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
third quarter of 2024.
Third Quarter 2024
Highlights
- Revenue1 and Adjusted Revenue1 of $195.3 million
- Net income of $4.0 million; Net income margin of
2.0%
- Adjusted Net Income1 of $31.9 million; Adjusted Net Income
Margin1 of 16.4%
- Adjusted EBITDA1 of $65.0 million; Adjusted EBITDA Margin1
of 33.3%
- Net cash provided by operating activities of $86.9
million
- Exited the quarter with over 7 million consumers of
prescription-related offerings2
“In a world where there is increasing attention on medicine
affordability and access, we believe the strategic high ground
belongs to brands and companies that benefit patients and remove
friction from a complicated healthcare ecosystem. At GoodRx, that's
our North Star and we believe it's enabled us to gain share in our
category and strengthen our value proposition throughout 2024,”
said Scott Wagner, Interim Chief Executive Officer of GoodRx. “We
continue to build momentum on our programs with brand manufacturers
and anticipate about 20% year-over-year top-line growth in our
pharma manufacturer solutions offering for Q4 2024, and 20%+ for
full year 2025. And while the retail pharmacy environment is
experiencing short-term choppiness, we believe we continue to
provide invaluable support to our partners by driving traffic and
helping them meet their merchandising goals.”
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 third quarter of
2024, 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 fourth
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
Q3'24 and subscribers to our subscription plans as of September 30,
2024. Refer to Key Operating Metrics below for definitions of
Monthly Active Consumers and subscription plans.
Third Quarter 2024 Financial
Overview (all comparisons are made to the same period of
the prior year unless otherwise noted):
Revenue1 increased 8% to $195.3 million compared to $180.0
million. Adjusted Revenue1 increased 3% to $195.3 million compared
to $190.0 million.
Prescription transactions revenue increased 4% to $140.4 million
compared to $135.4 million, primarily driven by a 7% increase in
Monthly Active Consumers principally from organic growth, including
expansion of our integrated savings program.
Subscription revenue decreased 8% to $21.3 million compared to
$23.2 million, primarily driven by a decrease in the number of
subscription plans due to the sunset of our partnership
subscription program, Kroger Savings Club. Kroger Savings Club
contributed $2.1 million of subscription revenue in the third
quarter 2023 and nil for the same period of 2024.
Pharma manufacturer solutions revenue increased 77% to $28.1
million compared to $15.9 million, primarily driven by a $10.0
million client contract termination payment recognized as a
reduction of revenue in the prior year quarter in connection with
the restructuring of our pharma manufacturer solutions offering in
the second half of 2023 (the “restructuring”). The year-over-year
change was also 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, which fully offset the $2.5 million decrease in revenue
contribution from vitaCare Prescription Services, Inc., a solution
we de-prioritized in connection with the restructuring.
Net income was $4.0 million compared to a net loss of $38.5
million. The year-over year change was primarily driven by
restructuring related costs including accelerated amortization of
certain intangible assets incurred in the prior year quarter in
connection with the restructuring and the subsequent run rate
savings. The impact from these drivers was partially offset by debt
refinancing costs incurred in the current year quarter and changes
in our income tax position. Net income margin was 2.0% compared to
a net loss margin of 21.4%. Adjusted Net Income1 was $31.9 million
compared to Adjusted Net Income1 of $25.5 million.
Adjusted EBITDA1 was $65.0 million compared to $53.5 million.
The year-over-year change was primarily driven by top-line growth
and run rate savings as a result of the restructuring. Adjusted
EBITDA Margin1 was 33.3% compared to 28.1%.
Cash Flow and Capital
Allocation
Net cash provided by operating activities in the third quarter
was $86.9 million compared to $60.3 million in the comparable
period last year, driven by an increase in net income after
adjusting for non-cash items and changes in operating assets and
liabilities. 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
September 30, 2024, we had cash and cash equivalents of $423.8
million and total outstanding debt of $500.0 million.
As previously announced, in July 2024, we refinanced our debt
to, among other things, establish a new $500.0 million term loan
facility that matures on July 10, 2029 and extend the maturity date
on $88.0 million of our $100.0 million revolving credit facility to
April 10, 2029. Concurrent with the refinance, we repaid our
then-existing term loan in full using all the proceeds from the new
term loan (either in cash or via conversion) and cash on hand.
We are focused on a disciplined approach to capital allocation,
centered on furthering our 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 our long-term growth strategy while also
providing flexibility to navigate near-term challenges.
Share Repurchases
During the third quarter of 2024, we repurchased 0.8 million
shares of Class A common stock for an aggregate of $5.3 million. As
of September 30, 2024, we had $290.2 million of unused authorized
share repurchase capacity under our $450.0 million share repurchase
program that does not expire.
