GDRX - Earnings call 4 2023 | GoodRx Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the GoodRx Fourth Quarter and Full Year 2023 Earnings Call.

As a reminder, today's conference call is being recorded.

I would now like to introduce your host for today's call, Whitney Notaro, Vice President of Investor Relations. Ms. Notaro, you may begin.

Whitney Notaro

operator. you, Thank and the everyone, GoodRx's conference earnings Good quarter welcome and for fourth full call morning, to year XXXX.

are Voermann, Officer. Joining Officer; today Scott Interim our me Chief and Karsten our Financial Chief Wagner, Executive

call repurchase Before we anticipated to financial not limitation, potential our this our statements forward-looking statements like partnerships PBM be deprioritization begin, solutions of of regarding relate anticipated on without market wind and savings savings Kroger contracting our approach, of the Savings solutions to manufacturer All business, UnitedHealth made pharma including the goals program, Club, that expected historical of expected plans, the timing for parties, our including, integrated will offering our of the and and initiatives, our and down under our facts considered outages cost impact expected benefits underlying the objectives, that statements should impacts new amount, remind retail environment and of by our statements. performance, certain hybrid disclosed call contain everyone our management's I'd the business, impact this program, do direct matters recent of of impact strategies, collaborations with and the Group. macroeconomic proposition, in third trends opportunity, on share value forward-looking our growth,

by guarantees, statements. known be factors expressed unknown any and to the implied nor involve results, from risks, other but or neither our cause or may These future promises actual important different forward-looking achievements and These factors. statements results, or are materially performance achievements uncertainties performance

materially report our Commission those call. the ended the indicated this the with Securities other Risk statements December actual differ Factors XX, forward-looking by from Exchange annual on XX-K Form for and on in year cause to and Factors made filings the results XXXX, could section of discussed our

update obligation we call, Any the of these to subsequent events date such this any management's represent statements if disclaim of statements cause views to forward-looking and even our estimates as change.

non-GAAP certain on In addition, remarks. metrics today's be we referencing will

each the investors.goodrx.com. release have remind as that page can this the to shortly also Investor metric a at website nearest like the press on be earnings overview to call metric found become in We everyone Relations which I'd reconciled of replay available well. non-GAAP GAAP will of our company's there

With that, I'll Scott. it turn to over

Scott Wagner

meaningful thanks everyone discuss to and priorities, our our I'd us and Today, key on through our making will Whitney, XXXX. to 'XX you then expectations results. and Thanks, financials the and year for fourth take today progress joining like QX to QX quarter we're highlight Karsten full

and the serve I'd the GoodRx like prescriptions. what consumer saving do. and to people value start is we money by The we on the critical importance growing of which framing of fundamentals proposition, needs

billion. GoodRx company, just big value we the of last consumers approximately history here. the $XX billion. There's consumers year, saved Over And fundamental saved has approximately $XX

increasing gaps And increase while plans coverage change. and health are and than We costs, been, we stronger believe co-pays coverage health patient formularies. these of highly today role are narrower Consumers with them ever drug is don't out-of-pocket expect like simple. and pretty the costs care GoodRx is rising to continuing plays care trends facing they've deductibles to with market complex,

more them and recognize access fundamental why resource Health affordable medications than become providers care health is a the Medicaid to consumers system in which redetermination GoodRx, to makes how Think the this care essential is access We an about care professionals benefit for us. their of trusted reality XX% American alone believe for health solution limited to of funded we've why refer U.S. patients a has plans. part this

consumer-driven consumers use GoodRx, leading one digital in experiences. billion prescription of savings, $XX to alone, XXXX GoodRx XX approximately the In over making million health achieve care

both market industry following created are prospects. short-term been in believe some have about in increasing, GoodRx recent the have industry the our and movements We value tailwinds confusion are For years, those scale. chain patient the GoodRx who costs is growing. out-of-pocket

are the proposition and HCP too, strength making advocacy Our grow GoodRx business. users, value the in confident us of to our growing our our ability

Our financial improve million-plus our results industry our GoodRx we to value the focused on continue annually. helping that from creates chain, the for partners benefit proportionally as XX in value consumers

see rate, in XX.X%, operationally. In basis financially preliminary Consistent and to XXX significantly the with QX, continue momentum up both announced QX and EBITDA up QX adjusted to adjusted QX results X% revenue year-over-year our growing year-over-year, compared adjusted EBITDA with was margin XX% our QX growth January, in we growth the business, our year-over-year. positive accelerated we to points

program all efforts reinforce is areas: performance ISP; of integrated our X manufacturer to benefit retail through in into savings financial partners; specifically and bringing third, GoodRx to offering. solutions first, throughout the our commercial up the direct These relationships fundamental for in showing result second, are proposition XXXX, value the plans of with through our savings our leading and our pharma brand bringing results. GoodRx drugs This

to as outlook more adjusted detail grow be in to about revenue will QX We full and $XXX million well. approximately $XXX a million. bit. in revenue Karsten into go adjusted through the expect of XXXX anticipate We continue adjusted EBITDA for for to our year with XXXX

to highlight the and deliver I'm XXXX business right I'll in today. ones are we're There shareholder of the drive term. the areas will long X say to are expecting value growth confident I the our priorities over

