OptimizeRx (OPRX) 6 Nov 232023 Q3 Earnings call transcript

Good morning, everyone, and thank you for joining OptimizeRx Third Quarter Fiscal 2023 Earnings Discussion. With us today is the Chief Executive Officer of OptimizeRx, William Febbo. He is joined by Chief Financial Officer, Ed Stelmakh; President, Steve Silvestro; General Counsel, Marion Odence-Ford; and Senior Vice President of Corporate Finance, Andrew D'Silva.

At the conclusion of today's earnings call, I will provide some important cautions regarding the forward-looking statements made by the management during today's call. remind be today's webcast available to recorded is only. like will and for would everyone call that being I replay via Investors Instructions and website. today's in section the are company's of press the included in release

I CEO, Febbo. OptimizeRx Now over go William like the Sir, to call would to ahead. please turn

turning joining third QX exciting an has earnings Thank point OptimizeRx. I'm call. operational for afternoon. Good our pleased you been fiscal for quarter to that and note

in a came than release, to company. the quarter quarter's with noted growing initially for As today's revenue results expected, in press $XX.X financial million, record the better X% year-over-year which is third

The improvement sign at of of deals, our said, led All our clear messaging, was total of and original RWD a XXXX XX, in ahead expectation the driven approximately stands strong growth deals XX client our now enhancement. organic by DAAP for adoption. by year

million We're but looking also is XXXX. $XX for $X go for guidance in an come $XX through will into million and acquisition 'XX, between come guidance revenue preliminary of OptimizeRx million between and to for million, million. the is $X of come the EBITDA adjusted XXXX to $XX guidance and XXXX business, introducing increasing through revenue expected to our with expected $XX more to we're remainder million detail, and Medicx. Ed for now our

an adjusted of believe revenue least margin our million, will EBITDA we XXXX, with least at For XX%. be at $XXX

the as prescribers one has pharma, scalable available years, marketers. early digital our this results have and Before mission. recent advancing effort have another. has which feat into shifting shift, we the with well the of permanently both pharmaceutical team created as to through engage easy our industry the OptimizeRx way patients altered for their go adoption the I and continuous advancements to no of tireless to industry changes commitment thank as further, Directionally, sands related about one come want of OptimizeRx most to the In been solutions the efforts put

With end normalize. and encouraging had initial we into companies headwinds the our year into pilot to begun said, clients very year macro XXXX. the that that that The we're that seeing started and have programs are back the space and, going Moreover, newly completing had being identified entered over programs heading our momentum solutions with XX have last these are last XX the drive expected, to learned we of beginning measurement spend not to way. that scalable these as are months the of now

is here larger, strong best partner during relevant momentum of anticipated, we the client seen their stickier strategically by ahead more RWE making more half and nature, us is are what deals, a targeted, Progress XXXX. our pacing base. which evidenced DAP of the second These with we've by or

engagement HCP our display along CRM alerts, and In September, a the significant This directed a and AI our how capability health provide solution unites marketing. enhancement to platform. of our efficiencies sales directly new engagement channel we culmination platform new on more now to transforming traditional of learning subsequently announcement omnichannel years digital unveiled media AI-driven to This platform pharmaceutical with of care to expands was cases, point web use HCP for care comprehensive which engagement social way. customer OptimizeRx's technology into include the AI create integrate The forces. patent-pending

our via channels our and in electric penetration multiple HCPs health to over network full digital the real EHRs, new of major the HCP Audience X for Dynamic through of scaling omnichannel across clients With DAAP, Platform solution development, market across enabling capability of physician new million engagement with RWD and our care OptimizeRx or the the to strategy, mark has Engagement of telehealth data time renamed platforms. and land-and-expand former records, media AI platform, company's Activation this DAAP outreach proprietary the set. gain maximum short, a merger The e-prescribing network advances point

