OptimizeRx Corporation Q1 2023 Earnings Call

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Speaker 2: Good afternoon everyone and thank you for joining OptimizeRx's first quarter fiscal 2023 earnings discussion. With us today is the Chief Executive Officer of OptimizeRx, Will Feble. He is joined by company Chief Financial and Operating Officer Ed Stalmach.

Speaker 2: Chief Commercial Officer Steve Silvestro, General Counsel and Chief Compliance Officer, Marion Odin's Ford, and Senior Vice President of Corporate Finance, Andrew De Silva. At the conclusion of today's earnings call, some important cautions regarding the Ford looking statements made by management during today's call will be provided.

Speaker 2: I would like to remind everyone that today's call is being recorded and will be made available for replay via webcast only. Instructions are included in today's press release and in the Investors section of the company's website. In addition, management will discuss certain non- GAAP financial measures.

Speaker 2: today that they believe aid in the understanding of the company's financial results. A reconciliation to comparable, GAAP financial measures can be found in today's press release.

Speaker 2: Now I'd like to turn the call over to optimize RXCEO Will Febbel. Sir, please go ahead.

Speaker 3: Thank you, operator. Good afternoon, everyone, and thank you for joining our first quarter fiscal 2023 earnings call. Our first quarter results were in line with our expectations and revenue came in at 13 million, which was at the top end of our Q1 revenue guidance range of 11.5 million to 13 million.

Speaker 4: 2013

Speaker 3: While the macro environment has a fully normalized, the industry trough appears to be behind us now and we continue to return to normalcy.

Speaker 3: This is the case despite the banking crisis that began to emerge at the end of D1 and while there was some short-term disruption with our customer base as top-down focus moved towards understanding the potential macro overhang that was short-lived and by early in the second quarter pharma gained comfort by the resolutions that were implemented to address

Speaker 3: those work themselves out and believe our reach focus on accessing positions across multiple lending paths and ability to efficiently scale while being able to report back data. Provide us with a significant competitive edge.

Speaker 3: More importantly, our AI-driven world road data or our WD AI offering continues to gain momentum and we are in late stage discussions for multiple deals and continue to believe revenue from miscellusion will increase at least 100% year-over-year and approach 20% of our total revenue for 2023.

Speaker 3: Our RWA AI pipeline is comprised of dozens of deals with a significant focus on the top 200 brands.

Speaker 3: We view the progress and the types of discussions we're in have extremely positive for our growth, not just in 2023, but in the coming years as well.

Speaker 3: We believe this momentum is keeping us ahead of the pack as there are no other AI driven in-work flow messaging solutions in the market.

Speaker 3: I'm extremely proud of our RWD AI solutions as it truly showcases our ability to innovate and effectively differentiate ourselves while driving actionable insights and better outcomes for pharma, HCPs, and patients.

Speaker 3: We are now in our second full year of having RWDAI solution in the market and have seen several examples of significant expansion and growth. For example, 1 client scaled from pilot. To now several live programs, programs representing our largest multi year expansion to date. Of over 5M.

Speaker 3: This expansion was unique, and then it represented extending our solutions in three dimensions, disease, channel reach, and message type. Very exciting.

Speaker 3: Operationally, our technology investments, partnerships, and TAPG in acquisitions have created a robust single shop on the channel offering, which has the ability to drive communications across multiple landing pads and is resulting in superior ROIs for the brands that we serve.

Speaker 3: We've also made tremendous progress in building on our industry reputation and expanding awareness of our solutions. Recall, part of what makes our business model special is the fact that we continue to manage the largest in-work, well point-of-care networking in the United States and are able to deliver digital solutions via the connectivity to prescribers.

Speaker 3: To complement this, we have been expanding service offering outside of the EHR, which we believe will result in us capturing a greater portion of the available industry in the coming quarters and years.

Speaker 3: Pharma is moving a greater portion of their more than 10 billion digital commercial spend towards on the channel solutions. While looking for these solutions to deliver more impactful results, by not only identifying patients known to HCP,

Speaker 3: but also pinpointing new patients for their therapy.

Speaker 3: We believe this bodes well for our WDAI as smarter solutions are what Farman is looking for as they continue to reallocate legacy commercial dollars to digital.