PBM First, accelerating success pharmacy we've contracting. includes strengthening our which on of continued retail our the direct hybrid model, been relationships focused and retailer and

revenue with leading and direct retail closely well with contracts In drugs fourth targets. As continue pharmacies the contracts our smaller we new performance to sign by driver the direct value line as work direct of a as efforts and joint pharmacies contracting quarter, with where and retailers us margin pharmacies. expand consumer is covered were within top CVS create executing and while to against a our grocers as reminder, pharmacies Walgreens approach like

largest most GoodRx We that makes we drives contracts volume our Today, our X directly of our partners in overall volume volume. It's and and important pharmacy medication transaction minority contracted a for growing do ways. traffic pharmacies. prescription have remember retailer to of direct up this retail with

estimate we By of due prescriptions offering all go between First, each can and would fill price U.S. that the year away from. lower that pharmacies points, to otherwise in unfilled price. walk XX% XX% scripts patients

into Second, prescriptions in on their which prescription locking users, and Pharmacy's drives pharmacies GoodRx of contrast, by stores. in contracts XXXX advertising $XXX customers, the drive and volume ability is GoodRx alone, one we've million focused reasons ultimately their which been This of so is pharmacy. multiyear in almost in all definition, people the impact receptive and incremental has solutions, related to invested have of number over the to marketing, increasing while affordability proprietary us. incremental only retail with to promotion

contracts, I retail including informed retail with that other of card and also want part define pricing Pharmacy. seen acquisition offers We've by are retailers of provide to direct agreements number pharmacy CVS cost-based very and pharmacies, pricing way models for GoodRx great us of partners, a a models, to use emphasize in discount and work in these movement welcome key between combination off that economics cost-plus large both as margins broader We a benefit both us. reimbursement pricing and well plans that's to align worked funded as to payers the benefit consumers. pharmacies of it's out

insurance comparing believe that takes GoodRx models. sustainable cost users That we our in some strategy, form reimbursement that estimate us evolving well means approach coverage. aligned have a over prices positions with which are contracting exclusively prices Critically, X/X against direct a not growth pharmacies. of market comparing consumers for retail co-pays, pharmacy between We of

uninsured cash the which affordability than is For greater and is usual pricing. opportunity pricing, substantially to generally users, GoodRx higher patient for relative customary

pricing scenario still since reimbursement drug model where retail GoodRx able will across consumers. which to to overall we be pharmacy consumers. cost-focused significant a the a ultimately We kinds this more pharmacy reduces don't of price as each we savings strategically neutral to case were different there deliver be see disparity attract to given trend believe will pharmacies, benefit uses If

offering, done savings our or with has Express Navitus the MedImpact for who includes commercial programs CVS through and demand prescription core aggregate been prescription plans. integrated second transactions PBM this to Our growth our program, Caremark, benefit our plans insurance to ISP, funded Scripts, or extending like hone discounts. partners We've for our which priority GoodRx

and The year-over-year incremental line early is contribution traction to our we're encouraging revenue seeing is its generating QX growth is manifesting our XXXX with reflected in for ISP expectations. far so is in ISP revenue expectations. in which

retail. at ramp there types believe in to be in will of through level comes of the early and some ensure we're work to mentioned the add with transactions still ISP the PBMs volume program we to days to as and the that past, acceptance very we more prescription As we

they lives discounts Also, our GoodRx the these pricing direct-to-consumer conversion of inform in that and we over these while lives of employers eligible and our onboard. time accelerate Along lower we've and PBM to programs partners to can increase educate cover, well, with can we're non-ISP, number be programs with inflect believe as lives, we been increasing the historically parallel market we able in over in about given offerings. working XX% them to U.S.