Guidance
For the fourth quarter and full year 2024, management is
anticipating the following:
$ in millions
4Q
2024
4Q
2023
YoY
Change
Revenue1
~$200
$196.6
~2%
Adjusted Revenue1
~$200
$196.6
~2%
Adjusted EBITDA Margin3
~34%
29.1%
~490 bps
$ in millions
FY
2024
FY
2023
YoY
Change
Revenue1
~$794
$750.3
~6%
Adjusted Revenue1
~$794
$760.3
~4%
Adjusted EBITDA3
$255 - $260
$217.4
17% - 20%
“For the fourth quarter of 2024, we are guiding to revenue and
Adjusted Revenue of approximately $200 million and Adjusted EBITDA
Margin of about 34%,” said Karsten Voermann, Chief Financial
Officer. “While our full year 2024 revenue and Adjusted Revenue
expectations are lower than what we previously indicated, we are
confident we can achieve strong Adjusted EBITDA of $255 to $260
million, up over 17% from 2023, and Adjusted EBITDA Margin of over
32%, up more than 340 basis points from 2023.”
“Our balance sheet and liquidity remained robust in the third
quarter of 2024. 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,
November 7, 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/BIe2e0d2e5ebec4cc3ae9f66e59492a2f5
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. 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, consumer and
partner perception and our position in the healthcare
ecosystem/industry, 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 third 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 September 30, 2024 and
subscribers to our subscription plans as of September 30, 2024.
Three Months Ended
(in millions)
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
March 31, 2023
Monthly Active Consumers
6.5
6.6
6.7
6.4
6.1
6.1
6.1
As of
(in thousands)
September 30,
2024
June 30, 2024
March 31, 2024
December 31,
2023
September 30,
2023
June 30, 2023
March 31, 2023
Subscription plans
701
696
778
884
930
969
1,007
GoodRx Holdings, Inc.
Condensed Consolidated Balance
Sheets (Unaudited)
(in thousands, except par
values)
September 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
423,777
$
672,296
Accounts receivable, net
130,803
143,608
Prepaid expenses and other current
assets
72,220
56,886
Total current assets
626,800
872,790
Property and equipment, net
13,625
15,932
Goodwill
410,769
410,769
Intangible assets, net
54,061
60,898
Capitalized software, net
119,898
95,439
Operating lease right-of-use assets,
net
28,842
29,929
Deferred tax assets, net
65,910
65,268
Other assets
34,941
37,775
Total assets
$
1,354,846
$
1,588,800
Liabilities and stockholders'
equity
Current liabilities
Accounts payable
$
12,391
$
36,266
Accrued expenses and other current
liabilities
92,677
71,329
Current portion of debt
3,750
8,787
Operating lease liabilities, current
5,543
6,177
Total current liabilities
114,361
122,559
Debt, net
487,593
647,703
Operating lease liabilities, net of
current portion
47,681
48,403
Other liabilities
8,777
8,177
Total liabilities
658,412
826,842
Stockholders' equity
Preferred stock, $0.0001 par value
—
—
Common stock, $0.0001 par value
38
40
Additional paid-in capital
2,144,149
2,219,321
Accumulated deficit
(1,447,753
)
(1,457,403
)
Total stockholders' equity
696,434
761,958
Total liabilities and stockholders'
equity
$
1,354,846
$
1,588,800
GoodRx Holdings, Inc.
Condensed Consolidated Statements of
Operations (Unaudited)
(in thousands, except per share
amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenue
$
195,251
$
179,958
$
593,741
$
553,621
Costs and operating expenses:
Cost of revenue, exclusive of depreciation
and amortization presented separately below
11,684
18,721
36,022
51,755
Product development and technology
30,139
39,611
92,010
103,804
Sales and marketing
89,867
91,615
273,285
247,577
General and administrative
25,619
35,317
94,316
95,144
Depreciation and amortization
17,535
33,024
50,442
64,060
Total costs and operating expenses
174,844
218,288
546,075
562,340
Operating income (loss)
20,407
(38,330
)
47,666
(8,719
)
Other expense, net:
Other expense
(2,660
)
(2,200
)
(2,660
)
(4,008
)
Loss on extinguishment of debt
(2,077
)
—
(2,077
)
—
Interest income
4,797
8,649
18,686
23,697
Interest expense
(12,355
)
(14,720
)
(41,564
)
(41,907
)
Total other expense, net
(12,295
)
(8,271
)
(27,615
)
(22,218
)
Income (loss) before income taxes
8,112
(46,601
)
20,051
(30,937
)
Income tax (expense) benefit
(4,147
)
8,106
(10,401
)
47,938
Net income (loss)
$
3,965
$
(38,495
)
$
9,650
$
17,001
Earnings (loss) per share:
Basic
$
0.01
$
(0.09
)
$
0.03
$
0.04
Diluted
$
0.01
$
(0.09
)
$
0.02
$
0.04
Weighted average shares used in
computing earnings (loss) per share:
Basic
379,667
413,437
385,553
412,698
Diluted
388,504
413,437
393,477
416,450
Stock-based compensation included in
costs and operating expenses:
Cost of revenue
$
86
$
146
$
226
$
487
Product development and technology
6,384
6,829
18,491
22,952
Sales and marketing
9,725
10,273
27,248
11,665
General and administrative
10,186
15,398
32,102
40,938
GoodRx Holdings, Inc.
