OptimizeRx Corporation (NASDAQ:OPRX) Q4 2023 Earnings Call Transcript

Stephanie Davis: Awesome. I do have to ask because we have seen a public peer go through some issues when delaying their reporting. How should we think about the cost associated with that? Because there usually is a little bit more accounting costs. And, you know, some management attention, if you will, when that happens.

William Febbo: Yes, no problem. We did a lot last year. And again, as I said in my prepared remarks, I’m super proud of the team, because for a small company, it’s no small feat to buy one out license some tech and simultaneously see your core starting to grow, which, you know, you believe, but it’s when it happens, it happens fast. And as we said all that, coupled with reviewing material weakness that we have a remediation plan for 2024. Everything’s just taking longer. So yeah, there’ll be some incremental costs for you know, third party assistance on the acquisition stuff, a lot of the costs was already rolled into the acquisition costs. And once we actually file, people will see that, so I wouldn’t anticipate a ton. But there will be some additional.

Stephanie Davis: Awesome, good to hear good luck with the sprint.

William Febbo: Thank you. Talk to you soon, Stephanie.

Operator: [Operator Instructions] Our next question is from William Wood with B. Riley Securities. Please proceed with your question.

William Wood: Thanks so much. And congratulations on a nice fourth quarter. Just a couple from us. We’re just kind of curious want to dig in a little bit more to the DAAP expectations or the DAAP growth expectations for this year, you obviously noted 24, at the close of next year, you know, should we — how should we be thinking about this growth for this year in terms of the number of deals, as well, as you know, maybe potentially commenting on Pharma Partners that you already sort of have in the queue to sign up for the year?

William Febbo: Yeah, we don’t want to get — Will, its good to hear your voice. We don’t want to get too far ahead, because we’re going to report basically a month or so on Q1, but very positive momentum will give an update on the, the closes we’ve seen in Q1. And but we don’t want to get ahead of that. But I just I think what’s telling and what Steve mentioned, as we went from 2 to 6 to 24, 100% of which renewed from the 2, 2 went into the 6, the six went into the 24. And now we’re really seeing cases across multiple therapeutic areas, and also different needs by the client. And I think what’s going to be most encouraging when we talk about it is just seeing how this can now apply to the DTC part of our business. Because their method was is spectacular on creating micro neighborhoods.

But when you can layer in DAAP with the algorithm, it really the two together, first of all simplifies life for our clients, we think increases quality of outreach and will certainly drive better prescription lift. So, stay tuned, can’t give you any hard numbers, but really positive momentum year-over-year, and certainly what we’re seeing initially.

William Wood: Appreciated, that’s very helpful. In terms of your Medicx. You mentioned that it was almost complete or near completion. I just curious, when we should be expecting for that to complete, you know, or, you know, is it month timeline? Or is it six, you know, longer, slightly longer term? And then how should we think about that is adding to the growth and the expectations for 2024 coming?

William Febbo: Yes, so we we’ve got a pretty seasoned team with Ed, Steve, Marion and myself, and then the whole team below us, a lot of us have done acquisitions, we tend to be pretty conservative on the first year. And I will say the process of integration was really well run Ed Stelmakh, our CFO he setup that particular office to do that. And all the major stuff is done. And now it’s fine tuning and then it’s just operations. I think the part that on the commercial side, which is where the growth can come from, to your question, we did a great training in January of both teams together. I was there as well as the entire senior team was there. And I think that was really brilliant. It just brought together first of all people that already worked together.

They’ve gone through the knife fight of digital spend before it was cool, and then also got their head around what DAAP is, so we’re really excited about that. And in Q1 we can give a little bit more color in terms of DAAPs contribution, growth, percentage of overall revenue, that kind of thing. But we’ll be there soon enough.

William Wood: Got it. Appreciate that. And one last quick one. Could you remind me what Medicx gross margins were and, or historically have been? And then how you would expect those to sort of integrate into OptimizeRx’s? And you know, how sort of the outlook for the future on how we should expect those to integrate? Thank you.

William Febbo: Sure. Ed, do you want to take that?

Edward Stelmakh : Yes. Hey William. So the margins for Medicx, I think they were just closed for Q1, Q2 is taking a look at those filings as far as who your margin is concerned. As we said before, we’re not going to swing out their numbers, we’re pretty much now fully integrated business. So the margins are all baked into our current guidance as one company.

William Wood: Understood. Thank you for taking our questions.

Operator: Thank you. There are no further questions at this time. I’d like to hand the floor back over to William Febbo, for any closing comments.