OptimizeRx Reports Third Quarter 2021 Financial Results, Revenue Increased 53% in Continued Scale Up for Accelerated Growth

• Revenue Up 53% to $16.1 million, closing on 11 enterprise contracts
• Brands adopting OptimizeRx solutions increases to 182 from 140 in the past 6 months
• Real-world evidence (“RWE”) continues to gain traction and build revenue generating momentum
• Cash flow positive from operations of $2.1 million for the nine months of 2021

ROCHESTER, Mich., Nov. 09, 2021 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of digital health solutions for life science companies, physicians and patients, reported results for the three months ended September 30, 2021.

Financial Highlights

• Revenue in the third quarter of 2021 increased 53% to a record $16.1 million, from $10.5 million in the same period of 2020, with the first nine months of 2021 up 52% to a record $41.0 million as compared to the same year-ago period.
• Gross profit in the third quarter of 2021 increased 51% to $9.1 million as compared to the same year-ago period.
• Gross profit margin in the third quarter of 2021 decreased slightly to 56.3% from 57.2% as compared to the same year-ago period.
• GAAP net income totaled $0.04 million or $0.00 per basic and diluted share in the third quarter as compared to a net loss of $0.3 million or ($0.02) per basic and fully diluted share in the year ago period.
• Non-GAAP net income in the third quarter totaled $1.6 million or $0.09 per basic and fully diluted share respectively (see definition of this non-GAAP measure and reconciliation to GAAP, below).
• Cash and cash equivalents totaled $85.0 million as of September 30, 2021 as compared to $83.9 million as of June 30, 2021.

Operational Highlights

• Enhanced senior leadership team by adding Chief Financial Officer/Chief Operating Officer, as well as SVP of Corporate Finance.
• Expanded operations team with new hires to position the Company for the next phase of growth.
• Enhanced market access and adherence commercial teams to accelerate those portions of the business.
• Published physician survey results demonstrating the value of digital solutions to address unmet patient and provider needs in the area of type 2 diabetes.
• Recognized as a finalist in Questex’s Fierce Pharma marketing awards 2021.
• Formed exclusive partnership with Demandbase to deliver the industry’s most powerful account-based-experience solution.

Management Commentary
Will Febbo, OptimizeRx CEO commented, “We are pleased with the financial and operational progress of the quarter and remain on track to end 2021 strong. Demand for our platform is robust as quarter-on-quarter revenue grew 53%. 182 brands are now live on platform, up from 140 in the prior quarter. For our clients needing to adapt to healthcare’s paradigm shift to digital solutions, our purpose-built point-of-care technology platform stays ahead of pace, seamlessly adapting to the rapidly evolving patient care journey. We also continued to fill critical operational roles in this period in preparation for supporting the Company’s next phases of strong growth.

“We remain excited by the interest shown in our recently launched real-world-evidence solution which is one example of how we are building out the platform to be in lockstep with healthcare’s major technology shifts. These shifts in the last decade have consisted of virtualization of engagement, personalization of patient care, and segmentation through analysis of real-time data. In being up to this challenge, we are pushing the limits and etching out a new frontier of how technology can be leveraged in order to bridge time gaps in connectivity and information to achieve better patient outcomes.

“Additionally, average client ROI increased to 13:1 in the period and remains a valuable measurement of OptimizeRx’s active contribution to our clients’ success,” concluded Mr. Febbo.

Q3 2021 Financial Summary
Total revenue reported for the three months ended September 30, 2021 was approximately $16.1 million, an increase of 53% over the approximately $10.5 million from the same period in 2020. The increased revenue resulted from increases in sales in all our solutions.

Gross margin was 56.3%, which decreased slightly from the year-ago quarter (57.2% year ago period). This is the result of solution mix. In general, there has been an increase in the percentage of activity flowing through our higher cost channels compared with a year ago. This was offset by the launch of our RWE solution. Our RWE solution includes a much higher percentage of program design, which carries a higher margin than the delivery of the actual messages.

Operating expenses increased to $9.0 million as compared to $6.2 million in the same year-ago quarter. The increase was due to the Company’s efforts to expand its solutions and build out its organization for future growth.

Net Income on a GAAP basis was approximately $0.04 million or $0.00 per basic and diluted share, as compared to a net loss of $0.3 million or $(0.02) per basic and fully diluted share in the third quarter of 2020.

Non-GAAP net income was $1.6 million or $0.09 per basic and fully diluted share, compared to non-GAAP net income of $1.1 million or $0.07 per basic and fully diluted share in the same year-ago period (see definition of this non-GAAP measure and reconciliation to GAAP, below).

Cash and cash equivalents totaled $85.1 million as of September 30, 2021, as compared to $83.9 million as of June 30, 2021.

Conference Call

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

Date: Tuesday, November 9, 2021
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Web access: Register here to participate
Toll-free dial-in number: 1-855-327-6837
International dial-in number: 1-631-891-4304  
Conference ID: 10016809

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 www.optimizerx.com/investors.

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 and nine months ended September 30, 2021 and 2020.

About OptimizeRx
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
Andy D’Silva, SVP Corporate Finance
adsilva@optimizerx.com 

Media Relations Contact 
Maira Alejandra, Media Relations Manager
Tel (754) 245-7070 
malejandra@optimizerx.com        

Investor Relations Contact
Ashley Robinson
LifeSci Advisors, LLC
arr@lifesciadvisors.com

OPTIMIZERx CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

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


OPTIMIZERx CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

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

OPTIMIZERx CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

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

OPTIMIZERx CORPORATION
Reconciliation of non-GAAP to GAAP Financial Measures
(Unaudited)

Source: OptimizeRx Corporation