in co-pays patients' the often. context we more As do so ISP, we beat we of can believe

seasonality health the be are relationships last growth. to are our of Given GoodRx with in in learnings evidence we that likely Based year, higher minimal, and since been revenue of its latter remain first direct-to-consumer to focused plans. accelerating while more half ISP create revenue the some part, expect has our the year their routed through incremental incremental our claims cannibalization we less contributing the during phase of and deductible offering from ISP consumers any is on on to

see weeks predicated driving And the That year. of more types successful said, in deductible growth of more transactions, expectations we period. first lift as incremental few our has performed ISP program sales, and how everyone update for we during may this XXXX's on more the lives if employer we're to are help achieve we and patient the months this reset We'll manifesting. if coming drive in

deals our and XXXX we're mentioned the in we foregoing prioritized one we've growth our up been sustainably. 'XX. for scale to past, and believe set efforts. as instead In We've to solutions into year-over-year go-to-market creating on doing accelerate ourselves on we expect pharma we and manufacturer programs Third, and the focus believe off scaling FY continue work And a XXXX, in first in the access that will with deal QX, standardized focused quality quarter awareness build our we pipeline growth. leaning solutions we that

including detail. Our which to in our more essentially in speak Karsten and margin offer, accretion will this restructuring rationalizing deliver to we're expected complete, on track is in vitaCare XXXX,

to it over With that, I'll Karsten. hand

Karsten Voermann

during summary, results, range our in fourth guidance adjusted in financial our November In you, QX we January adjusted preliminary were EBITDA Thank provided. the consistent end we turning results upper and the range revenue XQ briefly margin quarter, with earnings announced which Scott. exceeded I'll the 'XX to the the before speak to call QX provided we guidance of in on was guidance.

Total driven revenue. revenue growth year-over-year for X% to and revenue quarter the increased in by $XXX.X organic million transactions primarily prescription adjusted

million, which MAC. year-over-year from quarter-specific XX% also slightly grew favorability to increased which driven contracts, revenue partially QX transactions to client Prescription by was $XXX.X an certain for growth acceleration related PTR

sub to than Gold and wind and due of year In Savings in fourth was X% $XX.X million both Kroger up period. XXXX related less down over of declined QX, million, Club. year-over-year. revenue Subscriptions gold was XXX,XXX. $XX.X count revenue Kroger prior in the was revenue quarter-over-quarter Savings the to the was $X the count Club subscription million quarter

be continued subscription Kroger GoodRx given the the fee Savings the Kroger expect to subscribers, from wind relative wind much and of than to is now plan revenue. more July subscription for the subscribers Gold should count for than higher Club impactful down We down

X% of the million Manufacturer over whereas Pharma vitaCare. The million revenue to 'XX, included declined prior restructuring included Solutions our year-over-year year essentially driven shutting vitaCare, related by X. offering, which in $XX.X XQ quarter to down of was there $X

manufacturer of was XXXX. quarter compared $XX.X XXXX. to year-over-year to increase the marketing pharma of compared adjusted was Net $XX.X higher in was revenue, the million loss Adjusted to net net year-over-year of loss million. Adjusted a income fourth XX% EBITDA with solutions, primary in $XX.X of increased the fourth cost million discipline, million million and restructure of along deprioritization $XX.X quarter the $X.X including actions efficiency the our taken The vitaCare. increased driver to

We generated year-over-year Adjusted which on our end $XX.X provided period. was points $XX.X by the million was EBITDA approximately XXX year basis of compared million XX.X%, range. cash up to in activities of high margin the guidance prior to net operating

investments and shareholders. we'll on high-return allocation Our capital continue maximizing are priorities to value unchanged, for focus and

we and million blended million Significant the and co-founders related equity included discussed we've $XX grant quarter strong, spend $XXX.X outstanding at withholding a quarter on approximately a taxes balance last And defrayed delivery of of cash of calls, on of uses basis. approximately ended sheet the of the withheld. balance cash equivalents to in our with repurchases to and million share shares cash related as to on was debt. Our by remains approximately per $XXX.X prior sheet which million share on $X.XX a XXXX $XX shares we nonrecurring

million $XXX Directors stock. of Our facility facility is a to XXXX, our repurchase new of as million revolving letters of of This for approved A XX, $XXX.X and date credit Board Class maturity $XX.X revolving repurchase capacity our program credit common representing to to extended liquidity July of the except up credit total stock worth Recently, of month, untapped, XX, million. XXXX. of we unused December had

to turning guidance. Now

and for has on stage and X% early current revenue likely revenue the impact a by which $XXX represents million this lasting growth Group believe impact X% $XXX of recent despite we our couple Our revenue adjusted includes a revenue not that year-over-year million, days UnitedHealth outages to at is financials. outlook disclosed had which estimate of QX adjusted our to of material

