GoodRx Q4 Earnings: Growth in Pharma Solutions, Subscription Shift

GoodRx Holdings Inc. Achieves Modest Growth in Q4 Earnings

GoodRx Holdings Inc. (NASDAQ: GDRX) reported a revenue of $198.6 million for the fourth quarter, showing a slight year-over-year increase of 1%. However, this performance fell short compared to the management's expectations of around $200 million and the consensus estimate of approximately $199.75 million.

Yearly Sales Under Expectations

The total sales for the fiscal year reached $792.3 million, which did not meet the guidance aimed at around $794 million. The adjusted earnings per share (EPS) for the quarter was recorded at 9 cents, up from 8 cents in the same quarter last year, yet it missed the forecasted 10 cents.

Prescription Transactions Revenue Growth

During Q4, revenue from prescription transactions rose by 0.8% to $144.9 million. For the full year, prescription transaction revenue saw a more robust increase of 5%, totaling $577.5 million. This growth was fueled by a notable 7% organic increase in monthly active consumers, which included the positive performance of an integrated savings program.

Consumer Engagement Insights

As GoodRx closed out the fourth quarter, over 7 million consumers engaged with the platform for prescription-related services, with 6.6 million being monthly active users. Among them, approximately 684,000 were subscribed to various plans.

Subscription Revenue Decline

However, the subscription revenue saw a decline of 8% for the year, totaling $86.5 million. This drop was primarily attributed to a reduction in subscription plans following the discontinuation of the Kroger Savings Club partnership. In the fourth quarter alone, subscription revenue decreased by 10.7%, amounting to $20.68 million.

Pharma Manufacturer Solutions Surge

On a more positive note, revenue from pharma manufacturer solutions experienced a significant jump from $24.4 million to $28.1 million in Q4. For the full year, this segment surged by 26% to $107.2 million, mainly due to organic growth as GoodRx expands its market presence with drug manufacturers.

Adjusted EBITDA and Future Outlook

The company reported an adjusted EBITDA of $67.08 million for the fourth quarter and $260.2 million for the entire year. For fiscal year 2025, GoodRx anticipates a revenue outlook between $810 million and $840 million, reflecting a growth range of 2% to 6% compared to the consensus of $825.57 million. Adjusted EBITDA is expected to land between $270 million to $286 million.

Guidance for 2025

Looking ahead, GoodRx projects first-quarter 2025 revenues to fall between $201 million and $205 million, which indicates a growth rate of 2% to 4% against the consensus of $202.53 million. They also expect an adjusted EBITDA margin of about 33% for the quarter.

Stock Market Performance

In terms of stock performance, shares of GDRX have indicated an increase of 4.6%, reaching $5.12 at the latest market check.

Frequently Asked Questions

What were the Q4 revenue figures for GoodRx Holdings Inc.?

GoodRx reported a fourth-quarter revenue of $198.6 million, reflecting a 1% increase from the prior year.

How did GoodRx perform in terms of subscription revenue?

The company saw an 8% decrease in subscription revenue for 2024, totaling $86.5 million due to various factors including the end of a partnership program.

What was the adjustment in EPS for the quarter?

The adjusted EPS for GoodRx in Q4 was 9 cents, up from 8 cents the previous year but lower than the consensus estimate of 10 cents.

What is the future revenue forecast for GoodRx?

GoodRx anticipates a revenue outlook for fiscal 2025 between $810 million and $840 million.

What has driven the growth in pharma manufacturer solutions revenue?

The growth in pharma manufacturer solutions, which increased by 26% last year, is primarily attributed to organic market expansion and deeper engagement with pharmaceutical companies.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

Contact Henry Turner privately here. Or send an email with ATTN: Henry Turner as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.