• Fourth Quarter Revenue: $339 million, a 20% increase year over year.
• Fourth Quarter Adjusted EBITDA: $26 million, a 30% increase from last year's quarter.
• Full Year 2024 Revenue: $1.228 billion, a 17% increase over last year.
• Full Year 2024 Adjusted EBITDA: $91 million, up 19% year over year.
• Resident Count: Approximately 186,000, a 14% increase from the fourth quarter last year.
• New Pharmacy Locations: Added nine new locations through M&A and greenfield startups.
• Gross Margin: Stable at 19.9% for the full year 2024.
• Cash Position: Ended the fourth quarter with $4.7 million in cash.
• Credit Facility: $40 million available with the ability to increase up to $75 million.
• 2025 Revenue Guidance: $1.33 billion to $1.35 billion.
• 2025 Adjusted EBITDA Guidance: $97 million to $101 million.

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

Release Date: March 26, 2025

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

Positive Points

• Guardian Pharmacy Services Inc (NYSE:GRDN) reported a 20% year-on-year increase in fourth-quarter revenue, reaching $339 million.
• The company achieved a 14% increase in resident count, totaling approximately 186,000 by the end of the quarter.
• Adjusted EBITDA for the fourth quarter rose by 30% compared to the previous year, reaching $26 million.
• For the full year 2024, GRDN generated $1.228 billion in revenue, marking a 17% increase over the previous year.
• The company successfully expanded its footprint by adding nine new pharmacy locations through mergers and acquisitions (M&A) and greenfield startups.

Negative Points

• The company faces potential challenges from the Inflation Reduction Act, which could impact operations in 2026 and beyond.
• Public company costs amounted to over $1 million in 2024, with expectations of these costs increasing to $4 million in 2025.
• New pharmacy locations are contributing very little to the bottom line as they are still scaling.
• The company acknowledges the complexity and operational challenges of administering flu and COVID vaccines, which historically posed profitability headwinds.
• Despite strong growth, the company remains cautious about the potential impact of external factors on its M&A pipeline and market conditions.

Q & A Highlights

Q: As we think about the earnings bridge from '24 to '25, what are some of the key factors to consider? A: David Morris, CFO, explained that they expect strong organic growth in the high single digits, coupled with M&A activity yielding low double-digit growth. The focus remains on achieving additional leverage while managing public company costs.

Q: Can you expand on your conversations with PBM partners regarding IRA issues? A: David Morris, CFO, stated that they have been discussing the IRA since summer '24 and are comfortable with the process. They are engaged with PBM partners to mitigate potential impacts and are confident in finding a solution.

Q: How did the extended flu season impact your business in Q1? A: David Morris, CFO, noted that the severity of the flu season does not significantly impact their business as they inoculate almost every resident they serve. Therefore, there is no material impact on their operations from the extended flu season.

Q: Has the IRA impacted your M&A pipeline or pricing? A: David Morris, CFO, mentioned that while the IRA is on people's minds, it hasn't significantly affected their robust M&A pipeline. The company remains selective in its acquisitions, focusing on human capital and regional alignment.

Q: Are there any changes in drug mix trends or pricing in the 2025 guidance? A: David Morris, CFO, indicated that there are no substantial changes expected in drug mix or reimbursement for 2025. The outlook remains steady.

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