We expect revenue third believe quarter we Solutions solely GAAP Pharma to identical to in onetime related vitaCare, because the revenue to restructuring with first adjusted adjustment the in XXXX nonrecurring. the be to and relation Manufacturer quarter and

solutions tempered as about also impact wind as to the $XXX the identical representing Club. as top growth line adjusted we revenue the of manufacturer restructuring basis. of The Kroger the growth by part approximately deprioritization well $XX revenue For be XXXX, down revenue million X% associated about at Savings with our rate full of vitaCare of pharma an adjusted million anticipated adjusted on is and year expect

in contra by $XXX Our expectations line marketplace be also our year and solutions is In adjusted $XX in revenue million manufacturer We impact XXXX. approximately this continued provide our investments offerings to increase will in thought consumer million. might for current aggregate, pharma absorbed helpful $XX and top revenue of incentives our million guidance. prescription revenue full it

made of prescription reminder, revenue. marketplace subscriptions a our up prescription As is transactions, and other

includes previously marketplace prescription to our impact the to our headwinds expected of to implied growth expect adjusted We contribution $XX million about XXXX the be $XX revenue million. mentioned The growth of also revenue both. current to related contra we Kroger the and have footprint today, the execution This increasing in are ISP sunsetting the to Savings we reflects Club. network working optimize

implied contribute We growth the which expect to implies $XX digital spend in about of percentages. exceeds pharma ad that adjusted market, to low teen XXXX year-over-year rate Pharma million our the for Manufacturer offering million the growth. a Solutions growth been that to revenue This has $XX rate

we adjusted Manufacturer is contributing our XXXX contributed As Considering part with anticipated pharma offering, discontinued and approximately that, million growth. of Pharma not Solutions of manufacturer to we're of vitaCare, pleased $X restructuring solutions in XXXX XXXX. the our which revenue

Pharma expect offering to we've some trajectory. our offering, be quarter-over-quarter more growth pharma But to in TAMs a business seasonality we're prescription scale for 'XX to slightly we below revenue. XQ has some As expect we on a marketplace Based to broadly. large Solutions historically, XQ revenue given it in relative what and solutions the Manufacturer our seasonality so seen 'XX and reminder, be for there very manufacturer our confident our variability

perspective, to of first XX% up adjusted range margin during EBITDA adjusted for high around $XXX quarters, full couple margins to in high we last continue to delivered again from up range, be the the XX% the to quarter, achieve million of for a EBITDA the From and potentially in XXXX. year, expect the and XX% we've XX%

I'll operator that, to it turn for over Q&A. the now With

Operator

Barclays. first the Stephanie [Operator Instructions] of Our from Davis comes line question with

Stephanie Davis

model. First contracting off, it a to sounds become direct like much you're bigger the starting the see of part

So the I more is becoming see GoodRx looks more you XX maybe not ramp? in years now, but of versus that fully wanted DXC growth Or balanced to on from this to a about you ask the of do to model going XXXX, business? X, do -- be primary what

Scott Wagner

question. Stephanie, thanks the for

forward, what direct we a it are of that's of the doing and of And you this today, the multi-variant where if that with combination well will some look as form think relationships retailers really with working is which PBM rolling into a of roll out size upon depending like the network world. I as are in book. of kind we're process the

some we're a partner's retail they approach don't guidance and following I all in ways, going think really, because differently. this little change -- to a much bit that's retailer

network. similar And be out going right our transformative so now. literally a of really we're I what will there's a the think version more difference more of It in going to rolled of be kind composition don't and through of

Stephanie Davis

-- have can been and I of feel a Is know kind Walgreens. ecosystem? cost-plus no. model how some the on on you that's there there's there. share lot the sorted GoodRx of around I questions CVS fits anything -- That into do you relationships

Scott Wagner

And think strategies say, -- their Absolutely. of CVS theme for, around as side-by-side just them big own the we're Walgreens both for and well the let's as I with category. merchandising really

So we're specifically today. and manner on already CVS cost them with this in working plus,

during an several think tied our So is CVS, but anecdote that really drove the it was up just contracting their a to for of the was not category our and our Walgreens, on all works really fall core it set relationship Walgreens us. took and of is with exactly with that about again, really that season, of and goals, at drug basket their only one a the a goals. flu with because CVS, savings retail working is a from flu how fundamentals heck for of overall I'll indicative the working we're good benefit specific it drugs so XX% was today. In share traffic plus drove was achieve I with hip and of and good Walgreens cold and partner cold merchandising But lot we of incremental activity of retailers

And them contract together that, and if we're this you back really working them thematically approach, step and it's to doing with tying about what which is goals. with think achieve

