OptimizeRx Corp. (OPRX) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisio ...

PART I [PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section covers unaudited financial statements, management's discussion and analysis, market risk, and internal controls [Item 1: Financial Statements (unaudited)](index=3&type=section&id=Item%201%3A%20Financial%20Statements%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2025, and 2024, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with notes, for the company operating as a single reportable segment in digital healthcare technology Condensed Consolidated Statements of Operations (in thousands) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net revenue** | $21,928 | $19,690 | | **Gross profit** | $13,344 | $12,204 | | **Loss from operations** | $(2,114) | $(5,029) | | **Net loss** | $(2,199) | $(6,899) | | **Loss per share – basic & diluted** | $(0.12) | $(0.38) | Condensed Consolidated Balance Sheets (in thousands) | | **March 31, 2025** | **December 31, 2024** | | :--- | :--- | :--- | | **Cash and cash equivalents** | $16,573 | $13,380 | | **Total current assets** | $51,711 | $53,971 | | **Total assets** | $167,768 | $171,168 | | **Total current liabilities** | $18,351 | $18,654 | | **Total liabilities** | $51,498 | $54,170 | | **Total stockholders' equity** | $116,270 | $116,998 | Condensed Consolidated Statements of Cash Flows (in thousands) | | For the Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net cash provided by operating activities** | $3,864 | $2,118 | | **Net cash used in investing activities** | $(84) | $(153) | | **Net cash used in financing activities** | $(587) | $(640) | | **Net increase in cash and cash equivalents** | $3,193 | $1,325 | - The company operates as a digital healthcare technology company connecting life science organizations with over **two million healthcare professionals (HCPs)** and their patients, operating as a single reportable segment[22](index=22&type=chunk)[26](index=26&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting an **11% increase** in net revenue to **$21.9 million**, driven by growth in DTC and DAAP sales, a significant reduction in operating loss to **$2.1 million** from **$5.0 million**, and an improved net loss to **$2.2 million** from **$6.9 million**, with liquidity deemed sufficient for the next 12 months [Overview](index=24&type=section&id=Overview) The company is a digital healthcare technology platform connecting life sciences with HCPs and patients, employing a "land and expand" model to grow its customer base through enterprise-level engagements and innovative, higher-margin solutions like its AI-powered DAAP and patented Micro-Neighborhood Targeting, while noting business seasonality and concentration among a small number of large pharmaceutical companies - The company employs a "land and expand" strategy, focusing on growing existing customer accounts and shifting towards enterprise-level engagements[107](index=107&type=chunk) - Strategic focus is on driving revenue and increasing margins through innovative proprietary solutions like the AI-powered DAAP (Dynamic Audience Activation Platform) and Micro-Neighborhood Targeting[107](index=107&type=chunk)[108](index=108&type=chunk) - Revenue is concentrated, with the top five customers representing approximately **49% of revenue** for the year ended December 31, 2024[109](index=109&type=chunk) - The business experiences seasonality, with the first quarter typically having lower revenue and activity levels[110](index=110&type=chunk) [Key Performance Indicators](index=24&type=section&id=Key%20Performance%20Indicators) The company monitors several key performance indicators, showing an increase in average revenue per top 20 pharmaceutical manufacturer to **$2.96 million** and revenue per employee to **$710,000** for the twelve months ended March 31, 2025, while net revenue retention slightly decreased to **114%** and the percentage of revenue from top 20 manufacturers fell to **63%**, indicating growth from customers outside this top cohort Key Performance Indicators (Rolling Twelve Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Average revenue per top 20 pharma manufacturer (in thousands) | $2,960 | $2,592 | | Percent of total revenue from top 20 pharma manufacturers | 63% | 66% | | Net revenue retention | 114% | 116% | | Revenue per average full-time employee (in thousands) | $710 | $641 | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2025, net revenue increased by **11%** to **$21.9 million** compared to the same period in 2024, driven by DTC and DAAP sales, while gross margin slightly decreased to **60.9%** from **62.0%** due to solution and channel partner mix, and operating expenses decreased by **10%** to **$15.5 million** largely due to lower stock-based compensation, resulting in a significantly reduced loss from operations of **$2.1 million** and a net loss of **$2.2 million**, compared to losses of **$5.0 million** and **$6.9 million**, respectively, in Q1 2024 - Net revenue increased **11%** to **$21.9 million** for Q1 2025 from **$19.7 million** in Q1 2024, driven by growth in DTC and DAAP related sales[120](index=120&type=chunk) - Gross margin decreased slightly from **62.0%** to **60.9%** YoY, primarily due to product and channel partner mix[122](index=122&type=chunk) - Operating expenses decreased **10%** to **$15.5 million**, mainly due to a **$1.5 million** reduction in stock-based compensation expense[123](index=123&type=chunk)[124](index=124&type=chunk) - Net loss for Q1 2025 was **$(2.2) million**, a significant improvement from the **$(6.9) million** net loss in Q1 2024[130](index=130&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company had **$33.3 million** in working capital, including **$16.6 million** in cash and cash equivalents, with net cash provided by operating activities of **$3.9 million** for the quarter, was in compliance with all financial covenants of its term loan with an outstanding principal balance of **$33.8 million**, and management believes existing cash and funds from operations will be sufficient to finance operations for at least the next twelve months - As of March 31, 2025, working capital was **$33.3 million** with a current ratio of **2.8 to 1**[132](index=132&type=chunk) - The company had an outstanding principal balance of approximately **$33.8 million** on its Term Loan and was in compliance with all financial covenants[131](index=131&type=chunk) Cash Flow Summary (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net cash provided by operating activities** | $3,864 | $2,118 | | **Net cash used in investing activities** | $(84) | $(153) | | **Net cash used in financing activities** | $(587) | $(640) | - Management believes that funds from operations and existing cash will be sufficient to finance operations for the next twelve months[133](index=133&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable to the company for this reporting period - The company has indicated that this item is not applicable[144](index=144&type=chunk) [Item 4: Controls and Procedures](index=29&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of March 31, 2025, due to a previously identified material weakness in internal control over financial reporting related to the completeness and accuracy of data from third-party service organizations, with active remediation measures underway including enhancing the third-party assessment framework and hiring a Senior Vice President of internal controls - Management concluded that disclosure controls and procedures were not effective as of the end of the period covered by the report[146](index=146&type=chunk) - The ineffectiveness is due to a previously identified material weakness related to controls over the completeness and accuracy of data received from third-party service organizations[146](index=146&type=chunk)[148](index=148&type=chunk) - Remediation efforts are in progress, including requiring SOC-1 Type 2 reports from vendors, performing direct testing, and hiring a Senior VP of internal controls[155](index=155&type=chunk)[150](index=150&type=chunk) PART II [PART II — OTHER INFORMATION](index=31&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, and other miscellaneous information [Item 1: Legal Proceedings](index=31&type=section&id=Item%201%3A%20Legal%20Proceedings) The company reports that it is not currently a party to any material legal or administrative proceedings, nor is it aware of any pending or threatened material proceedings - The company is not currently a party to any material legal proceedings[157](index=157&type=chunk) [Item 1A: Risk Factors](index=31&type=section&id=Item%201A%3A%20Risk%20Factors) There have been no material changes to the risk factors from those previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred in the company's risk factors since the filing of its 2024 Annual Report on Form 10-K[158](index=158&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None [Item 3: Defaults Upon Senior Securities](index=31&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None [Item 4: Mine Safety Disclosure](index=31&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosure) This item is not applicable to the company - N/A [Item 5: Other Information](index=31&type=section&id=Item%205%3A%20Other%20Information) During the first quarter of 2025, none of the company's directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements in Q1 2025[161](index=161&type=chunk) [Item 6: Exhibits](index=32&type=section&id=Item%206%3A%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include various agreements, CEO and CFO certifications pursuant to the Sarbanes-Oxley Act, and Inline XBRL documents - The report includes exhibits such as the Amended Executive Severance Plan, amendments to the Financing Agreement, and CEO/CFO certifications[162](index=162&type=chunk)

