OptimizeRx Corporation

Good morning, everyone, and thank you for joining OptimizeRx third quarter fiscal 2023 earnings discussion. With us today is the Chief Executive Officer of OptimizeRx, William Febo. He is joined by Chief Financial Officer Ed Stelmark, President Steve Silvestro, General Counsel Marion Odense Ford, and Senior Vice President of Corporate Finance, Andrew DeSilva. At the conclusion of today's earnings call, I will provide some important cautions regarding the forward-looking statements made by the management during today's call. I would like to remind everyone that today's call is being recorded and will be available for replay via webcast only. Instructions are included in today's press release and in the investor section of the company's website. I would like to turn the call over to OptimizeRx CEO, William Febo. Sir, please go ahead.

Good afternoon. Thank you for joining our third quarter earnings call. I'm pleased to note that Q3 has been an exciting fiscal and operational turning point for OptimizeRx. As noted in today's press release, the quarter's financial results came in better than initially expected. with revenue growing 8% year-over-year to $16.3 million, which is a record third quarter for the company. The improvement was driven by strong organic growth in messaging, led by our DAP enhancement. All said, our total RWD deals for the year now stand at 16, ahead of our original 2023 expectation of approximately 10 deals and a clear sign of client adoption. We're also increasing our guidance for 2023 and introducing preliminary guidance for 2024. Ed will go into more detail, but for 23, we're now looking for revenue to come in between $68 and $70 million with an adjusted EBITDA between $3 and $4 million. $63 to $65 million of the 2023 revenue guidance is expected to come through OptimizeRx Business, and the remainder is expected to come through our acquisition of Medix. For 2024, we believe our revenue will be at least $110 million with an adjusted EBITDA margin of at least 10%. Before we go further, I want to thank the OptimizeRx team for their tireless commitment and continuous effort to put into advancing our mission. In recent years, our efforts have created one of the most scalable industry solutions available to pharmaceutical marketers. Directionally, this has been no easy feat, as OptimizeRx's results have come about through the shifting sands of both the industry changes as well as the early adoption of advancements related to the digital shift, which has permanently altered the way pharma, patients, and prescribers engage with one another. With that being said, we're seeing very encouraging momentum heading into the end of the year and going into 2024. The macro headwinds that we identified last year have begun to normalize. Moreover, our clients that had started initial pilot programs with companies that had newly entered the space over the last 12 to 18 months are now completing the measurement of these programs and, as we expected, have learned that these solutions are not scalable and are beginning to drive spend back our way. Progress here is pacing ahead of what we anticipated, which is best evidenced by the strong DAP or RWE momentum we've seen during the second half of 2023. These deals, by their nature, are larger, thickier, and more strategically targeted, making us a more relevant partner with our client base. In September, we unveiled a significant enhancement to our omnichannel healthcare engagement platform. This new AI-directed capability unites point-of-care and traditional digital media to provide a comprehensive solution for pharmaceutical marketing. This announcement was the culmination of years of learning how to integrate AI into OptimizeRx's customer use cases, subsequently transforming our HCP engagement platform along the way. The new AI-driven platform expands on our patent-pending HCP engagement technology to now include social, web display channel, and CRM alerts, which create more efficiencies directly with sales forces. With this development, OptimizeRx has renamed the HCP engagement platform the Dynamic Audience Activation Platform, or DAP for short. to mark the merger of our former RWED AI capability with our full omni-channel network and new proprietary position engagement data set. The new DAP solution advances our land and expand strategy, enabling clients to gain maximum market penetration through scaling of outreach in real-time across the company's network of over 2 million HCPs across multiple major digital media channels and a point-of-care via electric health records, EHRs, e-prescribing, and the telehealth platforms. DAP helps our clients find patients best suited for their medications. As noted in multiple independent studies, this is one of the top challenges in today's specialty medication-driven market. In a recent engagement, the company reported a 19% script lift among AI-identified HCPs seeing relevant patients. including early impact physicians who had historically high scriptwriting behaviors. In other words, we helped our client grow their business by enabling alignment of HCP and patient awareness when clinical decisions are being made. Customers who have been exposed to DAP quickly become our strongest advocates, and this success is quickly moving us up the decision-maker hierarchy with our larger customers. This is increasing our visibility cross-functionally and across brands, and we currently have a 100% renewal rate. Given the improving macro environment and the recent customer traction we're seeing with the DAF enhancement, we believe last month's acquisition of Medix was perfect timing. Both business lines are showing growth, are seeing significant client engagement, and we are moving forward as planned on executing against the numerous technological and operational synergies we mapped out during the due diligence period. The transaction further expands our AMNA channel reach beyond HCPs to patients, while adding multiple channels we haven't accessed previously, which includes streaming and connected TV, as well as various digital channels such as display, audio, online video, and mobile, among others. Medix technology is not only proven, but profitable, and we are transforming our organization into the most comprehensive healthcare marketing platform in the nation. As we highlighted last month, the majority of Medix revenue, similar to that of OPRX, is generated through the world's largest pharmaceutical manufacturer, but focused on patient marketing, where OptimizerX has historically focused on ACPs. The combination provides a significant unlock for brands, and HCP marketing team. I believe this aligns strongly with our land and expand strategy and enables significant upselling and cross-selling opportunities, particularly when you couple this fact that over 80% of the brands our respective companies support do not overlap. We've already seen success with the combined team and secured our first cross-sell deal with the top five pharma manufacturer and have numerous other deals in spite. With the closing of the Med-X acquisition, we have expanded our executive team with the addition of Med-X's president, Teresa Greco, who is now our new chief commercial officer. She will lead the commercial strategy and execution for the company and report directly to Steve Silvestro. As a result, Steve has been promoted to president and will lead all aspects of corporate strategy and daily business management. This will be a very natural transition for both Steve and the company. Steve's leadership style has always extended organizationally. And in my eyes, this is a testament to his commitment strategically positioning us with our customers and partners, which has been transformative to our go-to-market over the last four years. Finally, I'd like to give an update on our cost-cutting measures. I'm happy to report we're ahead of schedule, and we have already completed over half our planned cost reductions and have identified the remaining cuts and are in the final stages of executing against our objective. While some of this benefit will be seen in 23, the full benefits of these cost cuts will be seen in our P&L in 2024. We believe we turned a significant corner since the start of the second half of the year and have incredible momentum going into 2024. And with that, I'd like to turn the call over to our CFO, Ed Stelmach, who will walk us through the financial details for Q3, as well as the MEDX transaction.

Ed?