OPRX - Earnings call transcript Q2 2020

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Operator

Good afternoon, and thank you for joining us today to discuss OptimizeRx Corporation's Second Quarter ended June 30, 2020. With us today are the Company's Chief Executive Officer, William Febbo; Company President, Miriam Paramore; Chief Financial Officer, Doug Baker; and Chief Commercial Officer, Stephen Silvestro.

Following management's remarks today, we'll open the call to questions. And 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 like to remind everyone that today's call is being recorded and will be made available for telephone replay via instructions on today's press release in the Investors section of the company's website.

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

William Febbo

afternoon, for have everyone. the Good X. Lisa. Thanks, Thanks Well, last on a we call joining only few since months passed spoke May today. on us

happened it. things all. us focused our good many are I is hope had everyone's again: in all you at words, but We consider health. The started the between business capture in commitment at healthy, hard all and instrumental very the to ourselves do So to thanking in of professionals OptimizeRx OptimizeRx The we during day-to-day have doctors around the communication as of many very care opportunities disruption an call the actually it for to patients. grateful be all is their team our by industry, feel want I scale pandemic very and listeners thank as environment. health conduit I to and much. previous this bravery. fortunate conference say to we

for our focused than our for are first XX% we value XXXX, faster statement, all at delivering on that anticipated, stakeholders. To pace of half the slower we grew half. We traditionally support a

XXXX. of million to $XX expect Epic in Innovation the connecting for doctors new additional enterprise XXX,XXX into reach We us out by annualized additional total growth clients We We deals, Cerner. half far to sets rate. up Lab, from our with for revenue. second secured our bringing an level enterprise value and solutions borne which nicely revenue this exceed X We network engagements closed of expanded our

has the situated middle time greater engagement at and a company never stakeholders. across we to of beat to goals In our smack fine-tuned market COVID. board, highly in our a impactful all when patient We we short, been continue build also internal due strategy demand the

what do in in for, the helps patients it improve platform Our digital we doctors, that are is in industry way. communication health affordable to all an

further, our like turn details go return through our business we Baker, I quarter. to the to on before who call outlook over second more for the winning discuss the the how Doug with then once rest year. take full the Now I'll have again, we for I'd then questions. and are it to call will Then once it -- will walk any financial of up us questions. our your open executive and we of Doug, the to away. team And help our today have on I CFO, to

Doug Baker

issued XXXX. Thanks, everyone. good with copy today, Will, results ended viewing for downloaded Investor afternoon, Earlier website. section and the from our may of be we The our available Relations and June that quarter XX, the a of is press second release

a copy a time that of filed ago, the with also We sec.gov. and also is SEC short XX-Q our available at

the the million, Our was for compared million, XX% Gross record a up $X.X XX% versus year quarter was $X.X year-ago ago. revenue a quarter. margin up to

last over XXXX financial the improved versus in product margin declined quarter and this year. unusually year an first The the heavier the gross quarter but favorable decline second mix a of mix of was a Our ago, year quarter. result XXXX percentage XX% in quarter to of was a of from this messaging

by gross for achieve margin XX% are the the to quarter. fourth year, XX% of a minimum least margin of gross at expect We but a targeting

travel in given from related as other $X.X $X.X to XXXX, second million but as XXXX million reduction increased the quarter decreased expenses of well stay-at-home quarter with operating reflects Our this year. of the policy. quarter decrease expenses first same the The the the compared largely of in in

the Our in XX% revenue, enterprise and shift a contracts decreased increase investment the towards to led in our sales commercial organization cycle.

It teams this product that gave Adjusted later and respond in in be investment is discuss EBITDA, operational to report Will the ability the as positive we is that to us black, items a to great non-GAAP and the year. quarter. marketing $XXX,XXX increase to call. to and the second in some going the Our be of measure, was back quickly financial expect which of for nimble a our we continue in to the rest

$XX.X but operationally an cash quarter. balance Our flow Cash $XX.X and earnout positive cash resulted our from for The payment remains million acquisition, at from strong. related sheet decrease we totaled equivalents were million, XX. March to the down CareSpeak

very are receivables because receivables high-quality our of Our customer base.

our they terms, customers revenue customer growth continue are of regularly and increasing strong predictably. pay our to payment and While because

We flow cash full -- future expect the in operations and positive generally to from year. expect quarters to for generate

debt-free do to capital for discussion and our raise financial of anticipate either foreseeable the or have continued to This in equipments not additional fund plans. operating to needing operate our We wraps our growth up results. future

So, back Will? I'd the like Will. turn to over call to

William Febbo

Appreciate Doug. Thanks, that.

we caution well in to on our new comes disruption we so among that the ground level situated continued when it I at of to the market to stakeholders. COVID-XX, and able fortunate communication due provide all digital be While to are the OptimizeRx, will are affect

really had of teams continuity, the year board, to connected see a the our and off great to we business to are clients terms with hats practically no and in operating team be and disruption and In glad operations. across our start the well, very continue my We to partners.

