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Dec 31, 2022

GoodRx Q4 2022 Earnings Report

GoodRx's financial results for Q4 2022 were released, exceeding previously announced guidance.

Key Takeaways

GoodRx reported Q4 2022 total revenue of $184.1 million, exceeding guidance. Subscription revenue grew 42% year-over-year. Over 7 million Americans used GoodRx for their healthcare needs in the fourth quarter.

Total revenue of $184.1 million, exceeding previously announced guidance.

Net loss of $2.01 million; Net loss margin of 1.1%.

Adjusted EBITDA of $49.6 million; Adjusted EBITDA Margin of 26.9%, exceeding previously announced guidance.

Exited the quarter with over 7 million consumers of prescription-related offerings.

Total Revenue
$184M
Previous year: $213M
-13.7%
EPS
$0.07
Previous year: $0.09
-22.2%
Gross Profit
$167M
Previous year: $199M
-16.3%
Cash and Equivalents
$757M
Previous year: $941M
-19.5%
Free Cash Flow
$31.7M
Previous year: $49M
-35.3%
Total Assets
$1.6B
Previous year: $1.61B
-0.2%

GoodRx

GoodRx

Forward Guidance

For the first quarter and full year 2023, management is anticipating total revenue of approximately $181 million to $183 million for Q1 and $780 million to $790 million for the full year. Adjusted EBITDA margin for the first quarter and full year 2023 is expected to be in the mid-twenty-percent range.

Positive Outlook

  • Focus on efficiently growing profitability
  • Steady margin improvement
  • Executing on strong cash conversion
  • Balance sheet maintains a strong cash and liquidity position
  • Aiding our capital allocation priorities to support our realigned organization in driving highly efficient and profitable growth

Challenges Ahead

  • Q1 2023 total revenue includes a $35 million to $45 million estimated impact to prescription transactions revenue related to the grocer issue.
  • Uncertainty and potential variability of stock-based compensation expense
  • Acquired intangible assets and related amortization
  • Income taxes
  • Targeted and strategic marketing investments over the course of the year, which are factored into our margin guidance for the first quarter.