GoodRx Holdings, Inc. (Nasdaq: GDRX) ("we," "us," "our,"
“GoodRx,” or the “Company”), the leading prescription savings
platform in the U.S., has released its financial results for the
second quarter of 2024.
Second Quarter 2024
Highlights
- Revenue1 and Adjusted Revenue1 of $200.6 million
- Net income of $6.7 million; Net income margin of
3.3%
- Adjusted Net Income1 of $32.4 million; Adjusted Net Income
Margin1 of 16.1%
- Adjusted EBITDA1 of $65.4 million; Adjusted EBITDA Margin1
of 32.6%
- Net cash provided by operating activities of $9.7
million
- Exited the quarter with over 7 million consumers of
prescription-related offerings2
“We’re proud of the progress we’re making against our key
priorities, especially when it comes to strengthening our
relationships with retail and PBM partners, scaling our offerings
around brand medications, and deepening our relationships with
patients,” said Scott Wagner, Interim Chief Executive Officer of
GoodRx. “While the retail pharmacy space is experiencing a bit of
choppiness, we believe GoodRx's value proposition of providing
affordable access to medications has never been more important and
we are creating ways to enrich that value proposition both for
healthcare ecosystem partners and, most importantly, for our
consumers."
1
Adjusted Revenue, Adjusted
EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted
Net Income Margin are non-GAAP financial measures and are presented
for supplemental informational purposes only. For the second
quarters of 2024 and 2023, revenue, the most directly comparable
financial measure calculated in accordance with GAAP, was equal to
Adjusted Revenue and we expect revenue to equal Adjusted Revenue
for the third quarter and full year of 2024. Revenue excluding the
$10.0 million client contract termination payment represents
Adjusted Revenue for the third quarter and full year 2023. Adjusted
EBITDA Margin and Adjusted Net Income Margin are defined as
Adjusted EBITDA and Adjusted Net Income, respectively, divided by
Adjusted Revenue. Refer to the Non-GAAP Financial Measures section
below for definitions, additional information, and reconciliations
to the most directly comparable GAAP measures.
2
Sum of Monthly Active Consumers
(MACs) for Q2'24 and subscribers to our subscription plans as of
June 30, 2024. Refer to Key Operating Metrics below for definitions
of Monthly Active Consumers and subscription plans.
Second Quarter 2024 Financial
Overview (all comparisons are made to the same period of
the prior year unless otherwise noted):
Revenue1 and Adjusted Revenue1 increased 6% to $200.6 million
compared to $189.7 million.
Prescription transactions revenue increased 7% to $146.7 million
compared to $136.5 million, primarily driven by a 8% increase in
Monthly Active Consumers principally from organic growth, including
expansion of our integrated savings program.
Subscription revenue decreased 8% to $22.0 million compared to
$23.9 million, primarily driven by a decrease in the number of
subscription plans due to the sunset of our partnership
subscription program, Kroger Savings Club.
Pharma manufacturer solutions revenue increased 9% to $26.5
million compared to $24.3 million, primarily driven by organic
growth as we continued to expand our market penetration with pharma
manufacturers and other customers, including ongoing growth in our
point of sale discount programs. The prior year quarter included
$2.7 million of revenue related to vitaCare Prescription Services,
Inc. compared to none in the second quarter of 2024 as a result of
the restructuring of our pharma manufacturer solutions offering
that occurred in the second half of 2023.
Other revenue increased 10% to $5.4 million, compared to $4.9
million.
Net income was $6.7 million compared to a net income of $58.8
million, primarily driven by a $46.7 million income tax benefit
recognized in the prior year largely due to the release of our
valuation allowance against the majority of our net deferred tax
assets which was recognized as a discrete tax benefit. Net income
margin was 3.3% compared to a net income margin of 31.0%. Adjusted
Net Income1 was $32.4 million compared to Adjusted Net Income1 of
$28.4 million.
Adjusted EBITDA1 was $65.4 million compared to $53.5 million,
primarily driven by higher prescription transactions revenue and
cost savings from the restructuring of our pharma manufacturer
solutions offering that occurred in the second half of 2023.
Adjusted EBITDA Margin1 was 32.6% compared to 28.2%.
