x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 47-5104396 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
2701 Olympic Boulevard Santa Monica, CA | 90404 | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A common stock, $0.0001 par value per share | GDRX | The Nasdaq Stock Market LLC |
Large accelerated filer | o | Accelerated filer | x | |||||||||||
Non-accelerated filer | o | Smaller reporting company | o | |||||||||||
Emerging growth company | o |
Page | ||||||
(in thousands, except par values) | September 30, 2023 | December 31, 2022 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 794,905 | $ | 757,165 | |||||||
Accounts receivable, net | 121,146 | 117,141 | |||||||||
Prepaid expenses and other current assets | 53,047 | 45,380 | |||||||||
Total current assets | 969,098 | 919,686 | |||||||||
Property and equipment, net | 16,879 | 19,820 | |||||||||
Goodwill | 412,117 | 412,117 | |||||||||
Intangible assets, net | 89,431 | 119,865 | |||||||||
Capitalized software, net | 91,979 | 70,072 | |||||||||
Operating lease right-of-use assets | 31,501 | 35,906 | |||||||||
Deferred tax assets, net | 57,695 | — | |||||||||
Other assets | 39,272 | 27,165 | |||||||||
Total assets | $ | 1,707,972 | $ | 1,604,631 | |||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 32,905 | $ | 17,700 | |||||||
Accrued expenses and other current liabilities | 74,554 | 47,523 | |||||||||
Current portion of debt | 7,029 | 7,029 | |||||||||
Operating lease liabilities, current | 3,334 | 4,068 | |||||||||
Total current liabilities | 117,822 | 76,320 | |||||||||
Debt, net | 648,729 | 651,796 | |||||||||
Operating lease liabilities, net of current portion | 52,387 | 54,131 | |||||||||
Other liabilities | 7,761 | 7,557 | |||||||||
Total liabilities | 826,699 | 789,804 | |||||||||
Commitments and contingencies (Note 8) | |||||||||||
Stockholders' equity | |||||||||||
Preferred stock, $0.0001 par value; 50,000 shares authorized and zero shares issued and outstanding at September 30, 2023 and December 31, 2022 | — | — | |||||||||
Common stock, $0.0001 par value; Class A: 2,000,000 shares authorized, 84,630 and 83,293 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively; and Class B: 1,000,000 shares authorized and 313,732 shares issued and outstanding at September 30, 2023 and December 31, 2022 | 40 | 40 | |||||||||
Additional paid-in capital | 2,312,767 | 2,263,322 | |||||||||
Accumulated deficit | (1,431,534) | (1,448,535) | |||||||||
Total stockholders' equity | 881,273 | 814,827 | |||||||||
Total liabilities and stockholders' equity | $ | 1,707,972 | $ | 1,604,631 |
(in thousands, except par values) | March 31, 2024 | December 31, 2023 | |
Assets | |||
Current assets | |||
Cash and cash equivalents | $533,295 | $672,296 | |
Accounts receivable, net | 144,769 | 143,608 | |
Prepaid expenses and other current assets | 54,735 | 56,886 | |
Total current assets | 732,799 | 872,790 | |
Property and equipment, net | 15,341 | 15,932 | |
Goodwill | 410,769 | 410,769 | |
Intangible assets, net | 58,122 | 60,898 | |
Capitalized software, net | 103,980 | 95,439 | |
Operating lease right-of-use assets, net | 30,928 | 29,929 | |
Deferred tax assets, net | 65,268 | 65,268 | |
Other assets | 36,756 | 37,775 | |
Total assets | $1,453,963 | $1,588,800 | |
Liabilities and stockholders' equity | |||
Current liabilities | |||
Accounts payable | $33,518 | $36,266 | |
Accrued expenses and other current liabilities | 70,843 | 71,329 | |
Current portion of debt | 7,029 | 8,787 | |
Operating lease liabilities, current | 5,131 | 6,177 | |
Total current liabilities | 116,521 | 122,559 | |
Debt, net | 646,678 | 647,703 | |
Operating lease liabilities, net of current portion | 51,339 | 48,403 | |
Other liabilities | 8,356 | 8,177 | |
Total liabilities | 822,894 | 826,842 | |
Commitments and contingencies (Note 7) | |||
Stockholders' equity | |||
Preferred stock, $0.0001 par value; 50,000 shares authorized and zero shares issued and outstanding at March 31, 2024 and December 31, 2023 | — | — | |
Common stock, $0.0001 par value; Class A: 2,000,000 shares authorized, 94,074 and 92,355 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively; and Class B: 1,000,000 shares authorized, 280,869 and 301,732 shares issued and outstanding at March 31, 2024 and December 31, 2023 | 38 | 40 | |
Additional paid-in capital | 2,089,443 | 2,219,321 | |
Accumulated deficit | (1,458,412) | (1,457,403) | |
Total stockholders' equity | 631,069 | 761,958 | |
Total liabilities and stockholders' equity | $1,453,963 | $1,588,800 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | $ | 179,958 | $ | 187,318 | $ | 553,621 | $ | 582,445 | |||||||||||||||
