Good afternoon, and thank you for joining us today to discuss OptimizeRx's First Quarter Ended March 31, 2017. With us today are the company's Chief Executive Officer, William Febbo; and Chief Financial Officer, Doug Baker. Following the remarks, we will open the call for your questions. Then before we conclude today’s call, I will provide the necessary cautions regarding forward looking made by management. I would also like to remind everyone that today's call is being recorded and will be made available for a telephone replay via instructions in today's press release in the Investors section of the company's website. Now, I’d like to turn the conference over to Chief Executive Officer of OptimizeRX, Mr. William Febbo. Please go ahead.

Thanks, Ashley. Good afternoon, everyone, and thanks for joining us today. On the call, we'd like to talk about our strong progress we made during the quarter and what we think is a solid foundation we've continued to lay in preparation of future growth and expansion. Over the course of the last several quarters, as I've gotten my arms around the business, OptimizeRx has grown to become the healthcare industry's largest point-of-prescribe promotional network. Working in partnership with some of the world's largest pharmaceutical and healthcare companies, our digital health platform has been revolutionizing the point-of-care experience for physicians and their patients. Doctors have been able to better serve their patients through more affordable prescriptions and healthcare products while also better supporting adherence to prescribed medications and creating healthier outcomes. In the first quarter, our success to these endeavors was demonstrated by a 22% increase in our top line performance, with this reflecting strong growth in our clinical and brand messaging products. It is also reflected in the 20% expansion in our EHR network of channel partners and the launch of our financial message capability within the Allscripts TouchWorks network and other EHRs, like Eye Care Leaders. Now before I delve more into the operational progress for the quarter and outlook for the year, I'd like to turn the call over to our CFO and partner, Doug Baker, who will walk us through the financial details for the quarter. Doug?

Thanks, Will, and good afternoon, everyone. Earlier today, we issued a press release for the results of our first quarter ended March 31, 2017. A copy of that release is available on our website in the Investor Relations section. As reported, our net revenue increased 22% over the same year ago quarter to $2.2 million. The increase was due to both increased distribution of pharmaceutical brands and expanded distribution channels. We also saw considerable top line acceleration toward the end of Q1 and expect this to continue in Q2. We see this acceleration being driven by the onboarding of additional brands as well as connecting to new channel partners. Our financial and brand messaging was distributed for more than 100 brands in Q1. While our gross margin percentage declined from 49% in 2016 to 36% this year, this was primarily due to a change in product mix. In particular, an increase in our brand messaging revenue. As we expected, the introduction of our brand messaging product currently has a higher associated cost than our other products until we achieve greater penetration of this product throughout our client base. We expect the margins to improve each quarter for the balance of the year as the associated revenue base expands. Overall, our margins on our various product lines are generally expected to range from 25% to 70%. We expect our overall margin to improve throughout the year, driven by anticipated gradual decrease in our percentage of overall revenue share expense in future quarters as well as continued growth in brands and channels to distribute brand messaging. Throughout 2017, we plan to implement new channels with lower percentages of revenue share expense and update our existing agreements to share third-party class, with a goal of decreasing our overall percentage of revenue share expense…

Thanks, Doug. As Doug mentioned, our financial and brand messages, including the e-Coupons, were distributed for over 100 brands during the first quarter. But there remains an expansive opportunity ahead given that there are more than 700 additional brands which we could potentially enlist for distributing our programs right at point of e-prescribe. Additionally, we have the clear opportunity to grow our active e-prescriber reach given the more than 1 million U.S. healthcare providers who prescribe medication. And this trend continues to have hyperadoption across the country. Along these lines, we recently signed MSAs with two additional pharmaceutical companies, which I can't disclose, but rank among the top 20 in terms of revenue. With these new clients, we see great potential for growth given the number of brands they have in the market. And as we continue to leverage our strong ROI data, as we've discussed before, we are also seeing our existing clients commit to larger promotional budgets as they get more comfortable with this channel. As mentioned earlier, our strong top line in the first quarter was driven by growth in the clinical and brand messaging products. Just to remind you, brand messaging is about marketing and delivering key clinical brand messaging materials at the point of care in electronic or print form. Our particular brand messaging product offers pharmaceutical and healthcare companies more effective ways to expand physician and patient reach. Our proprietary brand messaging capability was also launched in the quarter to complement our existing financial messaging system and this has opened the access to additional budgets per brand, as we've discussed before. Given this offering represents a media spend for our clients, it has a larger total addressable market than for our financial messaging. So, we signed more than 40 brands, and we expect the…

[Operator Instructions] And we'll take our first question from Harvey Poppel with Poptech LP. Please go ahead.

