Financial Data and Key Metrics Changes - Total revenue and adjusted revenue for Q2 2024 increased 6% year-over-year to $200.6 million, driven by growth in the prescriptions marketplace and pharma manufacturer solutions [21][22] - Adjusted EBITDA increased 22% year-over-year to $65.4 million, with an adjusted EBITDA margin of 32.6%, up 440 basis points year-over-year [23][31] - Net income was $6.7 million compared to $58.8 million in Q2 2023, which included a significant income tax benefit [22][23] Business Line Data and Key Metrics Changes - Prescription transactions revenue grew 7% year-over-year to $146.7 million, primarily due to an 8% increase in monthly active consumers [22] - Pharma Manufacturer Solutions revenue increased 9% year-over-year to $26.5 million, driven by organic growth and expansion in brand drug point-of-sale discount programs [22][23] - Subscriptions revenue declined 8% to $22 million due to the wind down of the Kroger Savings Club [22] Market Data and Key Metrics Changes - In 2023, GoodRx's platform saw approximately 350 million visits, with 25 million unique consumers filling prescriptions, saving about $15 billion [8] - The total out-of-pocket spend for prescription drugs in the first half of 2024 was estimated to be over $20 billion, highlighting the increasing relevance of GoodRx's services [9] Company Strategy and Development Direction - GoodRx aims to strengthen its value proposition to key constituents in the healthcare ecosystem, scale pharma manufacturer solutions, and deepen relationships with users [11][12] - The company is focusing on expanding its integrated savings program and enhancing direct contracting with retail pharmacies to improve their economics [29][30] - GoodRx is also working to embed more affordability programs directly into its platform, enhancing user experience and accessibility [56][59] Management's Comments on Operating Environment and Future Outlook - Management noted that the healthcare landscape is shifting, with increasing complexity in insurance benefit design and rising out-of-pocket costs for consumers [9][10] - The company expects to see revenue and adjusted revenue growth tempered in the short term due to ongoing pharmacy closures but anticipates a recovery as scripts migrate to other pharmacies [28][30] - For the full year 2024, GoodRx expects revenue and adjusted revenue to be at the lower end of the previously indicated range, with a focus on accelerating growth in the latter half of the year [25][30] Other Important Information - GoodRx ended Q2 2024 with $525 million in cash and cash equivalents and $657 million of outstanding debt, with a robust balance sheet [24] - The company has added senior talent from healthcare backgrounds and expanded its Board of Directors to enhance its strategic capabilities [18] Q&A Session Summary Question: Progress on HCP channel and its impact on macro - Management is increasing media assets in HCP locations and expects long-term returns from this investment, with early signs of success in individual offices [32][33] Question: Direct contracting margin profile - Direct contracting is expected to maintain margins similar to existing models, with no significant fluctuations anticipated [34][35] Question: Impact of Rite Aid store closures - Rite Aid's closures are expected to have a temporary impact on prescriptions and revenue, with efforts in place to redirect consumers to other pharmacies [40][41] Question: Uptake of Humira Biosimilar - The Humira Biosimilar program is in early stages, with expectations for future growth as more similar programs are developed [44][46] Question: ISP program feedback from PBM partners - There is positive feedback from PBM partners regarding the ISP program, with new deals signed to expand coverage to non-formulary medications [63][71]

Core Insights - GoodRx Holdings, Inc. reported revenue of $200.61 million for the quarter ended June 2024, reflecting a year-over-year increase of 5.8% [1] - The earnings per share (EPS) for the same period was $0.08, compared to $0.07 a year ago, with an EPS surprise of -11.11% against a consensus estimate of $0.09 [1] Revenue Breakdown - Revenue from prescription transactions was $146.70 million, exceeding the estimated $146.29 million, marking a year-over-year increase of 7.5% [5] - Revenue from other sources was $5.40 million, slightly above the estimated $5.35 million, representing a year-over-year change of 10.2% [6] - Revenue from Pharma Manufacturer Solutions was $26.50 million, below the estimated $27.48 million, but still showing a year-over-year increase of 9.1% [7] - Subscription revenue was reported at $22 million, surpassing the estimated $21.17 million, but reflecting a year-over-year decline of 8% [8] Consumer Metrics - Monthly Active Consumers were reported at 7 million, matching the average estimate from three analysts [3] - Total subscribers were reported at 696, falling short of the two-analyst average estimate of 763 [4] Stock Performance - GoodRx shares have returned +7.8% over the past month, contrasting with a -6.5% change in the Zacks S&P 500 composite [8] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [8]

GoodRx Holdings, Inc. (GDRX) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.08, delivering a surprise of -11.11%. Over the last four quarters, th ...

