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Sep 30, 2022

GoodRx Q3 2022 Earnings Report

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

Key Takeaways

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.

Total Revenue
$187M
Previous year: $195M
-4.0%
EPS
$0.07
Previous year: $0.09
-22.2%
Gross Profit
$170M
Previous year: $184M
-7.6%
Cash and Equivalents
$729M
Previous year: $912M
-20.1%
Free Cash Flow
$33.1M
Previous year: $47.9M
-30.9%
Total Assets
$1.57B
Previous year: $1.61B
-2.9%

GoodRx

GoodRx

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.

Positive Outlook

  • 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.

Challenges Ahead

  • 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.