OptimizeRx Reports Strong Fourth Quarter and Full Year 2024 Financial Results

Q4 revenue of $32.3 million, increasing 14% year-over-yearQ4 gross profit increased 23% year-over-year to $22.0 million with gross margin of 68%Company generated revenue from 48 DAAP deals in 2024, up from 24 in 2023 WALTHAM, Mass., March 12, 2025 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the “Company”) (Nasdaq: OPRX), a leading provider of healthcare technology solutions helping life sciences companies reach and engage healthcare professionals (HCPs) and patients, today announced results for the fourth quarter and full year ended December 31, 2024. For the Year EndedDecember 31,Key Performance Indicators (KPIs)* 2024 2023 (in thousands, except percentages)Average revenue per top 20 pharmaceutical manufacturer$2,933 $2,399 Percent of top 20 pharmaceutical manufacturers that are customers 100% 100%Percent of total revenue attributable to top 20 pharmaceutical manufacturers 64% 67%Net revenue retention 121% 105%Revenue per average full-time employee$701 $586 Stephen L. Silvestro, OptimizeRx CEO commented, "I’m incredibly proud of our strong fourth quarter and full year 2024 results and the momentum that we've achieved since we reported third quarter results last November, including, among our other successes, that we surpassed our expectations as well as consensus estimates. With the strong tailwinds we saw at the end of 2024 and into the start of 2025, we believe we are uniquely positioned to grow shareholder value by leveraging our industry leadership position in addressing pharma's most critical commercial challenges: improving brand visibility in an increasingly digital healthcare environment, reducing script abandonment rates, enhancing interoperability at the point of care, and supporting the shift toward complex specialty medications." "As the success of our ongoing transformation becomes more reflected in our financial results, now more than ever, we will be laser-focused on operational excellence and disciplined execution while ensuring we delight our customers and forge stronger relationships with valued business partners. Over the past few months, we have completed an extensive strategic review of the Company’s business processes, operations, revenue model, and growth plans and believe we are on the right path forward for shareholder value creation. As we move through fiscal 2025 and leverage the strong momentum we had in 2024, we plan to continue the Company’s growth and transformation, focusing very closely on customer-centricity and delight, continuing to expand our unique value proposition with pharma, positioning OptimizeRx to become a “Rule of 40 company,” and unlocking new opportunities for profitable revenue growth and shareholder value creation. A key component of our strategy includes transitioning our DAAP customers to a more predictable subscription-based model for data services, which we expect will improve margins, increase visibility, reduce the cyclical nature of our business, and facilitate our ability to more effectively scale." Financial Highlights Revenue in the fourth quarter of 2024 increased 14% to $32.3 million, from $28.4 million in the same period of 2023, with the full year revenue coming in at $92.1 million, a 29% increase when compared to the same year-ago period.Gross profit in the fourth quarter of 2024 increased 23% year-over-year to $22.0 million. Gross profit for the full year came in at $59.4 million.GAAP net (loss) in the fourth quarter totaled $(0.1) million or $0.00 per basic and diluted share and GAAP net (loss) for the full year totaled $(20.1) million or $(1.10) per basic and diluted share.Non-GAAP net income in the fourth quarter totaled $5.5 million or $0.30 per diluted share and came in at $6.2 million or $0.34 per diluted share for the full year (see *Non-GAAP Measures below).Adjusted EBITDA for the fourth quarter came in at $8.8 million a 53% increase from the $5.8 million we recognized during the same year-ago period. Adjusted EBITDA for the full year came in at $11.7 million (see *Non-GAAP Measures below). Cash and cash equivalents was $13.4 million as of December 31, 2024. Net cash provided by operating activities was $4.9 million for the year ended December 31, 2024. Financial Outlook The Company is providing full year 2025 guidance and expects revenue to be at least $100 million with an Adjusted EBITDA of at least $12 million. Conference Call, Webcast, and Webcast Replay Information Date: Wednesday, March 12, 2025Time: 8:30 a.m. Eastern Time Toll Free: 1-844-825-9789International: 1-412-317-5180Conference ID: 10197021Call Me: https://callme.viavid.com/?