cash traditionally on expect this means with is we for hold slower the as our growth: year, of We three we the our patients 'XX. adherence. remainder year, half see digital COVID, and solutions. accelerated to digitally Doug increase. This those this We COVID-XX our shall of tailwinds very main therapeutic tailwinds, three affordability XX% areas. benefits and focus a the true 'XX drivers to half positive outlook accelerating the for in clients, doctors feeling in and first Our into along again enable partner has to positive network half flow, mentioned. which we given growth even communication health second are we and support prior and growth and around all awareness, Even have the

clients, our we're traction on multiple First, seeing terrific levels.

mentioned, as million revenue. is we to exceedingly shift annualized going $XX Our enterprise well, in agreements

Our activity communication piece Office new are point year further We our strategy. clients for half, our first within goals, for growth leaning has a drive our to the TelaRep, internal second clients we stand came to solutions ahead business We hotspots into we and as our around the COVID traditional this generating doctors ways will very of budgets pharma country and in of all coming far like next with client we engagement, the challenged marketing the possibly year. to for solution that and growth of from revenue continued non-digital of year had for to QX, in through interest we year. in perfect earlier, our in later expect care again years. a strong their -- see that be and our to hold patients. disrupted and hub Most critical growth base, said summer as early exceed for in solve organic and half. as the is coming as enrollment, which the the true expect patient

It's using to impact elective. on that providers focus remember essential their regard also we on patients. our the important to still treat in EHRs are to the medications, from home However, business, not

not e-prescribing in a in we material QX, did So see similar QX. to drop

part disrupted designed strong strategy of prevent some costs client decided new information demand in for overall the proceed all we have we of point been feel disruption. our Most care. the clients tailwinds conferences, base. to expect brands. as advisory our with launches in the live medical in to is so preparation delivers Medical due at of and of also our any around their gone digital that drive to of this terms increase back have to or liaisons, We This virtual, boards communication an have substantial mission-critical complexities in

our sales be with previous half, Of the our seen course, and continues growth importantly, shorter cycle to our increase perhaps revenue considerably rate for than but in above period. first we're XX%, have year increase XX% we more close the thrilled

there. man, network were driver we partners, busy of The our growth second is and of

We our the ability appropriate the Epic, considerably more XX digital maintain affordability. A terrific adoption additional telehealth partners as our the doctors to need at the further our an XX Change practices of In to affect extends gain is care highlighted doctors, be and network. of with up adherence to Healthcare, tool such solution digital and our a point note, allows of rapid tools hospital combat disruption which new theme to over to making trends Of clear their tools. for as digital additional Cerner to set discharge. our doctors digital quarter, patients. are integrated patients, with point other We third adoption to in million This tools access patients. systems, now the to enhancing via the of connection to partnerships reach, drastic rapid are for into we COVID. Macro additional like with forming traction some expect and patients with care disruptions significant of favor to effective appear. by add with highlighted deliver seeing more for XXX,XXX We're direct patients to the as access we reach

the was very Lab Innovation in strong receptivity and market. producing is Our timely

enablement channel and us more EHR hub clearly growth pharmacy. retail in and attention, setting partners additional will to Hub getting as closed believe clients. from those term, continue nice appointment capture the We anticipate 'XX. well short that X lab to TelaRep we allow for of telehealth, lot us additional a as up is revenue within but enrollment services, partners

for and for our in implied been has low. of priority these channel solutions, channel telehealth increase that The many adoption But are partners their adherence fantastic up been also increasing attention of moved our While benefit for it's the partners has types all. service recent towards essential had Affordability tools. list. had already these a relatively demand us, the

we're partners. discussions are the normal speed result, a with progressing accelerating in that now As

The level growth solutions. core as third solutions is new as to of our well enhancements

continue brand seeing messaging, we second half. As enter only for demand, as to financial the and support therapeutic also an we're increased scale, messaging not our solutions core but

our continue come levels, and conferences demand has digital to Given those gross We the cost engagement virtual again conferences in in. patients, major -- of home delivery. in pharma saw terms do margin what the and from kicked health reps as messages we continue. expect drivers up for surfaced QX in work are the growth to a problem to also moving We've for in seen only. unemployment as patient These we for trends

base and expect to of one see proud where to bringing gross we QX, in to I'm QX on client beyond clients put our we've has basis. enable transparent our an in million expected much taken a that of on We engagement very a compliant annual COVID year and patient effective, lot technologies that margin that engagement. XXXX. our patient more up share $X attention more digital for revenue within

in the part very keep a recurring start a a are company. team. are and to with We almost to into build and to has sustainable to situated integration. XXXX of nicely piece mind future important clients this of as complete multiple business These why our critical scale OptimizeRx the technology all advantage, solutions very we well strong It's competitive such the strong, revenue