Cash Flow and Capital
Allocation
Net cash provided by operating activities in the second quarter
was $9.7 million compared to $29.9 million in the comparable period
last year, largely driven by changes in operating assets and
liabilities, partially offset by an increase in net income after
adjusting for non-cash items. Changes in operating assets and
liabilities were principally driven by the timing of payments of
prepaid services, accounts payable and accrued expenses, income tax
payments and refunds, as well as collections of accounts
receivable. As of June 30, 2024, GoodRx had cash and cash
equivalents of $524.9 million and total outstanding debt of $656.5
million.
In July 2024, we amended our First Lien Credit Agreement to,
among other things, establish a new $500.0 million term loan (with
an original issue discount at 99.0% of the principal amount
thereof) and extend the maturity date on $88.0 million of our
$100.0 million revolving credit facility to April 10, 2029.
Concurrent with the closing of the amendment, we repaid outstanding
principal and accrued interest under our then-existing term loan in
full as well as all premiums, fees and expenses in connection with
the transactions using all of the proceeds from the new term loan
and $167.2 million of cash on hand.
GoodRx is focused on a disciplined approach to capital
allocation, centered on furthering the Company’s mission and
creating shareholder value. Our capital allocation priorities are
investing for profitable growth, paying down debt, buying back
shares, and M&A that aligns with our strategic priorities.
These capital allocation priorities support GoodRx’s long-term
growth strategy while also providing flexibility to navigate
near-term challenges.
Guidance
For the third quarter and full year 2024, management is
anticipating the following:
$ in millions
3Q 2024
3Q 2023
YoY Change
Revenue1
~$193 - $197
$180.0
~7% - 9%
Adjusted Revenue1
~$193 - $197
$190.0
~2% - 4%
Adjusted EBITDA
Margin3
~32%
$ in millions
FY 2024
FY 2023
YoY Change
Revenue1
Low end of our previous ~$800 -
$810 range
$750.3
Low end of our previous ~7% - 8%
range
Adjusted Revenue1
Low end of our previous ~$800 -
$810 range
$760.3
Low end of our previous ~5% - 7%
range
Adjusted EBITDA3
>$255
“For the third quarter of 2024, we are guiding to revenue and
Adjusted Revenue between $193 million and $197 million and Adjusted
EBITDA Margin of about 32%,” said Karsten Voermann, Chief Financial
Officer. “For the full year 2024, we expect revenue and Adjusted
Revenue to be at the lower end of our previous guidance of $800
million to $810 million. The full year guidance includes
approximately $5 million of anticipated impact from Rite Aid’s
store closures. For the full year, we expect over $255 million of
Adjusted EBITDA, up about 17% from 2023.”
“During the second quarter of 2024, our balance sheet remained
robust and we recently successfully refinanced our credit
facilities. Our capital allocation priorities are unchanged and we
will continue to prioritize high return investments and maximizing
value for shareholders,” concluded Voermann.
3
Adjusted EBITDA Margin is
Adjusted EBITDA divided by Adjusted Revenue. Adjusted EBITDA and
Adjusted EBITDA Margin are non-GAAP financial measures and are
presented for supplemental informational purposes only. We have not
reconciled our Adjusted EBITDA and Adjusted EBITDA Margin guidance
to GAAP net income or loss and GAAP net income or loss margin,
respectively, because we do not provide guidance for such GAAP
measures due to the uncertainty and potential variability of
stock-based compensation expense, acquired intangible assets and
related amortization and income taxes, which are reconciling items
between Adjusted EBITDA and Adjusted EBITDA Margin and their
respective most directly comparable GAAP measures. 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 and GAAP net income or loss margin.
Investor Conference Call and
Webcast
GoodRx management will host a conference call and webcast today,
August 8, 2024, at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time)
to discuss the results and the Company’s business outlook.
To access the conference call, please pre-register using the
following link:
https://register.vevent.com/register/BI60026e6986684b768a1fb7e88a3bc397
Registrants will receive a confirmation with dial-in details and
a unique passcode required to join.
The call will also be webcast live on the Company’s investor
relations website at https://investors.goodrx.com, where
accompanying materials will be posted prior to the conference
call.
Approximately one hour after completion of the live call, an
archived version of the webcast will be available on the Company’s
investor relations website at https://investors.goodrx.com for at
least 30 days.
