GoodRx Holdings, Inc. (GDRX) Bundle
A Brief History of GoodRx Holdings, Inc.
Company Overview
GoodRx Holdings, Inc. is a digital healthcare platform that provides consumers with price transparency and access to prescription medications. Founded in 2011, the company aims to help Americans receive the healthcare they need at prices they can afford. As of September 30, 2024, GoodRx operates primarily through its website and mobile applications, offering a variety of services including prescription discount cards and telehealth services.
Financial Performance
For the three months ended September 30, 2024, GoodRx reported revenue of $195.3 million, an increase of 8% from $180.0 million in the same period of 2023. The net income for the same period was $4.0 million, translating to a net income margin of 2.0%, compared to a net loss of $38.5 million, or a net loss margin of 21.4%, in the prior year. Adjusted EBITDA for this quarter was $65.0 million, with an adjusted EBITDA margin of 33.3%, up from 28.1% in 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $195.3 million | $180.0 million | +8% |
| Net Income | $4.0 million | $(38.5) million | — |
| Net Income Margin | 2.0% | (21.4%) | — |
| Adjusted EBITDA | $65.0 million | $53.5 million | +21% |
| Adjusted EBITDA Margin | 33.3% | 28.1% | — |
Revenue Breakdown
GoodRx's revenue is primarily derived from three main segments: prescription transactions, subscription services, and pharma manufacturer solutions. For the nine months ended September 30, 2024, prescription transactions revenue accounted for approximately 73% of total revenue, totaling $432.6 million, an increase of 6% year-over-year. Subscription revenue contributed $65.9 million, while pharma manufacturer solutions revenue was $79.1 million, reflecting a 30% increase compared to the previous year.
| Revenue Source | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Prescription Transactions | $432.6 million | $406.9 million | +6% |
| Subscription Revenue | $65.9 million | $71.3 million | -8% |
| Pharma Manufacturer Solutions | $79.1 million | $60.7 million | +30% |
Operational Highlights
As of September 30, 2024, GoodRx had approximately 14.9 million monthly active users, reflecting an 8% increase from the previous year. The company continues to expand its services, recently enhancing its telehealth offerings and entering new partnerships to provide better access to healthcare solutions.
Stock Performance and Share Repurchase Program
As of September 30, 2024, GoodRx's Class A common stock was trading at $6.95 per share. The company announced a stock repurchase program in February 2024, with an approximate dollar value of shares that may yet be repurchased totaling $290.2 million.
| Period | Total Shares Repurchased | Average Price Paid per Share | Approx. Dollar Value of Shares Remaining |
|---|---|---|---|
| July 1 - 31, 2024 | — | — | $— |
| August 1 - 31, 2024 | 755,953 | $6.95 | $290.2 million |
Debt and Financing
In July 2024, GoodRx amended its First Lien Credit Agreement, establishing a new $500 million term loan that matures in 2029. As of September 30, 2024, the principal balance under this facility was $491.3 million. The company reported an effective interest rate of 9.60% for the three months ended September 30, 2024.
| Debt Type | Principal Balance (as of Sept 30, 2024) | Effective Interest Rate |
|---|---|---|
| 2024 Term Loan Facility | $491.3 million | 9.60% |
A Who Owns GoodRx Holdings, Inc. (GDRX)
Shareholder Composition
As of 2024, GoodRx Holdings, Inc. (GDRX) has a diverse ownership structure comprising institutional investors, individual shareholders, and company executives. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Spectrum Equity VII, L.P. | 15.3% | 57,000,000 |
| Francisco Partners IV, L.P. | 14.8% | 55,000,000 |
| Vanguard Group, Inc. | 8.7% | 32,500,000 |
| BlackRock, Inc. | 7.4% | 28,000,000 |
| GoodRx Co-Founders (Trevor Bezdek and Douglas Hirsch) | 5.9% | 22,000,000 |
| Other Institutional Investors | 29.6% | 111,000,000 |
| Retail Investors | 18.3% | 69,000,000 |
Recent Stock Activity
In March 2024, GoodRx repurchased 20.9 million shares of its Class A common stock from related parties for an aggregate consideration of $151.4 million. This transaction included shares from Spectrum Equity and Francisco Partners, reflecting a strategic move to consolidate ownership and enhance shareholder value.
