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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

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

November 9, 2021 GMT

  • 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.

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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.

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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  TwitterLinkedIn  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)

 September 30,  December 31, 
 2021  2020 
      
ASSETS     
Current Assets     
Cash and cash equivalents$85,056,578  $10,516,776 
Accounts receivable, net 20,747,529   17,885,705 
Prepaid expenses 2,564,711   4,456,611 
Total Current Assets 108,368,818   32,859,092 
Property and equipment, net 130,863   148,854 
Other Assets       
Goodwill 14,740,031   14,740,031 
Technology assets, net 4,784,771   5,251,822 
Patent rights, net 2,205,550   2,349,570 
Other intangible assets, net 4,045,890   4,519,552 
Right of use assets, net 362,024   445,974 
Other assets and deposits 12,859   12,859 
Total Other Assets 26,151,125   27,319,808 
TOTAL ASSETS$134,650,806  $60,327,754 
        
LIABILITIES AND STOCKHOLDERS’ EQUITY       
Current Liabilities       
Accounts payable – trade$771,645  $618,250 
Accrued expenses 2,460,248   2,420,361 
Revenue share payable 3,891,091   4,969,868 
Current portion of lease obligations 101,063   123,220 
Current portion of contingent purchase price payable -   1,610,813 
Deferred revenue 348,405   285,795 
Total Current Liabilities 7,572,452   10,028,307 
Non-current Liabilities       
Lease obligations, net of current portion 260,614   325,533 
Total Non-current Liabilities 260,614   325,533 
Total Liabilities 7,833,066   10,353,840 
Commitments and contingencies (See Note 8) -   - 
Stockholders’ Equity       
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued and outstanding at September 30, 2021 or December 31, 2020 -   - 
Common stock, $0.001 par value, 166,666,667 shares authorized, 17,727,769 and 15,223,340 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 17,728   15,223 
Additional paid-in-capital 162,677,132   85,590,428 
Accumulated deficit (35,877,120)  (35,631,737)
Total Stockholders’ Equity 126,817,740   49,973,914 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$134,650,806  $60,327,754 

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


OPTIMIZERx CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

 For the Three Months Ended  For the Nine Months Ended 
 September 30,  September 30, 
 2021  2020  2021  2020 
            
NET REVENUE$16,124,951  $10,519,191  $40,979,801  $26,887,022 
COST OF REVENUES 7,047,832   4,504,844   17,733,400   11,385,622 
GROSS MARGIN 9,077,119   6,014,347   23,246,401   15,501,400 
                
OPERATING EXPENSES 9,038,929   6,191,069   23,506,381   18,993,187 
INCOME (LOSS) FROM OPERATIONS 38,190   (176,722)  (259,980)  (3,491,787)
                
OTHER INCOME (EXPENSE)               
Interest income 1,704   4,218   14,597   67,884 
Change in fair value of contingent consideration -   (110,390)  -   (140,390)
                
TOTAL OTHER INCOME (EXPENSE) 1,704   (106,172)  14,597   (72,506)
                
INCOME(LOSS)  BEFORE PROVISION FOR INCOME TAXES 39,894   (282,894)  (245,383)  (3,564,293)
                
PROVISION FOR INCOME TAXES -   -   -   - 
NET INCOME (LOSS)$39,894  $(282,894) $(245,383) $(3,564,293)
                
WEIGHTED AVERAGE SHARES OUTSTANDING               
BASIC 17,639,346   14,900,971   17,028,762   14,726,534 
DILUTED 18,198,412   14,900,971   17,028,762   14,726,534 
                
EARNINGS (LOSS) PER SHARE               
BASIC$0.00  $(0.02) $(0.01) $(0.24)
DILUTED$0.00  $(0.02) $(0.01) $(0.24)

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


OPTIMIZERx CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 For the Nine Months Ended 
 September 30, 
 2021  2020 
CASH FLOWS FROM OPERATING ACTIVITIES:     
Net loss$(245,383) $(3,564,293)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:       
Depreciation, amortization, and non-cash lease expense 1,580,173   1,563,883 
Stock-based compensation 2,362,113   2,066,609 
Stock issued for board services 250,085   325,011 
Provision for loss on accounts receivable 60,000   80,000 
Change in fair value of contingent consideration -   140,390 
Changes in:       
Accounts receivable (2,921,824)  (5,994,527)
Prepaid expenses and other assets 1,891,900   (931,833)
Accounts payable 153,395   (12,493)
Revenue share payable (1,078,777)  2,023,650 
Accrued expenses and other liabilities (53,710)  704,559 
Deferred revenue 62,610   (118,737)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,060,582   (3,717,781)
        
CASH FLOWS FROM INVESTING ACTIVITIES:       
Purchase of equipment (62,565)  (45,254)
Purchase of intangible assets (324,413)  - 
NET CASH USED IN INVESTING ACTIVITIES (386,978)  (45,254)
        
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 3,805,475   1,332,080 
Payment of contingent consideration (1,610,813)  (4,389,187)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 72,866,198   (3,057,107)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 74,539,802   (6,820,142)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 10,516,776   18,852,680 
CASH AND CASH EQUIVALENTS - END OF PERIOD$85,056,578  $12,032,538 
        
SUPPLEMENTAL CASH FLOW INFORMATION:       
Cash paid for interest$-  $- 
Cash paid for income taxes$-  $- 
Acquisition liabilities paid in common stock$-  $1,550,000 
Lease liabilities arising from right of use assets$-  $- 

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


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

 For the Three Months For the Nine Months
 Ended September 30, Ended September 30,
  2021  2020  2021  2020
Net Income (loss) 39,894   (282,894)  (245,383)  (3,564,293)
Depreciation and amortization 526,035   523,420   1,580,173   1,563,883 
Stock-based compensation 1,008,007   756,437   2,612,198   2,391,620 
Income or loss related to the fair value of contingent consideration -   110,390   -   140,390 
Non-GAAP net income 1,573,936   1,107,353   3,946,988   531,600 
        
Non-GAAP net income (loss) per share       
Basic$0.09  $0.07  $0.23  $0.04 
Diluted$0.09  $0.07  $0.22  $0.03 
Weighted average shares outstanding:       
Basic 17,639,346   14,990,771   17,028,762   14,726,534 
Diluted 18,198,412   16,086,041   17,555,593   15,658,050