Q1 2021 OPTIMIZERx Corp Earnings Call
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You are currently on hold for us optimize our ex Corp, first quarter 2021 conference call. At this time, we're still gathering additional participants from claims to be underway. Shortly we appreciate your patience and please remain on the line.
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Good afternoon. Thank you for joining us today to discuss optimize our ex Corporation's first quarter ended March 31 2021.
Speaking on the call today is optimize our excess chief Executive Officer, William Federal and the company's Chief Financial Officer, Doug Baker, Miriam Paramore, the Companys Chief strategy Officer, and Chief Commercial Officer, Stephen Sylvester will present for the Q&A. Following their remarks, they will open the call for questions before we conclude today's call I'll provide some important.
Cautions regarding the forward looking statements made by management during today's call I'd like to remind everyone that today's call is being recorded and will be made available for.
For replay via webcast only and instructions in today's press release in the investors section of the company's website now I'll turn the call over to optimize our ex CEO will double Sir. Please go ahead.
Thank you Ron good afternoon, everyone and thanks for joining us on the call today.
I am excited to report that we've had a very strong start to the new fiscal year.
A stronger start than any other year over year in my tenure.
At a high level, we grew the quarters top line revenue by 48 per cent compared to a year ago period. We did this while ramping our digital health platform with additional reach to Hcp's patients new solutions for our clients and enhance team to support further enterprise growth as we see it in front of us.
In many ways the quarter's financial performance has been underpinned by the company's core DNA.
From our management team to each of our employees team members. We have built an incredibly vibrant technology business built on the enhancement of stakeholder engagement and aligned to the patient journey.
Moreover, we're expanding our core capabilities, which is a testament to the scalability of the technology its relevance to our clients and partners and the ingenuity of our team we have gone to great lengths to ensure that the business is able to support the growth of our future revenue streams.
We are already seeing those revenue streams for begin to bear fruit early on in 2021.
And serving as digital bridge across stakeholder classes, our platform not only sits centrally to all involved but it goes further to positively impact the lives of people daily.
When we talk about our platform and the patient journey, we're referring to the patient the physician engagement directly with the patient which is commonly referred to as at the point of care.
Our integrated platform serves as a physician's resource for on demand therapeutic knowledge, while simultaneously improving affordability and adherence for patients seeking treatment.
Outside their direct care setting.
For the platform helps life science implement.
Scalable and personalized support programs that effectively eight patients in managing their treatment in accordance with their overall health goals.
The outcomes produced for knees remote care engagements have exceeded our expectations and we anticipate we'll continue to scale over time.
Where could we are continually continuously optimizing our platform removing the complexities hurdles around connectivity between doctors patients and manufacturers.
Our platform is so seamlessly integrated into the H C. P. Workflows physicians find that our services are complementary and a welcome supplement to their critical decision, making process and their patients care journey.
<unk> manufacturers are relieved that they do not have to navigate individual access to the hundreds of EHR systems that physicians are operating in.
As a result of these efforts demand for our services remains strong.
And we continue to focus on capturing recurring enterprise revenues.
We announced 46 deals in the pipeline on our Q4 earnings call and as of today. We've closed 33 of those deals which include client renewals totaling $25 million in annual contract value and we expect to close an additional $15 million of the $50 million, we discussed in our last call tremendous work by.
The team our land and expand strategy is working as we are penetrating more clients and they are engaging more of our solutions a key indicator of our scalability and ever growing total addressable market.
As we have repositioned, our sales and marketing efforts to drive higher dollar contracts within our client base. The average value of recently won contracts was close to 1 million about three X for previous years, we continue to experience a strong renewal rate exceeding the 86% you've talked about which is garnered.
Continued solid third party return on investment for ROI from fiscal year 2002 programs. As you can see from our results that were posted earlier, our financial and operational performance is highly insulated from macro shocks as the acceleration and adoption of digital health remains a long term.
And.
Doug will go into this a bit more detail later.
But I wanted to point out that we have strengthened our balance sheet with a public offering in February.
The raise has provided us with a strengthened foundation to execute on our strategic goals without delay.
Including build out building out innovative solutions as well as entertaining any opportunistic M&A activity, we may come across.
Moreover, we closed the transaction without having the structure dilutive instruments into the deal.
