GoodRx (GDRX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 8% year-over-year to $195.3 million, with net income of $4.0 million versus a net loss in Q3 2023 and Adjusted EBITDA margin of 33.3%.

• Pharma Manufacturer Solutions revenue surged 77% year-over-year to $28.1 million, becoming a key growth driver.

• Over 7 million prescription-related consumers used offerings in Q3 2024, with Monthly Active Consumers up 7% to 6.5 million.

• Direct contracting with top retailers expanded, with over 30% of volume now through direct or hybrid contracts and eight of the top ten retailers under contract.

• Prescription marketplace growth was mixed due to retail pharmacy closures and reimbursement renegotiations, but integrated savings programs performed well.

Financial highlights

• Q3 2024 total revenue was $195.3 million, up 8% year-over-year; Adjusted EBITDA was $65.0 million (33.3% margin), and net income was $4.0 million (2.0% margin).

• Prescription transactions revenue grew 4% to $140.4 million, driven by a 7% increase in Monthly Active Consumers, despite a $2.4 million impact from Rite Aid closures.

• Subscription revenue declined 8% to $21.3 million due to the sunset of the Kroger Savings Club, with 701,000 plans at quarter-end.

• Net cash from operating activities was $86.9 million in Q3 and $139.1 million for the nine months ended September 30, 2024; cash and equivalents at quarter-end were $423.8 million.

• Adjusted Net Income rose to $31.9 million (16.4% margin); basic and diluted EPS were $0.01, compared to $(0.09) in Q3 2023.

Outlook and guidance

• Q4 2024 revenue and Adjusted Revenue expected at approximately $200 million; full-year revenue forecasted just under $795 million, with Adjusted EBITDA of $255–$260 million and margin above 32%.

• Pharma Manufacturer Solutions projected to grow 20% year-over-year in Q4 2024 and over 20% for full year 2025.

• Prescription marketplace revenue expected to decline 2% year-over-year in Q4, mainly due to Rite Aid and Kroger impacts.

• 2025 revenue growth anticipated in the single-digit percentage range, with continued margin expansion.

• Management expects pharma manufacturer solutions to grow as a percentage of total revenue in the near to medium term.