Home News OptimizeRx Reports Fourth Quarter and Full Year 2021

OptimizeRx Reports Fourth Quarter and Full Year 2021

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  • Fourth quarter revenue Up 24% to $20.3 million, gross profit margin of 61%
  • Introduction of key performance indicators (KPIs) representing “land and expand” strategy with key customer accounts
  • Cash flow positive from operations of $0.7 million in 2021

ROCHESTER, Mich., Feb. 24, 2022 (GLOBE NEWSWIRE) — OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of point-of-care technology solutions helping patients start and stay on therapy, reported results for the fourth quarter and full year ended December 31, 2021.

Key Performance Indicators (KPIs)*    FY21  FY20   
Average revenue per top 20 pharmaceutical manufacturers    $2.5M  $1.9M   
Percent top 20 pharmaceutical manufacturers that are clients  95 % 85 %  
Top 20 pharmaceutical percent of total net revenues 77 % 76 %  
Net revenue retention  127%    160 %  
Revenue per average FTE   $730K  $614K   

Financial Highlights

  • Revenue in the fourth quarter of 2021 increased 24% to a record $20.3 million, from $16.4 million in the same period of 2020, with the full year of 2021 up 42% to a record $61.3 million as compared to the same year-ago period.
  • Gross profit in the fourth quarter of 2021 increased 44% to $12.4 million as compared to the same year-ago period.
  • Gross profit margin in the fourth quarter of 2021 increased to 61.0% from 52.4% as compared to the same year-ago period.
  • GAAP net income totaled $0.6 million or $0.04 and $0.03 per basic and fully diluted share in the fourth quarter as compared to a net income of $1.4 million or $0.09 and $0.08 per basic and diluted share in the year ago period.
  • Non-GAAP net income in the fourth quarter totaled $4.0 million or $0.23 and $0.22 per basic and fully diluted share respectively (see definition of this non-GAAP measure and reconciliation to GAAP, below).
  • Cash and cash equivalents totaled $84.7 million as of December 31, 2021 as compared to $85.1 million as of September 30, 2021.

Operational Highlights

  • The Company’s evidence-based physician engagement solution named “One of the Most Innovative Products of the Year” by PM360
  • Ranked among fastest-growing companies in North America on the 2021 Deloitte Technology Fast 500™ list for the second consecutive year
  • Recognized by the Financial Times as one of Americas’ Fastest-Growing Companies for the second consecutive year
  • Recognized by “Digital Health Awards® Fall 2021” for TelaRep™ and the Company’s COVID-19 text message campaign
  • Hosted second annual Innovate4Outcomes™ event, addressing patient access challenges, in partnership with Reuters Events, I AM ALS, and RESOLVE: The National Infertility Association
  • Published open letter to shareholders detailing completion of internal management changes
  • Published an analysis of how predictive analytics solution created new opportunities to Life Sciences to address delayed diagnosis and other challenges in Multiple Sclerosis (MS)

Management Commentary
Will Febbo, OptimizeRx CEO commented, “We are addressing healthcare’s digital shift by putting innovation to work on behalf of our clients’ needs. We remain committed to the scalability and depth of our technology, and the deepening of relationships with key client accounts. This effort has been propelled by the successful implementation of a strategic series of platform enhancements — resulting in the stepwise adoption of AI, data analytics, and contextual real-world evidence solutions in 2021.

“Our purpose-built technology enables our teams to deliver solutions over a single platform, simplifying connectivity between life sciences organizations, patients, and physicians along critical touchpoints of a patient’s care journey. We have also recently added key performance indicators against which to measure our results as we move into the new year, better staffed, and better equipped to transform patient access, adherence, and outcomes across the entire care continuum,” concluded Mr. Febbo.

Q4 2021 Financial Summary
Total revenue reported for the three months ended December 31, 2021 was $20.3 million, an increase of 24% over the approximately $16.4 million from the same period in 2020. The increased revenue resulted from growth in sales across our access, adherence and affordability solutions.

Gross margin was 61%, which increased from the year-ago quarter (52.4% year ago period). This is the result of solution and channel mix.

Operating expenses increased to $11.8 million as compared to $7.2 million in the same year-ago quarter. The increase in operating expenses was primarily related to salaries, stock-based compensation, wages and benefits, and other human resources-related costs as we invested in the expansion of our team to support future growth by expanding our commercial activities and enhancing and growing our solution offerings.

Net Income on a GAAP basis was $0.6 million or $0.04 and $0.03 per basic and diluted share, as compared to a net income of $1.4 million or $0.09 and $0.08 on a basic and fully diluted basis in the fourth quarter of 2020.

Non-GAAP net income was $4.0 million or $0.23 and $0.22 per basic and fully diluted shares outstanding, compared to non-GAAP net income of $2.7 million or $0.18 and $0.16 on a basic and fully diluted basis for the same year-ago period (see definition of this non-GAAP measure and reconciliation to GAAP, below).

