ROCHESTER — OptimizeRx Corp. (Nasdaq: OPRX), the provider of digital health messaging for the pharmaceutical industry, reported net income of $244,928 or 2 cents a share in the third quarter ended Sept. 30, compared to a loss of $622,786 or 6 cents a share in the same quarter of 2017.
Revenue was $5.4 million, up from $3.1 million a year earlier.
For the nine months, net income was $336,258 or 3 cents a share, compared to a loss of $1.9 million or 19 cents a share in the first nine months of 2017. Revenue was $14.6 million, up from $8.1 million a year earlier.
The company said the revenue increase was primarily due to growth in OptimizeRx’s 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 58.1 percent in the third quarter of 2018 from 45.1 percent in the year-ago quarter. The improvement was due to favorable product mix and reduced revenue share cost.
The company remains focused on improving margins, and maintains its gross margin target of at least 55 percent through the fourth quarter of 2018.
Operating expenses in the third quarter of 2018 were $2.9 million, up from $2 million in the same year-ago quarter. The increase was primarily due to additional expenses related to growth initiatives, including new employees. However, operating expense as a percentage of revenue decreased to 54 percent as compared to 65 percent in the same year-ago quarter.
OptimizeRx CEO William Febbo noted that in the third quarter, “we realized our eighth consecutive quarter of revenue growth and second consecutive quarter of profitability through adding new pharmaceutical brands, growing our digital health messaging revenue and expanding our distribution channels. … Today, our network reaches over half the nation’s healthcare providers and the ambulatory market, making OptimizeRx the healthcare industry’s largest point-of-care network. Through our digital platform, pharma companies can regain critical access to doctors and their patients and provide the information and savings they need and precisely when they need it, in the point of care, and create better health outcomes, a win-win-win.”
Febbo added that “for the remainder of 2018, we plan to continue expanding our reach to physicians, pharmacies and patients, and bringing new solutions to our existing clients to capture more budget per pharmaceutical manufacturer. As we continue to demonstrate high ROI from the marketing spend of our pharma clients, we expect increased adoption of our digital health platform in cloud-based EHR channels, hospital systems and ultimately by potential clients.”
To listen to a replay of the conference call discussing these results, visit the investors section of www.optimizerx.com, or call (844) 512-2921 in the United States or (412) 317-6671 elsewhere, using the replay ID 1275447.