GoodRx (GDRX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 8% year-over-year to $195.3 million, with net income of $4.0 million versus a net loss of $38.5 million in Q3 2023 and Adjusted EBITDA of $65.0 million (33.3% margin), up 21.5% year-over-year.

• Pharma Manufacturer Solutions delivered 77% year-over-year revenue growth, with 20%+ growth expected in Q4 and 2025.

• Over 7 million prescription-related consumers used offerings in Q3 2024.

• Prescription marketplace faced headwinds from retail pharmacy closures and reimbursement renegotiations, impacting growth.

• Direct contracts now cover eight of the top ten retailers, with over 30% of volume through direct or hybrid contracts.

Financial highlights

• Q3 total revenue was $195.3 million, up 8% year-over-year; Adjusted EBITDA was $65.0 million (33.3% margin), up from $53.5 million (28.1% margin) year-over-year.

• Prescription transactions revenue grew 4% to $140.4 million, despite a $2.4 million impact from Rite Aid closures.

• Subscription revenue declined 8% to $21.3 million due to the sunset of Kroger Savings Club, with 701,000 plans at quarter-end.

• Pharma Manufacturer Solutions revenue reached $28.1 million, up 77% year-over-year, aided by the absence of a $10 million contract termination payment in Q3 2023.

• Net cash from operating activities was $86.9 million in Q3, up from $60.3 million a year ago; cash and cash equivalents stood at $423.8 million at quarter end.

Outlook and guidance

• Q4 2024 revenue and adjusted revenue expected around $200 million; full-year revenue just under $795 million, representing 6% year-over-year growth.

• Pharma Manufacturer Solutions projected to grow 20% in Q4 and over 20% for full year 2025.

• Prescriptions marketplace revenue expected to decline 2% year-over-year in Q4.

• Adjusted EBITDA margin expected to be about 34% in Q4 and over 32% for the full year.

• 2025 revenue growth expected in the single-digit percentage range, with continued margin expansion.