Latest news with #OPRX
Yahoo
5 days ago
- Business
- Yahoo
Can OPRX's Patient Engagement Tools Win Amid Fierce Competition?
OptimizeRx OPRX delivered an encouraging first-quarter 2025, with revenues rising 11% year over year to $21.9 million and adjusted EBITDA reaching $1.5 million — a significant year-over-year turnaround. Despite its seasonally weakest quarter, OPRX is seeing momentum in its core platform, anchored by DAAP and advanced micro-neighborhood targeting. The company's strength lies in its broad reach across point-of-care networks and its ability to integrate direct-to-consumer (DTC) and HCP-facing campaigns. CEO Steve Silvestro emphasized that OPRX is being increasingly viewed as a strategic commercialization partner, especially as pharma spending gets more focused and selective. Their platform's ROI — claimed at over 10:1 — and a 25% script lift in six months underscore its value proposition in a tightening market. Also, more than 80% of its 2025 revenues are already contracted, and the company has begun shifting toward a subscription-based model, with early traction in data-as-a-service offerings. This could bring margin stability and predictability, which are key for long-term value creation. Though gross margin dipped slightly due to a higher mix of managed services, the company is confident about its ability sustain margins in the 60% range while expanding high-margin data solutions. OptimizeRx also addressed concerns about regulatory pressures and pharma budget volatility, stating it hasn't seen meaningful headwinds yet. Rather, there's greater client focus on cost-effective digital solutions, which could be a tailwind for OPRX. In a fiercely competitive digital health space where giants like Veeva are evolving rapidly, OPRX's integration of scalable omnichannel tools and data-driven insights may provide it with a durable edge if it continues to execute with discipline and agility. The challenge lies in scaling subscriptions while maintaining innovation to avoid margin pressures and defend its niche in a shifting digital engagement landscape. Tools From Peers Omnicell OMCL is reinforcing its digital health strategy through the Intelligence-Enabled Pharmacy vision. The company is scaling its OmniSphere platform — a cloud-based, AI-powered solution that offers predictive analytics and real-time medication inventory management. Despite near-term macroeconomic challenges and a pause in large-scale capex projects, Omnicell remains committed to automating and digitally transforming medication management workflows across hospitals and health systems. OMCL's Advanced Services suite further integrates automation, analytics, and remote pharmacy services, aimed at optimizing clinical and financial outcomes for healthcare providers. These innovations position Omnicell as a strategic enabler of smart, data-driven pharmacy operations. Teladoc Health TDOC is doubling down on digital mental health with its BetterHelp platform and recent acquisition of UpLift, an in-network virtual mental health provider. This move enables Teladoc to offer covered-benefits therapy options to users, improving conversion rates and reducing out-of-pocket costs. UpLift's network of more than 1,500 licensed professionals complements BetterHelp's reach of 35,000 therapists, supporting therapy, psychiatry and medication management. Teladoc is also investing in AI-enabled clinical documentation tools and its Prism care delivery platform, which enhances integration across the virtual care ecosystem. These steps underline its ambition to deliver scalable, tech-driven behavioral and chronic care solutions globally. OPRX's Price Performance, Valuation and Estimates Shares of OptimizeRx have surged 187.9% year to date compared with the industry's growth of 18%. Image Source: Zacks Investment Research OPRX's forward 12-month P/S of 2.33X is lower than the industry's average of 8.86X, and also lower than its five-year median of 3.57X. However, it carries a Value Scoreof F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for OPRX's 2025 earnings per share suggests a 63.6% improvement from the 2024 level. Image Source: Zacks Investment Research OptimizeRx stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicell, Inc. (OMCL) : Free Stock Analysis Report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-07-2025
- Business
- Yahoo
OPRX Shares Rise 69.3% in 3 Months: Time to Bet on the Stock?
