OptimizeRx Reports Second Quarter 2021 Financial Results, Revenue Up 55% as Leading Pharma Brands Aggressively Seek Improved ROI Through Technology Adoption

August 4, 2021 4:01 PM EDT

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- Revenue Up 55% to $13.6 million, closing on 19 enterprise contracts- Enterprise deals pipeline grows from 46 to 63 - Brands adopting OptimizeRx solutions increases to 140 from 80 in the past 6 months- Successful implementation of evidence-based provider engagement programs, driven by real-world evidence (“RWE”), anchored by sales from 2 leading brands - Cash flow positive from operations of $1.9 million in the first half of fiscal 2021

ROCHESTER, Mich., Aug. 04, 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 June 30, 2021. Quarterly comparisons are to the same year-ago period.

Financial Highlights

  • Revenue in the second quarter of 2021 increased 55% to a record $13.6 million, from $8.8 million as compared to the same year-ago period.
  • Gross profit in the second quarter of 2021 increased 56% to $8.0 million.
  • Gross profit margin in the second quarter of 2021 increased to 59% from 58.6%.
  • GAAP net income totaled $0.4 million or $0.02 per basic and diluted share in the second quarter as compared to a net loss of $1.1 million or $0.07 per basic and fully diluted share in the year ago period.
  • Non-GAAP net income in the second quarter totaled $1.8 million or $0.10 per basic and fully diluted share respectively (see definition of this non-GAAP measure and reconciliation to GAAP, below). Cash and cash equivalents totaled $83.9 million as of June 30, 2021 as compared to $82.3 million as of March 31, 2020.

Operational Highlights

  • Successful implementation of evidence-based provider engagement programs, driven by real-world evidence (“RWE”), anchored by sales from 2 leading brands
    • Including agreement with a top 5 pharmaceutical manufacturer in solving lapse in medical coverage barrier for patients
  • Announced several new health information technology (HIT) partnerships to further connect the digital channels used by healthcare professionals (HCPs) within the care setting, expanding reach to over 50% of oncologists.

Management Commentary

“As a pioneering leader in digital health technology, we are delighted to report another record quarter of strong revenue growth, preceding what is expected to be a remarkable year for OptimizeRx. We could not be more pleased with the continuous adoption of our technology platform by leading brands while also closing on 19 enterprise deals in our sales pipeline for the quarter. Total enterprise deals since last quarter have also grown to 63 deals in pipeline from 46 with an average ACV of $1.1 million. We also continue to support pharma’s engagement across fast-growing specialty areas which has doubled to more than 50% from last year,” said OptimizeRx CEO, Will Febbo.

“We have successfully implemented evidence-based provider engagement programs using the innovative RWE platform enhancement we launched at the end of 2020. We are both humbled and proud of the connectivity that OptimizeRx’s digital health and communications platform has generated between the stakeholders that we serve, consisting of healthcare providers, patients and drug manufacturers,” continued Mr. Febbo. “With a focus on providing digital connectivity at point-of-care, our wide network reach and unique platform strategies are working seamlessly to raise awareness among providers about treatments and life sciences support. In doing so we are also helping patients to better afford and adhere to treatment regiments, by offering innovative, effective ways for life sciences to remain actively engaged throughout the patient care journey.”

“Additionally, our clients are benefitting and are seeing an average ROI of 8:1 with some as high as 20:1. The power of third-party measurement has been a key differentiator and is allowing us to accurately measure the value we deliver to our clients. As evidence of this, we have seen the number of brands adopting our technology jump from 80 to 140 in the last 6 months,” concluded Mr. Febbo.

Q2’2021 Financial SummaryTotal revenue reported for the three months ended June 30, 2021 was approximately $13.6 million, an increase of over 55% over the approximately $8.8 million from the same period in 2020. The increased revenue resulted from increases in sales in all our solutions.

Gross margin was 59%, which increased slightly from the year-ago quarter. Gross margin is expected to improve on a quarter over quarter basis for the balance of the year as our RWE solution expands and we continue to launch new solutions that have higher margins.

