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
- Revenue in the first quarter of 2021 increased 48% to a record
$11.2 million, from $7.6 millionas compared to the same year ago period.
- Gross profit in the first quarter of 2021 increased 41% to
- GAAP net loss totaled
$0.6 millionor $(0.04)per basic and diluted share in the first quarter.
- Non-GAAP net income in the first quarter totaled
$0.6 millionor $0.04per basic and $0.03per fully diluted share respectively (see definition of this non-GAAP measure and reconciliation to GAAP, below).
- Cash and cash equivalents totaled
$82.3 millionas of March 31, 2021as compared to $10.5 millionas of December 31, 2020. This was a result of an equity offering in February where we raised $70.7 million.
- 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
- 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.
“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
“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
“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.
Q12021 Financial Summary
Total revenue reported for the three months ended
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
Net loss on a GAAP basis was approximately
Non-GAAP net income was
Cash and cash equivalents totaled
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Definition and Use of Non-GAAP Financial Measures
This 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
OptimizeRx 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.
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CONDENSED CONSOLIDATED BALANCE SHEETS
|Cash and cash equivalents||$||82,278,696||$||10,516,776|
|Accounts receivable, net||14,738,890||17,885,705|
|Total Current Assets||100,537,114||32,859,092|
|Property and equipment, net||142,119||148,854|
|Technology assets, net||5,049,334||5,251,822|
|Patent rights, net||2,304,923||2,349,570|
|Right of use assets, net||422,635||445,974|
|Other intangible assets, net||4,361,665||4,519,552|
|Security deposits and other assets||12,859||12,859|
|Total Other Assets||26,891,447||27,319,808|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable – trade||$||499,279||$||618,250|
|Revenue share payable||3,493,805||4,969,868|
|Current portion of lease obligations||119,389||123,220|
|Current portion of contingent purchase price payable||-||1,610,813|
|Total Current Liabilities||5,430,404||10,028,307|
|Lease obligations, net of current portion||305,039||325,533|
|Total Non-current liabilities||305,039||325,533|
|Commitments and contingencies (See note 7)||-||-|
|Total Stockholders’ Equity||121,835,237||49,973,914|
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY||$||127,570,680||$||60,327,754|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|For the Three Months
|COST OF REVENUES||5,104,603||3,241,763|
|LOSS FROM OPERATIONS||(638,308||)||(2,259,252||)|
|TOTAL OTHER INCOME||931||55,321|
|LOSS BEFORE PROVISION FOR INCOME TAXES||(637,377||)||(2,203,931||)|
|PROVISION FOR INCOME TAXES||-||-|
|WEIGHTED AVERAGE SHARES OUTSTANDING|
|NET LOSS PER SHARE|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|For the Three Months
|CASH FLOWS FROM OPERATING ACTIVITIES:|
|Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:|
|Depreciation, amortization and non-cash lease expense||526,180||519,669|
|Stock issued for board service||124,994||100,000|
|Provision for loss on accounts receivable||20,000||-|
|Prepaid expenses and other assets||937,083||(2,099,448||)|
|Revenue share payable||(1,476,063||)||1,021,811||)|
|Accrued expenses and other liabilities||(1,581,415||)||(154,473||)|
|NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES||1,665,750||(3,738,826||)|
|CASH FLOWS USED IN INVESTING ACTIVITIES:|
|Purchase of intangible assets||(64,693||)|
|Purchase of equipment||(19,871||)||(15,937||)|
|CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:|
|Proceeds from public offering of common stock, net of offering costs||70,671,536||-|
|Proceeds from exercise of stock options||1,120,011||112,152|
|Payment of contingent consideration||(1,610,813||)||-|
|NET CASH PROVIDED BY FINANCING ACTIVITIES||70,180,734||112,152|
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS||71,761,920||(3,642,611||)|
|CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD||10,516,776||18,852,680|
|CASH AND CASH EQUIVALENTS - END OF PERIOD||$||82,278,696||$||15,210,069|
|SUPPLEMENTAL CASH FLOW INFORMATION:|
|Cash paid for interest||$||-||$||-|
|Cash paid for income taxes||$||-||$||-|
|Lease liabilities arising from right of use assets||$||-||$||-|
RECONCILIATION of NON-GAAP to GAAP FINANCIAL MEASURES
|For the Three Months
Ended March 31,
|Depreciation and amortization||526,180||519,669|
|Non-GAAP net income (loss)||$||595,956||$||(829,750||)|
|Non-GAAP net income (loss) per share|
|Weighted average shares outstanding:|
Source: OptimizeRx Corporation