GoodRx Hopes Key Grocer Customer Troubles Are Behind the Company

GoodRx disclosed during its fourth-quarter earnings 2021 call in February 2022, that the company was unlikely to achieve its full-year 2022 guidance after a grocery chain stopped accepting discounts for certain drugs.

During the company’s recent second quarter 2022 earnings call, GoodRx announced that the issue has been resolved although it does not anticipate a meaningful volume or revenue increase in the third quarter based on the rollout timeline of relevant communications to the grocery chain’s pharmacies, new user adoption and returning user levels. GoodRx expects third quarter revenue 2022 to be approximately $185 million.

GoodRx is focused on developing new services and incentives for users to register with the company, so that it can increase the company’s touch points and play a more active role in all aspects of their care.

GoodRx’s recent acquisition of vitaCare, a pharmacy services platform, added another innovative product and enhances its pharma focus capabilities. The company also announced a new strategic collaboration with Mayne Pharma Group Limited aimed at building awareness of NEXTSTELLIS® (E4/DRSP) oral contraceptive availability in the United States. In addition, the initiative is focused on improving access to and raising awareness of available birth control methods.

GoodRx’s second quarter 2022 revenues increased 9% to $191.8 million from $176.6 million in the second quarter of 2021. During the same period, GoodRx’s net loss of $1.4 million compared to net income of $31.1 million the previous year.

Second quarter prescription transactions revenue (PTR) decreased 7% year-over-year to $134.4 million, due to the grocery chain taking actions that impacted acceptance of discounted pricing for a subset of drugs from PBMs.

Second quarter subscription revenue grew 82% year-over-year to $26.0 million, due primarily to an increase in the monthly subscription fees for the GoodRx Gold program, and an 8% increase in subscription plans.

Second quarter pharma manufacturer solutions revenue grew 102% year-over-year to $26.6 million, driven primarily by deeper market penetration. Second quarter other revenue grew 13% year-over-year to $4.9 million, driven by an increase in the number of GoodRx Care visits on its platform.


Takeaway: GoodRx did not provide full year expectations at this time, as the full year impact of the grocer issue continues to be difficult to estimate