Q1 2025 OptimizeRx Corp Earnings Call
Unknown Shareholder: Ed Stelmakh, Chief Legal Officer Marion Odence Ford, and Senior Vice President of Corporate Finance Andrew De Silva. At the conclusion of today's call, I will provide some important cautions regarding the forward-looking statements made by management during today's call. The company will also be discussing certain non-GAAP financial measures which it believes are useful in evaluating the company's operating results. A reconciliation of such non-cap financial measures is included in the earnings release the company issued this afternoon, as well as in the investor relations section of the company's website.
Chief legal officer, Marine audience, food and senior Vice President of corporate Finance and do this as well.
At the conclusion of today's call I will provide some important cautions regarding the forward looking statements made by management during today's call.
The company will also be discussing certain non-GAAP financial measures, which it believes are useful in evaluating the company's operating results.
A reconciliation of such non-GAAP financial measures is included in the earnings release. The company issued this afternoon as well as in the Investor Relations section of the company's website.
Unknown Shareholder: I would like to remind everyone that today's call has been recorded and will be made available for replay as an audio recording of this conference call on the investor relations section of the company's website.
I would like to remind everyone that today's call is been recorded and will be made available for replay as an audio recording of this conference call on the Investor Relations section of the company's website.
Unknown Shareholder: I would now like to turn the conference over to OPTIMIZERx CEO, Steve Silvestro. Mr. Silvestro, please go ahead.
Speaker Change: I would now like to turn the conference over to optimize our ex CEO, Steve Silver Shaw Mr. <unk>. Please go ahead.
Stephen Silvestro: Thank you, Operator, and good afternoon to everyone joining today's first quarter 2025 call. I'm delighted to share our first quarter 2025 results, which came in ahead of both consensus estimates and our internal expectations. Momentum from Q4 has continued into 2025 with Q1 revenues increasing 11% year over year to $21.9 million, with adjusted EBITDA coming in at $1.5 million, an improvement of nearly $2 million year over year during what is typically our seasonally weakest quarter. Moreover, our contracted revenue continues to increase to more than 20% year over year, which positions us favorably going to the back half of the I believe this is a clear indicator that our focus on operational excellence while ensuring we delight our customers and forge stronger relationships with valued business partners is bearing fruit.
Speaker Change: Thank you operator, and good afternoon to everyone. Joining today's first quarter 2025 call I'm delighted to share our first quarter 2025 results, which came in ahead of both consensus estimates and our internal expectations momentum from Q4 has continued into 2025 with Q1 revenues increasing 11%.
Speaker Change: <unk> year over year to $21 9 billion with adjusted EBITDA coming in at $1.5 million, an improvement of nearly $2 million year over year. During what is typically our seasonally weakest quarter. Moreover, our contracted revenue continues to increase to more than 20% year over year, which positions us favorably going to the back half of the year.
Speaker Change: I believe this is a clear indicator that our focus on operational excellence, while ensuring we delight our customers and forged stronger relationships with value business partners is bearing fruit. In addition, despite media coverage in the market related to initiatives being implemented by the New administration, we are not seeing significant headwinds directly impacting our business at this time and.
Stephen Silvestro: In addition, despite media coverage in the market related to initiatives being implemented by the new administration, we are not seeing significant headwinds directly impacting our business at this time.
Stephen Silvestro: And we are closely monitoring pharma leading indicators by continuously engaging with our With that said, I'm happy to say we are increasing our guidance for the year and are looking for revenue to come in between $101 million and $106 million with an adjusted EBITDA to be between $13 and $15 million. We believe that the combination of disciplined cost management and targeted upselling strategies centered around educating customers on budget allocation approaches that drive script lift has positioned us strongly for success in 2025 and beyond. This progress is bringing our goal of achieving Rule of 40 performance in the coming years well within reach.
We are closely monitoring pharma, leading indicators by continuously engaging with our clients.
Speaker Change: With that said I'm happy to say, we are increasing our guidance for the year and are looking for revenue to come in between $101 million and $106 million with an adjusted EBITDA to be between 13 and $15 billion.
Speaker Change: We believe that the combination of disciplined cost management and targeted upselling strategies centered around educating customers on budget allocation approaches to drive script lift has positioned us strongly for success in 2025 and beyond.
Speaker Change: This progress is bringing our goal of achieving the rule of 40 performance in the coming years well within reach Additionally, we're seeing early momentum and our transition to a subscription based model with over 5% of our projected annual revenue already converted to subscription contracts for 2025.
Stephen Silvestro: Additionally, we're seeing early momentum in our transition to a subscription based model with over 5% of our projected annual revenue already converted to subscription contracts for 2025.
Stephen Silvestro: Before moving on, I want to take a moment and thank our market leading team. We deeply appreciate the dedication and hard work of everyone at OPTIMIZERx as we navigate an increasingly complex, dynamic and still emerging digital pharma marketing landscape. The industry is undergoing a significant shift, and our products and services are poised to fundamentally reshape how pharmaceutical companies, patients, and prescribers engage. Our mission-driven culture not only fuels this transformation, but also positions us to attract, retain, and strengthen the critical relationships a leading technology company needs to be a trusted and enduring partner. We believe OPTIMIZERx is uniquely positioned to drive significant value creation and deliver long term sustainable shareholding.
Speaker Change: Before moving on I want to take a moment and thank our market leading team.
Speaker Change: We deeply appreciate the dedication and hard work of everyone at optimize our acts as we navigate an increasingly complex dynamic and is still emerging digital pharma marketing landscape. The industry is undergoing a significant shift in our products and services are poised to fundamentally reshape how pharmaceutical companies patients and prescribers.
Speaker Change: Scriber engage.
Speaker Change: Our mission driven culture, not only fuels this transformation, but also positions us to attract retain and strengthen the critical relationships, a leading technology company needs to be a trusted and enduring partner.
Speaker Change: We believe optimize Rx is uniquely positioned to drive significant value creation and deliver long term sustainable shareholder grows by.
Stephen Silvestro: By leveraging one of the largest point of care networks in the country, we enable pharmaceutical manufacturers to reach health care providers directly at the point of care. Building on this foundation, we have combined our unmatched network with a purpose-built omni-channel technology platform with leading patient-finding capabilities through DAP and micro-neighborhood targeting. That is redefining how pharmaceutical companies, physicians, and patients engage, receive, and digest information, ultimately helping to improve patient outcomes. These advantages give us a distinct and durable competitive edge. With unrivaled reach at the point of care and directly to consumers, we believe we are the only company in the industry capable of effectively connecting with both doctors and patients at scale.
Speaker Change: By leveraging one of the largest point of care networks in the country, we enable pharmaceutical manufacturers to reach health care providers directly at the point of care.
Speaker Change: Building on this foundation, we have combined our unmatched network with a purpose built omni channel technology platform with leading patient finding capabilities through that and micro neighborhood targeting that is redefining how pharmaceutical companies physicians and patients engage receive and digest information ultimately helping to improve.
