OptimizeRx Corp. (Nasdaq: OPRX), a leading provider of digital
health solutions for life science companies, reported results for
the three and nine months ended September 30, 2020. Quarterly and
nine months comparisons are to the same year-ago period.
Financial Highlights
- Revenue in the third quarter of 2020
increased 110% to a record $10.5 million, with the first nine
months of 2020 up 56% to a record $26.9 million.
- Gross profit in the third quarter of
2020 increased 99% to $6.0 million.
- GAAP net loss totaled $0.3 million
or $(0.02) per share in the third quarter, with non-GAAP net income
at $1.1 million or $0.07 per share (see definition of this non-GAAP
measure and reconciliation to GAAP, below).
- Cash and cash equivalents totaled
$12.0 million at September 30, 2020.
- Closed additional enterprise deals,
bringing total value of enterprise-level engagements to $21 million
in annualized revenue.
Q3 2020
Operational Highlights
- Expanded direct-to-patient reach via
partnership with Epion Health, a leader in digital patient
engagement solutions, allowing patients at health systems and
medical groups across the nation access to the OptimizeRx digital
health and communications platform.
- Partnered with Higi, a consumer
healthcare technology and engagement company, to provide healthcare
consumers with financial assistance and treatment support programs
at point-of-dispense. Higi provides OptimizeRx access to more than
10,000 self-service health stations nationwide that allow consumers
to measure, track and act on their health data.
- Expanded digital health
communication network in collaboration with Change Healthcare to
enable providers in the Change Healthcare network to digitally
receive important information from the life sciences industry via
OptimizeRx.
- Secured two SaaS-based
enterprise-level engagements with a combined annual contract value
of $3.6 million.
- Enhanced corporate governance with
the addition of Greg Wasson, former president and CEO of Walgreens
Boots Alliance, to the board of directors.
- Continued webinar series featuring
industry thought leaders discussing innovative ideas for improving
medication launches.
Q3 2020
Financial Summary
Total revenue in the third quarter of 2020 increased 110% to a
record $10.5 million versus $5.0 million in the same year-ago
quarter. The quarterly increase was due to increases in sales in
the company’s messaging products and patient engagement products,
including from its acquisition of RMDY Health in 2019.
Gross margin decreased to 57.1% in the third quarter of 2020 as
compared to 60.4% in the year-ago quarter. The decrease was related
to a change in mix of services provided. The company expects gross
margin to improve in the fourth quarter with a target of 60% for
the year.
Operating expenses totaled $6.2 million, up from $5.0 million in
the same year-ago quarter. The increase was due to the company’s
efforts to expand its product line and build out its organization
for future growth.
Net loss on a GAAP basis in the third quarter of 2020 was $0.3
million or $(0.02) per share, as compared to a net loss of $1.6
million or $(0.11) per share in the third quarter of 2019.
Non-GAAP net income for the third quarter of 2020 was $1.1
million or $0.07 per share, compared to non-GAAP net loss of $0.9
million or $(0.07) per diluted 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 GAAP
profitability as its revenue grows, expenses related to
investments in growth initiatives or non-cash charges could
result in a GAAP loss in any given quarter. Given the opportunity
at hand as discussed below, the company continues to be focused on
top-line growth while maintaining a strong balance sheet.
Cash and cash equivalents totaled $12.0 million at September 30,
2020, as compared to $14.1 million at June 30, 2020. The decrease
was due to an increased investment in working capital. The company
has continued to operate debt-free and expects to be cash-flow
positive for the remainder of the year.
Management Commentary
“In Q3, we realized triple digit revenue growth, mostly organic,
which drove strong non-GAAP net income,” stated OptimizeRx CEO,
William Febbo. “It reflects how our pharma clients are increasingly
seeing the point-of-care as essential to their marketing
spend.”
“We also continued to see a growing proportion of
enterprise-level recurring revenue and growing interest from our
customer base for our new solutions, such as patient engagement,
hub enrollment and TelaRep™. We finalized our integration and
go-forward plan for patient engagement, which provides additional
scale for driving growth in recurring revenue. It also opens up
access to additional budgets within our client base and supports
improved gross margins over time.