DAAP best helps clients for suited our their find medications. patients

studies, in In is a script multiple today's had script patients, behaviors. one the this driven in physicians high the a top impact market. lift AI-identified medication challenges HCP of specialty noted recent reported early company independent including seeing historically among relevant writing As XX% engagement, who

who this and our In cross-functionally business us DAP This exposed visibility become is to strongest when success currently other HCP the their customers. decisions being awareness alignment made. words, across with grow larger XXX% patient is rate. we quickly and moving quickly of advocates, clients have our and brands, Customers we and our our increasing by up decision-maker renewal enabling have hierarchy are helped clinical been

as Given numerous technological are we showing growth against the are during acquisition executing due recent last Medicx with and planned enhancement, the traction the believe seeing and engagement, moving environment lines the timing. customer are we're we of on the perfect improving and out DAAP macro significant operational Both forward period. diligence mapped was month's business synergies we client seeing

proven, care but online display, HCPs we which connected expands most the while the well as transforming as marketing into TV, And technology channels streaming health platform reach our comprehensive mobile, nation. audio, we adding in not digital among various includes multiple and to The profitable. such haven't others. and beyond further omnichannel transaction channels video organization is Medicx our patients are only as accessed previously,

with you brands do marketing cross-selling and strategy and a believe XX% our we pharma the HCP land-and-expand over significant enables combination highlighted through OPRX, to team. -- but the upselling seamlessly for brand's this where manufacturer, of companies and patient revenue, in by customer HCPs. when OptimizeRx not the pharmaceutical significant has month, that on is base patient the this focused similar unlock As couple within last focused generated marketing overlap respective aligns that I historically particular Medicx of of largest fact The our connecting world's opportunities, the support this it. provides brands majority strongly on when

first combined a our X secured the other manufacturer with top success deals team cross-sell have sight. and seen and in pharma deal numerous already We've with

Medicx's executive with Commercial to is commercial the to directly lead we He team addition the and new and With Greco, Officer. will Chief expanded our the have execution of of President, now strategy Silvestro. Steve closing company for report Medicx Theresa our who the acquisition,

the has in a this style our will Steve and to his always organizationally X years. a has for which result, Steve's testament and positioning customers partners, Steve has over to natural been and, transformative and strategically As strategy transition my of promoted and is a eyes, President our commitment all to us aspects This been lead very company. with both business the leadership to extended corporate management. last will daily be go-to-market

we're stages update I'd Finally, the remaining cuts against ahead objective. final and give I'm to the an already our of like our our schedule have over happy we and in planned cost have half to are cost-cutting report of completed measures. reductions, identified on and executing

While benefit of will 'XX, XXXX. will benefits these P&L some cuts seen of this our be in in the cost seen be in full

Stelmakh, like call well turned financial through believe the XXXX. momentum over significant the We going to the CFO, since as year, Ed turn second the Ed? have for us details that, a with the we corner into who as half Medicx I'd to and QX the And of of our incredible walk transaction. will start

Will. Thanks,

for third press XXXX. information results XX-Q. our of through downloaded from may copy Relations was additional Investor quarter ended section of our and the the issued calls, our all release website, be XX, obtained September A with our be viewing the As can forthcoming with

decreased million the September an $XX.X channel improvement mix. reflects Third September encouraged XXXX, on of quarter XXXX. difference the was XXXX. $XX.X from slightly gross margins the in business quarter-over-quarter with the The in period by XX, to same from [indiscernible] gross in DAAP. increase XX% million, margin in solution quarter ended and quarter we our increase X% the We're XX, XX.X% associated in partner being the revenue generated ended Meanwhile, and

Our million ended XXXX. loss We operating share months remained XXXX, X million consistent net fully months to a expenses $X.X compared XX, period X in had $X.X during and the loss net basic or XXXX. the $X.XX $XX.X of for at of year-over-year million for and same came September in September a relatively diluted ended XX, per as the

flat income to came diluted share fully of year-over-year. million share fully was On diluted as same XXXX or per adjusted $X.XX and $X.X net $X.X the the in non-GAAP for quarter net was EBITDA compared million income period. a ago per the or our third basis, in of effectively outstanding $X.XX non-GAAP for year quarter million $X.X Meanwhile, at