Speaker 3: We believe early proof of this trend is clearly highlighted by the momentum we are seeing with RWBAI, despite it being a newer offering with a higher price tag.

Speaker 3: RWDI has the added benefit of moving us from a tactical player with Farmer to a bigger strategic partner where we can benefit from the top down push by decision makers while pulling stickier revenue streams with stronger margins and a greater overall growth potential.

Speaker 3: As we mentioned in our last call, activity and outcome transparency requirements are continuing to gain importance at a rapid clip and is an area in which we will be investing this year. We view pharma's focus on relevant insights very positively.

Speaker 3: As it shows, they are getting more serious within our space and are looking to quickly weed out vendors with limited scale as well as spray and pray campaigns.

Speaker 3: In fact, we believe these capabilities will increase our market share and TAM as we are the only platforms that has integrated position level engagement data across EHRs, display, and social media, which provides a significant advantage over guiding engagement programs across multiple landing pads. By our estimates, the deeper insights that come from position level data reporting.

Speaker 3: will be the new normal for our space.

Speaker 3: Moreover, the level of insights that can be derived from digital campaigns today is something that was previously unattainable, which is why Farmer is embracing reporting in order to quickly catch up with the transformational best practices. And every day, we are witnessing the influence of insights from physician level data reporting.

Speaker 3: In fact, additional investments can have our customers.

Speaker 3: This new motivation to invest in a clear sign that Pharma is taking digital health more and more seriously and is looking to establish standards as they continue to scale up investments in this space.

Speaker 3: Later this year, we expect to have completed an enhancement of our platform that allows for smart targeting.

Speaker 3: through the use of AI on all programs, further enabling our customers' ability to effectively and efficiently utilize more landing pads and generate stronger ROIs.

Speaker 3: This will further strengthen our platform which, when coupled with our reach, capabilities and the over 10 to 1 ROI our customers obtain against their marketing spend, creates a significant mode for our business. Finally, during the quarter we closed the multi-million dollar three-year agreement with a leading hub service company.

Speaker 3: Thus far this is the largest deal of its kind for us and is tied to last year's acquisition of events met.

Speaker 3: The engagement is focused on determining drug eligibility and affordability and will help accelerate access to coverage and affordability information for a pharmacons or patient support program. And with that, I'd like to turn the call over to our CFO and COO, Ed Selmak, who will walk us through the financial details for two, one. Ed? Thank you.

Speaker 5: Thanks Will and good afternoon everyone. As with all our calls, a press release was issued with results of our first quarter and in March 31st.

Speaker 5: 2023. A copy is available for viewing and maybe downloaded from the best the release and section of our website.

Speaker 5: And additional information can be obtained through our forthcoming 10Q, which will be filed in a coming days.

Speaker 5: Turning to our financial results to the period.

Speaker 5: Our revenue for the quarter was 13 million, a slight decrease from 13.7 million to recognize during the same period in 2022.

Speaker 5: The decrease in Q1 year-on-year revenues was due to the macro headwinds with a mid-communicating since they started to take hold in Q2 2022. Meanwhile, our growth margin decreased slightly from 59% in the quarter-ended March 30th, 2022. The 57.2% in quarter-ended March 30th.

Speaker 5: 2023. Ledely below the lower end of our annual gross margin range.

Speaker 5: The decrease will do the solution in channel partner mix. We continue to expect gross margin to come in between 58 and 52% in 2023. Our operating expenses increased from $1.9 million for the three months ended March 21, 2022. We will continue to expect gross margin to come in between 3 months ended March 21, 2022.

Speaker 5: to 14.5 million for the same period in 2023 and increased of 22%.

Speaker 5: Nearly 50% of the increase was tied to higher stock-based compensation, and the remaining increase was primarily due to the full-year impact of a few 2022 hires and the event-med acquisition combined with annual merit increases and normalized bonus payouts for the year. We had a net loss of 6.4 million or 37 cents per basis.

Speaker 5: basic and fully diluted shares outstanding as compared to a non-gap net loss of 0.1 million or one cent per basic and fully diluted share in the same year go period. Operating cash flow is virtually breakeven and an emitterion loss of $86,000 during quarter, which was largely due to the timing of up front payments.

