OPRX - Earnings call transcript Q2 2018

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Operator

Good afternoon, and thank you for joining us today to discuss OptimizeRx Second Quarter ended June 30, 2018. With us are the company's Chief Executive Officer, William Febbo; company President, Miriam Paramore; and Chief Financial Officer, Doug Baker.

Following their remarks, we'll open your call to questions. Then before we conclude today's call, I'll provide some important cautions regarding the forward-looking statements made by management during the call. I'd also like to remind everyone that today's call is being recorded and will be made available for telephone replay via instructions in today's press release in the investor's section of the company's website.

turn over to Will OptimizeRx, like Febbo. I'd the to call CEO, Now, sir. go Please ahead,

William Febbo

very you joining today. the for afternoon, us call Thank Good on much. everyone, and thanks

made seen health digital platform. earnings As growing messaging by now of progress have release, you've we a lot our today's

based our and future improvement call the achieved realized previous growth revenue quarters QX. We and results. growth investment and earlier to quarter record was continued and driven compared on Revenue the of look to client budget, we've up board been We sequentially about our to expansion. from and $X.X consecutive On continued foundation quarter profitability talk year-ago return laying strong across than was growth in we'll This and by record a on expected. today, quarter million. the a seventh XX% to demand support saw as XX% increasing

Health to at expanding Messaging reach Our growth. and physicians our fuel to revenue Digital continue together point-of-care

In six goals, fact, new this most Even and the to we're through just have we revenue begun with exceeded XXXX, year. only halfway have open internal this, EHRs we only in market. already all launched

all to which margins. As platform have our we of show is areas starts discussed, when scale hit evident we in expanding three growth, really our

half we fact, XX.X% to second exceed year. expect the and margin again quarter, the for of we the goal surpassed goal In XX%, at of gross our previously announced this in

bit pharma our our Now, and opportunity to into numbers and Health like the the to is a position to Solutions patients, I'd has and large to manufacturers, well as I'd you as deeper why Digital doctors, about dive so platform investment in before space with we also like growing. become why give so of this little perspective additional some Doug. on talk valuable

in this you or many Let themselves precisely This not case their is and on in and adherence? dollars clients, billions clinical today. the its to educate being developing communicate able pharma me on question. pose of predicament spending benefit the find a your just patients imagine and companies Can on drug cost physicians, which

know, it's know, health difficult many What to increasingly reps undergoing been companies, for late. is sales physicians don't however, to most of through pharmaceutical As care want the market the becoming they people changes in in their get we all has field, reach. front of acting

spending interface, and a this of it. squarely the even hospitals In hours Sunshine it are our the day through don't Act results, test issuing address Physicians requirements, space similar days country the logging in fact, the and reps e-prescriptions. with reporting let these more notes, in or also than huge the whether viewing problem platforms the This records is in health because EHR a more door. half interacting be than electronic five

fact, XXXX EHRs prescriptions In XX% amazingly alone, of This billion high were use that number exceeds than providers doctor more written. pharmacy. the how of e-prescriptions ambulatory in care two to now transmitted all reflects e-prescribing XX% and from

also a reveals into trend a technology reaches potential In technology the few has these of the has billion Of large OPRX over involve last The means the XX% program. Remember, this more of transactions health deliver million require accelerated XXX in. than market. our connected how OptimizeRx copay very it's be e-prescriptions two annually, that to why segment the is with transmitted hospital now e-prescription fact, the and now This of all transactions systems medications software. adoption significant that brands most digital e-prescribed. e-prescription years,

available patients, The copay copay to be $X saving has With total our clients, from into estimate fully programs. million billion the these well channel. of to this indicators a increasingly the north on factors market prescriptions once worth cover escalating shifted Based cost demand. adopts billion and will we the in over set of healthcare, market and is being especially industry to agencies, pharma and aside $XXX programs partners, increasingly

believe and engaged becoming in room, to or the directly the patient where effective communicate. most doctor also of waiting the the care, together that We way is point

care medicine treatments US at more costing it, communication enablers platforms tremendous that grows $XXX greatest more more more market and leads base and personalized further way our health realized will day potential at non-compliance current especially client healthcare potential. our each like improving system. integrate annually. the prescribed, prescription to health that when than is and expand Any and commonly poor see billion system As we you costs we true e-prescription consider outcomes critical the in-developed digital have and as for healthcare in professionals. This look industry outcomes, increasingly ours and technology specialty Furthermore, you we based flow component popularity, exist every pharma point-of-care. the channel being within point-of-care throughout and the of reach, are becoming work be is solutions our reducing between platform the health This

I'll remainder CFO, results over Paramore, will Now, will year. discuss little map to President, road our Then with to I'd our our and turn to talk of walk more Doug for us a our Doug? the and Miriam who for like product QX. operational the through Baker, bit channel about strategy. our return call the outlook the financials Then latest

