OptimizeRx Corporation

Good afternoon, everyone, and thank you for joining OptimizeRx's third quarter fiscal 2024 earnings call. With us today is OptimizeRx's Chief Executive Officer, William Febo. He is joined by Chief Financial Officer Ed Stelmach, President Steve Silvestro, General Counsel Marion Odins-Ford, and Senior Vice President of Corporate Finance, Andrew DaSilva. At the conclusion of today's earnings call, I will 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 investors section of the company's website. Now, I would like to turn the call over to OptimizeRx CEO, William Febo. Sir, please go ahead.

Thank you, operator, and good afternoon to everyone joining today's third quarter 2024 earnings call. To get started, while our year-over-year top line revenue grew 30% and came in at $21.3 million, it fell short of our expectations for the quarter. This is largely due to a shortfall with the DTC side of the business, which we acquired last year. However, We are pleased with our legacy HCP business growth, bottom line performance, and cash flow generation in the quarter. We were able to realize incremental savings during the year as we completed the integrations of the combined commercial businesses and found operating efficiencies on top of what we had initially expected at the time of the acquisition. As a result, We're updating our guidance and are now expecting 2024 annual revenue to come in between $88 and $92 million for 2024 with a modest change to the adjusted EBITDA landing between $8 and $10 million. Given we are well into November, we have high visibility on this revenue guidance. Regarding the revenue shortfall, we encountered macro shifts at the DTC business, specifically a market trend away from managed services. where we create compliant audiences and manage media buying for the clients towards a self-service model. In this self-service model, we provide audiences to clients who then use them to run their own messaging campaigns. Self-service is specific to the DTC business and less common on the HCP side of the business. In this self-service model, which has become our primary focus, we built compliant audiences in 50 states or customers to purchase for their own digital media. This patent-protected solution is our micro-neighborhood targeting and is experiencing strong growth with a notable percentage increase in customer engagements during the year. However, despite the growth in micro-neighborhood targeting, it has not yet offset the decline in our managed services. Acquiring Medix Health during the fourth quarter of 2023 made it challenging to capture customer wallet share in the middle of the calendar year sales cycle. However, we have implemented commercial changes going into 2025 that we believe will resolve the softness we saw in our DTC business this year as we focus a greater portion of our efforts on securing self-service revenue streams. With one year as an expanded team, we are seeing continued cross-selling and up-selling, which should have a very positive impact on 2025 given the year-over-year growth in our pipeline build thus far. A top three pharmaceutical manufacturer is leaning into this solution, especially as they navigate an increasingly complex regulatory environment spreading across multiple states. This client alone could mean significant growth in 2025 in BTC. With privacy regulations expected to expand nationwide, we are well positioned to meet the market's evolving privacy demands. We remain very bullish on our business and our industry thesis around the combination of DTC and HCP under one platform, and our customers are experiencing meaningful value add through the marriage of HCP and DTC. In fact, we recently held a panel discussion with the top five pharmaceutical company at Digital Pharma East, where they confirmed this market need and value. I would encourage everyone to go to our website and listen to the panel. It's a harbinger of where the market is going and how far ahead we are with a scalable technology enabled solution. We continue to be the only company among our peers providing this union at scale. We are seeing progress with growing our total wallet share with our largest customers, still dominated by our HCP business. We now have one client expected to surpass 15 million of in-year revenue and see at least four customers for 2025, which are expected to generate over 10 million in revenue. All this gives us confidence in the business, its trajectory, and the value proposition to our client base. This is how pharma scales with their partners, and we are thrilled they trust us to help them with commercialization. Our point-of-care network continues to grow, and we recently added several EHR partners to our network, incrementally adding thousands of HCPs. Our channel partner network continues to be our largest moat, and we have seen potential competitors attempt to get into the space, but have not seen anyone show the ability to succeed with scale. In a similar vein, on the DTC side of the business, we continue to expand our direct integrations with leading publishers and media partners, which allow us to extend our reach to support both direct and indirect go-to-market execution. This enables us to sell the publishers and media partners, or sell through them, as they approve use of our audience data in their publishing networks. We believe we have the right solutions and the right people to execute on our strategic roadmap. With the addition of DAP to optimize our omni-channel network, we have a pioneering and foundational AI-directed capability which removes the mystique of seamlessly integrating point-of-care and traditional digital media, offering a transparent and measurable solution for pharmaceutical marketing that is able to reach nearly 240 million U.S. adult lives and 2 million HCPs. DAP coupled with our proprietary EHR network and channels outside of the EHRs are driving powerful next-best-action capabilities based on dynamic real-world data. As a result, the app is now used to power CRM alerts as well as social media, web display, and other mass digital communication channels, which fosters greater efficiency in collaboration with our customer sales forces. Optimizer X is expanding its AI solution work with customers while others in our space are still trying to figure out how to apply AI. As a result, I believe we have an opportunity to capture a significant market share in the coming quarters and years to drive highly profitable growth. And with that, I would like to turn the call over to our CFO, Ed Salmack, who will walk us through our financial details.

Ed?