Costs and operating expenses: | |||||||||||||||||||||||
Cost of revenue, exclusive of depreciation and amortization presented separately below | 18,721 | 17,395 | 51,755 | 47,719 | |||||||||||||||||||
Product development and technology | 39,611 | 35,921 | 103,804 | 106,367 | |||||||||||||||||||
Sales and marketing | 91,615 | 86,215 | 247,577 | 273,503 | |||||||||||||||||||
General and administrative | 35,317 | 49,548 | 95,144 | 116,211 | |||||||||||||||||||
Depreciation and amortization | 33,024 | 13,952 | 64,060 | 38,644 | |||||||||||||||||||
Total costs and operating expenses | 218,288 | 203,031 | 562,340 | 582,444 | |||||||||||||||||||
Operating (loss) income | (38,330) | (15,713) | (8,719) | 1 | |||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||
Other expense | (2,200) | — | (4,008) | — | |||||||||||||||||||
Interest income | 8,649 | 2,920 | 23,697 | 3,829 | |||||||||||||||||||
Interest expense | (14,720) | (9,478) | (41,907) | (22,316) | |||||||||||||||||||
Total other expense, net | (8,271) | (6,558) | (22,218) | (18,487) | |||||||||||||||||||
Loss before income taxes | (46,601) | (22,271) | (30,937) | (18,486) | |||||||||||||||||||
Income tax benefit (expense) | 8,106 | (19,463) | 47,938 | (12,370) | |||||||||||||||||||
Net (loss) income | $ | (38,495) | $ | (41,734) | $ | 17,001 | $ | (30,856) | |||||||||||||||
(Loss) earnings per share: | |||||||||||||||||||||||
Basic | $ | (0.09) | $ | (0.10) | $ | 0.04 | $ | (0.07) | |||||||||||||||
Diluted | $ | (0.09) | $ | (0.10) | $ | 0.04 | $ | (0.07) | |||||||||||||||
Weighted average shares used in computing (loss) earnings per share: | |||||||||||||||||||||||
Basic | 413,437 | 412,956 | 412,698 | 413,254 | |||||||||||||||||||
Diluted | 413,437 | 412,956 | 416,450 | 413,254 | |||||||||||||||||||
Stock-based compensation included in costs and operating expenses: | |||||||||||||||||||||||
Cost of revenue | $ | 146 | $ | 136 | $ | 487 | $ | 190 | |||||||||||||||
Product development and technology | 6,829 | 8,029 | 22,952 | 25,327 | |||||||||||||||||||
Sales and marketing | 10,273 | 4,766 | 11,665 | 15,999 | |||||||||||||||||||
General and administrative | 15,398 | 16,107 | 40,938 | 49,304 |
Three Months Ended March 31, | |||
(in thousands, except per share amounts) | 2024 | 2023 | |
Revenue | $197,880 | $183,986 | |
Costs and operating expenses: | |||
Cost of revenue, exclusive of depreciation and amortization presented separately below | 12,468 | 16,695 | |
Product development and technology | 31,017 | 32,908 | |
Sales and marketing | 89,964 | 78,522 | |
General and administrative | 41,108 | 29,619 | |
Depreciation and amortization | 15,942 | 14,939 | |
Total costs and operating expenses | 190,499 | 172,683 | |
Operating income | 7,381 | 11,303 | |
Other expense, net: | |||
Other expense | — | (1,808) | |
Interest income | 7,555 | 7,234 | |
Interest expense | (14,643) | (13,133) | |
Total other expense, net | (7,088) | (7,707) | |
Income before income taxes | 293 | 3,596 | |
Income tax expense | (1,302) | (6,886) | |
Net loss | $(1,009) | $(3,290) | |
Loss per share: | |||
Basic and diluted | $(0.00) | $(0.01) | |
Weighted average shares used in computing loss per share: | |||
Basic and diluted | 390,048 | 412,429 | |
Stock-based compensation included in costs and operating expenses: | |||
Cost of revenue | $76 | $161 | |
Product development and technology | 5,848 | 8,589 | |
Sales and marketing | 8,127 | 4,412 | |
General and administrative | 11,045 | 12,337 |
Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||||||||||
(in thousands) | Shares | Amount | |||||||||||||||||||||||||||
Balance at December 31, 2022 | 397,025 | $ | 40 | $ | 2,263,322 | $ | (1,448,535) | $ | 814,827 | ||||||||||||||||||||
Stock options exercised | 192 | — | 895 | — | 895 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 28,263 | — | 28,263 | ||||||||||||||||||||||||
Vesting and settlement of restricted stock units | 1,668 | — | — | — | — | ||||||||||||||||||||||||
Common stock withheld related to net share settlement | (666) | — | (3,710) | — | (3,710) | ||||||||||||||||||||||||
Repurchases of Class A common stock | (1,570) | — | (9,517) | — | (9,517) | ||||||||||||||||||||||||
Net loss | — | — | — | (3,290) | (3,290) | ||||||||||||||||||||||||
Balance at March 31, 2023 | 396,649 | $ | 40 | $ | 2,279,253 | $ | (1,451,825) | $ | 827,468 | ||||||||||||||||||||
Stock options exercised | 204 | — | 560 | — | 560 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 21,354 | — | 21,354 | ||||||||||||||||||||||||
Vesting and settlement of restricted stock units | 2,148 | — | — | — | — | ||||||||||||||||||||||||