Speaker 5: to fund investments in our growing capabilities and expanded access.

Speaker 5: Our balance sheet remains strong with cash, cash equivalence and short-term investments shortland earning 3.7 million dollars.

Speaker 5: Our balance sheet remains strong with cash, cash equivalence and short-term investments totaling 73.7 million on March 31st, 2023.

Speaker 5: Compared to 74.1 million in December to the first 2022.

Speaker 5: We are well-capitalized to execute against our organic growth strategy and believe our balance sheet position thus to further expand our business solution offerings and drive profitable growth.

Speaker 5: We're also continuously evaluating and innate opportunities that fit within our strategic priorities that more attractive evaluations will compare to last year.

Speaker 5: In terms of our revenue outlook for the full year 2023, the company continues to expect revenue to increase at least 10% year over year.

Speaker 5: Now, let's turn to our KPIs for the first order 2023.

Speaker 5: Our average revenue per top 20 from a pharmaceutical manufacturer now stands at $2 million.

Speaker 5: as of the first quarter of 2023. And we are working with 18 of the top 20 largest pharmaceutical companies in the world and 100% of the top 20 that don't have the majority of their sales tied to COVID-19 vaccines.

Speaker 5: As a former farm executive, I believe that this segment of the industry represents the largest opportunity for commercial digital solutions, and we continue to have a solid presence in this piece.

Speaker 5: Our net revenue retention rate declined to 86%, due to the macroeconomic factors and the resulting impacts. The several client programs that we discussed in our prior course.

Speaker 5: Reminis Carectee held steady at $505,000 and in line we go to report it last quarter.

Speaker 5: at the show and Caitlin go.

Speaker 3: operator now let's move to Q&A.

Speaker 2: Thank you ladies and gentlemen we will now begin the question and answer session. Should you have a question please press star followed by the one on your touch tone phone. You will hear a three tone prompt acknowledging your request and your questions will be pulled in the order they are received. Should you wish to decline from the polling process please press star followed by the two. If you are using a speaker phone please lift your hands up before pressing any keys.

Speaker 2: One moment, please for your first question. Your first question comes from Ryan Daniels with William Blair. Please go ahead.

Speaker 6: Good afternoon. This is Jared Haasen for Ryan. Thanks for taking our questions. First one from us. We were just hoping to get some color regarding the state of financial assistance programs. There was a recent report highlighting some of the tension between farm on payers and maybe some manufacturers starting to pull back these programs.

Speaker 6: which obviously can have an impact on patient access. So it just carries if you could speak a little bit to what you're seeing in the market overall. And then I guess just as a related point, could you maybe tie in sort of what percentage of your revenue comes from these programs today? Yeah.

Speaker 3: Yeah, hey Jared, it's well good to hear your voice and I'll hand it over to you in a second. We don't break out revenue by solution because we're really moving towards that enterprise approach where it's multiple solutions and multiple pieces and they all have a relevant play in the patient journey.

Speaker 3: So, not going to break that out, but it's not a material percentage of our business. It hasn't been, we've spoken to that over the last few years. It's just a piece of the business that's important. And basically making affordability accessible will always be important. So, it's just a piece of the business that's important.

Speaker 3: I think where it's heading is it's going to become more specific to specialty medications where it really has the largest impact for the patient and the HCP to have a patient who's a cure. But let me hand it over to Ed and then maybe Steve can kick into. Thanks, Will. Thank you.

Speaker 5: a great question. Yes, I would agree with what we'll just said. Financial messaging has been declining slice of the overall pipe for us for a while. But I think these trends are driven by a farma trying to be much more targeted in financial messaging specifically.

Speaker 5: Due to the fact that COVID program just need to be a lot more target, it really boasts well for our RWE and AI solution mix that really helps us identify the right types of patients at the right time at the point of care.

Speaker 7: I don't know if I was giving anything else you want to add to that. Yeah, I mean, I would just say it's consistent also with the shift from sort of small molecule drugs in the marketplace. So sort of those massive name brands, household brands to the shift of specialty. You've got that exchange from volume to value occurring.

Speaker 7: more biologics and specific is that highlighted, would necessitate the change in co-pay programs or financial assistance anyway. So as Ed said, I think it's a net benefit to us giving our focus on our technology with our WDA. I work position really well to capitalize on that. So.