Speaker Change: Patient outcomes.
Speaker Change: These advantages give us a distinct and durable competitive edge.
Speaker Change: With unrivaled reach at the point of care and directly to consumers. We believe we are the only company in the industry capable of effectively connecting with both doctors and patients at scale. This.
Stephen Silvestro: This unique position has allowed us to develop the broadest suite of solutions in the market, empowering us to meet the diverse and evolving needs of our customers across every stage of the product license.
Speaker Change: This unique position has allowed us to develop the broadest suite of solutions in the market empowering us to meet the diverse and evolving needs of our customers across every stage of the product lifecycle.
Stephen Silvestro: As mentioned on our last call, our business continues to evolve, a key focus for the company will be drawing greater attention to our reach and scalability, while positioning ourselves as a strategic partner and addressing some of the most critical commercialization challenges facing pharma today. These include improving brand visibility, reducing script abandonment, enhancing interoperability, and supporting growing shift toward more complex and costly specialty medications. I'm confident that success in these areas, combined with the strong performance we are already delivering, including ROI exceeding 10 to 1 and script lifts of 25% on programs running just six months, will drive significant short and long term shareholder value.
Speaker Change: As mentioned on our last call our business continues to evolve a key focus for the company will be drawing greater attention to our reach and scalability, while positioning ourselves as a strategic partner in addressing some of the most critical commercialization challenges facing pharma. Today. These include improving brand visibility reducing script of banner.
Speaker Change: Enhancing interoperability and supporting growing shift toward more complex and costly specialty medications.
Speaker Change: I am confident that success in these areas combined with the strong performance, we are already delivering including ROI exceeding tend to one and scrip lifts of 25% on programs running just six months will drive significant short and long term shareholder value Mauro.
Stephen Silvestro: Moreover, this momentum will position us to capture greater market share, while also expanding the overall size of pharma's digital spend, which already exceeds 10 billion annually. Our customers remain deeply embedded within our ecosystem of offerings, and it remains our goal to help them stay present throughout the patient care journey across the integrated HCP and DTC business.
Speaker Change: Moreover, this momentum will position us to capture greater market share. While also expanding the overall size of farmers digital spend which already exceeds 10 billion annually.
Speaker Change: Our customers remain deeply embedded within our ecosystem of offerings and it remains our goal to help them stay present throughout the patient care journey across the integrated H C. P in DTC business and optimize our fracs.
Edward Stelmakh: And with that, I'd like to turn the time over to our CFO Ed Stelmakh, who will walk us through our financial details. Thanks, Steve, and good afternoon, everyone. As with all our calls, the press release was issued this afternoon with the results of our first quarter ended March 31st, 2025. The copy is available for viewing and may be downloaded from the best of relations section of our website. and additional information can be obtained through our forthcoming 10Q. First quarter 2025 revenue was $21.9 million, an increase of 11% from the $19.7 million we recognized during the same period in 2024.
Speaker Change: And with that I'd like to turn the time over to our CFO, Ed stomach, who will walk us through our financial details Ed.
Ed: Thanks, Steve and good afternoon, everyone.
Ed: As with all our call. The press release was issued this afternoon about the results of our first quarter ended March 31st when you're 25.
Ed: Copies are available for viewing and may be downloaded from the Investor Relations section of our website.
Ed: And additional information can be obtained through our forthcoming 10-Q.
Ed: First quarter 2025 revenue was $21 9 million, an increase of 11% from the $19 7 million recognized during the same period in 'twenty to 'twenty four.
Edward Stelmakh: Gross margin for the quarter decreased from 62% in the quarter ended March 31st, 2024, to 60.9% in quarter ended March 31st, 2025. Year-on-year change in gross margin was primarily due to product and channel partner mix, as we did see an increase in DTC-related managed service revenue. Our operating expenses for the quarter ended March 31, 2025, decreased $1.8 million year over year, primarily driven by stock based compensation and cost savings implemented last year. The company had a net loss of $2.2 million or $0.12 per basic and diluted share for the three months ended March 31, 2025, as compared to a net loss of $6.9 million or $0.38 per basic and diluted share for the three months during the same period in 2024.
Ed: Gross margin for the quarter decreased from 62% in the quarter ended March 31st 2024.
Ed: The 60.9% quarter ended March 31st 2025.
Ed: Year on year change in gross margin was primarily due to product and channel partner mix as we did see an increase in DTC related managed service revenue.
Ed: Our operating expenses for the quarter ended March 31st 2025 decreased $1.8 million year over year.
Ed: <unk> driven by stock based compensation and cost savings implemented last year.
Ed: The company had a net loss of 2.2 million or 12 cents per basic and diluted share for the three months ended March 31st 2025 at.
Ed: As compared to a net loss of 6.9 million or <unk> 38 cents per basic and diluted share for the three months during the same period in 2024.
Edward Stelmakh: On a non-gap basis, the company's net loss for the first quarter of 2025 was $1.5 million or $0.08 per diluted share. as compared to a non-GAAP net loss of $2,000,000 or $0.11 per diluted share in the same year-ago period. Meanwhile, our adjusted EBITDA came in at $1.5 million for the quarter, compared to $0.3 million loss during the first quarter of 2024. Operating cash flow came in at $3.9 million for the first quarter, and the cash balance at the end of the quarter was $16.6 million as compared to $13.4 million on December 31st, 2024. Our debt balance currently stands at $33.8 million.
Ed: On a non-GAAP basis, the company's net loss for the first quarter of 2020 five was 1.5 million or eight cents per diluted share.
Ed: As compared to a non-GAAP net loss of 2 million or 11 cents per diluted share in the same year ago period.
Ed: Meanwhile, our adjusted EBITA came in at 1.5 million for the quarter compared to 2.3 million loss during the first quarter of 'twenty 'twenty four.
Ed: Operating cash flow came in at 3.9 million for the first quarter and our cash balance at the end of the quarter was 16.6 million as compared to $13 4 million on December 31st 'twenty 'twenty four.
Ed: Our debt balance currently stands at $33.8 million.
Edward Stelmakh: And we paid off $6.2 million of principal through first quarter of 2025. Given our strong working capital position and operating cash flow, we are confident in our ability to fund our operating needs, as well as key strategic priorities to achieve the Rule of 40. Our committed contractor revenue as of the end of the first quarter of 2025 exceeded $70 million, which is a greater than 25% improvement over the same period last year. This is a testament to all the investments that have been made in building market leading solutions that meet and exceed our clients' expectations and positions as well to continue our march towards becoming a rule of 40 company.
Ed: And we paid off $6 2 million of principal through first quarter of 'twenty or 'twenty five.
Ed: Given our strong working capital position and operating cash flow, we are confident in our ability to fund their operating needs as well as a key strategic priority is to achieve the rule of 40.