OptimizeRx OPRX, a digital health platform that connects pharmaceutical companies with healthcare providers and patients, delivered a strong start to fiscal 2025 with first-quarter results that surpassed Wall Street expectations. This also got reflected in the robust performance of its share price in the past three months. Amid ongoing shifts in pharma marketing strategies and a growing emphasis on digital outreach, the company demonstrated operational discipline, strategic agility, and an ability to monetize data-driven solutions. Revenue rose 11% year over year to $21.9 million, and positive operating cash flow of $3.9 million marked a notable turnaround from the prior year. Backed by increased visibility from contracted revenues and early success in transitioning to a subscription-based model, management raised its full-year guidance and reaffirmed its ambition to achieve Rule of 40 metrics. As OPRX continues to scale its omnichannel platform and deepen client relationships, the company's momentum underscores its potential to create sustained shareholder value in a rapidly evolving healthcare ecosystem. Shares of OptimizeRx have surged 69.3% in the past three months, most likely due to its strong revenue growth as well as rising volume of contracted revenues and early success in transitioning to a subscription-based model. This gain far outpaced the broader industry's growth of 36.7%, while the S&P 500 has gained 22.1% during the same period. Among its peers, Doximity DOCS has risen only 15.7%, and Teladoc TDOC has gained 14.5%, highlighting the uniquely steep improvements in OPRX's stock. Image Source: Zacks Investment Research Solid Financial Performance and Guidance Raise: OPRX kicked off the year with strong execution in what is traditionally its softest quarter. Gross margins remained steady at 60.9%, and operating expenses declined year over year due to reduced stock-based compensation and cost controls. The company generated a positive operating cash flow of $3.9 million and ended the quarter with $16.6 million in cash, up from $13.4 million at year-end 2024, despite repaying $6.2 million in debt. Encouraged by this trajectory, management raised full-year revenue guidance and reaffirmed its target to achieve Rule of 40 performance within the next several years such that OPRX's combined annual revenue growth rate and EBITDA margin are 40% or higher. Image Source: Zacks Investment Research Contracted Revenue and Pipeline Visibility: A key highlight of the quarter was the more than 25% year-over-year increase in committed contracted revenue, now exceeding $70 million. This accounts for over 80% of the mid-point of 2025 revenue guidance, providing high visibility for the rest of the year. Management cited improved conversion rates and a growing pipeline of opportunities, especially in high-value data and subscription services, as primary contributors to this confidence. Revenue per top 20 pharma customer stood at nearly $3 million, with these clients accounting for 63% of business in the first quarter. Data Monetization and Subscription Model Transition: OPRX is making meaningful progress in converting parts of its business to a subscription-based revenue model, with over 5% of projected 2025 revenues already tied to recurring contracts. The shift is particularly focused on its DAAP (Dynamic Audience Activation Platform) and Medicx data businesses, which are expected to drive longer contract tenures and margin accretion. Though still early in the transition, the company views this model as accretive to gross margins and more resilient to budget fluctuations in pharma marketing. OptimizeRx seems to be attractively priced, trading at a forward P/S of 2.2X, well below its five-year median of 3.64X. The multiple also lies significantly below the industry average of 8.64X. In comparison, Doximity trades at 17.48X and Teladoc at 0.58X, placing OPRX somewhere in the middle of the pack despite its recent surge. Image Source: Zacks Investment Research Competitive Landscape and Client Budget Pressures: Despite favorable demand signals, management remains cautious about potential macro and policy-related headwinds. While the company has not seen any client pullbacks to date, ongoing scrutiny around drug pricing and healthcare spending could eventually influence pharma marketing budgets. Management emphasized that digital solutions could become even more attractive in cost-cutting environments, but this dynamic remains fluid. Execution Risk in Subscription Transition: Although early signs of the subscription pivot are encouraging, the transition still remains in its nascent stages. Management acknowledges there is 'a lot of wood to chop' in terms of converting existing transactional business into recurring contracts. Moreover, pharma's typical one-year marketing cycle presents structural challenges to locking in multi-year deals, potentially limiting near-term visibility on recurring revenue growth. OptimizeRx's first-quarter results and raised outlook for FY2025 reflect a company that is successfully executing on its strategy while navigating industry complexity. Its strong financial performance, growing contracted revenue base, and clear path toward a higher-margin, subscription-oriented model offer investors a compelling growth narrative. While margin variability and macro uncertainty warrant monitoring, OPRX's differentiated platform, robust pipeline, and strong client engagement provide confidence in both its near-term execution and long-term potential. For investors seeking exposure to the convergence of data, digital engagement, and healthcare, OptimizeRx offers a unique value proposition with room for meaningful upside. Moreover, OPRX looks attractively placed based on its valuations compared to Doximity. Although Teladoc's valuation is lower, its shares have been on a downtrend for the past couple of years. OptimizeRx currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report Teladoc Health, Inc. (TDOC) : Free Stock Analysis Report Doximity, Inc. (DOCS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
06-06-2025
- Business
- Yahoo
Here's Why OptimizeRx Corp. (OPRX) is a Great Momentum Stock to Buy
