NASDAQ$GDRX

GoodRx Holdings Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

GoodRx's third quarter results exceeded expectations and addressed the grocer issue.

GoodRx's Q3 2022 earnings report revealed a total revenue of $187.3 million, surpassing previous guidance. Despite a net loss of $41.71 million, the company saw double-digit growth in subscription and pharma manufacturer solutions platforms. The company is prioritizing profitability and cash flow.

  • Total revenue reached $187.3 million, exceeding prior guidance.
  • Net loss amounted to $41.71 million, with a net loss margin of 22.3%.
  • Adjusted EBITDA stood at $52.0 million, resulting in an Adjusted EBITDA Margin of 27.8%, also exceeding expectations.
  • Net cash provided by operating activities was $33.7 million.

Headline financials

Total Revenue

$187M

Previous: $195M-4.0%
EPS (adj)

$0.07

Previous: $0.09-22.2%
Monthly Active Consumers

5.8M

No prior period
Subscription Plans

1.1M

No prior period
Capital Expenditures

-$3.82M

Previous: -$3.76M-1.4%
Free Cash Flow

-$45.6M

Previous: -$21.8M-108.6%
Net Income

-$41.7M

Previous: -$18.1M-131.0%
Operating Income

-$15.7M

Previous: $7M-324.5%
Gross Profit

-$17.4M

Previous: -$11.3M-54.3%
Cash & Equivalents

$729M

Previous: $912M-20.1%
Total Assets

$1.57B

Previous: $1.61B-2.9%
Stock-Based Comp

$29M

Previous: $40M-27.4%

Revenue & EPS history

GoodRx · Revenue · Quarterly

$187M

Q3 2022-4%vs Q3 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

GoodRx · $182M total across 3 segments · Q3 2022

  • Prescription Transactions
    $131M
  • Subscription
    $26.5M
  • Pharma Direct
    $24.5M

Forward guidance

For the fourth quarter, the company anticipates total revenue of approximately $175 million to $180 million and Adjusted EBITDA Margins in the low-to-mid-twenty-percent range.

Tailwinds

  • Focus on Adjusted EBITDA growth.
  • Focus on margin improvement.
  • Focus on cash conversion.
  • Actions taken in relation to costs and expenses.
  • Reprioritized spending across the business with the objective of greater efficiency.

Headwinds

  • Total Revenue ~$175-$180 million
  • Year over year change ~(18%) - (16%)
  • Includes a combined $45 million to $50 million estimated impact to prescription transactions revenue related to the previously disclosed grocer issue
  • Includes continued consumer engagement efforts
  • Expect Adjusted EBITDA Margins in the low-to-mid-twenty-percent range.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-5.3%

Avg return

Earnings day

-8.5%

Avg return

5 days after

-5.0%

Avg return

30 days after

37%

10 / 27 earnings

Positive

+29.1%

Q4 2023

Best reaction

-37.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+10.5%+3.5%
Q4 2025-19.5%-15.5%-20.8%
Q3 2025+1.8%-6.1%-16.9%
Q1 2025+11.9%+13.5%+7.7%
Q4 2024+1.8%-4.5%-8.0%
Q3 2024-20.0%-23.1%-19.6%
Q2 2024-16.3%-20.2%-10.5%
Q1 2024-13.3%-12.6%+12.4%
Q4 2023+29.1%+17.6%+9.7%
Q3 2023-12.4%-8.8%+9.1%
Q2 2023-5.6%-14.1%-29.3%
Q1 2023+7.0%+10.9%+17.5%
Q4 2022+5.6%+13.6%+14.2%
Q3 2022-21.5%+10.4%+0.8%
Q2 2022+10.5%+4.1%-12.6%
Q1 2022-37.4%-30.1%-43.5%
Q4 2021-36.3%-39.2%-27.9%
Q3 2021-5.7%-5.1%-5.4%
Q2 2021+20.0%+13.3%+37.1%
Q1 2021+5.1%+2.4%+24.8%
Q4 2018-10.5%-14.2%-7.9%
Q2 2020-3.9%-7.8%-1.2%
Q4 2020-3.9%-7.8%-1.2%
Q1 2020-7.3%-29.1%-16.5%
Q3 2019-7.3%-29.1%-16.5%
Q3 2020-7.3%-29.1%-16.5%
Q4 2019-7.3%-29.1%-16.5%
Q2 2019
Q1 2019

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