News Releases

OptimizeRx Reports First Quarter 2023 Financial Results

May 10, 2023 at 4:01 PM EDT
  • Total revenue of $13.0 million
  • GAAP net loss per share of $(0.37)
  • Non-GAAP net loss per share of $(0.09)

ROCHESTER, Mich., May 10, 2023 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of point-of-care technology solutions helping patients start and stay on therapy, reported results for the three months ended March 31, 2023. Quarterly comparisons are to the same year-ago period.

Financial Highlights

  • Revenue in the first quarter of 2023 decreased 5% to $13.0 million, as compared to $13.7 million in the same year ago period.
  • Gross profit in the first quarter of 2023 decreased 8% year-over-year to $7.4 million, from $8.1 million during the first quarter of 2022.
  • GAAP net loss totaled $(6.4) million or $(0.37) per basic and diluted shares outstanding in the first quarter, as compared to $(3.8) million or $(0.21) during the first quarter of 2022.
  • Non-GAAP net loss in the first quarter totaled $(1.6) million or $(0.09) per fully diluted shares outstanding, as compared to $(0.1) million or $(0.01) per fully diluted shares outstanding during the first quarter of 2022 (see definition of this non-GAAP measure and reconciliation to GAAP, below).
  • Cash, cash equivalents and short-term investments totaled $73.7 million as of March 31, 2023 as compared to $74.1 million as of December 31, 2022.

Will Febbo, OptimizeRx CEO commented, “We've had a solid start to the new year and our execution remains on pace to meeting our 2023 financial and operational objectives. These goals are firmly underpinned by our best in class platform and the ability to access, distribute and use the next generation of real-world, data-enabled insights across our growing network. Our full offering is highly differentiated and we believe our reach, proprietary Real-World Data Artificial Intelligence (RWD.AI) solution set, focus on accessing physicians across multiple landing pads, and ability to efficiently scale while being able to report back data, provides us with a significant competitive edge. We look forward to transforming the marketplace and making a positive impact across our pharma, prescriber and patient stakeholder base."

  Rolling Twelve Months Ended March 31,
Key Performance Indicators (KPIs)*   2023       2022  
Average revenue per top 20 pharmaceutical manufacturer $ 1,993,755     $ 2,614,054  
Percent of top 20 pharmaceutical manufacturers that are customers   90 %     90 %
Percent of total revenue attributable to top 20 pharmaceutical manufacturers   58 %     74 %
Net revenue retention   86 %     124 %
Revenue per average full-time employee $ 605,113     $ 733,275  

2023 Financial Outlook
The Company is reaffirming its full year financial outlook for fiscal 2023 for net revenue to increase at least 10% year-over-year, and gross margins to be between 58% and 62%.

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

Date: Wednesday, May 10, 2023
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-888-886-7786
International dial-in number: 1-416-764-8658
Conference ID: 54210852
Call Me Link: 
Webcast Link:

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

Definition and Use of Non-GAAP Financial Measures
This earnings release includes a presentation of non-GAAP net loss and non-GAAP net loss per diluted share or non-GAAP EPS, both of which are non-GAAP financial measures.

The Company defines non-GAAP net loss as GAAP net 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 loss divided by the number of weighted average shares outstanding on a 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 cash flow 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 exclude 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 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 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 loss and non-GAAP EPS for the three months ended March 31, 2023 and 2022.

Definition of Key Performance Indicators*
Top 20 pharmaceutical manufacturers: We have updated the definition of "top 20 pharmaceutical manufacturers" in our key performance indicators to be based upon Fierce Pharma's most updated list of "The top 20 pharma companies by 2022 revenue". We previously used "The top 20 pharma companies by 2020 revenue". As a result of this change, prior periods have been restated for comparative purposes.

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 OptimizeRx
OptimizeRx provides best-in-class health technology that enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. Connecting over 60% of U.S. healthcare providers and millions of their patients through an intelligent technology platform embedded within a proprietary digital point-of-care network, OptimizeRx helps patients start and stay on their medications. 

For more information, follow the Company on TwitterLinkedIn or visit

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 December 31, 2022, its subsequent Quarterly Reports on Form 10-Q, and its other filings with the Securities and Exchange Commission.

