GoodRx(US:GDRX)2024-11-07 19:01Financial Performance - Revenue for Q3 2024 increased by 8% to $195.3 million compared to $180.0 million in Q3 2023[52] - Net income for Q3 2024 was $4.0 million with a net income margin of 2.0%, a significant improvement from a net loss of $38.5 million and a margin of -21.4% in Q3 2023[52] - Adjusted EBITDA for Q3 2024 rose to $65.0 million, representing an Adjusted EBITDA Margin of 33.3%, up from $53.5 million and 28.1% in Q3 2023[52] - Adjusted Revenue for the nine months ended September 30, 2024, increased by 5% to $593.7 million compared to $563.6 million in the same period of 2023[52] - Adjusted EBITDA for the nine months ended September 30, 2024, was $193.2 million, with an Adjusted EBITDA Margin of 32.5%[52] - Total revenue increased to $195.251 million for the three months ended September 30, 2024, up 8.5% from $179.958 million in the prior year[64] - Total revenue for the nine months ended September 30, 2024, was $593.7 million, an increase of $40.1 million or 7% compared to $553.6 million for the same period in 2023[77] Consumer Metrics - Monthly Active Consumers reached over 7 million as of September 30, 2024, reflecting the total of prescription-related consumers using GoodRx[54] - Monthly Active Consumers for Q3 2024 were 6.5 million, slightly down from 6.7 million in Q1 2024[56] - Monthly Active Consumers increased by 8% year-to-date compared to the same period of 2023[78] Subscription Trends - Subscription plans decreased to 701,000 as of September 30, 2024, down from 930,000 a year earlier[58] - The company has observed a sequential decline in subscription plans due to reduced marketing spend related to the Kroger Savings offering, which ended in July 2024[57] - Subscription revenue decreased by $1.934 million, or 8%, year-over-year, attributed to a decline in subscription plans following the sunset of Kroger Savings[63] Revenue Breakdown - Prescription transactions revenue rose by $4.992 million, or 4%, year-over-year, driven by a 7% increase in Monthly Active Consumers[63] - Pharma manufacturer solutions revenue surged by $12.239 million, or 77%, year-over-year, primarily due to a $10 million client contract termination payment recognized in the prior year[64] Expenses and Costs - Total costs and operating expenses decreased to $174.844 million, down from $218.288 million year-over-year, primarily due to reductions in various expense categories[64] - General and administrative expenses decreased by $9.698 million, or 27%, year-over-year, mainly due to a reduction in stock-based compensation and legal settlement costs[69] - Cost of revenue decreased by $15.7 million, or 30%, year-over-year, primarily due to a reduction in outsourced and in-house personnel costs[79] - Product development and technology expenses decreased by $11.8 million, or 11%, year-over-year, mainly due to a loss recognized on the disposal of certain capitalized software[80] - Sales and marketing expenses increased by $25.7 million, or 10%, year-over-year, driven by higher payroll and advertising expenses[81] - General and administrative expenses decreased by $0.8 million, or 1%, year-over-year, primarily due to a decrease in stock-based compensation expenses[84] - Depreciation and amortization expenses decreased by $13.6 million, or 21%, year-over-year, mainly due to accelerated amortization recognized last year[85] Cash Flow - Net cash provided by operating activities increased by $16.7 million year-over-year to $139.1 million[94] - Net cash used in investing activities increased by $10.8 million year-over-year, primarily due to higher cash paid for software development[95] - Net cash used in financing activities increased by $292.2 million year-over-year, driven by higher stock repurchase payments and net repayments on the term loan[96] Tax and Interest - Income tax expense for the three months ended September 30, 2024, was $4.147 million, compared to an income tax benefit of $8.106 million in the prior year[75] - Interest income fell by $3.852 million, or 45%, year-over-year, due to a lower average balance of cash equivalents[73] Future Outlook - The company anticipates that recent retail pharmacy closures will have a transient adverse impact on prescription volume and revenue[53]