We technology, brings very connecting together of and information have patients, platform digital a doctors health market that fragmented a manufacturers. care

all affordability the the our way of pain fits have healthy. to which all awareness, stay daily touches points a and lives just we experienced, and care have on include in medications ability that stakeholders connect their in adherence to into We health

very investment positioned for return are bring our We and and impressive to clients. measurable frequent well on

meaningful systems. platform integrating e-prescribe our the exclusivity some built of leading into and reach over measure and years have physician We by the EHRs

we of where as XX by the revenue over today, base we top and increased you with We're of in the from XX%. XX% market deeply prescribing client remaining reach of XX% interest many most As entrenched know, have ambulatory our work the happens. brands of

businesses clients our need Our multiple have siloed of in services.

communication a enterprise-level revenue is on trust clients half yield to time from we've recurring focused supporting our a The will strategy our model. and the in absolutely are gained continued shift when needed we land-and-expand our results. is growth at second favorable So digital are confident

client squarely demand We health point-of-care measurable. in sit also that's one greater communications, of technology, that is connectivity tremendous effective, the where transparent in segments for fastest-growing is there and

age, and conference addressable growth. shift so and digital a support expand be for our work a live in billions beyond from to digital discussed sales Our everyone to now have with. coming secure to the scalable with rep protect have communications. continues market we digital Today, and the best to we We strive technology clear platform the spend to we a

patient a continues people. investor around top our there great leader great be all culture making team, our be essential issues, dedicated Fostering any to share and knows, which, unrest to an a priority, saw or country. in open to working equally. absolutely So impactful. and can when widespread a are an want doctor our We as where a company great. I we People together for partners, invest racism solve our And a health investors, my in is when clients, work treated are environment we're savvy

As we work group a to environment. practices we policies have the best result, internal an to our focus formed assure on possible and all

it Now which with is favorite to that, questions, up to part. always open Operator? your we'd like my

Operator

Blair. question Daniels with [Operator Instructions] Ryan first We'll William take from our

Ryan Daniels

If math, mix, if [ph] product XX%. next quick margin, it could confident let to discussed mean a Maybe looks year-over-year me XXs be you I in going with one. high do mid being on to get correct? Gross the start they'll you the quarters. little of Or lower to bit Is you're to by a you're a some due did the over for the but like year-end? year, housekeeping XX% XX% that full bit few

William Febbo

I mic, from I I question? you but to answer want Doug, far the do pretty it. that Ryan, got You're think, think

Doug Baker

we're year-end. Well, Sure. talking about

quarter to is at get think we by can year, there the Our the or goal we there fourth full for get so. but minimum,

Ryan Daniels

the Okay. outlook... And about if think we growth

William Febbo

the you not Hey, Ryan, mic? so Sorry, get can well. closer you I'm to hearing

Ryan Daniels

I'm you the now? hear to better Can mic. me closer

William Febbo

great. Yes. Thank you. That's

Ryan Daniels

All Okay. right.

organic you revenue don't of year in explicitly cadence the to think year. I the first the in guidance, You how give to half the but want the should talked And overall we back accelerating know revenue in of half about half about back growth? the versus regards

William Febbo

-- the anticipated pharmaceutical entering remember, solution. one no -- don't year. to disruption we're and business-to-business so doing flip important manufacturers is The It's switches what a and this pharmaceutical

come normal half to was carry strategies the and first second So these for pivot to what the they up which in really numbers, for what then seeing used is on business, we're half. with

use what was can So, which normal in we always Obviously, wouldn't I business, feel use compounded But to if year-over-year, you the track connect just a and physicians like word probably with seeing accelerated. saying the patients, we're we're accelerated. has we we our we really need XX% in but us the we of think because not our then to number, of in -- going front of give encouraged slow form have closed quarter. We're and the latter it's comes a the very business and half what we're with additional know year. word

Ryan Daniels

particular? the the could advertising than in more Sure. business, with you quicker and of you to conferences do funds that, because what's manufacturers, digital in So marketing And think QX implement given you than additional boost even be on of past? greater that years and COVID go kind may see could the lack going it's of other leftover have, to a venues

William Febbo

do Steve, to want one? you that take

Stephen Silvestro

digital sales in point-of-care focusing of, as conferences into Sure, said the across pivoted in communication. as deployment of Many board. we've a Will. of sort then, seen that pivot reps spend. the seen enablement, Will already digital have towards sort well budget Ryan, yes, on think driving we've meaningful I And earlier as the script, of

I think on visibility we've for the that second largely the interval the half confidence second got to based half. is our

revenue. sales indicator of is a us, For leading

on than the previously. outsized is based So revenue see we're feel what to anything made on pipeline the sales those on that conversations that engaging confident we've certainly we in accretive we visibility we just and are in that half we'll extremely on the more pivots, seen But sales seeing we've do that that little side have second we a bit side. growth