which million positive to of majority due Operating common balance strong a on and ended totaling cash $X.X shares a the cash short-term investments repurchase stock XX, XX, was million program, the XXX,XXX we share December The quarter $XX.X came on We to to bought and compared quarter. in for September million. the of $X.X our million decline at back flow XXXX. with sheet XXXX, $XX.X for

the We quarter's $XX we and well as against execute have to to we're $XX was of million The well operational million. was Medicx through cash Subsequent end, the our sheet funded currently cash and for as debt funded million our $XX.X million transaction believe $XX approximately portion balance bank, on in acquired goals. financing. in over the

million and $X now adjusted our We between increasing long-term and to an million. come to expecting for remain million are EBITDA confident and with are million, in revenue XXXX outlook happy $XX and between growth our we're $X guidance say $XX in

our at addition, EBITDA preliminary of to XXXX be million, least margin at XX%. guidance with In least expected is an revenue for adjusted $XXX

are prop We to the year through but have early indicators combined as encouraging the will our get we this bring RFP we once market. value more details season, very

revenue stabilized started XXX% improvements their top of that the XX for to have as turn per the work Average of million have have quarter. to with XXXX, let's which COVID-XX to prior prior the Now top XX stands begins. to compared at to largely third companies don't XX when continue the $X.X and sales show the the majority KPIs now world of largest of in quarter top manufacturer we the pharma XX and

came at in topping QX Net we posted per the is up XX%, in showing XXXX. XXX,XXX revenue at from XX% $XXX,XXX, rate QX revenue XXXX. Meanwhile, retention improvement FTE in

and It's in rate improvement revenue continued $XXX,XXX. growth Medicx, by as in mentioning return encouraged XXX% and also the leader of our challenges worth retention as net a average revenue move that we profitability our space. and We're market FTE a KPIs to external per with fast of an

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

to Now Thank Q&A. you, Ed. Operator? let's move

Instructions] Ladies conducting [Operator a from Thank now RBC with we Capital is be question-and-answer gentlemen, and you. session. Our first Markets. question will Dodge Sean

for Sean. Congrats Kelliher strong This on the Thomas is on results.

of outlook, range? embedded of contribution then revenue expected kind growth you anything of around from bridge to Medicx, kind share generally, the the On low on any of a that any general you within the somewhat from able looking assumptions can preliminary end or the all 'XX. sort And Are 'XX just that? share that for rate of maybe of are visibility

your You're Not talking question? about 'XX? 'XX, that's Tom,

Preliminary... Yes.

we Yes. said integration up of We It's That's XX%. to little weeks all up few of ago. XXX a to just a early. EBITDA why did full the and

more, season early next encouraged. year. But hands year sense also our in with open get how to we'll year do contracts end swing, to like to full of want feel around going fairly So that feel and in that get is the able I year. RFP next be the a the into

add anything to to want you do that? Ed,

around I it. details year, the mean we'll get season, the the I got give through we you RFP think Yes. close visibility. you lot a we No, more once

might on in that all million, have basis? then Understood. still size deals of should quite about an future? think, about combined to How those few $X recently. the guess, million change Right. with think average average sort I a those? how you And kind think announced then hovering of that Are in annualized offering if $X of new sort obviously Medicx we we a And the I of

Tom, is range, the the still are Yes, hey, deals to Steve. that $X this million $X million same in range.

on is, they're the is patients. finding seeing that because scale deals that in been we're more what the simply have place, larger Although are renewing

the finding it's more to patients So tied time. dynamic over audience

time every base. patient existing not renew X, from means the an starting deal, that it's it's starting we So which build happens, from

that So trickle 'XX, communication. northward. up to And what as direct-to-patient into HCP is we Medicx, direct deal march you'll see enables then communication on with in that to the size of does addition addition

transaction HCP other side of and patient. between So that the the it's the

a So time we both communication think almost start as you double it as between over of the could sides. near

Jared Haase from Our next is question William Blair. with

Yes. Will, Jared for performance in for is maybe on after quarter. to you. Nice This the Ryan the last see Daniels. rebound

differences curious versus one, release guess, So in recent the you on to on a just of ended could maybe October. up the question speak number X-part in how the if quarter gave trends. that preliminary some you I the

think ahead that original came of I outlook. in about preliminary $X million you

any love would So specifics to around hear that.