Group 1 - The upcoming report from GoodRx Holdings, Inc. (GDRX) is expected to show quarterly earnings of $0.09 per share, reflecting a 28.6% increase year over year [1] - Analysts forecast revenues of $200.68 million for the quarter, indicating a 5.8% year-over-year growth [1] - There has been no revision in the consensus EPS estimate for the quarter over the past 30 days, suggesting stability in analyst projections [1] Group 2 - Analysts estimate 'Revenue- Prescription transactions' at $146.29 million, representing a 7.2% increase from the previous year [4] - The consensus estimate for 'Revenue- Other' is $5.35 million, indicating a 9.2% increase from the prior-year quarter [4] - 'Revenue- Pharma Manufacturer Solutions' is projected to reach $27.48 million, reflecting a 13.1% increase year over year [4] Group 3 - The average prediction for 'Revenue- Subscription' is $21.17 million, which shows an 11.4% decrease compared to the year-ago quarter [5] - GoodRx shares have increased by 0.9% over the past month, contrasting with the Zacks S&P 500 composite's decline of 6.7% [5] - GDRX holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [5]

Core Viewpoint - GoodRx is facing significant industry headwinds and needs to double its market growth to support its current price target, which is challenging given its recent performance and market conditions [35][38]. Financial Performance - GoodRx is expected to report Q2 2024 revenue of approximately $200 million, reflecting a year-over-year increase of about 5% from $189.7 million in Q2 2023 [4]. - For FY 2024, revenue is projected to be around $800 million, up from $750.3 million in FY 2023, indicating a growth rate of approximately 7% to 8% [4]. - The company has struggled with cost growth outpacing revenue, necessitating a growth rate of over 10% to justify its stock price [7]. Market Position and Challenges - GoodRx currently holds only a 2% market share in its core business, indicating limited traction in a competitive landscape [9]. - The pharmaceutical industry is expected to grow at a compound annual growth rate (CAGR) of 6.15%, and GoodRx's growth is forecasted to align with this market growth, suggesting a lack of competitive advantage [25][26]. - The company has seen a 10% year-over-year increase in monthly active consumers, but this has been offset by a decline in subscription plans, which are crucial for stability [32]. Guidance and Valuation - Management's guidance suggests a high-end growth rate of 12%, but even this would only yield a minimal 4% upside based on discounted cash flow (DCF) analysis [35]. - The average price target for GoodRx is set at $7.50, indicating a potential downside of 13% from current pricing [3][35]. - Wall Street's price target has increased to $9.60, but this remains below the high-end of the analyst's expectations [16]. Strategic Initiatives - There is potential upside if GoodRx can secure major corporate or insurance partnerships, similar to its deal with Kroger, which could provide a steady customer base [1]. - Management has outlined several initiatives, including GLP-1, that are not fully accounted for in current guidance, but these are seen as necessary to address growth gaps [9].

First biosimilar with an exclusive low cash price on the GoodRx platform RIDGEFIELD, Conn. and SANTA MONICA, Calif., July 18, 2024 /PRNewswire/ -- Boehringer Ingelheim and GoodRx (Nasdaq: GDRX), the leading prescription savings platform in the U.S., announced today a patient affordability initiative to provide citrate-free Adalimumab-adbm, Boehringer's biosimilar to Humira® (adalimumab), at a low cash price available exclusively on GoodRx. This program is a significant step in addressing access and affordab ...

Source: JPstock / Shutterstock.com A pending or ongoing lawsuit isn't always a reliable indicator of stocks to sell, but, in many cases, investors should take litigation as a sign to dig beneath the surface. Source: II.studio / Shutterstock.com Still, these stocks to sell combine the worst of both worlds: They're facing ongoing lawsuits, and in each of the three cases, the stock itself is a stinker. GoodRx (NASDAQ:GDRX) is facing a fresh lawsuit claiming the company misrepresented Kroger's (NYSE:KR) total c ...

The cost of prescription medications in the U.S. has increased by 37% since 2014, far surpassing the rate of inflation, according to data from drug savings company GoodRx. On average, Americans pay 2 to 3 times more for prescription drugs than consumers in other developed countries, according to the White House. — CNBC's Annika Kim Constantino contributed to this report. It's a dynamic GoodRx deems "the big pinch." High medication costs are coupled with reduced insurance coverage. Analyzing coverage for ove ...

GoodRx aims to give consumers a better handle on prescription affordability. High costs are a barrier for consumers seeking all sorts of healthcare beyond prescription drugs. In some cases, costs may have nothing to do with the medical field. "A multitude of health-related issues can cascade from there," PYMNTS reported this week. "Women who lack reliable transportation are 17% less likely to get the preventive medical care they need. Compared to those with access to transportation, they are also 78% more l ...

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