So feeling good. very

William Febbo

that, the just be You're budgets to would digital. twofer, to could of there right? additional add might see Yes. buyouts, And And Ryan, get see which that we you be traditional them. non-digital from sort shift normal years, it to an even going bad then I in the

of well, see that. I we'll So peers as our the think board some with across

Ryan Daniels

Okay. Great. quick Maybe ones. more two

you'll regards CV. that being able start to be revenue? there, we and the XXXX the on much actually million a about you of to of in think all XXXX or momentum should of in How in on see X sales versus pipeline, how $XX deals, enterprise head that much congrats do think implement Just more the kind

William Febbo

in really -- much most see nicely. that stickier. nature. it is let's right? up will again, sets beauty it, next go And The of of is, XXXX. in that We one, year the it is annual through It also business for It's generally you

we revenue that this see year. yes, so is And will

Ryan Daniels

Epic year, This then takes the get for the XXX to that are progressing on market you And more could potential revenue little bit more about and bit a discussion on okay. off talk little acute the actively? care as opportunities what Miriam, a Cerner be relationship you far it's systems. you just how maybe into how you want into Can that and I integration, tap the

Miriam Paramore

a health some these those We're systems earlier. to stages right and cloud, access of in is side opportunity first this talked the Ryan, a partially news, added started care the systems health and into space. our little We native bad It's bit are channel us news acute of Hey, release a Will you revenue the last from rollout. this access, marketplace good Yes. integration hospital in the with sort rollout we couple and Ryan, I'll now, year not about Steve, dipping of schedule. the gives one the to I'll we'll let them speak different that -- then, begin that new on Miriam. toe of partner There's are take the we access mentioned embedded cloud. And channels. of with some

well time. both of the part get solutions, new seeing total as impact. as to real-time the flip point-of-prescribe we'll is capability we're that as everybody check point-of-discharge on But that to switch the single benefits these what and showing have no out-of-pocket same there's in capability So at

started So it's that will really, capabilities us this be to very out. I to early. have time. supposed We're finished integrating, integration it's channel. and impactful rolling really be just getting solutions with QX those a in But year. for delivering We're expect would

plan is Our it's by really but really, September, early. Steve?

Stephen Silvestro

one And Thanks, just earlier we in model, the number, penetration revenue got XX% Ryan, brands shared a then, mean we've of look sort obviously lenses: penetration also -- lot sort so in sales. volume sales for of have we on by Yes. sales the numbers; at with future that we but look the Will two We don't by at red that sales, I two brands XX think the side volume. about top by by of optimum with Miriam. or

live the at have If measuring work and Cerner look deficient, those will And areas to spaces Epic access. channel. to is of think platform, we're contemplate we we're strategically, that I when use NPI those reaching. we've of into you physicians to platform brands pipelines then map and us at on we do, think about yet give space to these and Obviously, we've we into. where that or the at it look entered will look that significant that out we're and expansion we number the we a that got, the that where going we networks have brands And what integrations by strategic by and go network as not the

that in are not the So live. opinion, this significant on currently will brands a my have impact,

messaging the on bolster it existing is the communicate volume to ability platform. will are and that brands that to of addition In with

we increase to NPIs, means those it ultimately revenue the as correlates for more messages So which business. more

So helps the hopefully, model. out in that

Operator

B. question D'Silva from our take We'll with next FBR. Riley Andrew

Andrew D'Silva

of throughout much is come you're that half stopped to additional then that you of Or year-to-date you curious, that year from that kind second tied ones largely quick new To versus year, currently? has the how specifically at of first start, initiatives coming just you've at few that seeing off-cycle in I'm won in on the me. part the in of still contracts or already back a the And you the point? year? RFPs expect of Just look this to the expecting half growth the as are

William Febbo

second we good visibility, communicative a yes, were on being on half obviously some because very got additional we've So growth visibility.

when up. hand. business which in next clients what it's we're in RFP do coming keep which anticipate for closed is in season, can do So showing and don't them mind, we additional the is foresee, We our we business we're year. them going And time that buy proactively to just and entering

what's for going but lots good on, have question repeat it on me. in year. And visibility for second your -- So this you for

Andrew D'Silva

No, it. Yes. you answered

William Febbo

it. got Okay,

Okay. Good.