Condensed Consolidated Statements of
Cash Flows (Unaudited)
(in thousands)
Nine Months Ended
September 30,
2024
2023
Cash flows from operating
activities
Net income
$
9,650
$
17,001
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
50,442
64,060
Loss on extinguishment of debt
2,077
—
Amortization of debt issuance costs
2,076
2,539
Non-cash operating lease expense
2,981
3,022
Stock-based compensation expense
78,067
76,042
Deferred income taxes
(642
)
(57,989
)
Loss on operating lease assets
—
374
Loss on disposal of capitalized
software
—
7,615
Loss on minority equity interest
investment
—
4,008
Changes in operating assets and
liabilities
Accounts receivable
12,805
(4,005
)
Prepaid expenses and other assets
(12,268
)
(29,867
)
Accounts payable
(23,167
)
14,515
Accrued expenses and other current
liabilities
19,778
26,071
Operating lease liabilities
(3,250
)
(1,460
)
Other liabilities
600
498
Net cash provided by operating
activities
139,149
122,424
Cash flows from investing
activities
Purchase of property and equipment
(1,078
)
(634
)
Capitalized software
(52,625
)
(42,260
)
Net cash used in investing activities
(53,703
)
(42,894
)
Cash flows from financing
activities
Proceeds from long-term debt
472,033
—
Payments on long-term debt
(639,038
)
(5,272
)
Payments of debt issuance costs
(2,673
)
—
Repurchases of Class A common stock
(158,657
)
(26,149
)
Proceeds from exercise of stock
options
18,435
4,385
Employee taxes paid related to net share
settlement of equity awards
(24,922
)
(15,403
)
Proceeds from employee stock purchase
plan
857
649
Net cash used in financing activities
(333,965
)
(41,790
)
Net change in cash and cash
equivalents
(248,519
)
37,740
Cash and cash equivalents
Beginning of period
672,296
757,165
End of period
$
423,777
$
794,905
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 and
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, financing related expenses, restructuring related
expenses, legal settlement expenses, loss on operating lease
assets, charitable stock donation, 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 (loss)
income and revenue, the most directly comparable financial measures
calculated in accordance with GAAP, to Adjusted EBITDA and Adjusted
Revenue, respectively, and presents net (loss) income margin, the
most directly comparable financial measure calculated in accordance
with GAAP, with Adjusted EBITDA Margin:
(dollars in thousands)
Three Months Ended
March 31,
Three Months Ended June
30,
Three Months Ended
September 30,
Nine Months Ended
September 30,
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
2024
2023
2024
2023
2023
2023
Net (loss) income
$
(1,009
)
$
(3,290
)
$
6,694
$
58,786
$
3,965
$
(38,495
)
$
9,650
$
17,001
$
(25,869
)
$
(8,868
)
Adjusted to exclude the following:
Interest income
(7,555
)
(7,234
)
(6,334
)
(7,814
)
(4,797
)
(8,649
)
(18,686
)
(23,697
)
(8,474
)
(32,171
)
Interest expense
14,643
13,133
14,566
14,054
12,355
14,720
41,564
41,907
14,821
56,728
Income tax expense (benefit)
1,302
6,886
4,952
(46,718
)
4,147
(8,106
)
10,401
(47,938
)
1,234
(46,704
)
Depreciation and amortization
15,942
14,939
16,965
16,097
17,535
33,024
50,442
64,060
43,608
107,668
Other expense
—
1,808
—
—
2,660
2,200
2,660
4,008
—
4,008
Loss on extinguishment of debt
—
—
—
—
2,077
—
2,077
—
—
—
Financing related expenses
440
—
392
—
66
—
898
—
—
—
Acquisition related expenses
174
1,056
174
385
65
162
413
1,603
174
1,777
Restructuring related expenses
(125
)
—
566
—
—
22,389
441
22,389
4,634
27,023
Legal settlement expenses
13,000
—
—
—
—
3,000
13,000
3,000
(2,900
)
100
Stock-based compensation expense
25,096
25,499
26,590
17,897
26,381
32,646
78,067
76,042
28,778
