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OptimizeRx Corporation (OPRX)
NASDAQ:OPRX
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OptimizeRx
(NASDAQ:OPRX)
Rating:71Outperform
Price Target:
$11.00
▼( -7.95% Downside)
Positive Factors
Financial Performance
OptimizeRx reported solid fourth quarter results with financial metrics that came in ahead of expectations across the board.
Revenue Growth
The company's long-term vision is to be a 'Rule of 40' business, having already scored 41, which is a positive indicator of its financial health.
Strategic Positioning
The legacy healthcare provider platform is seen as having few competitors of scale and is challenging to replicate, making it attractive to larger strategic entities.
Negative Factors
Acquisition Challenges
The anticipated growth from the recently acquired Medicx platform has not met expectations, pressuring the direct-to-consumer growth.
Acquisition Costs
The price paid for the Medicx acquisition is questioned due to current challenges affecting its growth.
Leadership Changes
The departure of the former CEO has left a vacancy, providing a significant opportunity to evaluate strategic options.
OptimizeRx (OPRX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$225.64M
Dividend YieldN/A
Average Volume (3M)270.73K
Price to Earnings (P/E)―
Beta (1Y)1.98
Revenue Growth20.66%
EPS Growth17.97%
CountryUS
Employees128
SectorHealthcare
Sector Strength43
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.08
Shares Outstanding18,495,111
10 Day Avg. Volume422,200
30 Day Avg. Volume270,728
Financial Highlights & Ratios
PEG Ratio-0.53
Price to Book (P/B)1.57
Price to Sales (P/S)0.00
P/FCF Ratio41.62
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit3.51
Enterprise Value/Ebitda-2.89
Forecast
1Y Price Target
$16.50Price Target Upside38.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
OptimizeRx Business Overview & Revenue Model
Company DescriptionOptimizeRx Corporation (OPRX) operates within the healthcare and technology sectors, offering digital health technology solutions. The company is primarily engaged in providing a platform that facilitates communication and collaboration between pharmaceutical companies, healthcare providers, and patients. Its core products and services include solutions for electronic health records (EHR) integration, patient engagement, and access to medication savings and support programs.
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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 92.13M | 71.52M | 62.45M | 61.29M | 43.31M | Gross Profit |
| 59.38M | 42.90M | 38.97M | 35.64M | 24.11M | EBIT |
| -13.71M | -26.40M | -12.29M | 482.23K | -1.89M | EBITDA |
| -8.90M | -21.31M | -9.42M | 2.33M | -59.43K | Net Income Common Stockholders |
| -20.11M | -17.57M | -10.59M | 273.93K | -2.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.38M | 13.85M | 74.14M | 84.68M | 10.52M | Total Assets |
| 171.17M | 183.37M | 134.65M | 140.99M | 60.33M | Total Debt |
| 33.19M | 36.82M | 234.43K | 327.71K | 448.75K | Net Debt |
| 19.81M | 22.97M | -17.97M | -84.35M | -10.07M | Total Liabilities |
| 54.17M | 56.82M | 8.54M | 9.61M | 10.35M | Stockholders Equity |
| 117.00M | 126.55M | 126.11M | 131.38M | 49.97M |
| Cash Flow | Free Cash Flow | |||
| 4.78M | -8.11M | 10.41M | 240.04K | -6.44M | Operating Cash Flow |
| 4.89M | -7.24M | 10.65M | 726.04K | -6.31M | Investing Cash Flow |
| -450.00K | -25.34M | -58.18M | -486.00K | -124.72K | Financing Cash Flow |
| -4.91M | 28.22M | -18.95M | 73.92M | -1.90M |
OptimizeRx Technical Analysis
Positive
11.95
Price Trends
8.97
Positive
7.18
Positive
6.89
Positive
Market Momentum
0.88
Negative
64.27
Neutral
76.73
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 11.95 is above the 20-day moving average (MA) of 10.01, above the 50-day MA of 8.97, and above the 200-day MA of 6.89, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 76.73 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $225.64M | ― | -12.90% | ― | 20.66% | 17.97% | |
63 Neutral | $271.44M | ― | -19.80% | ― | 4.88% | 37.87% | |
58 Neutral | $481.45M | ― | -86.36% | ― | -3.04% | -152.59% | |
54 Neutral | $115.25M | ― | -44.04% | ― | 2.79% | 58.22% | |
52 Neutral | $5.19B | 3.04 | -44.20% | 2.82% | 16.59% | -0.39% | |
51 Neutral | $191.14M | ― | -60.75% | ― | 4.66% | 11.33% |
* Healthcare Sector Average
Performance Comparison
OPRX
OptimizeRx
11.61
-0.96
-7.64%
HCAT
Health Catalyst
3.74
-3.11
-45.40%
AMWL
American Well
7.44
-2.48
-25.00%
SOPH
SOPHiA GENETICS
2.93
-1.77
-37.66%
DH
Definitive Healthcare Corp
3.14
-2.52
-44.52%
OptimizeRx Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 29.89%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong revenue growth, improved EBITDA, increased guidance, and progress in transitioning to a subscription-based model. Despite some challenges, such as a slight decrease in gross margin and a decrease in net revenue retention rate, the company demonstrated significant improvement in financial metrics and operational execution, positioning it well for future growth.Q1-2025 Updates
Positive Updates
Revenue Increase and Improved EBITDA
First quarter 2025 revenues increased 11% year-over-year to $21.9 million, with adjusted EBITDA coming in at $1.5 million, an improvement of nearly $2 million year-over-year.
