OptimizeRx Reports Second Quarter 2021 Financial Results, Revenue Up 55% as Leading Pharma Brands Aggressively Seek Improved ROI Through Technology Adoption
- Revenue Up 55% to
- Enterprise deals pipeline grows from 46 to 63
- Brands adopting
- Successful implementation of evidence-based provider engagement programs, driven by real-world evidence (“RWE”), anchored by sales from 2 leading brands
- Cash flow positive from operations of
Financial Highlights
- Revenue in the second quarter of 2021 increased 55% to a record
$13.6 million , from$8.8 million as compared to the same year-ago period. - Gross profit in the second quarter of 2021 increased 56% to
$8.0 million . - Gross profit margin in the second quarter of 2021 increased to 59% from 58.6%.
- GAAP net income totaled
$0.4 million or$0.02 per basic and diluted share in the second quarter as compared to a net loss of$1.1 million or$0.07 per basic and fully diluted share in the year ago period. - Non-GAAP net income in the second quarter totaled
$1.8 million or$0.10 per basic and fully diluted share respectively (see definition of this non-GAAP measure and reconciliation to GAAP, below). Cash and cash equivalents totaled$83.9 million as ofJune 30, 2021 as compared to$82.3 million as ofMarch 31, 2020 .
Operational Highlights
- Successful implementation of evidence-based provider engagement programs, driven by real-world evidence (“RWE”), anchored by sales from 2 leading brands
- Including agreement with a top 5 pharmaceutical manufacturer in solving lapse in medical coverage barrier for patients
- Announced several new health information technology (HIT) partnerships to further connect the digital channels used by healthcare professionals (HCPs) within the care setting, expanding reach to over 50% of oncologists.
Management Commentary
“As a pioneering leader in digital health technology, we are delighted to report another record quarter of strong revenue growth, preceding what is expected to be a remarkable year for
“We have successfully implemented evidence-based provider engagement programs using the innovative RWE platform enhancement we launched at the end of 2020. We are both humbled and proud of the connectivity that OptimizeRx’s digital health and communications platform has generated between the stakeholders that we serve, consisting of healthcare providers, patients and drug manufacturers,” continued
“Additionally, our clients are benefitting and are seeing an average ROI of 8:1 with some as high as 20:1. The power of third-party measurement has been a key differentiator and is allowing us to accurately measure the value we deliver to our clients. As evidence of this, we have seen the number of brands adopting our technology jump from 80 to 140 in the last 6 months,” concluded
Q2’2021 Financial Summary
Total revenue reported for the three months ended
Gross margin was 59%, which increased slightly from the year-ago quarter. Gross margin is expected to improve on a quarter over quarter basis for the balance of the year as our RWE solution expands and we continue to launch new solutions that have higher margins.
Operating expenses increased to
Net Income on a GAAP basis was approximately
Non-GAAP net income was
Cash and cash equivalents totaled
Conference Call
Date:
Time:
Web access: http://public.viavid.com/index.php?id=146009
Toll-free dial-in number: 1-800-430-8332
International dial-in number: 1-323-289-6576
Conference ID: 2901587
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
About
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.
OptimizeRx Contact
Tel (248) 651-6568 x807
dbaker@optimizerx.com
Media Relations Contact
Tel (754) 245-7070
malejandra@optimizerx.com
Investor Relations Contact
arr@lifesciadvisors.com
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
2021 |
2020 |
|||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 83,923,455 | $ | 10,516,776 | ||||
Accounts receivable, net | 17,933,926 | 17,885,705 | ||||||
Prepaid expenses | 3,124,479 | 4,456,611 | ||||||
Total Current Assets | 104,981,860 | 32,859,092 | ||||||
Property and equipment, net | 137,813 | 148,854 | ||||||
Other Assets | ||||||||
14,740,031 | 14,740,031 | |||||||
Technology assets, net | 4,896,016 | 5,251,822 | ||||||
Patent rights, net | 2,258,542 | 2,349,570 | ||||||
Other intangible assets, net | 4,203,777 | 4,519,552 | ||||||
Right of use assets, net | 392,482 | 445,974 | ||||||
Other assets and deposits | 12,859 | 12,859 | ||||||
Total Other Assets | 26,503,707 | 27,319,808 | ||||||
TOTAL ASSETS | $ | 131,623,380 | $ | 60,327,754 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable – trade | $ | 805,461 | $ | 618,250 | ||||
Accrued expenses | 2,088,651 | 2,420,361 | ||||||
Revenue share payable | 3,341,312 | 4,969,868 | ||||||
Current portion of lease obligations | 110,271 | 123,220 | ||||||
Current portion of contingent purchase price payable | 1,610,813 | |||||||
Deferred revenue | 319,609 | 285,795 | ||||||
Total Current Liabilities | 6,665,304 | 10,028,307 | ||||||
Non-current Liabilities | ||||||||