Ed: Our committed contracted revenue.
Ed: As of the end of the first quarter of 2020 five exceeded $70 million, which is a greater than 25% improvement over the same period last year.
Ed: This is a testament to all the investments that have been made and building market, leading solutions that meet and exceed our clients' expectations and.
Ed: And positions us well to continue our march towards becoming a rule of 40 company.
Edward Stelmakh: Now let's turn to our KPIs for the first quarter of 2025. Average revenue per top 20 pharmaceutical manufacturer now stands at approximately $3 million. with these top 20 companies representing 63% of our business in Q1 2025. Net revenue retention rate remains a strong 114%. Meanwhile, revenue per FTE came in at $710,000. Topping the 641,000 we posted in Q1 2024. We are encouraged by our continuous improvement in our KPIs and the overall progress in the business performance so far.
Ed: Now, let's turn to our Kpis for the first quarter of 2025.
Ed: Average revenue per stop 20 pharmaceutical manufacturer now stands at approximately $3 million.
Ed: With these stopped when your companies representing 63% of our business in Q1, 2020 five.
Ed: Net revenue retention rate remains a strong 114%.
Ed: Meanwhile, revenue per FTE.
Ed: At $710000.
Ed: Stopping this 641000, we posted in Q1 'twenty 'twenty four.
Ed: We are encouraged by our continuous improvement in our <unk>.
Ed: Ice and the overall progress in the business performance so far.
Stephen Silvestro: And with that, I would like to turn the call back over to Steve. Steve. Thank you, Ed.
Speaker Change: And with that I would like to turn the call back over to Steve Steve.
Speaker Change: Thank you Ed operator, let's go ahead and move to Q&A.
Unknown Shareholder: Operator, let's go ahead and move to Q&A. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.
Speaker Change: Thank you.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad.
Speaker Change: You're using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been address and you would like to withdraw your question. Please press Star then two.
Unknown Shareholder: At this time, we will pause momentarily to assemble a roster.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Ryan Daniels: The first question comes from Ryan Daniels with William Blair. Please go ahead. Guys, did you hear the question? No. We couldn't hear the question. Sorry. Sorry about that.
Speaker Change: The first question comes from Ryan Daniels with William Blair. Please go ahead.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: You guys did you hear the question.
Speaker Change: Now are we couldn't hear the question sorry.
Speaker Change: Sorry about that.
Ryan Daniels: Thanks for taking the question and congrats on the strong performance. And I hate to ask this because you increased your guidance and said you're not seeing anything. But by far the biggest question we keep getting is just all the noise in the end market with tariffs and with price negotiations, etc. I'm curious how real-time your feedback is from your sales team. And number two, if you've seen any hesitation in any of your at this point making any changes because it's so uncertain in the marketplace today. Thanks. Thanks for the question. We've, we've not seen really any pullback from our clients, we are getting real time information and updates as we're kind of daily dealing with them.
Speaker Change: Thanks for taking the question and congrats on the strong performance and I hate to ask this because you increased your guidance <unk> said youre not seeing anything but by far the biggest question. We keep getting is just all the noise in the end market with tariffs and with price negotiations et cetera.
Speaker Change: I'm curious how real time your feedback is from your sales team and number two if you've seen any hesitation in any of your customers or if they're just not at this point, making any changes because it's so uncertain in the marketplace today. Thanks.
Speaker Change: Okay. Thanks for the question, we we've not seen really any pullback from our clients. We are getting real time information and updates as we're kind of daily dealing with them. What we have seen really is just a leaning in and trying to drive a little bit harder at these markets.
Stephen Silvestro: What we have seen really is just a leaning in and trying to drive a little bit harder at these markets. You know, jury's still out on how things will be impactful going forward into the future and how things will be rolled out. But right now, no indication of any sort of pullback in the business at all. We actually see the opposite. People leaning in, trying to leverage digital channels a little bit more than before. And I think that the other thing to look for is just I would say the cost effectiveness of digital versus some of the other channels that they use to promote.
Speaker Change: You know jury's still out on how things will be impactful going forward into the future.
Speaker Change: And how things will be rolled out, but right now no indication of any sort of pullback in the business at all.
Speaker Change: So the opposite people, leading and trying to leverage digital channels, a little bit a little bit more than before and I think that the the other thing to look for is just.
Speaker Change: I would say the cost effectiveness of digital versus some of the other channels that they use to promote and you know there that if they get into cost cutting in a sort of state will we'll probably see some of the other things ratchet back faster than digital you may see even more acceleration.
Ryan Daniels: And, you know, if they get in a cost cutting, you know, sort of state, we'll probably see some of the other things ratchet back faster than digital, you may see even more acceleration. in our favor if they go down that road. But yeah, to date, no, nothing really to panic Okay, no, that's super helpful color actually.
Speaker Change: Our favor if if they go down that road, but yet to date no nothing really to panic about.
Speaker Change: Okay. No. That's super helpful color actually and then can you remind us when you move to subscription based revenue upon removal, how does that impact kind of the revenue recognition over a 12 month period and the margin does that.
Unknown Shareholder: And then can you remind us when you move to subscription based revenue, you know, upon removal, how does that impact kind of the revenue recognition over a 12 month period in the margins? Does that just I'll leave it there? How does it really impact margins in RevRec? If we think about the total revenue? It'd be more, I'll grab it and ask, oh, go ahead. You take it. Go ahead. Yes. Yeah, basically, I mean, it's relatively simple. It kind of spreads your revenue over the 12 month period. It takes the The dollars associated with subscription-related solutions and services and spread those over the course of the year.
Speaker Change: I'll leave it there how does it really impact margins and Rev. Rec, if we think about the total revenue.
Speaker Change: It would be more of that rebate at NASS you.
Speaker Change: Do you take it got it yes turnover right.
Speaker Change: Yeah, basically I mean, it's really the simple kind of spreads your revenue over the 12 month period. It takes the the the.
Speaker Change: The dollars associated with our subscription related solutions and services and spread those over the course of the year.
Speaker Change: Okay.
Speaker Change: Mark.
Speaker Change: Your next question.
Edward Stelmakh: It's actually a credit to us because of the revenue share perspective. We cannot keep most of that revenue to ourselves and the cost of sales for that revenue is pretty low. Okay, okay.
Speaker Change: It's actually accretive to us because of the you know Robert to share perspective.
Speaker Change: We cannot keep most of that revenue to ourselves and the cost of sales for that revenue is pretty low.
Speaker Change: Okay. Okay, I, just want to confirm and then.
Unknown Shareholder: I just want to confirm.
Unknown Shareholder: And then, you know, you mentioned, I think, Ed, that the direct-to-consumer managed services kind of mix is diluting gross margins a little bit.
Speaker Change: You mentioned I think at the door.
