ROCHESTER—OptimizeRx Corp. (NASDAQ: OPRX), a provider of digital health messaging for the pharmaceutical industry, reported net income of $6,529 in the first quarter ended March 31, vs. a loss of $189,279 or 2 cents a share in the same quarter of 2018. Revenue was $5.2 million, up 27 percent from $4.1 million a year earlier.
The company also released a “non-GAAP net income” figure of $833,000 or 6 cents per share, up from $362,000 or 4 cents a share in the same quarter of 2018. Non-GAAP net income excludes depreciation, amortization and stock-based compensation expense.
Operating expenses totaled $3.5 million, up from $2.3 million in the same year-ago quarter. The increase was related to additional expenses from growth initiatives, as well as the acquisition of CareSpeak Communications in October 2018.
Company officials said they expect OptimizeRx to remain profitable, although they said one-time expenses “related to investments in growth initiatives” could result in future quarterly losses. They noted that the company is debt-free and expects to continue to generate positive cash flow from operations on a quarterly basis for the balance of the year.
“In Q1, we realized our eighth quarter in a row of revenue growth, along with record gross margin and continued profitability,” said OptimizeRx CEO William Febbo. “These record results were driven by a number of key factors, including better client access, broader provider reach, solid technology and overall strong operational performance. While we saw strong topline growth in Q1, our penetration into pharma remains relatively low. We’re connected to many manufacturers, but we’ve really only just begun to penetrate the market. We see a lot of growth ahead of us and to manage this anticipated growth, we recently appointed Stephen Silvestro to the new position of chief commercialization officer. He brings a depth of knowledge and a shared determination to provide affordability and adherence solutions that link the health care and life sciences industries. We’ve reached a scale where we can better negotiate enterprise pricing and he will help in this area.”
To listen to a management call discussing these results, visit investors.optimizerx.com.
OptimizeRx provides electronic messaging between pharmaceutical companies, patients, and health care providers, improving patient adherence to the medication schedules prescribed by health care providers, access to financial assistance to improve the affordability of prescription drugs, and valuable clinical information. OptimizeRx provides a direct channel for pharma companies to communicate with healthcare providers directly within their workflow and also directly to patients. OptimizeRx provides more than half of the ambulatory patient market with access to these benefits through leading EHR platforms like Allscripts, Amazing Charts and Quest, and directly via its mobile communications platform.