Core Viewpoint - OptimizeRx Corp. reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of a loss of $0.11 per share, marking a significant earnings surprise of 172.73% [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - For the quarter ended March 2025, OptimizeRx posted revenues of $21.93 million, which is a 15.86% increase compared to the Zacks Consensus Estimate and an increase from $19.69 million year-over-year [2] - The company has topped consensus revenue estimates two times in the last four quarters [2] Stock Performance - OptimizeRx shares have increased by approximately 105.6% since the beginning of the year, contrasting with a decline of 3.8% in the S&P 500 [3] - The stock's immediate price movement will depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $21.43 million, while for the current fiscal year, it is $0.40 on revenues of $101.98 million [7] - The estimate revisions trend for OptimizeRx is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Computer - Software industry, to which OptimizeRx belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [8]

OptimizeRx (OPRX) Q1 2025 Earnings Call May 12, 2025 04:30 PM ET Company Participants Steve Silvestro - CEOEdward Stelmakh - CFO & COORyan Daniels - Group Head–Healthcare Technology and ServicesAndrew D’silva - SVP - Corporate FinanceDavid Grossman - Managing DirectorMax Michaelis - Equity Research AssociateConstantine Davides - Managing DirectorJeff Garro - Managing Director Conference Call Participants Richard Baldry - MD & Senior Research Analyst Operator Good afternoon, everyone, and thank you for joini ...