And watching the adoption rate of digital health explode, even through the pandemic, we believe that shoring up our balance sheet was a wise move our improved operating leverage will allow us to navigate our growing total addressable market. In addition to any potential needs related to periods of rapid customer acquisition as COVID-19.
The nation's bring about additional demand for doctors' visits that may have been delayed in 2020 as well as pent up demand for new medications, whose launches were impeded we wanted to ensure that we are correctly positioned to capture any additional opportunistic recurring revenue.
And thinking about the digital transformation fueling our industry, we really have put a lot of time and effort into the scalability of our platform.
We've worked diligently with our partners to develop new digital services to improve the way doctors engaged with their patients.
As we operate on a unified technology backbone, new services can easily be added to existing client subscriptions.
In terms of expectations for the solid growth that we've experienced so early in the year has historically been indicative of further growth moving into the latter periods and we are expecting 2020 I want to follow suit in this regard.
This growth is driven by the evolution of our digital health platform. We are not simply distributing savings appointed prescribed one of optimize Rx is big Differentiators is its full suite of capabilities that goes beyond financing communications, allowing for multiple touch points between stakeholder classes through the physician's workflow.
Both inside and outside the care setting.
All of our solutions are deeply connected into major EHR platforms. So doctors can deliver better well informed patient care.
As you saw from our recent announcements, we've now expanded our omni channel platform reach.
Reach to over 50% of oncologists in the U S.
Through our latest health information technology partnerships with oncology projected to be the fastest growing segment in the life Sciences market was over 12% in 2021. This expansion unlocks new ways for life Sciences to engage specialists such as oncologist in a more timely and impactful way along the care journey.
The effort to unlock these omni channel avenues of engagement under our health information technology partnerships has been well received by life Sciences organizations.
And doctors alike.
Example of these efforts is the buildout of personalized and specialized resources such as in the oncology space treatment decisions in oncology often involve multiple stakeholders in a series of evaluations and decision points.
Having our technology integrated at multiple points of workflow enables us to engage with the entire team working to support the needs of the patient to ensure the best possible outcome is achieved.
In terms of value add new revenue drivers, we've seen great response to and growing demand for real world evidence solution since the announcement in Q4 of 2020.
The industry has seen how transformative this enhancement is to the accurate delivery of therapeutic support brand messages to clinicians at critical points in the patient's care journey.
What is great about the evolution of our technology stack is just how much effort, we put into making the doctor's workflow easier from reducing the number of clicks in which a physician needs to go to access treatment information to providing one click access to drug manufacturers via tele rep without ever having to leave their primary workflow system.
On the technology front, we've added two centers of excellence in 2021, focusing on two areas critical to our ability to scale, both organically and with potential M&A going forward.
One is a dedicated and centralized quality and insurance unit for the enterprise and the second one is for the consolidation of our data analytics and business intelligence unit into a dedicated insights and analytics to go there.
The team is also very proud to be recognized for their work and innovation. We are thrilled to be named in the financial times American fast growing company ranking for the second year in a row, it's always terrific to see our team's efforts and continue to drive to innovate being recognized.
And I wanted to call attention to this nomination in recognition of all the hard work. The team has put into building a vibrant technology business now.
Now I'd like to turn the call over to our CFO, Doug Baker, who will walk us through the financial details for 2020 ones first quarter Duck.
Thanks will and good afternoon, everyone.
Earlier today, we issued a press release with the results of our first quarter ended March 31, 2021 copy is available for viewing and may be downloaded from the Investor Relations section of our website. We also filed our 10-Q today.
Now, let's turn to our financial results for the first quarter ended March 31, 2021, our revenue for the quarter was $11 2 million an increase of 48% over the $7 6 million from the same period of 2020.
This increased revenue resulted from across the board increases in almost all of our solutions.
Our gross margin declined from 57 per cent and the quarter ended March 31, $2022 55 per cent in the quarter ended March 31, 2021, and as a result of solution mix, our gross margin for the entire calendar year of 2020 was 56% and our target for the full year of 20000 to $2021 58 per cent.
We expect our gross margin to improve on a quarter over quarter basis for the balance for the year as we launch new solutions that have higher margins.
Our operating expenses increased from $6 6 billion for the three months ended March 31, 2020 to $6 8 million for the same period in 2021, an increase of only five 2.5%.
Overall this modest increase is a result of our efforts to expand our product line and build out our organization just establish a strong base for current and future growth.