“We expanded our platform reach during the quarter via our Higi
and Epion partnerships that connect us digitally to millions of new
patients. We see ourselves at just the beginning of a broad
expansion into retail or point-of-dispense as another channel to
enable affordability and adherence. Both of these partnerships
are very timely, as we are all looking for ways to connect
digitally at more points in the healthcare workflow and maximize
access to care.
“We are seeing more rapid adoption of digital tools for
doctors to combat the COVID disruption. Macro trends are in
our favor as highlighted by the rapid adoption of
telehealth and other digital tools. A clear theme forming
is the need for the appropriate digital tools for doctors
to maintain their practices with under such drastic
disruptions occurring with the pandemic. This allows for our
solutions to be highlighted as an effective tool
set to help deliver care to patients.
“Looking ahead, we are on track for a strong annual growth rate,
non-GAAP income and positive cash flow from operational activities.
Our pipeline is better than it has ever been, currently sitting at
$140 million, nearly double versus this time last year. We
continue to anticipate a close rate in the range of 35
percent to 50 percent, with these prospects keeping us on pace for
another year of record growth in an expanding addressable
market.”
Conference Call
OptimizeRx management will host the presentation, followed by a
question and answer period.
Date: Monday, November 9, 2020Time: 4:30 p.m. Eastern time (1:30
p.m. Pacific time)Toll-free dial-in number:
1-800-430-8332International dial-in number:
1-323-347-3277Conference ID: 9818386
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 November 30, 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: 9818386
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, non-cash lease expense, 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 and nine
months ended September 30, 2020 and 2019.
About OptimizeRxOptimizeRx Corporation (NASDAQ:
OPRX) is a digital health company that facilitates communication at
the 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, follow the company
on Twitter, LinkedIn or
visit www.optimizerx.com.
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.
Company Contact Doug Baker, CFOTel (248)
651-6568 x807 dbaker@optimizerx.com
Media 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 (UNAUDITED)
|
September 30, 2020 |
|
|
December 31, 2019 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
12,032,538 |
|
|
$ |
18,852,680 |
|
Accounts receivable, net |
|
13,332,552 |
|
|
|
7,418,025 |
|
Prepaid expenses |
|
1,867,590 |
|
|
|
871,043 |
|
Total Current Assets |
|
27,232,680 |
|
|
|
27,141,748 |
|
Property and equipment,
net |
|
151,809 |
|
|
|
176,014 |
|
Other Assets |
|
|
|
|
|
|
|
Goodwill |
|
14,740,031 |
|
|
|
14,740,031 |
|
Technology assets, net |
|
5,464,916 |
|
|
|
6,238,453 |
|
Patent rights, net |
|
2,388,320 |
|
|
|
2,550,587 |
|
Other intangible assets, net |
|
4,677,439 |
|
|
|
5,151,102 |
|
Right of use assets, net |
|
474,906 |
|
|
|
559,863 |
|
Other assets and deposits |
|
16,013 |
|
|
|
80,727 |
|
Total Other Assets |
|
27,761,625 |
|
|
|
29,320,763 |
|
TOTAL ASSETS |
$ |
55,146,114 |
|
|
$ |
56,638,525 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
Accounts payable – trade |
$ |
480,502 |
|
|
$ |
492,995 |
|
Accrued expenses |
|
1,794,019 |
|
|
|
1,800,635 |
|