Doug Baker

and doesn't our to from in second quarter the good The press is on a revenue copy the Brand two increased about release brands digital and XX% The million. the core people directly growth website. June this pharmaceutical represent. XX, everyone. with a with actual increase. distribution A Historically, Financial because we is metric that relations partners. XXXX revenues. Prior our But we've away of Will moved Messaging, new XXXX. to it investor messaging release ask due to Soft of products, $X.X reported the our of section record launch our to to increase also call, channel through available contributed second of of number primarily net afternoon, quarter coupled in issued results the ended of Thanks, broader new We brands correlate we

achieve improved $X brand share million was For and to expect of another the focus gross quarter to revenue to in our improvement primarily brand product in and $XXX,XXX. one due focused our maybe QX compared gross over specialized target under may for This on through We mix of least us XX.X% increased a XXXX maintaining second margins of on at to as remain margin XXXX. in reduction more XX% our expense. our quarter fourth in XX% these example, growth of while margins Strong big revenue revenue year. generate last

the related $X.X were same from to due as revenue up decreased XX% compared important million growth in It expenses is second quarter that increase same the to XX% a expense additional operating to expenses in percentage of year-ago $X.X The year-ago XXXX of quarter. note, primarily however, initiatives. to to Our quarter. as is million, the in operating

We expect our on the and very as overall to operating marketplace. expand business a quarter-over-quarter further business in slightly active continue our our expenses implement dynamic plan increase a we operations and to basis to grow

$XXX,XXX per operating second year-ago income $X.XX a of in allowed as in us for to to in a expect quarter The revenue revenue. quarter the Profitability expense quarter. attain the share, as percentage continue diluted was expenses we primarily to $XXX,XXX or a operating profitability or revenue strong to XXXX. increase However, to as of compared decrease. of was of $X.XX decrease and loss net due per the percentage Net share

six-month strong ended for profitability Our allowed the us also June period quarter second XX. to achieve

a quarterly on profitable be to continue basis. to expect We

Although, particular one-time expenses related growth to and in initiatives any quarter. the in result could loss investments quarterly the

turning increase due balance Now, sheet, completed the of in cash $X.X cash was XX, to to to May, generated at equity $XX compares XXXX. raise This and cash million XX, equivalents approximately This December $X.X in which XXXX. June million. net at million proceeds the totaled

debt-free. we In addition, operate continue to

on basis to of have wraps results. for expect positive remainder a operations cash well. quarterly financial the up That from flow our as XXXX We

Now, to call over Miriam. I'd turn to like the

Miriam Paramore

Doug. Thanks,

little plan quarter. share well detail I'm about executing happy growth our are against We and this to our achievements a more

to reach through including regarding or healthcare point-of-care of our providers, First, HCPs, hospital our our I'll expansion discuss comments strategy. broadening network,

roadmap, Second, solution. I'll I'll and product data information on our our on update and analytics provide third, some an give

healthcare about HCP talk or we'll First, reach. provider

demonstrate earlier, the balance million sheet earnings to high to capital is additional portion a use completed the strong, expand Today's against bolstered we make touched investments sales our the the ambulatory $X continue by in our of on to our marketing further core ROI quarter. raise Doug markets where to proceeds release spends. pharma plan As laid channel into and out

channels, this regarding our reach summarize new We quarter. and one HCPs expansion. I'll our channels Regarding launched through that to three new ePrescribing channel our EHR accomplishments

channel year-to-date full-year Will than seven half Care. clinical said, the decision office-spaced high have first-ever against only In these more addition, our year. channels we support channels. halfway to of The implemented additions goal we're Combined, bring total very we reaches Evidence channel, a OptimizeRx some six concentration. the of through new a our HCPs. specialties, communication In as And expansion network digital

highlight to Evidence reach dermatologists XX% our that partners, of one of the with Care. excited over additional we're channel about example, few country. notes now in For newest the we A

forward integrate press a evidence-based integration us gives solutions over in an that for We messaging forward decision unique the strong tool, strategy. as months. is look hospital it first have at Care and in step messaging presence with in partnership EHR hospital with access clinicians our that Evidence It's partnership it's rolling clinical XX time, the our this important from for the to them release, our with coming the the a it treatment reliable, industry-leading three within is as little Evidence recommendations space. recall to ability first first firsts. may The out Care workflow, you provides bedside that seconds. As us into support provides with various hospital vendors the to

in opportunity plan compared new hospital expand which us, ambulatory our placement also significant market to essentially is further for representing the growth channel into the We market. traditional as to a

with selectively will clients pursue high-priority health to connections by We our major to by do and EHRs the pharma working hospital-focused system. this building

for to first and lay into expansion Connect, expansion Europe. Turning international Patient our partnering the by we to reach, foundation growth continue with future