Common stock withheld related to net share settlement | (827) | — | (4,526) | — | (4,526) | ||||||||||||||||||||||||
Repurchases of Class A common stock | (1,663) | — | (8,920) | — | (8,920) | ||||||||||||||||||||||||
Issuance of common stock through employee stock purchase plan | 161 | — | 649 | — | 649 | ||||||||||||||||||||||||
Net income | — | — | — | 58,786 | 58,786 | ||||||||||||||||||||||||
Balance at June 30, 2023 | 396,672 | $ | 40 | $ | 2,288,370 | $ | (1,393,039) | $ | 895,371 | ||||||||||||||||||||
Stock options exercised | 1,138 | — | 3,118 | — | 3,118 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 36,346 | — | 36,346 | ||||||||||||||||||||||||
Vesting and settlement of restricted stock units | 2,749 | — | — | — | — | ||||||||||||||||||||||||
Common stock withheld related to net share settlement | (1,059) | — | (7,355) | — | (7,355) | ||||||||||||||||||||||||
Repurchases of Class A common stock | (1,138) | — | (7,712) | — | (7,712) | ||||||||||||||||||||||||
Net loss | — | — | — | (38,495) | (38,495) | ||||||||||||||||||||||||
Balance at September 30, 2023 | 398,362 | $ | 40 | $ | 2,312,767 | $ | (1,431,534) | $ | 881,273 |
Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | ||||||
(in thousands) | Shares | Amount | |||||||
Balance at December 31, 2023 | 394,087 | $40 | $2,219,321 | $(1,457,403) | $761,958 | ||||
Stock options exercised | 604 | — | 2,666 | — | 2,666 | ||||
Stock-based compensation | — | — | 28,891 | — | 28,891 | ||||
Vesting and settlement of restricted stock units | 2,535 | — | — | — | — | ||||
Common stock withheld related to net share settlement | (954) | — | (6,623) | — | (6,623) | ||||
Repurchases of Class A common stock (1) | (21,329) | (2) | (154,812) | — | (154,814) | ||||
Net loss | — | — | — | (1,009) | (1,009) | ||||
Balance at March 31, 2024 | 374,943 | $38 | $2,089,443 | $(1,458,412) | $631,069 |
Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||||||||||
(in thousands) | Shares | Amount | |||||||||||||||||||||||||||
Balance at December 31, 2021 | 400,562 | $ | 40 | $ | 2,247,347 | $ | (1,415,707) | $ | 831,680 | ||||||||||||||||||||
Stock options exercised | 749 | — | 3,699 | — | 3,699 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 32,161 | — | 32,161 | ||||||||||||||||||||||||
Vesting and settlement of restricted stock units | 822 | — | — | — | — | ||||||||||||||||||||||||
Common stock withheld related to net share settlement | (364) | — | (9,561) | — | (9,561) | ||||||||||||||||||||||||
Repurchases of Class A common stock | (5,637) | — | (83,765) | — | (83,765) | ||||||||||||||||||||||||
Net income | — | — | — | 12,293 | 12,293 | ||||||||||||||||||||||||
Balance at March 31, 2022 | 396,132 | $ | 40 | $ | 2,189,881 | $ | (1,403,414) | $ | 786,507 | ||||||||||||||||||||
Stock options exercised | 1,176 | — | 4,109 | — | 4,109 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 33,466 | — | 33,466 | ||||||||||||||||||||||||
Vesting and settlement of restricted stock units | 1,059 | — | — | — | — | ||||||||||||||||||||||||
Common stock withheld related to net share settlement | (459) | — | (4,727) | — | (4,727) | ||||||||||||||||||||||||
Net loss | — | — | — | (1,415) | (1,415) | ||||||||||||||||||||||||
Balance at June 30, 2022 | 397,908 | $ | 40 | $ | 2,222,729 | $ | (1,404,829) | $ | 817,940 | ||||||||||||||||||||
Stock options exercised | 245 | — | 1,271 | — | 1,271 | ||||||||||||||||||||||||
Stock-based compensation | — | — | 32,151 | — | 32,151 | ||||||||||||||||||||||||
Vesting and settlement of restricted stock units | 1,256 | — | — | — | — | ||||||||||||||||||||||||
Common stock withheld related to net share settlement | (525) | — | (3,269) | — | (3,269) | ||||||||||||||||||||||||
Repurchases of Class A common stock | (2,819) | — | (17,956) | — | (17,956) | ||||||||||||||||||||||||
Net loss | — | — | — | (41,734) | (41,734) | ||||||||||||||||||||||||
Balance at September 30, 2022 | 396,065 | $ | 40 | $ | 2,234,926 | $ | (1,446,563) | $ | 788,403 |
Class A and Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | ||||||
(in thousands) | Shares | Amount | |||||||
Balance at December 31, 2022 | 397,025 | $40 | $2,263,322 | $(1,448,535) | $814,827 | ||||
Stock options exercised | 192 | — | 895 | — | 895 | ||||
Stock-based compensation | — | — | 28,263 | — | 28,263 | ||||
Vesting and settlement of restricted stock units | 1,668 | — | — | — | — | ||||
Common stock withheld related to net share settlement | (666) | — | (3,710) | — | (3,710) | ||||
Repurchases of Class A common stock | (1,570) | — | (9,517) | — | (9,517) | ||||
Net loss | — | — | — | (3,290) | (3,290) | ||||
