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OptimizeRx Corporation (OPRX)
NASDAQ:OPRX
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OptimizeRx
(NASDAQ:OPRX)
71Outperform
Positive Factors
Digital advertising market
Optimizerx Corporation is committed to improving its communication regarding expectations with the street and expects to take share in the growing pharma digital advertising market.
Financial performance
OptimizeRx reported solid fourth quarter results with financial metrics that came in ahead of expectations across the board.
Negative Factors
Leadership changes
The news of CEO Will Febbo's resignation was unexpected, as it came shortly after he purchased shares and right before a holiday.
Strategic alternatives
The company's largest shareholder has urged consideration of strategic alternatives, including a potential sale, citing the resources required for substantial revenue growth.
OptimizeRx (OPRX) vs. S&P 500 (SPY)
Market Cap
$159.76M
Dividend YieldN/A
Average Volume (3M)865.50K
Price to Earnings (P/E)―
Beta (1Y)2.27
Revenue Growth28.81%
EPS Growth-8.03%
CountryUS
Employees128
SectorHealthcare
Sector Strength72
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-1.10
Shares Outstanding18,490,385
10 Day Avg. Volume391,587
30 Day Avg. Volume865,502
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.80
Price to Cash Flow (P/CF)22.20
P/FCF Ratio25.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.80Price Target Upside13.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
OptimizeRx Business Overview & Revenue Model
Company DescriptionOptimizeRx Corporation, a digital health technology company, provides various solutions to life sciences organizations, healthcare providers, and patients. The company's products and applications include financial messaging, a virtual patient support center that allows doctors and staff to access sample vouchers, co-pay coupons, and other patient support through their EMR and/or e-prescribe systems; and brand awareness and therapeutic support messaging services, such as brand awareness messages, reminder ads, and therapeutic support and unbranded messages. It also offers brand support services, which focuses on educating and working with pharmaceutical manufacturers on identifying, formulating, and implementing eRx media strategies, including drug file integration, sales force training, and strategy development services for promoting their products. In addition, the company operates cloud based Mobile Health Messenger platform that provides interactive health messaging for enhanced medication adherence and care coordination; and HIPAA-compliant automated mobile messaging platform, which allows pharmaceutical manufactures and related entities to directly engage with patients to enhance regimen compliance. Further, it offers patient programs with treatment and affordability information, lifestyle and condition trackers, internet device connectivity, forms, and surveys. Additionally, the company provides evidence-based physician engagement solution applied to real-world data to assist healthcare providers in identifying patients who may be qualified for specific therapies, raise awareness of patient access pathways, and identify early indicators of non-adherence among patient populations. It also offers therapy initiation workflow focused on accelerating patient access to treatments where time-consuming medical documentation is required of HCPs prior to pharmacies dispensing prescribed drugs. The company was found in 2006 and is headquartered in Rochester, Michigan.
How the Company Makes MoneyOptimizeRx makes money through a revenue model that focuses on providing its digital health technology solutions to pharmaceutical companies, healthcare providers, and other stakeholders in the healthcare ecosystem. Key revenue streams include subscription fees, service fees, and transaction-based fees for the use of its platform. Pharmaceutical companies pay to utilize OptimizeRx's platform to enhance their reach to healthcare providers and patients, offering services such as e-coupon distribution, patient messaging, and adherence support. Significant partnerships with EHR systems and healthcare networks also contribute to its earnings by expanding its platform's reach and integration capabilities.
OptimizeRx Financial Statement Overview
Summary
OptimizeRx demonstrates robust revenue growth and a solid balance sheet with low debt levels. However, consistent operational losses and negative profitability margins pose concerns. Improvements in cash flow are encouraging, but sustained profitability is needed for stronger financial health.Income Statement
OptimizeRx has shown significant revenue growth, with a 28.8% increase from the previous year to TTM. However, the company remains unprofitable, with a negative net profit margin of -16.9% and negative EBIT and EBITDA margins, indicating operational challenges.65
Positive
Balance Sheet
The company has a strong equity base with a high equity ratio of 68.4% as of TTM. The debt-to-equity ratio is low at 0.02, indicating prudent leverage. However, the company has been incurring losses, which has impacted return on equity.70
Positive
Cash Flow
OptimizeRx has improved its cash flow with positive operating cash flow of $4.69 million and free cash flow of $4.36 million in TTM, compared to negative figures in the previous year. However, the free cash flow to net income ratio is negative due to ongoing losses.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 92.13M | 71.52M | 62.45M | 61.29M | 43.31M | 24.60M | Gross Profit |
| 58.31M | 42.90M | 38.97M | 35.64M | 24.11M | 15.44M | EBIT |
| -13.71M | -26.40M | -12.29M | 482.23K | -1.89M | -3.69M | EBITDA |
| -12.02M | -21.31M | -9.42M | 2.33M | -59.43K | -2.76M | Net Income Common Stockholders |
| -15.54M | -17.57M | -10.59M | 273.93K | -2.38M | -3.14M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.38M | 13.85M | 74.14M | 84.68M | 10.52M | 18.85M | Total Assets |
| 171.17M | 183.37M | 134.65M | 140.99M | 60.33M | 56.64M | Total Debt |
| 2.38M | 36.82M | 234.43K | 327.71K | 448.75K | 564.18K | Net Debt |
| -11.00M | 22.97M | -17.97M | -84.35M | -10.07M | -18.29M | Total Liabilities |
| 54.17M | 56.82M | 8.54M | 9.61M | 10.35M | 11.78M | Stockholders Equity |
| 117.00M | 126.55M | 126.11M | 131.38M | 49.97M | 44.86M |
| Cash Flow | Free Cash Flow | ||||
| 4.36M | -8.11M | 10.41M | 240.04K | -6.44M | -3.25M | Operating Cash Flow |
| 4.69M | -7.24M | 10.65M | 726.04K | -6.31M | -1.66M | Investing Cash Flow |
| -330.00K | -25.34M | -58.18M | -486.00K | -124.72K | -10.58M | Financing Cash Flow |
| -2.09M | 28.22M | -18.95M | 73.92M | -1.90M | 22.18M |
OptimizeRx Technical Analysis
Positive
8.64
Price Trends
6.21
Positive
5.68
Positive
7.12
Positive
Market Momentum
0.92
Negative
64.13
Neutral
49.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPRX, the sentiment is Positive. The current price of 8.64 is above the 20-day moving average (MA) of 7.10, above the 50-day MA of 6.21, and above the 200-day MA of 7.12, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 49.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPRX.