Our expense has increased at substantially lower rate than our revenues as a result of the operating leverage in our model.
Two and a half per cent for expenses versus 48 per cent for revenue. We expect this trend to continue however, we're not going to hesitate to make investments in future revenue growth when we see the opportunity to do so we would expect operating expenses to increase at higher rates in future quarters based on the potential we see but still at a much lower rate than the revenue increases.
We had a net loss of 600000 or four cents per basic and fully diluted share for the three months ended March 31, 2021, as compared to a net loss of $2 2 million or 15 cents on a basic and fully diluted basis. During the same period in 2020.
Overall, while we have begun to ramp up team expansion and expenses reflect this the decrease loss resulted from an increased margin generated by our higher revenue, partially offset by the increased operating expenses.
On a non-GAAP basis net income for the first quarter of 2021 was 596000 or four cents per basic and <unk> <unk> per fully diluted share as.
As compared to a non-GAAP net loss of 830000 or six cents per basic and fully diluted share in the same year ago period.
Now turning to the balance sheet cash and cash equivalents totaled 83 million at March 31, compared to $10 5 million at December 31st.
This was a result of the equity offering in February where we raised $71 million.
We plan to use these funds to ask for further expand our business and accelerate revenue growth.
Our revenue excuse me, our receivables remained very high quality because of our customer base and recurring revenues our customers continue to pay regularly and predictably and are seeing our day sales outstanding continues to be constant we remain debt free and do not anticipate needing to raise additional capital anytime soon either for operating purposes or to fund our growth. We also.
We have no remaining liabilities connected to our previous acquisitions.
This wraps up the discussion of our financial results I would like to turn the call back over to Wil will.
Thanks, Doug Great report.
Before I go into closing remarks, and then Q&A I want to stress the company's commitment to diversity equity and inclusion.
Perfect World these value should be understood that we're living in a remarkable time, social unrest or the change as part of the management team as part of the management team of a publicly listed company and as a good corporate citizen. This as an opportunity just to remind everyone that we must each do our part for the benefit of social good we established.
Team of O P. Rx volunteers to form an internal diversity equity and inclusion committee to keep us all focused on our commitment to providing a welcoming Copa culture for all of our employees partners clients and investors.
I also made some changes in addition to our leadership team Marion for Merit has been it has been our president for many years and we've added chief strategic officer to her title.
As our chief strategist Marion will be keeping a keen eye on our industry's pulse. So that we may have the best optimal mix of technology and solution enhancements to protect our core and support future growth.
Given the importance of our technology first approach taught Inman, our chief Technology Officer.
It's been elevated to the leadership team and now reports directly to me.
Additionally, Marianne noted for joined our leadership team in February as the Companys General Counsel Chief compliance Officer.
This senior team brings together decades of experience in scaling tech enabled businesses in the health sector and I'm proud to be working with all of them.
This team can build a multi hundred million dollar business as proven by their past experiences our position in the market and our proven ability to win more market share.
In closing we are currently servicing over 80% of the top pharma manufacturers for convinced of our valued statistically our programs Rois and customer rule newer rates are just remarkable.
We are winning in the market and our customers are recognizing that they neither have the ability or desire to build bespoke technology compliance operational support systems for their brands programs.
We are positioned well in the center of all our stakeholders to deliver the benefits needed to sustain continued growth with.
With our start in 2021 as it is we are looking forward to another tremendous year of growth profitability and sustained impact in the market.
We are becoming the nation's leading public point of care communications platform for life Science companies. We are delivering these value added services to our growing network of tens of millions of patients and most physicians in the United States, all while improving patient care treatment outcomes, along the way and helping our clients achieve their desired results.
Now with that we'd like to open up the call for questions operator.
Thank you, ladies and gentlemen, if you'd like to ask a question. Please send them pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off price signal through share equipment again press star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal for questions.
And we will take the first question from the line of Ryan Daniels with William Blair. Please go ahead.
Yeah, Congrats on the strong start to the year and thanks for taking the questions well in your prepared comments you talked a little bit about the enterprise pipeline I believe you said you've landed $25 million.
Consistent with what you put in a press release, but then also commented there's another $15 million likely to close so.
Wanted to hear a little bit more about the $15 million. That's still remaining in regards to how visible that is how likely that is to be signed and then.
