Financial Data and Key Metrics Changes - For fiscal year 2024, the company reported revenue of $92.1 million and adjusted EBITDA of $11.7 million, exceeding guidance and street expectations [7] - Fourth quarter revenue was $32.3 million, a 14% increase from $28.4 million in the same period of 2023, driven by increased DAAP-related revenue streams [19] - Gross margin improved from 62.9% in Q4 2023 to 68.2% in Q4 2024, attributed to a favorable solution and channel partner mix [19] - Net loss for Q4 2024 was $0.1 million, significantly improved from a net loss of $4.1 million in Q4 2023 [21] - Non-GAAP net income for Q4 2024 was $5.5 million, or $0.30 per diluted share, compared to $4.6 million, or $0.26 per diluted share in the prior year [21] - Adjusted EBITDA for Q4 2024 was $8.8 million, up from $5.8 million in Q4 2023 [21] Business Line Data and Key Metrics Changes - The average revenue for the top 20 pharmaceutical manufacturers was $2.9 million, a 22% increase year-over-year [23] - The top five customers averaged over $9 million in revenue in 2024, with plans to elevate at least one more customer to this level in 2025 [12] Market Data and Key Metrics Changes - The net revenue retention rate improved to 121%, up from 105% in the previous year [23] - Revenue per FTE increased to $701,000, compared to $586,000 in the prior year [23] Company Strategy and Development Direction - The company aims to focus on operational excellence and customer centricity while transitioning to a subscription-based revenue model [5][6] - Plans to become a "Rule of 40" company over the next several years, emphasizing substantial operating leverage and predictable revenue streams [15][16] - The company is positioned in a $10 billion total addressable market with significant growth opportunities driven by increased pharma advertising spend on digital channels [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory and the strong demand for audience creation and dynamic audiences [48] - The company is committed to under-promising and over-delivering, maintaining a conservative approach while being encouraged by current visibility in the business [71] - The management highlighted the importance of monitoring FDA approvals and their impact on the pharmaceutical market [78] Other Important Information - The company completed the Medicx Health acquisition in Q4 2023, which is expected to enhance its service offerings and operational efficiency [20] - The transition from managed services to self-service for Medicx is largely complete, with growth in audience components being a key focus [100] Q&A Session Summary Question: Focus on customer centricity and strategy changes - Management emphasized increasing customer centricity and making it easier for clients to renew and expand their footprint [30] Question: Impact of subscription-based revenue model - The transition to a subscription model is expected to create more predictable and stickier revenue, particularly from the data component of DAAP deals [36] Question: Gross margin expansion drivers - Gross margin expansion was driven by product mix, particularly from DAAP, and while current margins are high, they may not be sustainable at that level [45][46] Question: Visibility into new DAAP deals and backlog - The company is seeing strong demand for DAAP solutions, with visibility into 2025 being significantly stronger than the previous year [52] Question: Timeframe for becoming a Rule of 40 company - Management indicated that achieving the Rule of 40 is a multi-year journey, likely taking 3 to 5 years [58] Question: Baseline growth expectations for next year - Management is optimistic about growth but will maintain a conservative approach in forecasting [70] Question: Customer acquisition costs for data vs transactional components - There is no material difference in customer acquisition costs between data and transactional components [90] Question: Transition of Medicx business from managed to self-service - The transition is largely complete, with growth in high-margin audience components being a focus [99]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $32.3 million, a 14% increase from $28.4 million in the same period of 2023, driven by increased DAAP-related revenue streams [20] - Gross margin improved from 62.9% in Q4 2023 to 68.2% in Q4 2024, attributed to a favorable solution and channel partner mix [20] - Net loss for Q4 2024 was $0.1 million, significantly reduced from a net loss of $4.1 million in Q4 2023 [22] - Non-GAAP net income for Q4 2024 was $5.5 million, or $0.30 per diluted share, compared to $4.6 million, or $0.26 per diluted share in the prior year [22] - Adjusted EBITDA for Q4 2024 was $8.8 million, up from $5.8 million in Q4 2023 [22] Business Line Data and Key Metrics Changes - Average revenue for the top 20 pharmaceutical manufacturers was $2.9 million, a 22% increase year-over-year [24] - The average revenue from the top five customers reached over $9 million in 2024, with plans to elevate at least one more customer to this level in 2025 [13] Market Data and Key Metrics Changes - The net revenue retention rate improved to 121%, up from 105% in the previous year [24] - Revenue per FTE increased to $701,000, compared to $586,000 in the prior year [24] Company Strategy and Development Direction - The company aims to transition to a subscription-based revenue model, particularly for the data component of its DAAP offerings, to enhance revenue predictability and customer retention [16][36] - The strategic focus includes operational excellence, customer centricity, and expanding the unique value proposition with pharmaceutical partners [6][7] - The company is targeting to become a "Rule of 40" company over the next several years, balancing growth and profitability [16][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in the market, citing strong momentum heading into 2025 and a commitment to under-promise and over-deliver [72] - The company is closely monitoring external factors, including FDA approvals, which could impact the pharmaceutical industry's ability to bring products to market [80] Other Important Information - The company completed the Medicx Health acquisition in Q4 2023, which is expected to drive further growth and operational efficiencies [21] - The total addressable market (TAM) is estimated at $10 billion, indicating significant growth potential in an underpenetrated market [17] Q&A Session Summary Question: Focus on customer centricity and strategy changes - Management emphasized increasing customer centricity and ensuring a pleasurable experience for clients, aiming to make it easier for them to renew and expand their business [30][31] Question: Impact of transitioning to subscription-based revenue - The transition to a subscription model is expected to create more predictable and recurring revenue, with a significant push towards this goal [35][36] Question: Gross margin expansion drivers - Gross margin expansion was driven by product mix, particularly from DAAP-related revenues, and while the current level is high, it may not be sustainable long-term [42][46] Question: Visibility into new deals and backlog - The company reported strong demand for new DAAP deals and improved visibility into contracted revenue for 2025, indicating a positive outlook [50][53] Question: Timeframe for becoming a Rule of 40 company - Management indicated that achieving the Rule of 40 is expected to take 3 to 5 years, with a focus on both top-line growth and EBITDA expansion [58][60] Question: Competitive environment and market dynamics - The competitive landscape is evolving, with new entrants in the DTC space, but the company maintains a strong position due to its unique ability to integrate HCP and DTC marketing [111][112]