Because are curious nice And more it's a for what hear with then certainly alleviating place are seems what's part it client pharmas to others still in headwinds guys. those some last of second here, calling headwinds bit hear the like you're out for orders. underlying you Maybe improvement? that driving been macro to the space have the of year seeing Would be in that base. with

would to what details any of just side things. So you're specific get that love to seeing kind of on more as

problem. Yes, no Jared,

pulling scale good. towards So done -- in show Really thrilled beyond reaction. we first It and the is question work the more got on on we deals We and which the of attributed quarter quarter. DAAP the many the of coming inside all would, to than end shows the to successfully anticipated around thought there. starting than that done client release, work through getting more

I hitting enough think the where of point we're clients tipping finally understand have that it. value, tried them

We have on renewal a XXX% it. rate

spectacular of powerful way, tool. team, We've out stages acted on up talking information real thought marketing about it this presentation to was a was marketing people the a had people done digested, of spectacular understood on that call examples And job leadership. why presented team is and the it, just on. We real-world in I have a

innovative to was is that recognition also solution, to can't were our one DAAP an that I award, disclose, win which anticipated. we we us that an basically. some clients not will dollars we, internal around got And say able of in-year which

perspective? again, add and And the team to client anything so on And Steve, off hats the gang. from to that a

terms was mean you I covered some still which I issues only would question, seen I the are headwinds was industry, there the of in that stuff in thing of your part headwinds, prevailing market subside. No, although the of second in think the terms say highlighted we've the it. we've of

I more return our thing think punctuation that to probably on measurements around investment to important put fact the here note happened. the have is

we've those get happened been start landscape see competitive definitely of in would we about of that market. half out overpromising, so And underdelivering the to in this to sifted the clear to were the year. start first That

proven delivered the scale real And so that an that's are now back fact into going starting see second based partner. we're think to we the a ROI QX, for key half the in honest on investment and come have a year indication 'XX. And I of and into

say I'd -- to just add headwinds. Yes, the to

on 'XX. the We approval rate normalization back have to seen FDA to

for boat those turnover I lot around can if you were as think it you of Steve the see And where your there economy, you all still firms, have given if the track LinkedIn, general, And are boater, a said, people the things a are lot less. headwinds. headwinds. is jumping headwinds when a rate, you're depends all in and

harbor see that's back. needed. works, we that place. in happy we're come it. We're have where think see we're Really starting It to and good that to a I So in something

Okay. Great.

And the quick good I think things all hear as question the follow-up, a visibility. sort makes one of this nice the well. around execution is sense. marketing on side that related and to to One first just XXXX of

you the you'd the the as moving in $XXX just acquisition how into of is revenue that the next revenue of year? that subscription pro of can think stream? much have time product much recognized us, you've where visibility of we a of sort side, the that made more over million of backlog how and some some kind of value-based business transactional parts on or target, going changes with Given is XXXX, pure with or here so about it a level-set of forma And a

then Well, because is business. been in I we out recurring a transaction business, DAAP will X still We're it think seen scale. are that's and a here. to changing do X and make and us. it's programs related companies difference what There highly what's you've we're the we other tried rate, tactical or be years our the But right? it trued, not that has programs. of are ahead what fees going there revenue works, And or architectural fees And not and to ultimately, SaaS

we reliable, starts the in in And to prove do you. can place, measurement the what you have back client, then feel Once you what place the like that, the at get data say be say, really place. that compliance in basically pharma do we're constantly, to you invest and and

better -- a So model we shift P&L we have in substantial to but don't the and visibility. foresee expect do -- a

into liked again, will. to we Medicx comment on as we of but things the we One go QX, going about it year, not into now, they when the get

had just more they on So year. visibility their

we're well. and better wins in that Given QX, have the we'll QX and in increase of these some DAAP as seeing visibility

the nicely. So X will come together

of you if of overlap. at just and we've land the lot that there's expand, of pretty lots table. gives now team limited as think is opportunity fired seats mentioned, us And in, we've ultimately, fairly size And about got And go up that business, and that. to a