Executive Ownership
The company’s executives and board members hold a significant portion of shares, which aligns their interests with those of shareholders. As of September 30, 2024, the following executives held shares:
| Executive | Title | Number of Shares Held |
|---|---|---|
| Trevor Bezdek | Chairman | 11,000,000 |
| Douglas Hirsch | Co-Founder | 11,000,000 |
| Other Executives | Various | 10,000,000 |
Institutional Investors
Institutional investors play a crucial role in the ownership structure of GoodRx, representing a significant portion of the total shares. The top institutional shareholders as of 2024 are:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group, Inc. | 32,500,000 | 8.7% |
| BlackRock, Inc. | 28,000,000 | 7.4% |
| Fidelity Investments | 25,000,000 | 6.6% |
Market Capitalization
As of September 30, 2024, GoodRx Holdings, Inc. reported a market capitalization of approximately $2.4 billion, reflecting its position as a significant player in the digital healthcare market.
GoodRx Holdings, Inc. (GDRX) Mission Statement
GoodRx Holdings, Inc. aims to help Americans get the healthcare they need at a price they can afford. The company is focused on building the leading consumer-focused digital healthcare platform in the United States, reflecting significant market demand for its offerings and the value it provides to the broader healthcare ecosystem.
Financial Overview
For the three months ended September 30, 2024, GoodRx reported:
- Revenue: $195.3 million, an increase of 8% from $180.0 million in the same period of 2023.
- Adjusted Revenue: $195.3 million, up 3% from $190.0 million year-over-year.
- Net Income: $4.0 million, with a net income margin of 2.0%, compared to a net loss of $38.5 million (21.4% margin) in the prior year.
- Adjusted EBITDA: $65.0 million, representing an Adjusted EBITDA margin of 33.3%, compared to $53.5 million and 28.1% margin in the previous year.
For the nine months ended September 30, 2024:
- Revenue: $593.7 million, a 7% increase from $553.6 million in the same period of 2023.
- Adjusted Revenue: $593.7 million, up 5% from $563.6 million year-over-year.
- Net Income: $9.7 million, with a net income margin of 1.6%, compared to $17.0 million (3.1% margin) in the previous year.
- Adjusted EBITDA: $193.2 million, representing an Adjusted EBITDA margin of 32.5%, compared to $160.2 million and 28.4% margin a year ago.
Revenue Breakdown
| Revenue Source | Q3 2024 ($ million) | Q3 2023 ($ million) | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Prescription Transactions Revenue | 140.4 | 135.4 | 5.0 | 4% |
| Subscription Revenue | 21.3 | 23.2 | (1.9) | (8%) |
| Pharma Manufacturer Solutions Revenue | 28.1 | 15.9 | 12.2 | 77% |
| Other Revenue | 5.4 | 5.4 | (0.0) | 0% |
| Total Revenue | 195.3 | 180.0 | 15.3 | 8% |
Key Metrics
As of September 30, 2024:
- Monthly Active Consumers: 6.5 million, up from 6.1 million year-over-year.
- Subscription Plans: 701,000, a decrease from 930,000 in the prior year.
- Cash and Cash Equivalents: $423.8 million.
- Debt: $491.3 million under the 2024 Term Loan Facility.
Operating Expenses
For the three months ended September 30, 2024, GoodRx reported the following operating expenses:
| Expense Type | Q3 2024 ($ million) | Q3 2023 ($ million) | Change ($ million) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | 11.7 | 18.7 | (7.0) | (38%) |
| Product Development and Technology | 30.1 | 39.6 | (9.5) | (24%) |
| Sales and Marketing | 89.9 | 91.6 | (1.7) | (2%) |
| General and Administrative | 25.6 | 35.3 | (9.7) | (27%) |
| Depreciation and Amortization | 17.5 | 33.0 | (15.5) | (47%) |
| Total Operating Expenses | 174.8 | 218.3 | (43.5) | (20%) |
Stock Performance
As of September 30, 2024, GoodRx's stock was trading at approximately $7.19, following the repurchase of 20.9 million shares at this price from related parties earlier in March 2024, totaling $151.4 million.
How GoodRx Holdings, Inc. (GDRX) Works
Business Model
GoodRx Holdings, Inc. operates as a digital healthcare platform that provides consumers with tools to compare prescription drug prices and save on purchases. The company primarily generates revenue through pharmacy benefit managers (PBMs) that facilitate negotiated prices for consumers at pharmacies across the United States.