Our to and Patient HCPs with distribution millions Connect strategic of international with and expand patient, pharmacy alliance health client, potential to has the of network. the Connect Patient EHR digital messaging for our

of advantage European U.S. take opportunity the addition, now the OPR clients Patient Connect's to the In in network have will

quarter, to this cross-trained plan, developed early are to respond we opportunities. joint growth including capabilities, we sales and During These and aligned market days, to together. our a respective now our go-to have are staff, pursue begun

and We PILOT growth expect XXXX. revenue in in to revenue XXXX see

ePrescribing growing of is partners capital partners this that and products comes we to possible recent Now, onto and carefully higher QX. must to and server-based solutions the ramp-up working technologies. capital make the by the our product complex running easy we process to to software-upgrade use will The still roadmap; try and important hope raise when faster T of to on are year, additional building, which One is in after of our technology. our that invest we suite launching, to have utilization services. EHR with plan it remainder our These cycles be managed, talk to as messaging and as facilitate

clients are existing planning capture for focused our We shortly the on XXXX. annual in pharma which to more session budgets bringing solutions starts new to

Each our proposition team stakeholders, effective sales me. ultimately is period. solution that affordability Excuse broader set. and and solution all are arming value measurable, brings compelling with a transparent, for adherence-focused We a

our in our the powers of to We increased invest Turning and investment leadership brought team. technology underlying this new and data technical continued strategy. and in in our that analytics, size the we engineering data solution, quarter we'll

changes our our data On analytics The in technology more provide will and the we significantly to to future and warehouse, underpinning growth plan in new and warehouse data invest both support valuable of customers. and foundation, These value our data investment our insight talent. an our is proposition. including reporting enhance the capabilities solid will

to revenue Our value and intent potential. is increase client recurring our more data ultimately to analytics our with bring and base

QX as to progress. will after update investment the community its We

top-line them to While market fluctuations and these expect position further in strong profitability, may growth sustaining our as initiatives space. while drive our growth and in in margin expansion quarterly result investments leader we the

that, with like turn the I'd to call over Now, back to Will.

William Febbo

of quality work. outcomes complex, a is we point I've an for coupled with plans section, national drug fewer cost-burden Nice unprecedented and we'll health relates then generic storm really Miriam, rates increasingly to high-deductible as to with face and the focal follow as to a patient perfect Doug. copays of thanks, and it improving medication. needed at creates Q&A. The Medication higher adherence price initiative aimed Today's environment, barriers their little lowering and of get a therapies. particularly patients know, is through options costs. healthcare got who Thanks, high

working are between patient-savings into physician-prescribed factor earlier, to current disease reach shown progression, technology medication that non-adherence embedding record, better unexplored medication now cost clear this critical As the is and a avoidable contributor there to of to with in dynamic. higher costs believe billions OptimizeRx non-adherence healthcare connection a of studies health directly there's reducing challenge have and, is annually. high outcomes, I the cost workflow-related we noted believe which strategies Recent is the solutions. primary We of patient electronic poor ways costs. that to address especially piece a the

their allows of not lot streamlining these because of point improve them to technology about of helps cost programs critical patients. clinical have it companies by identifying value communication process available improves they financial a in solutions. patient and investment medication only the with providers the time savings to And already extract This adherence outcomes, care. looking but kinds patients work technology doctors Our between pharma for also at healthcare as by from their for to EHR not day providers and be that's educating of greater do

time We when helps our as data to seeing of that investment average store don't is as for samples, have clients. potential on cloud-based spending return our the of providers ROI one supporting and major sales growth encourage our the eliminating by the to with an reps. by solves the Also adoption This measure progress. healthcare are clients' they our pharma fact also well channels drug points pain platform five physical EHR strong need we manage

problems XXX% up the population they on means to or assistance to severely programs that rely market, financial HCPs offices programs method COP industry's clinical assistance physicians the ambulatory to OptimizeRx a help financial programs of can increasingly financial programs care, savings provide our patients. and access tandem, regain As critical from challenges have point-of-care making to of high-deductible with and to physicians outcomes, need I have HCP's as that down as need clinical nearly these the communication doctors that simply We their largest the of track costs patient insurance on this savings Data burden. better pharmaceutical and with between care when network for led plans. This doctors' mentioned challenges since digital gain doctors Unfortunately, costs the and missed reveals have their health from samples important medication deliver as earlier, offer. information opportunities and deductibles ways Through part access again, or to Through for network. to reopening because the patients drive improve critical new more efficient system XX% adherence and will they real-time and as these access initiatives. information limiting patients navigate as need the patients the banning the need are comply pharma companies benefit the to Kaiser information. the reps information their Many now convenient therapies half access patient. unaware. and due we for well workflow, risen Foundation to provide the physician win-win-win. are over the far copay the companies eliminates plans. critical they health administer, in by allocate, these pharma nearly to doctor their consistently health to nation's patients Family To the of patients In patients, savings companies as and now precisely medication and reaches and effectively EHR, it, OptimizeRx, unable are can access they are the point overcome the use doubled. simply of the keep identifying platform, pharma their challenges, cost help streamlined doctors in of healthcare Today, and then a many create to and XXXX, and

solutions, Our our thrilled job, team and our tremendous and our is culture. doing with service, are clients a

