OptimizeRx Reports First Quarter 2022 Financial Results, Revenue Up 22%, Successfully Completes EvinceMed Acquisition
- Revenue Up 22% to
$13.7 million on increased average revenue per top 20 pharmaceutical manufacturer client - Traction with top 20 pharmaceutical manufacturers continues to advance and drive growth
- Cash flow positive from operations of
$4.1 million
| TTM |
|||||||
| Key Performance Indicators (KPIs)* | 2022 | 2021 | |||||
| Average revenue per top 20 pharmaceutical manufacturers | |||||||
| Percent of top 20 pharmaceutical manufacturers that are clients | 95% | 85% | |||||
| Top 20 pharmaceutical manufacturers as percent of total net revenues | 76% | 77% | |||||
| Net revenue retention | 124% | 161% | |||||
| Revenue per average full-time employee (FTE) | |||||||
Financial Highlights
- Revenue in the first quarter of 2022 increased 22% to a record
$13.7 million , from$11.2 million as compared to the same year ago period. - Gross profit in the first quarter of 2022 increased 32% year-over-year to
$8.1 million . - GAAP net loss totaled
$3.8 million or$(0.21) per basic and diluted share in the first quarter. - Non-GAAP net loss in the first quarter totaled
$0.1 million or$(0.01) per basic and fully diluted shares outstanding. (see definition of this non-GAAP measure and reconciliation to GAAP, below). - Cash and cash equivalents totaled
$89.0 million as ofMarch 31, 2022 as compared to$84.7 million as ofDecember 31, 2021 .
Year To Date Highlights
- Completed the acquisition of EvinceMed, a specialty drug prescription initiation platform.
- Ranked as one of The
Americas' fastest-growing companies by theFinancial Times for the third consecutive year - Announced the deployment of OptimizeRx’s digital access solution to address and streamline patient therapy initiation challenges for a top 10 pharmaceutical manufacturer.
- Published the Company’s first Environmental, Social and Governance (ESG) report
Mike Rousselle , OptimizeRx’s vice president of data product, named to MM+M’s “40 Under 40 List”- OptimizeRx’s AI-Driven Therapy Initiation and Persistence Platform won Business Intelligence’s 2022 BIG Innovation Award.
Management Commentary
“We are also delighted to note the completion of the EvinceMed acquisition, which helps further our industry-leading position and ultimately serves to expand us within key markets, including specialty medications. The acquisition expands the reach of our point-of-care solutions by simplifying the prescribing process of specialty medications and enabling greater access for patients across the nation’s largest digital HCP network.” concluded
Q1 2022 Financial Summary
Total revenue reported for the three months ended
Gross margin increased to 59% from 55% in the year-ago quarter, with the increase related to a more favorable channel partner and solution mix.
Operating expenses totaled
Net loss on a GAAP basis was approximately
Non-GAAP net loss was
Cash and cash equivalents totaled
2022 Financial Outlook
The Company is reaffirming its full year financial outlook for 2022 and continues to expect net revenues of
The Company expects revenue growth will align closely with continued progress on the KPIs highlighted above and will be driven by its “land and expand” strategy of obtaining new customers and growing its existing clients’ spend by increasing the number of solutions each brand leverages, the number of brands supported, and overall utilization of its platform.
Conference Call
Date:
Time:
Web access: https://event.choruscall.com/mediaframe/webcast.html?webcastid=mJzKX2F9
Toll-free dial-in number: 1-877-423-9813
International dial-in number: 1-201-689-8573
Conference ID: 13729156
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
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
Definition of Key Performance Indicators*
Top 20 pharmaceutical manufacturers: Top 20 pharmaceutical manufacturers are based on Fierce Pharma’s “The top 20 pharma companies by 2020 revenue.”