OptimizeRx Risk Analysis
OptimizeRx disclosed 33 risk factors in its most recent earnings report. OptimizeRx reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
OptimizeRx Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $38.11B | 54.09 | 13.63% | ― | 16.20% | 34.71% | |
71 Outperform | $159.76M | ― | -16.51% | ― | 28.81% | -8.03% | |
67 Neutral | $974.81M | 48.90 | 5.72% | 0.35% | 4.51% | 32.28% | |
60 Neutral | $1.64B | 133.47 | 1.03% | ― | -3.04% | ― | |
50 Neutral | $1.12B | ― | -5.96% | ― | 30.09% | 36.14% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% |
* Healthcare Sector Average
Performance Comparison
OPRX
OptimizeRx
8.64
-2.78
-24.34%
MDRX
Veradigm
4.25
-3.55
-45.51%
HSTM
HealthStream
32.03
5.99
23.00%
OMCL
Omnicell
35.01
6.38
22.28%
VEEV
Veeva Systems
234.21
3.82
1.66%
EVH
Evolent Health
9.60
-22.33
-69.93%
OptimizeRx Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 108.70% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with several achievements, such as surpassing revenue expectations and expanding margins, alongside successful cost-cutting initiatives. However, there was a slight decline in cash reserves and ongoing debt obligations. Overall, the highlights significantly outweigh the lowlights.Highlights
Exceeded Guidance and Street Expectations
OptimizeRx reported revenue of $92.1 million and an adjusted EBITDA of $11.7 million for Fiscal Year 2024, surpassing both guidance and Street expectations.
Strong Revenue and Margin Growth
Fourth quarter revenue increased by 14% to $32.3 million compared to the same period in 2023. Gross margin expanded to 68.2% from 62.9% year-over-year.
Significant Cost Savings
Operating expenses decreased by $10.4 million year-over-year, with cost-cutting initiatives saving approximately $5 million annually.
High Net Revenue Retention
The net revenue retention rate improved to 121%, up from 105% in the previous year.
Lowlights
Slight Decline in Cash Reserves
Cash and short-term investments decreased to $13.4 million as of December 31, 2024, from $13.9 million the previous year, primarily due to debt pay-down.
Continuing Debt Obligations
The company's current debt balance stands at $34.3 million after paying off $2.5 million of principal during the fourth quarter.
Company Guidance
During the OptimizeRx Fourth Quarter and Full Year Fiscal 2024 Earnings Conference Call, CEO Steve Silvestro expressed optimism about the company's growth and transformation under his leadership. He announced that the company's revenue and adjusted EBITDA for fiscal 2024 surpassed guidance and street expectations, coming in at $92.1 million and $11.7 million, respectively. The fourth quarter revenue was $32.3 million, a 14% increase compared to the same period in 2023, driven by increased DAAP-related revenue streams. The company's gross margin for the quarter rose to 68.2% from 62.9% a year ago, attributed to a favorable solution and channel partner mix. The operating expenses for Q4 decreased by $10.4 million year-over-year due to lower M&A-related costs and cost-cutting initiatives. The company aims to become a Rule of 40 company over the next three to five years by driving top-line growth and expanding EBITDA. The focus will be on customer centricity, expanding DAAP deals, and transitioning to a subscription-based model for data services to enhance revenue predictability and margins. The company witnessed strong momentum in DAAP deals, with a 100% year-over-year increase and an improved net revenue retention rate of 121%, up from 105% in the prior year.OptimizeRx Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
OptimizeRx Appoints Stephen Silvestro as New CEO
Positive
Mar 10, 2025
On March 10, 2025, OptimizeRx Corporation announced the appointment of Stephen Silvestro as its new Chief Executive Officer. Silvestro, who has been with the company since 2019, brings over 20 years of experience in health technology and services. His leadership is expected to drive the next phase of the company’s growth, focusing on operational excellence and strategic partnerships. The appointment follows a rigorous search process and marks a pivotal moment for OptimizeRx as it aims to enhance its market position and shareholder value.
Executive/Board Changes
OptimizeRx CEO William Febbo Resigns, Leadership Transition Planned
Neutral
Jan 10, 2025
OptimizeRx announced the resignation of William J. Febbo from his roles as CEO and Board Member effective December 31, 2024, and outlined the terms of his separation agreement. The agreement includes a continuation of salary, bonus payment, and health benefits for Febbo, who will also provide advisory services until March 2025, while adhering to non-compete and non-solicitation clauses, reflecting a structured leadership transition with potential implications for company stability and stakeholder relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.