NASDAQ time. uplist Capital recent couldn't more Our in have at opportune come a Market

As strengthen and our elevate our to ROI for of enhancing profile, listing the to pharma corporate from our further of marketing broadening demonstrate our high NASDAQ and investors we network EHR partners, we continue spend liquidity our expect shareholder base. clients

that We are attention has pleased three are market community, leaders. and by analysts including execution our resulted cover greater emerging in companies the interest who financial now, sell-side in

as gross we're XXXX, continued domestically both options enhance strategic We of focused remain our second and and which the expanding from half will would internationally. and value. growth on revenue all channel core improvement margin see For and we we our our solutions, networks, partnering exploring generation scale, shareholder

that, the Operator? to the with Now fun what consider I open to like I'd part. call questions,

Operator

Martinuzzi Instructions] first We'll [Operator Lake you. to Thank Street. with go Eric

Eric Martinuzzi

the think impressive XX% you're that I GAAP profitable That's also it's on Congrats milestone. now. revenue nice growth, a but also pretty

William Febbo

Thanks, Eric.

Eric Martinuzzi

to wanted about when press evidence hospital hospital bit prepared Miriam commentary. remarks the about But little into further in there talked else release a the market. penetrating focus you us market? tell about I expanding can this care the and is in you strategically, that with the anything addressed

William Febbo

overall to it's was then complex. Miriam. But we start, detail it and I'll what too our revenue reasons. access highly go piece clients to there's are for it Yes. it's know we for We realized competitive market, critical into a much asking one. won't to hand the so Two, I'll over there,

to, all opportunity our is We of worth core our time incremental really clients' reach are have take the client of to at frankly, more actually we're that because think exclude and we you centric. next more touches of those time, is tremendous hospital get same too. color a it of little that reps we ambulatory systems bit threw growing can from the is quarter, believe Because time. has It maybe but they give which the going who percentages we you strategy entering. Miriam, highest concerns. can't can a This the out if which do it's and

mute. You're on

Miriam Paramore

you. Thank

Yes, Hi, Sorry. I was will Will. is on level. Eric. it high and mute. you, Thank multifaceted it I keep

it business of predominant those which that think in all of in the are there health Just and are and EHRs have. the various about that the out terms models systems them, EHRs

to prioritize. and to least health we can and Hope of have the systems large two-prong, those hospitals three-prong and move and effort and We of helpful? hospital which bit Each that clients champion they're with ready health both it sure that components it's have that's those those help Then action rather, work health is demand along. our are they of little and play. of important different, plans technology plug mention add work the the - communicating that the to systems all the a a investments in Those from facets EHRs, very time that of in installations technology; tweaked. really, and is terms making what that within the Then it's a them project up system at we'll are to EHR a strategy.

Eric Martinuzzi

Okay. of Well, stay-tuned-more-to-come, guess. I kind

far As way then they and orders, insertion know the coming year, I there's Will, spend, as customers your for and the the there's budget spend.

January six good their months you pretty the that? first XXXX, customers about were off. spends What seeing fired in campaigns back coming and any because mid-year? Are expanding getting good they've corrections, experience a about, had mid-course those You of

William Febbo

ROI, when, have showing and of budget biggest to quarter, our absolutely. additional service top transparent you if that's is solution obviously the or that the if QX very measurable good and go there's you be list. Yes, used, a can that's always

their process. else just additional them absolutely client year. their that on proactively a Yes, it's a mindset. does that into not talk line the loop there, all our do better going the we budget, are will about seeing operational them have different more we thinking waiting. tremendous have so really worked to in those 'XX. in out could through chance They about we're and for run and We before work We're we're say of We're what budgets, I excited go reach great for brands, as larger the keeping and the planning pretty the certainly, with job and telling through gives sales down that those in they team are great well It the them, team. a solutions, and to seeing you're we're about. going

Eric Martinuzzi

housekeeping It around the a for on lastly, like, Doug. million. as Then maybe looks XX-Q, was count now, Okay. end based the the of July item, share of XX.X

price diluted the so? share count that That count. pretty to about a You've X.X some Is to had think about dilution? Is right need we now profitable, diluted good appreciation. is use you're that XX.X count. basic or a that way But million a million, the million stock

William Febbo

are million - there's in That Yes. both fully shares. dilution, and there, to million would roughly, be and basic about extra related diluted a

Eric Martinuzzi

Got you.

thanks and taking my for questions Okay, congrats.

