OptimizeRx Corp. (Nasdaq: OPRX), a leading provider of digital
health solutions for life science companies, payers and providers,
reported results for the first quarter ended March 31, 2020.
Quarterly comparisons are to the same year-ago quarter.
Q1 2020 Financial
Highlights
- Total year over year revenue increased 46% to a record $7.6
million.
- Year over year gross profit increased 20% to $4.3 million.
- Cash and cash equivalents totaled $15.2 million at March 31,
2020.
Q1 2020 Operational
Highlights
- Secured several multi-million-dollar enterprise-level
engagements for access to OptimizeRx’s fully integrated
communications platform, further transitioning the company to a
recurring revenue model.
- OptimizeRx Innovation Lab launched first health technology
solution aimed at increasing speed-to-therapy for patients by
providing timely access to enrollment forms within the provider
workflow.
- Launched text message alert program that delivers coronavirus
information from the Centers for Disease Control and
Prevention. The alerts are distributed through the company’s
digital health information network used by leading electronic
health record providers.
- Announced appointment of Todd Inman as chief technology
officer, bringing to the position more than 30 years of experience
delivering innovations across the healthcare technology
industry.
- Introduced and hosted new webinar series covering a range of
topics around using digital health technology to improve patient
care, engagement and outcomes.
Q1 2020 Financial Summary
Total revenue in the first quarter of 2020
increased 46% to a record $7.6 million versus $5.2 million in the
same year-ago quarter. The quarterly increase was due to increased
sales of messaging solutions.
Gross margin decreased to 57.3% in the first
quarter of 2020 from 69.6% in the year-ago quarter. The decrease
was due to an unusually favorable product mix in the year-ago
period that had a high percentage of launch assistance services and
other nonrecurring revenue that was not subject to revenue share
expense. The company expects its gross margin to improve on a
quarter-over-quarter basis for the balance of the year.
Operating expenses totaled $6.6 million, up from
$3.5 million in the same year-ago quarter. The increase was related
to the company building a stronger base for future growth by
expanding its product line, building out its sales organization and
integrating two acquisitions over the last 18 months.
Net loss on a GAAP basis in the first quarter of
2020 was $2.2 million or $(0.15) per share, as compared to a net
income of $6,500 or $0.00 per share in the year-ago quarter.
Non-GAAP net loss for the first quarter of 2020
was $830,000 or $(0.06) per share, compared to non-GAAP net income
of $981,000 or $0.08 per share in the same year-ago period (see
definition of these non-GAAP measures and reconciliation to GAAP,
below).
While the company expects to return to
profitability as its revenue grows, expenses related to
investments in growth initiatives or non-cash charges could
result in a loss in any given quarter. Given the opportunity at
hand as discussed below, the company is focused on top-line growth
while maintaining a strong balance sheet.
Cash and cash equivalents totaled $15.2 million
at March 31, 2020, as compared to $18.9 million at December 31,
2019. The decrease was primarily due to cash used in operating
activities. The company has continued to operate debt-free and
expects to return to being cash-flow positive on a quarterly
basis.
Management Commentary
“Our top-line growth in the first quarter
demonstrates the confidence our clients have in our digital health
platform to deliver strong ROI, as well as validates the
investments we made last year in our commercial team and platform
extensions,” said OptimizeRx CEO, William Febbo. “Given the
disruption and uncertainty created by COVID-19, having digital
connectivity at the point-of-care has become even more relevant and
our solutions are positioned very well.
“We are seeing an accelerated adoption of our
platform, so clients can deliver critical information to providers
and patients when and where it is needed the most, to assure
adherence, affordability and effective care management.
“The connectivity to physicians we have
built-out over the years, along with a measure of exclusivity by
integrating our platform into leading EHR and e-prescribe systems,
is becoming a must-have access point for our clients. Today, we
reach 60% of the ambulatory market, and particularly at the point
of care where a provider delivers care and prescribes.
“Backed by years of strong return on investment
on programs, we have become deeply entrenched in our client base.
