GoodRx Reports Fourth Quarter and Full Year 2024 Results

Fourth Quarter and Full Year 2024 Results Substantially In-line with Previous Guidance

SANTA MONICA, Calif.--(BUSINESS WIRE)--February 27, 2025-- 

GoodRx Holdings, Inc. (Nasdaq: GDRX) ("we," "us," "our," "GoodRx," or the "Company"), the leading prescription savings platform in the U.S., has released its financial results for the fourth quarter and full year of 2024.

Fourth Quarter 2024 Highlights

   -- 
 Revenue1 of $198.6 million 
 
 
   -- 
 Net income of $6.7 million; Net income margin of 3.4% 
 
 
   -- 
 Adjusted Net Income1 of $34.7 million; Adjusted Net Income Margin1 of 
      17.5% 
 
 
   -- 
 Adjusted EBITDA1 of $67.1 million; Adjusted EBITDA Margin1 of 33.8% 
 
 
   -- 
 Net cash provided by operating activities of $44.7 million 
 
 
   -- 
 Exited the quarter with over 7 million consumers of 
      prescription-related offerings2 
 

Full Year 2024 Highlights

   -- 
 Revenue1 of $792.3 million 
 
 
   -- 
 Net income of $16.4 million; Net income margin of 2.1% 
 
 
   -- 
 Adjusted Net Income1 of $131.6 million; Adjusted Net Income Margin1 of 
      16.6% 
 
 
   -- 
 Adjusted EBITDA1 of $260.2 million; Adjusted EBITDA Margin1 of 32.8% 
 
 
   -- 
 Net cash provided by operating activities of $183.9 million 
 

"I am excited to join GoodRx at such a pivotal time for both the company and healthcare system as a whole. I have spent the last thirty years in the pharmacy and medical benefit industry, and I intimately understand where there is friction and opportunity," said Wendy Barnes, Chief Executive Officer and President of GoodRx. "I am here to help GoodRx accelerate its ability to solve the varied pain points that consumers currently face in getting medication. It's a privilege to take on this role. I'm thrilled to be here and am optimistic about the endless opportunities we have."

Full Year 2024 Financial Overview (all comparisons are made to the same period of the prior year unless otherwise noted):

Revenue(1) increased 6% to $792.3 million compared to $750.3 million. Adjusted Revenue(1) increased 4% to $792.3 million compared to $760.3 million.

Prescription transactions revenue increased 5% to $577.5 million compared to $550.7 million, driven by an organic 7% increase in Monthly Active Consumers, including expansion of our integrated savings program.

Subscription revenue decreased 8% to $86.5 million compared to $94.4 million, primarily driven by a decrease in the number of subscription plans due to the sunset of our partnership subscription program, Kroger Savings Club. Kroger Savings Club contributed $9.0 million of subscription revenue in 2023 and $1.1 million in 2024 prior to its sunset.

Pharma manufacturer solutions revenue increased 26% to $107.2 million compared to $85.1 million, primarily driven by organic growth as we continued to expand our market penetration with pharma manufacturers and other customers, including growth in our point of sale discount programs.

Net income was $16.4 million compared to a net loss of $8.9 million. The year-over-year change was primarily driven by top-line growth and run-rate savings as a result of the restructuring of our pharma manufacturer solutions offering in the second half of 2023. In addition, the net loss in 2023 was impacted by costs incurred related to the above-mentioned restructuring, partially offset by a tax benefit from the release of our valuation allowance against our beginning of the year net deferred tax assets in excess of tax amortizable goodwill. Net income margin was 2.1% compared to a net loss margin of 1.2%. Adjusted Net Income(1) was $131.6 million compared to $114.6 million.

Adjusted EBITDA(1) was $260.2 million compared to $217.4 million. The year-over-year change was primarily driven by top-line growth and run-rate savings as a result of the restructuring of our pharma manufacturer solutions offering in the second half of 2023. Adjusted EBITDA Margin(1) was 32.8% compared to 28.6%.

Cash Flow and Capital Allocation

Net cash provided by operating activities in 2024 was $183.9 million compared to $138.3 million in 2023, driven by an increase in net income after adjusting for non-cash items and changes in operating assets and liabilities. Changes in operating assets and liabilities were principally driven by the timing of income tax payments and refunds, as well as by the timing of payments of accounts payable and collections of accounts receivable. As of December 31, 2024, we had cash and cash equivalents of $448.3 million and total outstanding debt of $500.0 million.

