OptimizeRx Corporation reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total net revenue rising by 29% to $92.1 million, compared to $71.5 million in 2023. This growth was largely attributed to the acquisition of Healthy Offers, Inc. (Medicx Health) in October 2023, which contributed approximately $13.6 million to the revenue increase. Additionally, the company saw a rise in Dynamic Audience Activation Platform (DAAP) sales, with 48 deals completed in 2024, up from 24 in the previous year. Despite the revenue growth, OptimizeRx reported a net loss of $20.1 million, an increase from a loss of $17.6 million in 2023, primarily due to higher operating expenses and a goodwill impairment charge of $7.5 million.
The company’s operating expenses increased to $73.1 million in 2024, up from $69.3 million in 2023, driven by higher compensation costs and the integration of Medicx employees. The gross margin improved to 64.5%, up from 60% in the prior year, reflecting a decrease in the cost of revenues as a percentage of total revenue. The company’s customer base remains concentrated, with its top five customers accounting for approximately 49% of total revenue in 2024, compared to 44% in 2023.
In terms of strategic developments, OptimizeRx expanded its capabilities through the Medicx acquisition, enhancing its direct-to-consumer marketing offerings with the Micro-Neighborhood Targeting solution. This acquisition allows the company to better target healthcare providers and patients, thereby increasing its market reach. The company also appointed Stephen L. Silvestro as CEO in March 2025, following a comprehensive review of its business strategies and operations.
Operationally, OptimizeRx connected with over two million healthcare providers and millions of patients through its technology platform. The company reported a net revenue retention rate of 121% in 2024, indicating strong growth in existing customer accounts. The employee headcount stood at 106 full-time employees in the U.S. and 22 in Croatia as of December 31, 2024, reflecting a commitment to maintaining a skilled workforce to support its growth initiatives.
Looking ahead, OptimizeRx aims to achieve a "Rule of 40" status, targeting a combined annual revenue growth rate and EBITDA margin of 40% or higher. The company plans to transition its DAAP customers to a subscription-based model, which is expected to enhance revenue predictability and improve margins over time. However, the company acknowledges potential risks, including economic uncertainties and regulatory changes that could impact its operations and financial performance.
About OptimizeRx Corp
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