Operator

of comes JPMorgan. Gill question from the next with Our line Lisa

Lisa Gill

to want I to correctly. sure heard and to ISP, I make go I this Scott, want back that

then about I into I in for that Express there's and opportunity opportunity. far in the seeing this think what in maybe opt-in of phase initial them that a and opt CVS business option their XX% as it the first you're Is of think utilization? said as you the more Scripts can as you Or as books talk driver of far is When is selling about more clients, here? it here? the

utilization we time? about offerings longer you I when over think talk the about is you think that's the driving But how makes and about And really this to it this have, be that over time. that sense year. going deductibles we program throughout term should heard

So understand if help little to that can bit. me just you a

Scott Wagner

question. Yes, by of total thanks. MedImpact, early. that that whether I coverage much appreciate of about all, eligible each rollout. you it's rollout still It's universe. say it's And the is program XX% much at Right set Navitus, that, and early, less lives a understand partners, a XX% described than lives is of operating they our this that now, the Caremark, first cover. but the it's ESI, narrower I'd amount of the the are under

you coverage. first step are life. expanding point percentages narrower change the it to rollout lives want out by program are that much so each coverage we're just specific a I to -- getting we differs but probably go, is And level a by we the where in for is lives, it don't this it's of a -- covered differs as more step there universe because so than total of or to give today. building And more PBM,

is component also how program which hopefully over optimization there's improve is then is this. be component the this that going at ways retail, accepted also ongoing Then believe the something that can to that is tweak time. and of the to last we And final we help

line the say, covered from And the is level, with punchline I we lives so I'd roll particularly would and thought out. it's acceptance how our and expectations, kind early on it's days, this in think, of

Lisa Gill

can ISP then about think how remind margin And your on you business? versus just the to traditional us of

Karsten Voermann

in time, respect direct-to-consumer our for and then CAC, the as is Lisa, demand capture how in the capture really Thanks, over demand advance them The we business, by Sure. business. users to margin substantially question. we Karsten. we margin, This our identical time. in spending distinction it of to only we With to dollars over the monetize looks capture think rest marketing

demand context, ISP PBMs. is by the the aggregated In

fee per a a And with associated but basis. we marketing pay that's transaction that, so do on

paid So converge, things over to the time, CAC and those margin PBM. the upfront X we the

keep So them try to and similar. we've engineered them very

Operator

Our next with comes question Charles of Cowen. line from the Rhyee TD

Charles Rhyee

few on follow to that factors the of Lisa's here is some question. up and Scott, wanted things. the to you consider rollout mentioned Just other the of just a pace

on first access signed there I be of let's those a ISP. rollout that, got going million is to it access this gain where Just year? Jan the will or million it are guess, example, that members covered lives for mean phase to still Or over XX say, all if, X? course Does to up an XX for

is see the get GoodRx lower they're was price means that between how and price which acceptance then at also in what a and this understanding isn't kind at funded level system will PBM then kind of goes retail retail. function the one retailer accepted mentioned talk just at that instance? the And of. you you system My you're charging. someone of versus the automatically -- the adjudicate secondly, the the looking program benefit Where Can or in about will

Karsten Voermann

Scott may and This is one on I jump follow. Sure, may in this Charles. Karsten. first,

point think which with. about pleased up Xx pretty ISP year-over-year, make is the we're I is So to first

ton us is year contribute sponsors, in the employees, very upfront. et while the this MedImpact, be sponsors, for been is this second of second of own ESI, that Caremark, their don't now its for loaded have this Navitus, lives I it's immediately believe need smooth. We available potentially cetera, a think customer of we'll with existence on us, for is point first to relationships they year to volume to is program to that all with and given

that's So Scott we it's hey, was to ramping. what say, referring when still

the think good retailers want to how the on retail like this business ours. second customers their are sure PBMs, for make is much I a our experience shared assessing it's also customers, point the impacts retail and the and

So in retailers see levels into trying well, this energy ISP as to their that context with stores. we of different business around attract

Charles Rhyee

they I see. for there pharmacist I if way I I desk, whether able a like I Is other ISP can up. know example, the number? the a it a way they seem follow script, was tell. will Is the day, Caremark price, pick Maybe a the for asked just going up if could consumers like, into to for like future generic to getting know Walgreens consumers to they're there didn't and went be

Scott Wagner

is the through That the this the really and the state, plans going rollout think get I Charles, benefit of would be feature. end hope, to as we

a can is other vehicle working which retailer thematically, And my we so each benefits goals. as be of CVS making a merchandising gosh, communication think or now, through element. right that at oh, about Walgreens is that's that you your help But pharmacy almost if have Last, and core that we're things partners, the plans. your value you what whether of how is it's different that's the on, proposition our this achieve working retail might dialogue our or with

say more really it doesn't future. it's not that in the today, exist that So but to

Operator

line from of Cherny question next Michael the with comes Our Leerink.