Give us a little bit of a feel for when that might happen in regards to flowing through to the income statement. If that's a 2021 or will split between 2021 and 2022.
Thanks, Thanks, Ryan I appreciate the questions and the attention.
So I wouldn't say it if I didn't have good visibility of it so very confident that that will be.
Those would be deals we sign.
And.
We always have to be sensitive with announcing individual deals for client confidentiality. So we figured this was a better way to inform.
The market as to the our confidence I'll just remind everyone that we had said we had a 50 million dollar number.
Number in pipe and our pipeline.
Of enterprise deals this would put us at 40, when it's all closed and that is annual contract value. So there will be some there's always something that bleeds into the next year with a launch that starts later in the year or an opportunity that starts inside Q2, or Q3, but the lion's share of that will fall within a year.
Yeah.
Thanks Ryan.
Well now take the next question from Andrew the Silver with B Riley Securities. Please go ahead.
Hey, good afternoon. Thanks for taking my question Congrats on the continued progress.
Just to start I was really hoping you.
You could provide us with some insight into how the business is evolving post Q1. So a lot more of the population is now vaccinated and I was just curious if that's forced you to throw any audibles or have.
Have your customers potentially starting to pivot a little bit more to in person marketing basically I'm just curious if youre seeing any significant shifts in pharma marketing mindset as we moved towards you know the majority of the country being back weighted.
Yeah, Hey, Andy good to hear your voice Great question. So you have to remember that the life science companies will be the last ones to be going back to work and engaging in any kind of live interaction just because they are life science companies and can enable any kind of net spread of.
The virus so.
Our clients are all still virtual many have made that decision through the end of the year I think we'll start to see a little bit more opening up later in the year, but it's still too early to tell to be honest I think when we came into this year. It was clear that people were planning for a disrupted year our clients.
In terms of using virtual.
Technology to enable whatever they needed to in the market. So Steve I don't know if you want to add to that but that's been the position that we really don't see them opening the doors for live events yet.
Yeah, I think that's consistent thanks, well I think thats consistent Andy with what we're hearing.
Out in the field and then additionally, there is.
There's a cost synergy that they've experienced from having people off the street.
And traveling going to different places and being able to market digitally net I don't think they are they are willing to give back any time soon or at least to see dsos in pharma that I know so I do think that it has.
It's sort of fundamentally shifted the ecosystem of engagement going forward and I think we will we'll continue to see that evolve it's going to be interesting to see the models as we come into the summer.
Okay useful context or useful.
So you highlighted this in your prepared remarks, you've obviously made a lot of progress in oncology in recent quarters I was just curious.
If theres any other specialties that you expect could be as fruitful.
And maybe ones that you're yet to aggressively pursue.
You know, we really that is it that was a key priority really starting last year.
As well as cardiology.
And we've made a lot of progress at both we highlight oncology because these are always opportunities also to have our at the market here, what we're doing again.
Those two alone are the lion's share of the marketing dollars.
So we're very focused there and then there's a handful of others again, it's really focused on the enablement of reaching doctors hcp's debt prescribed specialty medications. So.
That's really.
That's the focus and we did we made great progress in Q4 and Q1 of last year.
I think we've like we've seen a life science companies leaning heavy towards digital enablement. We've also seen.
Doctors and patients just using digital tools to manage their businesses or their health.
And so when you put all those together you have a very.
Good dialogue between partners among enabling connectivity.
Miriam Steve feel free to add if you think I missed anything.
Mary Anne go ahead.
Yeah, I think that was that was goodwill. We're just there's just an uptick across the board Andy and you know that and so digital health and digital anything is really exploding.
The telehealth the use of telehealth.
Typically for a narrow niche of interaction for something that's called a visit or a virtual visit is just one of those things and you know people speculate about those encounters going down as we returned more than our brick and mortar, but let me say that that's really going to stay consistent and probably go out so our focus on therapeutic areas just kind of pile.
With the macro trend line and then they used for various tools and vendors.
It's it's really are we still a rising tide and I think will be.
Okay, great perfect segue to my last question, it's really about your channel partners.
Really just curious if youre seeing more and more HRS continuing to transition to server based platforms and then maybe talk around your channel partner expansion initiatives.
It would be with the additional ehr's or potentially other partnerships.
Within the digital healthy cause here.
I think you meant transition to cloud based platforms.
