526,180				519,669
Stock-based compensation		707,153				854,512
Non-GAAP net income (loss)	$	595,956			$	(829,750	)
Non-GAAP net income (loss) per share
Basic	$	0.04			$	(0.06	)
Diluted	$	0.03			$	(0.06	)
Weighted average shares outstanding:
Basic		16,101,837				14,609,499
Diluted		17,085,582				14,609,499

Source: OptimizeRx Corporation

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Benchmark on Take-Two's (TTWO) GTV 6 Release: 'we anticipate that the game will not be released within the fiscal year and expect it to launch in fiscal 2026 instead'
• Lowey Dannenberg Notifies Luna Innovations Incorporated (“Luna Innovations” or “the Company”) (NASDAQ: LUNA) Investors of Securities Class Action Lawsuit and Encourages Investors with more tha
• Prysmian SpA (PRY:IM) (PRYMY) PT Raised to EUR53 at HSBC