Financial Performance Overview
For the three months ended September 30, 2024, GoodRx reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $195.3 million | $180.0 million |
| Net Income (Loss) | $4.0 million | $(38.5 million) |
| Adjusted EBITDA | $65.0 million | $53.5 million |
| Net Income Margin | 2.0% | (21.4%) |
For the nine months ended September 30, 2024, the financial metrics were:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Revenue | $593.7 million | $553.6 million |
| Net Income (Loss) | $9.7 million | $17.0 million |
| Adjusted EBITDA | $193.2 million | $160.2 million | Net Income Margin | 1.6% | 3.1% |
Revenue Breakdown
The revenue composition for the three and nine months ended September 30, 2024 is as follows:
| Revenue Source | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Prescription Transactions Revenue | $140.4 million | $135.4 million | $432.6 million | $406.9 million |
| Subscription Revenue | $21.3 million | $23.2 million | $65.9 million | $71.3 million |
| Pharma Manufacturer Solutions Revenue | $28.1 million | $15.9 million | $79.1 million | $60.7 million |
| Other Revenue | $5.4 million | $5.4 million | $16.2 million | $14.8 million |
Operating Expenses
GoodRx's operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $11.7 million | $18.7 million |
| Product Development and Technology | $30.1 million | $39.6 million |
| Sales and Marketing | $89.9 million | $91.6 million |
| General and Administrative | $25.6 million | $35.3 million |
| Depreciation and Amortization | $17.5 million | $33.0 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, GoodRx reported cash flows from various activities:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $139,149 |
| Net Cash Used in Investing Activities | $(53,703) |
| Net Cash Used in Financing Activities | $(333,965) |
| Net Change in Cash and Cash Equivalents | $(248,519) |
Stockholder's Equity
As of September 30, 2024, GoodRx had the following stockholder's equity metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Stockholders' Equity | $696,434 |
| Accumulated Deficit | $(1,447,753) |
| Additional Paid-in Capital | $2,144,149 |
Debt Structure
GoodRx's debt structure as of September 30, 2024, includes:
| Debt Type | Amount (in thousands) |
|---|---|
| Long-term Debt | $487,593 |
| Current Portion of Debt | $3,750 |
| Operating Lease Liabilities | $5,543 |
Market Position and Consumer Metrics
As of September 30, 2024, GoodRx reported:
| Metric | Value |
|---|---|
| Monthly Active Consumers | 6.5 million |
| Subscription Plans | 701,000 |
How GoodRx Holdings, Inc. (GDRX) Makes Money
Revenue Streams
GoodRx Holdings, Inc. generates revenue primarily through four main streams: prescription transactions, subscription services, pharma manufacturer solutions, and other revenues.
| Revenue Stream | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Prescription Transactions Revenue | $140,419 | $135,427 | 4% |
| Subscription Revenue | $21,306 | $23,240 | -8% |
| Pharma Manufacturer Solutions Revenue | $28,136 | $15,897 | 77% |
| Other Revenue | $5,390 | $5,394 | 0% |
| Total Revenue | $195,251 | $179,958 | 8% |
Prescription Transactions Revenue
Prescription transactions revenue accounted for approximately 72% of total revenue in Q3 2024. This segment has seen a steady increase due to an 8% rise in Monthly Active Consumers, reaching over 6.5 million users in Q3 2024. The growth is attributed to organic expansion and the integration of savings programs with pharmacy benefit managers.
Subscription Revenue
Subscription revenue contributed approximately 11% of total revenue in Q3 2024, declining by 8% year-over-year. The decrease is primarily due to the sunset of the Kroger Savings plan, which resulted in a drop from 930,000 subscription plans in Q3 2023 to 701,000 in Q3 2024.
Pharma Manufacturer Solutions Revenue
This segment experienced significant growth, with revenue increasing 77% year-over-year to $28.1 million in Q3 2024. The growth was driven by a client contract termination payment and organic growth through expanded market penetration.
Other Revenue
Other revenue remained stable, contributing 3% of total revenue, with a slight decrease from $5.394 million in Q3 2023 to $5.390 million in Q3 2024.
Cost Structure
The total costs and operating expenses for Q3 2024 were $174.8 million, down from $218.3 million in Q3 2023. This reduction was primarily due to decreased costs in revenue generation and restructuring efforts.
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Year-over-Year Change (%) |
|---|---|---|---|
| Cost of Revenue | $11,684 | $18,721 | -38% |
| Product Development and Technology | $30,139 | $39,611 | -24% |
| Sales and Marketing | $89,867 | $91,615 | -2% |
| General and Administrative | $25,619 | $35,317 | -27% |
| Depreciation and Amortization | $17,535 | $33,024 | -47% |
Financial Performance
For the nine months ended September 30, 2024, GoodRx reported total revenue of $593.7 million, reflecting a 7% increase from $553.6 million in the same period of 2023. Net income for the same period was $9.7 million, down from $17.0 million year-over-year.
Key Metrics
GoodRx utilizes several key financial and operational metrics to assess performance:
- Monthly Active Consumers: 6.5 million in Q3 2024
- Subscription Plans: 701,000 as of September 30, 2024
- Adjusted EBITDA Margin: 33.3% in Q3 2024
Effective income tax rate in Q3 2024 was 51.1%, compared to 17.4% in Q3 2023.
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Resources:
- GoodRx Holdings, Inc. (GDRX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GoodRx Holdings, Inc. (GDRX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View GoodRx Holdings, Inc. (GDRX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.