Core Insights - OptimizeRx (OPRX) started 2025 with strong momentum, achieving 11% year-over-year revenue growth to $21.9 million and $1.5 million in adjusted EBITDA, marking its best first-quarter performance to date [1] - The company raised its full-year revenue guidance to $101-$106 million, expecting adjusted EBITDA between $13-$15 million, with over 80% of the revenue guidance coming from existing contracts [2] - A strategic shift towards a subscription-based revenue model is underway, with early adoption exceeding 5% of projected revenues, aimed at smoothing revenue flows and enhancing margins [2] Financial Performance - OPRX's gross margins decreased slightly to 60.9% from 62% the previous year, attributed to a higher mix of lower-margin DTC managed services [3] - The company reported a stronger operating cash flow of $3.9 million, supporting a cash balance of $16.6 million [1] Market Position and Strategy - Pharma clients are increasingly focused on efficiency and ROI in their marketing budgets, aligning with OptimizeRx's omnichannel platform that integrates point-of-care and real-world patient targeting [4] - Early results from the platform indicate a script lift of 25% and a 10:1 ROI, reinforcing its value proposition [4] - OPRX is navigating macro uncertainty effectively, benefiting from committed revenues, cost efficiencies, and a pivot to subscriptions [5] Peer Comparison - Veeva Systems (VEEV) reported $759 million in revenues for the first quarter of fiscal 2026, up 16.7% year-over-year, driven by strong adoption of its products [6] - Health Catalyst (HCAT) achieved $79.4 million in first-quarter revenue, up 6.3% year-over-year, with its Ignite platform driving 10% growth [7] Stock Performance and Valuation - OPRX shares have surged 176.4% year-to-date, significantly outperforming the industry growth of 15% [8] - The forward 12-month price-to-sales ratio for OPRX is 2.25X, lower than the industry average of 8.67X and its five-year median of 3.63X [11] - The Zacks Consensus Estimate for OPRX's 2025 earnings per share suggests a 63.6% improvement from 2024 [12]

Core Insights - OptimizeRx (OPRX) has reported strong first-quarter results for fiscal 2025, exceeding Wall Street expectations and reflecting positively in its share price performance over the past three months [1][4]. Financial Performance - Revenue increased by 11% year over year to $21.9 million, with a positive operating cash flow of $3.9 million, marking a significant turnaround from the previous year [2][10]. - Contracted revenues grew by 25% year over year, now exceeding $70 million, which accounts for over 80% of the midpoint of the FY25 revenue guidance [9][11]. - Gross margins remained steady at 60.9%, while operating expenses declined due to reduced stock-based compensation and cost controls [7][10]. Market Position and Growth - OPRX's shares surged by 69.3% in the past three months, significantly outperforming the broader industry growth of 36.7% and the S&P 500's gain of 22.1% during the same period [4][5]. - The company is transitioning to a subscription-based revenue model, with over 5% of projected 2025 revenues already tied to recurring contracts, particularly in its DAAP and Medicx data businesses [12][10]. Valuation - OPRX is attractively priced, trading at a forward price-to-sales (P/S) ratio of 2.2X, well below its five-year median of 3.64X and the industry average of 8.64X [13]. Strategic Outlook - Management has raised its full-year guidance and reaffirmed its ambition to achieve Rule of 40 metrics, indicating a combined annual revenue growth rate and EBITDA margin of 40% or higher within the next several years [2][10]. - The company is focused on deepening client relationships and scaling its omnichannel platform, which is expected to create sustained shareholder value in the evolving healthcare ecosystem [3].