Speaker 6: Great question now. Thank you. Got it. Yeah, that makes sense. And yeah, I can appreciate the ability to target is certainly a differentiator. So I guess just as a follow-up here, will I think you alluded to the sort of tactical sales that being kind of the area of the business that's been most impacted by these transitory headwinds? Yeah.

Speaker 6: I'm wondering how quickly can those sales come back? I mean, do you feel like these budgets are largely set for the year at this point, or do you think, if we get maybe a little bit more stability that those types of things can maybe swing back in the second half of the year?

Speaker 3: Yeah, absolutely. So that on the tactical side, it is the one that can be dialed up and down the fastest, right? They're largely going through media companies or managing those budgets for pharma. Good news is we worked with, you know, over 50 agencies. We worked with obviously a lot of brands over the last year. So.

Speaker 3: as the macro does get better, that's the one they will dial up the fastest. So yeah, we were not calling that ball yet, but that is the one that would be dialed up in the second half. The good news is we're just seeing improvement in the first half.

Speaker 3: And I think that's largely due to some efforts we made mid last year to really double down on marketing and education of what we're doing with the agencies and really being a partner that helps them differentiate with Pharma. And we're seeing very good early signs of that. So stand still until the second half. Thank you.

Speaker 3: And I think that's largely due to some efforts we made mid last year to really double down on marketing and education of what we're doing with the agencies and really being a partner that helps them differentiate with Pharma. And we're seeing very good early signs of that. So stand still until the second half. Okay, great, appreciate all the comments. Thanks.

Speaker 2: Thank you. Your next question comes from Sean Dodge with RBC. Please go ahead. Thank you.

Speaker 7: Thanks. Maybe we'll just sit on tactical for a moment. Your comments are around that improving. Is there anything you can share to give us a sense of the magnitude of change there? Maybe like pipeline for tactical, I guess, you know, compared to Q4. How much is that?

Speaker 3: I don't progress or grant. Well, Ed would get mad at me if I stray from our KPIs. I'm not going to give you pipeline numbers. You know, be strong. But we are seeing, you know, mark the mark year over year, year to date over year. You're just.

Speaker 3: more active business already. And Sean, you know, we've talked about this. We really doubled down probably August , September last year around training, marketing, holding events, speaking at conferences.

Speaker 3: And that brought a lot of awareness up for within the agency sector. So I think that net, you know, they're all catching up. Pharma is catching up to digital and I think we've supplied a really clear message of what we can enable and in helping our clients find patients through HCP access.

Speaker 7: that you can share on visibility having to that. You know, this is we progress deeper into the year. I'd imagine a greater proportion that's now visible kind of via being under contract. Anything you can kind of share, quantify for us there.

Speaker 3: Sure, do you want to start? I can take them. Yes. Sure. Yeah. So, how are you?

Speaker 5: So, right now, basically, we would typically see between, I would say, 55 to 70% of our backlog already signed and committed. And we're tracking well within that range. So that gives us a nice kind of view on the back half of the year. From what we see today.

Speaker 5: So, you know, we really feel like it's a pretty healthy backlog and looks pretty solid to at least meet current gains.

Speaker 7: Okay, the six RWD deals you'll sign as far, are those all up and running now or is there some expectation that those will begin to flow in in Q2 and beyond that kind of help when we think about the incremental revenue cadence over the year?

Speaker 3: Yeah, they are all active now. And, you know, I think a key piece of the second half being heavier, or at least reliant on growth there is this time last year, we didn't really have a pipeline for our WDAI. And we have a very robust pipeline right now.

Speaker 3: So that's a, you know, we've talked about it as a growth driver, but that's what gives us even more confidence on the second half. And then the seasonality, Sean, as you know, that's a typical that second half is higher anyway, but yeah, this year there's a little bit more reliance on the pop them. Okay, okay. Thanks again.

Speaker 8: Thanks, Sean. See you next week. Your next question comes from Stephanie Davis with SBB. Please go ahead. Hey, guys. Thanks for taking my question. First, I know we've asked a lot of questions about the market, but one of your peers has called out some pipeline elongation across large pharma clients. So I was hoping we can get your view and your take on why some of this is happening.

