 ROCHESTER, Mich., Aug. 05, 2020 GLOBE NEWSWIRE -- OptimizeRx Corp. Nasdaq: OPRX, a leading provider of digital health solutions for life science companies, physicians and patients, reported results for the second quarter and six months ended June 30, 2020. Quarterly and first half comparisons are to the same year-ago period. Financial Highlights Revenue increased 25 to a record 8.8 million in second quarter of 2020, first half of 2020 up 34 to a record 16.4 million. Gross profit increased 19 to 5.1 million in the second quarter of 2020. Cash and cash equivalents totaled 14.1 million at June 30, 2020. Closed additional enterprise deals, bringing total value of enterprise-level engagements to 21 million in annualized revenue. Accelerated growth expected in second half of 2020.Q2 2020 Operational Highlights Finalized a new partnership that expands the companys digital communication platform by more than 300 health systems and 125,000 healthcare providers that use the market-leading Epic and Cerner electronic health records systems EHRs. Launched TelaRepTM for on-demand virtual consults that support physicians treating patients with complex diseases in COVID-19 world. TrueTM Womens Health launched a new mobile app powered by OptimizeRxs RMDY digital health tools that enables the clinic to use telehealth to treat patients nationwide with personalized health and wellness programs during the COVID-19 pandemic. Recognized as one of The Americas 500 Fastest-Growing Companies by The Financial Times. Chief commercial officer, Stephen Silvestro, was honored with the 2020 PM360 ELITE 100 Award for his organizational leadership and positive impact on the healthcare industry. Hosted new webinar series featuring industry thought leaders covering a range of topics around using digital health technology to improve patient care, engagement and outcomes.Q2 2020 Financial SummaryTotal revenue in the second quarter of 2020 increased 25 to a record 8.8 million versus 7.0 million in the same year-ago quarter. The quarterly increase was due to increased sales of messaging solutions.Gross margin decreased to 58.6 in the second quarter of 2020 from 61.6 in the year-ago quarter. The decrease was due to an unusually favorable product mix in the year-ago period that had a high percentage of launch assistance services and other nonrecurring revenue that was not subject to revenue share expense. The company expects its gross margin to improve on a quarter-over-quarter basis for the balance of the year, with a target of 63 for 2020.Operating expenses totaled 6.2 million, up from 3.8 million in the same year-ago quarter. The increase was related to the company building a stronger base for future growth by expanding its product line, building out its sales organization, and integrating two acquisitions over the last 21 months.Net loss on a GAAP basis in the second quarter of 2020 was 1.1 million or 0.07 per share, as compared to a net income of 407,000 or 0.03 per share in the year-ago quarter.Non-GAAP net income for the second quarter of 2020 was 254,000 or 0.02 per share, compared to non-GAAP net income of 1.3 million or 0.09 per diluted share in the same year-ago period see definition of these non-GAAP measures and reconciliation to GAAP, below.While the company expects to return to GAAP profitability as its revenue grows, expenses related to investments in growth initiatives or non-cash charges could result in a loss in any given quarter. Given the opportunity at hand as discussed below, the company is focused on top-line growth while maintaining a strong balance sheet. Cash and cash equivalents totaled 14.1 million at June 30, 2020, as compared to 15.2 million at March 31, 2020. The decrease was due to an earnout payment related to the CareSpeak acquisition based on the achievement of revenue goals for 2019. Excluding the earning out payment, the company was cash flow positive for the quarter. The company has continued to operate debt-free and expects to be cash-flow positive for the remainder of the year.Management CommentaryIn Q2, we generated another record topline along with sequential margin improvement, said OptimizeRx CEO William Febbo. For the first half of the year, which is traditionally our slowest, we grew at a faster pace than anticipated at 34, and our closing ratio exceeded 50.During the quarter, we expanded our digital health platform with greater reach into Epic and Cerner, and we secured revenue from new solutions born out of our Innovation Lab. Our performance also benefited from the fine-tuning our patient engagement market strategy at a time when demand has never been greater due to the COVID-19 pandemic.In all, we beat our internal goals across the board as we continued to build a highly impactful digital communications platform that is situated between all the major stakeholders---a nationwide network helping doctors, patients and industry improve adherence and affordability.As COVID-19 continues to disrupt the traditional pathways of communication between industry, doctors and patients due to the drop in office visits and widespread transition to virtual care, OptimizeRx has emerged with optimal solutions that improve these essential lines of communication. Weve also been working to enhance our corporate governance and we recently welcomed to our board Greg Wasson, the former president and CEO of Walgreens Boots Alliance. Gregs many years of experience building Walgreens into a Fortune 50 company with global reach makes him an exceptionally valuable and timely addition to our board, and particularly as we look to enhance patient connectivity at the point-of-dispense.We have built meaningful physician reach over the years, and with some measure of exclusivity, by integrating our platform into the leading EHR and e-prescribe systems. Today we reach 60 of the ambulatory market. That is, where most prescribing occurs. Now we have another great opportunity to improve care by integrating with pharmacies at the point-of-dispense.We are seeing great traction with our clients on multiple levels. We are deeply entrenched in our client base as we work with 45 of the top 20 brands by revenue with continued interest from the remaining 55.This powerful position reflects the trust weve gained with our clients at a time when digital communication is absolutely needed, and it is supporting our continued shift to a SaaS-based, recurring revenue model. We recently secured two new SaaS-based enterprise-level deals, bringing to total the value of our enterprise-level engagements to 21 million in annualized revenue.Most of our growth this year has been organic, as our pharma clients increasingly recognize that addressing the point of care is critical to an effective marketing strategy. Our newer solutions, like patient engagement, hub enrollment and TelaRep, are all generating interest and beginning to generate revenue within our client base. We see these helping to drive growth this year and even stronger growth next year. We came in ahead of our internal budget for the first half and now expect to far exceed our earlier goals for the second, keeping us on pace for another year of record growth and market expansion.Conference CallOptimizeRx management will host the presentation, followed by a question and answer period.Date: Wednesday, August 5, 2020 Time: 4:30 p.m. Eastern time 1:30 p.m. Pacific time Toll-free dial-in number: 1-866-248-8441 International dial-in number: 1-323-289-6576 Conference ID: 1161129Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 26, 2020, as well as available for replay via the Investors section of the OptimizeRx website at optimizerx.cominvestors.Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 1161129Definition and Use of Non-GAAP Financial Measures This earnings release includes a presentation of non-GAAP net income loss and non-GAAP earnings loss per share or non-GAAP EPS, both of which are non-GAAP financial measures.The company defines non-GAAP net income loss as GAAP net income loss with an adjustment to add back depreciation, amortization, non-cash lease expense, stock-based compensation, acquisition expenses, income or loss related to the fair value of contingent consideration, and deferred income taxes. Non-GAAP EPS is defined as non-GAAP net income loss divided by the number of weighted average shares outstanding on a basic and diluted basis. The company has provided non-GAAP financial measures to aid investors in better understanding its performance. Management believes that these non-GAAP financial measures provide additional insight into the operations and cashflow of the company.Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a companys non-cash operating expenses, management believes that providing non-GAAP financial measures that excludes non-cash expenses allows for meaningful comparisons between the companys core business operating results and those of other companies, as well as provides an important tool for financial and operational decision making and for evaluating the companys own core business operating results over different periods of time. 