News Releases

OptimizeRx Reports Second Quarter 2018 Results; Net Revenue Up 78% to Record $5.1 Million, Driving $0.02 EPS

August 7, 2018 at 4:00 PM EDT

ROCHESTER, Mich., Aug. 07, 2018 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (OTCQB:OPRX), a leading global provider of digital health messaging for the pharmaceutical industry, reported results for the second quarter ended June 30, 2018. Quarterly comparisons are to the same year-ago quarter.

Financial Highlights

  • Net revenue increased 78% to a record $5.1 million.
  • Gross margin improved from 44.0% to 56.1%.
  • Operating expense as a percentage of net revenue reduced from 57% to 51%.
  • Net income of $281,000 or $0.02 per diluted share vs. a loss
  • Raised $9 million in private placement

Operational Highlights

  • Up-listed to the Nasdaq Capital Market
  • Signed new pharmaceutical manufacturer brands for distributing digital health messaging through OptimizeRx’s expanding network of EHR channel partners.
  • Partnered with Patient Connect to deliver real-time digital heath messaging at point-of-care across Europe and provide a broader solution set for global brands.

Financial Summary
Net revenue in the second quarter of 2018 increased 78% to a record $5.1 million versus $2.9 million in the same year-ago quarter. The increase was primarily due to growth in OptimizeRx’s two core products of financial and brand messaging, coupled with broader distribution through the company’s new channel partners. The launch of new pharmaceutical brands also contributed to the increase.

Gross margin improved to 56.1% in the second quarter of 2018 from 44.0% in the year-ago quarter. The improvement was due to favorable product mix and reduced revenue share cost. The company remains focused on improving margins, and maintains its gross margin target of at least 55% through the fourth quarter of 2018.

Operating expenses in the second quarter of 2018 were $2.6 million, up from $1.6 million in the same year-ago quarter. The increase was primarily due to additional expenses related to growth initiatives, including expanding the company’s executive and sales team. However, operating expense as a percentage of revenue decreased to 51% as compared to 57% in the same year-ago quarter.

Net income for the second quarter of 2018 was $281,000 or $0.02 per diluted share, as compared to a net loss of $362,000 or $(0.04) per share in the year-ago quarter. Profitability was primarily due to the increase in revenue and decrease in operating expense as a percentage of revenue. The company expects to continue to be profitable on a quarterly basis, although one-time expenses related to growth initiatives may result in quarterly fluctuations in profitability.

Cash and cash equivalents totaled $12.0 million at June 30, 2018, as compared to $5.1 million at December 31, 2017. The increase in cash was due to $9.0 million equity raise completed in May 2018. The company has continued to operate debt-free and expects to generate positive cashflow from operations for the remainder of 2018.

Management Commentary

“In Q2, we realized our seventh consecutive quarter of revenue growth and achieved profitability through adding new pharmaceutical brands, growing our digital health messaging revenue and expanding our distribution channels,” said OptimizeRx CEO, William Febbo.

“OptimizeRx continued to be the largest network of its kind, with promotional programs incorporated into more than 50% of the ambulatory market and with more healthcare providers at 'point-of-prescribe' than any other network. This broad market reach provides us a substantial competitive advantage as we continue to grow our core products and pharma customer base. We continue to believe our addressable market is worth well north of $500 million to a billion once the market fully adopts this channel.

“Revenue was up 78% from the year-ago quarter and up 24% sequentially, demonstrating how our low fixed-overhead model continues to support a highly-scalable financial opportunity. This was also evident in our expanding margins. In fact, at 56.1% for the quarter, we surpassed our previously announced gross margin goal of 55%, and we expect to again exceed this goal in the second half of the year.

“For the second half of 2018, we will remain focused on revenue generation from our core products and expanding our channel and partner networks both domestically and internationally. We see this driving continued gross margin improvement as we scale.

“We plan to use a portion of the proceeds from our recent $9.0 million raise to make additional sales and channel investments for expanding further into our core ambulatory market where we continue to demonstrate high ROI for pharma marketing spend. We also plan to further expand into the hospital market, a new channel for us that also represents a significant growth opportunity. In addition, we will increase investment in the underlying technology that powers our solutions and will invest in our data strategy.

“While investments in these growth initiatives may result in quarterly fluctuations in profitability, we expect them to drive further strong topline growth and margin expansion while sustaining our position as the market leader in our space.”

Conference Call

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

Date: Tuesday, August 7, 2018
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-free dial-in number: 1-888-220-8451
International dial-in number: 1-323-794-2590
Conference ID: 9709267

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 28, 2018, as well as available for replay via the Investors section of the OptimizeRx website at

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 9709267

About OptimizeRx
OptimizeRx® (NASDAQ:OPRX) is one of the nation’s leading providers 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, prior authorization, 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 patient market with access to these benefits within their workflow at the point-of-care. For more information, follow the company on Twitter, LinkedIn or visit

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 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.