Strong Contracted Revenue Growth
Contracted revenue increased more than 20% year-over-year, positioning the company favorably for the rest of the year.
Increased Guidance for 2025
The company increased its guidance for the year, expecting revenue between $101 million and $106 million, with adjusted EBITDA between $13 million and $15 million.
Progress in Subscription-Based Model
Over 5% of projected annual revenue for 2025 has been converted to subscription contracts, indicating early momentum in transitioning to a subscription-based model.
Significant Improvement in Net Loss
Net loss for the first quarter of 2025 was $2.2 million, a substantial improvement from a net loss of $6.9 million in the same period of 2024.
Strong Operating Cash Flow
Operating cash flow came in at $3.9 million for the first quarter, with a cash balance of $16.6 million at the end of the quarter.
Decrease in Operating Expenses
Operating expenses for the quarter ended March 31, 2025, decreased by $1.8 million year-over-year.
Negative Updates
Decrease in Gross Margin
Gross margin for the quarter decreased from 62% in Q1 2024 to 60.9% in Q1 2025, primarily due to product and channel partner mix.
Net Revenue Retention Rate Decline
Net revenue retention rate decreased slightly, with expectations to reach around 100% by the end of the year.
Debt Balance
The company has a debt balance of $33.8 million, though it paid off $6.2 million of principal through the first quarter of 2025.
Company Guidance
In the OptimizeRx First Quarter Fiscal 2025 earnings call, CEO Steve Silvestro reported strong financial performance, with Q1 revenues rising 11% year-over-year to $21.9 million and adjusted EBITDA improving to $1.5 million from a $0.3 million loss in the previous year. The company increased its full-year guidance, projecting revenues between $101 million and $106 million and adjusted EBITDA between $13 million and $15 million. The contracted revenue as of the end of Q1 exceeded $70 million, indicating over 80% visibility for the full year. The company's focus on transitioning to a subscription-based model showed early success, with over 5% of projected annual revenue converted to subscription contracts. Gross margins for the quarter were at 60.9%, slightly down from the previous year's 62%, influenced by an increase in DTC-related managed service revenue. OptimizeRx also reported a net revenue retention rate of 114% and average revenue per top 20 pharmaceutical manufacturer at approximately $3 million. The call highlighted the company's strategic initiatives, including leveraging a large point-of-care network and advancing a data-driven omnichannel technology platform to enhance customer engagement and improve patient outcomes.OptimizeRx Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
OptimizeRx Announces Plan to Appoint New Director
Positive
Apr 18, 2025
On April 18, 2025, OptimizeRx Corporation announced its plan to appoint a new independent director to its board in the second half of 2025, as part of its ongoing efforts to refresh and expand its board of directors. This decision follows constructive engagement with Whetstone Capital Advisors, which withdrew its notice to nominate director candidates for the company’s 2025 Annual Meeting. The addition of a new director aims to enhance the board’s expertise and support the company’s strategy to build market share and drive revenue growth under the leadership of new CEO Steve Silvestro.
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.
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.