Revenue share payable |
|
3,642,088 |
|
|
|
1,618,438 |
|
Current portion of lease obligations |
|
121,583 |
|
|
|
115.431 |
|
Current portion of contingent purchase price payable |
|
1,610,813 |
|
|
|
1,500,000 |
|
Deferred revenue |
|
461,277 |
|
|
|
580,014 |
|
Total Current Liabilities |
|
8,110,282 |
|
|
|
6,107,513 |
|
Non-current Liabilities |
|
|
|
|
|
|
|
Lease obligations, net of current portion |
|
356,618 |
|
|
|
448,753 |
|
Contingent purchase price payable, net of current portion |
|
- |
|
|
|
5,220,000 |
|
Total Non-current Liabilities |
|
356,618 |
|
|
|
5,668,753 |
|
Total Liabilities |
|
8,466,900 |
|
|
|
11,776,266 |
|
Commitments and
contingencies |
|
- |
|
|
|
- |
|
Stockholders’ Equity |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no
issued and outstanding at September 30, 2020 or December 31,
2019 |
|
- |
|
|
|
- |
|
Common stock, $0.001 par value, 500,000,000 shares authorized,
15,072,226 and 14,600,579 shares issued and outstanding at
September 30, 2020 and December 31, 2019, respectively |
|
15,072 |
|
|
|
14,601 |
|
Additional paid-in-capital |
|
83,653,045 |
|
|
|
78,272,268 |
|
Accumulated deficit |
|
(36,988,903 |
) |
|
|
(33,424,610 |
) |
Total Stockholders’
Equity |
|
46,679,214 |
|
|
|
44,862,259 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
55,146,114 |
|
|
$ |
56,638,525 |
|
|
|
|
|
|
|
|
|
OPTIMIZERx
CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF
OPERATIONS(UNAUDITED)
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUE |
$ |
10,519,191 |
|
|
$ |
5,002,767 |
|
|
$ |
26,887,022 |
|
|
$ |
17,218,492 |
|
COST OF REVENUES |
|
4,504,844 |
|
|
|
1,981,143 |
|
|
|
11,385,622 |
|
|
|
6,251,766 |
|
GROSS MARGIN |
|
6,014,347 |
|
|
|
3,021,624 |
|
|
|
15,501,400 |
|
|
|
10,966,726 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
6,191,069 |
|
|
|
5,008,934 |
|
|
|
18,993,187 |
|
|
|
12,341,827 |
|
LOSS FROM OPERATIONS |
|
(176,722 |
) |
|
|
(1,987,310 |
) |
|
|
(3,491,787 |
) |
|
|
(1,375,101 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
4,218 |
|
|
|
136,368 |
|
|
|
67,884 |
|
|
|
192,305 |
|
Change in fair value of contingent consideration |
|
(110,390 |
) |
|
|
280,000 |
|
|
|
(140,390 |
) |
|
|
25,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL OTHER INCOME (EXPENSE) |
|
(106,172 |
) |
|
|
416,368 |
|
|
|
(72,506 |
) |
|
|
217,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION FOR
INCOME TAXES |
|
(282,894 |
) |
|
|
(1,570,942 |
) |
|
|
(3,564,293 |
) |
|
|
(1,157,796 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
NET INCOME (LOSS) |
$ |
(282,894 |
) |
|
$ |
(1,570,942 |
) |
|
$ |
(3,564,293 |
) |
|
$ |
(1,157,796 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES
OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC |
|
14,900,971 |
|
|
|
14,146,489 |
|
|
|
14,726,534 |
|
|
|
12,996,590 |
|
DILUTED |
|
14,900,971 |
|
|
|
14,146,489 |
|
|
|
14,726,534 |
|
|
|
12,996,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC |
$ |
(0.02 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.09 |
) |
DILUTED |
$ |
(0.02 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPTIMIZERx
CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS(UNAUDITED)
|
For the Nine Months Ended September
30, |
|
|
2020 |
|
|
2019 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
Net Loss |
$ |
(3,564,293 |
) |
|
$ |
(1,157,796 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation, amortization, and non-cash lease expense |
|