Okay. the hop I'll on Perfect. momentum, And go to and congrats then back the in queue. get ahead

David with from next question Our Stifel. is Grossman

some would of -- back? data when bit into they that the they do help a Maybe little of cadence coming clients come marketplace. come some the you that? were And back made kind what's do I just understand comments back, Can dynamic? better back about how us us experimenting the to perhaps after points other give go drill that to that when with vendors spending want in down

speaking, key there analogously -- was to investment. just Steve. you This said. just experimentation David, some to voice. on return the points, as you mean mean around data good hear your I is I give

clients quarters takes able decision. measure what was, to be couple impact a subsequent for to and them, of effective And so they were, make see how then run a programs, the it

those made are of the reach on a being couple most I decisions and think in One is cases, the execution. things.

The data other the for the on happened. in other is that HCP and back report We components the what measurement. there's-- actually level call ability industry for DTC [indiscernible] are side, to there

what measure is other and really ability effectively competitors' is accurately we're to lacking. hearing Universally, that timely

the for dictates so of because amount measurement have second that's half problematic, And the and the of determines the spend they brands, for first half.

on in marketing deliver the for funds what a problem. competitor would half actually which the a caused of is when it in big to so didn't they first lose the brand they articulated half, And second the year,

And so what that's seeing. the pivot you're that's and back,

the They know so that. XXX% delivered Actually, what renewals very really return And contributed all DAAP because are and the has that a real that true. consistent solution that is addition on they've I earlier. you stated Will have audiences deals our improved tried that's heard investment. return And They investments and the X the seen on with to dynamic, that time. of really know scale of to XX think from rapidly, we've

shifted shift the can half the the the Steve, that satisfied works? funding of that pretty that, how results, funding they you to in you the with year? can dynamic not be sense in they're to that spend So back quickly much Is immediately the to

they return management, the solid deliver spent, deliver to of they pivot -- a strategic dynamic was What or can they programs, I wouldn't over their the to have here's on to a reporting, shift senior is, and they how can't meaning no who and from by investment to measure works. scenario, to here's a buy-up decision can't it they're end we're is it's to able for. here's buy-up. okay? It in ability capability say a not not away be where our year have spend like the so It's Yes. a tell we say caution to was, what know it on reporting back what what whether immediately plugging the up their someone solution going would effective, I the you

middle brand right of And everybody as season. David, in now, you the know, planning is

for budgets. So critical and to 'XX accurate have be success them they're more to as that have building the their it potential couldn't reports project

-- that those happening. migrations So are

could really the back you're now it. it then actually how combined Got And helpful. brand. that mean explain model more little operating mean in a That's second you? just is the a and as question I And if pretty company. decision-making maybe their some I Great. the detail exciting the Medicx decision-making, And opportunities acquisition, at there's sounds to you versus works what like

they for are same So different? we the example, leveraging types Are contracts? of

And the channels they about bit also your and growth and impacts maybe versus business how a going and channels forward. the little compare explain that of their how contrast

Will. be, to Okay. they're where over I'll start across they the social, and first question. content focused we think patient the pharmacies, Steve in content. on digital so rooms, -- in they consumer or target basically think and Yes, on the know I'll I'll this of it So think part then is channels waiting screens exclusively on wherever digitally, hand screens the we the come TV, will right? can because

for pharma. our to us, done a manages us, It's Similar more content The is, process. a effectiveness they spectacular by they've content. measures team they again, their partnerships, on to and like have generated agencies any goes P&L cost that generate And it's consumer-oriented. have then through that job. same not and the model, it the approval It they a like do

pharma enablement, tech of again, play, tech consumers. connect directly So to the true helping

for reliance away It's we'll relevant that's what as next this We subsequent saw a David, get true also in 'XX. is to a been, will And key patent on variable. in we into they out we they have it. okay, enabled, and into know, a process, how as down the the this love of very or the be And can right. working going like connectivity, They we channel that while. kind We business. year measure relative quarters company know the you side on which, really cookie and we've partnership about kind met did it hadn't business. consumer well of know we've that patient on thought, We figured been and