Balance at March 31, 2023 | 396,649 | $40 | $2,279,253 | $(1,451,825) | $827,468 |
Nine Months Ended September 30, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) | $ | 17,001 | $ | (30,856) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 64,060 | 38,644 | |||||||||
Amortization of debt issuance costs | 2,539 | 2,562 | |||||||||
Non-cash operating lease expense | 3,022 | 2,314 | |||||||||
Stock-based compensation expense | 76,042 | 90,820 | |||||||||
Change in fair value of contingent consideration | — | 16,857 | |||||||||
Deferred income taxes | (57,989) | (141) | |||||||||
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, net of effects of business acquisitions | |||||||||||
Accounts receivable | (4,005) | (2,370) | |||||||||
Prepaid expenses and other assets | (29,867) | (3,137) | |||||||||
Accounts payable | 14,515 | (8,011) | |||||||||
Accrued expenses and other current liabilities | 26,071 | 9,097 | |||||||||
Operating lease liabilities | (1,460) | (3,415) | |||||||||
Other liabilities | 498 | 2,537 | |||||||||
Net cash provided by operating activities | 122,424 | 114,901 | |||||||||
Cash flows from investing activities | |||||||||||
Purchase of property and equipment | (634) | (3,817) | |||||||||
Acquisitions, net of cash acquired | — | (156,853) | |||||||||
Capitalized software | (42,260) | (36,107) | |||||||||
Investment in minority equity interest | — | (15,007) | |||||||||
Net cash used in investing activities | (42,894) | (211,784) | |||||||||
Cash flows from financing activities | |||||||||||
Payments on long-term debt | (5,272) | (5,272) | |||||||||
Repurchases of Class A common stock | (26,149) | (101,721) | |||||||||
Proceeds from exercise of stock options | 4,385 | 9,110 | |||||||||
Employee taxes paid related to net share settlement of equity awards | (15,403) | (17,557) | |||||||||
Proceeds from employee stock purchase plan | 649 | — | |||||||||
Net cash used in financing activities | (41,790) | (115,440) | |||||||||
Net change in cash and cash equivalents | 37,740 | (212,323) | |||||||||
Cash and cash equivalents | |||||||||||
Beginning of period | 757,165 | 941,109 | |||||||||
End of period | $ | 794,905 | $ | 728,786 | |||||||
Supplemental disclosure of cash flow information | |||||||||||
Non cash investing and financing activities: | |||||||||||
Stock-based compensation included in capitalized software | $ | 9,921 | $ | 6,958 | |||||||
Capitalized software included in accounts payable and accrued expenses and other current liabilities | 5,789 | 4,247 | |||||||||
Capitalized software transferred from prepaid assets | 5,751 | — |
Three Months Ended March 31, | |||
(in thousands) | 2024 | 2023 | |
Cash flows from operating activities | |||
Net loss | $(1,009) | $(3,290) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 15,942 | 14,939 | |
Amortization of debt issuance costs | 837 | 849 | |
Non-cash operating lease expense | 895 | 1,042 | |
Stock-based compensation expense | 25,096 | 25,499 | |
Deferred income taxes | — | 35 | |
Loss on minority equity interest investment | — | 1,808 | |
Changes in operating assets and liabilities | |||
Accounts receivable | (1,161) | 699 | |
Prepaid expenses and other assets | 3,339 | (6,005) | |
Accounts payable | (2,452) | (4,737) | |
Accrued expenses and other current liabilities | 924 | 1,184 | |
Operating lease liabilities | (4) | (140) | |
Other liabilities | 179 | 405 | |
Net cash provided by operating activities | 42,586 | 32,288 | |
Cash flows from investing activities | |||
Purchase of property and equipment | (407) | (148) | |
Capitalized software | (20,208) | (14,140) | |
Net cash used in investing activities | (20,615) | (14,288) | |
Cash flows from financing activities | |||
Payments on long-term debt | (3,516) | (1,758) | |
Repurchases of Class A common stock (1) | (153,226) | (9,517) | |
Proceeds from exercise of stock options | 2,584 | 708 | |
Employee taxes paid related to net share settlement of equity awards | (6,814) | (3,523) | |
Net cash used in financing activities | (160,972) | (14,090) | |
Net change in cash and cash equivalents | (139,001) | 3,910 | |
Cash and cash equivalents | |||
Beginning of period | 672,296 | 757,165 | |
End of period | $533,295 | $761,075 | |
Supplemental disclosure of cash flow information | |||
Non cash investing and financing activities: | |||
Stock-based compensation included in capitalized software | $3,795 | $2,764 | |
Capitalized software included in accounts payable and accrued expenses and other current liabilities | 4,376 | 2,625 | |
Capitalized software transferred from prepaid assets | — | 5,751 |