Operating expenses increased to $7.7 million as compared to $6.2 million in the same year-ago quarter. The increase was due to the Company’s efforts to expand its solutions and build out its organization for future growth.

Net Income on a GAAP basis was approximately $0.4 million or $0.02 per basic and diluted share, as compared to a net loss of $1.1 million or $(0.07) per basic and fully diluted share in the second quarter of 2020.

Non-GAAP net income was $1.8 million or $0.10 per basic and $0.10 per fully diluted share, compared to non-GAAP net income of $0.3 million or $0.02 per basic and fully diluted share in the same year-ago period (see definition of this non-GAAP measure and reconciliation to GAAP, below).

Cash and cash equivalents totaled $83.9 million as of June 30, 2021, as compared to $82.3 million as of March 31, 2020.

Conference Call

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

Date: Wednesday, August 4, 2021Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)Web access: http://public.viavid.com/index.php?id=146009Toll-free dial-in number: 1-800-430-8332International dial-in number: 1-323-289-6576   Conference ID: 2901587

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 TwitterLinkedIn 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 x807dbaker@optimizerx.com        

Media Relations Contact Maira Alejandra, Media Relations ManagerTel (754) 245-7070 malejandra@optimizerx.com        

Investor Relations ContactAshley RobinsonLifeSci Advisors, LLCarr@lifesciadvisors.com

 
 
OPTIMIZERX CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
  June 30, 2021  December 31, 2020 
       
ASSETS      
Current Assets        
Cash and cash equivalents $83,923,455  $10,516,776 
Accounts receivable, net  17,933,926   17,885,705 
Prepaid expenses  3,124,479   4,456,611 
Total Current Assets  104,981,860   32,859,092 
Property and equipment, net  137,813   148,854 
Other Assets        
Goodwill  14,740,031   14,740,031 
Technology assets, net  4,896,016   5,251,822 
Patent rights, net  2,258,542   2,349,570 
Other intangible assets, net  4,203,777   4,519,552 
Right of use assets, net  392,482   445,974 
Other assets and deposits  12,859   12,859 
Total Other Assets  26,503,707   27,319,808 
TOTAL ASSETS $131,623,380  $60,327,754 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current Liabilities        
Accounts payable – trade $805,461  $618,250 
Accrued expenses  2,088,651   2,420,361 
Revenue share payable  3,341,312   4,969,868 
Current portion of lease obligations  110,271   123,220 
Current portion of contingent purchase price payable      1,610,813 
Deferred revenue  319,609   285,795 
Total Current Liabilities  6,665,304   10,028,307 
Non-current Liabilities        
Lease obligations, net of current portion  282,934   325,533 
Total Non-current Liabilities  282,934   325,533 
Total Liabilities  6,948,238   10,353,840 
Commitments and contingencies (See Note 8)  -   - 
Stockholders’ Equity        
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued and        
outstanding at June 30, 2021 or December 31, 2020  -   - 
Common stock, $0.001 par value, 500,000,000 shares authorized, 17,495,429 and        
15,223,340 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively  17,495   15,223 
Additional paid-in-capital  160,574,661   85,590,428 
Accumulated deficit  (35,917,014)  (35,631,737)
Total Stockholders’ Equity  124,675,142   49,973,914 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $131,623,380  $60,327,754 
         
The accompanying notes are an integral part of these condensed consolidated financial statements.
 