Speaker Change: To consumer managed services kind of mix is diluting gross margins a little bit how should we think about the gross margin profile of the company going forward is that kind of low 60% range still the right target or might you see more growth there that pushes it slightly below that thanks.
Edward Stelmakh: How should we think about the gross margin profile of the company going forward? Is that kind of low 60% range still the right target, or might you see more growth there that pushes it slightly below that? Thanks. That material at this point, so we feel pretty comfortable with the current range. Okay, yeah, right. And so we historically talked about his high 50% range to the low to mid 60% range for gross margins. And so first quarter was well within that range. Okay, perfect. Thanks a lot, guys. Appreciate it. Yeah, good to hear your voice.
Speaker Change: Yeah, we're certainly working on trying to increase that above the low 60% Mark.
Speaker Change: But right now.
Speaker Change: Makeup of our portfolio is such that.
Speaker Change: When we do have some solutions that are a little bit more on the margin side.
Speaker Change: You'll see that sort of a dilution.
Speaker Change: Good news is we're diversified enough werent, none of our solutions really become an impact.
Speaker Change: That material at this point, so we feel pretty comfortable with the current range.
Speaker Change: Okay, Yeah, right. So we've historically talked about is that high 50% range to the low to mid 60% range for gross margins and so first quarter was well within that range.
Speaker Change: Okay perfect. Thanks, a lot guys I appreciate it good.
Ryan Daniels: Good to hear your voice Ryan Thanks for the thanks for the questions.
Unknown Shareholder: Ryan, thanks for the thanks for the question.
Unknown Shareholder: Thank you.
Speaker Change: Thank you.
David Grossman: The next question comes from David Grossman with Stifel, please go ahead. Thank you very much. I think in your prepared remarks, you know, I think Steve, you said that, or maybe it was Ed, that you had $70 million in committed revenue. And I assume you're speaking to visibility on the year, and that was up 25%. So just back the envelope math, does that suggest that you've got a little over 70, about 70% visibility today, this point in the year versus 60% last year? Did I, did I get that right? Yeah, it's north of the 80s.
Speaker Change: The next question comes from David Grossman with Stifel. Please go ahead.
David Grossman: Alright, Thank you very much.
Speaker Change: I think in your prepared remarks, you know I think Steve you said that there are maybe with that that are you at $70 million in committed revenue.
Speaker Change: Seniors speaking the visibility on the year and that was up 25%. So.
Speaker Change: Just back of the envelope math does that suggest that you've got a little over 70 or about 70% visibility today. This point in the year versus 60% last year today did I get that right.
Speaker Change: Yeah.
Yeah Yeah.
Edward Stelmakh: Yeah, you're in the ballpark. It's north of 80 where we currently sit. That's what's in the prepared. and you're in the ball. Okay. Somewhere up there. Okay.
Speaker Change: You're in the ballpark, it's north of 80.
Speaker Change: Where we currently set not just in the prepared remarks and you're in the ballpark David.
Speaker Change: Okay.
Speaker Change: Thanks.
David Grossman: So what was being said in the prepared remarks was at the end of the first quarter, so end of March. That's what we said. What Steve just said is where we're at right now. in the release hours. But just on a apples to apples basis, it sounds like you're up about 10 points though at the end of March in terms of visibility on the air, right? Well, we're actually up about 25% from last year on the committed backlog as of the end of Q1. which will have given us so much optimism by the year. Gotcha.
So what was being said in the prepared remarks I was at the end of the fourth first quarter. So end of March.
Speaker Change: What we said.
Steve Steve: What Steve.
Speaker Change: You just said with where we're at right now.
Speaker Change: In the release.
Speaker Change: So just on a apples to apples basis, it sounds like you're up about 10 points. So at the end of March in terms of visibility on the year right.
Speaker Change: Well, we're actually up about 25 planned point from last year on the committed backlog as of the end of Q1.
Speaker Change: Given us.
Speaker Change: So much optimism by the year.
Speaker Change: Got you and then in terms of the.
David Grossman: And then in terms of the amount or how much more revenue we can convert to subscription, you know, kind of just think about it over the balance of the year.
Speaker Change: The amount or how much more revenue, we can convert to subscription.
Speaker Change: Or kind of just think about it over the balance of the year, how should we think of how that 5% may migrate.
Unknown Shareholder: How should we think of how that 5% may migrate? Yeah, I mean, if you think about it... Go ahead. Yeah, I can't think about it. Sorry, I've got a delay. Go ahead, Ed. No, no, you go. Go ahead. Yeah, basically. If this works out the way we're planning and the way we hope, the subscription revenue will convert into next year and we'll have some legs in the following several years. So versus, you know, we've had in the past, where most of our revenue was, you know, one year in tenure or less. Hopefully the subscription will have a little bit more of a life cycle to it.
Speaker Change: Yeah.
Speaker Change: Got it.
Speaker Change: Go ahead Ed.
Speaker Change: Goodbye.
Speaker Change: Sure I've got a delay go ahead Ed.
Speaker Change: Alright.
Speaker Change: Yeah basically.
Speaker Change: If this works out the way, we're planning and the way we hope.
Speaker Change: The.
Speaker Change: The subscription revenue will convert into next year, and we will have some legs in the following several years.
Speaker Change: So versus what we had in the past where most of our revenue was a one year tenure or worse.
Speaker Change: Hopefully subscription will will give them a little bit more of a lifecycle to it.
Unknown Shareholder: We're hoping the current percentage will continue to grow and expand, and it will smooth out our revenue recognition over time.
Speaker Change: So we're hoping.
Speaker Change: Percentage will continue to grow and expand and it will smooth out our revenue recognition over time.
Stephen Silvestro: So as we think about 20, you can think about. David, you can think about it in terms of all of the DAP business and the audience business. So all the components of data, both from the legacy medics business that's producing audiences, as well as the data business coming out of DAP. So those two components. are what have the potential for subscription-based. So that's the component that we can push on. The transactional components of the business will continue to be transactional over time. And so that's kind of a target. That'd be the high water. And what you're seeing now is early signs of good progress against the conversion and prosecuting that work, but we still have a lot of work to do on that.
Speaker Change: So as we think about 'twenty you can think about.
David Grossman: David you can think about it in terms of all of the DAP business and the audience business. So all of the components of data both from the legacy <unk> business, that's producing audiences as well as the data business coming out of that so those two components.
Speaker Change: Or what have the potential for subscription based revenue.
Speaker Change: So that's that's the component that we can push on the transactional components of the business, we'll continue to be transactional overtime and so that's that's kind of a target that would be the high watermark.
Speaker Change: And what Youre seeing what Youre seeing now is early signs are good progress against the conversion prosecuting that work, but we still have a lot of work to do on that we did want to report out on it because it's substantial considering that we've been at it for a little bit more than a quarter and made some good head good good progress on it but lots more work to do there are lots of them.
Unknown Shareholder: We did want to report out on it because it's substantial, considering that we've been at it for a little bit more than a quarter and made some good progress. Good progress on it, but lots more work. So thanks for that, Steve.