Cash and cash equivalents totaled $84.7 million as of December 31, 2021, as compared to $85.1 million as of September 30, 2021.

2022 Financial Outlook
For the full year 2022, the Company expects net revenues of $80 million to $85 million, representing year-over-year growth of 31% to 39%, respectively. Gross margins for 2022 are expected to be relatively constant year-over-year and are expected to come in between 57% and 60%.

The Company expects revenue growth will align closely with continued progress on the KPIs introduced above and will be driven by its “land and expand” strategy through obtaining new customers and growing its existing clients’ share of wallet by increasing the number of solutions each brand leverages, the number of brands supported and the overall utilization of its platform.

Conference Call
OptimizeRx management will host the presentation, followed by a question-and-answer period.

Please call the conference telephone number five minutes prior to the start time.

A replay of the call will remain available for 12 months via the Investors section of the OptimizeRx website at www.optimizerx.com/investors.

Definition and Use of Non-GAAP Financial Measures
This 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 fourth quarter and full year ended December 31, 2021 and 2020.

Definition of Key Performance Indicators*
Top 20 pharmaceutical manufacturers: Top 20 pharmaceutical manufacturers are based on Fierce Pharma’s “The top 20 pharma companies by 2020 revenue.”

Net revenue retention: Net revenue retention is a comparison of revenue generated from all clients in the previous period to total revenue generated from the same clients in the following year (i.e., excludes new client relationships for the most recent year).

Revenue per average Full Time Employee: We define revenue per average full-time employee (FTE) as total revenue over the last 12 months (LTM) divided by the average number of employees over the LTM, which is calculated by taking our total number of FTEs at the end of the prior year period by our total FTE headcount at the end of the most recent.

About OptimizeRx
OptimizeRx is the best-in-class health technology company enabling care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. Connecting over 60% of U.S. healthcare providers and millions of their patients through a technology platform embedded within a proprietary point-of-care network, OptimizeRx helps patients start and stay on their medications.

For more information, follow the Company on TwitterLinkedIn or visit www.optimizerx.com

Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipates”, “believes”, “estimates”, “expects”, “forecasts”, “intends”, “plans”, “projects”, “targets”, “designed”, “could”, “may”, “should”, “will” or other similar words and expressions are intended to identify these forward-looking statements. All statements that reflect the Company’s expectations, assumptions, projections, beliefs, or opinions about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements relating to the Company’s growth, business plans and future performance. These forward-looking statements are based on the Company’s current expectations and assumptions regarding the Company’s business, the economy, and other future conditions. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise, except as required by applicable law. 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 risks summarized in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its subsequent Quarterly Reports on Form 10-Q, and its other filings with the Securities and Exchange Commission.

OptimizeRx Contact
Andy D’Silva, SVP Corporate Finance
adsilva@optimizerx.com        

Media Relations Contact 
Maira Alejandra, Media Relations Manager
malejandra@optimizerx.com        

Investor Relations Contact
Ashley Robinson
LifeSci Advisors, LLC
arr@lifesciadvisors.com
        

OPTIMIZERX CORPORATION
CONSOLIDATED BALANCE SHEETS

    December 31,
2021
    December 31,
2020
 
ASSETS                
                 
Current Assets                
Cash and cash equivalents   $ 84,681,770     $ 10,516,776  
Accounts receivable, net     24,800,585       17,885,705  
Prepaid expenses     5,630,655       4,456,611  
Total Current Assets     115,113,010       32,859,092  
Property and equipment, net     143,818       148,854  
Other Assets                
Goodwill     14,740,031       14,740,031  
Technology assets, net     4,589,126       5,251,822  
Patent rights, net     2,155,026       2,349,570  
Right of use assets, net     328,820       445,974  
Other intangible assets, net     3,902,502       4,519,552  
Security deposits and other assets     12,859       12,859  
Total Other Assets     25,728,364       27,319,808  
TOTAL ASSETS   $ 140,985,192     $ 60,327,754  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
Current Liabilities                
Accounts payable – trade   $ 606,808     $ 618,250  
Accrued expenses     2,902,836       2,420,361  
Revenue share payable     4,378,216       4,969,868  
Current portion of lease liabilities     90,982       123,220  
Contingent purchase price payable           1,610,813  
Deferred revenue     1,389,907       285,795  
Total Current Liabilities     9,368,749       10,028,307  
Non-current Liabilities                
   Lease liabilities, net of current portion     236,726       325,533  
Total Liabilities     9,605,475       10,353,840  
Commitments and contingencies (See Note 14)                
Stockholders’ Equity                
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding at December 31, 2021 and 2020,            
Common stock, $0.001 par value, 166,666,667 shares authorized, 17,860,975 and 15,223,340 shares issued and outstanding at December 31, 2021 and 2020, respectively     17,861       15,223  
Additional paid-in-capital     166,615,514       85,590,428  
Accumulated deficit     (35,253,658 )     (35,631,737 )
Total Stockholders’ Equity     131,379,717       49,973,914  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 140,985,192     $ 60,327,754  

The accompanying notes are an integral part of these condensed consolidated financial statements. 

