GoodRx Holdings Inc Releases Second Quarter 2024 Financial Results

Intellectia.AI1970-01-01

Illustration by Intellectia.AI

GoodRx Holdings, Inc. Releases Second Quarter 2024 Financial Results

GoodRx Holdings, Inc. (NASDAQ:GDRX), the leading prescription savings platform in the U.S., reported its financial results for the second quarter of 2024.

Key Financial Metrics

Metric	Q2 2024	Q2 2023	YoY Change	Consensus Estimate	Beat/Miss
Revenue	$200.6M	$189.7M	+6%	$200.44M	Beat
EPS	$0.09	$0.09	0%	$0.09	Inline
Net Income	$6.7M	$58.8M	-88.6%	Not provided	Not applicable
Adjusted Net Income	$32.4M	$28.4M	+14.1%	Not provided	Not applicable
Adjusted EBITDA	$65.4M	$53.5M	+22.2%	Not provided	Not applicable
Adjusted EBITDA Margin	32.6%	28.2%	+4.4pp	Not provided	Not applicable

Interpretation: GoodRx met its revenue and EPS consensus estimates, demonstrating stable performance. Revenue increased year-over-year by 6%, driven largely by growth in the prescription transactions segment. However, net income saw a significant decline primarily due to the absence of a $46.7 million income tax benefit recognized in the prior year. Adjusted metrics indicate operational improvements and cost efficiencies.

Revenue Performance by Segment

Segment	Q2 2024	Q2 2023	YoY Change
Prescription Transactions	$146.7M	$136.5M	+7%
Subscription Revenue	$22.0M	$23.9M	-8%
Pharma Manufacturer Solutions	$26.5M	$24.3M	+9%
Other Revenue	$5.4M	$4.9M	+10%

Interpretation: Revenue from the prescription transactions segment grew 7% year-over-year, primarily driven by an 8% increase in Monthly Active Consumers. Subscription revenue decreased by 8% due to the termination of the Kroger Savings Club. Pharma manufacturer solutions revenue increased by 9%, driven by ongoing market penetration and growth in point-of-sale discount programs. Other revenue grew by 10%.

Key Operational Metrics

Operational Metric	Q2 2024	Q2 2023	YoY Change
Number of Consumers	7 million	Not provided	Not applicable

CEO Comments: "We're proud of the progress we're making against our key priorities, especially when it comes to strengthening our relationships with retail and PBM partners, scaling our offerings around brand medications, and deepening our relationships with patients," said Scott Wagner, Interim Chief Executive Officer of GoodRx. "While the retail pharmacy space is experiencing a bit of choppiness, we believe GoodRx's value proposition of providing affordable access to medications has never been more important and we are creating ways to enrich that value proposition both for healthcare ecosystem partners and, most importantly, for our consumers."

Dividends or Share Repurchase Program

No information on dividends or share repurchase programs was provided.

Forward Guidance

For the third quarter of 2024, GoodRx is guiding to revenue and adjusted revenue between $193 million and $197 million and Adjusted EBITDA Margin of about 32%. For the full year 2024, the Company expects revenue and adjusted revenue to be at the lower end of the previous guidance range of $800 million to $810 million. The full year guidance includes approximately $5 million of anticipated impact from Rite Aid's store closures. The Company also anticipates over $255 million of Adjusted EBITDA, up about 17% from 2023.

Stock Price Movement

The company's stock price fell by 8.36% following the earnings release, indicating an adverse market reaction possibly driven by the drop in net income and cautious forward guidance.

In summary, GoodRx demonstrated stable revenue growth and operational improvements, despite the decline in net income. The market reaction reflects concerns over the impact of external challenges and future uncertainties.