Exhibit 99.1



OptimizeRx Reports Record Second Quarter 2019 Results; Total Revenue Up
37% to $7.0 Million, Net Income up 45% to $407,000 or $0.03 per Diluted Share

ROCHESTER, MI., (August 7, 2019) — OptimizeRx Corp. (NASDAQ: OPRX), a leading provider of digital health messaging for the pharmaceutical industry, reported results for the second quarter ended June 30, 2019. Quarterly comparisons are to the same year-ago quarter.

Q2 2019 Financial and Operational Highlights

·Total revenue increased 37% to a record $7.0 million.
·Gross margin improved from 56.1% to 61.6%.
·Net income totaled a record $407,000, up 45%.
·Non-GAAP net income up 39% to $1.2 million or $0.09 per diluted share (see definition of non-GAAP measures and reconciliation to GAAP, below).
·Raised net proceeds of $21.3 million in an underwritten public offering to solidify balance sheet and to provide growth capital for potential acquisitions.
·Expanded team to support growth, including adding a new chief commercial officer, a VP of sales to focus on the hospital market, and three additional VPs of sales to call on pharma.

Q2 2019 Financial Summary

Total revenue in the second quarter of 2019 increased 37% to a record $7.0 million from $5.1 million in the same year-ago quarter. The increase was primarily due to increased sales of messaging products.

Gross margin improved to 61.6% in the second quarter of 2019 from 56.1% in the year-ago quarter. The improvement was due to a favorable shift in product mix. The company expects to maintain gross margins of at least 60% on a quarterly basis for the remainder of 2019.


Operating expenses totaled $3.8 million, up from $2.6 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 which occurred in October 2018.

Net income on a GAAP basis in the second quarter of 2019 was a record $407,000 or $0.03 per share, as compared to net income of $281,000 or $0.02 per share in the year-ago quarter.

Non-GAAP net income for the second quarter of 2019 was up 39% to $1.2 million or $0.09 per diluted share, compared to non-GAAP net income of $852,000 or $0.07 per share in the same year-ago period (see definition of these non-GAAP measures and reconciliation to GAAP, below).





While the company expects to remain GAAP profitable on a quarterly basis, one-time expenses related to investments in growth initiatives could result in a loss in any given quarter.

Cash and cash equivalents totaled $30.5 million at June 30, 2019, as compared to $10.1 million at March 31, 2019. The increase was due to cash generated from operations and an underwritten public offering that raised net proceeds of $21.3 million. The company has continued to operate debt-free and expects to continue to generate positive cash flow from operations on a quarterly basis for the balance of the year.

Management Commentary

“In Q2, we achieved record top and bottom-line results, along with strong gross margin expansion versus the year-ago quarter,” said OptimizeRx CEO, William Febbo. “In fact, it was our ninth straight quarter of revenue growth.

“This performance was driven by several factors, including greater client access and broader provider reach, with this driven by solid technology and strong operational performance. While our revenue is at an all-time high and we are now connected to many manufacturers, our penetration of this market is still at the early stages in many respects.

“We estimate our addressable market opportunity with our traditional network is about $700 million, assuming we had all our all channel partners enabled across all of our solutions. However, since the beginning of the year, we have substantially expanded our total addressable market by adding patient adherence to our solution set. So, we are now able to go after a much larger HCP messaging market estimated at more than $2.4 billion. This focus on adherence also aligns with our passion for helping healthcare providers create better outcomes for their patients.

“To more effectively support greater adherence and deliver financial solutions, we are in the process of integrating our core set of digital solutions into a single platform and adding additional capabilities. We anticipate this new platform to be launched within the next couple of weeks and this will set the stage for continued growth in 2020 and beyond.

“For the remainder of the year, we'll remain focused on generating revenue growth from our core solutions, expanding our network in the hospital market, and seeking solid M&A and partnership opportunities to drive revenue. We expect continued adoption of our health platform across our entire client base, and for this to drive another year of growth, strong margins and profitability.”

Conference Call

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


Date: Wednesday, August 7, 2019

Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)

Toll-free dial-in number: 1-800-458-4121

International dial-in number: 1-323-794-2597

Conference ID: 1609655





Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.


A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 28, 2019, as well as available for replay via the Investors section of the OptimizeRx website at investors.optimizerx.com.


Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 1609655


Definition and Use of Non-GAAP Financial Measures

This earnings release includes a presentation of non-GAAP net income (loss) and non-GAAP earnings 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 and stock-based compensation expense. 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 company’s non-cash operating expenses, management believes that providing non-GAAP financial measures that excludes non-cash expenses allows for meaningful comparisons between the company’s 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 company’s own core business operating results over different periods of time.


The company’s 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 company’s industry, as other companies in the industry may calculate such non-GAAP financial results differently. The company’s 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 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 at the end of this press release provides a reconciliation of non-GAAP net income (loss) and non-GAAP EPS for the three and six-month periods ended June 30, 2018 and 2019.


About OptimizeRx

OptimizeRx® (NASDAQ: OPRX), a digital health company, connects pharmaceutical companies to patients and providers, offering greater affordability, adherence and brand awareness at the point-of-care. As the nation’s largest point-of-prescribe promotional platform for the pharmaceutical industry, OptimizeRx provides a direct channel for pharma companies to communicate with healthcare providers right within their workflow and also directly to patients. 


The cloud-based solution supports patient adherence to medications and better healthcare outcomes with real-time access to financial assistance, prior authorization, education and critical clinical information. 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. 


For more information, follow the company on TwitterLinkedIn or visit www.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 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.