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
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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 and 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, competition, and other risks summarized in the Company’s Annual Report on Form 10-K for the fiscal year ended
OptimizeRx Contact
Andy D’Silva, SVP Corporate Finance
adsilva@optimizerx.com
Media Relations Contact
malejandra@optimizerx.com
Investor Relations Contact
arr@lifesciadvisors.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 88,954,391 | $ | 84,681,770 | ||||
| Accounts receivable, net | 19,135,824 | 24,800,585 | ||||||
| Prepaid expenses and other | 4,609,489 | 5,630,655 | ||||||
| Total Current Assets | 112,699,704 | 115,113,010 | ||||||
| Property and equipment, net | 137,441 | 143,818 | ||||||
| Other Assets | ||||||||
| 14,740,031 | 14,740,031 | |||||||
| Intangible assets, net | 10,548,884 | 10,975,474 | ||||||
| Security deposits and other assets | 12,859 | 12,859 | ||||||
| Total Other Assets | 25,301,774 | 25,728,364 | ||||||
| TOTAL ASSETS | $ | 138,138,919 | $ | 140,985,192 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable – trade | $ | 600,729 | $ | 606,808 | ||||
| Accrued expenses | 1,718,055 | 2,902,836 | ||||||
| Revenue share payable | 3,175,719 | 4,378,216 | ||||||
| Current portion of lease obligations | 87,581 | 90,982 | ||||||
| Current portion of contingent purchase price payable | - | - | ||||||
| Deferred revenue | 1,293,044 | 1,389,907 | ||||||
| Total Current Liabilities | 6,875,128 | 9,368,749 | ||||||
| Non-Current Liabilities | ||||||||
| Lease liabilities, net of current portion | 212,946 | 236,726 | ||||||
| Total Liabilities | 7,088,074 | 9,605,475 | ||||||
| Commitments and contingencies (See note 8) | - | - | ||||||
| Stockholders’ Equity | ||||||||
| Preferred stock, |
- | - | ||||||
| Common stock, |
17,903 | 17,861 | ||||||
| Additional paid-in-capital | 170,047,698 | 166,615,514 | ||||||
| Accumulated deficit | (39,014,756 | ) | (35,253,658 | ) | ||||
| Total Stockholders’ Equity | 131,050,845 | 131,379,717 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 138,138,919 | $ | 140,985,192 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended |
||||||||
| 2022 | 2021 | |||||||
| Revenue | $ | 13,731,530 | $ | 11,229,211 | ||||
| Cost of revenues | 5,629,858 | 5,104,603 | ||||||
| Gross margin | 8,101,672 | 6,124,609 | ||||||
| Operating expenses | ||||||||
| Salaries, Wages, & Benefits | 5,305,866 | 3,580,817 | ||||||
| Stock-based compensation | 3,174,098 | 707,153 | ||||||
| Other general and administrative expenses | 3,382,809 | 2,474,946 | ||||||
| Total operating expenses | 11,862,773 | 6,762,916 | ||||||
| Loss from operations | (3,761,101 | ) | (638,308 | ) | ||||
| Other income | ||||||||
| Interest income | 3 | 931 | ||||||
| Loss before provision for income taxes | (3,761,098 | ) | (637,377 | ) | ||||
| Income tax benefit | - | - | ||||||
| Net Loss | $ | (3,761,098 | ) | $ | (637,377 | ) | ||
| Weighted average number of shares outstanding – basic | 17,878,068 | 16,101,837 | ||||||
| Weighted average number of shares outstanding – diluted | 17,878,068 | 16,101,837 | ||||||
| Income (loss) per share – basic | $ | (0.21 | ) | $ | (0.04 | ) | ||
| Income (loss) per share – diluted | $ | (0.21 | ) | $ | (0.04 | ) | ||
The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Three Months Ended |
||||||||
| 2022 | 2021 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (3,761,098 | ) | $ | (637,377 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 471,539 | 496,321 | ||||||
| Stock-based compensation | 3,174,098 | 582,159 | ||||||
| Stock issued for board service | - | 124,994 | ||||||
| Provision for loss on accounts receivable | 21,000 | 20,000 | ||||||
| Changes in: | ||||||||
| Accounts receivable | 5,643,761 | 3,126,815 | ||||||
| Prepaid expenses and other assets | 1,021,166 | 937,083 | ||||||
| Accounts payable | (6,079 | ) | (118,971 | ) | ||||
| Revenue share payable | (1,202,497 | ) | (1,476,063 | ) | ||||
| Accrued expenses and other liabilities | (1,184,781 | ) | (1,550,569 | ) | ||||
| Operating leases, net | (2 | ) | (987 | ) | ||||
| Deferred revenue | (96,863 | ) | 162,345 | |||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,080,244 | 1,665,750 | ||||||
| CASH FLOWS USED IN INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (14,480 | ) | (19,871 | ) | ||||
| Purchase of intangible assets, including intellectual property rights | (51,271 | ) | (64,693 | ) | ||||
| (65,751 | ) | (84,564 | ) | |||||
| 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 | 258,128 | 1,120,011 | ||||||
| Payment of contingent consideration | - | (1,610,813 | ) | |||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 258,128 | 70,180,734 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,272,621 | 71,761,920 | ||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 84,681,770 | 10,516,776 | ||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 88,954,391 | $ | 82,278,696 | ||||
| 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.
RECONCILIATION of NON-GAAP to GAAP FINANCIAL MEASURES
(UNAUDITED)
| For the Three Months Ended March 31, |
||||||||
| 2022 | 2021 | |||||||
| Net loss | $ | (3,761,098 | ) | $ | (637,377 | ) | ||
| Depreciation and amortization | 471,539 | 496,321 | ||||||
| Stock-based compensation | 3,174,098 | 707,153 | ||||||
| Acquisition expense | 17,160 | - | ||||||
| Non-GAAP net income (loss) | $ | (98,301 | ) | $ | 566,097 | |||
| Non-GAAP net income (loss) per share | ||||||||
| Basic | $ | (0.01 | ) | $ | 0.04 | |||
| Diluted | $ | (0.01 | ) | $ | 0.03 | |||
| Weighted average shares outstanding: | ||||||||
| Basic | 17,878,068 | 16,101,837 | ||||||
| Diluted | 17,878,068 | 17,085,582 | ||||||
Source: OptimizeRx Corporation