Speaker Change: Chop.
Speaker Change: So thanks for that so can you just remind us how.
Unknown Shareholder: Can you just remind us how, what percentage of revenue is represented by the database? We don't break it out that way. We were breaking out sort of the DAP and CORE stuff for a bit.
Speaker Change: What percentage of revenue is represented by the data business.
Speaker Change: We don't break it out that way, we were breaking out sort of adapt and core.
Speaker Change: Stuff for a bit that we can we can circle back and give you a little bit better view, we haven't broken it out to date that way.
Unknown Shareholder: We can we can circle back and give you a little bit better view. We haven't broken it out. Got it.
Speaker Change: Got it.
Unknown Shareholder: And then just one last one for me. I know it's a modest, you know, kind of decline, but anything to call out on what may be impacting the NRR, you know, sequentially? Yeah, I can I can take that question.
Speaker Change: And just one last one for me I know, it's a modest.
Speaker Change: Kind of decline, but anything to call out on what may be impacting the MLR.
Speaker Change: Partially.
Speaker Change: Yeah, I can take that question so that when we talked about this on our last call. So it's a trailing 12 month look.
Edward Stelmakh: So that we talked about this on the last call. So that it's a trailing 12 month look. So now we're running into trailing 12-month comps year-over-year that have the benefit of Medix, the acquisition. And so as you go more into time, there's just more Medix revenue on the year-over-year comp. So it becomes less favorable of a year-over-year comp on NRR.
Speaker Change: So.
Speaker Change: Now, we're running into a trailing 12 month comps year over year that have the.
Speaker Change: The benefit of medics the acquisition and so as you go more into time Theres, just more medics revenue on a year over year comp such becomes less favorable but year over year top of NR. That's all.
Unknown Shareholder: That's all. All right guys, nice job. Thanks very much. Thanks, David. Great to talk to you.
Speaker Change: Got it alright.
Speaker Change: Alright, guys.
Speaker Change: Thanks very much thanks.
Speaker Change: Thanks, David there great to talk to you.
Unknown Shareholder: Thank you.
Speaker Change: Thank you. The next question comes from Richard Baldry with Roth Capital. Please go ahead.
Richard Baldry: The next question comes from Richard Baldry with Roth Capital. Please go ahead. Thanks, just back to the NRR. I'm sort of curious, is there any further headwinds in the second half? And the reason I ask is the top line guide at the high end would be 15% growth, and your NRR is 114. So essentially accounts for the upper end of revenue guide. So I just want to make sure I know there's nothing else as an incremental headwind in the second half. Well, no, NRR, like we said on the last call, you know, back of the envelope would end up around 100 by the end of the year, right, based on our guidance.
Richard Baldry: Thanks, Jim.
Speaker Change: Back to the NRI I'm sort of curious is there any.
Speaker Change: Further headwinds in the second half and the reason I ask is the topline guide at the high end would be 15% growth in your NII was 114 phone essentially accounts for the upper end of revenue guidance. So I just want make sure I know, there's nothing else is an incremental headwind in the second half.
Speaker Change: Well no.
Speaker Change: And our our like we said on the last call you know back of the envelope would end up around 100 by the end of the year right based on our guidance so call it 5% to 15% of our business every year comes from.
Stephen Silvestro: So call it 5 to 15% of our business every year comes from new logos. And so, obviously, NRR, the max when we grow, if you went through 15%, would be an NRR of 115%. So, if 5 to 10% or 5 to 15% of our business comes from new logos, by the end of the year, you'll be about 100%.
Speaker Change: Logos.
Speaker Change: And so obviously in our or the the Max when we grow if you weren't grew 15% would be in an IRR of 115%. So it's 5% to 10% at 515% of our business comes from new logos by the end of the year, you'll be about 100%. So we made.
Stephen Silvestro: So we made the acquisition in October of 2023 of Medix. So it's a trailing 12 month look back comparison. So even at the first quarter of 2024, the trailing 12 months there, you know, we we didn't have a full year of Medix as a as a reported entity. Got it.
Speaker Change: The acquisition in October of 2023.
Speaker Change: Medics, though it's a trailing 12 month look back comparison, so even at the first quarter of 2020 for the trailing 12 months there.
Speaker Change: We didn't have a full year of medics as a as a reported entity.
Got it.
Edward Stelmakh: When we look at the OPEX side now, you know, to come down pretty substantially. So is this a pretty good run rate on a go forward basis? How do you think about your leverage on OPEX as the top line grows? Yeah, I can take it. I think that about 5 million out of it last year, as you know, about the fourth quarter, right? So we're in a good I think run right now. We don't really need to take more out, and I don't think we'll need to add more, so I think what we've demonstrated here is How do you feel for that?
Speaker Change: We look at the Opex side now.
Speaker Change: Come down pretty substantially so is this a pretty good run rate on a go forward basis, how do you think about your leverage on the Opex as the topline grows.
Speaker Change: Yes, I can take yes.
Speaker Change: We have about $5 million out of it last year as you know about the fourth quarter right. So we're at a good I think run rate now.
Speaker Change: We don't really need to take more out and I don't think we'll need to add more so I think what we've demonstrated here as well.
Speaker Change: Great.
Speaker Change: Okay.
Speaker Change: Do you feel for that.
Unknown Shareholder: Yeah, that's Richard. I think Steve was breaking up a bit on my end. Yeah, it broke up a little at the end, I think I got.
Speaker Change: So again this is Richard I think Steve was breaking up a bit demand.
Speaker Change: Yeah, It broke up a little off because I think I got.
Unknown Shareholder: I'm curious.
Speaker Change: I'm curious.
Unknown Shareholder: And in terms of new business, you talk about sort of how our P season played out on the DTC side, and how you view sort of new wins on that side of the table. And then you gave the number last quarter of paying DAP deals was 48 versus 24.
Speaker Change: And in terms of new business, you can talk about sort of how RFP season played out on the DTC side, and how you view sort of new wins on that side of the table and then.
Speaker Change: You gave the number last quarter of paying tap deals was 48 versus 24, starting the year I'm not sure if you're willing to update that number to talk generically about new wins in the <unk>.
Stephen Silvestro: Starting the year, I'm not sure if you're willing to update that number, just talk generically about new wins in the DAP sign. Yeah, I can take the DAP question. So we're just given it such a large percent of our business right now, for competitive purposes, we're no longer breaking out like how many deals we're getting or anything like that, that was just really to show initial adoption. And then I mean, Steve can give a little bit more detail on the DTC side of the business, but both parts of the business, you know, have been performing well this year and are contributing to our increased guidance.
Speaker Change: Yeah, I can take the gap.
Speaker Change: Question so.
Speaker Change: And just given it's such a large percent of our business right now from a for competitive purposes, we're no longer breaking out like how many deals we're getting or anything like that that was just really to show initial adoption.