Andrew D'Silva

seeing still of general, And it, primarily shutdowns you're and the swap Accidentally, took huh? access doing it a primarily least this little after status still right you're able know being to was life late that if completely Or shifted Has thinking largest some just sales bit QX, in place at I reps in point? is about person? in virtual we're where at quo science clients great everybody physicians virtual. really

William Febbo

Yes, as was And with -- X% discussion personal phone. still discussions I a in my virtual. XX% of clients, our it's effective by some rate given to matter of fact, a

any doing possible with, such. But virtual. They surgery that connect. any not phone, they're some be we the the of a So means involved reps would to kind training using dealing we the medications on moved deal and with unless or completely to still person there's in

we're in audience, have in within outside And that's rep. right that solution HR workflow. to not to understood. to has the the we big remind about certainly with not TelaRep, why have also it's specific CRMs of that to We workflow reps been out reach well are reason to the the which for workflow, pharma, company only remember, the the out this only but just a ability there. highly that's doctors. doctor feel Many the And doctors the reach right? solutions have strongly but for You for disruptive, big So questions, the we with

the billion those for audience, a we're billion the a pharma. you think with it's I $XX prolonged to remind timely, together, two disruption to think I spending put that's So and rep $XX space. year seeing just And

disruption. us. one Again, it's significant for tailwinds the really of So

Andrew D'Silva

years. obviously, in the that's you've last built good interesting. results several platform the And over Yes, very

news the Just been quite has in interesting. flow industry

Just the Livongo, of Teladoc Livongo today, you actually. had -- Teladoc acquisition and

that is but platform the view to So And the it M&A? maybe over Can have X-or-so -- put describe attempting do. that parts think different together should OPRX -- the how and you to create is you how your you think Teladoc years, of last seems the or kind has you're some if landscape? that to about their what with broader you now platform viewing fit versus where maybe into overlap do platform

William Febbo

Yes.

First off, thrilled for both companies. They're excellent really companies that have executed. -- early innovators have

good both bring of So using there's that employers cost I care think employers, on a that. trying cultural companies do the means They're to focused there. were fit They're right? down and digital to health for

a employers most bring value employers. affordable enabling So deliver adhere and or problem the help involvement, piece up of more and combining we're digital focus therapeutic some read the we have that in reports the big care doctors, right? So a of can facilitate protocol synergies. actually you platform, idea, but they out the we're to. in for that's pharma help on industry, critical any to in bring to But which with there diabetes, you're a the recent is a same it's patients are people adherence, down telehealth and to -- and on particular, different proposition communication They delivering a can

their potential we're a build a world, company, be public, obviously different companies us has great young so of the still business motivates to And size. which but a shown that two to scale. because side the have It

that And investment but so shouldn't we're that the we thesis, of be are. one public, sort

which when long time strong then, those. a I deliver motivates the a these of couple we since it will that me company, deals, a you really digital can of real so And it. company, market see been And real a kind health it's have reward

Andrew D'Silva

and Yes. me. additional Healthcare It's little on a of bit right really collaboration you just created a interesting question Could give campus the now. with could color for maybe for that's being how better Last established? different other what understanding mean a same? of just get of some you partnerships the want going than forward. it I really to you Or the Change

William Febbo

Sure.

Miriam Paramore

Yes. Andrew, me that or... want do to you take

William Febbo

Go for yes. it,

Miriam Paramore

Miriam. is this Andy, Okay.

has solutions the first Our collaboration one from very our who and the with partner Change of sense the maybe in is first they're the remarkable all of that enabled beginning.

So we solutions have core in messaging solutions. our multiple

of button, we TelaRep have of as our have enabling engagement patient and kind solutions as new they're We and solution Internet set, that well smart Things and well.

wide we've are some a up partner is that new set. -- that on been something all their have turnkeys because and adding can partners solution building to have original partners set are towards legacy through of signals and kind from solutions our -- we we gradually So the that of who

So of book that of use into a business, in it's the our beginning. book exciting now. to integration from very the providers get a We're can of all solutions right process

interface of the number Now is, prescribers and that relatively to clinical in small temp it with has part Healthcare that tens Change the portfolio of thousands. the a years team. really management well there on prior set that. from in is associated in being their said, it expectations, of But went with It's that measured as the versus working thousands

ecosystem, start. other the and of to out. for And we're look solutions I opportunities helps. to course, hope Healthcare So it's a great there place Change a branch within of that continuing lot to then are,

Andrew D'Silva

out very great And Very useful. useful. luck execution Yes, and year-to-date, the no, good closing year.

Miriam Paramore

you. Thank

William Febbo

Thanks, Andy.

Operator

We'll take our next question Street. Eric Martinuzzi from Lake with

Eric Martinuzzi

drill to wanted down enterprise the I deals. on

messaging, of deals messaging a the a think then most in they become -- aware value is third OPRX deals. financial second of they that here $X.X cases, the talking add because product. just quick people about, of about contract there capability. And My annualized $XX So of assumption probably it's in enterprise kind and a we're million, those for each roughly and math X I on million

answer than ask most with? starting what are rather in product that. the me suite? And question people let are expanding then the So What into people most

William Febbo

ROI one the the We've with reaches that Yes. assumption. XXX% all very correct -- that's the also It's financial strong network. credibility I mean our of messaging through a gained the product. network, delivering of

client lead think patients. So in remember, -- want journey go when enterprise, when But and to you care communicate strong. and go with the come health it's through help practitioners and it's the and back and the to we're and pretty how they horse, we patient who the you