(in thousands) | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||
Pro forma revenue | $ | 187,318 | $ | 583,016 | |||||||
Pro forma net loss | $ | (41,734) | $ | (38,929) |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Insurance recovery receivable (1) | $ | 10,000 | $ | — | |||||||
Prepaid software implementation costs | — | 5,751 | |||||||||
Reimbursable third-party payments (2) | 10,591 | — | |||||||||
Income taxes receivable | 3,462 | 4,524 | |||||||||
Other prepaid expenses and other current assets (3) | 28,994 | 35,105 | |||||||||
Total prepaid expenses and other current assets | $ | 53,047 | $ | 45,380 |
(in thousands) | March 31, 2024 | December 31, 2023 | |
Insurance recovery receivable (1) | $14,900 | $12,900 | |
Income taxes receivable | 2,268 | 3,537 | |
Reimbursable third-party payments (2) | 12,752 | 15,481 | |
Other prepaid expenses and other current assets (3) | 24,815 | 24,968 | |
Total prepaid expenses and other current assets | $54,735 | $56,886 |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Accrued bonus and other payroll related (1) | $ | 27,188 | $ | 20,642 | |||||||
Accrued marketing | 13,120 | 12,104 | |||||||||
Accrued legal settlement | 13,000 | 1,500 | |||||||||
Deferred revenue | 8,338 | 7,879 | |||||||||
Income taxes payable | 6,736 | — | |||||||||
Other accrued expenses | 6,172 | 5,398 | |||||||||
Total accrued expenses and other current liabilities | $ | 74,554 | $ | 47,523 |
(in thousands) | March 31, 2024 | December 31, 2023 | |
Accrued bonus and other payroll related | $12,202 | $30,401 | |
Accrued legal settlement | 27,500 | 12,500 | |
Accrued marketing | 14,493 | 10,650 | |
Deferred revenue | 6,528 | 7,105 | |
Other accrued expenses | 10,120 | 10,673 | |
Total accrued expenses and other current liabilities | $70,843 | $71,329 |
(in thousands) | September 30, 2023 | December 31, 2022 | |||||||||
Principal balance under First Lien Term Loan Facility | $ | 661,796 | $ | 667,068 | |||||||
Less: Unamortized debt issuance costs and discounts | (6,038) | (8,243) | |||||||||
$ | 655,758 | $ | 658,825 |
(in thousands) | March 31, 2024 | December 31, 2023 | |
Principal balance under First Lien Term Loan Facility | $658,281 | $661,797 | |
Less: Unamortized debt issuance costs and discounts | (4,574) | (5,307) | |
$653,707 | $656,490 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Prescription transactions revenue | $ | 135,427 | $ | 131,216 | $ | 406,874 | $ | 421,126 | |||||||||||||||
Pharma manufacturer solutions revenue (1) | 15,897 | 24,499 | 60,662 | 74,519 | |||||||||||||||||||
Subscription revenue | 23,240 | 26,450 | 71,261 | 71,545 | |||||||||||||||||||
Other revenue | 5,394 | 5,153 | 14,824 | 15,255 | |||||||||||||||||||
Total revenue | $ | 179,958 | $ | 187,318 | $ | 553,621 | $ | 582,445 |
Three Months Ended March 31, | |||
(in thousands) | 2024 | 2023 | |
Prescription transactions revenue | $145,395 | $134,907 | |
Subscription revenue | 22,601 | 24,143 | |
Pharma manufacturer solutions revenue | 24,509 | 20,435 | |
Other revenue | 5,375 | 4,501 | |
Total revenue | $197,880 | $183,986 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Number of shares repurchased | 1,138 | 2,819 | 4,371 | 8,456 | |||||||||||||||||||
Cost of shares repurchased | $ | 7,712 | $ | 17,956 | $ | 26,149 | $ | 101,721 |
Three Months Ended March 31, | |||
(in thousands) | 2024 | 2023 | |
Number of shares repurchased | 21,329 | 1,570 | |
Cost of shares repurchased | $154,814 | $9,517 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net (loss) income | $ | (38,495) | $ | (41,734) | $ | 17,001 | $ | (30,856) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average shares - basic | 413,437 | 412,956 | 412,698 | 413,254 | |||||||||||||||||||
Dilutive impact of stock options, restricted stock awards and restricted stock units | — | — | 3,752 | — | |||||||||||||||||||
Weighted average shares - diluted | 413,437 | 412,956 | 416,450 | 413,254 | |||||||||||||||||||
(Loss) earnings per share: | |||||||||||||||||||||||
Basic | $ | (0.09) | $ | (0.10) | $ | 0.04 | $ | (0.07) | |||||||||||||||
Diluted | $ | (0.09) | $ | (0.10) | $ | 0.04 | $ | (0.07) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Stock options, restricted stock awards and restricted stock units | 52,965 | 34,755 | 27,808 | 28,540 |
(in thousands) | Three and Nine Months Ended September 30, 2023 | Estimated Remaining Costs (4) | Estimated Total Costs | ||||||||||||||
Non-cash charges (1) | $ | 23,869 | $ | 30,780 | $ | 54,649 | |||||||||||
Cash charges | |||||||||||||||||
Personnel related costs (2) | 6,223 | 2,908 | 9,131 | ||||||||||||||
