GoodRx Shares Sink to Lows as COVID Pinches Prescription Transactions

GoodRx Holdings reported earnings on Monday (Feb. 28) that, at least as far as investors were concerned, were not good enough, even as monthly active consumer counts gained double-digit percentages. COVID-19 was a continuing headwind to growth, particularly as concerns prescriptions and refills.

Shares were down 30%, touching an all-time low, to a bit more than $19.  For a bit of reference, the company went public roughly a year and a half ago for $33 a share.

Supplemental materials released by the company in tandem with earnings showed that monthly active consumers gained 14% to 6.4 million in the latest period. The number of subscription plans across the platform was up 51% to 1.2 million.

Prescription Transaction Growth

Fourth quarter prescription transactions revenue grew 21% to just under $159 million. But the company said — in a nod to the fact that revenues were at the lower end of its guided range —  that “We believe the growth of our prescription transactions offering continued to be impacted by COVID-19 headwinds, as healthcare utilization challenges continue and the cumulative impact of almost two years of reduced prescription starts — and therefore reduced refills — impacted new and returning users.” Flu season was also a headwind, according to company commentary.

Separately, during the company’s earnings call, Trevor Bezdek, co-CEO, said that growth came amid the company’s “newer, faster growing subscriptions offering,” where that line item grew 79% year over year to $17.4 million.

As to the quarter that is already in place, management said on the call that 2022 has “started soft with January volumes down months over month,” in a pattern that has not traditionally been seen before.

As for the headline numbers, revenues surged 39% to $213.3 million, which missed the Street at $217.5 million.

Though the Street may be focusing on guidance and where that guidance falls (at the lower end of Street ranges), management pointed on the call to the fact that within the seven months, GoodRx has had over 700,000 prescribers visit the company’s online platform. Management also pointed to a “high rate of adoption” among those providers.

Looking ahead, the company said that it would grow its top line in the mid-20% range.