h3 GoodRx Holdings Inc Reports Second Quarter 2024 Financial Resultsh3p GoodRx Holdings Inc NASDAQ G
Intellectia.AI Updated: 1970-01-01
GoodRx Holdings, Inc. Reports 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 | Q1 2024 | YoY Change | QoQ Change | Consensus Estimate | Actual vs. Consensus |
|---|---|---|---|---|---|---|
| Revenue | $200.6 million | $200.44M | +6% | +0.08% | $200.44 million | Beat by $0.16 million |
| Earnings Per Share (EPS) | $0.09 | $0.09 | -84.5% | 0% | $0.09 | Met |
GoodRx posted a solid revenue increase of 6% year-over-year, surpassing the consensus estimate by $0.16 million, while EPS met the consensus estimate. The revenue increase was largely driven by growth in prescription transactions, despite the decline in subscription revenue. However, net income saw a substantial decline because of a significant income tax benefit in the prior year.
Revenue Performance by Segment
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Prescription Transactions Revenue | $146.7 million | $136.5 million | +7% |
| Subscription Revenue | $22.0 million | $23.9 million | -8% |
| Pharma Manufacturer Solutions | $26.5 million | $24.3 million | +9% |
| Other Revenue | $5.4 million | $4.9 million | +10% |
Revenue from prescription transactions and pharma manufacturer solutions saw notable growth, driving overall revenue increases. However, the subscription revenue experienced a decline due to the termination of the Kroger Savings Club partnership.
Key Operational Data
| Operational Metric | Value |
|---|---|
| Net cash provided by operating activities | $9.7 million |
| Total cash and cash equivalents | $524.9 million |
| Total outstanding debt | $656.5 million |
| Number of prescription-related consumers | Over 7 million |
GoodRx continues to generate positive cash flow from operating activities, though it saw a decline compared to the same period last year, primarily driven by changes in operating assets and liabilities.
Comments from Company Officers
Interim CEO Scott Wagner highlighted the company's ongoing progress with retail and PBM partners and its efforts to strengthen its offerings, particularly around brand medications. CFO Karsten Voermann provided guidance details and emphasized maintaining a robust balance sheet and disciplined capital allocation.
Capital Allocation and Refinancing
In July 2024, GoodRx amended its First Lien Credit Agreement, establishing a new $500 million term loan and extended the revolving credit facility's maturity date to April 2029. The company repaid existing term loans using new loan proceeds and cash on hand.
Forward Guidance
Q3 2024 Guidance: - Revenue and Adjusted Revenue between $193 million and $197 million - Adjusted EBITDA Margin of approximately 32%
Full-Year 2024 Guidance: - Revenue and Adjusted Revenue at the lower end of $800 million to $810 million - Adjusted EBITDA over $255 million, a 17% increase from 2023
Stock Price Movement
Post-earnings release, GoodRx’s stock saw a decrease of 9.58%.
In summary, GoodRx showcased solid revenue growth in the second quarter, driven by prescription transactions and pharma manufacturer solutions. While facing challenges such as a decline in subscription revenue, the company is taking steps to fortify its financial position and maintain steady growth through disciplined capital allocation and strategic guidance.