Financial Data and Key Metrics Changes - Q1 2025 revenues increased by 11% year over year to $21.9 million, with adjusted EBITDA improving to $1.5 million, a nearly $2 million increase year over year [3][10] - Gross margin decreased from 62% in Q1 2024 to 60.9% in Q1 2025, primarily due to product and channel partner mix [9][10] - The company reported a net loss of $2.2 million or $0.12 per share for Q1 2025, compared to a net loss of $6.9 million or $0.38 per share in Q1 2024 [10] - Operating cash flow was $3.9 million, with a cash balance of $16.6 million at the end of Q1 2025 [11] Business Line Data and Key Metrics Changes - Contracted revenue increased by over 25% year over year, exceeding $70 million as of the end of Q1 2025 [11] - Average revenue per top 20 pharmaceutical manufacturer is approximately $3 million, representing 63% of business in Q1 2025 [12] - Net revenue retention rate remains strong at 114%, with revenue per FTE increasing to $710,000 from $641,000 in Q1 2024 [12] Market Data and Key Metrics Changes - The company is experiencing early momentum in transitioning to a subscription-based model, with over 5% of projected annual revenue already converted to subscription contracts for 2025 [4][5] - The digital pharma marketing landscape is undergoing significant shifts, with the company positioned to reshape engagement between pharmaceutical companies, patients, and prescribers [5][6] Company Strategy and Development Direction - The company aims to address critical commercialization challenges in the pharma industry, including improving brand visibility and supporting the shift towards specialty medications [8] - Focus on operational excellence and customer relationships is expected to drive significant shareholder value [5][8] - The company is targeting Rule of 40 performance in the coming years, emphasizing disciplined cost management and targeted upselling strategies [4][5] Management's Comments on Operating Environment and Future Outlook - Management has not observed significant headwinds impacting the business despite market noise related to tariffs and price negotiations [4][18] - There is confidence in the ability to fund operating needs and strategic priorities, with a strong working capital position [11] - The company anticipates continued growth and is optimistic about achieving revenue guidance of $101 million to $106 million for the year [4][11] Other Important Information - The company is leveraging one of the largest point of care networks in the country to connect pharmaceutical manufacturers with healthcare providers [5][6] - The transition to subscription-based revenue is expected to smooth revenue recognition over time, enhancing financial stability [21][37] Q&A Session Summary Question: Concerns about market noise and customer hesitation - Management has not seen any pullback from clients and reports that customers are leaning into digital channels more than before [18][19] Question: Impact of subscription-based revenue on revenue recognition and margins - Subscription revenue spreads over a twelve-month period, but it is expected to be accretive due to low cost of sales [21][24] Question: Gross margin outlook - Current gross margin is expected to remain in the low 60% range, with efforts to increase it above that level [25][27] Question: Visibility on revenue and backlog - Committed revenue is north of 80%, indicating strong visibility for the year [31][32] Question: New business and RFP season performance - Both DTC and DAP components of the business are performing well, contributing to increased guidance [57][58] Question: Pipeline growth and win rates - The pipeline continues to grow steadily, with improved conversion ratios, particularly in data and subscription components [70][71] Question: Subscription deal structure - Current subscription deals are one-year evergreen arrangements, with plans to transition to multi-year deals in the future [73] Question: Guidance correlation between revenue and EBITDA - High-end revenue guidance correlates with high-end EBITDA, with a focus on gross margin mix being a key factor [75]

OptimizeRx Reports First Quarter 2025 Financial Results and Updates Fiscal Year 2025 Guidance - Q1 revenue of $21.9 million, increasing 11% year-over-year - Q1 gross profit increased 9% year-over-year to $13.3 million - Increases full year 2025 guidance to a revenue range between $101 million and $106 million and adjusted EBITDA range between $13 million and $15 million WALTHAM, Mass. – May 12, 2025 – OptimizeRx Corp. (the "Company") (Nasdaq: OPRX), a leading provider of healthcare technology solutions help ...