Yes from whichever, which yeah, yeah, yeah, no well, let's hope it doesn't go the other way right.
So yes, there there is a continued push look everyone wants to be better everyone knows the strain that doctors are feeling with the tech.
And the needed tech as part of their practice so.
Cross the board everyone is really working hard to make that better and we continue to see that trend. Although it does take time right. These are not things you can move quickly.
Learning from the last five years here.
But I think what what's really exciting we we used a different word in this script called omni channel right. Before we were really EHR only that was our focus and obviously still is a focus but.
For a lot of reasons.
There are there are technology their software there are devices that doctors are using.
That are connected into workflow, but not dependent on the EHR and we're really looking at partnerships. There we don't lift for them because we keep it pretty tight.
For the partners reasons for competitive reasons.
But we're making a lot of progress there. So I think that's where it's Marion referenced just this adoption of the trend to go digital is really going to help us and we've got some great partners. We are I would argue the most innovative person in the space right innovative company, because we just don't sit still.
And we keep a very HCP patient centric view. So we've got a great mix of people, who understand that and then we look for partners, who this would be ancillary revenue and debt are cloud based tech enabled so theres a lot of them out there and the trick is finding the ones that have true accessing we made a lot of progress there.
In Q1, and expect to continue to do that through the year.
Perfect. Thank you I'll hop back in the queue and best of luck going forward this year.
Thanks, Andy Thanks, Andy.
Thanks, Andy.
We will now take the next question from the line of Sean Dodge with RBC capital markets. Please go ahead.
Thanks, Good afternoon, and I'll I'll Echo Oh, you congratulations for great starts for the year.
Well the details you can provide around the the enterprise wins very encouraging conversion there of course being very high can you give us a sense or maybe you can talk about how things progressed on the non enterprise portion of the pipeline what were win rate like Ah Ah I guess away from enterprise.
Sure I'll, let Steve respond to that he lives and breathes It every day.
Yeah, Hey, Sean Great. Thanks for the question <unk>, great to have you on board.
We experienced sort of a traditional anywhere between 35% to 50% that's consistent with what we're seeing on the general pipeline, obviously, a much better conversion rate on the enterprise, which speaks to our sort of focus there but.
But we are we are experiencing as good or better conversion on the whole pipeline, so very encouraging and coming into Q2.
Okay, Great and then.
In the prepared remarks, you talked about how.
Your alignment with clients is evolving it sounds like it's tightening not only are you seeing greater enterprise adoption, but you're you're being invited to consult or help with the broader commercialization strategies, you're working to develop.
New ways of increasing physician and patient and touch points.
I guess, how should we think about.
The ability for the sales team to sort of upsell with modules and stuff, but that those are the two does the two big ones that we're seeing Steve.
Yeah. Thanks for Sean if you look at that if you look at the investments for these manufacturers make in terms of things that they procure from vendors and the top probably five per cent of things day bye from a cost perspective as the money they spend on real world evidence data and one of the key frustration that they've got is the lack.
Of action ability of that data they spend the money on it they run outcome studies they use it to a line sales team they use it for compensation, but they've never been able to use it to effectively in D. G C T or help patients they've always wanted to and so what we've done with our solution is to plug into.
Non connected parts of the ecosystem.
We've plugged them in in such a way that it's created interoperability and as well said now it's it's enabling them to become more effective in their communication with physicians and so that drives a pre email also brings us much closer as you heard will say to the brand team and to the people that are working on the analytics, which is exactly where we want to be.
Okay, that's great. Thanks, again and congratulations.
Thanks, Sean talks it thank you.
Once again, ladies and gentlemen, if you'd like to ask a question. Please press the star fall by the one and if you're using a speaker phone. Please make sure you him you'd function as turned off by a signal to reach our equipment.
We'll take our next question from the line of Eric Martin as he with Lake Street. Please go ahead.
And my question is just do it for you expanded recurring revenue stream I don't know that you kind of call that out historically, maybe it's just as a result of some of the wins that you've seen but it's to my mind, it's been kind of Ah.
Lesser part of the overall revenue stream.
What can you characterize it can you quantify that here's here's what recurring revenue was it 2020 at yours, what we expect it to be in 2021 based on business I'm, thus far.
Sure Okay, great to hear your voice.
