OptimizeRx Corporation

William Vivo. He is joined by Company Chief Financial Officer, Ed Selmack, President and Chief Strategy Officer, Miriam Paramore, Chief Commercial Officer, Stephen Silvestro, Executive Vice President of Finance and Accounting, Doug Baker, General Counsel and Chief Compliance Officer, Marian Odense-Ford, and Senior Vice President of Corporate Finance, Andrew DeSilva. Before we conclude the earnings call, I'll provide some important cautions regarding the forward-looking statements made by management during today's call. I would like to remind everyone that today's call is being recorded and will be made available for replay via webcast only. Instructions are included in today's press release and in the investor section of the company website. Now, I'd like to turn the call over to OptimizeRx CEO, William Vivo. Sir, please go ahead.

Thank you, Operator. Hello, everyone, and thank you for joining us today. As you've already witnessed from our performance, it's been an incredibly exciting year for our team. That includes all members of our company, clients, and all of you who are invested in this rewarding journey we're on to continue improving patient care and adherence through technology. I'd like to begin today's call highlighting OptimizeRx's most valuable assets, our people, the team, We've continued to invest in our people, adding to our ranks some of the best in the industry to continue driving strategic scalability and sustainable growth. As you know from our recent announcement, Ed Stelmach recently joined us as our new CFO and COO. Ed comes to us with extensive financial and operational experience at multiple public pharmaceutical companies, implementing strategic initiatives, helping to grow business lines and specialty medications, which is OptimizeRx's core focus. We're also very happy that Doug Baker remains on with us as Executive Vice President of Finance and Account. This transition is a testament to Doug's steady guidance through our first phase of significant growth, which has positioned us with a strong foundation to build atop our accelerating momentum. Along those lines, we've recently welcomed Andy De Silva as Senior Vice President of Corporate Finance. Andy has over a decade of equity research and capital markets experience and a solid track record as a top industry analyst. He is focused on supporting our strategic growth and capital markets initiatives. The continuity of our personnel is one of the most important elements in managing the acceleration, growth, and industry adoption of our business while playing a pivotal role in the fulfillment of our mission, which is to create a more informed, and empowered healthcare community by developing new technology solutions that help people start and stay on life-impacting therapies. And it is this convergence between team, technology, and point of care which is the driver of Optimizarets' success and revenue growth. Revenue this quarter grew 53%. the additional members of the team that we have brought on in recent quarters, we are positioning ourselves for a second strong phase of growth. To date, we remain disciplined with regards to our operating strategy and continue to focus on closing the deals at hand through the remainder of the year. With 182 live brands on our platform, up from 140 in Q2, we continue to contribute to our customers' performance with an updated average ROI of 13 to 1. As we've mentioned before, this is measured by a third party. That's $13 our clients make back for every dollar they spend on the OptimizeRx platform. We've also continued to enhance our technology and expand our network, particularly in core growth specialties, and recently signed a new partner that materially expanded our oncology and hematology reach to the majority of the U.S. specialists. We can say without question that 2020 and 2021 have been pivotal periods that have accelerated our technology's enhancement and the platform's adoption, which has been driven through the creation of innovative best-in-class technology solutions for life sciences at the point of care. And despite tracking ahead of internal expectations, we're still in the very early innings of the industry's digital transformation and their increased adoption of innovative technologies that improve patient outcomes and provide strong ROIs. According to the e-marketer and Fierce Pharma, healthcare and pharma's digital ad spend alone was $9.5 billion in 2020. This really speaks to just how much white space there is in the industry for us, and it is a creed that we've made the strategic decision to opportunistically expand our team with numerous high quality professionals across the entire organization. We believe the ability to attract individuals of this caliber in a very tight labor environment is a testament to the magnitude of our market opportunity, as well as our positioning within the industry. Since I joined the company, I can honestly say I've never been more confident in our ability to capitalize on our mission statement and market opportunities. When taken together, we've recently increased our focus on building OptimizeRx's infrastructure for well beyond the next 12 months. While 2022 is already shaping up to be another record year, many of the new additions to our team have been put in place to position us for growth in 2023 and even more so in 2024 and beyond. as we're seeing a rapid paradigm shift in where spending is being allocated that provides our company with significant long-term growth opportunity. When I think back to when we re-founded OptimizeRx in 2016, we decided to build upon the success of our financial messaging solution to unlock the intrinsic and undervalued worth of our unique network of electronic health record partners. With that as a strong foundation, we have evolved what was once one product into a sophisticated multi-channel technology platform connecting our clients to the majority of the U.S. healthcare providers and millions of patients. Our newer mission became clear to leverage the power and unparalleled connectivity and reach of our growing network to connect physicians and patients with the tools and resources that empower them to manage care and ultimately their health. The results we continue delivering attest to how invaluable the connectivity of our proprietary network has proven to be to our clients. While we've given extraordinary growth since our refounding, another point of reference that I'm extremely proud of is how quickly we were able to successfully diversify our top line as financial messaging went from nearly all our revenue to approximately 25% as of the last quarter, despite showing consistent growth. Beyond successfully unifying a fragmented universe of EHRs, we have also expanded the reach of our network to various other digital touchpoints along the care journey. As shifts in technology and digital adoption continue transforming the healthcare industry, our technology platform can seamlessly adapt to the rapidly evolving care journey. In thinking about how OptimizeRx came to be, three major underlying healthcare trends have fueled our strategy. product and solution development, and also our evolution as a company. They are, one, virtualization of both patient and pharma sales rep engagement, two, the personalization of patient care in order to improve patient outcomes, and three, the segmentation of data to enable better patient identification while helping to expedite therapy initiation. Our technology platform has proven to be in synchrony with each of these shifts, and yet we continue pushing the limits, etching out a new frontier of how technology can be leveraged to bridge time gaps in connectivity and information to achieve better patient outcomes. Over the past year, we've made major strides helping our clients achieve great success in data segmentation through our real-world evidence solution. What sets us apart is our innovative approach. We're applying predictive analytics to critical data in real time. allowing us to design custom algorithms that enable our clients to proactively support physicians as they work to identify patients who qualify for their therapy and navigate patient access complexities. That, in turn, translates to getting patients started on therapy sooner and increasing their chances of positive outcomes while also contributing to life sciences commercial success. While still very early, we keep beating the drum of our RWE solution because it has all the characteristics of becoming a game changer for the entire healthcare continuum and, of course, for the company and our shareholders. Our solutions, individually and as a whole, have been purpose-built to solve complex connectivity and communication challenges for our clients. And we firmly believe that RWE will be critical to the success of many brands across many indications, particularly specialty medications. For example, it's worth calling attention to oncology, which is the fastest growing therapy with a projected $153 billion in sales by fiscal 2026. Our pipeline is now comprised of about 20% oncology. But beyond oncology, there are many indications across specialty therapies that require complex decision-making processes that support to identify eligible patients, select the appropriate course of therapy, and ultimately empower people to obtain and stay on therapy. This means physicians are looking for much more as they can as quickly as they can get it during critical and time-sensitive points in the care journey in order to provide patients with the best treatment plans. This is a big responsibility, which is why we spend so much time listening and collaborating with our customers. keeping up to date on research and trends among patients and providers in order not only to meet but stay ahead of the curve of the future needs of our clients. That is why and how we are continuously evolving our technology and product mix to enable engagement among our stakeholders at critical junctures throughout the patient care journey. The strategic integration of our care-focused technology across the points of care is is what allows us to generate sustained repeat revenue from brands that we service. So as you can tell from our oncology example, growing our revenue has been in lockstep with listening to our clients' needs to support their commercial brand strategies. Our personalized approach is what has allowed us to remain sticky, embedded, strategic partners to our pharma clients. Although we're still very early stage, In our corporate journey, it's important for us to continue to take stock of the transformation that OptimizerX has experienced these last few years, especially as we gain critical mass and continue to expand beyond our origins. We also have a strong war chest and are able to act nimbly to capitalize on opportunistic and creative strategic initiatives that complement our platform and growth strategy. Our corporate profile is certainly evolving, as is our commercial team strategy, and this is something that we will continue to ramp up over time. In the near term, the corporate planning process for 2022 has begun, and we look forward to continued growth and innovation across solutions, partnerships, and strategies. As Ed will delve into the quarter, I want to remind everyone on the call that we remain cash flow positive from operations for the first nine months of fiscal 2021. Customer traction continues to be strong, and our clients are seeing an average ROI of 13 to 1, with some clients experiencing much higher. With that, I'd like to turn the call over to our CFO, Ed Selma, who will walk us through the financial details for Q3. Ed?

