SANTA MONICA, Calif.--(BUSINESS WIRE)--GoodRx Holdings, Inc. (Nasdaq: GDRX) (“GoodRx” or the “Company”), the leading destination for prescription savings in the U.S., has released its financial results for the fourth quarter and full year 2023, which are consistent with its preliminary results announced on January 10, 2024. Fourth Quarter 2023 Highlights Revenue1 and Adjusted Revenue1,2 of $196.6 million Net loss of $25.9 million; Net loss margin of 13.2% Adjusted Net Income2 of $31.1 million; Adju ...

PART I [Business](index=7&type=section&id=Item%201.%20Business) GoodRx operates a digital healthcare platform offering prescription price comparison, subscriptions, and pharma solutions, generating revenue primarily from PBM fees - The company's mission is to help Americans access healthcare at affordable prices by building a leading consumer-focused digital platform[21](index=21&type=chunk) - GoodRx estimates its total addressable market (TAM) to be between **$534 billion and $607 billion**, comprising a prescription opportunity and a pharma manufacturer solutions opportunity[27](index=27&type=chunk) - The business model primarily relies on its prescription transactions offering, where it earns a fee from PBMs when a consumer saves money on a prescription using a GoodRx code, also having direct contractual agreements with select pharmacies[34](index=34&type=chunk)[36](index=36&type=chunk)[39](index=39&type=chunk) - Key growth strategies include attracting new consumers, encouraging existing consumers to adopt multiple offerings, building the brand, investing in product expansion, and pursuing strategic partnerships[50](index=50&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) Employee Headcount as of December 31, 2023 | Category | Number of Employees | | :--- | :--- | | Total Employees | 694 | | Product Development & Technology | 373 | | Sales & Marketing | 175 | | General & Administrative | 135 | | Customer Service | 11 | - The company is subject to numerous data privacy and security laws, including HIPAA, the CCPA/CPRA, and a negotiated settlement with the Federal Trade Commission (FTC)[68](index=68&type=chunk) [Risk Factors](index=17&type=page&id=Item%201A.%20Risk%20Factors) GoodRx faces risks from revenue concentration, PBM reliance, competitive pressures, evolving regulations, and its dual-class stock structure - The company's revenue is highly concentrated in its prescription transactions offering, which accounted for **73% of total revenue** for the year ended December 31, 2023[93](index=93&type=chunk) - A significant portion of revenue is derived from a limited number of PBMs; in 2023, the three largest PBM partners accounted for **32% of total revenue**, and the loss of any major PBM could negatively impact consumer pricing[103](index=103&type=chunk) - The "grocer issue," where a large grocery chain stopped accepting certain PBM pricing in 2022, had a **material adverse impact** on results and is expected to continue to have a sustained adverse impact[96](index=96&type=chunk)[108](index=108&type=chunk) - The company faces risks from actual or perceived failures to comply with data protection and privacy laws, such as the CCPA and HIPAA, and is subject to a negotiated settlement with the FTC regarding its privacy and security practices[148](index=148&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) - GoodRx is a **"controlled company"** due to significant voting power held by certain stockholders, which exempts it from certain Nasdaq corporate governance requirements, such as having a majority-independent board[247](index=247&type=chunk) [Unresolved Staff Comments](index=53&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - Not applicable[274](index=274&type=chunk) [Cybersecurity](index=53&type=section&id=Item%201C.%20Cybersecurity) GoodRx maintains comprehensive cybersecurity and privacy programs with Board oversight, reporting no material risks or incidents - The company has established Cybersecurity and Privacy Programs that include security and privacy awareness training, risk assessments, an incident response plan, and a third-party risk management process[275](index=275&type=chunk)[276](index=276&type=chunk) - The Board's Compliance Committee oversees cybersecurity and data privacy risks, receiving periodic reports from management, with the full Board receiving a comprehensive review at least annually[277](index=277&type=chunk)[278](index=278&type=chunk) - GoodRx has not identified any risks from known cybersecurity threats or prior incidents that are reasonably likely to materially affect the company[276](index=276&type=chunk) [Properties](index=54&type=section&id=Item%202.%20Properties) GoodRx's corporate headquarters is leased in Santa Monica, California, with additional satellite offices deemed adequate - Corporate headquarters are leased in Santa Monica, California, covering approximately **74,000 square feet** with a lease term expiring in **2031**[281](index=281&type=chunk) [Legal Proceedings](index=54&type=section&id=Item%203.%20Legal%20Proceedings) GoodRx faces privacy-related class action lawsuits, accruing a $13.0 million probable loss for a proposed settlement - The company is a defendant in multiple putative class action lawsuits alleging improper communication of consumer information to third parties and violations of various privacy laws[541](index=541&type=chunk) - A proposed settlement agreement has been reached for **$13.0 million** to resolve a nationwide class action matter, accrued as a probable loss as of December 31, 2023, though subject to final court approval[544](index=544&type=chunk)[546](index=546&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports that this item is not applicable - Not applicable[283](index=283&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=55&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) GoodRx's Class A common stock trades on Nasdaq, with no planned dividends, and recent share repurchases totaling 14.1 million shares - The company does not intend to pay dividends for the foreseeable future, retaining earnings to finance operations and growth[288](index=288&type=chunk)[257](index=257&type=chunk) Q4 2023 Share Repurchases | Period | Total Shares Repurchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2023 | — | $ — | | Nov 2023 | 13,058,343 | $5.50 | | Dec 2023 | 1,003,953 | $5.98 | | **Total Q4** | **14,062,296** | | - As of December 31, 2023, approximately **$44.3 million** remained available for repurchases under the existing program, with a new **$450.0 million** stock repurchase program authorized on February 27, 2024[292](index=292&type=chunk)[304](index=304&type=chunk) - As of December 31, 2023, the company had used approximately **$281.4 million** of its IPO net proceeds for acquisitions (**$164.4 million**) and stock repurchases (**$117.0 million**), with **$605.5 million** remaining[295](index=295&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) GoodRx's 2023 revenue decreased to $750.3 million, with an improved net loss and increased Adjusted EBITDA, while implementing a restructuring plan Key Financial Results (FY 2023 vs. FY 