AS OF JUNE 30, 2018 AND DECEMBER 31, 2017

    June 30,
    December 31, 2017  
Current Assets            
Cash and cash equivalents   $ 12,003,864     $ 5,122,573  
Accounts receivable     2,954,782       2,257,276  
Accounts receivable – related party     2,555,931       1,173,614  
Prepaid expenses     215,108       255,428  
Total Current Assets     17,729,685       8,808,891  
Property and equipment, net     152,898       167,305  
Other Assets                
Patent rights, net     604,820       638,766  
Web development and other intangible costs, net     152,381       143,730  
Security deposit     5,049       5,049  
Total Other Assets     762,250       787,545  
TOTAL ASSETS   $ 18,644,833     $ 9,763,741  
Current Liabilities                
Accounts payable – trade   $ 176,940     $ 457,289  
Accrued expenses     828,540       953,947  
Revenue share payable     994,142       1,177,136  
Revenue share payable – related party     -       447,670  
Deferred revenue     845,153       507,160  
Total Liabilities     2,844,775       3,543,202  
Stockholders’ Equity                
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued and outstanding at June 30, 2018 or December 31, 2017     -       -  
Common stock, $0.001 par value, 166,666,667 shares authorized, 11,556,858 and 9,772,694 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively     11,557       9,773  
Stock warrants     1,286,424       1,286,424  
Additional paid-in-capital     44,915,896       35,287,464  
Accumulated deficit     (30,413,819 )     (30,363,122 )
Total Stockholders’ Equity     15,800,058       6,220,539  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 18,644,833     $ 9,763,741  


    For the Three Months Ended     For the Six Months Ended  
    June 30     June 30  
    2018     2017     2018     2017  
NET REVENUE                                
Revenue   $ 3,192,138     $ 2,252,222     $ 5,961,257     $ 3,652,540  
Revenue – Related Party     1,907,336       613,601       3,250,453       1,365,356  
TOTAL NET REVENUE     5,099,474       2,865,823       9,211,710       5,017,896  
REVENUE SHARE EXPENSE     2,236,751       1,605,534       4,244,842       2,987,267  
GROSS MARGIN     2,862,723       1,260,289       4,966,868       2,030,629  
OPERATING EXPENSES     2,589,126       1,630,853       4,884,467       3,291,631  
INCOME (LOSS) FROM OPERATIONS     273,597       (370,564 )     82,401       (1,261,002 )
OTHER INCOME (EXPENSE)                                
Interest income     6,912       9,063       8,929       16,819  
Interest expense     -       -       -       -  
TOTAL OTHER INCOME (EXPENSE)     6,912       9,063       8,929       16,819  
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES     280,509       (361,501 )     91,330       (1,244,183 )
PROVISION FOR INCOME TAXES     -       -       -       -  
NET INCOME (LOSS)   $ 280,509     $ (361,501 )   $ 91,330     $ (1,244,183 )
BASIC     10,979,086       9,861,257       10,373,326       9,883,648  
DILUTED     11,949,593       9,861,257       11,517,604       9,883,648  
NET INCOME (LOSS) PER SHARE                                
BASIC   $ 0.03     $ (0.04 )   $ 0.01     $ (0.13 )
DILUTED   $ 0.02     $ (0.04 )   $ 0.01     $ (0.13 )


    For the six months
Ended June 30
    2018     2017  
Net income (loss) for the period   $ 91,330     $ (1,244,183 )
Adjustments to reconcile net income(loss) to net cash used in operating activities:                
Depreciation and amortization     108,946       141,945  
Stock and options issued for services     1,013,822       291,874  
Changes in:                
Accounts receivable     (2,079,823 )     638,602  
Prepaid expenses     40,320       (866,333 )
Accounts payable     (280,349 )     534,743  
Revenue share payable     (183,664 )     (751,094 )
Accrued expenses     (125,407 )     (91,981 )
Deferred revenue     195,966       650,331  
NET CASH USED IN OPERATING ACTIVITIES     (1,218,859 )     (696,096 )
Purchase of property and equipment     (12,593 )     (24,599 )
Web development and other intangible costs     (56,651 )     (81,350 )
NET CASH USED IN INVESTING ACTIVITIES     (69,244 )     (105,949 )
Net proceeds from issuance of common stock for cash     8,169,394       -  
Repurchase of common stock and stock payable     -       (390,000 )
NET CHANGEIN CASH AND CASH EQUIVALENTS     6,881,291       (1,192,045 )
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD     5,122,573       7,034,647  
CASH AND CASH EQUIVALENTS - END OF PERIOD   $ 12,003,864     $ 5,842,602  
Cash paid for interest   $ -     $ -  
Cash paid for income taxes   $ -     $ -  
Non-cash issuance of shares to WPP   $ 447,000     $ -  


OptimizeRx Contact:
Doug Baker, CFO
Tel (248) 651-6568 x807

Investor Relations Contact:
Ron Both, CMA
Tel (949) 432-7557
Email contact

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Source: OptimizeRx Corporation