William Febbo

Eric. Thanks,

Operator

on We'll Richard continue Baldry with to Capital. ROTH

Richard Baldry

congrats a quarter. echo Thanks. great I'll on

on might of over offerings exceeding up that make talked incremental XX%. base your but a quarter assume how you incremental existing your share talk million, bit were gross of You of higher about gross gross that of margin through I a rents maybe materially margins your are on if margins, carrying goal your itself, the margins that type rev of little at about maybe help some Could the COGS grew The only Or sustainable? newer a look and had contribution is revenues. about we $XXX,XXX. happened? XX% a renegotiations

William Febbo

and Sure, starting this the think Rich. so last were product Hey, Then contracts, it's product done we're yes. Will. to and those really Good I It's year. your really mix to mix, voice. contracts hear year, see

can business to higher some sold, have than that their a to continue traditionally keep we've we and expect that solutions margin I have continue selling. would improve. We this

have agreements. share revenue We

built lower have alternative evidence channels, don't that care and slightly those a But some that, have is go these of we would that away. like business off share. Our are

to hitting see end year. I at it's contract continued think improvement same of and we the improvement, continued product time, mix think the the expect throughout and marginal I

Richard Baldry

translated about way the we to at again, the the of it incremental look bottom if line. revenues, XX% all Okay. Then,

more hyper it pace Given you've got, that stop, kind rate not pattern, the keep of infrastructure pretty you're out up just side that's a growth seem sustainable to me that build in term and to OpEx need growing. the would to the long accelerated, you'd

about profitability Now drop the materially early, are you've how the positive the that as number might down how longer and quarter? incremental much opposed think stop profit achieved we gross second in XX% generating, GAAP you OpEx do term to line saw in

William Febbo

pretty Yes. We've focusing just with on responsible profitability, not being very on fiscally been consistent our cash management.

top I say, think are going things that we we three three we I of small in But say group if or lot, behind things But invest had business this all money. very happen, does growth with a way OpEx either people we have grow relatively opportunities to the scale happen, if not in to all that tech. make of it. line nicely more will we get we

came it in us week we've It matter very scale. and come a think through my of them percentage one us, mainly get we provider, for I one question and and up. is that likes If we well had physicians you that last our they of as something technology a meeting dashboard, wrong. start that If would our then Board control will the chaos frankly, this, if to done should it pharma have and to they build. We value to high makes content. the to doesn't, proposition, easy expect just distributing

good team, so our have the on more tech our now is a to again, and someone Miriam's don't big We'll bring I to think to then, whole place increase expensive But people this and sales that's more excited we invest are a around manage. we're in leverage more, on starting technology the at talent. We're starting groups she's good team these will We automate solutions next to job to and side, need done on and bringing in purpose show. really operational about people hard scale of which the team. that week frankly,

Richard Baldry

Talked impacts about a pretty being maybe to seasonal about the QX for asking strong. Without these. guidance, little talk

pattern the a there's How launching strong of think period? more Sometimes that quarter. QX. of like we couple in about muted strong, programs be before QX real years the has could early in QX a potentially a people QX so QX, looks QX enough not softer little It do been pretty last

head You think some we of June after still HER into September recent strong patterns quarter? those change same launches Do seasonality the a launch, might that very hold? partner think quarter you and as

Doug Baker

feel say going to that more as have. Yeah, that at to closing budget time, our case, data same right? QX, But, data, view and starting more show. happening reach, the a just the into historically in really skewed budget investments some after you feel pilots, more I be of because strong wouldn't like QX, we thankful confident multiple new revenue. the QX last historical solutions about people talk QX pharma you've year second when that's is says it's later things said, because as but very We for clients little to got business a the half. got in and really otherwise. through We because right? good As back top time piloting of the Any on we've in that's us the which the happens, allows year, already and in several very we'll are go get and made we We're is real tech we

Richard Baldry

a Great. congrats and lot again. Thanks

Doug Baker

Thanks, Rich.

Operator

Thank you.