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
       
  For the Three Months Ended  For the Six Months Ended 
  June 30,  June 30, 
  2021  2020  2021  2020 
             
NET REVENUE $13,625,639  $8,783,230  $24,854,850  $16,367,832 
COST OF REVENUES  5,580,964   3,639,016   10,685,567   6,880,779 
GROSS MARGIN  8,044,675   5,144,214   14,169,283   9,487,053 
                 
OPERATING EXPENSES  7,704,536   6,200,027   14,467,452   12,802,118 
INCOME (LOSS) FROM OPERATIONS  340,139   (1,055,813)  (298,169)  (3,315,065)
                 
OTHER INCOME (EXPENSE)                
Interest income  11,961   8,345   12,892   63,666 
Change in Fair Value of Contingent Consideration      (30,000)  -   (30,000)
                 
TOTAL OTHER INCOME (EXPENSE)  11,961   (21,655)  12,892   33,666 
                 
INCOME(LOSS)  BEFORE PROVISION FOR INCOME TAXES  352,100   (1,077,468)  (285,277)  (3,281,399)
                 
PROVISION FOR INCOME TAXES  -   -   -   - 
NET INCOME (LOSS) $352,100  $(1,077,468) $(285,277) $(3,281,399)
                 
WEIGHTED AVERGE SHARES OUTSTANDING                
BASIC  17,347,096   14,667,216   16,720,114   14,638,359 
DILUTED  18,104,807   14,667,216   16,720,114   14,638,359 
                 
EARNINGS (LOSS) PER SHARE                
BASIC $0.02  $(0.07) $(0.02) $(0.22)
DILUTED $0.02  $(0.07) $(0.02) $(0.22)
                 
The accompanying notes are an integral part of these condensed consolidated financial statements.
 

    

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)
 
  For the Six Months Ended June 30, 
  2021  2020 
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net Loss $(285,277) $(3,281,399)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation, amortization, and non-cash lease expense  1,054,138   1,040,463 
Stock-based compensation  1,354,106   1,435,156 
Stock issued for board services  250,085   200,027 
Provision for loss on accounts receivable  40,000   40,000 
Change in fair value of contingent consideration      30,000 
Changes in:        
Accounts receivable  (88,221)  (3.427,166)
Prepaid expenses and other assets  1,332,132   (1,785,422)
Accounts payable  187,211   3,747 
Revenue share payable  (1,628,556)  1,878,051 
Accrued expenses and other liabilities  (393,778)  186,682 
Deferred revenue  33,814   68,678 
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  1,855,654   (3,611,183)
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Purchase of equipment  (43,654)  (24,998)
Purchase of intangible assets  (176,822)  - 
NET CASH USED IN INVESTING ACTIVITIES  (220,476)  (24,998)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Proceeds from public offering of common stock, net of commission costs  70,671,536     
Proceeds from the exercise of options  2,710,778   286,983 
Payment of contingent consideration  (1,610,813)  (1,389,188)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES  71,771,501   (1,102,205)
NET INCREASE IN CASH AND CASH EQUIVALENTS  73,406,679   (4,738,386)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD  10,516,776   18,852,680 
CASH AND CASH EQUIVALENTS - END OF PERIOD $83,923,455  $14,114,294 
         
SUPPLEMENTAL CASH FLOW INFORMATION:        
Cash paid for interest $-  $- 
Cash paid for income taxes $-  $- 
Lease liabilities arising from right of use assets $-  $- 
         
The accompanying notes are an integral part of these condensed consolidated financial statements.  
  

OPTIMIZERx CORPORATIONReconciliation of non-GAAP to GAAP Financial Measures(Unaudited)
        
 For the Three Months For the Six Months
 Ended June 30, Ended June 30,
  2021  2020   2021   2020 
Net Income (loss) 352,100  (1,077,468)  (285,277)  (3,281,399)
               
Depreciation and amortization 527,696  520,794   1,054,138   1,040,463 
               
Stock-based compensation 897,038  780,670   1,604,191   1,635,182 
               
Income or loss related to the fair value of contingent consideration -  30,000   -   - 
               
Non-GAAP net income (loss) 1,776,834  253,996   2,373,052   (605,754)
        
Non-GAAP net income (loss) per share       
Basic$0.10 $0.02  $0.14  $(0.04)
Diluted$0.10 $0.02  $0.14  $(0.04)
        
Weighted average shares outstanding:       
Basic 17,347,096  14,667,216   16,720,114   14,638,359 
Diluted 18,104,807  15,573,257   17,467,159   14,638,359 

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Source: OptimizeRx Corporation


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