Curious about GoodRx net worth and its financial performance in 2024? We dive deep into how revenue sources drive the company’s growth and profitability.
Here, you’ll get an overview of GoodRx’s financial status, backed by accurate data and analysis from Ando Money. Let’s explore what’s behind its revenue and financial strategy.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | GoodRx Holdings, Inc. |
| Full Name | GoodRx Holdings, Inc. |
| Website | goodrx.com |
| Industry | Prescription Savings Platform |
| Traded as | Nasdaq: GDRX |
| ISIN | N/A |
| Founded | 2011 |
| Founders | Trevor Bezdek Doug Hirsch Scott Marlett |
| Country/Territory | United States |
| Headquarters | Santa Monica, California |
| Chief Executive Officer | Scott Wagner (Interim CEO) |
| Number of Employees | N/A |
| Market Cap | $2.60 Billion |
| Total Assets | $1.475 Billion |
| Total Equity | $669.4 Million |
| Revenue | $200.6 Million (Q2 2024) |
| Net Income | $6.7 Million (Q2 2024) |
What is the Net Worth/Market Cap of GoodRx in 2024?
As of October 2024, GoodRx’s market cap stands at $2.60 billion, making it one of the significant players in the prescription savings market.
In comparison to other companies in the healthcare and finance sectors, GoodRx’s valuation puts it in a competitive range, with its growth influenced by strategic partnerships and evolving revenue streams.
If you’re interested in finding out more about the “wealthiest companies globally”, consider checking out our list of the richest companies.
Companies to compare:
- Teladoc Health
- CVS Health
- McKesson Corporation
- Cigna
- UnitedHealth Group
- Walgreens Boots Alliance
- Amazon Pharmacy
- OptumRx
- Humana
- Rite Aid
GoodRx Financial Performance Overview
How Revenue Streams Drive Financial Growth
Prescription Transactions Revenue is GoodRx’s largest revenue stream, accounting for $146.7 million in Q2 2024, a 7% increase year-over-year (YoY).
This growth primarily comes from an 8% rise in Monthly Active Consumers (MACs), reflecting organic growth.
Prescription transactions remain at the core of the business, and the company’s ability to integrate savings programs has supported this steady revenue increase.
In contrast, Subscription Revenue saw an 8% decline, totaling $22 million for Q2 2024. This drop is primarily due to the discontinuation of the Kroger Savings Club.
While this negatively impacted subscription numbers, GoodRx continues to explore other partnerships and subscription models to enhance this revenue stream.
Pharma Manufacturer Solutions showed a 9% growth YoY, contributing $26.5 million to the revenue.
The expansion in market penetration with pharma manufacturers and the focus on point-of-sale discount programs have been significant contributors.
Despite restructuring in the latter half of 2023, which saw no revenue from vitaCare Prescription Services, GoodRx’s diversified approach continues to bolster revenue.
Other Revenue stands at $5.4 million, representing a 10% YoY increase.
These multiple revenue streams contribute to the company’s overall financial stability and consistent growth trajectory.
Understanding Operating Income and Profit Margins
GoodRx’s Operating Income for Q2 2024 reached $19.9 million, with a 10% margin of total revenue. A significant aspect of their financial success lies in cost management.
Expenses such as product development, technology, and marketing are carefully controlled to optimize profitability.
For instance, the company’s sales and marketing expenses accounted for $93.5 million, whereas product development and technology expenses stood at $30.9 million.
The company reported an Adjusted EBITDA of $65.4 million, highlighting an Adjusted EBITDA Margin of 32.6%.
This improvement from 28.2% in Q2 2023 underscores GoodRx’s efficiency in generating profit.
The non-GAAP measure gives a more comprehensive look at the company’s operating performance, excluding various costs that don’t impact day-to-day operations.
Financial Strategies Supporting Revenue Growth
GoodRx follows a disciplined approach to capital allocation. Their strategy revolves around enhancing profitable growth, repaying debt, and making selective acquisitions to expand market reach.
This focus is essential in sustaining and supporting long-term growth.
A pivotal move in Debt Management was the amendment of their First Lien Credit Agreement, resulting in a new $500 million term loan, extending the revolving credit maturity to 2029.
Such financial maneuvering allows GoodRx to optimize capital structure and maintain financial flexibility.
Consumer Engagement as a Financial Driver
The company’s revenue success is closely tied to its engagement with Monthly Active Consumers (MACs), which reached 6.6 million in Q2 2024.
Increasing the user base has been crucial in driving up prescription transactions and overall revenue. GoodRx’s consumer-centric approach, providing savings on medication costs, helps maintain steady growth.
GoodRx’s subscription plans, including offerings like GoodRx Gold, play a role in consumer loyalty.
Though the decline in subscription numbers impacted short-term revenue, these plans are crucial for long-term financial stability.
Cash Flow and Liquidity Analysis
GoodRx’s Net Cash Provided by Operating Activities totaled $9.7 million in Q2 2024, a drop from the $29.9 million reported the previous year.
This change is primarily due to shifts in operating assets and liabilities, particularly in the timing of payments and collections.
The company maintains a healthy liquidity position with cash and cash equivalents of $524.9 million as of June 2024.
Balancing cash reserves against a total outstanding debt of $656.5 million, GoodRx continues to strategically use its cash to fund operations, repay debts, and support business growth.
Future Financial Outlook and Revenue Guidance
For Q3 and FY 2024, GoodRx expects revenue in the range of $193 – $197 million and $800 – $810 million, respectively.
The full-year guidance includes a slight adjustment to account for approximately $5 million in anticipated impacts from Rite Aid’s store closures.
With projections estimating over $255 million in Adjusted EBITDA for the year, GoodRx remains focused on navigating market changes while maintaining a robust financial position.
FAQs about GoodRx
How does GoodRx make most of its revenue?
Its primary source of revenue is through prescription transactions, which accounted for $146.7 million in Q2 2024. This segment grows by helping users save on medication costs, driving transaction volume.
What are GoodRx’s strategies for maintaining financial growth?
It focuses on disciplined capital allocation, investing in profitable growth, paying down debt, and exploring strategic acquisitions. This approach aims to support the company’s long-term expansion.
How does GoodRx’s subscription model impact its financials?
The subscription revenue stood at $22 million in Q2 2024, although it faced a decline due to the end of the Kroger Savings Club.
What is GoodRx’s cash flow situation?
It reported $9.7 million in net cash provided by operating activities in Q2 2024, with cash and cash equivalents of $524.9 million against a debt of $656.5 million, indicating a solid liquidity position.
How does consumer engagement influence GoodRx’s finances?
With 6.6 million active consumers in Q2 2024, GoodRx’s financial health is closely linked to consumer activity. A growing consumer base translates directly into increased prescription transactions and revenue growth.
Conclusion
I hope this in-depth analysis of GoodRx’s financial performance has been insightful.
If you’d like to explore more financial insights or have any thoughts to share, visit Ando Money. Let’s continue the conversation!