Do you think about what we talked about last year round enterprise, which is what we would classify this recurring and just a renewal rate basis I'm glad to say all our programs from last year have renewed or will shortly.
So we're seeing what we talked about last year as an enterprise number of 20 million.
We're looking at $40 million already this year than that doesn't include anything that's not enterprise. So we're really happy with that gross we consider that recurring because as you heard it's stickier, it's more involved at a higher level with a client it's got a premium.
Pricing model, which basically just means it's for important to the client and they value that so.
You can look at last year right, we set about $20 million enterprise against our annual and we're already at 40 against we don't guide, but you could do you could judge that it gets consensus so feeling really good about the increase as a percentage of our total revenue.
And I'm, just looking to get more and more to to get to that enterprise, which just to remind everyone is.
One or more solutions sold together versus just tactically presented to decline.
Okay I appreciate the.
Definition.
Explanation.
I know you're not in the guidance business, what you did talk about sequential gross.
Lisa.
The gross margin side of the business, we're looking at a consensus number at 12.2 here for cute too.
That would be up from the 11.2 are you guys comfortable with that number.
For very comfortable with that number it's it's not our number street snapper, but we.
We as as we said we.
We feel like this year is going to be a very good year for the company for everyone involved and at just the relevancy at the client level.
It's it's really it's it's one of those opportunities you don't get a lot and I think the whole team feels that way. It's just every call. We're on it seems like we're more relevant to the discussion we can really help with our solutions and when you get there just opportunities start to to come at you that you didn't expect so we.
We feel like we've got the team in place we've got the tech with scale reach and of course, we're still working on improving all those things at the same time, but yeah, feeling really good about the year so far.
Okay, Alright, and then I wanted to ask on the gross margin dog I appreciate the color of their as far as 55% this year versus 57, a year ago, but I think you said, making progress throughout the year.
Due to a shift in the solution mix with the addition of new solutions can you give me a layer deeper on that new solutions.
Sure and it's really some of the stuff Wills already mentioned like.
The real world evidence and some of our specialty specialty thanks for getting into.
Yeah, there's a there's a component eric of that that.
Is is more architect ink versus distributing content. So we.
We expect that mix to be.
Very positive to the gross margin contribution. We also expect patient engagement continue to scale, which is you know has has.
Is a very low.
Cost of sales high gross margin.
Uh-huh.
Okay, and then lastly, the operating expense side of the house.
But first of all congratulations on that cash for mom's number that million seven.
Can't recall seeing a number that big and my history with you guys.
That's got to be well.
Welcome News certainly in the CFO August.
The.
He kept to type lid on expense, you've often talked about hey, we have the sales organization to take this company to $100 million, but you also have you know you're serving giants here and sometimes giants.
They want the same as everybody else in the way that they want it which wiped up with customization.
Some gray.
Greater investment in product development and things of that nature, or maybe requires more account management and the hand holding.
Given the six 8 million that we just had here for Opex, It where does that go in throughout.
Throughout the remainder of the year.
Yeah, I think you'll see your as Doug said, we'll see increases through the year well below our growth rate. So that's.
As an investor someone who manages a P&L, that's where you want to be.
The areas, we will invest our areas that make sure we delight the client and the tech is solid.
But I think what we've done with our centers of excellent on the tech side, the commercial marketing product team.
We're in really good shape to scale and now we have a view in the out years of hundreds of millions not just 100 right. So we're we're looking at this to really win and.
And this year, it's making us feel more confident.
Okay, well listen I appreciate you, taking my questions and congrats on the quarter and good luck in 21.
Thanks Air talk soon.
[noise] will take the next question from the line of Harvey Papa with pop Tech LP. Please go ahead.
Thank you very much will I never tire of congratulate you quarter over quarter continue to impress and surprise on the on the high side.
I'm wanting to just talk a little bit about a strategy for a moment.
You, obviously have done a lot to lay around additional services on the pipes. The pipes that you have between the providers.
Providers physicians in particular and the farmer companies.
But I'd like to get a sense of to what extent you feel.
Comfortable with the degree to which you also your networks. If you will touch on patients and pharmacies and to the extent that that might change or grow over the next couple of three years.
Yeah, Hi, what day and you've been a great partner all along the way through thick and thin so strategy. Yeah. We we obviously you know it's it's anyone who's run an early stage public or private company knows that you have a strategy, but to actually implement a strategy you gotta hit or exceed your number so we.