$Y2FsbG1lPXRydWUmcGFzc2NvZGU9JmluZm89Y29tcGFueSZyPXRydWUmYj0xNg==Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1708545&tp_key=86684771bfCall Me Passcode: 2202248Webcast Replay: The archived webcast will be on the investor relations section of the OptimizeRx website Individual Meeting Invitation In an effort to increase relations with institutional investors, OptimizeRx management has dedicated time to hosting individual meetings with portfolio managers and analysts. If you are interested in scheduling a meeting with OptimizeRx management, please contact: adsilva@optimizerx.com or svonderweid@lifesciadvisors.com. *Non-GAAP Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and, for historical periods, a reconciliation of these measures to the most directly comparable GAAP measures are included in the supplemental tables that follow. Although the Company provides guidance for Adjusted EBITDA, a non-GAAP financial measure, it is not able to provide guidance to the most directly comparable GAAP measure. Reconciliations for forward-looking figures would require unreasonable effort at this time because of the uncertainty and variability of the nature and amount of certain components of various necessary GAAP components, including, for example, those related to compensation, acquisition expenses, amortization or others that may arise during the year, and the Company’s management believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the Company is unable to address the probable significance of the unavailable information. **Definition of Key Performance Indicators Top 20 pharmaceutical manufacturers: We have updated the definition of “top 20 pharmaceutical manufacturers” in our key performance indicators to be based upon Fierce Pharma’s most updated list of “The top 20 pharma companies by 2023 revenue”. We previously used “The top 20 pharma companies by 2022 revenue”. As a result of this change, prior periods have been restated for comparative purposes. 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 period. About OptimizeRx OptimizeRx is a leading healthcare technology company that’s redefining how life science brands connect with patients and healthcare providers. Our platform combines innovative AI-driven tools like the Dynamic Audience Activation Platform (DAAP) and Micro-Neighborhood Targeting (MNT) to deliver timely, relevant, and hyper-local engagement. By bridging the gap between HCP and DTC strategies, we empower brands to create synchronized marketing solutions that drive faster treatment decisions and improved patient outcomes. Our commitment to privacy-safe, patient-centric technology ensures that every interaction is designed to make a meaningful impact, delivering life-changing therapies to the right patients at the right time. Headquartered in Waltham, Massachusetts, OptimizeRx partners with some of the world’s leading pharmaceutical and life sciences companies to transform the healthcare landscape and create a healthier future for all. For more information, follow the Company on Twitter, LinkedIn 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, future performance, expected revenues, expected Adjusted EBITDA, plans to grow shareholder value creation, plans to continue the Company’s growth and transformation, plans for unlocking new opportunities for profitable revenue growth, plans for expanding the Company’s value proposition with pharma, plans to position the Company to become a “Rule of 40” company, plans for forging stronger relationships with valued business partners, other business plans and operating and financial performance objectives, and other statements relating to future performance, plans, and expectations. These forward-looking statements are based on the Company’s current expectations and involve assumptions regarding the Company’s business, the economy, and other future conditions that may never materialize or may prove to be incorrect. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. ,Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties including, but not limited to, the effect of government regulation, seasonal trends, dependence on a concentrated group of customers, cybersecurity incidents that could disrupt operations, the ability to keep pace with growing and evolving technology, the ability to maintain contracts with electronic prescription platforms and electronic health records networks, competition, and other factors discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, its subsequent Quarterly Reports on Form 10-Q, and in other filings the Company has made and may make with the Securities and Exchange Commission in the future. One should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as may be required by law. OptimizeRx ContactAndy D’Silva, SVP Corporate Financeadsilva@optimizerx.com Investor Relations ContactSandya von der WeidLifeSci Advisors, LLCsvonderweid@lifesciadvisors.com OPTIMIZERX CORPORATIONCONSOLIDATED BALANCE SHEETS (in thousands except share and per share data) December 31, 2024 2023 ASSETS Current Assets Cash and cash equivalents$13,380 $13,852 Accounts receivable, net of allowance for credit losses of $335 and $239 at December 31, 2024 and 2023, respectively 38,212 36,253 Taxes receivable — 1,036 Prepaid expenses and other 2,379 3,190 Total Current Assets 53,971 54,331 Property and equipment, net 150 149 Other Assets Goodwill 70,869 78,357 Patent rights, net 5,517 6,185 Technology assets, net 8,180 9,013 Tradename and customer relationships, net 31,819 34,198 Operating lease right-of-use assets 366 573 Security deposits and other assets 296 568 Total Other Assets 117,047 128,894 TOTAL ASSETS$171,168 $183,374 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term debt$2,000 $2,000 Accounts payable – trade 2,156 2,227 Accrued expenses 8,486 7,706 Revenue share payable 5,053 5,506 Taxes payable 318 49 Current portion of lease liabilities 168 222 Deferred revenue 473 172 Total Current Liabilities 18,654 17,882 Non-Current Liabilities Long-term debt, net 30,816 34,231 Lease liabilities, net of current portion 209 371 Deferred tax liabilities, net 4,491 4,337 Total Liabilities 54,170 56,821 Commitments and contingencies Stockholders’ Equity Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding at December 31, 2024 and 2023, respectively — — Common stock, $0.001 par value, 166,666,667 shares authorized, 20,194,697 and 19,899,679 shares issued at December 31, 2024 and 2023, respectively 20 20 Treasury stock, $0.001 par value,1,741,397 shares purchased at December 31, 2024 and 2023 (2) (2)Additional paid-in-capital 201,348 190,793 Accumulated deficit (84,368) (64,258)Total Stockholders’ Equity$116,998 $126,553 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$171,168 $183,374 OPTIMIZERX CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except share and per share data) For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 2024 2023 Net revenue$32,317 $28,369 $92,127 $71,522 Cost of revenues, exclusive of depreciation and amortization presented separately below 10,293 10,528 32,749 28,622 Gross profit 22,024 17,841 59,378 42,900 Operating Expenses Stock-based compensation 2,937 2,627 11,467 13,717 Loss on disposal of a business — 2,142 — 2,142 Depreciation and amortization 1,094 1,006 4,329 2,402 Impairment charges — 6,738 7,489 6,738 Other sales, general and administrative expenses 14,358 16,231 49,799 44,303 Total operating expenses 18,389 28,744 73,084 69,302 Loss from operations 3,635 (10,903) (13,706) (26,402)Other income (expense) Interest expense (1,563) (1,454) (6,160) (1,454)Other income 41 500 153 500 Interest income 96 118 328 2,192 Total other income (expense), net (1,426) (836) (5,679) 1,238 Income (loss) before provision for income taxes 2,209 (11,739) (19,385) (25,164)Income tax (expense) benefit (2,286) 7,598 (725) 7,598 Net loss$(77) $(4,141) $(20,110) $(17,566)Weighted average number of shares outstanding – basic 18,418,519 17,769,670 18,292,935 17,124,801 Weighted average number of shares outstanding – diluted 18,418,519 17,769,670 18,292,935 17,124,801 Loss per share – basic$— $(0.23) $(1.10) $(1.03)Loss per share – diluted$— $(0.23) $(1.10) $(1.03) OPTIMIZERX CORPORATIONCONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) For the Year Ended December 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss$(20,110) $(17,566)Adjustments to reconcile net loss to net cash provided by / (used in) operating activities: Depreciation and amortization 4,329 2,402 Impairment charges 7,489 6,738 Loss on disposal of business — 2,142 Bad debt expense 209 666 Stock-based compensation 11,466 13,717 Amortization of debt issuance costs 835 211 Change in: Accounts receivable (2,168) (8,713)Prepaid expenses and other assets 811 (573)Accounts payable (72) (1,320)Revenue share payable (453) 1,515 Accrued expenses and other liabilities 1,053 1,303 Deferred tax liabilities 1,449 (7,695)Deferred loan fees (250) Deferred revenue 301 (67)NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES 4,889 (7,240) CASH FLOWS USED IN INVESTING ACTIVITIES: Purchases of property and equipment (112) (87)Proceeds from sale of property and equipment — 10 Cash paid for acquisitions, net of cash acquired — (82,947)Proceeds from sale of business — 2,540 Purchase of short-term investments — (162,778)Redemptions of short-term investments — 218,709 Capitalized software development costs and other (338) (784)NET CASH USED IN INVESTING ACTIVITIES (450) (25,337) CASH FLOWS (USED IN) / PROVIDED BY FINANCING ACTIVITIES: Proceeds from long-term debt, net of issuance costs — 37,730 Repayment of long-term debt (4,000) (1,710)Repurchase of common stock — (7,522)Cash paid for employee withholding taxes related to the vesting of restricted stock units (911) — Proceeds from exercise of stock options, net of cash paid for withholding taxes — (278)NET CASH (USED IN) / PROVIDED BY FINANCING ACTIVITIES (4,911) 28,220 NET DECREASE IN CASH AND CASH EQUIVALENTS (472) (4,357)CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD 13,852 18,209 CASH AND CASH EQUIVALENTS – END OF PERIOD$13,380 $13,852 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest$6,203 $1,213 ROU assets obtained in exchange for lease obligations$— $460 Shares issued in connection with acquisition$— $12,091 Cash paid for income taxes$161 $48 OPTIMIZERX CORPORATIONRECONCILIATION of NON-GAAP to GAAP FINANCIAL MEASURES(in thousands, except share and per share data) This earnings release includes certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). These non-GAAP financial measures are measures of performance not defined by accounting principles generally accepted in the United States and should be considered in addition to, not in lieu of, GAAP reported measures. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, management believes that presenting certain non-GAAP financial measures provides additional information to facilitate comparison of the Company's historical operating results and trends in its underlying operating results and provides transparency on how the Company evaluates its business. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. Management believes that financial information excluding certain items that are not considered to reflect the Company’s ongoing operating results, such as those listed below, improves the comparability of year-to-year results. Consequently, management believes that investors may be able to better understand the Company’s operating results excluding these items. Non-GAAP financial measures may reflect adjustments for items such as asset impairment charges, amortization, stock-based compensation, acquisition expenses, severance, deferred income taxes, as well as other items that management believes are not related to the Company’s ongoing performance. For the Three Months EndedDecember 31, For the Twelve Months EndedDecember 31, 2024 2023 2024 2023 Net loss$(77) $(4,141) $(20,110) $(17,566)Deferred income taxes 153 (7,695) 153 (7,695)Depreciation and amortization 1,094 1,006 4,329 2,402 Stock-based compensation 2,937 2,627 11,467 13,717 Asset impairment charges — 6,738 7,489 6,738 Loss on disposal of business — 2,142 — 2,142 Severance charges 1,183 288 1,908 495 Other income (40) (500) (152) (500)Amortization of debt issuance costs 288 211 835 211 Acquisition expense — 3,902 243 4,482 Non-GAAP net income 5,538 4,578 6,162 4,425 Non-GAAP net income per share Diluted$0.30 $0.26 $0.33 $0.26 Weighted average shares outstanding: Diluted 18,464,605 17,789,235 18,583,936 17,191,300 For the Three Months EndedDecember 31, For the Twelve Months EndedDecember 31, 2024 2023 2024 2023 Net loss$(77) $(4,141) $(20,110) $(17,566)Depreciation and amortization 1,094 1,006 4,329 2,402 Stock-based compensation 2,937 2,627 11,467 13,717 Asset impairment charges — 6,738 7,489 6,738 Loss on disposal of business — 2,142 — 2,142 Severance charges 1,183 288 1,908 495 Acquisition expense — 3,902 243 4,482 Other income (40) (500) (152) (500)Interest expense (income), net 1,466 1,336 5,831 (738)Income tax expense (benefit) 2,286 (7,598) 725 (7,598)Adjusted EBITDA 8,849 5,800 11,730 3,574

OptimizeRx Reports Strong Fourth Quarter and Full Year 2024 Financial Results

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