Core Insights - OptimizeRx Corp reported strong financial performance for Q1 2025, with revenue increasing by 11% year-over-year to $21.9 million, and gross profit rising by 9% to $13.3 million [7][8] - The company has raised its full-year revenue guidance to a range of $101 million to $106 million, with adjusted EBITDA expected between $13 million and $15 million [5][6][7] Financial Performance - Q1 2025 net revenue was $21.9 million, compared to $19.7 million in Q1 2024, marking an 11% increase [8] - Gross profit for Q1 2025 was $13.3 million, up from $12.2 million in the same period last year, reflecting a 9% increase [8] - The company reported a GAAP net loss of $(2.2) million or $(0.12) per share for Q1 2025, an improvement from a net loss of $(6.9) million or $(0.38) per share in Q1 2024 [8][22] Key Performance Indicators - Average revenue per top 20 pharmaceutical manufacturer increased to $2.96 million in 2025 from $2.59 million in 2024 [5] - The percentage of total revenue attributable to the top 20 pharmaceutical manufacturers decreased slightly to 63% in 2025 from 66% in 2024 [5] - Net revenue retention stood at 114% in 2025, down from 116% in 2024 [5] Strategic Outlook - The company has converted over 5% of its expected 2025 sales into subscription-based revenue streams, indicating a shift towards more stable revenue models [4] - CEO Stephen L. Silvestro expressed confidence in achieving "Rule of 40" performance in the coming years, driven by operational excellence and customer satisfaction [3][4]

Core Insights - OptimizeRx Corp. has published its 2025 Environmental, Social, and Governance (ESG) report, highlighting its commitment to corporate responsibility and stakeholder engagement [1][3] - The company improved its Institutional Shareholder Services (ISS) ESG rating from the seventh decile to the first decile, achieving prime status [3] Governance - The Board of Directors and the Nominating & Governance Committee are actively involved in aligning business strategies with corporate governance policies [8] - A double-materiality survey identified key stakeholder concerns in three areas: Data Protection, Ethics and Governance, and Human Capital [8] Planet - The 2025 ESG report includes enhanced disclosures on Scope 1 emissions and additional reporting on individual greenhouse gases [5] People - The company emphasizes impartiality in employment practices and aims to foster a culture of respect and inclusivity [9] - Initiatives such as the SPARK employee recognition program and a Competency Model have been introduced to enhance employee engagement and career progression [9] Prosperity - The Dynamic Audience Activation Platform (DAAP) has seen strong adoption, providing AI-enabled marketing solutions that connect life sciences, healthcare professionals, and patients [15] - The integration of Healthy Offers, Inc. enhances the company's data and analytics capabilities, expanding its stakeholder engagement [15]

Core Viewpoint - OptimizeRx Corp. will hold a conference call on May 12, 2025, to discuss its Q1 2025 financial results, which will be released prior to the call [1]. Group 1: Conference Call Details - The conference call is scheduled for May 12, 2025, at 4:30 p.m. Eastern Time [2]. - Participants can join via toll-free number 1-844-825-9789 or international number 1-412-317-5180, with Conference ID 10198829 [2]. - A webcast of the call will be available at the provided link [2]. Group 2: Company Overview - OptimizeRx provides innovative technology that enhances engagement between life sciences organizations, healthcare providers, and patients [4]. - The company has the capability to synchronize messaging across 2 million healthcare providers and over 240 million adults through various digital channels [4].

Core Insights - OptimizeRx Corp. plans to appoint a new independent director to its Board of Directors in the second half of 2025 as part of its strategy to refresh and expand the Board [1][2] - The current Board consists of five directors, with three new members added since 2020, indicating a proactive approach to governance and strategic alignment [2] - The company is focused on executing its growth strategy under the leadership of new CEO Steve Silvestro, aiming to enhance brand visibility and drive profitable revenue growth in the healthcare technology sector [3] Company Overview - OptimizeRx is a leading provider of healthcare technology solutions that facilitate connections between life sciences companies, healthcare professionals, and patients [4] - The company utilizes innovative AI-driven tools such as the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT) to enhance engagement and improve patient outcomes [4][5] - OptimizeRx is committed to privacy-safe, patient-centric technology, partnering with top pharmaceutical and life sciences companies to transform the healthcare landscape [5]