Client contract termination costs (3) | 10,000 | — | 10,000 | ||||||||||||||
Total restructuring related costs | $ | 40,092 | $ | 33,688 | $ | 73,780 |
Three Months Ended March 31, | |||
(in thousands) | 2024 | 2023 | |
Stock options, restricted stock awards and restricted stock units | 50,062 | 38,027 |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||||||||||||||||||||||||||||
Monthly Active Consumers | Monthly Active Consumers | 6.1 | 6.1 | 6.1 | 5.9 | 5.8 | 5.8 | 6.4 | 6.7 | 6.4 | 6.1 | 6.1 | 6.1 |
As of | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | ||||||||||||||||||||||||||||||||||
Subscription plans | 930 | 969 | 1,007 | 1,030 | 1,060 | 1,133 | 1,203 |
As of | |||||||||
(in thousands) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||
Subscription plans | 778 | 884 | 930 | 969 | 1,007 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net (loss) income | $ | (38,495) | $ | (41,734) | $ | 17,001 | $ | (30,856) | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Interest income | (8,649) | (2,920) | (23,697) | (3,829) | |||||||||||||||||||
Interest expense | 14,720 | 9,478 | 41,907 | 22,316 | |||||||||||||||||||
Income tax (benefit) expense | (8,106) | 19,463 | (47,938) | 12,370 | |||||||||||||||||||
Depreciation and amortization (1) | 33,024 | 13,952 | 64,060 | 38,644 | |||||||||||||||||||
Other expense (2) | 2,200 | — | 4,008 | — | |||||||||||||||||||
Financing related expenses (3) | — | 5 | — | 14 | |||||||||||||||||||
Acquisition related expenses (4) | 162 | 18,656 | 1,603 | 23,630 | |||||||||||||||||||
Restructuring related expenses (5) | 22,389 | 5,880 | 22,389 | 6,236 | |||||||||||||||||||
Legal settlement expenses (6) | 3,000 | — | 3,000 | 2,800 | |||||||||||||||||||
Stock-based compensation expense | 32,646 | 29,038 | 76,042 | 90,820 | |||||||||||||||||||
Payroll tax expense related to stock-based compensation | 580 | 184 | 1,425 | 1,739 | |||||||||||||||||||
Loss on operating lease assets (7) | — | — | 374 | — | |||||||||||||||||||
Adjusted EBITDA | $ | 53,471 | $ | 52,002 | $ | 160,174 | $ | 163,884 | |||||||||||||||
Revenue | $ | 179,958 | $ | 187,318 | $ | 553,621 | $ | 582,445 | |||||||||||||||
Adjusted to exclude the following: | |||||||||||||||||||||||
Client contract termination costs (8) | 10,000 | — | 10,000 | — | |||||||||||||||||||
Adjusted Revenue | $ | 189,958 | $ | 187,318 | $ | 563,621 | $ | 582,445 | |||||||||||||||
Net (loss) income margin (9) | (21.4 | %) | (22.3 | %) | 3.1 | % | (5.3 | %) | |||||||||||||||
Adjusted EBITDA Margin (10) | 28.1 | % | 27.8 | % | 28.4 | % | 28.1 | % |
Three Months Ended March 31, | |||
(dollars in thousands) | 2024 | 2023 | |
Net loss | $(1,009) | $(3,290) | |
Adjusted to exclude the following: | |||
Interest income | (7,555) | (7,234) | |
Interest expense | 14,643 | 13,133 | |
Income tax expense | 1,302 | 6,886 | |
Depreciation and amortization | 15,942 | 14,939 | |
Other expense | — | 1,808 | |
Financing related expenses (1) | 440 | — | |
Acquisition related expenses (2) | 174 | 1,056 | |
Restructuring related expenses (3) | (125) | — | |
Legal settlement expenses (4) | 13,000 | — | |
Stock-based compensation expense | 25,096 | 25,499 | |
Payroll tax expense related to stock-based compensation | 879 | 440 | |
Adjusted EBITDA | $62,787 | $53,237 | |
Revenue and Adjusted Revenue (5) | $197,880 | $183,986 | |
Net loss margin | (0.5%) | (1.8%) | |
Adjusted EBITDA Margin | 31.7% | 28.9% |
(dollars in thousands) | Three Months Ended September 30, 2023 | % of Total Revenue | Three Months Ended September 30, 2022 | % of Total Revenue | Change ($) | Change (%) | |||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Prescription transactions revenue | $ | 135,427 | 75% | $ | 131,216 | 70% | $ | 4,211 | 3% | ||||||||||||||||||||||||||
Pharma manufacturer solutions revenue (1) | 15,897 | 9% | 24,499 | 13% | (8,602) | (35%) | |||||||||||||||||||||||||||||
Subscription revenue | 23,240 | 13% | 26,450 | 14% | (3,210) | (12%) | |||||||||||||||||||||||||||||
Other revenue | 5,394 | 3% | 5,153 | 3% | 241 | 5% | |||||||||||||||||||||||||||||
Total revenue | 179,958 | 187,318 | |||||||||||||||||||||||||||||||||
Costs and operating expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenue, exclusive of depreciation and amortization presented separately below | 18,721 | 10% | 17,395 | 9% | 1,326 | 8% | |||||||||||||||||||||||||||||
Product development and technology | 39,611 | 22% | 35,921 | 19% | 3,690 | 10% | |||||||||||||||||||||||||||||
Sales and marketing | 91,615 | 51% | 86,215 | 46% | 5,400 | 6% | |||||||||||||||||||||||||||||
General and administrative | 35,317 | 20% | 49,548 | 26% | (14,231) | (29%) | |||||||||||||||||||||||||||||
