Preliminary fourth quarter Revenue and Adjusted
Revenue exceed previously announced guidance
GoodRx Holdings, Inc. (Nasdaq: GDRX) (“GoodRx” or the
“Company”), the leading destination for prescription savings, today
provided preliminary unaudited financial results for the fourth
quarter and fiscal year ended December 31, 2023.
Fourth Quarter 2023
- Revenue1,2 and Adjusted Revenue1,2 expected to be in the range
of $195 million to $197 million
- Adjusted EBITDA Margin2,3 expected to be in the upper end of
previous guidance range provided on November 9, 2023
Full Year 2023
- Revenue1,2 expected to be in the range of $749 million to $751
million
- Adjusted Revenue1,2 expected to be in the range of $759 million
to $761 million
- Adjusted EBITDA Margin2,3 expected to be in the upper end of
previous guidance range provided on November 9, 2023
“We are encouraged by the preliminary fourth quarter results and
the progress we continue to make against our priorities. There is
exciting work underway and we expect to build on our accelerating
momentum in 2024,” said Karsten Voermann, Chief Financial Officer.
“While our line of sight into the first quarter is limited being
only a few days in, we’re pleased with our initial trajectory.
Based on our expectations today, we’re confident that first quarter
and full year 2024 revenue and Adjusted Revenue4 will grow
mid-single digit percentages year-over-year and Adjusted EBITDA
Margin5 will be in the high twenty-percent range for both periods.
We look forward to providing fulsome first quarter and 2024
guidance on our fourth quarter earnings call in February.”
Preliminary Fourth Quarter and Full
Year 2023 Financial Results
Fourth quarter and full year 2023 revenue and Adjusted
Revenue1,2 is expected to exceed the November guidance range.
Fourth quarter revenue and Adjusted Revenue1,2 is expected to be in
the range of approximately $195 million to $197 million, an
increase of approximately 6% to 7% year-over-year. Full year 2023
revenue1,2 is expected to be in the range of approximately $749
million to $751 million, a decrease of approximately 2%
year-over-year. Full year 2023 Adjusted Revenue1,2 is expected to
be in the range of approximately $759 million to $761 million, a
decrease of approximately 1% year-over-year. The increase in fourth
quarter revenue and Adjusted Revenue1,2 was primarily driven by
organic growth in Prescription Transactions Revenue.
Fourth quarter revenue and Adjusted Revenue1,2 outperformance
relative to our November guidance was primarily attributable to
higher growth in Prescription Transactions Revenue reflecting
stronger seasonal respiratory illness impacts, milder weather
conditions, and quarter-specific favorability related to certain
client contracts.
Fourth quarter and full year 2023 Adjusted EBITDA Margins2,3 are
expected to be on the upper end of the November guidance ranges.
The increase in fourth quarter Adjusted EBITDA Margin2,3 relative
to our November guidance was primarily attributable to the increase
in revenue and Adjusted Revenue1,2.
Set forth in this release are certain estimated preliminary
financial results for the fourth quarter and fiscal year ended
December 31, 2023. These estimates are based on the information
available to us at this time. Our financial closing procedures for
the fourth quarter and full-year 2023 are not yet complete and, as
a result, our actual results may vary from the estimated
preliminary results presented here due to the completion of our
financial closing and review procedures, the execution of our
internal control over financial reporting, final adjustments and
other developments that may arise between now and the time the
financial results for the fourth quarter and fiscal year ended
December 31, 2023 are finalized. The estimated preliminary
financial results have not been audited or reviewed by our
independent registered public accounting firm. These estimates
should not be viewed as a substitute for our full interim or annual
financial statements. Accordingly, you should not place undue
reliance on this preliminary data.
GoodRx expects to report finalized financial results for the
fourth quarter and full year 2023 on or about February 29,
2024.