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Revenue | $750.3 million | $766.6 million | | Net Loss | $(8.9) million | $(32.8) million | | Net Loss Margin | (1.2%) | (4.3%) | | Adjusted EBITDA | $217.4 million | $213.5 million | | Adjusted EBITDA Margin | 28.6% | 27.8% | - The August 2023 Restructuring Plan, which de-prioritized certain pharma manufacturer solutions, is expected to generate **$18.0 million to $22.0 million** in annualized run-rate cash savings[300](index=300&type=chunk) Key Operating Metrics | Metric | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Monthly Active Consumers | 6.4 million | 5.9 million | | Subscription Plans (as of period end) | 884 thousand | 1,030 thousand | - Prescription transactions revenue remained flat year-over-year at **$550.7 million**, as a **3% increase** in average Monthly Active Consumers was offset by pricing effects from the "grocer issue"[324](index=324&type=chunk)[325](index=325&type=chunk) - Pharma manufacturer solutions revenue decreased **14% to $85.1 million**, primarily driven by a **$10.0 million** contract termination payment related to the Restructuring Plan[324](index=324&type=chunk)[327](index=327&type=chunk) - The company released **$54.6 million** of its valuation allowance against deferred tax assets in 2023, resulting in an income tax benefit of **$46.7 million** for the year[343](index=343&type=chunk)[526](index=526&type=chunk) - As of December 31, 2023, the company had strong liquidity with **$672.3 million** in cash and cash equivalents and **$90.8 million** available under its revolving credit facility[344](index=344&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) GoodRx's primary market risk is interest rate fluctuations on its floating-rate debt, with no foreign currency exposure - The primary market risk is interest rate risk from debt with floating interest rates; a hypothetical **100 basis point rate increase** would have increased 2023 interest expense by **$6.7 million**[369](index=369&type=chunk) - The company operates only within the United States and has no foreign currency exposure[368](index=368&type=chunk) [Financial Statements and Supplementary Data](index=67&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section formally incorporates the company's audited consolidated financial statements and supplementary data, which are appended to the report starting on page F-1 - This item refers to the full financial statements and supplementary data appended to the Form 10-K, which can be found in Item 15[371](index=371&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=67&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[372](index=372&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - Management concluded that as of December 31, 2023, the company's disclosure controls and procedures were **effective**[374](index=374&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2023, based on the COSO framework[377](index=377&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended December 31, 2023, that materially affected, or are reasonably likely to materially affect, internal controls[379](index=379&type=chunk) [Other Information](index=68&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans during Q4 2023 - No directors or officers adopted or terminated a Rule 10b5-1 trading plan or any non-Rule 10b5-1 trading arrangement during the fourth quarter of 2023[380](index=380&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=69&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - As of February 29, 2024, key executive officers include Scott Wagner (Interim CEO), Karsten Voermann (CFO), Trevor Bezdek (Chairman), and Douglas Hirsch (Chief Mission Officer)[384](index=384&type=chunk) - The required information for this item is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[384](index=384&type=chunk) [Executive Compensation](index=69&type=section&id=Item%2011.%20Executive%20Compensation) The information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders - The required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[385](index=385&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=69&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) The information regarding security ownership of certain beneficial owners and management is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders - The required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[386](index=386&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=69&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders - The required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[387](index=387&type=chunk) [Principal Accountant Fees and Services](index=69&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders - The required information is incorporated by reference from the definitive Proxy Statement for the 2024 Annual Meeting of Stockholders[388](index=388&type=chunk) PART IV [Exhibits, Financial Statement Schedules](index=70&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the Form 10-K and notes the omission of financial statement schedules - This item provides an index of all exhibits filed as part of the Annual Report, including corporate governance documents, material contracts, and executive compensation plans[392](index=392&type=chunk)[393](index=393&type=chunk) - All financial statement schedules were omitted because they were not applicable, not material, or the information was included elsewhere in the filing[391](index=391&type=chunk) [Form 10-K Summary](index=74&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - None[399](index=399&type=chunk) [Financial Statements and Notes](index=76&type=section&id=Financial%20Statements%20and%20Notes) The audited consolidated financial statements for 2023 present assets, liabilities, net loss, and cash flows, with detailed notes on key accounting policies and contingencies Consolidated Balance Sheet Highlights (as of December 31, 2023) | Account | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $672.3 | | Total Assets | $1,588.8 | | Total Liabilities | $826.8 | | Total Stockholders' Equity | $762.0 | Consolidated Statement of Operations (Year Ended December 31, 2023) | Account | Amount (in millions) | | :--- | :--- | | Total Revenue | $750.3 | | Operating Loss | $(27.0) | | Net Loss | $(8.9) | | Loss Per Share (Basic & Diluted) | $(0.02) | Consolidated Statement of Cash Flows (Year Ended December 31, 2023) | Account | Amount (in millions) | | :--- | :--- | | Net cash provided by operating activities | $138.3 | | Net cash used in investing activities | $(55.8) | | Net cash used in financing activities | $(167.4) | - The August 2023 Restructuring Plan resulted in total costs of **$75.2 million** for the year, comprising **$55.7 million** in non-cash charges (primarily accelerated amortization) and **$19.4 million** in cash charges (personnel and contract termination costs)[573](index=573&type=chunk)[574](index=574&type=chunk) - The company has a First Lien Term Loan Facility with a principal balance of **$661.8 million** as of December 31, 2023, maturing in October 2025[532](index=532&type=chunk)[536](index=536&type=chunk)