Speaker Change: And then Steve can give a little bit more detail on the DTC side of the business, but both parts of the business.
Speaker Change: It had been performing well this year and are contributing to our increased guidance.
Stephen Silvestro: Yeah, just just to sort of double down on that, which hopefully you can hear me. Okay, I'm not sure why the signal was cutting there for a second. But GAP continues to perform at the same speed as it was before. So everything's sort of in line. As Andy said, we're not going to count the number of deals just because competitively, we're not wanting to disclose that. But in addition to that, I think what we can safely say is we've seen a strong DTC recovery in the fourth quarter and into the first quarter of this year.
Speaker Change: Yeah, just just to sort of double down on that which hopefully you can hear me, okay I'm not sure what a signal is cutting here for a second but gap continues to perform at the same speed as it was before so everything sort of in line as Andy said, we're not going to count the number of deals just because competitively we're not wanting to disclose that but in addition to that I think what we can safely say is we've seen a strong.
Speaker Change: DTC recovery in the fourth quarter and into the first quarter of this year and we anticipate that that acceleration will continue for the DTC component business.
Stephen Silvestro: And we anticipate that that acceleration will continue for the DTC component of the business.
Unknown Shareholder: Thanks.
Speaker Change: Oh.
Unknown Shareholder: Great, thanks. Thank you.
Alright. Thanks.
Speaker Change: Okay.
Maxwell Michaelis: The next question comes from Maxwell Michaelis with Lake Street Capital Markets. Please go ahead. Hey guys, thanks for taking my question and great job of the quarter. When we look at Q2, you know we're about halfway through now, should we expect typical seasonality Q1 to Q2 pretty much flatter? You've seen demand here, more outsized demand here in Q2, and we should expect sequential growth. I know you guys didn't give quarterly guidance, but maybe directionally you can help. Thanks. Yeah, sure. Happy to. Happy to do it, Max. And thanks.
Speaker Change: Thank you.
Speaker Change: The next question comes from Maxwell Mccandless with Lake Street Capital markets. Please go ahead.
Maxwell Mccandless: Hey, guys. Thanks for taking my question great job on the quarter. When we look at Q2 now we're about halfway through now.
Maxwell Mccandless: Should we expect typical seasonality Q1 to Q2 pretty much flat are you seen demand here.
Maxwell Mccandless: More outsized demand here in Q2, and we should expect sequential growth I know you guys don't give quarterly guidance, but maybe directionally you can help thanks for taking my question.
Maxwell Mccandless: Yes, sure happy to happy to do at Maxim. Thanks.
Andrew De Silva: Andy, why don't you take that one? Yeah, we would expect a small, small step up sequentially. You know, first half of the year revenue is typically between 35 and 45% of full year revenue. So I think we're on a pretty good pace compared to historicals. Michaelis, I hope that answers your question. Yep, that was awesome. Great. Thank you.
Andy: Andy why don't you take that one.
Andy: Yeah, we would expect a small small step up sequentially.
Andy: You know first half of the year revenue is typically between 35 and 45% of full year revenue.
Andy: Yes.
Andy: Yeah.
Andy: We're in a pretty good pace compared to historical.
Andy: Okay.
Andy: Good question.
Andy: Question.
Yes.
Andy: Okay great.
Andy: Thank you.
Constantine Davides: The next question comes from Constantine Davides with Citizen. Please go ahead. Thanks. I just wanted to maybe drill into the pipeline a little bit more and kind of what you're seeing there. Is it bigger on an absolute basis year over year? Maybe talk a little bit about, you know, are your win rates changing relative to what they were last year? And then maybe just some commentary on average deal size and if you're having any success with double-barreled sales. I know I just threw a lot at you, but I'm just kind of curious if we can get a little more color on kind of what's in the pipe.
Speaker Change: The next question comes from Constantine David is the citizen. Please go ahead.
Andy: Thanks.
David Grossman: I just wanted to maybe drill into the pipeline a little bit more in.
Andy: What youre seeing there is it bigger.
Andy: On an absolute basis year over year, maybe talk a little bit about you know where your win rates changing relative to what they were last year and then.
Andy: Maybe just some commentary on.
Andy: Average deal size, and if you're having any success with.
Andy: Double barrel sales I know I just threw a lot at you, but just kind of curious if we can get a little more color on kind of what's in the pipe.
Stephen Silvestro: Hey, Constantine. Good to hear from you.
Speaker Change: Hey, Thomson's team did good to hear from you.
Stephen Silvestro: I'll give the first couple of answers and then ask Andy and then chime in. But basically, Pipeline continues to grow at a steady rate. We feel confident with where it is. We continue to convert, I think, in a good chase, but our conversion ratio has become better. We're finding that we're winning, particularly with the data and subscriptive component of our business. We're winning more as our audience quality's improved and our data's been better, so that's been helpful. We've seen those pieces of the business go. And then Andy, Ed, feel free to chime in on the other components, but I just wanted to call those out.
Speaker Change: I'll give the first couple of answers and then ask Andy to chime in but basically pipeline continues to grow at a steady rate, we feel confident with where it is.
Speaker Change: We continue to convert I think at a good pace, but our conversion ratio has become better and we're finding that we're winning particularly with the data and subscription component of our business, we're winning more as our audience quality has improved and our data has been better. So that's been helpful and we've seen those pieces of the business go.
Andy: And then Andy add feel free to chime in on the other components.
Andy: I just wanted to call those out in sorry, guys for the quality of the audio notes not sure what's going on on the cost side, but Andy add anything else to add in there for Constantine.
Edward Stelmakh: And sorry, guys, for the quality of the audio. Not sure what's going on on the call side, but Andy, Ed, anything else to add in there for Constantine? Yeah, we're not going to break out average deal size or anything like that anymore, but I think I think Steve, Steve hit the nail on the head.
Andy: Yes.
Speaker Change: We're not going to break out average deal size or anything like that anymore, but I think I think Steve.
Andy: Steve hit the nail on the head.
Andy: Yeah.
Constantine Davides: Okay, and then just one more follow up on the subscription. Are those other subscription deals multi year they just sort of one year evergreen arrangement? Right now they're one year evergreen arrangements.
Speaker Change: Okay, and then just one more follow up on the subscription are those.
Speaker Change: The subscription multiyear or they just sort of one year evergreen arrangements.
Speaker Change: Right now, they're one year evergreen arrangements the goal would be to get them to multi year status, but that's kind of difficult to do Constantine in this space market.
Stephen Silvestro: The goal would be to get them to multi year status, but that's kind of difficult to do Constantine in this space because marketing basically ascribes dollars on a yearly and an annual basis based on previous year's full year performance. So it's gonna be difficult to do three year, four year, five year So for right now, we're looking at 12 months and scaling as many of those as we can.