We currently work with the world’s top 20 pharmaceutical companies
and more than 60 other major clients – all of which have multiple
siloed businesses in need of our services. The trust we have earned
supports our continued shift to a SaaS-based, enterprise-level
recurring revenue model. In fact, we continue to receive positive
responses to proposals for enterprise-level engagements, which
presently have a combined average annualized contract value of more
than $3.6 million.
“We sit squarely in one of the fastest growing
segments of health technology, which is point-of-care
communications. This is where there is tremendous client demand for
greater connectivity that is effective, transparent and measurable.
Our addressable market is much larger today than even two months
ago given the sudden need and adoption for telehealth technology.
We are perfectly situated within this market, uniquely able to
effect digital communication among providers, patients and the
healthcare industry.
“Medical conferences, medical liaisons and live
advisory boards have all been disrupted during the COVID-19
pandemic. We see this driving greater demand for digital
communication that delivers mission-critical information, and
particularly for our suite of solutions which offers tremendous
value to all constituencies in healthcare.
“We also have strong tailwinds at our back. Most
of our clients have decided to proceed with new launches, mostly
due the complexities and costs around preparation, and as part of
an overall strategy designed to prevent any substantial disruption.
The FDA has committed to accelerating approvals of new medications
and indications, so many new novel therapies will be coming to
market over the coming months and years. We expect this to provide
a healthy pipeline of new opportunities.
“Looking out to the remainder of 2020, we will
be intensifying our focus on organic growth, increasing our market
share, and securing more recurring revenue through enterprise-level
engagements. We believe we have the team, platform and balance
sheet to unlock much more value for all our stakeholders, and keep
us on track for another year of strong growth and market
expansion.”
Conference Call
OptimizeRx management will host the
presentation, followed by a question and answer period.
Date: Monday May 4, 2020Time: 4:30 p.m. Eastern
time (1:30 p.m. Pacific time)Toll-free dial-in number:
1-800-458-4148International dial-in number:
1-323-794-2597Conference ID: 2817301
Please call the conference telephone number five
minutes prior to the start time. An operator will register your
name and organization. If you have any difficulty connecting with
the conference call, please contact CMA at 1-949-432-7566.
A replay of the call will be available after
7:30 p.m. Eastern time on the same day through May 25, 2020, as
well as available for replay via the Investors section of the
OptimizeRx website at optimizerx.com/investors.
Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Replay ID:
2817301
Definition and Use of Non-GAAP Financial
MeasuresThis 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 months
periods ended March 31, 2020 and 2019.
About
OptimizeRx®OptimizeRx Corporation (NASDAQ: OPRX)
is a digital health company that facilitates communication at
point-of-care among all stakeholders in healthcare. Primarily
focused on life science and payer clients, its suite of digital and
mobile SaaS-based solutions enables affordability, patient
adherence and care management. OptimizeRx’s network reaches more
than 60% of U.S. ambulatory providers, delivering therapeutic
support on specialty medications and patient financial assistance
directly within a provider’s workflow through leading electronic
health platforms. OptimizeRx’s fully integrated platform supports
the real-time exchange of information, improving provider knowledge
and patient engagement, and ultimately leading to healthier
outcomes.
For more information, go to OptimizeRx.com, and
follow the company on Twitter and LinkedIn.