Yes. Will, congratulations on renewed growth. 22% top line is quite a turn up from where it was last year. You mentioned on that point that, if I heard you correctly, that growth – that kind of growth rate might even accelerate. Is 22% the kind of number that you'd be satisfied with if that were the number for the entire year? Or do you think you can get better than that?

I would not be satisfied with it, Harvey, thanks for the support as always. No, I really believe now that I've got my arms around the business, we've got the team in place, we're seeing more adoption in pharmaceutical companies and the agencies that are advising them as well as just sort of stack-ups [ph] with similar buyers. I would be disappointed if we stayed at that rate. But I'll take it for Q1 and I like the reversal and getting back to growth. It's much more exciting. It attracts more people and success brings more clients as well. So I hope that answers your question.

Yes, okay. Just diving a little bit more. In past calls, you've shared a little bit of the revenue breakdown between the different products. Of course, eCouponing has dominated the revenue stream historically. Can you give us a sense of the proportion of eCouponing versus the other revenue segments and however you define them now and how that might evolve over the course of the year?

Yes. We decided not to break out the products just given our size and given the market dynamic but the financial messaging is still the majority of our revenue we're seeing. We saw in Q1 a pretty attractive increase towards the end of Q1, which I think does support continued growth. And obviously, we – I won't give numbers around the revenue of the new products. But we booked more than we sold out last year already in the clinical and brand messaging. So...

Okay. Final question from me is the question of the revenue model, the economic model for these different products beyond financial messaging. You alluded to the fact that your overall gross margin was a lot lower this quarter because you're launching some of the new products. But it's not clear what your revenue model is, at least at the gross margin line for some of these products as well as what kind of a – for example your SingleCare or Rx Solutions kind of revenue will look like in terms of the economic model.

Sure. So let me talk to the partnership first because we will recognize only the portion that we generate. So that is a very high margin revenue dollar, maybe some potential commission paid out against it but that would be the highest, around 90%. And then we would have brand support, which we've talked about, which is really prelaunch activities, getting the client set to enter the EHR space with all the right information in the right place. That is more like an 80% margin. And then as we move to the distribution model, it's really -- it's still at 50-50. But as Doug said, we're working on some just third-party expenses that we might be able to recoup. So we hope to get that closer to 55%, 60% to us.

Great. Okay. Thank you. Step aside and let some others go at it. Thank you.

Thanks, Harvey.

[Operator Instructions] And it appears there are no further questions. I would like to turn the conference back over to Mr. Febbo for any additional or closing remarks.

I will just close with the value prop of we're in the right time at the right place. I think we've really turned the corner on growth. I think we have been a pioneer, and sometimes you're early on that, but we now have a very solid footing in the marketplace, I think where the dip in gross margin obviously is getting ourselves into another product but we've pre-messaged that. We knew that was happening. So we feel we've got a good control over it and very excited for the rest of the year to grow the channel, bring in partnerships and get top line growth and bottom line improvement.

Before we conclude today's call, I would like to provide the company's safe harbor statement that includes important caution regarding forward-looking statements made during today's call. Statements made by management during today's call may contain forward-looking statements within definition of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Act of 1934 as amended. These forward-looking statements should not be used to make an investment decision. The words anticipate, estimate, expect, possible and seeking and similar expressions identifying forward-looking statements, and they may speak only to the date that the statement was made. Examples of such forward-looking statements in the presentation include statements regarding the company's expectation of such greater top line growth throughout 2017; the company's expectation of top line acceleration continuing in Q2; the company's expectation that overall margins to improve throughout the year; the company's anticipation of continued growth in brands and channels to distribute brand messaging; the company's expectations that actually cash flow from operations to approximately neutral; the company's expectations of brand messaging revenue to grow considerably in 2017; the company's expectation to announce several new partnerships in the short term and throughout the year, which will show great reach and translate into greater revenue; the company's expectation to have continued success will expand in networks of EHRx/eRx [ph] channel partners; the company's expectation, that is TouchWorks partnership will add up to 45,000 HCP by end of 2017; the company's expectation to launch new products and services in 2017; the company's expectation of utilization by the existing partnerships to increase; the company's anticipation that its financial brand and clinical messagings will show strong growth throughout 2017. The company undertakes no obligation to publicly update or revise any forward-looking statements whether because of new information, future events or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in and contemplated by or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject and could affect our business and financial results are included in the company's annual report on Form 10-K for the fiscal year December 31, 2016. This form is available on the company's website and the SEC website at sec.gov. I would like to remind everyone that today's call is being recorded and will be available for replay throughout May 24 starting later this evening. Please see today's press release for our replay instructions. Before we end today's conference call, I would like to remind everyone that this call is being available for replay starting later today. Please refer to today's press release for replay instructions via company's website at www.optimizerx.com. Thank you for joining us today. That concludes our conference call. You may now disconnect.