Speaker Change: Market marketing basically ascribes dollars on a yearly and an annual basis based on previous year's full year performance. So it's going to be difficult to do three year four year five year deals. So for right now we're looking at 12 months and scaling as many of those as we can as time progresses. If we can get that data component of the business to two and three year deals.
Constantine Davides: As time progresses, if we can get that data component of the business to two and three year deals, that'll be an enormous win. Understood.
Speaker Change: Will be an enormous win for the business.
Edward Stelmakh: And then I guess this last one for Ed on on the guidance. Should we assume that the high end of revenue correlates with the high end of EBITDA, or, you know, does it sort of... Is there some dynamic here where you're investing more to get to the top end? Just trying to understand that. Thanks.
Speaker Change: Understood.
Speaker Change: And then I guess this last one for Ed.
Speaker Change: On the guidance should we assume that the the high end of revenue correlates with.
Speaker Change: The high end of EBITDA.
Speaker Change: Does it sort of.
Speaker Change: Is there some dynamic here, where you're investing more to get to the top end just trying to understand that thanks.
Edward Stelmakh: Yeah, so it's less about investing more to get to the top end, we feel pretty confident that with the backlog buildup, and some of the tailwinds we're experiencing now, that we will get to that number. Really, the hedge there is around gross margin. The mix of solutions is one thing that is not as predictable. So we're probably betting on a little bit of a more conservative number on the gross margin side of the business with OPEX more or less being kind of set for the year. Thank you.
Speaker Change: Yeah. So it's.
Speaker Change: That's about investing more to get boots, app, and we feel pretty confident that with the backlog build up and some of the tailwind we're experiencing now.
Speaker Change: We will get to that number.
Speaker Change: Really the hedge there is around gross margin.
Speaker Change: And the mix of solutions is walking dead.
Speaker Change: It's not as predictable.
Speaker Change: But we're probably betting on a little bit of a more conservative number when our gross margin side of the business with opex more or less been.
Speaker Change: Just kind of set for the year.
Speaker Change: Okay.
Speaker Change: Thank you.
Jeff Garro: The next question comes from Jeff Garro with Stephens. Please go ahead. Yeah, good afternoon. Thanks for taking the questions. I wanted to follow up on the visibility topic and the roughly remaining 20% of revenue that you need to land for the year. Could you discuss what needs to be landed in terms of renewals or upsells or adding new logos? Thanks.
Speaker Change: The next question comes from Jeff Garro with Stephens. Please go ahead.
Jeff Garro: Yeah. Good afternoon. Thanks for taking the questions I wanted to follow up on the visibility topic and the roughly remaining 20% of revenue that you need to to land for the year could you discuss what needs to be landed in terms of renewals or upsells or adding new logos.
Stephen Silvestro: I'm happy to take that one and then let Ed and Andy chime in as well, and thanks for the question, Jeff. So as Ed said, we've got greater than 80% contracted revenue on the backlog for the full year, so that gives us good visibility into where we're headed. Basically, for what we need to do for that component, the delta is really just delivery over time, which will happen organically as we prosecute these programs. The delta between what we've contracted and where we need to go is sort of the difference between the guidance and the visibility that we've got, or the top end of that guidance and the visibility that we've got.
Jeff Garro: Yeah, I'm happy to happy to take that one and then let.
Speaker Change: Ed Mandy chime in as well, but and thanks for the question Geoff So as Ed said, we've got greater than 80% contracted revenue on the backlog for the full year. So that gives us good visibility into where were headed basically for what we need to do for that component. The delta is really just delivery over time.
Which will happen organically as we as we prosecute these programs the delta between what we've contracted and where we need to go is sort of the difference between the guidance and the visibility that we've got.
Speaker Change: The top end of that guidance and the visibility that we've got and so what needs to happen. There is just conversion of the pipeline very simple pipeline like we.
Stephen Silvestro: And so what needs to happen there is just conversion of the pipeline. Very simple.
Andrew De Silva: And the pipeline, like I responded to Constantine, is very Addie, Andy, anything else you want to chime in on? No, I think you got the gist of it. I would say again, you know, pipeline is building constantly with the quality of the pipeline. We're staying on top of, you know, operational execution, as I said, at the beginning of the year. So there's definitely a very strong hyper focus on making sure that we have conversion that takes place within the quarter to drive that revenue earlier. So we feel pretty confident that we'll be able to get that remaining 20% and some this year.
Speaker Change: Respond to Constantine is very healthy right now so I think we're feeling confident in that.
Andy: Andy anything else you'd want to chime in on.
Speaker Change: Alright, then you've got the gist of it I would just say again pipeline is building a passenger what with the quality of the pipeline.
Andy: We're staying on top of you know.
Speaker Change: Are we supposed to do some as I said at the beginning of the year.
Speaker Change: So there's definitely a very strong.
Speaker Change: We're focused on making sure that we are converting.
Speaker Change: And that takes place within the quarter to drive that revenue earlier.
Speaker Change: Are you confident that we'll be able to get that remaining 20%.
Speaker Change: And then some mix.
Speaker Change: This year.
Unknown Shareholder: Understood. I appreciate that.
Speaker Change: Understood appreciate that and one more for me maybe back to the topic of gross margins and the mix involved there.
Jeff Garro: And one more for me, maybe back to the topic of gross margins and the mix involved there.
Edward Stelmakh: I was hoping you could help us understand a little bit further the progress you've made on conversion to data subscriptions and the benefits there. And the comment about the gross margin percentage in the quarter being down a little bit year over year from an increase in managed services. So maybe it's really around the appetite for for customers to to kind of rebound demand for that managed service offering versus it going one way towards data subscriptions. Thanks. Yeah. Thanks, Jeff. Thanks, everyone. Go ahead.
Speaker Change: I was hoping you could help us understand a little bit further the the progress you've made on conversion to data subscriptions and the benefits there.
Speaker Change: And the comment about the gross margin percent in the quarter being down a little bit year over year from an increase in managed services. So maybe it's really around the appetite for for our customers to kind of rebound.
Speaker Change: Demand for that managed service offering versus it going one way towards data subscriptions. Thanks.
Speaker Change: Yes.
Speaker Change: Yeah.
Go ahead Ed.
Stephen Silvestro: Yeah, look, I mean, we have a portfolio and now that diversified enough that was built around meeting and exceeding customer needs. In some cases, we'll need to take some some business that is lower margin. But really, the focus for us as a company is to continue to build out the higher margin side of the business. And that's exactly what's happening. Our current gross margin profile is right there where it needs to be. And we feel like as the year goes on, we should see more and more of the expansion take place. And certainly, as part of the Rule of 40, kind of ramp up margin expansion as part of the equation.
Speaker Change: We have a portfolio now that's diversified enough that was built around meeting and exceeding customer needs.
Speaker Change: In some cases when you speak some some business that has a lower margin.
Speaker Change: But really the focus for us as a company is to become a you could build out the higher margin side of the business.
