OptimizeRx Corporation (NASDAQ:OPRX) Q3 2024 Results Earnings Conference Call November 13, 2024 4:30 PM ET

Company Participants

William Febbo - Chief Executive Officer
Edward Stelmakh - Chief Financial Officer and Chief Operational Officer
Steve Silvestro - President

Conference Call Participants

Ryan Daniels - William Blair & Company, LLC
Sean Dodge - RBC Capital Markets
Kyle Bauser - B. Riley Securities
David Grossman - Stifel Financial
Constantine Davides - Citizens JMP
Stephanie Davis - Barclays

Operator

Good afternoon, everyone, and thank you for joining OptimizeRx's Third Quarter Fiscal 2024 Earnings Call.

With us today is OptimizeRx's Chief Executive Officer, William Febbo. He is joined by Chief Financial Officer, Ed Stelmakh; President, Steve Silvestro; General Counsel, Marion Odense-Ford; and Senior Vice President of Corporate Finance, Andrew D'Silva.

At the conclusion of today's earnings call, I will provide some important cautions regarding the forward-looking statements made by management during today's call.

I would like to remind everyone that today's call is being recorded and will be made available for replay via webcast only. Instructions are included in today's press release and in the Investors section of the company's website.

Now I would like to turn the call over to OptimizeRx CEO, William Febbo. Sir, please go ahead.

William Febbo

Thank you, operator. And good afternoon to everyone joining today's third quarter 2024 earnings call. To get started, while our year-over-year top line revenue grew 30% and came in at $21.3 million, it fell short of our expectations for the quarter. This is largely due to a shortfall with the DTC side of the business, which we acquired last year.

However, we are pleased with our legacy HCP business growth, bottom line performance, and cash flow generation in the quarter. We were able to realize incremental savings during the year as we completed the integrations of the combined commercial businesses and found operating efficiencies on top of what we had initially expected at the time of the acquisition.

As a result, we're updating our guidance and are now expecting 2024 annual revenue to come in between $88 million and $92 million for 2024 with a modest change to the adjusted EBITDA landing between $8 million and $10 million. Given we are well into November, we have high visibility on this revenue guidance.

Regarding the revenue shortfall, we encountered macro shifts at the DTC business, specifically a market trend away from managed services, where we create compliant audiences and manage media buying for the clients towards a self-service model. In this self-service model, we provide audiences to clients who then use them to run their own messaging campaigns.