OptimizeRx Reports First Quarter 2018 Results; Q1 Net Revenue Up 91% to Record $4.1 Million
Q1 2018 Highlights
- Net revenue increased 91% to a record
$4.1 million . - Gross margin improved from 35.8% to 51.2%.
- Operating expense as a percentage of net revenue reduced from 77% to 56%.
- Acquired new pharmaceutical manufacturer brands for OptimizeRx’s core offerings of financial and brand messaging that are distributed through the company’s expanding network of EHR channel partners.
- Appointed two new independent directors,
Patrick Spangler andBryan Archambault , and established an audit committee to continue to improve corporate governance.
Q1 2018 Financial Summary
Net revenue in the first quarter of 2018 increased 91% to a record
Gross margin improved to 51.2% in the first quarter of 2018 from 35.8% in the year-ago quarter. The improvement was due primarily to brand messaging products costs which decreased as a percentage of sales throughout 2017 as brand messaging volume increased. The company is focused on improving margins, targeting gross margin of at least 55% by the fourth quarter of 2018.
Operating expenses in the first quarter of 2018 were
Net loss for the first quarter of 2018 was
Cash and cash equivalents totaled
Management Commentary
“In Q1, we achieved our sixth consecutive quarter of revenue growth as our topline increased 91%,” said
“The big jump in gross margin to 51.2% was primarily due to increased brand messaging revenues which has a large fixed-cost component, and we expect to maintain if not expand gross margin throughout the year.
“Q1 also demonstrated the substantial leverage in our operating model in how it supports greater market reach and revenue growth without lockstep increases in operating cost. This means, as we grow, we expect our operating expense as a percentage of revenue to continue to decrease as our cashflow from operations strengthens.
“Through to the end of the year, we expect our actual operating expenses to continue at the Q1 2018 level or perhaps only slightly above, as we further implement our business plan and expand our operations to grow the business in a very dynamic and active marketplace.
“This effort will be supported by our strengthened ability to acquire, integrate and expand into new EHR, eRx and other platforms. In fact, in Q1 we launched with two EHRs and signed for the first time a clinical decision support tool used in both ambulatory and hospital settings. As a result, we have more master service agreements now more than ever, and we anticipate revenue from these channels to accelerate in 2018.
“We’ve received the approval of our board for a reverse stock split in order to meet the minimum price requirement for NASDAQ. It will be a one-for-three, and we expect to uplist within the next couple of months. We believe a NASDAQ listing will help broaden our shareholder base by increasing our appeal to both retail and institutional investors. We also expect it to provide investors with greater liquidity and ultimately increase shareholder value.
“Driven by the launch of additional channels, brands and products, as well as the ongoing growth in our nationwide EHR network, we expect continued revenue growth in 2018. While we are focused on the top-line, we are also carefully managing our expenses. Together, we believe this will keep us on track to achieving profitability on quarterly basis by the end of the year.”
Conference Call
Date:
Time:
Toll-free dial-in number: 1-800-263-0877
International dial-in number: 1-323-794-2094
Conference ID: 4411468
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About
OptimizeRx® (OTCQB:OPRX) is the nation’s leading provider of digital health messaging via electronic health records (EHRs), providing a direct channel for pharma companies to communicate with healthcare providers. The company’s cloud-based solution supports patient adherence to medications by providing real-time access to financial assistance, education, and critical clinical information. The company’s network is comprised of leading EHR platforms like Allscripts, Amazing Charts and Quest, and provides more than half of the ambulatory market access to these benefits within their workflow at the point of care. 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 section 21E of the Securities Act of 1934, 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 CORPORATION | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| AS OF MARCH 31, 2018 AND DECEMBER 31, 2017 | ||||||||
| March 31, 2018 |