We are obviously doing that so and that's one reason why.
We put Miriam really to spend most of her time on strategy and execution around because it is a function that is so important.
To just continuing to build your dress for market your solution set all those things realm.
Irrelevant to patients and pharmacies.
We are still.
Our whole rationale around patient engagement was which is which is a fairly crowded space.
Is we have access to patients through the doctor's with our partners.
Most patient engagement companies do not have that and so we are we are still chipping away and starting to see that connectivity between the two.
And I think the sort of unlocking of digital tools for all involved it's gonna really help us accelerate that so I would say, we're making good headway on patients. We're also getting we'll talk more about this and cute too, but we're getting a lot of attention and the patient engagement space with.
It's a pretty serious contracts with our farm our clients. So I'm really excited about that.
We do have some early relationships at the point of dispense through pharmacies.
And as you know I added a board member used to run a pharmacy Walgreen's, Greg glass and it's been a great Board member and we're looking at all sorts of ways to connect into that as a longer connectivity play so lots of things to do there and I'll, let mirror them all.
<unk> way and if she wants to add anything to that.
Sure just a quick note. Thank you well, it's good to talk to Harvey I think we'll set it well a way to think about patient touch that is unique to optimize Iraq is we are directing directly connecting to the provider and then three the provider to the patient and that's one of the three.
Lines of the business that we also have the rack patient touch through the solutions that are in the patient engagement solutions that that are made as to anyone's smartphone the attacks, but it's highly curated and secure technology is just super easy for the patient or the consumer.
So we have them when they're just living their normal life with their smartphone, but we also have them. When we have the attention of the provider and the patient and most of the time, they're together or the patient is immediately leaving a visit or perhaps being discharged from hospital and then on the pharmacy side with Greg help and and others.
I'm looking very closely at how are quite a prescribing meets the plane at the fencing and all of the digital technology around both of those point.
Points of for action in the health care system, sorry about that I think my connection got link can you hear me, okay, well my good.
You're good. Thank you okay. Yeah. So go ahead. Thank you.
[noise] [noise] RV, thanks for that question.
[noise] will take the next question from the line of Alex Silverman with K W. I'm investments. Please go ahead.
Good evening guys how are you.
Hey, Alex.
So.
Given that the non some of your non enterprise business from last year converted into enterprise deals this year.
Do you think that the non enterprise revenue in 21.
Who would exceed the 2020 level.
Oh, absolutely yeah. There's just you kind of have to layer the what's going on in the world into all of this which frankly is it is it is accelerating and changing at a pace that you know most of US who worked for farm and I have never seen.
And so you know do we do we have a crystal ball no, but the adoption of connectivity the doctors and patients that digital is is gonna keep just going up and up because it not only is that the only way right now, but they will see the R. A Y the transparency the measurement D E N.
Connectivity of multiple touch points and they will you know there'll be drinking the koolaid sooner.
Sooner than than they would have if we didn't have this kind of disruption, but they will keep keep making that that Kuwait. So.
Forward looking statements should not be used to make investment decisions. The words anticipate estimate expect possible and seeking and similar expressions identify forward looking statements. They may speak only to the date that that such statements are made such forward looking statements. In this call include statements regarding estimation of total addressable market size market.
<unk> revenue growth gross gross margin operating expenses profitability cash flow technology investments growth opportunities acquisitions upcoming announcements and the need for raising additional capital.
It also include the management's expectations for the rest of the year and adoption of the company's digital health platform. The.
The company undertakes no obligation to publicly update or revise any forward looking statements, whether because of new information future events or otherwise.
Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified future events and actual results could differ materially from those set forth in contemplated by or underlying these forward looking statements the.
The risks and uncertainties to which forward looking statements are subject to include but are not limited to the effect of government regulation competition and other material risks risks and uncertainties to which forward looking statements are subject to could affect business and financial results are included in the company's annual report on form 10-Q for the quarter ended March 30.
<unk> 2021. This form is available on the company's website and on the SEC website at SEC Gov.
Before we end today's conference I would like to remind everyone that this call will be available for replay via webcast only starting later this evening running through for year. Please refer to today's press release for replay instructions available via the company's website at www dot optimize Rx dot com. Thank you for joining US today. This concludes today's conference call.
You may now disconnect your lines.
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Okay.