Michael Cherny

a vein back with a had forward, you're who leg X-side of across years you think the feel the along ISP you Do of Is thinking look ISP the PBM Obviously, where you the I side do at more partners And of pharmacy? adding now dynamics for next of do of direct partner go should pharmacies. as it evolving homeostasis leg the from nature as same as like both the one in on the similar on we development? terms the market you health Kroger. network, be? the the not, of the of next relationships X-sided network? your now we think see side? the your And important about Is reset couple well it where next else more at the if of you see

Scott Wagner

for that that. I of question. Thank theme the Yes. you like

I In I such our X would the that are for, us to would hope, you for how deliver with the feeling forever right the approach benefit characterize terms and do of retailer is can about. now partnerships and balance, good work really that that people economics the retailers as well years carry forward work of PBMs as as have

in standpoint, And days think working would retailer the wand, a you how wave I so effort. from always you I could earlier say we're magic of of kind if this run

thematic another it And be continue the marrying differences, any the is, but that evolution so GoodRx right? what I'd whole of really is wave a structural more of your and outside it probably over insurance I is to tying say which there won't huge will of exists evolve time. benefit What closely, do has plan believe

users macro couple get insurance in and downstream means plans, continue incentive is through macro is help to Americans plans work work. come us context going our with with then here people of think health our through heck get billion the trends the corporate And own big their XX% that's vast I affordability. majority are The of whole the for care up. lot our And a of which a has the proposition that the addressing we're operating that Medicare. are to going to partnerships. those zone And to X What are whether a to our actually drugs it's X are value and partners does our prescriptions due in covered, billion a in. and a left together, industry that of we're up, approximately plans things of that going and as year, co-pays of funded are counter medications, at there's B It where narrower mean bring a world we're and deductibles that's set PBM in. being the our sitting these

but years keep system, GoodRx, good things months, the it about those of continued So X I be it over system, quarters coming the the on certainly good behalf for and also hope honestly, and for from marrying evolution us will be to not you're hearing just because us.

Operator

next from Partners. Wallace Our line question comes Guggenheim Jack with of the

Mitchell Ostrovsky

that What been growth lately been pharma for demand going decision-making? is outperform that confidence you the This business? Mitchell Jack. gives rate then environment manufacturing the market pharma you're there seeing for changes in to in what solutions? any And the And on have in you the have

Scott Wagner

in Manufacturer GoodRx Solutions people the pricing XX again, reflective year. for scripts really that's is drug a a a marketplace, searching of the is specific million the approximately core of a benefit that approximately, coming business and which $XXX million -- anchored that's is surround year million XXX here

you're brand and the whether you're very want kind you're drug, with generic, If at a brand depending or upon OTC, an you of be a pricing drug brand, communicating either you're that discount low of that be environment in to a a your funnel. a user in the nature in environment merely to

that valuable. in marketing pretty is high-return unique vehicle extremely pharma and pretty I say would we're one So and

think digits, us. with up to simply of having in that And relative right brand have them we in getting our front and outperform different in work run of market things our sign prop mid-single ourselves and is grows for but and should brands them every getting in teams by value agencies, are we're a front company, programs. access here, single the value really the more doing penetrating expectation managers, that the to we So be able high which

Operator

the from of Our Jailendra Truist. next Singh question comes with line

Jailendra Singh

recent elaborate systems but Is what than it seem that, your days, integration system more Or want change, comments there? and I X it partners, on longer more I financials, done United. the your if does cost side? on side? impact said follow dependencies your to haven't exposure PBM side? more your on by the up for is were I And disclosed longer more to you down around it know pharmacy volume it the workaround. been that, Can is than the have you more on outage

Karsten Voermann

this here. speaking Jailendra, Karsten is

did tech amazing an of performance X we've We job So I really of think, ways. they in teams. first all, with pleased been think the our

First of alternatives creating all, us. for

and one So refer as versus volume we for in big of affected switches that us context we affected a of time. period an rapidly. longer reasons able to an issue of our alternatives this for many in shift a days issue quite being the use the that the industry being of to couple That's what

for who to route might being ability funded And transactions broadly. card folks scripts not or and it's on the able call issue to the fill pharmacies the know the around discount issue,

because that the I course, helpful impact So that otherwise much think the to in to from our of response users perspective, that manifested diminished us our quicker quarter. have would and helpful was

for evolve expectations otherwise and the that date want would still and in has would we're see in also of reasons come with reflected evaluating add, portion been. But QX the the our when the impact how winter is also it. large back. I'll had as issue drops, a been it contemplated we significant volume sort based growth to volume not have our often point you that's like We guide. of it I the of rates. storm, data to the one this on as And included that out

Operator

Our next Jian with question Evercore comes from of line Li the ISI.