December 31, 2017 |
|||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 4,298,619 | $ | 5,122,573 | ||||
| Accounts receivable | 1,871,255 | 2,257,276 | ||||||
| Accounts receivable – related party | 1,974,143 | 1,173,614 | ||||||
| Prepaid expenses | 191,413 | 255,428 | ||||||
| Total Current Assets | 8,335,430 | 8,808,891 | ||||||
| Property and equipment, net | 157,608 | 167,305 | ||||||
| Other Assets | ||||||||
| Patent rights, net | 621,793 | 638,766 | ||||||
| Web development costs, net | 152,493 | 143,730 | ||||||
| Security deposit | 5,049 | 5,049 | ||||||
| Total Other Assets | 779,335 | 787,545 | ||||||
| TOTAL ASSETS | $ | 9,272,373 | $ | 9,763,741 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable – trade | $ | 133,870 | $ | 457,289 | ||||
| Accrued expenses | 549,656 | 953,947 | ||||||
| Revenue share payable | 898,478 | 1,177,136 | ||||||
| Revenue share payable – related party | - | 447,670 | ||||||
| Deferred revenue | 856,914 | 507,160 | ||||||
| Total Liabilities | 2,438,918 | 3,543,202 | ||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued and outstanding at March 31, 2018 or December 31, 2017 |
- | |||||||
| Common stock, $0.001 par value, 500,000,000 shares authorized, 29,636,831 and 29,318,081 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively |
29,637 | 29,318 | ||||||
| Stock warrants | 1,286,424 | 1,286,424 | ||||||
| Additional paid-in-capital | 36,211,722 | 35,267,919 | ||||||
| Accumulated deficit | (30,694,328 | ) | (30,363,122 | ) | ||||
| Total Stockholders’ Equity | 6,833,455 | 6,220,539 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 9,272,373 | $ | 9,763,741 | ||||
| OPTIMIZERx CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 | ||||||||
| For the Three Months Ended March 31, |
||||||||
| 2018 | 2017 | |||||||
| NET REVENUE | ||||||||
| Revenue | $ | 2,781,621 | $ | 1,400,318 | ||||
| Revenue – Related Party | 1,330,616 | 751,755 | ||||||
| TOTAL NET REVENUE | 4,112,237 | 2,152,073 | ||||||
| REVENUE SHARE EXPENSE | 2,008,092 | 1,381,733 | ||||||
| GROSS MARGIN | 2,104,145 | 770,340 | ||||||
| OPERATING EXPENSES | 2,295,341 | 1,660,778 | ||||||
| LOSS FROM OPERATIONS | (191,196 | ) | (890,438 | ) | ||||
| OTHER INCOME (EXPENSE) | ||||||||
| Interest Income | 2,017 | 7,756 | ||||||
| Interest Expense | - | |||||||
| TOTAL OTHER INCOME (EXPENSE) | 2,017 | 7,756 | ||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | (189,179 | ) | (882,682 | ) | ||||
| PROVISION FOR INCOME TAXES | - | |||||||
| NET LOSS | $ | (189,179 | ) | $ | (882,682 | ) | ||
| WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||
| BASIC AND DILUTED | 29,358,081 | 29,718,867 | ||||||
| NET LOSS PER SHARE | ||||||||
| BASIC AND DILUTED | $ | (0.01 | ) | $ | (0.03 | ) | ||
| OPTIMIZERx CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2018 AND 2017 | ||||||||
| For the Three Months Ended March 31, |
||||||||
| 2018 | 2017 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss for the period | $ | (189,179 | ) | $ | (882,682 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
| Depreciation and amortization | 54,473 | 70,973 | ||||||
| Stock and options issued for services | 497,122 | 129,444 | ||||||
| Changes in: | ||||||||
| Accounts receivable | (414,508 | ) | 253,074 | |||||
| Prepaid expenses | 64,015 | (67,761 | ) | |||||
| Accounts payable | (323,419 | ) | 161,228 | |||||
| Revenue share payable | (279,328 | ) | (673,730 | ) | ||||
| Accrued expenses | (404,291 | ) | (230,975 | ) | ||||
| Deferred revenue | 207,727 | 943,193 | ||||||
| NET CASH USED IN OPERATING ACTIVITIES | (787,388 | ) | (297,236 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Equipment | (3,803 | ) | (16,146 | ) | ||||
| Development costs | (32,763 | ) | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (36,566 | ) | (16,146 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| NET CASH USED IN FINANCING ACTIVITIES | ||||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (823,954 | ) | (313,382 | ) | ||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 5,122,573 | 7,034,647 | ||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 4,298,619 | $ | 6,721,265 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for interest | $ | - | $ | - | ||||
| Cash paid for income taxes | $ | $ | ||||||
| Non-cash issuance of shares to WPP | $ | 447,000 | $ | |||||
OptimizeRx Contact:
Tel (248) 651-6568 x807
dbaker@optimizerx.com
OptimizeRx Investor Relations:
Tel (949) 432-7557
Email contact
Source: OptimizeRx Corporation