Core Insights - OptimizeRx Corp. has appointed Steve Silvestro, the current CEO, to its Board of Directors effective June 20, 2025, enhancing leadership and execution of value creation plans [1][2][3] Company Leadership - Steve Silvestro joined OptimizeRx in 2019, became CEO in March 2025, and previously served as interim CEO from January 2025 [2][4] - The Board of Directors has recognized Silvestro's leadership and the progress made under his tenure, which has strengthened the company's position and laid a foundation for long-term shareholder value [3] Strategic Direction - Silvestro expressed optimism about OptimizeRx's direction, emphasizing a focus on operational excellence, customer satisfaction, and a strong outlook for 2025 and beyond [3] - The company aims to deepen its value proposition with pharmaceutical partners, accelerate the shift towards a recurring revenue model, and progress towards achieving Rule of 40 performance [3][4] Company Overview - OptimizeRx is a healthcare technology company that connects life science brands with patients and healthcare providers through innovative AI-driven tools [5][6] - The company is committed to privacy-safe, patient-centric technology, partnering with leading pharmaceutical and life sciences companies to transform healthcare [6]

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2] - OptimizeRx Corp. (OPRX) currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [3][4] Price Performance - OPRX shares have increased by 4.21% over the past week, outperforming the Zacks Computer - Software industry, which rose by 1.28% [6] - Over the past month, OPRX's price has surged by 43.09%, significantly higher than the industry's 1.82% [6] - In the last quarter, OPRX shares rose by 98.32%, and over the past year, they increased by 25.6%, while the S&P 500 only moved 1.99% and 12.34%, respectively [7] Trading Volume - The average 20-day trading volume for OPRX is 396,163 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, four earnings estimates for OPRX have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.40 to $0.51 [10] - For the next fiscal year, three estimates have also moved higher, indicating positive sentiment regarding future earnings [10] Conclusion - Given the strong price performance, positive earnings outlook, and favorable momentum indicators, OPRX is positioned as a promising investment opportunity [12]

Core Insights - OptimizeRx Corp. (OPRX) shows potential as a strong investment due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][3] - The trend of increasing estimate revisions reflects growing analyst optimism, which is likely to positively impact the stock price [2] Current-Quarter Estimate Revisions - The expected earnings for the current quarter are $0.03 per share, representing a year-over-year increase of +50% [5] - The Zacks Consensus Estimate for the current quarter has risen by 49.25% over the last 30 days, with three estimates increasing and one decreasing [5] Current-Year Estimate Revisions - For the full year, the expected earnings are $0.51 per share, indicating a year-over-year change of +54.55% [6] - The consensus estimate has increased by 116.67% over the past month, with four estimates moving higher and no negative revisions [6][7] Zacks Rank - OptimizeRx currently holds a Zacks Rank 2 (Buy), reflecting favorable estimate revisions and a strong potential for outperformance [8] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8] Stock Performance - OptimizeRx shares have appreciated by 38.1% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [9]

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]

