GlobeNewswire Inc | Aug 4, 2021 04:01PM EDT

August 04, 2021

- Revenue Up 55% to $13.6 million, closing on 19 enterprise contracts- Enterprise deals pipeline grows from 46 to 63 - Brands adopting OptimizeRx solutions increases to 140 from 80 in the past 6 months- Successful implementation of evidence-based provider engagement programs, driven by real-world evidence (RWE), anchored by sales from 2 leading brands - Cash flow positive from operations of $1.9 million in the first half of fiscal 2021

ROCHESTER, Mich., Aug. 04, 2021 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (the Company) (Nasdaq: OPRX), a leading provider of digital health solutions for life science companies, physicians and patients, reported results for the three months ended June 30, 2021. Quarterly comparisons are to the same year-ago period.

Financial Highlights

-- Revenue in the second quarter of 2021 increased 55% to a record $13.6 million, from $8.8 million as compared to the same year-ago period. -- Gross profit in the second quarter of 2021 increased 56% to $8.0 million. -- Gross profit margin in the second quarter of 2021 increased to 59% from 58.6%. -- GAAP net income totaled $0.4 million or $0.02 per basic and diluted share in the second quarter as compared to a net loss of $1.1 million or $0.07 per basic and fully diluted share in the year ago period. -- Non-GAAP net income in the second quarter totaled $1.8 million or $0.10 per basic and fully diluted share respectively (see definition of this non-GAAP measure and reconciliation to GAAP, below). Cash and cash equivalents totaled $83.9 million as of June 30, 2021 as compared to $82.3 million as of March 31, 2020.

Operational Highlights

-- Successful implementation of evidence-based provider engagement programs, driven by real-world evidence (RWE), anchored by sales from 2 leading brands Including agreement with a top 5 pharmaceutical manufacturer in solving lapse in medical coverage barrier for patients -- Announced several new health information technology (HIT) partnerships to further connect the digital channels used by healthcare professionals (HCPs) within the care setting, expanding reach to over 50% of oncologists.

Management Commentary

As a pioneering leader in digital health technology, we are delighted to report another record quarter of strong revenue growth, preceding what is expected to be a remarkable year for OptimizeRx. We could not be more pleased with the continuous adoption of our technology platform by leading brands while also closing on 19 enterprise deals in our sales pipeline for the quarter. Total enterprise deals since last quarter have also grown to 63 deals in pipeline from 46 with an average ACV of $1.1 million. We also continue to support pharmas engagement across fast-growing specialty areas which has doubled to more than 50% from last year, said OptimizeRx CEO, Will Febbo.

We have successfully implemented evidence-based provider engagement programs using the innovative RWE platform enhancement we launched at the end of 2020. We are both humbled and proud of the connectivity that OptimizeRxs digital health and communications platform has generated between the stakeholders that we serve, consisting of healthcare providers, patients and drug manufacturers, continued Mr. Febbo. With a focus on providing digital connectivity at point-of-care, our wide network reach and unique platform strategies are working seamlessly to raise awareness among providers about treatments and life sciences support. In doing so we are also helping patients to better afford and adhere to treatment regiments, by offering innovative, effective ways for life sciences to remain actively engaged throughout the patient care journey.

Additionally, our clients are benefitting and are seeing an average ROI of 8:1 with some as high as 20:1. The power of third-party measurement has been a key differentiator and is allowing us to accurately measure the value we deliver to our clients. As evidence of this, we have seen the number of brands adopting our technology jump from 80 to 140 in the last 6 months, concluded Mr. Febbo.

Q22021 Financial SummaryTotal revenue reported for the three months ended June 30, 2021 was approximately $13.6 million, an increase of over 55% over the approximately $8.8 million from the same period in 2020. The increased revenue resulted from increases in sales in all our solutions.

Gross margin was 59%, which increased slightly from the year-ago quarter. Gross margin is expected to improve on a quarter over quarter basis for the balance of the year as our RWE solution expands and we continue to launch new solutions that have higher margins.

Operating expenses increased to $7.7 million as compared to $6.2 million in the same year-ago quarter. The increase was due to the Companys efforts to expand its solutions and build out its organization for future growth.

Net Income on a GAAP basis was approximately $0.4 million or $0.02 per basic and diluted share, as compared to a net loss of $1.1 million or $(0.07) per basic and fully diluted share in the second quarter of 2020.

Non-GAAP net income was $1.8 million or $0.10 per basic and $0.10 per fully diluted share, compared to non-GAAP net income of $0.3 million or $0.02 per basic and fully diluted share in the same year-ago period (see definition of this non-GAAP measure and reconciliation to GAAP, below).

Cash and cash equivalents totaled $83.9 million as of June 30, 2021, as compared to $82.3 million as of March 31, 2020.

Conference Call

OptimizeRx management will host the presentation, followed by a question-and-answer period.