1 Revenue for the third quarter of 2023 was impacted by a $10.0
million client contract termination payment, which was recognized
as a reduction of revenue, in connection with our plan to
de-prioritize certain solutions under our pharma manufacturer
solutions offering approved by our board of directors on August 7,
2023 (the “Restructuring Plan”). For the full year 2023, revenue of
$749 million to $751 million, excluding the $10 million client
contract termination costs incurred in the third quarter of 2023,
represents Adjusted Revenue. For all other periods, revenue equals
or is expected to equal Adjusted Revenue. 2 Adjusted Revenue,
Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial
measures and are presented for supplemental informational purposes
only. Refer to the Non-GAAP Financial Measures section below for
definitions, additional information, and reconciliations to the
most directly comparable GAAP measures, as applicable. 3 Adjusted
EBITDA Margin is Adjusted EBITDA divided by Adjusted Revenue. The
Company provided the foregoing unaudited, preliminary fourth
quarter and full year 2023 results regarding Adjusted EBITDA Margin
but has not provided a reconciliation of GAAP net income or loss
margin to such Adjusted EBITDA Margin because certain GAAP expense
items are highly variable and management is currently unable to
estimate them with reasonable certainty and without unreasonable
effort. Specifically, the financial impact and timing of legal
settlement expenses, income tax provision/benefit, and any
adjustments to the preliminary results that are identified in the
process of closing the Company’s books for the year then ended are
uncertain, depend on various dynamic factors and are not reasonably
ascertainable at this time. These expense items could have a
material impact on GAAP results. GAAP results and a reconciliation
of each non-GAAP financial measure to the most directly comparable
GAAP financial measure will be presented in connection with the
Company’s press release reporting finalized financial results for
the fourth quarter and full year 2023 fiscal periods scheduled to
be released on or about February 29, 2024. 4Adjusted Revenue is a
non-GAAP financial measure and is presented for supplemental
informational purposes only. We expect revenue, the most directly
comparable financial measure calculated in accordance with GAAP, to
equal Adjusted Revenue for the first quarter and full year of 2024.
5Adjusted EBITDA Margin is a non-GAAP financial measure and is
presented for supplemental informational purposes only. We have not
reconciled our Adjusted EBITDA Margin guidance to GAAP net income
or loss margin, because we do not provide guidance for GAAP net
income or loss margin due to the uncertainty and potential
variability of stock-based compensation expense and related payroll
taxes, legal settlement expenses, and income tax provision/benefit,
which are reconciling items between Adjusted EBITDA Margin and GAAP
net income or loss margin. Because such items cannot be provided
without unreasonable efforts, we are unable to provide a
reconciliation of the non-GAAP financial measure guidance to the
corresponding GAAP measure. However, such items could have a
significant impact on our future GAAP net income or loss
margin.
42nd Annual J.P. Morgan Healthcare
Conference
The Company is scheduled to participate in a fireside chat at
the 42nd Annual J.P. Morgan Healthcare Conference today, January
10, 2024, at 8:15 a.m. Pacific Time (11:15 a.m Eastern Time). The
live webcast will be available on the Company's Investor Relations
website, https://investors.goodrx.com/. Following the conference,
an archived recording will be available on the Company’s website
for at least 30 days.
About GoodRx
GoodRx is the leading destination for prescription savings. We
offer consumers free access to transparent and lower prices for
generic and brand medications, as well as comprehensive healthcare
research and information. We also equip healthcare providers with
efficient ways to find and prescribe affordable medications. Since
2011, GoodRx has helped consumers save more than $65 billion and is
one of the most downloaded medical apps over the past decade.
GoodRx periodically posts information that may be important to
investors on its investor relations website at
https://investors.goodrx.com. We intend to use our website as a
means of disclosing material nonpublic information and for
complying with our disclosure obligations under Regulation FD.