Speaker 3: Yeah, I'm the macro. Sure. Well, Steve is in the thick of it. I'll let him talk to sales cycle and elongation.

Speaker 7: All right. Based, Stephanie, good to hear from you. Thanks for the question. So I mean, I think what we saw there was a little bit of this sort of pause with the financial situation that went on a little bit in the first quarter, frankly, sort of waiting to see what was going on. What we've seen post that is actually an acceleration on the pilot line. So we're seeing closed, closed.

Speaker 7: with what our typical sales cycle looks like. And so I don't have any reason to believe at this point that there'll be disruption in that. In fact, the sales cycle on some of our more sort of sophisticated targeting products is also starting to shorten as people are kind of scrambling to catch up.

Speaker 7: So I don't have any reason to believe at this point that there will be disruption in that. In fact, the sales cycle on some of our more sort of sophisticated targeting products is also starting to shorten as people are kind of scrambling to catch up. Very interesting dynamic. Good, great. Good question.

Speaker 8: So if you're seeing the backdrop a little bit better and you've announced a giant buyback optimization intra-quarter, why are we not seeing you buy shares hand over fist? Well there are these things called blackout periods. We have to follow the rules.

Speaker 3: So we obviously believe in our stock and we have had one authorized.

Speaker 3: when we can we will. But since March, right? Yeah, but we were in a blackout period when we actually announced that, so.

Speaker 3: Yeah, we have five days a quarter as you know and that was announced after that.

Speaker 3: Yeah, I would just add, Stephanie, that I think the sales cycle for peers, as they also are shifting to sort of bigger enterprise deals, there's just more decision makers.

Speaker 3: That's one aspect of it. The other thing is when you're doing something that may be close to another company that's claiming they can do it, well pharma wants to see if that's true. And so sometimes that slows them down to test it. We certainly saw that last year. We talked about it, sort of cluttered market landscape.

Speaker 3: And as Steve said, and we believe that's going to declutter pretty quickly because if you can't measure it and you can't present it transparently and show effectiveness, you're going to fade pretty quickly.

Speaker 3: as Steve said, and we believe that's going to declutter pretty quickly because if you can't measure it and you can't present it transparently and show effectiveness, you're going to fade pretty quickly. Okay, that's awesome. Thank you.

Speaker 3: Your next question comes from David Grossman with Steve. Please go ahead. Thank you. You know, I just wanted to go back to a couple of comments you made in your prepare remarks. And one of those was that you said you were...

Speaker 7: Beginning to expand more aggressively outside the HR and I'm wondering, could you just elaborate on what you're doing and strategically what you're trying to accomplish?

Speaker 3: Absolutely, hey, Dave as well. So when you think about where we are within our client base and how we track to the patient journey.

Speaker 3: and helping them stay connected to that patient journey by HTTP access. Doctors and op just on their EHR all day, right? They're on their cell phones. They're in care team technology meetings. There's a lot of different touch points they're using telehealth, depending on the therapeutic care.

Speaker 3: plan around HCP access.

Speaker 3: And the key piece to this is you have to do all that while being transparent, just by position level data.

Speaker 7: answer responding pretty well for that. I mean, if they hate it, I think you highlighted it well. I mean, it's essentially meeting the physicians where they're at. And the key differentiating point for us is the ability to report back physician little data in terms of those interactions. So unlike sort of generalist and demek website in verticence.

Speaker 7: The ability to provide back PLD and show at a physician level what's going on, I think is going to be the key differentiator for us. And as you heard from, well, it's not just in the EHR that we can do that, but it's every other platform that we're looking at. We're making that a focal point. So it's. You know, it's going to give us a key differentiate differentiating point from any anybody in our peer set. Right.

Speaker 3: And one thing that's come up, I think in the digital aspects, at least, are, you know, mediabying other things is the potential impact, you know, of generative AI. And I know this is a big buzz word, kind of media thing going on right now, but that being said, I'm just wondering, you know, how much you've thought about the impact on your business and how it can help you and where it can potentially hurt you, you know, if others, you know, kind of get into it before you.

Speaker 3: Yeah, it's interesting. We obviously, like everyone is watching that, but the truth is we've been doing machine learning for the last two and a half years through. That's our WDAI, right? So we have that implemented active. We have revenue against it in the pipeline. So it's not, it's not a.