Important Cautions Regarding Forward
Looking StatementsThis 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 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 Doug Baker,
CFOTel (248) 651-6568 x807 dbaker@optimizerx.com
Media Relations Contact Maira
Alejandra, Media Relations ManagerTel (754) 245-7070
malejandra@optimizerx.com
Investor Relations Contact Ron
Both or Grant StudeCMA Investor RelationsTel (949) 432-7557
oprx@cma.team
OPTIMIZERX
CORPORATIONCONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
15,210,069 |
|
|
$ |
18,852,680 |
|
Accounts receivable, net |
|
9,061,520 |
|
|
|
7,418,025 |
|
Prepaid expenses |
|
3,035,205 |
|
|
|
871,043 |
|
Total Current Assets |
|
27,306,794 |
|
|
|
27,141,748 |
|
Property and equipment,
net |
|
170,123 |
|
|
|
176,014 |
|
Other Assets |
|
|
|
|
|
|
|
Goodwill |
|
14,740,031 |
|
|
|
14,740,031 |
|
Technology assets, net |
|
5,980,607 |
|
|
|
6,238,453 |
|
Patent Rights, net |
2,496,498 |
2,550,587 |
Right of use assets, net |
|
531,844 |
|
|
|
559,863 |
|
Other intangible assets, net |
|
4,993,215 |
|
|
|
5,151,102 |
|
Security deposits and other assets |
16,013 |
80,727 |
Total Other Assets |
|
28,758,208 |
|
|
|
29,320,763 |
|
TOTAL ASSETS |
$ |
56,235,125 |
|
|
$ |
56,638,525 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Accounts payable – trade |
$ |
548,100 |
|
|
$ |
492,995 |
|
Accrued expenses |
|
1,674,477 |
|
|
|
1,800,635 |
|
Revenue share payable |
|
2,640,249 |
|
|
|
1,618,438 |
|
Current portion of lease obligations |
|
117,479 |
|
|
|
115,431 |
|
Current portion of contingent purchase price payable |
|
4,000,000 |
|
|
|
1,500,000 |
|
Deferred revenue |
|
491,438 |
|
|
|
580,014 |
|
Total Current Liabilities |
|
9,471,743 |
|
|
|
6,107,513 |
|
Non-current Liabilities |
|
|
|
|
|
|
|
Lease obligations, net of current portion |
|
418,390 |
|
|
|
448,753 |
|
Contingent purchase price payable, net of current portion |
|
2,720,000 |
|
|
|
5,220,000 |
|
Total Non-current liabilities |
|
3,138,390 |
|
|
|
5,668,753 |
|
Total Liabilities |
|
12,610,133 |
|
|
|
11,776,266 |
|
Commitments and
contingencies |
|
- |
|
|
|
- |
|
Stockholders’ Equity |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 shares authorized,
none issued and outstanding at March 31, 2020 or December 31,
2019 |
|
- |
|
|
|
- |
|
Common stock, $0.001 par value, 166,666,667 shares authorized,
14,646,747 and 14,600,579 shares issued and outstanding at March
31, 2020 and December 31, 2019, respectively |
|
14,647 |
|
|
|
14,601 |
|
Additional paid-in-capital |
|
79,238,886 |
|
|
|
78,272,268 |
|
Accumulated deficit |
|
(35,628,541 |
) |
|
|
(33,424,610 |
) |
Total Stockholders’ Equity |
|
43,624,992 |
|
|
|
44,862,259 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
56,235,125 |
|
|
$ |
56,638,525 |
|
|
|
|
|
|
|
|
|
OPTIMIZERx
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
|
|
|
|
For the Three Months Ended March 31, |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
TOTAL REVENUE |
$ |
7,584,602 |
|
|
$ |
5,209,434 |
|
COST OF REVENUES |
|
3,241,763 |
|
|
|
1,583,480 |
|
|
|
|
|
|
|
|
|
GROSS MARGIN |
|
4,342,839 |
|
|
|
3,625,954 |
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
6,602,091 |
|
|
|
3,493,789 |
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM OPERATIONS |
|
(2,259,252 |
) |
|
|
132,165 |
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
Interest Income |
|
55,321 |
|
|
|
22,364 |
|
Change in Fair Value of Contingent Consideration |
|
- |
|
|
|
(148,000 |
) |
Interest (Expense) |
|
- |
|
|