OPTIMIZERx CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

    For the
year ended
December 31,
2021
    For the
year ended
December 31,
2020
 
             
Revenue   $ 61,292,598     $ 43,313,323    
Cost of revenues     25,654,384       19,207,902    
Gross margin     35,638,214       24,105,421    
                 
Operating Expenses                
Stock-based compensation     5,491,957       3,172,840    
Depreciation, amortization, and noncash lease expense     2,086,454       2,075,888    
Other general and administrative expenses     27,698,703       20,992,012    
Total operating expenses     35,277,114       26,240,740    
Income (loss) from operations     361,100       (2,135,319  
Other income (expense)                
        Interest income     16,979       68,582    
        Change in fair value of contingent consideration           (140,390  
Total other income (expense)     16,979       (71,808  
Income (loss) before provision for income taxes     378,079       (2,207,127  
Income tax benefit              
Net  income (loss)   $ 378,079     $ (2,207,127  
Weighted average number of shares outstanding – basic     17,228,019       14,827,923    
Weighted average number of shares outstanding – diluted     17,690,489       14,827,923    
Income (loss) per share – basic   $ 0.02     $ (0.15 )  
Income (loss) per share – diluted   $ 0.02     $ (0.15 )  

The accompanying notes are an integral part of these condensed consolidated financial statements.

OPTIMIZERx CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

    For the
year ended
December 31,
2021
    For the
year ended
December 31,
2020
 
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net income (loss)   $ 378,079       $ (2,207,127 )
Adjustments to reconcile net income (loss) to net cash used in operating activities:                
Depreciation and amortization     1,965,325         1,971,083  
Noncash lease expense     121,129         104,805  
Increase in bad debt reserve     80,000         200,000  
Stock-based compensation     5,491,957         3,172,840  
Change in fair value of contingent consideration             140,390  
Changes in:                
Accounts receivable     (6,994,880   )     (10,667,680 )
Prepaid expenses and other assets     (1,174,044   )     (3,517,700 )
Accounts payable     (11,442 )       125,255  
Revenue share payable     (591,652 )       3,351,430  
Accrued expenses and other     482,475         1,416,884  
Change in operating lease liabilities     (125,020   )     (106,347 )
Deferred revenue     1,104,112         (294,219 )
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES     726,039         (6,310,386 )
CASH FLOWS FROM INVESTING ACTIVITIES:                
Purchases of property and equipment     (100,322   )     (68,041 )
Acquisition of intangible assets, including intellectual property rights     (21,511   )     (11,932 )
Capitalized software development costs     (364,166    )     (44,752 )
NET CASH USED IN INVESTING ACTIVITIES     (485,999   )     (124,725 )
CASH FLOWS FROM FINANCING ACTIVITIES:                
Proceeds from issuance of common stock, net of offering costs     70,671,536         –   
Proceeds from exercise of stock options     4,864,231         2,488,394  
Payment of contingent consideration     (1,610,813   )     (4,389,187
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES     73,924,954         (1,900,793
NET INCREASE (DECREASE IN) CASH AND CASH EQUIVALENTS     74,164,994         (8,335,904
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD     10,516,776         18,852,680  
CASH AND CASH EQUIVALENTS – END OF PERIOD   $ 84,681,770       $ 10,516,776  
SUPPLEMENTAL CASH FLOW INFORMATION:                
Cash paid for interest   $       $  
Cash paid for income taxes   $       $  
NON-CASH INVESTING AND FINANCING ACTIVITIES:                
Acquisition liabilities paid in stock   $       $ 1,657,548  

The accompanying notes are an integral part of these condensed consolidated financial statements. 

OPTIMIZERx CORPORATION
Reconciliation of non-GAAP to GAAP Financial Measures

  For the Three Months   For the Year
  Ended December 31,   Ended December 31,
    2021     2020       2021       2020   
Net Income (loss)   623,463     1,357,166     378,079     (2,207,127 )
Depreciation and amortization   506,279     512,005     2,086,452     2,075,888  
Stock-based compensation   2,879,759     781,221     5,491,957     3,172,810  
Income or loss related to the fair value of contingent consideration               140,390  
Non-GAAP net income   4,009,501     2,650,392     7,956,488     3,181,961  
               
Non-GAAP net income (loss) per share              
Basic $ 0.23   $ 0.18   $ 0.46   $ 0.21  
Diluted $ 0.22   $ 0.16   $ 0.45   $ 0.20  
Weighted average shares outstanding:              
Basic   17,799,696     15,127,425     17,228,019     14,827,923  
Diluted   18,410,160     16,311,904     17,690,489     15,640,050  

OptimizeRx Corporation

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