Speaker 3: you know, a dream we're hoping that someday makes our company more efficient. It already has. And I think you heard in the prepared remarks that we're going to have our platform to a place where we can enable that service for any brand, any size campaign from the entire network. And that's material because if you think of this space like all marketing, it gets more and more transparent sophisticated.

Speaker 3: week with our team of data scientists and I could tell you it's very much in the DNA of the company. So I obviously have seen other companies looking at it using it from anywhere from note, you know, simplifying note-taking to clinical decision support.

Speaker 3: precincts have been in the workflow for a while and they're going to get better faster. And the reason why we're watching it but not totally paranoid that someone's become in who's faster, smarter, smaller, whatever is they they're not in the workflow. And as we've talked about, the EHRs are already full with people there and aren't really looking for more. So...

Speaker 3: I think we're in a good place to be their partner with this and just deliver great innovative solutions to the doctor in the patient. But have the use cases for the RWE products, if you look back to the first couple deals you signed a year ago or so and what you're doing now is there.

Speaker 3: And any big change. It's there they're unbelievably effective. So like we're finding patients.

Speaker 3: that our clients otherwise wouldn't find who need the medications that are out there. So it's impactful for outcomes, it's impactful for the patient, the doctor, and obviously for our clients. So yeah, there's some, it's really, it's actually really firing us up because it's a smarter message and it's based on

Speaker 3: some good intel we have, patent pending, we're really focused on building that out. And I think we'll have more and more cases to share, but in the prepared remarks we certainly talk to one.

Speaker 3: Right. And just one financial question, maybe for Ed. It looks like stack based const stayed relatively flat, but your your gap operating expenses.

Speaker 3: sequentially I think went up, you know, quite more than we would have expected. So I'm just trying to think through, given what's going on with the top line, you know, what's going on in the operating expenses. Maybe these are expenses that are just fixed costs, but I was just surprised at how much the expenses went up sequentially. Yeah, yeah. So on the APEX side, if you just look at the cash come.

Speaker 5: A few things that we, first of all, you're right compensation has gone up and that's really a product of a couple of things. Uh, near the increases we made a few. We're very few hires last year. We also reset our bonuses for this year. As you know, last year we missed our numbers so we didn't have to pay out full bonuses. So that's just a reset of bonuses for this year.

Speaker 5: Back to 100%. And then secondly, it's really the investment related to expansion of our footprint.

Speaker 5: as well as some of the reporting capabilities that we've mentioned. I would say if you look at APEX run rate, you can expect a slight increase in subsequent quarters.

Speaker 5: Not in the millions, more in the hundreds of thousands of dollars per quarter. Just to continue to capture those points I just made.

Speaker 2: Our next question comes from Neil to...

Speaker 7: Chattarji with B. Riley, please go ahead. Hey guys, good afternoon and next we're taking a question. Maybe this first curious, you can just give us, you know, maybe more color on that. I guess the smart targeting enhancement you were talking about for the platform.

Speaker 3: Well, so we've been talking about RWDAI for a while. Why don't I let Steve, why don't you give us just a quick overview of really the simple message to why this works for doctors, clients, and patients.

Speaker 7: Yeah, happy to. Hey Neil. I mean essentially what we're doing is we that allows us to look at it for individual patient profiles across the ecosystem of patients in the U.S.

Speaker 7: other businesses that execute, but this business is unique and that it's got all three of those components now solely connected together to be able to go out, find, identify, execute, you know, and pull through. And that's the key differentiator. I think that's the simplest way I could really describe it.

Speaker 7: And that's why it's so effective, right? Because you've just got this linear plug in that's very efficient and can scale. Helpful? I might have missed the door. There's not something new for later this year.

Speaker 9: No, it's just it.

Speaker 9: No, no, it's just it. That's right. Go ahead. Go ahead. See.

Speaker 9: Nope, go ahead Will. I was just going to say it's just expanding it to be available to our entire network for all brands that we work with. So just a more sophisticated trigger mechanism which gives better targeting and better ROI. Great.

Speaker 9: Thanks for that clarification. And then just another follow up here, just on the HUB service agreement that you got, just curious on the kind of the expected impact from that.