Jian Li

This sounds up sort ISP on it. going dependent -- maybe questions. ramping Mark just couple is can the it's of it's the partners ISP, Great. One that the A Mahaney. what's of back GoodRx plans do? Because go-to-market on for Jian like benefit the to is the it

mentioned marketing. increase guys What sort that, you of is So that What anything penetration? spend? the are dollar maybe is ramping I testing? related that And GoodRx where you like up doing to to think -- channels

Scott Wagner

Yes. days. Right PBM capability own vein partners plan client into present their to their early then effort our working base. the with our of and is in this now, -- again, It's

question of, the with only our time, nature working corporate in figure to hey, and your and so over And what then we're And that -- but you And educate influence question the do? "Oh, partners clients, the how of brokers not out. who do again probably our of, work probably partners. are with this the this. real are now, we right consultants We'll decision-makers

that that So to necessarily our figure benefit, year. part work own and do there's should through of we'll with more product not for that success but our And will even things we'll of out just the be for partners. believe that do, audience, we the that the we can on but this it

on marketing. second your question Then

about and what way, to the we you valuable GoodRx do hone can nice are focused is here pretty able audiences on for is there's of benefit add thing particularly we could precise people not that to. kind prop means lot the that a super a to insurance value be an to and that a a know get And an are amount. should what and to our what pretty and savings benefit one-to-one condition we're if is So can going incredibly but individual you of that that their have, they map we in can individual much on way, precise in high-value marketer, the

about save mapping, GoodRx of mapping towards se going has we can team shows working them we're marketing as messaging channel as per where it's $X,XXX, that up that's that kind individuals right? So much been the do and our just to these You less on. and really $X,XXX, what know $XXX,

doctor beds because office administrator, a fact a with health professional's the nurse better. of of surprise that on here realization whether GoodRx care that what's one stay and recognition is it's ongoing people was love legitimately beds on the get health this professionals and and into a helping absolutely get office they that delights or Coming GoodRx. or love we're you about biggest care in, Along walk my who

advocate we how a can way. where a continue really in for natural and us And this help we're we focused us that super at huge marketing, advocate totally so for that in our to audience natural on audience way. is look When

Operator

question line next comes with Allen of Lutz the America. Our Bank of from

Allen Lutz

actually more more XXXX frame ISP, it the the many direct on than from start the could Scott, lives and relative contributing bit ramp the of contracting way then regarding be like be in there little direct And in a the you to versus how any ISP? contracting sounded year? may down break is Can growth ISP. platform by XQ

Scott Wagner

relative the at versus a might which X%. little The the grew revenue growth, quarter, one parsing other. that come -- is differently, I of in

at the in the GoodRx the performance think marketplace look of And seeing what context growth. now of you're can the I is You system.

stable you at see network forward. we'll it, a a place, but retail so And really a, working call

now you're right seeing now, in way And basically operating so the the within -- the GoodRx just that system. we can

of ISP. that to retail I you're to to fundamentals grow not get This now average continue mid- that is who of is digits. the category, single have volume what's be drive versus the that underway, a now nicely keep it's are is, nice seeing And in and back we contracting higher than using GoodRx people our able number the high number think, of the benefit, So the thing above Hopefully, prescription should and to we them, category rates. we landing can. things to growth we and that rate of growth if

Operator

question next of line Grosslight Daniel comes Our with Citi. from the

Daniel Grosslight

headwind direct you've lower MAC, be generally it contracting, have those contracts given On noted might that previously admin to a slight for PTR just fees.

direct should given improvement your a for thinking you a part your at sequential XXXX will become numbers, very I'm as contracting XQ look in be for beyond, had metric Mac. So we bigger business? that how about But of nice I curious, and PTR

Karsten Voermann

for our value we that our a Thanks you're have we and as add pharmacies. With customers, for MAC, relationships is question. Karsten. and we deliver really of when prescriptions the pleased reflection see respect we the right, PTR to to a to PBMs This our are the

we that perspective, really reflection from we it's how well what do do it. and a of So

respect I any not nonlinearity we're think to in the future, expecting the with trends.

think XXXX move direct very much is volume already we minority not as all of contracting So it's a going at significant that coming through. into now we the go to

Operator

Stanley. Morgan the of line comes Our from next question Craig Hettenbach with

Craig Hettenbach

Solutions. with you're hearing particular you're as to you are Any then resonating strategy companies market? well. as feedback target know What's on things of pharma versus to you've Manufacturing Scott, been growth? and some evolved that there I that terms just growth back this Pharma working to what look circling in meeting your in drive

