Good afternoon, everyone, and thank you for joining OptimizeRx's First Quarter Fiscal 2025 Earnings Conference Call. With us today is Chief Executive Officer Steve Silvestro. He is joined by Chief Financial Officer Ed Stelmakh, Chief Legal Officer Marion Odence-Ford, and Senior Vice President of Corporate Finance Andrew De Silva. At the conclusion of today's call, I will provide some important cautions regarding the forward-looking statements made by management during today's call. The company will also be discussing certain non-GAAP financial measures which it believes are useful in evaluating the company's operating results. A reconciliation of such non-GAAP financial measures is included in the earnings release the company issued this afternoon, as well as in the Investor Relations section of the company's website.
I would like to remind everyone that today's call has been recorded and will be made available for replay as an audio recording of this conference call on the Investor Relations section of the company's website. I would now like to turn the conference over to OptimizeRx CEO Steve Silvestro. Mr. Silvestro, please go ahead.
Thank you, Operator, and good afternoon to everyone joining today's first-quarter 2025 call. I'm delighted to share our first-quarter 2025 results, which came in ahead of both consensus estimates and our internal expectations. Momentum from Q4 has continued into 2025, with Q1 revenues increasing 11% year-over-year to $21.9 million, with adjusted EBITDA coming in at $1.5 million, an improvement of nearly $2 million year-over-year during what is typically our seasonally weakest quarter. Moreover, our contracted revenue continues to increase to more than 20% year-over-year, which positions us favorably going into the back half of the year. I believe this is a clear indicator that our focus on operational excellence, while ensuring we delight our customers and forge stronger relationships with valued business partners, is bearing fruit.
In addition, despite media coverage in the market related to initiatives being implemented by the new administration, we are not seeing significant headwinds directly impacting our business at this time, and we are closely monitoring pharma-leading indicators by continuously engaging with our clients. With that said, I'm happy to say we are increasing our guidance for the year and are looking for revenue to come in between $101 million and $106 million, with an adjusted EBITDA to be between $13 million and $15 million. We believe that the combination of disciplined cost management and targeted upselling strategies centered around educating customers on budget allocation approaches that drive script lift has positioned us strongly for success in 2025 and beyond. This progress is bringing our goal of achieving Rule of 40 performance in the coming years well within reach.
Additionally, we're seeing early momentum in our transition to a subscription-based model, with over 5% of our projected annual revenue already converted to subscription contracts for 2025. Before moving on, I want to take a moment and thank our market-leading team. We deeply appreciate the dedication and hard work of everyone at OptimizeRx as we navigate an increasingly complex, dynamic, and still emerging digital pharma marketing landscape. The industry is undergoing a significant shift, and our products and services are poised to fundamentally reshape how pharmaceutical companies, patients, and prescribers engage. Our mission-driven culture not only fuels this transformation but also positions us to attract, retain, and strengthen the critical relationships a leading technology company needs to be a trusted and enduring partner. We believe OptimizeRx is uniquely positioned to drive significant value creation and deliver long-term sustainable shareholder growth.
By leveraging one of the largest point-of-care networks in the country, we enable pharmaceutical manufacturers to reach healthcare providers directly at the point of care. Building on this foundation, we have combined our unmatched network with a purpose-built Omnichannel Technology Platform with leading patient-finding capabilities through DAAP and micro-neighborhood targeting that is redefining how pharmaceutical companies, physicians, and patients engage, receive, and digest information, ultimately helping to improve patient outcomes. These advantages give us a distinct and durable competitive edge. With unrivaled reach at the point of care and directly to consumers, we believe we are the only company in the industry capable of effectively connecting with both doctors and patients at scale. This unique position has allowed us to develop the broadest suite of solutions in the market, empowering us to meet the diverse and evolving needs of our customers across every stage of the product lifecycle.
As mentioned on our last call, our business continues to evolve. A key focus for the company will be drawing greater attention to our reach and scalability while positioning ourselves as a strategic partner in addressing some of the most critical commercialization challenges facing pharma today. These include improving brand visibility, reducing script abandonment, enhancing interoperability, and supporting a growing shift toward more complex and costly specialty medications. I'm confident that success in these areas, combined with the strong performance we are already delivering, including ROI exceeding 10 to 1 and script lifts of 25% on programs running just six months, will drive significant short and long-term shareholder value. Moreover, this momentum will position us to capture greater market share while also expanding the overall size of pharma's digital spend, which already exceeds $10 billion annually.
Our customers remain deeply embedded within our ecosystem of offerings, and it remains our goal to help them stay present throughout the patient care journey across the integrated HCP and DTC business at OptimizeRx. With that, I'd like to turn the time over to our CFO, Ed Stelmakh, who will walk us through our financial details. Ed?
Thanks, Steve, and good afternoon, everyone. As with all our calls, a press release was issued this afternoon with the results of our first quarter ended March 31, 2025. A copy is available for viewing and may be downloaded from the Investor Relations section of our website, and additional information can be obtained through our forthcoming 10-Q. First-quarter 2025 revenue was $21.9 million, an increase of 11% from the $19.7 million we recognized during the same period in 2024. Gross margin for the quarter decreased from 62% in the quarter ended March 31, 2024, to 60.9% in the quarter ended March 31, 2025. Year-on-year change in gross margin was primarily due to product and channel partner mix, as we did see an increase in DTC-related managed service revenue.