Date: Wednesday, August 4, 2021Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)Web access: http://public.viavid.com/index.php?id=146009Toll-free dial-in number: 1-800-430-8332International dial-in number: 1-323-289-6576 Conference ID: 2901587

Please call the conference telephone number five minutes prior to the start time.

A replay of the call will remain available for 12 months via the Investors section of the OptimizeRx website at www.optimizerx.com/investors.

Definition and Use of Non-GAAP Financial MeasuresThis earnings release includes a presentation of non-GAAP net income (loss) and non-GAAP earnings (loss) per share or non-GAAP EPS, both of which are non-GAAP financial measures.

The Company defines non-GAAP net income (loss) as GAAP net income (loss) with an adjustment to add back depreciation, amortization, stock-based compensation, acquisition expenses, income or loss related to the fair value of contingent consideration, and deferred income taxes. Non-GAAP EPS is defined as non-GAAP net income (loss) divided by the number of weighted average shares outstanding on a basic and diluted basis. The Company has provided non-GAAP financial measures to aid investors in better understanding its performance. Management believes that these non-GAAP financial measures provide additional insight into the operations and cashflow of the Company.

Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a companys non-cash operating expenses, management believes that providing non-GAAP financial measures that excludes non-cash expenses allows for meaningful comparisons between the Companys core business operating results and those of other companies, as well as provides an important tool for financial and operational decision making and for evaluating the Companys own core business operating results over different periods of time.

The Companys non-GAAP net income (loss) and non-GAAP EPS measures may not provide information that is directly comparable to that provided by other companies in the Companys industry, as other companies in the industry may calculate such non-GAAP financial results differently. The Companys non-GAAP net income (loss) and non-GAAP EPS are not measurements of financial performance under GAAP and should not be considered as an alternative to operating income or as an indication of operating performance or any other measure of performance derived in accordance with GAAP. The Company does not consider these non-GAAP measures to be substitutes for or superior to the information provided by its GAAP financial results.

The table, Reconciliation of non-GAAP to GAAP Financial Measures, included below, provides a reconciliation of non-GAAP net income (loss) and non-GAAP EPS for the three months ended March 31, 2021 and 2020.

About OptimizeRxOptimizeRxis a digital health company that provides communications solutions for life science companies, physicians and patients. Connecting over half of healthcare providers in theU.S.and millions of patients through a proprietary network, theOptimizeRxdigital health platform helps patients afford and stay on medications. The platform unlocks new patient and physician touchpoints for life science companies along the patient journey, from point-of-care, to retail pharmacy, through mobile patient engagement.

For more information, follow the Company onTwitter,LinkedInor visitwww.optimizerx.com.

Important Cautions Regarding Forward-Looking Statements This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended, and such as in section 21E of the Securities and Exchange Act of 1934, as amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition, and other material risks.

OptimizeRx ContactDoug Baker, CFOTel (248) 651-6568 x807dbaker@optimizerx.com

Media Relations ContactMaira Alejandra, Media Relations ManagerTel (754) 245-7070malejandra@optimizerx.com

Investor Relations ContactAshley RobinsonLifeSci Advisors, LLCarr@lifesciadvisors.com



OPTIMIZERX CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)

June30, December31, 2021 2020 ASSETS Current Assets Cash and cash equivalents $ 83,923,455 $ 10,516,776 Accounts receivable, net 17,933,926 17,885,705 Prepaid expenses 3,124,479 4,456,611 Total Current Assets 104,981,860 32,859,092 Property and equipment, net 137,813 148,854 Other Assets Goodwill 14,740,031 14,740,031 Technology assets, net 4,896,016 5,251,822 Patent rights, net 2,258,542 2,349,570 Other intangible assets, net 4,203,777 4,519,552 Right of use assets, net 392,482 445,974 Other assets and deposits 12,859 12,859 Total Other Assets 26,503,707 27,319,808 TOTAL ASSETS $ 131,623,380 $ 60,327,754 LIABILITIES AND STOCKHOLDERS? EQUITY Current Liabilities Accounts payable ? trade $ 805,461 $ 618,250 Accrued expenses 2,088,651 2,420,361 Revenue share payable 3,341,312 4,969,868 Current portion of lease obligations 110,271 123,220 Current portion of contingent purchase 1,610,813 price payableDeferred revenue 319,609 285,795 Total Current Liabilities 6,665,304 10,028,307 Non-current Liabilities Lease obligations, net of current portion 282,934 325,533 Total Non-current Liabilities 282,934 325,533 Total Liabilities 6,948,238 10,353,840 Commitments and contingencies (See Note 8) - - Stockholders? Equity Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued andoutstanding at June 30, 2021 or December - - 31, 2020Common stock, $0.001 par value, 500,000,000 shares authorized, 17,495,429 and15,223,340 shares issued and outstanding atJune 30, 2021 and December 31, 2020, 17,495 15,223 respectivelyAdditional paid-in-capital 160,574,661 85,590,428 Accumulated deficit (35,917,014 ) (35,631,737 )Total Stockholders? Equity 124,675,142 49,973,914 TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 131,623,380 $ 60,327,754 The accompanying notes are an integral part of these condensed consolidatedfinancial statements.

