ROCHESTER — OptimizeRx Corp. (OTCQB:OPRX), the Rochester-based provider of digital discounts and other health messaging for the pharmaceutical industry, reported record revenue of $5.1 million for the second quarter ended June 30, up 78 percent from $2.9 million a year earlier.
The company reported net income of $281,000 or 2 cents a share, vs. a loss of $361,501 or 4 cents a share a year earlier.
For the six months, the company posted revenue of $6 million, up from $3.7 million a year earlier, and net income of $91,330 or 1 cent a share, vs. a loss of $1.2 million or 13 cents a share a year earlier.
The company said its revenue increase was due primarily to growth in its two core products of financial and brand messaging, coupled with broader distribution through the company’s new channel partners. The launch of new pharmaceutical brands also contributed to the increase.
Gross margin improved to 56.1 percent in the second quarter of 2018 from 44 percent in the year-ago quarter. The improvement was due to favorable product mix and reduced revenue share cost. Operating expenses were $2.6 million, up from $1.6 million in the same year-ago quarter. The increase was primarily due to additional expenses related to growth initiatives, including expanding the company’s executive and sales team. However, operating expense as a percentage of revenue decreased to 51 percent from 57 percent in the year-ago quarter.
Company officials said they expect the business to continue to be profitable on a quarterly basis, although one-time expenses related to growth initiatives may result in quarterly fluctuations in profitability.
“In the second quarter, we realized our seventh consecutive quarter of revenue growth and achieved profitability through adding new pharmaceutical brands, growing our digital health messaging revenue and expanding our distribution channels,” said OptimizeRx CEO William Febbo. “OptimizeRx continued to be the largest network of its kind, with promotional programs incorporated into more than 50 percent of the ambulatory market and with more healthcare providers at ‘point-of-prescribe’ than any other network. We continue to believe our addressable market is worth well north of $500 million to a billion once the market fully adopts this channel.”
Febbo said the company plans to use some of the proceeds from its recent $9 million private placement stock sale “to make additional sales and channel investments for expanding further into our core ambulatory market, where we continue to demonstrate high ROI for pharma marketing spend. We also plan to further expand into the hospital market, a new channel for us that also represents a significant growth opportunity. In addition, we will increase investment in the underlying technology that powers our solutions and will invest in our data strategy.”
To listen to a replay of a conference call discussing these results, call (844) 512-2921 in the United States or (412) 317-6671, using the pass code 9709267.
OptimizeRx says its communications support patient adherence to medications by providing real-time access to financial assistance, prior authorization, education, and critical clinical information. The company’s network is comprised of electronic health records platforms such as Allscripts, Amazing Charts and Quest, and provides more than half of the ambulatory patient market with access to these benefits within their workflow at the point-of-care.
More at www.optimizerx.com.