WALTHAM, Mass. - OptimizeRx Corp. (NASDAQ:OPRX), a prominent healthcare technology firm trading at $4.91 per share, announced today that CEO William J. Febbo will depart at the end of the year. The announcement comes amid challenging market conditions, with the stock down over 65% year-to-date according to InvestingPro data. Febbo, who has led the company for nearly nine years, will provide advisory services through March 31, 2025. The Board of Directors has initiated a search for a permanent CEO and appointed Stephen Silvestro, the current President, as interim CEO.
During Febbo's tenure, OptimizeRx experienced significant growth, expanding its partnerships with top pharmaceutical companies and evolving from a single product to a comprehensive omnichannel platform. InvestingPro data shows the company maintains strong fundamentals with a current ratio of 3.23, indicating healthy liquidity, and impressive revenue growth of 40.4% over the last twelve months. "The time is right to pass the reins on to an incredible team, ready to carry the legacy forward with strength and purpose," Febbo stated, affirming his support for the company's future.
Lynn Vos, Chairperson of the Board, expressed gratitude for Febbo's transformative leadership and optimism for the company's continued growth. Silvestro, who has over six years of experience with OptimizeRx and previously served as Chief Commercial Officer, will lead the company as it seeks to differentiate itself in the market through its technology and strategic partnerships.
"I am honored to have the Board's trust and will remain resolute on scaling our business as we differentiate ourselves within the market through our technology and continue to build meaningful strategic partnerships with our clients," Silvestro commented, emphasizing a focus on operational excellence and client satisfaction.
OptimizeRx also reaffirmed its financial guidance for 2024, anticipating results at the higher end of its revenue and adjusted EBITDA projections. While the company reported losses in recent quarters, InvestingPro analysis suggests a potential turnaround, with analysts expecting profitability this year. InvestingPro subscribers have access to 8 additional key insights about OptimizeRx's financial outlook and comprehensive Pro Research Reports.
OptimizeRx connects healthcare providers and patients through a technology platform, facilitating engagement throughout the patient care journey. The company's network reaches over 2 million U.S. healthcare providers and their patients, aiming to support life sciences organizations in their engagement efforts. According to InvestingPro Fair Value analysis, the stock appears significantly undervalued at current levels, despite maintaining a solid gross profit margin of 62.6%.
This announcement is based on a press release statement from OptimizeRx. The company cautions that forward-looking statements involve risks and uncertainties, and actual results could differ materially from those projected.
In other recent news, OptimizeRx reported a 30% year-over-year revenue growth for Q3 of Fiscal 2024, reaching $21.3 million. However, the company's revenue did not meet market expectations due to challenges in the Direct-to-Consumer (DTC) segment. The company also reported a net loss of $9.1 million for the quarter, influenced by the Medicx Health acquisition and a goodwill impairment charge.
OptimizeRx has adjusted its full-year 2024 revenue guidance to between $88 million and $92 million, with adjusted EBITDA projections of $8 million to $10 million. A strategic shift towards a self-service model in the DTC business has been noted, along with a doubling of the sales pipeline year-over-year.
In terms of future developments, the company anticipates improvements in the DTC segment in 2025, with significant contributions from a pharmaceutical client and cross-selling efforts. There are also expectations for four clients to contribute over $10 million each in 2025. These are the latest developments on OptimizeRx's financial health and strategic direction.
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