So have a there. competitive we're going we think advantage to

largest dealing to It been a they doctors, X pharma challenge. of you outcome. what messing about very we come messaging together, get to our the higher consumer. hard it's patients. the think when has will we a to the hope So be is will is challenges to But one is with, always the the have. And get be Adherence

You good between get start which is means a communication path just X, to stay and likely therapy. more the patient on the

Steve Let me the hand over it to to relative part. first

of mean saw I that is in the terms of in immediately synergy component. audience jewel we potential the Yes. revenue some business the the was the Medicx, Medicx of sort of creation crown

using very that's ours they're the So subsequently and to they that audiences tech-enabled of methodology to a message. similar target to create want patients

you done basis. meaning dynamic, we've our it's side, it's done time, creation that we've it's is with of on refreshing real as audiences, What on same real-time know, a DAAP, but

bringing audience X methodologies So execution together those business. really disparate creation in with the of the capabilities is unlock

see I so we where that's And it. think

so spend, the X marketing dollars side, Xx that HCP. DTC are generally to On the patient of pharma the

that audience in those the the optimize the the meaning and same individuals between time. the us and structure in real that we're feedback a that patient, heard we're forward, the going or HCP, DTC communicating see closed-loop fashion, to we're now then And on communication to the opportunity and technology encouraged from capability measuring we're to communicating you as on growth a see And say, really, we back we front. so the Will now front, getting by HCP enables again, the transaction

really time it's the business. think an for exciting I So

and the potential really the growth, revenue front front, product marketing the exciting. On it's

brand, the Steve, the versus so And are or just the they to at different? the on be same organization the a decision-makers different are within HCP side clear, infrastructure or DTC

you've got both lead, the report a of Yes. lead owner patient and within brand. P&L to marketing a HCP brand, you've generally the -- so an It's marketing got

seen And mostly got That's albeit from in the would We've so choice But marketers. been you X same . the brand the managers, to The on they've the level, spot. decision front, is you HCP dealing a at been not that's the patient obviously with that on maker the that. a to make conversation. folks now decision as want into delegate engage OptimizeRx that news deliberate it's growth patient good high we've know, front. marketing those

And for the it. more just here, -- Got on cost just side. one to Ed, just one but ask question sorry

Will, you cuts. that 'XX had what I the cost kind think at 'XX? maybe, said in have you Can were versus of tailwind through you mention all halfway we

Yes.

halfway So of Will done year. the to way it cost-cutting through well rest initiatives. pulled We've said, the more out we're as with this than figured be his got and on

projections mean I So it's next year. into baked our all current for

the XX% has or adjusted baked that EBITDA in. So being of guidance better

B. is Chatterji the question line next Neil from Our of with Riley.

Thanks for taking questions. the

should think I But saw a how the think into in Maybe mine post about lot year of were acquisition? in margins we margins, and we of terms gross just quarter. of the just there the already gross asked. improvement 'XX some kind closing out

Yes.

voice. We of DAAP, the has the because of your good should architectural a work some to hear margin. -- had pickup the -- gross Because on the year. So the see impact through nice Neil, which we positive on of we end that upfront,

gross to just at more QX, the we're and great, We'll similar into on very margin need. important to then because, RFP probably to the But we'll out season. which come starting clients when seasonality, started going is a I we would come lot trend. think QX on see you're in to ranges of new our a look growth that going have start I see say at stage this what back, within if And going current do stay be the will we clients it's

to But really in happy with see gross range with drops improvement right we're the the down. margin it and obviously

on should positive it's still have -- early a and -- as on well, we're think impact also still We one. Medics but that

have should terms in how given my terms of next change DAAP business, that Got of year? historic in that that for in mean, it. -- acquisition, just pipeline think the we answered and little would about just Medicx perhaps the line the bit And follow-up, I you is growing Or seasonality a might the with but seasonality?