Accordingly, investors and potential investors are encouraged to
consult GoodRx’s website regularly for important information, in
addition to following GoodRx’s press releases, filings with the
Securities and Exchange Commission (the “SEC”) and public
conference calls and webcasts. The information contained on, or
that may be accessed through, GoodRx’s website is not incorporated
by reference into, and is not a part of, this press release.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including without limitation statements
regarding our anticipated financial results for the fourth quarter
and full year 2023, and our future results of operations, growth
and financial outlook. These statements are neither promises nor
guarantees, but involve known and unknown risks, uncertainties and
other important factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements, including, but not limited to,
risks related to the completion of closing and review procedures
and the execution of the Company’s internal control of financial
reporting, as well as the other important factors discussed in the
section entitled “Risk Factors” of our Annual Report on Form 10-K
for the fiscal year ended December 31, 2022, as updated by our
Quarterly Report on Form 10-Q for the fiscal quarter ended
September 30, 2023, and in our other filings with the SEC. The
forward-looking statements in this press release are based upon
information available to us as of the date of this press release,
and while we believe such information forms a reasonable basis for
such statements, such information may be limited or incomplete, and
our statements should not be read to indicate that we have
conducted an exhaustive inquiry into, or review of, all potentially
available relevant information. These statements are inherently
uncertain and investors are cautioned not to unduly rely upon these
statements. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change.
Non-GAAP Financial
Measures
Adjusted Revenue, Adjusted EBITDA and Adjusted EBITDA Margin are
supplemental measures of our performance that are not required by,
or presented in accordance with, U.S. GAAP. Collectively, we refer
to these non-GAAP financial measures as “Non-GAAP Measures."
We define Adjusted Revenue for a particular period as revenue
excluding client contract termination costs associated with
restructuring related activities. We exclude these costs from
revenue because we believe they are not indicative of past or
future underlying performance of the business.
We define Adjusted EBITDA for a particular period as net income
or loss before interest, taxes, depreciation and amortization, and
as further adjusted for, as applicable for the periods presented,
acquisition related expenses, stock-based compensation expense,
payroll tax expense related to stock-based compensation, loss on
extinguishment of debt, financing related expenses, loss on
operating lease assets, restructuring related expenses, legal
settlement expenses, charitable stock donation, gain on sale of
business, and other income or expense, net. Adjusted EBITDA Margin
represents Adjusted EBITDA as a percentage of Adjusted Revenue.
We believe these Non-GAAP Measures are helpful to investors,
analysts and other interested parties because they assist in
providing a more consistent and comparable overview of our
operations across our historical financial periods. Adjusted
Revenue, Adjusted EBITDA and Adjusted EBITDA Margin are also key
measures we use to assess our financial performance and are also
used for internal planning and forecasting purposes. In addition,
Adjusted Revenue, Adjusted EBITDA and Adjusted EBITDA Margin are
frequently used by analysts, investors and other interested parties
to evaluate and assess performance.
The Non-GAAP Measures are presented for supplemental
informational purposes only and should not be considered as
alternatives or substitutes to financial information presented in
accordance with GAAP. These measures have certain limitations in
that they do not include the impact of certain expenses that are
reflected in our condensed consolidated statements of operations
that are necessary to run our business. Other companies, including
other companies in our industry, may not use these measures or may
calculate these measures differently than as presented herein,
limiting their usefulness as comparative measures.
The following table presents a reconciliation of revenue, the
most directly comparable financial measures calculated in
accordance with GAAP, to Adjusted Revenue:
Three Months Ended
December 31,
Year Ended December
31,
(dollars in thousands, unaudited)
2023
2022
2023
2022
Revenue
$
196,000
$
184,109
$
750,000
$
766,554
Adjusted to exclude the following:
Client contract termination costs (1)
—
—
10,000
—
Adjusted Revenue
$
196,000
$
184,109
$
760,000
$
766,554
————————————————————————————
(1)
Client contract termination costs
represent a payment to a pharma manufacturer solutions client to
terminate certain contracts in connection with the Restructuring
Plan, which was recognized as a reduction of revenue in the third
quarter of 2023.
Note: Reconciliation provided at
the mid-point of our preliminary revenue range.
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version on businesswire.com: https://www.businesswire.com/news/home/20240110028332/en/
Investor Contact GoodRx Whitney Notaro ir@goodrx.com
Press Contact GoodRx Lauren Casparis
lcasparis@goodrx.com
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