Speaker Change: And that's exactly what's happening currently.
Speaker Change: Gross margin profile is right, there where it needs to be.
Speaker Change: And we feel like as the year goes on we should see more and more of an expansion decrease uncertainties.
Speaker Change: As part of the rule of 40.
Speaker Change: Kind of a ramp up.
Speaker Change: Margin expansion is part of the agreement.
Stephen Silvestro: Jeff, I'd also add to that, you know, part of what we're trying to capitalize on is a flywheel effect within the business, right? So in order for us to be able to do that, we've got to grow that subscriptive data component of the business, which as Ed said, it will, you know, positively impact the gross margin over time, there's no rev share with that, it's intellectual property that we own. But in addition to that, it will unlock the ability to distribute more messages and transactions across the entire network as we plug So we're laser focused on driving those audiences and that data as a key component of our business.
Speaker Change: Jeff I'd also add to that part of what we're trying to capitalize on as a flywheel effect within the business right. So in order for us to be able to do that we've got to grow that subscription data component of the business, which as Ed said it will positively impact the gross margin over time, there is no rev share with.
Speaker Change: Its intellectual property that we own but in addition to that it will unlock the ability to distribute more messages and transactions across the entire network as we plug into that and so we're laser focused on driving those audiences in that data.
Speaker Change: As a key component of our business and you'll expect to hear more updates from us on that as we go.
Unknown Shareholder: So you'll expect to hear more updates from us.
Unknown Shareholder: Great, thanks again for taking the questions. Great questions. Thank you.
Speaker Change: Great. Thanks, again for taking the questions.
Speaker Change: Yeah, great questions. Thank you.
Speaker Change: Okay.
Speaker Change: Thank you.
Unknown Shareholder: This concludes our question and answer session.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Mr. <unk> for any closing remarks.
Stephen Silvestro: I would like to turn the conference back over to Mr. Silvestro for any closing remarks. Yep, thank you guys.
Speaker Change: Yes. Thank you guys no closing remarks, we can go ahead and close out the call.
Unknown Shareholder: No closing remarks. We can go ahead and close out the call.
Unknown Shareholder: Thank you, Mr. Silvestro.
Speaker Change: Thank you Mr <unk>.
Unknown Shareholder: Before we conclude today's call, I would like to provide the company's safe harbor statement that includes caution 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 and the Securities Act of 1933 as amended and Section 21E of the Securities Act of 1934 as amended. This forward-looking statement should not be used to make investment decisions. The words anticipate, estimate, expect, possible, and seeking, and similar expression identify forward-looking statements. They may speak only to the date that such statements are made. Forward-looking statements in this call include statements regarding our growth plans, plans for shareholder value creation, becoming a Rule of Forty company, transitioning to a subscription-based model, achieving our goals to help patients stay present throughout the patient care journey across our integrated HCP and TTC businesses, initiatives being implemented by the new administration, cost management, targeted upselling, estimated 2025 revenue, and adjusted EBITDA range, estimation of total addressable market size, market penetration, technology, investment, growth opportunities, acquisition, and upcoming announcements.
Speaker Change: Before we conclude today's call I would like to provide the company's safe Harbor statement that includes caution regarding forward looking statements made during today's call.
Speaker Change: Statements made by management during todays call may contain forward looking statements within the definition of section 27, a and the Securities Act of 1933 as amended and section 21 E of Securities Act of 934 as amended.
Speaker Change: These forward looking statements should not be used to make investment decisions now.
Speaker Change: The words anticipate.
Speaker Change: Estimate expect.
Speaker Change: Possible and seeking and similar exploration 95 forward looking statements.
Speaker Change: Dave May speak only to the date that such statements are made.
Speaker Change: Forward looking statements and this call include statements regarding our growth plans plans.
Speaker Change: <unk> shareholder value creation, becoming a rule of 40 company transitioning to a subscription based model achieving our goals to help patients stay present throughout the patient schedule any across.
Speaker Change: Integrated H C B and D D C businesses initiatives being implemented by the New administration.
Speaker Change: Cost management.
Targeted Upselling estimated 20 to 25 revenue and adjusted EBITDA range estimation of total addressable market size.
Speaker Change: Market penetration technology investment growth opportunities acquisition and upcoming announcements.
Unknown Shareholder: Forward-looking statements also include the management's expectations for the rest of the year.
Speaker Change: Forward looking statements also include the management's expectations for the rest of the year.
Unknown Shareholder: 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 risk 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 this forward-looking state. The risk and uncertainties to which forward-looking statements are subject to include, but are not limited to, the effects of government regulation, competition, dependence on a concentrated group of customers, cybersecurity incidents that could disrupt operations, the ability to keep pace with growing and evolving technology, the ability to maintain contracts with electronic prescription platforms and electronic health records networks, and other material risks.
Speaker Change: The company undertakes no obligation to publicly update or revise any forward looking statement.
Speaker Change: Whether because of new information future events or otherwise.
Speaker Change: Forward looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified.
Speaker Change: Future events and actual results could differ materially from those set forth in contemplated by or underlying these forward looking statements.
Speaker Change: These risks and uncertainties to which forward looking statements are subject to include but are not limited to the effects of government regulation competition.
Speaker Change: Pendants on.
Speaker Change: Concentrated group of customers.
Speaker Change: Cybersecurity incident that could disrupt operations the ability to keep pace with growing and evolving technology.
Speaker Change: Our ability to maintain contracts with electronic prescription platforms and electronic health record close networks and other material risks are.
Unknown Shareholder: Risks and uncertainties to which forward-looking statements are subject could affect business and financial results, are included in the company's annual report on Form 10-K for the year-end, December 31, 2024, and in other filings the company has made and may take with the SEC in the future. These filings are available on the company's website and on the SEC website at sec.gov.
Speaker Change: And answered any of these to which forward looking statements are subject.
Speaker Change: Business and financial results are included in the company's annual report on Form 10-K for the year end December 31st when you do any full and in other filings. The company has made and may take with them if they see in the future.
Speaker Change: These filings when.
Speaker Change: Available on the company's website and on the S. E C website at ACC Dod G O V.
Unknown Shareholder: Before we end today's conference, I would like to remind everyone that an audio recording of this conference call will be available for replay starting later this evening, running through for a year on the investor section of the company's website. Thank you for joining us today.
Speaker Change: Before we end today's conference I would like to remind everyone that an audio recording of this conference call will be available for replay. Starting later this evening running through for you on the Investor section of the company's website.
Speaker Change: You you for joining US today. This concludes today's conference call you may now disconnect your lines.
Unknown Shareholder: This concludes today's conference call. You may now disconnect your lines. © The Ultimate Parody Site! Copyright © 2020, New Thinking Allowed Foundation Copyright © 2020, New Thinking Allowed Foundation Copyright © 2020, New Thinking Allowed Foundation © The Ultimate Parody Site!
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