   June 30,
  December 31,
Current Assets          
Cash and cash equivalents  $30,536,420   $8,914,034 
Accounts receivable   7,424,499    6,457,841 
Prepaid expenses   627,573    360,146 
Total Current Assets   38,588,492    15,732,021 
Property and equipment, net   162,298    149,330 
Other Assets          
Goodwill   3,678,513    3,678,513 
Patent rights, net   2,658,765    2,766,944 
Other intangible assets, net   3,761,792    2,492,123 
Right of use assets, net   616,988    -   
Other assets and deposits   170,256    235,647 
Total Other Assets   10,886,314    9,173,227 
TOTAL ASSETS  $49,637,104   $25,054,578 
Current Liabilities          
Accounts payable – trade  $911,795   $411,010 
Accrued expenses   840,843    1,300,882 
Revenue share payable   1,964,440    1,908,616 
Current portion of lease obligations   111,968    -   
Current portion of contingent purchase price payable   1,074,000    -   
Deferred revenue   769,391    610,625 
Total Current Liabilities   5,672,437    4,231,133 
Non-current Liabilities          
Lease obligations, net of current portion   508,904    -   
Contingent purchase price payable, net of current portion   1,546,000    2,365,000 
Total Non-current liabilities   2,054,904    2,365,000 
Total Liabilities   7,727,341    6,596,133 
Commitments and contingencies          
Stockholders’ Equity          
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued and outstanding at June 30, 2019 or December 31, 2018   -      -   
Common stock, $0.001 par value, 500,000,000 shares authorized, 14,116,739 and 12,038,618 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively   14,117    12,039 
Additional paid-in-capital   71,764,534    48,725,211 
Accumulated deficit   (29,868,888)   (30,278,805)
Total Stockholders’ Equity   41,909,763    18,458,445 










   For the Three Months Ended
June 30,
  For the Six Months Ended
June 30,
   2019  2018  2019  2018
NET REVENUE  $7,006,291   $5,099,474   $12,215,725   $9,211,710 
COST OF REVENUES   2,687,143    2,236,751    4,270,623    4,244,842 
GROSS MARGIN   4,319,148    2,862,723    7,945,102    4,966,868 
OPERATING EXPENSES   3,839,105    2,589,126    7,332,894    4,884,467 
INCOME FROM OPERATIONS   480,043    273,597    612,208    82,401 
OTHER INCOME (EXPENSE)                    
Interest income   33,574    6,912    55,938    8,929 
Change in Fair Value of Contingent Consideration   (107,000)   -      (255,000)   -   
 TOTAL OTHER INCOME (EXPENSE)   (73,426)   6,912    (199,062)   8,929 
INCOME BEFORE PROVISION FOR INCOME TAXES   406,617    280,509    413,146    91,330 
PROVISION FOR INCOME TAXES   -      -      -      -   
NET INCOME  $406,617   $280,509   $413,146   $91,330 
BASIC   12,743,379    10,979,086    12,412,442    10,373,326 
DILUTED   13,806,761    11,949,593    13,467,562    11,517,604 
EARNINGS PER SHARE                    
BASIC  $0.03   $0.03   $0.03   $0.01 
DILUTED  $0.03   $0.02   $0.03   $0.01 










   For the Six Months
Ended June 30,
   2019  2018
Net Income  $413,146   $91,330 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:          
Depreciation and amortization   425,873    108,946 
Stock-based compensation   938,399    895,002 
Stock issued for services   241,077    118,820 
Change in fair value of contingent consideration   255,000    -   
Changes in:          
Accounts receivable   (966,658)   (2,079,823)
Prepaid expenses and other assets   (202,036)   40,320 
Accounts payable   785    (280,349)
Revenue share payable   55,824    (183,664)
Accrued expenses and other liabilities   (511,976)   (125,407)
Deferred revenue   158,766    195,966 
Purchase of equipment   (47,739)   (12,593)
Purchase of intangible assets   (1,000,000)   (56,651)
    Proceeds from issuance of common stock, net of commission costs   22,163,636    9,004,920 
    Expenses related to issuance cost of common stock   (301,711)   (835,526)
CASH AND CASH EQUIVALENTS - END OF PERIOD  $30,536,420   $12,003,864 
Cash paid for interest  $-     $-   
Cash paid for income taxes  $-     $-   
Intangible asset additions included in accounts payable  $500,000   $-   
Non-cash effect of cumulative adjustments to accumulated deficit  $3,229   $142,027 
Lease liabilities arising from right of use assets  $672,809    -   
Non-cash issuance of shares to WPP, plc  $-     $447,000 






Reconciliation of non-GAAP to GAAP Financial Measures



   For the three months ended
June 30,
  For the six months ended
June 30,
   2019  2018  2019  2018
Net income  $406,617   $280,509   $413,146   $91,330 
Depreciation and amortization   235,572    54,473    425,873    108,946 
Stock based compensation   543,130    516,700    1,179,476    1,013,822 
Non-GAAP net income  $1,185,319   $851,682   $2,018,495   $1,214,098 
Non-GAAP earnings per share                    
Basic  $0.10   $0.08   $0.16   $0.12 
Diluted  $0.09   $0.07   $0.15   $0.11 
Weighted average shares outstanding                    
Basic   12,743,379    10,979,086    12,412,442    10,373,326 
Diluted   13,806,761    11,949,593    13,467,562    11,517,604 







OptimizeRx Contact

Doug Baker, CFO

Tel (248) 651-6568 x807



Media Relations Contact

Nicole Brooks, Innsena Communications

Tel (860) 800-2344



Investor Relations Contact

Ron Both, CMA

Tel (949) 432-7557







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