Depreciation and amortization | 33,024 | 18% | 13,952 | 7% | 19,072 | 137% | |||||||||||||||||||||||||||||
Total costs and operating expenses | 218,288 | 203,031 | |||||||||||||||||||||||||||||||||
Operating loss | (38,330) | (15,713) | |||||||||||||||||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||||||||||||||
Other expense | (2,200) | 1% | — | 0% | (2,200) | n/m | |||||||||||||||||||||||||||||
Interest income | 8,649 | 5% | 2,920 | 2% | 5,729 | 196% | |||||||||||||||||||||||||||||
Interest expense | (14,720) | 8% | (9,478) | 5% | (5,242) | 55% | |||||||||||||||||||||||||||||
Total other expense, net | (8,271) | (6,558) | |||||||||||||||||||||||||||||||||
Loss before income taxes | (46,601) | (22,271) | |||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 8,106 | 5% | (19,463) | 10% | 27,569 | (142%) | |||||||||||||||||||||||||||||
Net loss | $ | (38,495) | $ | (41,734) |
(dollars in thousands) | Three Months Ended March 31, 2024 | % of Total Revenue | Three Months Ended March 31, 2023 | % of Total Revenue | Change ($) | Change (%) | |||||
Revenue: | |||||||||||
Prescription transactions revenue | $145,395 | 73% | $134,907 | 73% | $10,488 | 8% | |||||
Subscription revenue | 22,601 | 11% | 24,143 | 13% | (1,542) | (6%) | |||||
Pharma manufacturer solutions revenue | 24,509 | 12% | 20,435 | 11% | 4,074 | 20% | |||||
Other revenue | 5,375 | 3% | 4,501 | 2% | 874 | 19% | |||||
Total revenue | 197,880 | 183,986 | |||||||||
Costs and operating expenses: | |||||||||||
Cost of revenue, exclusive of depreciation and amortization presented separately below | 12,468 | 6% | 16,695 | 9% | (4,227) | (25%) | |||||
Product development and technology | 31,017 | 16% | 32,908 | 18% | (1,891) | (6%) | |||||
Sales and marketing | 89,964 | 45% | 78,522 | 43% | 11,442 | 15% | |||||
General and administrative | 41,108 | 21% | 29,619 | 16% | 11,489 | 39% | |||||
Depreciation and amortization | 15,942 | 8% | 14,939 | 8% | 1,003 | 7% | |||||
Total costs and operating expenses | 190,499 | 172,683 | |||||||||
Operating income | 7,381 | 11,303 | |||||||||
Other expense, net: | |||||||||||
Other expense | — | 0% | (1,808) | 1% | 1,808 | n/m | |||||
Interest income | 7,555 | 4% | 7,234 | 4% | 321 | 4% | |||||
Interest expense | (14,643) | 7% | (13,133) | 7% | (1,510) | 11% | |||||
Total other expense, net | (7,088) | (7,707) | |||||||||
Income before income taxes | 293 | 3,596 | |||||||||
Income tax expense | (1,302) | 1% | (6,886) | 4% | 5,584 | (81%) | |||||
Net loss | $(1,009) | $(3,290) |
(dollars in thousands) | Nine Months Ended September 30, 2023 | % of Total Revenue | Nine Months Ended September 30, 2022 | % of Total Revenue | Change ($) | Change (%) | |||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Prescription transactions revenue | $ | 406,874 | 73% | $ | 421,126 | 72% | $ | (14,252) | (3%) | ||||||||||||||||||||||||||
Pharma manufacturer solutions revenue (1) | 60,662 | 11% | 74,519 | 13% | (13,857) | (19%) | |||||||||||||||||||||||||||||
Subscription revenue | 71,261 | 13% | 71,545 | 12% | (284) | 0% | |||||||||||||||||||||||||||||
Other revenue | 14,824 | 3% | 15,255 | 3% | (431) | (3%) | |||||||||||||||||||||||||||||
Total revenue | 553,621 | 582,445 | |||||||||||||||||||||||||||||||||
Costs and operating expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenue, exclusive of depreciation and amortization presented separately below | 51,755 | 9% | 47,719 | 8% | 4,036 | 8% | |||||||||||||||||||||||||||||
Product development and technology | 103,804 | 19% | 106,367 | 18% | (2,563) | (2%) | |||||||||||||||||||||||||||||
Sales and marketing | 247,577 | 45% | 273,503 | 47% | (25,926) | (9%) | |||||||||||||||||||||||||||||
General and administrative | 95,144 | 17% | 116,211 | 20% | (21,067) | (18%) | |||||||||||||||||||||||||||||
Depreciation and amortization | 64,060 | 12% | 38,644 | 7% | 25,416 | 66% | |||||||||||||||||||||||||||||
Total costs and operating expenses | 562,340 | 582,444 | |||||||||||||||||||||||||||||||||
Operating (loss) income | (8,719) | 1 | |||||||||||||||||||||||||||||||||
Other expense, net: | |||||||||||||||||||||||||||||||||||
Other expense | (4,008) | 1% | — | 0% | (4,008) | n/m | |||||||||||||||||||||||||||||
Interest income | 23,697 | 4% | 3,829 | 1% | 19,868 | 519% | |||||||||||||||||||||||||||||
Interest expense | (41,907) | 8% | (22,316) | 4% | (19,591) | 88% | |||||||||||||||||||||||||||||
Total other expense, net | (22,218) | (18,487) | |||||||||||||||||||||||||||||||||
Loss before income taxes | (30,937) | (18,486) | |||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 47,938 | 9% | (12,370) | 2% | 60,308 | (488%) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 17,001 | $ | (30,856) |