About GoodRx
GoodRx is the leading prescription savings platform in the U.S.
trusted by more than 25 million consumers and 750,000 healthcare
professionals annually. GoodRx provides access to savings and
affordability options for generic and brand-name medications at
more than 70,000 pharmacies nationwide, as well as comprehensive
healthcare research and information. We also equip healthcare
professionals with efficient ways to find and prescribe affordable
medications. Since 2011, GoodRx has helped consumers save over $75
billion on the cost of their prescriptions.
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 non-public 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 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 future results of operations and financial position,
industry and business trends, including the anticipated impact of
retail pharmacy closures, our value proposition, our collaborations
and partnerships with third parties, including our integrated
savings programs, our business strategy and our ability to execute
on our strategic priorities and value creation, our plans, market
opportunity and long-term growth prospects, our capital allocation
priorities, and our objectives for future operations. 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 our
limited operating history and early stage of growth; our ability to
achieve broad market education and change consumer purchasing
habits; our general ability to continue to attract, acquire and
retain consumers in a cost-effective manner; our significant
reliance on our prescription transactions offering and ability to
expand our offerings; changes in medication pricing and the
significant impact of pricing structures negotiated by industry
participants; our general inability to control the categories and
types of prescriptions for which we can offer savings or discounted
prices; our reliance on a limited number of industry participants,
including pharmacy benefit managers, pharmacies, and pharma
manufacturers; the competitive nature of industry; risks related to
pandemics, epidemics or outbreak of infectious disease, such as
COVID-19; the accuracy of our estimate of our addressable market
and other operational metrics; our ability to respond to changes in
the market for prescription pricing and to maintain and expand the
use of GoodRx codes; our ability to maintain positive perception of
our platform or maintain and enhance our brand; risks related to
any failure to maintain effective internal control over financial
reporting; risks related to use of social media, emails, text
messages and other messaging channels as part of our marketing
strategy; our dependence on our information technology systems and
those of our third-party vendors, and risks related to any failure
or significant disruptions thereof; risks related to government
regulation of the internet, e-commerce, consumer data and privacy,
information technology and cybersecurity; risks related to a
decrease in consumer willingness to receive correspondence or any
technical, legal or any other restrictions to send such
correspondence; risks related to any failure to comply with
applicable data protection, privacy and security, advertising and
consumer protection laws, regulations, standards, and other
requirements; our ability to utilize our net operating loss
carryforwards and certain other tax attributes; the risk that we
may be unable to realize expected benefits from our restructuring
and cost reduction efforts; our ability to attract, develop,
motivate and retain well-qualified employees; risks related to our
acquisition strategy; risks related to our debt arrangements;
interruptions or delays in service on our apps or websites or any
undetected errors or design faults; our reliance on third-party
platforms to distribute our platform and offerings, including
software as-a-service technologies; systems failures or other
disruptions in the operations of these parties on which we depend;
risks related to climate change; the increasing focus on
environmental sustainability and social initiatives; risks related
to our intellectual property; risks related to operating in the
healthcare industry; risks related to our organizational structure;
litigation related risks; our ability to accurately forecast
revenue and appropriately plan our expenses in the future; risks
related to general economic factors, natural disasters or other
unexpected events; risks related to fluctuations in our tax
obligations and effective income tax rate which could materially
and adversely affect our results of operations; risks related to
the recent healthcare reform legislation and other changes in the
healthcare industry and in healthcare spending which may adversely
affect our business, financial condition and results of operations;
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, 2023 and in our other filings with
the Securities and Exchange Commission. 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.
Key Operating Metrics
Monthly Active Consumers (MACs) refers to the number of unique
consumers who have used a GoodRx code to purchase a prescription
medication in a given calendar month and have saved money compared
to the list price of the medication. A unique consumer who uses a
GoodRx code more than once in a calendar month to purchase
prescription medications is only counted as one Monthly Active
Consumer in that month. A unique consumer who uses a GoodRx code in
two or three calendar months within a quarter will be counted as a
Monthly Active Consumer in each such month. Monthly Active
Consumers do not include subscribers to our subscription offerings,
consumers of our pharma manufacturer solutions offering, or
consumers who use our telehealth offering. When presented for a
period longer than a month, Monthly Active Consumers are averaged
over the number of calendar months in such period. Monthly Active
Consumers from acquired companies are only included beginning in
the first full quarter following the acquisition.
