OPRX - OptimizeRx stock sinks 26% on Q2 miss while FY22 outlook cut on life sciences sector woes

OptimizeRx ( NASDAQ: OPRX ) stock slumped ~26% premarket on Aug. 10 after Q2 results missed estimates and the company lowered its FY22 outlook, seen below analysts' expectations, citing temporary challenges to life sciences industry.

Q2 Non-GAAP EPS declined 60% Y/Y to $0.04; while revenue net revenue increased +2.6% Y/Y to $13.98M. However, both top and bottom line were below analysts' estimates.

The company said the increased revenue was due to increases in sales from its access solutions.

"We continue to perform strongly against our long term land-and-expand strategy and continue to have favorable net revenue retention despite the various macro factors that resulted in a weaker than expected second quarter. We believe the impact is temporary in nature," said OptimizeRx CEO Will Febbo.

GAAP net loss was -$3.88M, compared to net income of $0.35M in Q2 2021.

Total operating expenses increased to $12.9M, compared to $7.7M in Q2 2021

As of June 30, cash and cash equivalents were $87.4M, compared to $84.7M as of Dec. 31, 2021.

Outlook :

The company lowered its FY22 revenue outlook and now expects it to be between $62M and $68M (+1% to +11% Y/Y), from the prior forecast range of $80M to $85M which was provided in May during Q1 earnings results. Consensus Revenue Estimate is $74.18M.

OptimizeRx said the the change to H2 2022 outlook was driven by what it perceives to be temporary life sciences industry challenges related to a slowdown in the number of new drug approvals, increased turnover rates at client companies and longer sales cycles linked with larger deal sizes in the funnel.

OPRX -25.80% to $16.51 premarket Aug. 10

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