Financial Data and Key Metrics Changes - Q1 2025 revenues increased by 11% year over year to $21,900,000, with adjusted EBITDA improving to $1,500,000, an increase of nearly $2,000,000 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 $2,200,000 or $0.12 per share for Q1 2025, compared to a net loss of $6,900,000 or $0.38 per share in Q1 2024 [10] - Operating cash flow was $3,900,000, with a cash balance of $16,600,000 at the end of the quarter [11] Business Line Data and Key Metrics Changes - Average revenue per top 20 pharmaceutical manufacturer is approximately $3,000,000, representing 63% of the business in Q1 2025 [13] - Net revenue retention rate remains strong at 114% [13] Market Data and Key Metrics Changes - Committed contracted revenue exceeded $70,000,000, a greater than 25% improvement year over year [11][12] - The company is seeing early momentum in transitioning to a subscription-based model, with over 5% of projected annual revenue already converted to subscription contracts for 2025 [4][12] Company Strategy and Development Direction - The company aims to achieve Rule of 40 performance in the coming years, focusing on operational excellence and customer relationships [4][6] - A key focus will be on improving brand visibility, reducing script abandonment, and supporting the shift toward complex specialty medications [8] - The company is uniquely positioned to drive significant value creation and deliver long-term sustainable shareholder growth by leveraging its point of care network [6][7] Management's Comments on Operating Environment and Future Outlook - Management has not seen significant headwinds impacting the business despite market noise related to tariffs and price negotiations [4][19] - The company is confident in its ability to fund operating needs and strategic priorities, with a strong working capital position [11][12] - Management is optimistic about capturing greater market share and expanding the overall size of pharma's digital spend, which exceeds $10 billion annually [8] Other Important Information - The company is focused on building a diversified portfolio to meet customer needs, with a goal to increase gross margins over time [10][95] - The transition to subscription revenue is expected to smooth out revenue recognition and enhance margins [24][96] Q&A Session Summary Question: Concerns about market noise and customer hesitation - Management has not seen any pullback from clients and is receiving real-time feedback indicating a leaning into digital channels [19][20] Question: Impact of subscription-based revenue on revenue recognition - Subscription revenue spreads over a twelve-month period, with low cost of sales, making it accretive to the company [24][25] Question: Future gross margin expectations - The company aims to increase gross margins above the low 60% range, with diversification mitigating material impacts [26][30] Question: Visibility on committed revenue - Committed revenue is north of 80%, indicating strong visibility for the year [34][35] Question: Pipeline growth and win rates - The pipeline continues to grow steadily, with improved conversion ratios, particularly in data and subscription components [80] Question: Subscription deal structure - Current subscription deals are one-year evergreen arrangements, with plans to transition to multi-year deals in the future [83] Question: Revenue guidance correlation with EBITDA - The high end of revenue guidance correlates with the high end of EBITDA, with gross margin being the main variable [84]

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]

Revenue Performance - Q1 2025 revenue reached $21.9 million, an 11% increase year-over-year from $19.7 million in Q1 2024[1] - Full-year 2025 revenue guidance raised to a range of $101 million to $106 million, with adjusted EBITDA expected between $13 million and $15 million[1][7] - Year-to-date contracted revenue is up more than 20% compared to the same period last year, indicating strong momentum[3] - Net revenue for Q1 2025 was $21,928 million, a 11.5% increase from $19,690 million in Q1 2024[24] Profitability - Q1 2025 gross profit increased by 9% year-over-year to $13.3 million, up from $12.2 million in Q1 2024[5] - Non-GAAP net income for Q1 2025 was $1.5 million, or $0.08 per diluted share, compared to a non-GAAP net loss of $(2.0) million, or $(0.11) per diluted share in Q1 2024[5] - Adjusted EBITDA for Q1 2025 increased to $1.5 million, compared to $(0.3) million in the same year-ago period[5] - Net loss for Q1 2025 decreased to $2,199 million from $6,899 million in Q1 2024, representing a 68.1% improvement[24] - Non-GAAP net income for Q1 2025 was $1,539 million, compared to a loss of $1,964 million in Q1 2024[29] - Adjusted EBITDA for Q1 2025 was $1,489 million, a significant improvement from a loss of $276 million in Q1 2024[30] Cash and Liquidity - Cash and cash equivalents totaled $16.6 million as of March 31, 2025, up from $13.4 million as of December 31, 2024[5] - Cash provided by operating activities for Q1 2025 was $3,864 million, an increase from $2,118 million in Q1 2024[26] - Cash and cash equivalents at the end of Q1 2025 were $16,573 million, up from $15,177 million at the end of Q1 2024[26] Customer Metrics - Over 5% of expected 2025 sales have been converted into subscription-based revenue streams, enhancing revenue stability[4] - Average revenue per top 20 pharmaceutical manufacturer increased to $2,960, up from $2,592 in 2024[6] - Net revenue retention stood at 114% for the twelve months ended March 31, 2025, compared to 116% in 2024[6] Operating Expenses - Operating expenses for Q1 2025 totaled $15,458 million, down from $17,233 million in Q1 2024, a reduction of 10.3%[24] Shareholder Metrics - Weighted average shares outstanding for diluted earnings in Q1 2025 were 18,579,012, compared to 18,170,108 in Q1 2024[29] - Loss per share for Q1 2025 was $0.12, an improvement from $0.38 in Q1 2024[24]