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at OptimizeRx Corp. (OPRX), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. OptimizeRx Corp. Currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> In order to see if OPRX is a promising momentum pick, let's examine some Momentum Style elements to see if this company holds up. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area. For OPRX, shares are up 4.21% over the past week while the Zacks Computer - Software industry is up 1.28% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 43.09% compares favorably with the industry's 1.82% performance as well. While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Over the past quarter, shares of OptimizeRx Corp. Have risen 98.32%, and are up 25.6% in the last year. In comparison, the S&P 500 has only moved 1.99% and 12.34%, respectively. Investors should also pay attention to OPRX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. OPRX is currently averaging 396,163 shares for the last 20 days. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with OPRX. Over the past two months, 4 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost OPRX's consensus estimate, increasing from $0.40 to $0.51 in the past 60 days. Looking at the next fiscal year, 3 estimates have moved upwards while there have been no downward revisions in the same time period. Taking into account all of these elements, it should come as no surprise that OPRX is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep OptimizeRx Corp. On your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OptimizeRx Corp. (OPRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
13-05-2025
- Business
- Yahoo
OptimizeRx Corp (OPRX) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Shifts
Revenue: $21.9 million, an increase of 11% year over year. Gross Margin: 60.9%, down from 62% in the previous year. Net Loss: $2.2 million or $0.12 per share, compared to a net loss of $6.9 million or $0.38 per share in the previous year. Non-GAAP Net Loss: $1.5 million or $0.08 per share, compared to $2 million or $0.11 per share in the previous year. Adjusted EBITDA: $1.5 million, compared to a $0.3 million loss in the previous year. Operating Cash Flow: $3.9 million for the first quarter. Cash Balance: $16.6 million at the end of the quarter. Debt Balance: $33.8 million, with $6.2 million of principal paid off in the first quarter. Committed Contracted Revenue: Exceeded $70 million, a greater-than-25% improvement year over year. Average Revenue per Top 20 Pharmaceutical Manufacturer: Approximately $3 million. Net Revenue Retention Rate: 114%. Revenue per FTE: $710,000, up from $641,000 in the previous year. Warning! GuruFocus has detected 2 Warning Sign with OPRX. Release Date: May 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. OptimizeRx Corp (NASDAQ:OPRX) reported Q1 2025 revenues of $21.9 million, an 11% increase year over year, surpassing both consensus estimates and internal expectations. The company improved its adjusted EBITDA to $1.5 million, a significant increase from a loss of $0.3 million in Q1 2024. Contracted revenue increased by more than 20% year over year, providing strong visibility and positioning for the remainder of the year. The company raised its full-year revenue guidance to between $101 million and $106 million, with adjusted EBITDA expected between $13 million and $15 million. Early momentum in transitioning to a subscription-based model, with over 5% of projected annual revenue already converted to subscription contracts for 2025. Gross margin decreased from 62% in Q1 2024 to 60.9% in Q1 2025, primarily due to product and channel partner mix. The company reported a net loss of $2.2 million for Q1 2025, although this was an improvement from a $6.9 million loss in Q1 2024. Despite improvements, the company still faces challenges in achieving multi-year subscription contracts due to the annual budgeting nature of the pharma industry. The transition to a subscription-based model may impact revenue recognition, spreading revenue over a 12-month period. The company has a debt balance of $33.8 million, although it has paid off $6.2 million of principal in Q1 2025. Q: With the current market noise, including tariffs and price negotiations, have you seen any hesitation from your customers? A: Stephen Silvestro, President and Chief Commercial Officer, stated that they have not seen any pull-back from clients. They are receiving real-time updates and have observed clients leaning in more to drive market efforts, particularly leveraging digital channels. Q: How does the transition to a subscription-based revenue model impact revenue recognition and margins? A: Edward Stelmakh, Chief Financial Officer, explained that subscription revenue is spread over a 12-month period, which is accretive due to the revenue share perspective. The cost of sales for subscription revenue is relatively low, benefiting margins. Q: Can you provide clarity on the gross margin profile, given the increase in direct-to-consumer managed services? A: Edward Stelmakh noted that while some solutions have lower margins, the company is diversified enough to maintain a stable gross margin profile. They aim to increase margins above the low 60% range, but currently, they are comfortable with the existing range. Q: What is the visibility on committed revenue for the year, and how does it compare to last year? A: Stephen Silvestro confirmed that committed revenue is north of 80%, showing a 25% improvement over the previous year. This increased visibility gives them confidence in their guidance. Q: Regarding the pipeline, how are win rates and average deal sizes evolving? A: Stephen Silvestro mentioned that the pipeline continues to grow steadily, with improved conversion rates, particularly in data and subscription components. However, they did not disclose specific average deal sizes for competitive reasons. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
30-03-2025
- Business
- Yahoo
OptimizeRx Corporation (NASDAQ:OPRX) is favoured by institutional owners who hold 59% of the company
Institutions' substantial holdings in OptimizeRx implies that they have significant influence over the company's share price A total of 11 investors have a majority stake in the company with 52% ownership Insiders have bought recently This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. A look at the shareholders of OptimizeRx Corporation (NASDAQ:OPRX) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of OptimizeRx. See our latest analysis for OptimizeRx Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in OptimizeRx. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of OptimizeRx, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It would appear that 8.2% of OptimizeRx shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is Whetstone Capital Advisors, LLC with 8.2% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.5% and 7.2%, of the shares outstanding, respectively. A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 52% implying that no single shareholder has a majority. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that insiders maintain a significant holding in OptimizeRx Corporation. Insiders have a US$23m stake in this US$160m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over OptimizeRx. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. It's always worth thinking about the different groups who own shares in a company. But to understand OptimizeRx better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with OptimizeRx (including 1 which is a bit unpleasant) . But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
