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OptimizeRx Corp. (OPRX)
Q3 2018 Earnings Conference Call
November 05, 2018, 04:30 PM ET
William Febbo - CEO
Doug Baker - CFO
Miriam Paramore - President
Andrew D'Silva - B. Riley FBR
Richard Baldry - ROTH Capital
Eric Martinuzzi - Lake Street
Harvey Poppel - PopTech
Previous Statements by OPRX
» OptimizeRx Corp. (OPRX) CEO William Febbo on Q2 2018 Results - Earnings Call Transcript
» OptimizeRx's (OPRX) CEO William Febbo on Q1 2018 Results - Earnings Call Transcript
» OptimizeRx's (OPRX) CEO Will Febbo on Q4 2017 Results - Earnings Call Transcript
I'd also like to remind everyone that today's call is being recorded and will be made available for telephone replay via instructions in today's press release in the investor's section of the company's website.
Now, I'd like to turn the call over to OptimizeRx, CEO, Will Febbo. Please go ahead.
Thank you, Greg, and good afternoon, everyone. Thanks for joining us on the call today. As you all saw from today's earnings release, we made a lot of progress in growing our digital health messaging platform. On the call today, we'll look to talk about our record quarter and the foundation we've been laying to support future growth and expansion.
We continue to achieve growth and improvement across the board in Q3, in fact we realized our eight consecutive quarter of revenue growth and our second consecutive quarter of profitability. Revenue was up 75% from a year-ago quarter and up 6% sequentially to a record $5.4 million. These results reflect strong client demand and expanding increasing budgets, which we believe is due to the high return on investment on marketing dollars we offer to our clients.
We also see accelerating opportunities and progress with market adoption of our platform, the need for more assistance with copays on branded medications and continued growth around additional access to physicians in both ambulatory and hospital settings. Our extending reach to physicians at point of care together also continues to fuel our growth.
So far this year, we've launched with seven new EHRs, and we've exceeded most of our internal revenue goals. Even with this strong progress, we believe we've only just begun to open the market and feel adoption will only increase. At the risk of referring to baseball and being from the Boston area, we feel we're in the third inning from my perspective so still very early.
Up to 2 billion e-prescriptions transmitted annually nationwide still only 10% involve brands with copay savings programs. This means OptimizeRx has the potential to deliver more than 200 million transactions annually at the current level. Naturally we expect to see e-prescription market grow over time as more healthcare providers modernize their workflow. In fact industry analysts see it growing at a CAGR of more than 25% over the next five years.
Also driving our market is the escalating costs of healthcare and particularly how the cost of prescriptions is increasingly being shifted to patients. This means more demand for the copay savings programs. The pharma industry is preparing for this and has reportedly set aside more than $8 billion to cover copay programs.
Based on these factors and indicators from our clients' aiding season partners, we estimate the total addressable market is worth well north of $1 billion, and certainly once the market fully adopts this channel. We believe we're in the early days of the opportunity and that we have a huge first mover advantage and certainly as any public company goes we are truly a pure play in this space. We have an advanced technology infrastructure in place at the right time and this industry see change where we can reconnect pharmaceutical manufacturers and physicians in a seamless efficient way and generate high ROI for our clients.
We have an amazing direct reach to healthcare providers through our EHR network. In fact we have access to over half of the providers. However after a careful analysis we realized we could strengthen our value to our pharma clients, HCPs and patients with a direct channel to the patient. With this in mind a few weeks ago we acquired CareSpeak, the company that has been an early innovator in interactive health messaging and particularly messaging that improves medication adherence and patient outcomes. This strategic acquisition addresses what we see as a critical industry need for direct digital communication between pharma and patients.
CareSpeak’s mobile messaging platform is intelligently designed to support greater medication adherence, deeper patient engagement and better health outcomes. We are also excited about the operational talent CareSpeak brings to us, as well as the synergies between CareSpeak’s technology and our point of care network. I'll delve more into that strategic acquisition in a little bit.
Next I'd like to turn our call over to our CFO, Doug Baker, who will walk us through the financials for Q3. Then Miriam Paramore, our President will discuss the latest with our platform development, product roadmap and channel strategy. Then I'll return to talk more about our operational results and outlook for the remainder of the year and then we'll take some questions. Doug?
Thanks, Will and good afternoon, everyone. Prior to the call we issued a press release with the results of our third quarter ended September 30, 2018. A copy of that release is available on the Investor Relations section of our website.