Speaker 9: Yeah, it's about a million a year spread out pretty evenly through each year. And

Speaker 9: That's one brand, one hub. And so, you know, it's pretty easy to see how that could scale pretty nicely.

Speaker 9: And we're proud of that. It's a good win. The team did a great job. And we've got a solution that can really help the hubs.

Speaker 9: and therefore, you know, the patient and those programs or, you know, patient assistance programs around eligibility and affordability. So, Bach prince is the lead in both of those programs

Speaker 9: that we're able to bring across the line. Great, thanks. That's it for me. Thanks, Neil.

Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the one. Your next question comes from Max Michaels with Lake Street Capital Markets. Please go ahead.

Hey guys, thanks for taking my question. I know last quarter conference call you had mentioned that you weren't seeing any major investments in the first half of the year. I'm wondering now that we approached the midpoint of 2023 if that process has changed at all.

So do you mean investments from the client's perspective or investments from the... I mean...

So, do you mean investments from the client's perspective or investments from the. With a healthy balance sheet it could be.

technology improvement, M&A, if you're seeing anything out in the market. It's just more broader investment, I guess. Yeah, sure. So as Ed said, we're very actively looking at M&A targets. We think through this year, valuations will be more achievable for someone in our size and situation.

Obviously, we'll be highly selective in that process, but have several really great active discussions going on. We're investing in ourselves. We're really good at that. We've got unbelievably good ROI when we invest in ourselves, probably our best ROI today. So we continue to invest in reporting in, you know, best in class technology, and then obviously solution expansion.

physicians or patients wherever they are. So we're investing in all three of those.

Thank you everyone for joining us on our updated call this afternoon. We continue to work through the opportunities before us with the expectation that growth will come in the coming quarters.

We are maintaining our focus on product execution to continue to deliver a superior ROI on behalf of our customers.

which has and will continue to pay dividends as we execute against the opportunity within the vast white space.

of our current trading price as we execute against the opportunity at hand.

As a result, we intend to set up our trading plan for our recently authorized share repurchase program once our next trading window opens. I want to remind everyone of our key strengths, which we expect will continue to propel OPRX's story in 23 and beyond. We have the largest in-workflow network in the US.

that reaches more than 60% of the active prescribers. Our landing pads outside the EHR.

substantially increase our prescriber reach and enables us to build cutting-edge solutions. Finally, our AI enablement, which identifies HCPs whose patients are most in need of our customers' resources and therapies, is catching a toehold and we believe favorably positions us to grow for the foreseeable future.

We are firmly positioned to execute against our 23 financial and operational goals, which we believe will be bolstered by our strong balance sheet, which is something I'm very proud of given the current capital markets backdrop. As such, we look forward to making a positive impact across our pharma, our scriber, and patient stakeholder base for years to come. Thanks again for joining us on our call today.

And we look forward to everyone joining us at the upcoming conferences.

look forward to everyone joining us at the upcoming conferences in our next earnings call.

coming conferences and our next earnings call. Operators?

Thank you, sir. Before we conclude today's call, I would like to provide the company's Safe Harbor statement that includes important cautions regarding forward-looking statements made during today's call. Statements made by management during today's call may contain forward-looking statements within the definition of Section 27A.

in the Securities Act of 1933 as amended and Section 21e of the Securities Act of 1934 as amended. These forward-looking statements should not be used to make investment decisions. The words anticipate, estimate, expect, possible and seeking in similar expressions identify forward-looking statements. They may speak only to the date.

that such statements are made. Such forward-looking statements in this call include statements regarding estimation of total addressable market size, market penetration, revenue growth, gross margin, operating expenses,

Profitability, cash flow, technology investments, growth opportunities, acquisitions, and upcoming announcements. They also include the management expectations for the rest of the year.

events or otherwise for 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 for looking statements.

The risks and uncertainties to which forward-looking statements are subject to include but are not limited to the effects of government regulation, competition, and

and other material risks. Risks and uncertainties to which forlooking statements or subject to could affect business and financial results are included in the company's annual report on the form 10K for the quarter ended December 31st, 2022.

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 a year. Please refer to today's press release for replay instructions available via the company's website at www.sec.gov.

The conference is no longer being recorded.