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020 NET REVENUE $ 13,625,639 $ 8,783,230 $ 24,854,850 $ 16,367,832 COST OF 5,580,964 3,639,016 10,685,567 6,880,779 REVENUESGROSS MARGIN 8,044,675 5,144,214 14,169,283 9,487,053 OPERATING 7,704,536 6,200,027 14,467,452 12,802,118 EXPENSESINCOME (LOSS)FROM 340,139 (1,055,813 ) (298,169 ) (3,315,065 )OPERATIONS OTHER INCOME (EXPENSE)Interest 11,961 8,345 12,892 63,666 incomeChange inFair Value of (30,000 ) - (30,000 )ContingentConsideration TOTAL OTHERINCOME 11,961 (21,655 ) 12,892 33,666 (EXPENSE) INCOME(LOSS)BEFORE 352,100 (1,077,468 ) (285,277 ) (3,281,399 )PROVISION FORINCOME TAXES PROVISION FOR - - - - INCOME TAXESNET INCOME $ 352,100 $ (1,077,468 ) $ (285,277 ) $ (3,281,399 )(LOSS) WEIGHTEDAVERGE SHARES OUTSTANDINGBASIC 17,347,096 14,667,216 16,720,114 14,638,359 DILUTED 18,104,807 14,667,216 16,720,114 14,638,359 EARNINGS(LOSS) PER SHAREBASIC $ 0.02 $ (0.07 ) $ (0.02 ) $ (0.22 )DILUTED $ 0.02 $ (0.07 ) $ (0.02 ) $ (0.22 ) The accompanying notes are an integral part of these condensed consolidatedfinancial statements.



OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)

For the Six Months Ended June 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net Loss $ (285,277 ) $ (3,281,399 )Adjustments to reconcile net loss tonet cash provided by (used in) operating activities:Depreciation, amortization, and 1,054,138 1,040,463 non-cash lease expenseStock-based compensation 1,354,106 1,435,156 Stock issued for board services 250,085 200,027 Provision for loss on accounts 40,000 40,000 receivableChange in fair value of contingent 30,000 considerationChanges in: Accounts receivable (88,221 ) (3.427,166 )Prepaid expenses and other assets 1,332,132 (1,785,422 )Accounts payable 187,211 3,747 Revenue share payable (1,628,556 ) 1,878,051 Accrued expenses and other liabilities (393,778 ) 186,682 Deferred revenue 33,814 68,678 NET CASH PROVIDED BY (USED IN) 1,855,654 (3,611,183 )OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of equipment (43,654 ) (24,998 )Purchase of intangible assets (176,822 ) - NET CASH USED IN INVESTING ACTIVITIES (220,476 ) (24,998 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from public offering of common 70,671,536 stock, net of commission costsProceeds from the exercise of options 2,710,778 286,983 Payment of contingent consideration (1,610,813 ) (1,389,188 )NET CASH PROVIDED BY (USED IN) 71,771,501 (1,102,205 )FINANCING ACTIVITIESNET INCREASE IN CASH AND CASH 73,406,679 (4,738,386 )EQUIVALENTSCASH AND CASH EQUIVALENTS - BEGINNING 10,516,776 18,852,680 OF PERIODCASH AND CASH EQUIVALENTS - END OF $ 83,923,455 $ 14,114,294 PERIOD SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest $ - $ - Cash paid for income taxes $ - $ - Lease liabilities arising from right of $ - $ - use assets The accompanying notes are an integral part of these condensed consolidated financial statements.

OPTIMIZERx CORPORATIONReconciliation of non-GAAP to GAAP Financial Measures(Unaudited) FortheThree Months FortheSix Months EndedJune 30, EndedJune 30, 2021 2020 2021 2020 Net Income 352,100 (1,077,468 ) (285,277 ) (3,281,399 )(loss) Depreciationand 527,696 520,794 1,054,138 1,040,463 amortization Stock-based 897,038 780,670 1,604,191 1,635,182 compensation Income orloss relatedto the fair - 30,000 - - value ofcontingentconsideration Non-GAAP net 1,776,834 253,996 2,373,052 (605,754 )income (loss) Non-GAAP netincome (loss) per shareBasic $ 0.10 $ 0.02 $ 0.14 $ (0.04 )Diluted $ 0.10 $ 0.02 $ 0.14 $ (0.04 ) Weightedaverage sharesoutstanding:Basic 17,347,096 14,667,216 16,720,114 14,638,359 Diluted 18,104,807 15,573,257 17,467,159 14,638,359