Subscription plans represent the ending subscription plan
balance across both of our subscription offerings, GoodRx Gold and
Kroger Savings Club, which sunset in July 2024. Each subscription
plan may represent more than one subscriber since family
subscription plans may include multiple members.
We exited the second quarter of 2024 with over 7 million
prescription-related consumers that used GoodRx across our
prescription transactions and subscription offerings. Our
prescription-related consumers represent the sum of Monthly Active
Consumers for the three months ended June 30, 2024 and subscribers
to our subscription plans as of June 30, 2024.
Three Months Ended
(in millions)
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
March 31, 2023
Monthly Active Consumers
6.6
6.7
6.4
6.1
6.1
6.1
As of
(in thousands)
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
March 31, 2023
Subscription plans
696
778
884
930
969
1,007
GoodRx Holdings, Inc.
Condensed Consolidated Balance
Sheets (Unaudited)
(in thousands, except par
values)
June 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
524,903
$
672,296
Accounts receivable, net
161,774
143,608
Prepaid expenses and other current
assets
63,878
56,886
Total current assets
750,555
872,790
Property and equipment, net
14,495
15,932
Goodwill
410,769
410,769
Intangible assets, net
56,022
60,898
Capitalized software, net
111,774
95,439
Operating lease right-of-use assets,
net
29,893
29,929
Deferred tax assets, net
65,268
65,268
Other assets
36,614
37,775
Total assets
$
1,475,390
$
1,588,800
Liabilities and stockholders'
equity
Current liabilities
Accounts payable
$
16,884
$
36,266
Accrued expenses and other current
liabilities
73,172
71,329
Current portion of debt
7,029
8,787
Operating lease liabilities, current
5,388
6,177
Total current liabilities
102,473
122,559
Debt, net
645,648
647,703
Operating lease liabilities, net of
current portion
49,316
48,403
Other liabilities
8,554
8,177
Total liabilities
805,991
826,842
Stockholders' equity
Preferred stock, $0.0001 par value
—
—
Common stock, $0.0001 par value
38
40
Additional paid-in capital
2,121,079
2,219,321
Accumulated deficit
(1,451,718
)
(1,457,403
)
Total stockholders' equity
669,399
761,958
Total liabilities and stockholders'
equity
$
1,475,390
$
1,588,800
GoodRx Holdings, Inc.
Condensed Consolidated
Statements of Operations (Unaudited)
(in thousands, except per share
amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
200,610
$
189,677
$
398,490
$
373,663
Costs and operating expenses:
Cost of revenue, exclusive of depreciation
and amortization presented separately below
11,870
16,339
24,338
33,034
Product development and technology
30,854
31,285
61,871
64,193
Sales and marketing
93,454
77,440
183,418
155,962
General and administrative
27,589
30,208
68,697
59,827
Depreciation and amortization
16,965
16,097
32,907
31,036
Total costs and operating expenses
180,732
171,369
371,231
344,052
Operating income
19,878
18,308
27,259
29,611
Other expense, net:
Other expense
—
—
—
(1,808
)
Interest income
6,334
7,814
13,889
15,048
Interest expense
(14,566
)
(14,054
)
(29,209
)
(27,187
)
Total other expense, net
(8,232
)
(6,240
)
(15,320
)
(13,947
)
Income before income taxes
11,646
12,068
11,939
15,664
Income tax (expense) benefit
(4,952
)
46,718
(6,254
)
39,832
Net income
$
6,694
$
58,786
$
5,685
$
55,496
Earnings per share:
Basic
$
0.02
$
0.14
$
0.01
$
0.13
Diluted
$
0.02
$
0.14
$
0.01
$
0.13
Weighted average shares used in
computing earnings per share:
Basic
376,254
412,221
386,153
412,322
Diluted
384,732
414,335
393,620
414,373
Stock-based compensation included in
costs and operating expenses:
Cost of revenue
$
64
$
180
$
140
$
341
Product development and technology
6,259
7,534
12,107
16,123
Sales and marketing
9,396
(3,020
)
17,523
1,392
General and administrative
10,871
13,203
21,916
25,540
GoodRx Holdings, Inc.