104,820
Payroll tax expense related to stock-based
compensation
879
440
847
405
510
580
2,236
1,425
268
1,693
Loss on operating lease assets
—
—
—
374
—
—
—
374
979
1,353
Adjusted EBITDA
$
62,787
$
53,237
$
65,412
$
53,466
$
64,964
$
53,471
$
193,163
$
160,174
$
57,253
$
217,427
Revenue
$
197,880
$
183,986
$
200,610
$
189,677
$
195,251
$
179,958
$
593,741
$
553,621
$
196,644
$
750,265
Adjusted to exclude the following:
Client contract termination costs
—
—
—
—
—
10,000
—
10,000
—
10,000
Adjusted Revenue
$
197,880
$
183,986
$
200,610
$
189,677
$
195,251
$
189,958
$
593,741
$
563,621
$
196,644
$
760,265
Net (loss) income margin
(0.5
%)
(1.8
%)
3.3
%
31.0
%
2.0
%
(21.4
%)
1.6
%
3.1
%
(13.2
%)
(1.2
%)
Adjusted EBITDA Margin
31.7
%
28.9
%
32.6
%
28.2
%
33.3
%
28.1
%
32.5
%
28.4
%
29.1
%
28.6
%
The following tables present a reconciliation of net income
(loss) and revenue and calculations of net income (loss) margin and
earnings (loss) 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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net income (loss)
$
3,965
$
(38,495
)
$
9,650
$
17,001
Adjusted to exclude the following:
Amortization of intangibles related to
acquisitions and restructuring activities
1,961
21,561
6,837
32,769
Other expense
2,660
2,200
2,660
4,008
Loss on extinguishment of debt
2,077
—
2,077
—
Financing related expenses
66
—
898
—
Acquisition related expenses
65
162
413
1,603
Restructuring related expenses
—
22,389
441
22,389
Legal settlement expenses
—
3,000
13,000
3,000
Stock-based compensation expense
26,381
32,646
78,067
76,042
Payroll tax expense related to stock-based
compensation
510
580
2,236
1,425
Loss on operating lease assets
—
—
—
374
Income tax effects of excluded items and
adjustments for valuation allowance and excess tax
benefits/deficiencies from equity awards
(5,749
)
(18,502
)
(19,385
)
(75,168
)
Adjusted Net Income
$
31,936
$
25,541
$
96,894
$
83,443
Revenue
$
195,251
$
179,958
$
593,741
$
553,621
Adjusted to exclude the following:
Client contract termination costs
—
10,000
—
10,000
Adjusted Revenue
$
195,251
$
189,958
$
593,741
$
563,621
Net income (loss) margin
2.0
%
(21.4
%)
1.6
%
3.1
%
Adjusted Net Income Margin
16.4
%
13.4
%
16.3
%
14.8
%
Weighted average shares used in
computing earnings (loss) per share:
Basic
379,667
413,437
385,553
412,698
Diluted
388,504
413,437
393,477
416,450
Earnings (loss) per share:
Basic
$
0.01
$
(0.09
)
$
0.03
$
0.04
Diluted
$
0.01
$
(0.09
)
$
0.02
$
0.04
Weighted average shares used in
computing Adjusted Earnings Per Share:
Basic
379,667
413,437
385,553
412,698
Diluted
388,504
420,592
393,477
416,450
Adjusted Earnings Per Share:
Basic
$
0.08
$
0.06
$
0.25
$
0.20
Diluted
$
0.08
$
0.06
$
0.25
$
0.20
The following table presents (i) each non-GAAP, or adjusted,
cost and expense and operating income (loss) 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
(loss) 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
September 30,
Three Months Ended
September 30,
Nine Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
2024
2023
2024
2023
Cost of revenue
$
11,684
$
18,721
$
11,596
$
15,688
$
36,022
$
51,755
$
36,093
$
48,365
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
6
%
10
%
6
%
8
%
6
%
9
%
6
%
9
%
Product development and technology
$
30,139
$
39,611
$
23,545
$
24,046
$
92,010
$
103,804
$
72,210
$
71,426
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
15
%
22
%
12
%
13
%
15
%
19
%
12
%
13
%
Sales and marketing
$
89,867
$
91,615
$
79,961
$
80,389
$
273,285
$
247,577
$
245,109
$
234,806
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
46
%
51
%
41
%
42
%
46
%
45
%
41
%
42
%
General and administrative
$
25,619
$
35,317
$
15,185