And number always some shift proceed. it way a and multiple from it's has of successful an these to you in what's has team to so be away able the just layering break additional get used new by to terrific hard can blown his with those Steve when -- how the cases, way looking season, And we it's think I client clients. enterprise, go I'm back have pre-RFP -- in -- been won't, financial solutions. think get ones; this we've to resonating it's building and this of by we've It just last kind almost it at Particularly, year done because always very job some number almost solutions. tell to I does. And year to you're to been a to already the small that but

a of yes, So you solutions for forward suite to deal. say I enterprise would look every

Eric Martinuzzi

the So, it's therapeutics, after is one want the most pointing there oh, not? patient Is What is is it, in digital -- here. Or of product next the what really next oh, whatever. or, or, engagement, portfolio? I popular product adherence appeal that's number I'm two oh, kind

William Febbo

and and sort it's therapeutic then brand are is think engagement say would fast. between climbing of both tie effective I doctors, for really awareness a messages messaging, pretty I close patient

Eric Martinuzzi

a And different want comment I then, great. the angle. outlook to Okay, from

third the that quarter for third quarter million. we'll be in the the quarter? sequentially $X.X up the did expectation finish did where you You Is

William Febbo

Yes.

Eric Martinuzzi

for got few on Okay. at model doubled then in probably to QX? items Or the number or It like about $XXX,XXX. it quarters QX and $X.X million OpEx time, good to need my most the be is within least the side, that work onetime there concerned this the I've OpEx. Was with? on OpEx I a looks on the is the last right I any And

William Febbo

Yes, solid. you're Yes.

Sorry, add ahead to Doug, go that. and

Doug Baker

Well, that for should of be I was the going the a just to year. rest good number say

Operator

next Baldry from our ROTH Capital. We'll take Richard with question

Richard Baldry

broad-based to BXB do to lack you you is about It make you move Can kind any that manner? reach to -- go Or one-to-one there conferences? or of of you efforts the ways a now? what can marketing kind toward your have to talk sales just show of them it changes are seems still new to prospects in given targeted very approach,

William Febbo

that Steve, handle do one? to you want

Stephen Silvestro

hear Yes, I'm okay? Can to me speak to clearly, you happy it.

Richard Baldry

better. it's Yes,

Stephen Silvestro

Yes, no worries.

decreasing, an Rich, why cross-sell good that really within do and upsell. digitally to marketing little people first contracts second able business us through reach results, various without half. very seen qualified I both half such what new the impact fact. We've from account-based reach marketing about allows reason the why to we really to existing out of think, set contracts we've on conferences part of So and given construct to the to conferences. the is Basically, proactively these generation we've out confident in we're very the endeavored the the themes lead we're to up and ability It's in top have funnel where

know our been who it's So account-based is for we've truly focus that shared have match out. the good those those where solution, we've we a marketing, into driving positive which net largely us for mapped and a are, accounts we but the

So...

Richard Baldry

In those? be fall this they half of of of feel still had the year guide through Or of timing the again? pharma to strong first in see to next how wins. spending they on be first year? the you first sort in Could visibility Okay. more curious new of do us wait you they I'm different timing enterprise the Is cadence in adding series sort until first next sort half? really ever fall it's flu? and this were those a see you to Would about -- of your it for ability new the decision half, think your of year cycle

Stephen Silvestro

Yes.

So...

William Febbo

not go to start starts I your it with now if then are. you engagement, just start, by why so swing -- think be really -- clients be happy I'll will really as and encouraged okay, And what I in September. The do, we're if very land very to off commitments we talk don't -- do the Steve, we pipeline if and with which in me you go we're as RFP -- for a forget. which everything I is of we'll going think we let full year-end. basically entrenched really pipeline mean can of kick what But activity, you're it's we'll at patient got can which see do, enterprise, you all next healthy prior It year. when And proactively that you're I So, on and in to today, beginning going doing, we where I to solutions, core mix tactical, more. together you've organized, season, look

into least visibility we'll previous that? to anything at else XXXX, add than did have to we better year. better So Steve, the

Stephen Silvestro

good I having great No, you have covered QX I active. We're very looks Rich, pre-RFP, pipeline even conversations. we it. strong. think visibility fairly mean

visibility have we've Will yet what in obviously, good recognized As term. said, will and we what already what is visibility to into sell sold -- we near additional be the very into

very more to So strong. on market, come feeling

Richard Baldry

that Is halfway support we'll QX. hold fast early XXXX, you after level how OpEx of expect sort think would maybe growth? to the the planning to able the cadence of up at see of sort talked being And of When for level growth level-up beginning the you've a year saw but about of only because Or of the for be in that the into to in next XXXX that OpEx you this next we're we adding this we do be year? about had? sort it ready to

William Febbo

Yes.

