• Revenue (Q4 2024): $198.6 million
• Full Year Revenue (2024): $792.3 million, up 6% year-over-year
• Adjusted EBITDA (Q4 2024): $67.1 million
• Full Year Adjusted EBITDA (2024): $260.2 million, up 20% year-over-year
• Prescription Transactions Revenue (2024): $577.5 million, up 5% year-over-year
• Subscription Revenue (2024): $86.5 million, declined 8% year-over-year
• Pharma Manufacturer Solutions Revenue (2024): $107.2 million, up 26% year-over-year
• Net Income (2024): $16.4 million, compared to a net loss of $8.9 million in 2023
• Adjusted Net Income (2024): $131.6 million, up from $114.6 million in 2023
• Adjusted EBITDA Margin (2024): 32.8%, up 420 basis points year-over-year
• Net Cash from Operating Activities (2024): $183.9 million
• Ending Cash on Hand (2024): $448.3 million
• Outstanding Debt (2024): $500 million
• Total Liquidity (2024): Approximately $540 million
• 2025 Revenue Guidance: $810 million to $840 million
• 2025 Adjusted EBITDA Guidance: $270 million to $286 million
• Q1 2025 Revenue Guidance: $201 million to $205 million
• Q1 2025 Adjusted EBITDA Margin Guidance: Approximately 33%

• Warning! GuruFocus has detected 4 Warning Signs with GDRX.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GoodRx Holdings Inc (NASDAQ:GDRX) reported a 6% year-over-year increase in full-year 2024 revenue, reaching $792.3 million.
• The company achieved a 20% growth in adjusted EBITDA, with a margin expansion of 420 basis points to 32.8%.
• GoodRx's prescription marketplace saw significant growth, with nearly 30 million consumers using the platform in 2024, saving almost $17 billion on medications.
• The company expanded its partnerships with pharma manufacturers, growing from 150 brands in 2023 to over 200 in 2024, and plans to continue this growth.
• GoodRx's integrated savings program (ISP) is driving meaningful savings for consumers and plan sponsors, with plans to expand its reach and impact.

Negative Points

• Subscription revenue declined by 8% due to the sunset of a retailer-specific prescription savings program.
• The company faces challenges in fully rolling out its ISP with major PBM partners, as not all employer customers have opted in.
• GoodRx is experiencing headwinds on monthly active consumers due to retail pharmacy store closures and rationalizations.
• The sales cycle for brand deals in the pharma manufacturer solutions segment is lengthy, which may delay revenue realization.
• There is uncertainty regarding the impact of potential regulatory changes on pharmaceutical marketing, which could affect GoodRx's digital pharma manufacturer solutions.

Q & A Highlights

Q: Wendy, you talked about different initiatives with manufacturers and retailers. How many of these are included in the guidance, and what is the expectation for ISP and ISP wrap in 2025? A: The growth outlined in the guidance includes some expansion in manufacturer programs and brand expansion. There's considerable additional opportunity beyond this year. For pharmacies, enhancing retailer margins is a key aspect, with profitability improving by about 20% year-over-year for partnered retailers. ISP continues to see solid traction, especially with non-covered brands, and we're actively engaged with PBM partners to facilitate integration with brand wrap.

Q: At the Analyst Day, it was mentioned that pharma manufacturing solutions is a 20% to 30% growth market. Do you still stand by that? A: Yes, we were up 26% in pharma manufacturer solutions from 2023 to 2024 and are confident in another 20% growth this year. The sales cycle for brand deals takes time, but we've grown to 78 brands in point-of-sale cash buy downs and 200 brands on the platform, showing significant growth.

Q: Can you update us on the ISP rollouts with ESI and Caremark, and the role ISP plays with PBM partners? A: The original ISP concept with Express Scripts and Caremark has evolved, particularly with non-covered brands providing more value. We're actively expanding the types of drugs included and continue to engage with PBM partners to ensure mutual value. The need for a solution that complements insurance offerings remains strong, and we're making progress in expanding ISP partnerships.

Q: What is GoodRx's ability to position itself against changing reimbursement dynamics in the pharmacy landscape? A: We have a multi-PBM approach and work with all major chain and grocery pharmacies in the U.S. Our partnerships help pharmacies improve profitability, with some seeing a 20% increase in profitability per script. GoodRx fills in insurance gaps and complements managed care tools, providing competitive prices at the point of sale.

Q: Can you provide more color on your capital allocation priorities and marketing strategy for 2025? A: We generate substantial free cash flow and will invest internally to support strategic initiatives. We're open to strategic initiatives for cash deployment, but absent that, we'll return excess cash to shareholders through repurchases. We have $290 million authorized for repurchases and will lean into that.

Q: Can you remind us of the breakdown of direct contracting, hybrid, and traditional PBM contracting, and the ideal mix? A: Currently, 8 out of 10 top pharmacies are either direct or hybrid. The remaining two prefer accessing our pricing through PBM contracts. We work with pharmacies in their preferred manner, and our current contractual mechanisms are well-received by our top retailers.

Q: Can you update us on the Kroger channel returning and the uptake you're seeing? A: It's early to comment specifically, but the relationship with Kroger is strong, and we're seeing volume improve nicely. There's more runway ahead, and we're engaged in shared opportunities with Kroger.

Q: Are you working with GLP-1 manufacturers, and how do you expect this to evolve? A: We're partnered with GLP-1 manufacturers to support their co-pay coupon programs. There's an opportunity for a competitive cash price at the point of sale, and we're actively working to obtain that. The demand for branded solutions is expected to increase, and we're aggressively pursuing a point-of-sale brand cash buy down.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.