GoodRx (GDRX) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 grew 6% year-over-year to $200.6 million, driven by growth in the prescriptions marketplace and pharma manufacturer solutions, with net income of $6.7 million and net income margin of 3.3%.

• Adjusted EBITDA increased 22% year-over-year to $65.4 million (32.6% margin), and Adjusted Net Income rose to $32.4 million (16.1% margin).

• Over 7 million prescription-related consumers used offerings in Q2 2024, with Monthly Active Consumers up 8% year-over-year.

• The company is focused on five strategic priorities, including scaling pharma manufacturer solutions and deepening user relationships.

• Net income margin declined from 31.0% in Q2 2023 due to the absence of a prior year tax benefit.

Financial highlights

• Prescription transactions revenue rose 7% year-over-year to $146.7 million, driven by higher Monthly Active Consumers.

• Pharma manufacturer solutions revenue increased 9% year-over-year to $26.5 million, offsetting a reduction from the VitaCare shutdown.

• Subscription revenue declined 8% to $22 million due to the wind down of Kroger Savings Club, with 696,000 plans as of June 30, 2024.

• Other revenue increased 10% to $5.4 million in Q2 2024.

• Net cash from operating activities was $9.7 million in Q2, down from $29.9 million a year ago, mainly due to timing of payments and collections.

Outlook and guidance

• Q3 2024 revenue and adjusted revenue are expected between $193 million and $197 million, with Adjusted EBITDA margin around 32%.

• Full-year 2024 revenue and adjusted revenue are expected at the lower end of the $800 million–$810 million range, with about 5% adjusted revenue growth and ~$5 million impact from Rite Aid closures.

• Adjusted EBITDA for 2024 is projected to exceed $255 million, up 17–18% from 2023, with margin expected to be about 32%.

• Revenue growth rates are expected to accelerate in Q4, especially in pharma manufacturer solutions.

• Management believes current liquidity is sufficient for at least the next twelve months.