GoodRx Holdings, Inc. - Class A Common Stock (GDRX)
4.6700
-0.1800 (-3.71%)
GoodRx Holdings Inc is a healthcare technology company that provides consumers with affordable access to prescription medications
Through its platform, GoodRx offers price comparisons for prescription drugs at various pharmacies, enabling users to find the lowest available prices. In addition to its pricing tools, the company offers discount coupons, telehealth services, and health information resources, ultimately striving to improve transparency and cost-effectiveness in the prescription drug market. Its services aim to empower consumers in making informed choices about their healthcare needs.
Healthcare tech company GoodRx (NASDAQGDRX) missed Wall Street’s revenue expectations in Q4 CY2024, with sales flat year on year at $198.6 million. On the other hand, the company expects next quarter’s revenue to be around $203 million, close to analysts’ estimates. Its non-GAAP profit of $0.09 per share was in line with analysts’ consensus estimates.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. But speed bumps have persisted in the wake of COVID-19 as players destocked inventories in 2023 and 2024.
This has weighed on the returns lately as the industry has pulled back by 1.7% over the past six months. This performance is a noticeable divergence from the S&P 500’s 9% return.
Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry’s returns -
over the past six months, healthcare stocks have collectively shed 1.7%. This drop is a stark contrast from the S&P 500’s 9% gain.
GoodRx's latest research shows surging demand for weight loss medications like Wegovy and Zepbound, despite high costs and limited insurance coverage, with consumers overspending $200 million in 2024.
GoodRx reported Q2 revenue of $200.61M, a 6% YoY increase. Prescription transactions revenue rose 7%, driven by 8% growth in Monthly Active Consumers. The company expects FY 2024 revenue at the lower end of $800 million-$810 million, below consensus.
GoodRx has been upgraded by RBC Capital Markets due to the growth potential from the Integrated Savings Program, direct contracting initiatives, and manufacturing solutions expansion.
