GoodRx, a leading digital healthcare platform, held its second quarter 2024 earnings call, highlighting the company's performance, strategic initiatives, and financial outlook. The call was led by Aubrey Reynolds, Director of Investor Relations, with contributions from Scott Wagner, Interim CEO; Karsten Voermann, CFO; and Mike Walsh, President and EVP of Prescription Marketplace.
Financial Highlights
GoodRx reported a 6% year-over-year increase in total revenue and adjusted revenue to $200.6 million. The company's adjusted EBITDA increased by 22% year-over-year to $65.4 million, reflecting the positive impact of top-line growth and cost structure improvements. Net income for the quarter was $6.7 million, down from $58.8 million in the same period last year, primarily due to the absence of revenue from the Kroger Savings Club subscription offering and the restructuring of the vitaCare offering.
Strategic Initiatives
GoodRx's strategic priorities include strengthening its value proposition to key constituents in the healthcare ecosystem, scaling pharma manufacturer solutions, growing and deepening relationships with GoodRx users, building distinctive, frictionless GoodRx experiences, and building a winning team and culture. The company has made significant progress in these areas, including the expansion of its PBM partnerships and the signing of several cash programs for brand drugs.
Pharma Manufacturer Solutions
GoodRx's Pharma Manufacturer Solutions segment has been a key driver of growth, with a 9% year-over-year increase in revenue to $26.5 million. The company's focus on affordability and access solutions has resonated with both brands and patients, resulting in over 40 signed programs with different brands. Notable deals include partnerships with Boehringer Ingelheim for their Humira biosimilar and Sanofi for their Lantus relationship.
Retail Pharmacy Landscape
The retail pharmacy landscape continues to evolve, with Rite Aid announcing additional store closures and Walgreens indicating a shrinking footprint. GoodRx's ability to adapt to these changes is a testament to its resilience and flexibility. The company is actively working to mitigate the impact of these closures and is focused on expanding its PBM partnerships to drive volume and revenue.
Looking Ahead
GoodRx's outlook for the third quarter is cautious, with revenue and adjusted revenue expected to come in between $193 million and $197 million. The company's full-year 2024 revenue and adjusted revenue are expected to be at the lower end of the previously indicated $800 million to $810 million range, reflecting the impact of Rite Aid store closures and the sunsetting of the Kroger Savings Club. However, GoodRx remains optimistic about its growth prospects, particularly in the area of Pharma Manufacturer Solutions, which is expected to drive accelerating quarter-over-quarter and year-over-year growth in the fourth quarter.
Conclusion
GoodRx's second quarter 2024 earnings call provided a comprehensive update on the company's financial performance and strategic initiatives. The company's focus on affordability, access, and innovation is paying off, with significant growth in its Pharma Manufacturer Solutions segment and the signing of key partnerships with major brands. Despite challenges in the retail pharmacy landscape, GoodRx remains confident in its ability to navigate these changes and drive long-term growth.