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities
Net income
$
5,685
$
55,496
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
32,907
31,036
Amortization of debt issuance costs
1,663
1,695
Non-cash operating lease expense
1,930
2,055
Stock-based compensation expense
51,686
43,396
Deferred income taxes
—
(62,980
)
Loss on operating lease assets
—
374
Loss on minority equity interest
investment
—
1,808
Changes in operating assets and
liabilities
Accounts receivable
(18,166
)
(6,237
)
Prepaid expenses and other assets
(5,981
)
(13,574
)
Accounts payable
(18,017
)
(10,972
)
Accrued expenses and other current
liabilities
1,973
18,418
Operating lease liabilities
(1,770
)
(665
)
Other liabilities
377
2,304
Net cash provided by operating
activities
52,287
62,154
Cash flows from investing
activities
Purchase of property and equipment
(675
)
(440
)
Capitalized software
(37,169
)
(28,807
)
Net cash used in investing activities
(37,844
)
(29,247
)
Cash flows from financing
activities
Payments on long-term debt
(5,273
)
(3,515
)
Repurchases of Class A common stock
(153,226
)
(18,437
)
Proceeds from exercise of stock
options
11,772
1,267
Employee taxes paid related to net share
settlement of equity awards
(15,966
)
(8,048
)
Proceeds from employee stock purchase
plan
857
649
Net cash used in financing activities
(161,836
)
(28,084
)
Net change in cash and cash
equivalents
(147,393
)
4,823
Cash and cash equivalents
Beginning of period
672,296
757,165
End of period
$
524,903
$
761,988
Non-GAAP Financial Measures
Adjusted Revenue and metrics presented as a percentage of
Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted
Net Income, Adjusted Net Income Margin and Adjusted Earnings Per
Share are supplemental measures of our performance that are not
required by, or presented in accordance with, U.S. GAAP. We also
present each cost and operating expense on our condensed
consolidated statements of operations on an adjusted basis to
arrive at adjusted operating income. Collectively, we refer to
these non-GAAP financial measures as our “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 define Adjusted Net Income for a particular period as net
income or loss adjusted for, as applicable for the periods
presented, amortization of intangibles related to acquisitions,
amortization of intangibles related to restructuring activities,
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, other expense, and as further adjusted for estimated
income tax on such adjusted items. Our adjusted taxes also excludes
(i) the valuation allowance recorded against certain of our net
deferred tax assets that was recognized in accordance with GAAP and
any subsequent releases of the valuation allowance, and (ii) all
tax benefits/expenses resulting from excess tax
benefits/deficiencies in connection with stock-based compensation.
Adjusted Net Income Margin represents Adjusted Net Income as a
percentage of Adjusted Revenue.
Adjusted Earnings Per Share is Adjusted Net Income attributable
to common stockholders divided by weighted average number of
shares. The weighted average shares we use in computing Adjusted
Earnings Per Share – basic is equal to our GAAP weighted average
shares – basic and the weighted average shares we use in computing
Adjusted Earnings Per Share – diluted is equal to either GAAP
weighted average shares – basic or GAAP weighted average shares –
diluted, depending on whether we have adjusted net loss or adjusted
net income, respectively.
We also assess our performance by evaluating each cost and
operating expense on our condensed consolidated statements of
operations on a non-GAAP, or adjusted, basis to arrive at adjusted
operating income. The adjustments to these cost and operating
expense items include, as applicable for the periods presented,
acquisition related expenses, amortization of intangibles related
to acquisitions and restructuring activities, stock-based
compensation expense, payroll tax expense related to stock-based
compensation, loss on extinguishment of debt, financing related
expenses, restructuring related expenses, legal settlement
expenses, loss on operating lease assets, charitable stock
donation, other expense, and gain on sale of business. Adjusted
operating income is Adjusted Revenue less non-GAAP costs and
operating expenses.