make you we and good much ever seeing, which through say now, we've will will go the I Right greater next it a investments growth will our over you as which I been few growth, won't would make think need through we accelerated certainly growth. be are to support thing. as -- sure than be you years, when is selective to You everything strong we a make be order. flowing. that are don't probably were the is we've we drop any like invest, we got sure tech commercial happy would need team Today, feel additional certainly and in executive team your reach. team, cap If clients and to or feel very and got we've right? is balls, investing management in

I not bottom. So, we more see to I an year from it if But guess, should or operationally, start drop could see significant looked next. we don't later anticipate to acquisition the at always come we this -- a significant early one material change. should

Operator

next from comes Alex Silverman question Our with Investment. Instructions] [Operator AWM

Alex Silverman

my asked of been answered. questions have most So and

QX, a in a Just revenue want looks season, QX to thing. typical like from standpoint, confirm no? one

William Febbo

Yes, that's correct.

Alex Silverman

All Okay. right.

XQ starting exercise. So good if a use off as that, point, a it's we we're -- and build

William Febbo

That's correct.

Alex Silverman

guess there's go-forward $X.X such. savings missing I side, expected on guys travel something I and the around guys there be there? that down a you guess we're OpEx million in the I And we But what first here. on basis, million quarter, $X.X are obviously, no spent Is to on to more spending you -- investments.

William Febbo

No.

to think content you our come needs a clients about right? it's if right, when And with not that task. distributed is to platform, that on platform, So that our us business, a be complicated

need keep to hire of you that over So don't up to with type demand.

commercial a have the also capability $XXX the business. revenue We doing run that million has of team rate

client always our obviously, and the So need you sure we're be we who make going don't to to it's business. the invest, you're -- So accounts integral and our basically and to delighting to executives, if right? -- partners, going are servicing manage

if to that absolutely cash, to we'll get to to do too. to that a new we'll the could we bring we raise will If need additional connected we in do to, are enhance there going we our we if money partner it, it. And commercial find do that. a or do clearly use pharma needed relationship, would if people to invest was So, that need

of It's just a smart business, to not got show that go. of surgical and we're lot being there Alex. is really we've to very and a sitting scale to matter capacity So back, this

Alex Silverman

Got it.

one was question. earn-out last the Okay. And for What then CareSpeak?

William Febbo

want Doug, to do you take that?

Doug Baker

Sure.

gain they revenue for of consideration additional agreements certain contingent both original CareSpeak purchase part hit if as targets. the So they and RMDY,

CareSpeak so we target had And earnout. that of out paid they exceeded, a XXXX additional... It was portion for so that the revenue the

Alex Silverman

Like much how roughly?

Doug Baker

million. $X.X Roughly

Alex Silverman

$X.X million? Okay.

Doug Baker

Yes.

Operator

next Poppel comes Our with question Harvey [indiscernible]. from

Unidentified Analyst

on XX Congratulations. great, a Will, cylinders. So great all quarter, hitting

William Febbo

Harvey. Thanks,

Unidentified Analyst

really on which of I want previous issue have only of the to the one hit of some home kind of questions. by an in implication profitability, kind in question. I was

growth seem for gross up materially, your at to be the GAAP XXXX? the to direction, pace it past If reasonable revenue that least not Is is in your your the margin G&A at some at expectation, the setting you're mid-XXs profitability for to heading in line. that soon, a going in grow pretty going time is in or that would going that the and you're pace crossing least as

William Febbo

time at that we're so the yes. can it, a demonstrate we reasonable focus. that really It's Absolutely. where expectation. It's feel We like do and

we the engagement not Yes. no, to can patient not get we scales in probably. -- mid-XXs. lower If year. XXs, run XXs It's correction, We'll that's on but gross mean margin, I a more yes, up more, going to Just this regardless. that happen see.

others, the So you're so aspirationally, million type $XX yes, absolutely, dropping want bottom, see we Harvey. run start be And many of if to When that, should you gone that XX% business, of to rate, doing it they $XX see of if cross to have when you more. public, million dropping. you them at this look kind not

So we're aiming that towards. is what

Unidentified Analyst

Great.

If that to any Livongo, making And to around look revenue you one multiple to at kind they impute weren't really the even really apply of question the another on to so you begin money, would one deal. Livongo-Teladoc Just were -- multiple. OPRX. have

like Any fraction Your like placed Livongo. on stock placed what comment the this? almost that certainly of on it's deal that a looks -- value was

William Febbo

I know Well, then because earlier it's hard watching on our Yes. -- such been yes, when they the really the good mean because curve. multiples and public to mainly they're all been transact are space, is. comps it I've and we've that, what in below you

think retail, to yet this of mutual international less when around We tailwind transaction, support it investors, you whole have attracts another public retail because kind of strategic entity. is the little as institutional, deliver those I our multiples a ecosphere market a But a funds.

also it, happy I those really a good will them, think and for digital teams. health to a just know be that company. see We So was I fit effective really cultural encouraged and

encouraged. I very was Very So encouraged.

