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Tag: GDRX stock

  • GoodRx Holdings Inc. (GDRX) Sinks Post Earnings on Outlook Cut Down Due to Grocery Chain Issue

    On May 9, GoodRx Holdings Inc. (GDRX) posted a beat quarterly report for Q1 2022 with revenue and earnings both above expectations. But concerns over a grocery chain issue have the company slashing down its 2022 guidance. The company said it is unlikely to achieve the previously provided outlook for the year. Thus, despite the beat earnings, the outlook worries caused the stock to tank in the pre-market.

    Source: FreshBooks

    GDRX, hence, declined by a huge 36.19% in the pre-market while 30,968 shares traded hands. The stock was then trading at a price of $6.86 per share while it closed the prior session at $10.75 apiece. Thus, the stock registered a new 52-week low in the pre-market against the previous $10.66.

    GDRX’s Q1 2022 Earnings Preview

    For the March quarter of fiscal 2022, the company reported revenue of $203.3 million which increased by a nice 27% YOY. Surpassing consensus estimate by 1.74%, the revenue improved from $160.4 million in the year-ago quarter.

    Moreover, the adjusted net income for the quarter was $41.3 million with quarterly earnings of 10 cents a share. This surpassed the consensus estimate of 8 cents per share for the quarter while improving 30% YOY on an adjusted basis.

    While the monthly active consumers went up by 12% YOY, subscription plans increased by 29%. The adjusted EBITDA grew by 27% YOY to reach $64.7 million in the quarter.

    On the other hand, certain changes in operating activities, accrued and prepaid expenses, and account receivables collection resulted in a YOY decline of 34% in cash provided by operating activities.

    What’s with the Outlook Cut Down?

    In the letter to shareholders regarding the quarterly earnings, GDRX said that near the end of Q1 a grocery chain took actions that impacted acceptance of discounted pricing for a subset of drugs from PBMs which are its customers. This was declared to have an immaterial impact on the company’s subscription revenues in Q1 but the impact is expected to be huge in the ongoing Q2.

    The dynamic intensified in April as it impacted more drugs in more of the grocer’s pharmacies which will lead to a significant loss in volume. Subsequently, the company now expected Q2 revenue to be roughly $190 million while it remains uncertain of the impact on the full-year revenue.

    Conclusion

    Due to an issue with a grocer, GDRX is now expecting lower revenue in the ongoing quarter and is uncertain how much the full-year revenue will be impacted. Thus, despite a beat earnings report, the outlook worries caused the stock to plunge in the pre-market on Monday.

  • GoodRx Holdings Inc. (GDRX) stock Slides After Hours on Missed 2021 Earnings

    On February 28, GoodRx Holdings Inc. (GDRX) declared its Q4 and fiscal 2021 financial results. Along with that, the company also announced a share repurchase program. Following the news, the company’s stock took a harsh hit in the after-hours as it missed both earnings and outlook estimates.

    Source: Pexels

    The stock remained bullish in the regular session on positive expectations of the earnings report as it traded at 4.07 million shares. At 251% of the average volume, GDRX stock closed the session at $27.40, to gain a value of 4.22%. Following the announcements, the stock took a blow in the after-hours to reach $19.37. Hence, the stock lost a huge 29.31% in the after-hours while 2.15 million shares exchanged hands. Therefore, the missed earnings caused the stock to mark its new 52-week low in the after-hours against the previous $21.13.

    The consumer-focused digital healthcare platform operator, GoodRx Holdings Inc. was founded in 2015. The Santa Monica, CA-based company has a market capitalization of $10.49 billion with its 80.7 million outstanding shares. Currently, the stock stands at a year-to-date loss of 16.16% while it has added 8.13% in the past five days.

    GDRX’s 2021 Financials

    Q4 2021

    In the fourth quarter of 2021, the company’s revenue increased by 39% YOY to $213.3 million.

    Moreover, the adjusted net income of GDRX was $40.5 million in Q4 2021, against $32.2 million in the year-ago quarter. Thus, marking a YOY change of 26%.

    The adjusted EBITDA margin went down by 280 bps TO 29.2% in the quarter, against 32.0% a year ago.

    Fiscal 2021

    The company had revenue of $745.4 million in fiscal 2021, marking an increase of 35% YOY.

    Furthermore, the adjusted net income was $147.0 million with an increase of 10% YOY.

    Additionally, the adjusted EBITDA margin declined u 610 bps to 30.8% in fiscal 2021.

    2022 Outlook

    GDRX expects an adjusted EBITDA margin of 28-30% on revenue of $200 million approx. for Q1 2022. For fiscal 2022, the company expects an adjusted EBITDA margin of 31-33% with revenue growth of approx. 23% YOY.

    Share Repurchase Program

    The company also announced the authorization of up to $250 million of Class A common stock’s share repurchase program. The program is expected to expire on February 23, 2024, but can be modified, suspended, or terminated at the discretion of GDRX at any time.