OptimizeRx Contact
Andy D’Silva, SVP Corporate Finance

Investor Relations Contact
Ashley Robinson
LifeSci Advisors, LLC


  March 31,
  December 31,
Current assets      
Cash and cash equivalents $ 16,443,666     $ 18,208,685  
Short-term investments   57,258,234       55,931,821  
Accounts receivable, net   18,164,687       22,155,301  
Prepaid expenses and other   4,014,853       2,280,828  
Total current assets   95,881,440       98,576,635  
Property and equipment, net   143,924       137,448  
Other assets      
Goodwill   22,673,820       22,673,820  
Technology assets, net   7,591,461       7,702,895  
Patent rights, net   1,886,008       1,940,178  
Right of use assets, net   213,324       235,320  
Other intangible assets, net   3,302,563       3,384,889  
Total other assets   35,667,176       35,937,102  
TOTAL ASSETS $ 131,692,540     $ 134,651,185  
Current liabilities      
Accounts payable – trade $ 1,288,854     $ 1,549,979  
Accrued expenses   2,124,777       2,601,246  
Revenue share payable   3,367,483       3,990,440  
Current portion of lease liabilities   89,287       89,902  
Deferred revenue   735,140       164,309  
Total current liabilities   7,605,541       8,395,876  
Non-current liabilities      
Lease liabilities, net of current portion   123,227       144,532  
Total liabilities   7,728,768       8,540,408  
Commitments and contingencies (See note 9)      
Stockholders’ equity      
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding at March 31, 2023 or December 31, 2022          
Common stock, $0.001 par value, 166,666,667 shares authorized, 18,331,511 and 18,288,571 shares issued at March 31, 2023 and December 31, 2022, respectively   18,332       18,289  
Treasury stock, $0.001 par value, 1,214,398 shares held at March 31, 2023 and December 31, 2022   (1,214 )     (1,214 )
Additional paid-in-capital   177,036,466       172,785,800  
Accumulated deficit   (53,089,812 )     (46,692,098 )
Total stockholders’ equity $ 123,963,772     $ 126,110,777  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 131,692,540     $ 134,651,185  

The accompanying notes are an integral part of these condensed consolidated financial statements.


  For the Three Months Ended March 31,
    2023       2022  
Net revenue $ 13,002,910     $ 13,731,530  
Cost of revenues, exclusive of depreciation and amortization presented separately below   5,569,621       5,629,858  
Gross profit   7,433,289       8,101,672  
Operating expenses      
General and administrative expenses   14,032,542     $ 11,391,233  
Depreciation, amortization and noncash lease expense   463,933       471,540  
Total operating expenses   14,496,475       11,862,773  
Loss from operations   (7,063,186 )     (3,761,101 )
Other income      
Interest income   665,472       3  
Loss before provision for income taxes   (6,397,714 )     (3,761,098 )
Income tax benefit          
Net loss $ (6,397,714 )   $ (3,761,098 )
Weighted average number of shares outstanding – basic   17,094,676       17,878,068  
Weighted average number of shares outstanding – diluted   17,094,676       17,878,068  
Loss per share – basic $ (0.37 )   $ (0.21 )
Loss per share – diluted $ (0.37 )   $ (0.21 )

The accompanying notes are an integral part of these condensed consolidated financial statements.


  For the Three Months Ended March 31,
    2023       2022  
Net loss $ (6,397,714 )   $ (3,761,098 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:      
Depreciation and amortization   463,933       471,540  
Stock-based compensation   4,380,503       3,174,098  
Increase in bad debt reserve   128,178       21,000  
Changes in:      
Accounts receivable   3,862,436       5,643,761  
Prepaid expenses and other assets   (1,734,024 )     1,021,166  
Accounts payable   (261,125 )     (6,079 )
Revenue share payable   (622,956 )     (1,202,497 )
Accrued expenses and other liabilities   (476,392 )     (1,184,784 )
Deferred revenue   570,831       (96,863 )
Purchase of property and equipment   (28,580 )     (14,480 )
Purchases of held-to-maturity investments   (56,926,611 )      
Redemptions of held-to-maturity investments   55,600,198        
Acquisition of intangible assets, including intellectual property rights         (51,271 )
Capitalized software development costs   (193,901 )      
NET CASH USED IN INVESTING ACTIVITIES   (1,548,894 )     (65,751 )
Cash paid for employee withholding taxes related to the vesting of restricted stock units   (170,400 )      
Proceeds from exercise of stock options   40,606       258,128  
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD   18,208,685       84,681,770  
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 16,443,667     $ 88,954,391  
Cash paid for interest $     $  
Cash paid for income taxes $     $  

The accompanying notes are an integral part of these condensed consolidated financial statements. 


  For the Three Months Ended March 31,
    2023       2022  
Net loss $ (6,397,714 )   $ (3,761,098 )
Depreciation and amortization   463,933       471,539  
Stock-based compensation   4,380,503       3,174,098  
Acquisition expense         17,160  
Non-GAAP net loss   (1,553,278 )     (98,301 )
Non-GAAP net loss per share      
Diluted $ (0.09 )   $ (0.01 )
Weighted average shares outstanding:      
Diluted   17,094,676       17,878,068  

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Source: OptimizeRx Corporation