FBR. B. comes Andrew Riley D'Silva question next from with Our

Andrew D'Silva

my Hey, good Thanks for call. afternoon. taking

Just here. a few follow up questions

there closely any maybe to the ahead around is brings related to with you it space, or more you your say off, meaningfully the in if Then, and during touch really moving came a tied quarter. and were messaging can capacity top what's to table? position for more standpoint. from Would you here on just platforms, things in with getting growth? are walk looking line First this anomalies heavily the of what financial your Could messaging you it's for comfortable capabilities catalyst we more offering from brands to marketing brand feeling the more the

Doug Baker

our money. anomaly, Sure. is balance It's team revenue. anomalies. didn't Nothing out raise did Sales other it, and some call Nothing working. impact strange the to we a delivering, strange. sheet is operation team but That's No killing than technology is execution. Thanks, Andy. pure that

terms really They adopt also believe studies team, the a the growth and with run One, In that's of driven catalyst, and actually doubled impressed last maybe others more. revenue a for week the independent what this that had coming being really helps solid brands, with within we just them per couple ROI manufacturer, channel. they my It things. back gathering it, different national that I we sales on so do, have. ROI. by and of We've gets manufacturer

the think itself. We've at agency the channel I and particularly market, gone through Secondly, level. the educated

other really - I patient. this do looking get No do catalyst. we've right at getting comes the do they're you've Care their We're there, way in they technology it it got doctor, but to in we they're when areas. way think as We've how so I of we we then got three the need got the How a of adherence, it. and solutions we those affordability, really to without space, really physicians with be would job, when big do enabling ones. things in point think doing now and I the that that some the the say that's the do, the that's really our help anomalies. two don't don't first place are of and

Andrew D'Silva

Okay, great. color. very That's useful

or level space thinking how standpoint take seeing the are color on on. health losses about place? Any the industry does an really. wins What moving consolidation, EHR you're mean, system would from I mergers useful, primarily as continued be extremely - Just you consolidation these at the HCP

Doug Baker

grumpy. really expect like is such day. the fragmented a just it CRM are the back a Physicians in consolidation, that in of space market Yes, you lot

we care we think can taking of people Once all on That's either. on and software be We've on six very it's They day. med want to school nature. didn't the solving trained switch. they're just human that. be I through been difficult the like don't to it go don't computer, say up to they like computer problems. EHR, a changes, hours to They

physicians. cloud-based, the UI-rich, are going I less the switching. of seeing, not are clicks, really you're to do see type EHRs of the to value those more do a even well think added think, you're at purchased, with I day, going end lot that

see Our partners at we Then the can just have with as we've easier; solution of with lot out consolidation out a better is tremendously obviously a happening, to Allscripts-Practice Medicine, to a everything had solutions strategy easier. up time partners several which the There's work and a system. make rolling recently technology after server-based base makes and there. either changes, is been don't Athena's to of been had but Cloud-based mainly Fusion, them, the some going cloud-based user just other we've again that because a money or want There's they've not that management others, couple to we tech spent some is see I tremendous figuring Modernizing doing news the have, looking what years. enable the switch just few for like out and powerful and

Andrew D'Silva

come with that? of back we're much I that upswing in was I starting high at very queue. different life Okay, seeing to in looking a more specialty and little seeing data offerings. cover Two Obviously, questions this that software-focused, companies premium of a than any I'm I'll from I first that lot second had that that Are fair a enough. coupon, quarter? are for go showed this nominally priced-branded story more science-focused even drugs. any then you but more tailwinds the in because now angle the into hop you, prescription higher Is quick and correlation than at some resulting from

Doug Baker

the Yes. months. of administered come we just definitely mix, on have market to essential. working will specialty XX Part to to over and in in I mix and be the they're the the of next connected enabling But, coming only quarters that that a because and to wave in because are drug specialty over the drugs having more be we're we'll They're solutions new it mix said, it's financial the as grow. you is, mix assistance it, yes, think

William Febbo

really about how question. your last just the WPP means the on than I Q. the Street about I my should in we change is we I what behind This that it previously scenes, relationship. differently think slight be any necessarily saw to skimmed did? Okay. don't but care this the

Doug Baker

got usual. seat, very as business partner. and happy a Board It's shareholder, no. Oh, They've solid

William Febbo

luck and on good Wonderful. so you board. much, Okay. Thank

Doug Baker

Thanks.

Operator

Harvey Thank you. [Operator hear Instructions] We'll from Poppel PopTech. with

Harvey Poppel

the corporate of strategy, new Super raise with on especially gratifying. the the developments the Congratulations. very and quarter, uplisting, start

on that for the in in your the too and moment, of getting possibility future? better, bank cash are distant requirements now some not a continuing Just more that see side have you cash flow do M&A you the

Doug Baker

between for likes bit, companies large call. But at to things as fast, physicians. big have can companies last this and tracks say, I bias. It's the small to go industry little I time, we that Miriam very challenging railroad and wrong built last We think, the small have buy a companies talked now, same or so time, to a

across coming We for or big seasoned or all people constantly who of a really solutions trying minimum, Care, from what who talk Evidence affordability. spun some because, example, out We be like technology-enabled of we're Patient have to commercial a doing are Connect. for at adherence entrepreneurs, corporate element do to of are them could relationship, companies, there

the I I haven't just on very tell fit, can found perfect an eye it. you We I'm have cautious. but

