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Dec 31, 2024

OptimizeRx Q4 2024 Earnings Report

OptimizeRx delivered strong revenue growth and improved margins but reported a slight GAAP net loss.

Key Takeaways

OptimizeRx reported Q4 2024 revenue of $32.3 million, up 14% year-over-year, driven by increased demand for its healthcare technology solutions. The company achieved a gross profit of $22.0 million, reflecting a gross margin of 68%. While GAAP net income was nearly breakeven at -$0.1 million, non-GAAP net income totaled $5.5 million. Adjusted EBITDA surged by 53% to $8.8 million, highlighting operational efficiencies.

Q4 revenue increased 14% to $32.3 million.

Gross margin expanded to 68%, with gross profit of $22.0 million.

GAAP net income was nearly breakeven at -$0.1 million.

Non-GAAP net income reached $5.5 million, with adjusted EBITDA up 53% to $8.8 million.

Total Revenue
$32.3M
Previous year: $28.4M
+13.9%
EPS
$0.3
Previous year: $0.26
+15.4%
Gross Margin
68%
Previous year: 63%
+7.9%
Gross Profit
$22M
Previous year: $16.8M
+30.8%
Cash and Equivalents
$13.4M
Previous year: $13.9M
-3.4%
Free Cash Flow
$4.89M
Previous year: -$6.26M
-178.1%
Total Assets
$171M
Previous year: $183M
-6.7%

OptimizeRx

OptimizeRx

Forward Guidance

OptimizeRx expects revenue of at least $100 million for FY25, with adjusted EBITDA forecasted to be at least $12 million. The company aims to transition its DAAP customers to a subscription model to enhance revenue predictability and margins.

Positive Outlook

  • Revenue guidance of at least $100 million for FY25.
  • Adjusted EBITDA expected to reach at least $12 million.
  • Transition to a subscription model expected to improve margins.
  • Continued expansion in pharmaceutical partnerships.
  • Strong momentum in digital healthcare engagement solutions.

Challenges Ahead

  • Potential headwinds from macroeconomic factors affecting healthcare IT spending.
  • Dependency on pharmaceutical manufacturers for revenue growth.
  • Transition to subscription-based revenue may take time to scale.
  • Regulatory changes in healthcare could impact operations.
  • Competitive pressures in the healthcare technology space remain high.