GoodRx(US:GDRX)2023-02-28 16:00Revenue and Financial Performance - Revenue for the year ended December 31, 2022, grew 3% to $766.6 million from $745.4 million in 2021[304] - Net loss for 2022 was $32.8 million, with a net loss margin of 4.3%, compared to a net loss of $25.3 million and a margin of 3.4% in 2021[304] - Adjusted EBITDA for 2022 was $213.5 million, with an Adjusted EBITDA Margin of 27.8%, down from $229.6 million and 30.8% in 2021[304] - The estimated impact of the "grocer issue" on prescription transactions revenue in 2022 was approximately $110.0 million to $120.0 million[302] - Prescription transactions revenue decreased by $42.8 million, or 7%, year-over-year, primarily due to a 2% decrease in average Monthly Active Consumers[323] Consumer Metrics - Monthly Active Consumers for December 2022 were reported at 5.9 million, reflecting a decline due to the grocer issue[309] - Subscription plans as of December 31, 2022, totaled 1,030,000, down from 1,210,000 in December 2021[311] - The company expects continued adverse impacts on prescription transactions revenue and Monthly Active Consumers due to ongoing consumer response uncertainties[302] Revenue Streams - Pharma manufacturer solutions revenue is expected to grow as a percentage of total revenue in the near to medium term[318] - Pharma manufacturer solutions revenue increased by $26.1 million, or 36%, year-over-year, driven by organic growth and the acquisition of vitaCare, contributing $5.6 million in 2022[324] - Subscription revenue increased by $36.2 million, or 60%, year-over-year, despite a 15% decrease in the number of subscription plans to 1,030 thousand[325] Costs and Expenses - Cost of revenue increased by $18.4 million, or 39%, year-over-year, primarily due to increased personnel costs and fulfillment costs related to the vitaCare acquisition[328] - Product development and technology expenses increased by $17.3 million, or 14%, year-over-year, driven by higher payroll costs due to increased headcount[329] - Sales and marketing expenses decreased by $12.6 million, or 3%, year-over-year, primarily due to a $69.9 million decrease in advertising expenses[330] - General and administrative expenses decreased by $9.9 million, or 6%, year-over-year, mainly due to a decrease in stock-based compensation expense[331] - Depreciation and amortization expenses increased by $19.6 million, or 57%, year-over-year, primarily due to higher capitalized software amortization[332] Cash Flow and Investments - GoodRx Holdings, Inc. reported a net cash provided by operating activities of $146.78 million for the year ended December 31, 2022, a decrease of $32.0 million compared to $178.78 million in 2021[341] - The net cash used in investing activities increased by $31.8 million in 2022, totaling $210.50 million, primarily due to a $27.6 million increase in cash paid for acquisitions and a $21.4 million increase in software development costs[343] - Net cash used in financing activities rose by $89.7 million in 2022, amounting to $120.23 million, largely driven by $101.7 million for repurchases of Class A common stock[344] - The company reported a net cash change of $(183.94) million in cash, cash equivalents, and restricted cash for 2022, compared to $(30.48) million in 2021[341] Interest and Taxation - Interest income increased by $9.2 million year-over-year, primarily due to higher interest rates on cash equivalents[333] - As of December 31, 2022, GoodRx Holdings, Inc. maintained a full valuation allowance of $57.1 million against its net deferred tax assets in excess of amortizable goodwill[359] - A hypothetical 100 basis point increase in interest rates would have increased GoodRx's interest expense by $6.8 million for the year ended December 31, 2022[363] Economic Conditions - GoodRx Holdings, Inc. does not believe inflation has had a material effect on its business, but acknowledges potential risks if costs become subject to significant inflationary pressures[364]