Yes.

because just to quarter. share you you the have to can percentages percentages seasonality, just operates probably seasonality that let's safer in Andy seasonality. it's think with them to do probably We pharma for but want obviously modeling the by I to the to hope -- Andy, going We're give that records? way. better stick on keep

Yes. be I business half in of and XX% be first the second the of that's cadence follow to the to XX% think but I And the to similar in XX% seem still getting will year. a as fair XX% year, the hands way around roughly, XXXX. would about say the think of half the just business well. fairly acquisition, to of We're our a they will

is question of Street. the Martinuzzi from line Eric next with Lake Our

Yes. out revenue XXXX I to the Medicx wanted for here. tease

talked I on XXXX about revenue it a is that better full from you basis? think it than a acquisition, for What million year in was implied $XX business, Medicx about on growing XX%. the when

Ed and want that take to do you one? Andy,

can it. I take Yes.

$XX projection as full year the we So mean, I said, will from be of to million coming OptimizeRx. $XX million

For QX. Medicx so $XX the $XX $X rest basically new is or million acquisition. million of The impact in million, QX the guidance being to

Right. stand-alone XXXX. XX the for Medicx months I what was was . asking

Oh, standalone?

going -- go Ed. not ahead, We're

guidance. Yes. Yes, we're not doing full

separately. but to basically, what as we going QX entities report I are is X impact the So just mentioned,

company. basically plan we combine forward, as to the X one Going operate and

scale-back meet scalable there regarding the just then -- that's is ROI, of being are or it And why demands where then to And is is situation not the -- the enough the they of a off Okay. a it there brands? turned completely? immeasurable competitors Is are the -- happening? sort secondarily,

mean now. I'll know, us, little bit out both, and of of Connective, network outside you a I there's one. as Yes, meaningful it's marketing Eric. not right a there really take that

it's So really onesie-twosies. just

got that an deciding a to network people Marketers a meaning they is issue, proper with So the go because scale reach reach. of broader physicians. get much have scale are

they deploy every things program, for it simplifies just time a So them.

to in actually an if the don't to terms the they And investment which to then of physician don't have they of found forward. level measurement, metric ability they're have that ability campaigns problem. They the going that a data, justify the that ultimate be success huge running, is deliver

an and middle double that's beginning -- how down year also of partner last the we the able report other providing. to are companies are the on at of do way -- independent and -- brands exercise. going that And findings end that invest us that measurement physician-level to But third-party the back with to really validate luckily, we in to data be accurate, end invested programs to we're on the foresight timely middle to enabled of the had providers these to

here. share the Got the it. And you, close? close housekeeping then balance? then, And was of for Ed, Post post-closing item last one kind Medicx, one count what cash of what post a

Yes.

Number cash going I'm of post-close Andy said, like that we about bank. million $XX balance, have we the on shares, the in one. ask have to So

Just under XX million.

XX million.

Okay.

is question ROTH the from of Partners. next line Our Richard with Capital Baldry

want affecting Sort thought, You acquisitions just brief, of right? of takeaways, it's less your initial run affecting it's schools RFP pretty curious, how about your the probably There's early been things to smooth. noise season. X have

would other The important more a entity. be be, combined looks it bigger, like you'd

any unified sort anecdotal Have So company? will when pharma react are year rates think you up? Do next of you can now that's seeing that the integrated helpful? seen a a of had ASPs, been how step they've your and quick probably evidence ARPU side-by-side you year win come benefit that change, to -- fact real you in the

voice. so connect the to of mean? marketplace. hear deploy to what X came during immediate the we your The Glad is already it's interesting. groundswell got pretty And you're of, in this these together a Great in good hey, a there's minute Rich, on. announcement interest great, guys, season RFP solutions, the coming out, an does and It's of to them it sort Steve. response

think synergy we why and market sees that the acquisition. we I the executed see the

XXXX. those Both mentioned wins a DAAP Will Will we've model side, included programs. into that wins little going across earlier it couple both patient the ecosystem take bit of Medicx scale the HCP having time, But the that, think, to I of had. said side, side the of drive a and the being for messaging these the using connected and the to meaning

and exciting, wins good like. meaningful early a really to what sizable look and think I will telltale XXXX that some So are and