Harvey Poppel

Thank you.

question with potential. market Second deals the

ambulatory You've of opportunity think compare market typically basis. the I sized from more the side ambulatory the times, would you market an hospital magnitude many in the side? How the on

Doug Baker

clients need communicate do a It's lot the - they big. of still it's things you're it's to real educate conferences billions If But It's points, to and other currently all lot physicians. prescriptions, of touch to the affordability. But not size apples and it's particularly of desperate influence existing I and right? XX% delivering adherence dollars. of that apples, to space, not the aren't physicians, a in and reps all with market where hard of It's a there, lot solution. the took a

If but early, the to hospital get effectively Miriam. and on We've that adoption the on it's all to our getting side. if you rapid into can clients, There I got we look you're systems our integration The you last spending takes need do. in Harvey, be on we going the three it, I top I bigger, watched ambulatory more going as time really four over much years. what think we space the will part or why at would you it convincing the we're it have say weapon. think were you're the But XX work technologically. for is less not side; see doing, hard to client it's XX, see that's a to lot client top side.

Harvey Poppel

Because you international, a of there obviously practical Is regulatory do a much forth? XX%. what as revenue differences of internationally, between the what something international are the in requirements I'm see that saying so on question three stream, By goes lot issue? what Similar material, happens, on next years? opportunity could XX, material two as your say real become or a as part and like

Doug Baker

I do think so.

language, to, hard but away just a globally, look any companies yes, Telemedicine would do that business. it. get very at content to with to of content right is huge from I'm stay it's countries other If for you quickly. media, when any international, form to and of large big growing the really piece in hopeful deliver I health partner very their it's are that technology-enabled Traditionally,

it. the we good talk to, think business I'm see some some in 'XX year probably there approach process, 'XX. from can revenue initial hoping, or as after we'll QX, planning in more of either QX I have that we'll we this QX

Harvey Poppel

you'd it call you slam point? said said you. half this this to if for alluded first at growth XX% one raise to if at half, almost may the out XX%, works seems didn't have past math point, they Do having but is that conference want disappointed threshold the Final your at or you be year all I at of a one that at over stalled you in point Even in exceed, XX%, like gains two, dunk. second question, think thresholds the out XX% you knocked

Doug Baker

we've because as don't of there's guidance. on close client smaller on I'm with the to that I have that do confident growth, XX%. to team. got protection do I'd do plenty still the think a I dangerous wanted to and great I partners a the That's giving you very true then getting if downside to hold right to growing feel that but thing side, company, terrific dollars solutions

just surface, really potential. the to we're it. us this scratching of channel, we're just a and think market's few the I a gives waking That really and one good in Harvey, up

Harvey Poppel

Thanks a lot. Great.

Doug Baker

Thanks, Harvey.

Miriam Paramore

go you. open. Chaz, Thank is Ron Please line private investor, ahead. your

Unidentified Analyst

afternoon. Good

EBITDA? Just a know I question the for in quick Doug Baker, it's was What XX-Q.

Doug Baker

- me, in of that have don't right front I but

Unidentified Analyst

the Don't a Thank a pocket. huh? you about you thought hard bad that money Okay. a time things; should see your way, as a burn I think make you. I them that, giving anything Two Don't favor, in a dunk your very bother. Then acquisitions, your slam the things and there. heavily refer it is luck, couple you I'll observation of tilted if were that is is saying Harvey, hole good. course, making that Make Q. let because by sure in deal just you nobody - in it to of

William Febbo

get at growing it. see can with agree if its that with couldn't ahead scale clients own, get. get that remaining to you, keep to want our physicians, don't we we Yes, look we We Ron. nicely, on Absolutely. more definitely plugs I of something will that. then yes, We've enough But access skis there. got But to on in

be You need to careful.

Unidentified Analyst

obviously about say It M&A you small in should commenting while do this making great or terms, be want market strategically with and about - earn-out to comments, I'm overall Any color? your whatever the company space. favorable asking the deals, anything

William Febbo

had multiples all, all than saw take out Yes. of Davis Everyday large - My have. well, Cover We Yes. they're first year, out take Thanks, McKesson Recently, and we companies. acquired saw Health. we Ziff Amazon tech-enabled Pack, by last solutions saw, longer very these We been Pill around companies being Ron. take They're these Meds. and

good is investors. that about relevant amazing; what's think for it's I the multiples when are

companies our Secondly, we with technology-enabled it's big do these what do need starting solutions keep to to position. are to really showing say, Okay,

help and But there's entry. care, does things. I'm I focused because where we're I we're think and activity barriers to good e-Prescribe at the built we've interesting be point in network to a is to us we've then. giants swimming that got protections really it a big right among tremendous is very affect an patients, good workflow, what place thankful that also that which this is outcomes and the feel on that of and market show

Unidentified Analyst

have large, been multiples The right?