We are focused on a disciplined approach to capital allocation, centered on furthering our mission and creating shareholder value. Our capital allocation priorities are investing for profitable growth, paying down debt, buying back shares, and M&A that aligns with our strategic priorities. These capital allocation priorities support our long-term growth strategy while also providing flexibility to navigate near-term challenges.

Guidance

For the first quarter and full year 2025, management is anticipating the following:

 
  $ in millions                 1Q 2025    1Q 2024  YoY Change 
----------------------------  -----------  -------  ---------- 
  Revenue(1)                  $201 - $205  $197.9    2% - 4% 
----------------------------  -----------  -------  ---------- 
  Adjusted EBITDA Margin(3)      33%       31.7%    130 bps 
----------------------------  -----------  -------  ---------- 
 
 
  $ in millions          FY 2025    FY 2024  YoY Change 
---------------------  -----------  -------  ---------- 
  Revenue(1)           $810 - $840  $792.3    2% - 6% 
---------------------  -----------  -------  ---------- 
  Adjusted EBITDA(3)   $270 - $286  $260.2    4% - 10% 
---------------------  -----------  -------  ---------- 
 

"Being in the pharmacy space for a long time, I understand the pain points that consumers face in getting access to their medications. I believe GoodRx is poised to leverage its core capabilities, deepen its relationships across the pharmacy ecosystem, and drive to a broader solution set to enhance access to medications at affordable prices for consumers," said Chris McGinnis, Chief Financial Officer and Treasurer.

"I believe the Company made solid progress in 2024, exemplified by the year-over-year growth in profitability and significant operating cash flows. Wendy and I are taking a disciplined approach to guidance, ensuring we provide visibility where we have conviction while allowing room to adapt as we gain greater clarity. We're very excited about the long-term growth potential at GoodRx," concluded McGinnis.

 
(1)    Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net 
       Income, and Adjusted Net Income Margin are non-GAAP financial measures 
       and are presented for supplemental informational purposes only. For the 
       fourth quarter and full year of 2024, revenue, the most directly 
       comparable financial measure calculated in accordance with GAAP, was 
       equal to Adjusted Revenue and we expect revenue to equal Adjusted 
       Revenue for the first quarter and full year of 2025. For the full year 
       2023, revenue excluding the $10.0 million client contract termination 
       payment represents Adjusted Revenue. Adjusted EBITDA Margin and 
       Adjusted Net Income Margin are defined as Adjusted EBITDA and Adjusted 
       Net Income, respectively, divided by Adjusted Revenue. Refer to the 
       Non-GAAP Financial Measures section below for definitions, additional 
       information, and reconciliations to the most directly comparable GAAP 
       measures. 
(2)    Sum of Monthly Active Consumers (MACs) for Q4'24 and subscribers to our 
       subscription plans as of December 31, 2024. Refer to Key Operating 
       Metrics below for definitions of Monthly Active Consumers and 
       subscription plans. 
(3)    Adjusted EBITDA Margin is Adjusted EBITDA divided by Adjusted Revenue. 
       Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial 
       measures and are presented for supplemental informational purposes 
       only. We have not reconciled our Adjusted EBITDA and Adjusted EBITDA 
       Margin guidance to GAAP net income or loss and GAAP net income or loss 
       margin, respectively, because we do not provide guidance for such GAAP 
       measures due to the uncertainty and potential variability of 
       stock-based compensation expense, acquired intangible assets and 
       related amortization and income taxes, which are reconciling items 
       between Adjusted EBITDA and Adjusted EBITDA Margin and their respective 
       most directly comparable GAAP measures. Because such items cannot be 
       provided without unreasonable efforts, we are unable to provide a 
       reconciliation of the non-GAAP financial measure guidance to the 
       corresponding GAAP measure. However, such items could have a 
       significant impact on our future GAAP net income or loss and GAAP net 
       income or loss margin. 
 

Investor Conference Call and Webcast

GoodRx management will host a conference call and webcast today, February 27, 2025, at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time) to discuss the results and the Company's business outlook.

To access the conference call, please pre-register using the following link:

https://register.vevent.com/register/BI10bb13f8ef3141f3abc65d502bf98c62

Registrants will receive a confirmation with dial-in details and a unique passcode required to join.

The call will also be webcast live on the Company's investor relations website at https://investors.goodrx.com, where accompanying materials will be posted prior to the conference call.

Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company's investor relations website at https://investors.goodrx.com for at least 30 days.

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February 27, 2025 06:05 ET (11:05 GMT)