We've level, work. on and at our engaging already right? of cut with with Yes. engage who a adherence patient, help type as just highly them patients Rich, our add this to So SMS And is to someone Will, that. can clients us teeth think

of a bunch lot and boxes, of RFPs check you patient. a So those of that in to have the one process, is boxes

checking X, mind the has for last months just we've patient. that been everything X So included in keep

Now capability do. we we now and anywhere didn't have near this

on So to patients. just said. yes, put of new think thing I I agree with us wanted everything Steve that clients isn't completely a it for our for to

of a wanted point quickly. clarification just really And

XX It's just under million. count. not just under Sorry, I XX on said share million, actually the

that I just let's you somewhere lot of kind of together, metrics to become it? revenues. XX% think put after better does on middle think more become next X the companies And you far revenue XXX, sales-efficient, to top the a call in XX When really the out go talk because of can it, into focus you the out on, X a drive group however X X top equals you attractive, about plus side, about want to you kind and that of more when it to say, about dig market cost effective ARPU more you pharma

I'll and add. Steve Rich. Thanks, can start

way to the we even be there it's of of not effective. still when designed, I the and of strengths. right, as and in one-product going companies, money turnkey with But afford a They're the for top day to because and not models. traditional think of others they're the top able have will because commercial marketing the because lot a DAAP solutions is most XX, XX partners the supply be the

that especially what we'll companies term can medications. have the where And a top is our absolutely XX, XX But can't is there short would so day a specialty focused manufacturers, be on XXX afford. top afford I XX top focus say the model top able brands, to for in the have that effective. work But actually together. can and they names, scale, have they I now put today, team his use solution business us. of their But some that And more it's only with it. clients been but we'll those can't need Steve we highly use that to drive our and

mean to I large from execution top a deployment of X outside you are the and just of actually, the sales an what those force, do DAAP XX, And think the their you to perspective. to model. covered of It's Rich, deals the with efficient cost degree, they give replace DAAP a was idea. just way it. I more decided

you. Thank

no I further hand questions, to J. As would over there William the closing are comments. conference now Febbo, CEO, for

sure Thank XXXX for second thank our I'm and you, positive you, half everyone, our joining momentum into this excitement of XXXX. the and us and see sense you could from operator, morning.

are back. I As internally, we say

our together proprietary As The solutions holistic largely powerful, for are financial with hard-to-find forward our significantly affordability, we in by very operational new firm ground, solve XXXX, pressing onboarding we now everything we and agile on patients into a models. enhanced AI patients into adherence, reach that have brand year enabled a move such planning transitioning subsided having and and as headwinds challenges everyday and solution and focused offer pulls access, for that HCPs. awareness, HCPs

Medicx not profitably the today's and positions The to only are These we thrilled and system, challenges to opportunity. health patients doctors our clients, face expand part. market OptimizeRx are our transaction care our in play

our player further expanding reach as for channels to are digital and also our position We customers. value enhancing marketing pharma in landscape a by meaningfully unlock the leading our

is significant expected accretive and the and On basis, $XXX flow. is combined quickly profitability Moreover, revenue company is contribute per revenue, revenues million earnings to surpass to while Medicx EBITDA growth, a to expected as earnings to generating highly profitable share. cash meaningful and transaction are

the fine-tune again part today, working years to be OTC. bell month, will nondeal ago and the we this as impact. conduct from strong, uplift roadshows, to rang Five hard maximize focus do the will our NASDAQ continue finish we And point, year getting it with our but We of are exciting to on care, multiple a our with clients. actually scale That, at markets. is doctors as us just has an the close journey started motivates what and been to It patients team. we relates of combined align helping the up as to so this

And in to earnings with full everyone. your operator. that, time, year day, discussing thank call. I and of QX your the Thank a you, Have great forward look rest you for our

Thank sir. you,

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for us today. concludes today's This joining you call. Thank conference

may You your now disconnect lines.