William Febbo

Yes, XXx revenue Yes. and plus.

Unidentified Analyst

One that you in is patients. the thing is and all another focused government this on activity, better on, very environment for this I more. which touched One is more regulatory important think with of things thing, important making sorts

going that you're about talked good positioning. That you're be a to emphasis position and to doing. in help result say your able be in what a You continued That's as adherence. should to really commentary of be to outcomes

William Febbo

Ron. Thanks, agree more. Couldn't

Unidentified Analyst

Well, agreeing now. we'll stop

Okay.

Doug Baker

Ron, EBITDA your around to was on question $XXX,XXX, QX, answer

Unidentified Analyst

a context of positive. be disciplined you've going going right? a I'm of of about you're there's be flow I sorry, conflict to - the in got know invest what, taking operating you're it's a but What cash mean going take but saying You is to you're in - bit to which money one the what bit more money doing conflict you're a used - there expenditures, in and

William Febbo

at right. cutting. once. that's Remember, of any not yes, right. are over contract the we But It's we That's all depreciate those life hitting can

Unidentified Analyst

you. Thank

William Febbo

Ron. Thanks,

Unidentified Analyst

Really Will. job, good

William Febbo

you. Thank

Unidentified Analyst

and Doug And Miriam.

Miriam Paramore

you, Thank Ron.

Operator

remarks. Thank gentlemen. Febbo to this concludes would At or and the I question-and-answer additional to time, closing session. this like turn our now for conference back ladies over you, Mr. any

William Febbo

time, a and continued Well, I everyone, our on profile and I the to and day. improvement, industry. us joining out all stand your in really that we're or reach revenue our to forward in We the really we've always all feel for or look to call. have and a again, Miriam, great Thanks, free ready address comments reporting also to talking started our company in concerns ideas. to to just to Doug. the margin and future, progress, as you me, meanwhile, scale I believe thanks, growth, got business. for team potential on this the deliver believe getting

Operator

Thank you.

publicly quarterly be flow a from the that connect invest to invest conclude we growth of channel sales The additional to made and patient XXE partnerships; the Safe to data and company quarter; and particular available existing of in anticipate, Section the basis, plan expectation quarter-over-quarter and The hospital and only result continue targets; to undertakes revise investors revenue continued expectation in market; core date during margin growth could and solutions market; to investments amended, plan Examples in statements rolling make top NASDAQ that as loss call. of of warehouse to information, growth a and the margin continue from expect, XXXX its a in forward-looking of growth enhancing during operations over amended. solutions; messaging regarding may slightly the obligation in raise to quarterly should the identify a its and expenses more investments for statements the management basis; contain increase call, to in remainder the and data in gross the in on of company's seeking as the total before growth made. decrease; elevate margin Statements XXXX. into to investment operating Now, definition decisions. company's revenue any of XXA future clients; related value statements, base; because I'd estimate, in cautions initiatives supporting to they its Harbor any of words on although call the further expressions initiatives while shareholder in statement line listing growth; company's within the the overall the XXXX into company's today's the statement market expectation see statements further profitable new further made to speak Securities important by to and quarterly proceeds continue forward-looking one-time the These this growth the liquidity its proposition; percentage improvement various Section statements to like continued whether company's no to positive today's bringing position such A forward-looking expand was as for warehouse; company's expenses statements similar the forward-looking expenses new or include on to includes pilot corporate revenue update to scales; expanding cash forward-looking the further XXXX as plans presentation from or Securities operating in investments additional portion otherwise. sustaining used future the forward-looking Act of for Act company's the out estimation ambulatory expansion company's strong regarding space; statements market. coming as possible enhance solutions not recent to be XXXX plan months; company in XXXX to a driving leader will provide make use of messaging the its basis a broaden the profile, events,

or at inherently could subject could available events from and subject is forward-looking set on quantified. are XXXX. the which some on actual affect are and included statements, of differ SEC forward-looking and/or company's fiscal are forth and report the be statements materially by predicted XX, December Forward-looking underlying form risks, and those results which form XX-K Future company's contemplated business uncertainties, to sec.gov. ended to year and risks statements website uncertainties cannot the the financial website results in for and This annual on

website Please that August refer for press release company's today's Before www.OptimizeRx.com. to dial replay call for remind available we for be call. I instructions this to replay joining this us everyone the you like later end in our XX. This concludes would via at through Thank starting conference, today's will today. available evening

You may now disconnect.

OptimizeRx (OPRX) 12 Aug 182018 Q2 Earnings call transcript