|
- |
|
TOTAL OTHER INCOME (EXPENSE) |
|
55,321 |
|
|
|
(125,636 |
) |
INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES |
|
(2,203,931 |
) |
|
|
6,529 |
|
PROVISION FOR INCOME
TAXES |
|
- |
|
|
|
- |
|
NET INCOME (LOSS) |
$ |
(2,203,931 |
) |
|
$ |
6,529 |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC |
|
14,609,499 |
|
|
|
12,077,829 |
|
DILUTED |
|
14,609,499 |
|
|
|
13,077,917 |
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC |
$ |
(0.15 |
) |
|
$ |
0.00 |
|
DILUTED |
$ |
(0.15 |
) |
|
$ |
0.00 |
|
|
|
|
|
|
|
|
|
OPTIMIZERx
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
|
|
|
|
For the Three Months Ended March 31, |
|
|
2020 |
|
|
2019 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
Net Income (loss) |
$ |
(2,203,931 |
) |
|
$ |
6,529 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
|
|
Depreciation, amortization and non-cash lease expense |
|
519,669 |
|
|
|
190,301 |
|
Stock-based compensation |
|
754,512 |
|
|
|
530,312 |
|
Stock issued for board service |
|
100,000 |
|
|
|
106,034 |
|
Change in fair value of contingent consideration |
|
- |
|
|
|
148,000 |
|
Changes in: |
|
|
|
|
|
|
|
Accounts receivable |
|
(1,643,495 |
) |
|
|
1,554,953 |
|
Prepaid expenses and other assets |
|
(2,099,448 |
) |
|
|
(44,201 |
) |
Accounts payable |
|
55,105 |
|
|
|
173,810 |
|
Revenue share payable |
|
1,021,811 |
|
|
|
(776,514 |
) |
Accrued expenses and other liabilities |
|
(154,473 |
) |
|
|
(1,034,454 |
) |
Deferred revenue |
|
(88,576 |
) |
|
|
35,199 |
|
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES |
|
(3,738,826 |
) |
|
|
889,969 |
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Purchase of equipment |
|
(15,937 |
) |
|
|
(13,848 |
) |
NET CASH USED IN INVESTING
ACTIVITIES |
|
(15,937 |
) |
|
|
(13,848 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS PROVIDED BY
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from exercise
of stock options |
|
112,152 |
|
|
|
343,785 |
|
NET CASH PROVIDED BY FINANCING
ACTIVITIES |
|
112,152 |
|
|
|
343,785 |
|
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
(3,642,611 |
) |
|
|
1,219,906 |
|
CASH AND CASH EQUIVALENTS -
BEGINNING OF PERIOD |
|
18,852,680 |
|
|
|
8,914,034 |
|
CASH AND CASH EQUIVALENTS -
END OF PERIOD |
$ |
15,210,069 |
|
|
$ |
10,133,940 |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION: |
|
|
|
|
|
|
|
Cash paid for interest |
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
$ |
- |
|
|
$ |
- |
|
Non-cash effect of cumulative adjustments to accumulated
deficit |
$ |
- |
|
|
$ |
3,229 |
|
Lease liabilities arising from right of use assets |
$ |
- |
|
|
$ |
207,559 |
|
|
|
|
|
|
|
|
|
OPTIMIZERx
CORPORATIONReconciliation of non-GAAP to GAAP
Financial Measures(Unaudited)
|
|
|
|
For the Three Months Ended March
31, |
|
|
|
2020 |
|
|
|
2019 |
|
Net income (loss) |
$ |
(2,203,931 |
) |
|
$ |
6,529 |
|
Depreciation and
amortization |
|
519,669 |
|
|
|
190,501 |
|
Stock-based compensation |
|
854,512 |
|
|
|
636,346 |
|
Loss related to the fair value
of contingent consideration |
|
- |
|
|
|
148,000 |
|
Non-GAAP net income
(loss) |
$ |
(829,750 |
) |
|
$ |
981,376 |
|
|
|
|
|
|
Non-GAAP net income (loss) per
share |
|
|
|
|
Basic |
$ |
(0.06 |
) |
|
$ |
0.08 |
|
Diluted |
$ |
(0.06 |
) |
|
$ |
0.08 |
|
Weighted average shares
outstanding: |
|
|
|
|
Basic |
|
14,609,499 |
|
|
|
12,077,829 |
|
Diluted |
|
14,609,499 |
|
|
|
13,077,917 |
|
OptimizeRx (NASDAQ:OPRX)
過去 株価チャート
から 6 2024 まで 7 2024
OptimizeRx (NASDAQ:OPRX)
過去 株価チャート
から 7 2023 まで 7 2024