Company Performance - OptimizeRx Corp. reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.26 per share a year ago, representing an earnings surprise of 20% [1] - The company posted revenues of $32.32 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9.58%, compared to year-ago revenues of $28.37 million [2] - Over the last four quarters, OptimizeRx has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Outlook - The stock has underperformed, losing about 14.8% since the beginning of the year, while the S&P 500 declined by 5.3% [3] - The current consensus EPS estimate for the coming quarter is -$0.05 on revenues of $21.28 million, and for the current fiscal year, it is $0.35 on revenues of $101.3 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 in the near future [6] Industry Context - The Computer - Software industry, to which OptimizeRx belongs, is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Q4 2024 revenue increased 14% year-over-year to $32.3 million, with full year revenue reaching $92.1 million, a 29% increase compared to 2023[3] - Q4 gross profit rose 23% year-over-year to $22.0 million, resulting in a gross margin of 68%[3] - Net revenue for the year ended December 31, 2024, increased to $92,127 million, up from $71,522 million in 2023, representing a growth of 28.8%[23] - Gross profit for the year ended December 31, 2024, was $59,378 million, compared to $42,900 million in 2023, reflecting a 38.4% increase[23] - Adjusted EBITDA for Q4 2024 was $8.8 million, a 53% increase from $5.8 million in Q4 2023, with full year Adjusted EBITDA at $11.7 million[7] - Adjusted EBITDA for the year ended December 31, 2024, was $11,730 million, compared to $3,574 million in 2023, representing a significant increase[29] - Non-GAAP net income for the year ended December 31, 2024, was $6,162 million, up from $4,425 million in 2023, showing a growth of 39.3%[29] Loss and Expenses - GAAP net loss for Q4 2024 was $(0.1) million, or $0.00 per share, while the full year net loss totaled $(20.1) million, or $(1.10) per share[7] - The net loss for the year ended December 31, 2024, was $20,110 million, compared to a net loss of $17,566 million in 2023, indicating a deterioration of 8.8%[23] - Total operating expenses for the year ended December 31, 2024, were $73,084 million, an increase from $69,302 million in 2023, marking a rise of 5.4%[23] - Stock-based compensation for the year ended December 31, 2024, was $11,467 million, down from $13,717 million in 2023, indicating a reduction of 16.4%[26] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were $13.4 million, with net cash provided by operating activities at $4.9 million for the year[7] - Cash provided by operating activities for the year ended December 31, 2024, was $4,889 million, a recovery from cash used of $7,240 million in 2023[26] - The company reported a cash and cash equivalents balance of $13,380 million at the end of the period, down from $13,852 million at the beginning of the period[26] Customer and Market Insights - Net revenue retention improved to 121% in 2024, up from 105% in 2023[2] - Average revenue per top 20 pharmaceutical manufacturer increased to $2,933,000 in 2024 from $2,399,000 in 2023[2] - The company generated revenue from 48 DAAP deals in 2024, up from 24 in 2023[3] - The company aims to transition DAAP customers to a subscription-based model to improve margins and reduce business cyclicality[2] Future Outlook - The company expects full year 2025 revenue to be at least $100 million, with Adjusted EBITDA of at least $12 million[5] - The weighted average number of shares outstanding for the year ended December 31, 2024, was 18,292,935, compared to 17,124,801 in 2023, reflecting an increase in shares[23]