Thanks, Will, and good afternoon, everyone. As with all of our calls, a press release was issued with results of our third quarter ended September 30, 2021. Copies are available for viewing and may be downloaded from the investor relations section of our website. We also filed our 10Q today. Turning to our financial results for the third quarter period ended September 30th, 2021. Our reported revenue for the period was 16.1 million, an increase of 53% over the 10.5 billion from the same period in 2020. The increased revenue resulted from growth in sales across all of our solutions. Gross margin for the quarters likely decreased from 57% in the year-ago period to 56% in the current period. This is the result of solution mix. In general, there has been an increase in the percentage of activity going through our higher cost channels compared to a year ago. This was offset by the launch of our RWE solution. Our RWE solution includes a much higher percentage of program design, which carries a higher margin than the delivery of actual messages. We expect our gross margin to remain relatively constant for the balance of the year. Operating expenses increased to approximately $9 million in the third quarter of fiscal year 2021, as compared to approximately $6.2 million in the same year-ago period. The increase in operating expenses related to salaries, wages, and benefits, and other human resource-related costs is due to the expansion of our team to support future growth. By the end of September, we have hired 32 new people this year, largely in areas focused on increasing revenue. This increase is partly offset by the decrease in contractors and consultants, as we have brought functions in-house that were previously outsourced. As we have demonstrated over the last five years, we are very good at knowing when to spend on people who will drive growth, support the service our clients and partners require, and be in the market with innovative solutions to solve significant problems. We delivered net income of $40,000 in the third quarter of fiscal 2021, as compared to a net loss of approximately $300,000 during the same period in 2020. For further details, you can refer to the MD&A section of our published tent here. Overall, the net income for third quarter of 2021 and decreased loss for the nine-month period resulted in the increased margin generated by our higher revenues, partially offset by the increased operating expenses. On a non-GAAP basis, net income for the third quarter of 2021 was approximately $1.6 million, or $0.09 per basic and fully diluted share, as compared to non-GAAP net income of approximately $1.1 million, or $0.07 per basic and fully diluted share, in the same year-ago period. Now, turning to our balance sheet. Cash and cash equivalents totaled $85 million as of September 30, 2021. as compared to 83.9 million as of June 30th, 2021. We do not anticipate the need to raise additional capital in the short or long term for operating purposes or to fund our organic growth plans. We're focused on growing our revenue and partner network. However, as a company in the market that is active with merger and acquisition activity, we may have opportunities such as for acquisitions or strategic partner relationships which may require additional capital. We will assess those opportunities as they arise with a view of maximizing shareholder value. This wraps up the discussion of our financial results, and now I'd like to turn the call back over to Will. Will?