$
16,364
$
94,316
$
95,144
$
47,166
$
48,850
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
13
%
20
%
8
%
9
%
16
%
17
%
8
%
9
%
Depreciation and amortization
$
17,535
$
33,024
$
15,574
$
11,463
$
50,442
$
64,060
$
43,605
$
31,291
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
9
%
18
%
8
%
6
%
8
%
12
%
7
%
6
%
Operating income (loss)
$
20,407
$
(38,330
)
$
49,390
$
42,008
$
47,666
$
(8,719
)
$
149,558
$
128,883
% of Revenue (GAAP) /
Adjusted Revenue (Adjusted)
10
%
(21
%)
25
%
22
%
8
%
(2
%)
25
%
23
%
The following table presents a reconciliation of each non-GAAP,
or adjusted, cost and expense and operating income (loss) measure
to its most directly comparable financial measure calculated in
accordance with GAAP:
(dollars in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenue
$
195,251
$
179,958
$
593,741
$
553,621
Restructuring related expenses
—
10,000
—
10,000
Adjusted Revenue
$
195,251
$
189,958
$
593,741
$
563,621
Cost of revenue
$
11,684
$
18,721
$
36,022
$
51,755
Restructuring related expenses
—
(2,878
)
311
(2,878
)
Stock-based compensation expense
(86
)
(146
)
(226
)
(487
)
Payroll tax expense related to stock-based
compensation
(2
)
(9
)
(14
)
(25
)
Adjusted cost of revenue
$
11,596
$
15,688
$
36,093
$
48,365
Product development and technology
$
30,139
$
39,611
$
92,010
$
103,804
Acquisition related expenses
(10
)
(24
)
(62
)
(303
)
Restructuring related expenses
—
(8,403
)
(112
)
(8,403
)
Stock-based compensation expense
(6,384
)
(6,829
)
(18,491
)
(22,952
)
Payroll tax expense related to stock-based
compensation
(200
)
(309
)
(1,135
)
(720
)
Adjusted product development and
technology
$
23,545
$
24,046
$
72,210
$
71,426
Sales and marketing
$
89,867
$
91,615
$
273,285
$
247,577
Acquisition related expenses
(55
)
—
(351
)
—
Restructuring related expenses
—
(838
)
(114
)
(838
)
Stock-based compensation expense
(9,725
)
(10,273
)
(27,248
)
(11,665
)
Payroll tax expense related to stock-based
compensation
(126
)
(115
)
(463
)
(268
)
Adjusted sales and marketing
$
79,961
$
80,389
$
245,109
$
234,806
General and administrative
$
25,619
$
35,317
$
94,316
$
95,144
Financing related expenses
(66
)
—
(898
)
—
Acquisition related expenses
—
(138
)
—
(1,300
)
Restructuring related expenses
—
(270
)
(526
)
(270
)
Legal settlement expenses
—
(3,000
)
(13,000
)
(3,000
)
Stock-based compensation expense
(10,186
)
(15,398
)
(32,102
)
(40,938
)
Payroll tax expense related to stock-based
compensation
(182
)
(147
)
(624
)
(412
)
Loss on operating lease assets
—
—
—
(374
)
Adjusted general and administrative
$
15,185
$
16,364
$
47,166
$
48,850
Depreciation and amortization
$
17,535
$
33,024
$
50,442
$
64,060
Amortization of intangibles related to
acquisitions and restructuring activities
(1,961
)
(21,561
)
(6,837
)
(32,769
)
Adjusted depreciation and amortization
$
15,574
$
11,463
$
43,605
$
31,291
Operating income (loss)
$
20,407
$
(38,330
)
$
47,666
$
(8,719
)
Amortization of intangibles related to
acquisitions and restructuring activities
1,961
21,561
6,837
32,769
Financing related expenses
66
—
898
—
Acquisition related expenses
65
162
413
1,603
Restructuring related expenses
—
22,389
441
22,389
Legal settlement expenses
—
3,000
13,000
3,000
Stock-based compensation expense
26,381
32,646
78,067
76,042
Payroll tax expense related to stock-based
compensation
510
580
2,236
1,425
Loss on operating lease assets
—
—
—
374
Adjusted operating income
$
49,390
$
42,008
$
149,558
$
128,883
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107081396/en/
Investor Contact GoodRx Aubrey Reynolds ir@goodrx.com
Press Contact GoodRx Lauren Casparis
lcasparis@goodrx.com
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