Core Insights - OptimizeRx Corp. reported strong financial results for Q4 and full year 2024, exceeding expectations and consensus estimates, with a focus on leveraging its industry leadership to address critical challenges in the pharmaceutical sector [1][5][7] Financial Performance - Q4 revenue reached $32.3 million, a 14% increase year-over-year from $28.4 million in Q4 2023 [4][5] - Full year revenue for 2024 was $92.1 million, representing a 29% increase compared to $71.5 million in 2023 [5][21] - Q4 gross profit increased 23% year-over-year to $22.0 million, with a gross margin of 68% [4][5] - Full year gross profit totaled $59.4 million [5] - Non-GAAP net income for Q4 was $5.5 million, or $0.30 per diluted share, while for the full year it was $6.2 million, or $0.34 per diluted share [5][25] - Adjusted EBITDA for Q4 was $8.8 million, a 53% increase from $5.8 million in Q4 2023 [5][26] Key Performance Indicators - Average revenue per top 20 pharmaceutical manufacturer increased to $2.933 million in 2024 from $2.399 million in 2023 [2] - Net revenue retention improved to 121% in 2024 from 105% in 2023 [2] - The percentage of total revenue attributable to the top 20 pharmaceutical manufacturers was 64% in 2024, down from 67% in 2023 [2] Strategic Outlook - The company aims to achieve at least $100 million in revenue and an Adjusted EBITDA of at least $12 million for the full year 2025 [7] - A strategic focus on transitioning DAAP customers to a subscription-based model is expected to improve margins and reduce business cyclicality [1][5]

Core Points - OptimizeRx Corp. has received a notice from Whetstone Capital Advisors, LLC regarding the nomination of two candidates for the Board of Directors at the 2025 Annual Meeting of Stockholders [1] - The Board of Directors will provide a formal recommendation on the nominations in the definitive proxy statement to be filed with the SEC [2] Company Overview - OptimizeRx is a leading healthcare technology company that connects life science brands with patients and healthcare providers through innovative AI-driven tools [3] - The company focuses on patient-centric technology, ensuring meaningful interactions that deliver therapies to the right patients at the right time [4] Proxy Statement Information - OptimizeRx plans to file proxy materials with the SEC for the 2025 Annual Meeting, including a definitive proxy statement and a WHITE proxy card [6] - Stockholders are encouraged to read the proxy statement and related documents carefully when available, as they will contain important information [7] Participant Information - The company, its directors, and certain executive officers may be deemed "participants" in the proxy solicitation for the 2025 Annual Meeting [8]

Core Viewpoint - OptimizeRx Corp. has appointed Steve Silvestro as the new Chief Executive Officer, effective March 10, 2025, to lead the company into its next phase of growth and transformation [1][3]. Company Leadership - Steve Silvestro has over 20 years of experience in health technology and services, having joined OptimizeRx in 2019 as Chief Commercial Officer and later serving as President and interim CEO [2][4]. - The Board of Directors conducted a thorough search for the new CEO, resulting in a unanimous decision to appoint Silvestro, who has been pivotal in enhancing the company's brand relevance and capabilities [3]. Strategic Focus - Silvestro aims to differentiate OptimizeRx through technology and strategic partnerships, emphasizing operational excellence and customer satisfaction [3]. - The company has completed a strategic review of its business processes and is focused on increasing recurring revenue and becoming a "Rule of 40" company, which refers to a combined growth and profit margin of 40% [3]. Company Overview - OptimizeRx is a leading healthcare technology company that connects life science brands with patients and healthcare providers through innovative AI-driven tools [5][6]. - The company is headquartered in Waltham, Massachusetts, and partners with major pharmaceutical and life sciences companies to improve healthcare outcomes [6].

Core Viewpoint - OptimizeRx Corp. is set to discuss its full year fiscal 2024 financial results and fourth quarter results on March 12, 2025, indicating a focus on transparency and engagement with investors [1]. Group 1: Conference Call Details - The conference call will take place on March 12, 2025, at 8:30 a.m. Eastern Time [2]. - Participants can join via a toll-free number or an international line, with specific access details provided [2]. - A replay of the call will be available for 12 months on the company's investor relations website [3]. 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].

Company Leadership Transition - William J. Febbo, CEO of OptimizeRx, will depart the company effective December 31, 2024, to pursue other opportunities, while providing advisory services until March 31, 2025 [9] - Stephen Silvestro has been appointed as the interim CEO during the search for a new candidate, having previously served as Chief Commercial Officer and President [10] Company Growth and Strategy - OptimizeRx has experienced significant growth under Febbo's leadership, transforming from a single point of care product to an omnichannel platform, and is well-positioned for future growth [1] - The company reaffirms its financial guidance for the full year 2024, expecting to achieve results at the higher end of its revenue and adjusted EBITDA guidance range [2] Company Overview - OptimizeRx provides healthcare technology solutions that facilitate engagement between life sciences organizations, healthcare providers, and patients, connecting over 2 million U.S. healthcare providers through its digital point-of-care network [6]

Group 1: Earnings Performance - OptimizeRx Corp. reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and up from $0.09 per share a year ago, representing an earnings surprise of 100% [1] - The company posted revenues of $21.31 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 14.55%, compared to year-ago revenues of $16.33 million [2] - Over the last four quarters, OptimizeRx has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - OptimizeRx shares have declined approximately 59.2% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $37.55 million, and for the current fiscal year, it is $0.36 on revenues of $93.34 million [7] Group 3: Industry Context - The Computer - Software industry, to which OptimizeRx belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact OptimizeRx's stock performance [5]