Nine Months Ended September 30, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Net cash provided by operating activities | $ | 122,424 | $ | 114,901 | |||||||
Net cash used in investing activities | (42,894) | (211,784) | |||||||||
Net cash used in financing activities | (41,790) | (115,440) | |||||||||
Net change in cash and cash equivalents | $ | 37,740 | $ | (212,323) |
Three Months Ended March 31, | |||
(in thousands) | 2024 | 2023 | |
Net cash provided by operating activities | $42,586 | $32,288 | |
Net cash used in investing activities | (20,615) | (14,288) | |
Net cash used in financing activities | (160,972) | (14,090) | |
Net change in cash and cash equivalents | $(139,001) | $3,910 |
Period | Total Number of Shares Repurchased (1) | Average Price Paid per Share (2) | Total Number of Shares Repurchased as Part of Publicly Announced Program (1) | Approximate Dollar Value of Shares that May Yet Be Repurchased Under the Program (in thousands) | ||||||||||||||||||||||
July 1 -31 | — | $ | — | — | $ | — | ||||||||||||||||||||
August 1 - 31 | 1,137,531 | $ | 6.78 | 1,137,531 | $ | 122,130 | ||||||||||||||||||||
September 1 - 30 | — | $ | — | — | $ | — | ||||||||||||||||||||
Total | 1,137,531 | 1,137,531 |
Period | Total Number of Shares Repurchased (1) | Average Price Paid per Share (2) | Total Number of Shares Repurchased as Part of Publicly Announced Program (1) | Approximate Dollar Value of Shares that May Yet Be Repurchased Under the Program (in thousands) | ||||
January 1 -31 | — | $— | — | $— | ||||
February 1 - 29 | — | $— | — | $— | ||||
March 1 - 31 | 21,329,492 | $7.26 | 21,329,492 | $295,185 | ||||
Total | 21,329,492 | 21,329,492 |
Incorporated by Reference | Filed/ Furnished Herewith | |||||||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||||||||
3.1 | 8-K | 001-39549 | 3.1 | 9/28/20 | ||||||||||||||||||||||||||||||||||
3.2 | 8-K | 001-39549 | 3.2 | 9/28/20 | ||||||||||||||||||||||||||||||||||
4.1 | S-1 | 333-248465 | 4.1 | 8/28/20 | ||||||||||||||||||||||||||||||||||
4.2 | S-8 | 333-249069 | 4.4 | 9/25/20 | ||||||||||||||||||||||||||||||||||
10.1† | 10-Q | 001-39549 | 10.6 | 8/9/23 | ||||||||||||||||||||||||||||||||||
10.2† | 8-K | 001-39549 | 10.1 | 7/27/23 | ||||||||||||||||||||||||||||||||||
31.1 | * | |||||||||||||||||||||||||||||||||||||
31.2 | * | |||||||||||||||||||||||||||||||||||||
32.1 | ** | |||||||||||||||||||||||||||||||||||||
32.2 | ** | |||||||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | * | ||||||||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | * | ||||||||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | * | ||||||||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | * | ||||||||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | * | ||||||||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | * | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | * |
Incorporated by Reference | Filed/ Furnished Herewith | |||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit | Filing Date | |||||||
3.1 | 8-K | 001-39549 | 3.1 | 9/28/20 | ||||||||
3.2 | 8-K | 001-39549 | 3.2 | 9/28/20 | ||||||||
4.1 | S-1 | 333-248465 | 4.1 | 8/28/20 | ||||||||
4.2 | S-8 | 333-249069 | 4.4 | 9/25/20 | ||||||||
10.1 | * | |||||||||||
10.2† | 8-K | 001-39549 | 10.1 | 2/26/24 | ||||||||
10.3† | 8-K | 001-39549 | 10.2 | 2/26/24 | ||||||||
10.4 | 8-K | 001-39549 | 10.1 | 3/7/24 | ||||||||
10.5 | 8-K | 001-39549 | 10.1 | 3/14/24 | ||||||||
10.6 | 10-K | 001-39549 | 10.18 | 2/29/24 | ||||||||
10.6.1 | 10-K | 001-39549 | 10.18.1 | 2/29/24 | ||||||||
10.6.2 | 10-K | 001-39549 | 10.18.2 | 2/29/24 | ||||||||
31.1 | * | |||||||||||
31.2 | * | |||||||||||
32.1 | ** | |||||||||||
32.2 | ** | |||||||||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | * | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | * | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | * | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | * | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | * | ||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | * | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | * |
GOODRX HOLDINGS, INC. | ||||||||
Date: | By: | /s/ Scott Wagner | ||||||
Scott Wagner | ||||||||
Interim Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
Date: | By: | /s/ Karsten Voermann | ||||||
Karsten Voermann | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) | ||||||||
Date: | By: | /s/ Romin Nabiey | ||||||
Romin Nabiey | ||||||||
Chief Accounting Officer | ||||||||
(Principal Accounting Officer) |