GoodRx Holdings, Inc. (GDRX) is expected to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 29, 2024, might help the stock move higher if these key nu ...

GoodRx Holdings, Inc. (GDRX) closed the last trading session at $6, gaining 11.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $7.67 indicates a 27.8% upside potential.The average comprises 15 short-term price targets ranging from a low of $4.50 to a high of $12, with a standard deviation of $2.17. While the lowest estimate indicates a decline of 25% from the current price level ...

During flu season, you want to be on top of your strategy on how to quickly get better if you’re sick.Each month, PYMNTS tracks the most popular mobile apps in the prescription space for the Provider Ranking of Prescription Apps. By observing app use metrics, we score applications to determine the top players.For the sixth consecutive month, GoodRx leads the pack. CVS Caremark, CenterWell Pharmacy and Nimble Rx show the most upward score variation, each gaining three points. Publix Pharmacy loses the most g ...

PixelsEffect Summary I am recommending a buy rating for GoodRx Holdings (NASDAQ:GDRX) stock. I believe the GDRX solution has a very strong value proposition for all the parties in its network, which should continue to support adoption. With more consumers joining the network because of the cost savings, it will attract more PBMs to join the network, which will form a virtuous cycle, allowing GDRX to grow along with more volume routing through its network. Company description GDRX main business is to hel ...

SANTA MONICA, Calif.--(BUSINESS WIRE)--GoodRx Holdings, Inc. (Nasdaq: GDRX) (“GoodRx” or the “Company”), the leading destination for prescription savings, today announced its intention to refinance its first lien credit facilities. The Company is seeking to refinance its first lien term loan facility and concurrently amend its revolving credit facility to extend the maturity date. The terms of the proposed refinancing, if any, will be disclosed upon the completion of the transaction, which is expected to o ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

GoodRx Holdings, Inc. (GDRX) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revis ...

GoodRx Holdings, Inc. (GDRX) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, GDRX's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."Considered an important signifier for a bullish breakout, a golden cross is a technical chart pattern that's formed when a stock's short-term moving average breaks above a longer-term moving average; the most common crossover involves the 50-day and the ...