Operator

our next Josh Goldberg from take We'll with question GX.

Josh Goldberg

not terms little you've of a So a like, opportunity inflection saying in pipeline obviously, heroic. XXX%? pipeline talk just you about bit, periods. Or and can some an And you're on. many your And -- there's I is and know years in years, for you're up accelerate business. obviously, going some few to what's going coverage or point been it's talked like for

year. that didn't level. engagements get client strong all pick of next are, changes up happened because very to in and what of the because far so your last you these with your you're terms positioned I how follow-up. You call of business And new a in easy be and terms on a of to business in how But quarter sense just have able of a the squarely like was what COVID just compare have seeing really I

William Febbo

a It's $XX a well mentioned, not shift, terms to digital $XX of verified documented. so up. M&A it's open say in of seeing the But and towards no, we're doing And talk say right? Yes, shift premature. looking is it it's making not safe we we're Okay. pipeline. million in just pipeline very out raises. activity shift billion that at It's yet understood terms spend now. $XXX we're digital to because Thanks. we absolutely billion safe the on what in the based market mark look, to spend, Everything very will pass and You're

doing absolutely we can seeing they're in through keep dialogue. really with We proactive well. it right dialogues clients. place. up are And my being a as good our the the because to hats We're with those So job the off team

you and gives we're QX move, see talk more. so are but and I what voice go can fluffy in our will doing it And different of into and benefit, on even because we But that absolutely stuff, doors. you knock little can't webinars did, little credibility skeptical Those and bit And that's we for specifically. it color. I'm asked it get we number they And someone drove report that hope was a more market. share brilliant more the we a a to when we marketing we'll always with seeing

Josh Goldberg

business? -- last like the you where of doing the Yes. engagement, little And speak some of now? are they are them financial. of terms Which pipeline about seeing sort your One in is patient talk for maybe in right have bit are in about biggest one There real have, are you -- some a if really me really that best the is obviously, products. you that traction segment clients different can

Stephen Silvestro

want take me that to one? You

William Febbo

go ahead. Sure, Sure.

Stephen Silvestro

all the buying we Josh, in as on mean indicated a up the will therapeutic along. in we're pipelines the have, I almost and of very we multiple of probably to earlier, of specifically got people demonstrated years messaging. near interaction them of seeing, perceive frothy support articulated -- that clients year. last The the solutions, call of X CAGR seeing process. multiple future. But And the share won't manage as Yes. a happening, Will Josh, there's biggest starting are over as top ability have really have as Many that starting I think picking clients we we're several really into some what's all them we really, to We've the have, the clients financial really I that brand that is this hub messaging solutions funnel-like sort on are messaging. second enrollment. half are today, coming but see we

or or that beginning have the them therapy and don't journey all that that do then we so at physician prohibition the of along the journey, with and patient the of how we patient them tools points process. we physician, So, with don't throughout engage carry that fact them, support the and through prescription leakage lose abandonment

reach -- multiple continuum. that are really driving across and capitalizing have ability solutions deliver care highest on amount to And are ones revenue value of in the they're So that the it then their buying. that they

Operator

session. now over ahead, call turn go time, this like the Febbo. this back sir. to At Please question-and-answer to our concludes I'd Mr.

William Febbo

and our can generate sustainable most the lot to this it's the growth of tailwinds. you take one to away our view of take market because things, and strong from thing If you're I -- year although advantage for our value positive our strategic very our discussion, probably of shareholders hope a just several going understanding ability of

early to dedicated see valuable, we're an current physicians this second do optimistic given very makes numbers, It's patients especially and today I environment. give we can XXXX. Beyond hope very have We from created everything as heard and company people's culture. lives, what a the we've unique beyond. of guidance and in strong you which a half not see, in a stage that you to But difference truly something for

that, call. up let's everyone, the time. with Thanks, Now wrap for your

Operator

the call. made. forward-looking during Securities Act forward-looking today's or They investments, by possible to like profitability, technology, also otherwise. publicly of be The statements operating digital may include and speak They growth conclude company of regarding call, These Securities opportunities, events harbor only at of provide anticipate, today's revise size, any the during margin, seeking statements management's update the expressions call market health amended. should definition company's penetration, this the call adoption of include may whether XXA date because for Statements today's capital. year as The gross the made the growth, we Such future management within and upcoming Section decisions. total cautions amended important undertakes in platform. no make flow, forward-looking for statements. that statements statements the contain XXE not additional to Act or of need would estimate, new the XXXX, raising company's to forward-looking words expectations Before obligation rest statement in the information, statements of acquisitions, includes I that are in statements expenses, estimation market regarding safe announcements revenue statements cash the XXXX, of addressable used forward-looking expect, Section identify forward-looking as to similar and investment made and

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

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

OptimizeRx (OPRX) 9 Aug 202020 Q2 Earnings call transcript