Lease obligations, net of current portion | 282,934 | 325,533 | ||||||
Total Non-current Liabilities | 282,934 | 325,533 | ||||||
Total Liabilities | 6,948,238 | 10,353,840 | ||||||
Commitments and contingencies (See Note 8) | - | - | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, |
||||||||
outstanding at |
- | - | ||||||
Common stock, |
||||||||
15,223,340 shares issued and outstanding at respectively |
17,495 | 15,223 | ||||||
Additional paid-in-capital | 160,574,661 | 85,590,428 | ||||||
Accumulated deficit | (35,917,014 | ) | (35,631,737 | ) | ||||
Total Stockholders’ Equity | 124,675,142 | 49,973,914 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 131,623,380 | $ | 60,327,754 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
NET REVENUE | $ | 13,625,639 | $ | 8,783,230 | $ | 24,854,850 | $ | 16,367,832 | ||||||||
COST OF REVENUES | 5,580,964 | 3,639,016 | 10,685,567 | 6,880,779 | ||||||||||||
GROSS MARGIN | 8,044,675 | 5,144,214 | 14,169,283 | 9,487,053 | ||||||||||||
OPERATING EXPENSES | 7,704,536 | 6,200,027 | 14,467,452 | 12,802,118 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | 340,139 | (1,055,813 | ) | (298,169 | ) | (3,315,065 | ) | |||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest income | 11,961 | 8,345 | 12,892 | 63,666 | ||||||||||||
Change in Fair Value of Contingent Consideration | (30,000 | ) | - | (30,000 | ) | |||||||||||
TOTAL OTHER INCOME (EXPENSE) | 11,961 | (21,655 | ) | 12,892 | 33,666 | |||||||||||
INCOME(LOSS) BEFORE PROVISION FOR INCOME TAXES | 352,100 | (1,077,468 | ) | (285,277 | ) | (3,281,399 | ) | |||||||||
PROVISION FOR INCOME TAXES | - | - | - | - | ||||||||||||
NET INCOME (LOSS) | $ | 352,100 | $ | (1,077,468 | ) | $ | (285,277 | ) | $ | (3,281,399 | ) | |||||
WEIGHTED AVERGE SHARES OUTSTANDING | ||||||||||||||||
BASIC | 17,347,096 | 14,667,216 | 16,720,114 | 14,638,359 | ||||||||||||
DILUTED | 18,104,807 | 14,667,216 | 16,720,114 | 14,638,359 | ||||||||||||
EARNINGS (LOSS) PER SHARE | ||||||||||||||||
BASIC | $ | 0.02 | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.22 | ) | |||||
DILUTED | $ | 0.02 | $ | (0.07 | ) | $ | (0.02 | ) | $ | (0.22 | ) | |||||
The accompanying notes are an integral part of these condensed consolidated financial statements. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
For the Six Months Ended |
||||||||
2021 | 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Loss | $ | (285,277 | ) | $ | (3,281,399 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation, amortization, and non-cash lease expense | 1,054,138 | 1,040,463 | ||||||
Stock-based compensation | 1,354,106 | 1,435,156 | ||||||
Stock issued for board services | 250,085 | 200,027 | ||||||
Provision for loss on accounts receivable | 40,000 | 40,000 | ||||||
Change in fair value of contingent consideration | 30,000 | |||||||
Changes in: | ||||||||
Accounts receivable | (88,221 | ) | (3.427,166 | ) | ||||
Prepaid expenses and other assets | 1,332,132 | (1,785,422 | ) | |||||
Accounts payable | 187,211 | 3,747 | ||||||
Revenue share payable | (1,628,556 | ) | 1,878,051 | |||||
Accrued expenses and other liabilities | (393,778 | ) | 186,682 | |||||
Deferred revenue | 33,814 | 68,678 | ||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,855,654 | (3,611,183 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of equipment | (43,654 | ) | (24,998 | ) | ||||
Purchase of intangible assets | (176,822 | ) | - | |||||
(220,476 | ) | (24,998 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from public offering of common stock, net of commission costs | 70,671,536 | |||||||
Proceeds from the exercise of options | 2,710,778 | 286,983 | ||||||
Payment of contingent consideration | (1,610,813 | ) | (1,389,188 | ) | ||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 71,771,501 | (1,102,205 | ) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 73,406,679 | (4,738,386 | ) | |||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 10,516,776 | 18,852,680 | ||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 83,923,455 | $ | 14,114,294 | ||||
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 | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||
Net Income (loss) | 352,100 | (1,077,468 | ) | (285,277 | ) | (3,281,399 | ) | |||||||
Depreciation and amortization | 527,696 | 520,794 | 1,054,138 | 1,040,463 | ||||||||||
Stock-based compensation | 897,038 | 780,670 | 1,604,191 | 1,635,182 | ||||||||||
Income or loss related to the fair value of contingent consideration |
- | 30,000 | - | - | ||||||||||
Non-GAAP net income (loss) | 1,776,834 | 253,996 | 2,373,052 | (605,754 | ) | |||||||||
Non-GAAP net income (loss) per share | ||||||||||||||
Basic | $ | 0.10 | $ | 0.02 | $ | 0.14 | $ | (0.04 | ) | |||||
Diluted | $ | 0.10 | $ | 0.02 | $ | 0.14 | $ | (0.04 | ) | |||||
Weighted average shares outstanding: | ||||||||||||||
Basic | 17,347,096 | 14,667,216 | 16,720,114 | 14,638,359 | ||||||||||
Diluted | 18,104,807 | 15,573,257 | 17,467,159 | 14,638,359 |
Source: OptimizeRx Corporation