We believe our 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, Adjusted EBITDA Margin, Adjusted
Net Income and Adjusted Earnings Per Share 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 costs 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 net income and
revenue, the most directly comparable financial measures calculated
in accordance with GAAP, to Adjusted EBITDA and Adjusted Revenue,
respectively, and presents net income margin, the most directly
comparable financial measure calculated in accordance with GAAP,
with Adjusted EBITDA Margin:
(dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income
$
6,694
$
58,786
$
5,685
$
55,496
Adjusted to exclude the following:
Interest income
(6,334
)
(7,814
)
(13,889
)
(15,048
)
Interest expense
14,566
14,054
29,209
27,187
Income tax expense (benefit)
4,952
(46,718
)
6,254
(39,832
)
Depreciation and amortization
16,965
16,097
32,907
31,036
Other expense
—
—
—
1,808
Financing related expenses
392
—
832
—
Acquisition related expenses
174
385
348
1,441
Restructuring related expenses
566
—
441
—
Legal settlement expenses
—
—
13,000
—
Stock-based compensation expense
26,590
17,897
51,686
43,396
Payroll tax expense related to stock-based
compensation
847
405
1,726
845
Loss on operating lease assets
—
374
—
374
Adjusted EBITDA
$
65,412
$
53,466
$
128,199
$
106,703
Revenue and Adjusted Revenue (1)
$
200,610
$
189,677
$
398,490
$
373,663
Net income margin
3.3
%
31.0
%
1.4
%
14.9
%
Adjusted EBITDA Margin
32.6
%
28.2
%
32.2
%
28.6
%
____________________
(1)
Revenue was equal to Adjusted
Revenue as there was no client contract termination cost associated
with restructuring related activities in the periods presented.
The following tables present a reconciliation of net income and
revenue and calculations of net income margin and earnings per
share, the most directly comparable financial measures calculated
in accordance with GAAP, to Adjusted Net Income, Adjusted Revenue,
Adjusted Net Income Margin, and Adjusted Earnings Per Share,
respectively:
(dollars in thousands, except per
share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income
$
6,694
$
58,786
$
5,685
$
55,496
Adjusted to exclude the following:
Amortization of intangibles related to
acquisitions
2,100
5,599
4,876
11,208
Other expense
—
—
—
1,808
Financing related expenses
392
—
832
—
Acquisition related expenses
174
385
348
1,441
Restructuring related expenses
566
—
441
—
Legal settlement expenses
—
—
13,000
—
Stock-based compensation expense
26,590
17,897
51,686
43,396
Payroll tax expense related to stock-based
compensation
847
405
1,726
845
Loss on operating lease assets
—
374
—
374
Income tax effects of excluded items and
adjustments for valuation allowance and excess tax
benefits/deficiencies from equity awards
(4,991
)
(55,059
)
(13,636
)
(56,666
)
Adjusted Net Income
$
32,372
$
28,387
$
64,958
$
57,902
Revenue and Adjusted Revenue (1)
$
200,610
$
189,677
$
398,490
$
373,663
Net income margin
3.3
%
31.0
%
1.4
%
14.9
%
Adjusted Net Income Margin
16.1
%
15.0
%
16.3
%
15.5
%
Weighted average shares used in
computing earnings per share:
Basic
376,254
412,221
386,153
412,322
Diluted
384,732
414,335
393,620
414,373
Earnings per share:
Basic
$
0.02
$
0.14
$
0.01
$
0.13
Diluted
$
0.02
$
0.14
$
0.01
$
0.13
Weighted average shares used in
computing Adjusted Earnings Per Share:
Basic
376,254
412,221
386,153
412,322
Diluted
384,732
414,335
393,620
414,373
Adjusted Earnings Per Share:
Basic
$
0.09
$
0.07
$
0.17
$
0.14
Diluted
$
0.08
$
0.07
$
0.17
$
0.14
____________________
(1)
Revenue was equal to Adjusted
Revenue as there was no client contract termination cost associated
with restructuring related activities in the periods presented.