1,563,883 |
|
|
|
745,928 |
|
Stock-based compensation |
|
2,066,609 |
|
|
|
1,407,938 |
|
Stock issued as board compensation |
|
325,011 |
|
|
|
361,782 |
|
Provision for loss on accounts receivable |
|
80,000 |
|
|
|
- |
|
Change in fair value of contingent consideration |
|
140,390 |
|
|
|
(25,000 |
) |
Changes in: |
|
|
|
|
|
|
|
Accounts receivable |
|
(5,994,527 |
) |
|
|
(700,549 |
) |
Prepaid expenses and other assets |
|
(931,833 |
) |
|
|
(469,623 |
) |
Accounts payable |
|
(12,493 |
) |
|
|
184,464 |
|
Revenue share payable |
|
2,023,650 |
|
|
|
(240,329 |
) |
Accrued expenses and other liabilities |
|
704,599 |
|
|
|
(772,953 |
) |
Deferred revenue |
|
(118,737 |
) |
|
|
505,279 |
|
NET CASH USED IN OPERATING
ACTIVITIES |
|
(3,717,781 |
) |
|
|
(160,859 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
Purchase of equipment |
|
(45,254 |
) |
|
|
(61,457 |
) |
Purchase of intangible assets |
|
- |
|
|
|
(1,000,000 |
) |
NET CASH USED IN INVESTING
ACTIVITIES |
|
(45,254 |
) |
|
|
(1,061,457 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
Proceeds from issuance of common stock, net of commission
costs |
|
1,332,080 |
|
|
|
22,369,960 |
|
Expenses related to issuance cost of common stock |
|
- |
|
|
|
(301,711 |
) |
Payment of contingent consideration |
|
(4,389,187 |
) |
|
|
- |
|
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES |
|
(3,057,107 |
) |
|
|
22,068,249 |
|
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
(6,820,142 |
) |
|
|
20,845,933 |
|
CASH AND CASH EQUIVALENTS –
BEGINNING OF PERIOD |
|
18,852,680 |
|
|
|
8,914,034 |
|
CASH AND CASH EQUIVALENTS –
END OF PERIOD |
$ |
12,032,538 |
|
|
$ |
29,759,967 |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION: |
|
|
|
|
|
|
|
Cash paid for interest |
$ |
- |
|
|
$ |
- |
|
Cash paid for income taxes |
$ |
- |
|
|
$ |
- |
|
Intangible asset additions included in accounts payable |
$ |
- |
|
|
$ |
500,000 |
|
Acquisition liabilities paid in common stock |
$ |
1,550,000 |
|
|
$ |
- |
|
Non-cash effect of cumulative adjustments to accumulated
deficit |
$ |
- |
|
|
$ |
3,229 |
|
Lease liabilities arising from right of use assets |
$ |
- |
|
|
$ |
672,809 |
|
|
|
|
|
|
|
|
|
OPTIMIZERx
CORPORATIONReconciliation of non-GAAP to
GAAP Financial Measures(Unaudited)
|
For the Three Months
Ended September 30, |
|
For the Nine MonthsEnded September
30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Net loss |
$ |
(282,894 |
) |
|
$ |
(1,570,942 |
) |
|
$ |
(3,564,293 |
) |
|
$ |
(1,157,796 |
) |
Depreciation, amortization,
and non-cash lease expense |
|
523,420 |
|
|
|
320,055 |
|
|
|
1,563,883 |
|
|
|
745,928 |
|
Stock-based compensation |
|
756,437 |
|
|
|
590,244 |
|
|
|
2,391,619 |
|
|
|
1,769,720 |
|
Income or loss related to the
fair value of contingent consideration |
|
110,390 |
|
|
|
(280,000 |
) |
|
|
140,390 |
|
|
|
(25,000 |
) |
Non-GAAP net income
(loss) |
$ |
1,107,353 |
|
|
$ |
(940,643 |
) |
|
$ |
531,599 |
|
|
$ |
1,332,852 |
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per
share |
|
|
|
|
|
|
|
Basic |
$ |
0.07 |
|
|
$ |
(0.07 |
) |
|
$ |
0.04 |
|
|
$ |
0.10 |
|
Diluted |
$ |
0.07 |
|
|
$ |
(0.07 |
) |
|
$ |
0.03 |
|
|
$ |
0.10 |
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
14,900,971 |
|
|
|
14,146,489 |
|
|
|
14,726,534 |
|
|
|
12,996,590 |
|
Diluted |
|
15,996,241 |
|
|
|
14,146,489 |
|
|
|
15,640,050 |
|
|
|
13,952,330 |
|
|
|
|
|
|
|
|
|
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