The following table presents (i) each non-GAAP, or adjusted,
cost and expense and operating income measure together with its
most directly comparable financial measure calculated in accordance
with GAAP; and (ii) each adjusted cost and expense and adjusted
operating income as a percentage of Adjusted Revenue together with
each GAAP cost and expense and operating income as a percentage of
revenue, the most directly comparable financial measure calculated
in accordance with GAAP:
(dollars in thousands)
GAAP
Adjusted
GAAP
Adjusted
Three Months Ended June
30,
Three Months Ended June
30,
Six Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
2024
2023
2024
2023
Cost of revenue
$
11,870
$
16,339
$
11,801
$
16,145
$
24,338
$
33,034
$
24,497
$
32,677
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
6
%
9
%
6
%
9
%
6
%
9
%
6
%
9
%
Product development and technology
$
30,854
$
31,285
$
24,087
$
23,470
$
61,871
$
64,193
$
48,665
$
47,380
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
15
%
16
%
12
%
12
%
16
%
17
%
12
%
13
%
Sales and marketing
$
93,454
$
77,440
$
83,752
$
80,393
$
183,418
$
155,962
$
165,148
$
154,417
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
47
%
41
%
42
%
42
%
46
%
42
%
41
%
41
%
General and administrative
$
27,589
$
30,208
$
15,558
$
16,203
$
68,697
$
59,827
$
31,981
$
32,486
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
14
%
16
%
8
%
9
%
17
%
16
%
8
%
9
%
Depreciation and amortization
$
16,965
$
16,097
$
14,865
$
10,498
$
32,907
$
31,036
$
28,031
$
19,828
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
8
%
8
%
7
%
6
%
8
%
8
%
7
%
5
%
Operating income
$
19,878
$
18,308
$
50,547
$
42,968
$
27,259
$
29,611
$
100,168
$
86,875
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
10
%
10
%
25
%
23
%
7
%
8
%
25
%
23
%
The following table presents a reconciliation of each non-GAAP,
or adjusted, cost and expense and operating income measure to its
most directly comparable financial measure calculated in accordance
with GAAP:
(dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Cost of revenue
$
11,870
$
16,339
$
24,338
$
33,034
Restructuring related expenses
—
—
311
—
Stock-based compensation expense
(64
)
(180
)
(140
)
(341
)
Payroll tax expense related to stock-based
compensation
(5
)
(14
)
(12
)
(16
)
Adjusted cost of revenue
$
11,801
$
16,145
$
24,497
$
32,677
Product development and technology
$
30,854
$
31,285
$
61,871
$
64,193
Acquisition related expenses
(26
)
(79
)
(52
)
(279
)
Restructuring related expenses
(20
)
—
(112
)
—
Stock-based compensation expense
(6,259
)
(7,534
)
(12,107
)
(16,123
)
Payroll tax expense related to stock-based
compensation
(462
)
(202
)
(935
)
(411
)
Adjusted product development and
technology
$
24,087
$
23,470
$
48,665
$
47,380
Sales and marketing
$
93,454
$
77,440
$
183,418
$
155,962
Acquisition related expenses
(148
)
—
(296
)
—
Restructuring related expenses
—
—
(114
)
—
Stock-based compensation expense
(9,396
)
3,020
(17,523
)
(1,392
)
Payroll tax expense related to stock-based
compensation
(158
)
(67
)
(337
)
(153
)
Adjusted sales and marketing
$
83,752
$
80,393
$
165,148
$
154,417
General and administrative
$
27,589
$
30,208
$
68,697
$
59,827
Financing related expenses
(392
)
—
(832
)
—
Acquisition related expenses
—
(306
)
—
(1,162
)
Restructuring related expenses
(546
)
—
(526
)
—
Legal settlement expenses
—
—
(13,000
)
—
Stock-based compensation expense
(10,871
)
(13,203
)
(21,916
)
(25,540
)
Payroll tax expense related to stock-based
compensation
(222
)
(122
)
(442
)
(265
)
Loss on operating lease assets
—
(374
)
—
(374
)
Adjusted general and administrative
$
15,558
$
16,203
$
31,981
$
32,486
Depreciation and amortization
$
16,965
$
16,097
$
32,907
$
31,036
Amortization of intangibles related to
acquisitions
(2,100
)
(5,599
)
(4,876
)
(11,208
)
Adjusted depreciation and amortization
$
14,865
$
10,498
$
28,031
$
19,828
Operating income
$
19,878
$
18,308
$
27,259
$
29,611
Amortization of intangibles related to
acquisitions
2,100
5,599
4,876
11,208
Financing related expenses
392
—
832
—
Acquisition related expenses
174
385
348
1,441
Restructuring related expenses
566
—
441
—
Legal settlement expenses
—
—
13,000
—
Stock-based compensation expense
26,590
17,897
51,686
43,396
Payroll tax expense related to stock-based
compensation
847
405
1,726
845
Loss on operating lease assets
—
374
—
374
Adjusted operating income
$
50,547
$
42,968
$
100,168
$
86,875
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808814959/en/
Investor Contact GoodRx Aubrey Reynolds ir@goodrx.com
Press Contact GoodRx Lauren Casparis
lcasparis@goodrx.com
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