Scott Wagner

Thanks the Yes. for question.

might doctors, drug care, unique the is that just marketers it intended we and who a there's million where specific absolutely who a love, this different in reach other areas has is, really have audience Health little categories, think I thinking one. you the a These is position call prescriptions. are right? those a to GoodRx health industries role Google one, and appreciate. again, their are condition, care and but people what's of marketplace low people in a -- this ecosystem resonating mean vehicle around or XX unique is that as about I which funnel high recognize, number valuable not outside people

this are into to unique can where of leaning that some ways whether with us brands to, reach place around great. we're a they all which work having an audience performance couple companies unique so and it's to brand are working, price working at GoodRx And messaging, is a or again, cash propagate that the up are end with their deals who

brands that for the I when brand relative number itself. things of have We're small we've a it's There's do in top context the still at unique the around is lot can of a working value. spot it said, look sweet here XX them, traffic a think XX. broader gone we're those very we we with where through to we and spot

to and ourselves us if to throughout a would managers which effort magic each the makers value then the of and And is just growth. work really of not them, Well, sign in start away. to that value we present but XX these level in companies, get so could ourselves proposition this of front campaigns the getting want think them front brand and literally getting in that's would people front loaded hopefully I happen But teams of access maybe our for for year right for do, up, all prop decision of have get is there's and at go up. a these kind

Operator

question comes of line KeyBanc. from next Our the with Scott Schoenhaus

Scott Schoenhaus

on But have I Most Scott, follow to questions up been around my the asked. your wanted comments ISP. of

the new walk due that part in longer the line generating already first that just the to employees. deductible. is, thinking with retailing the the of side, time, deductibles you in half probably moving direct you about as the the business? You us year. those year-over-year expectations But this should revenue comment be incremental you by and more of sort said ramp clients the the How about then them year some talked of per business ISP have you through talked about second parts then half transaction reached in affecting this like term, throughout that's Can have And my you'll these the given question of on we you're that on of that? also revenue their the Can all will ramp how back seasonality side.

Karsten Voermann

Actually, to is Scott, and first, This you with I great again. speak jump Karsten. in might

of parts to And we are think have are ISP. the on that, degree, around offsetting. seasonality is X there One factors dimension, question. I that to some X

the hand, the On year you'd on valuable for of for that ISP be cited. beginning earlier the the right the more quite lives reasons to to you year, at you're expect in one comes them

might we given as be have at a that of start PBM is anticipate not up the incremental up the only from also of we during that transactions lives types though, effect, year other that well year. year, the think some the we'll during will incremental the I picking not picking be but we

So former state, would people steady primarily the the see you deductibles. effect, meaning while a seasonality in of hit

in-year by medications, think pick expansion et in we the attenuated be I this cetera, will up. that year, that of people/lives,

the of sort In most all revenue our over terms meaning said way economics, paying tax with we've the acquire it's PBMs upfront. a we're little And look pay below to only the still line we the what in real the real economics because our users, delta who delta aggregate primary in as always for the be better marketing the time on back is go business, how different there might The the of very the sub of ISP fees to X-month in sort respect in demand they frame. With But past, for direct-to-consumer it then pay part. a consistent of that's time, similar. behalf. the context, putting we we

see differences terms revenue transaction see don't we users, per think -- I we In or don't there per Scott. I of substantial think revenue all, at

Operator

comes from Berenshteyn of the question Stan next with Fargo. line Wells Our

Stanislav Berenshteyn

agreements contracting contracted of On do directly at point And direct of sale? savings to pharmacies the advertise of contracting, any any your are consumers the GoodRx exclusive? direct

Scott Wagner

benefit partners efforts at space. We're cash retail that they're the Yes, call a We're think and GoodRx marketing the out and have if discount our but in in then demand you the and thanks. anything to not world, how lives with a has interaction cards. we without think insurance second, every working that about retailers way where going card that exclusive, again, company individual off retailers only leading -- an is, far with frame our away the I'd you about plan. the fundamental one to relative pharmacists. of broadly, obviously And that pure with zone if you're think No, think retailers we're the do the or relationship discount GoodRx, what each I any retail drives I we to board if above

and companies. category a we natural an that's couple these do build other to business And effective with if share contracting and hope then say, is companies in us, can't work what of the whole card going with a talk little tail a really we can category, with about gain long I a that small, this result years so this do. in when of GoodRx retailer has of from retailer about a kind you that And to retail, standpoint way. legitimately is, I direct to think because working would each just over their us things continuing just in way

Operator

the line Kevin Caliendo Our next question UBS. comes of with from

Dylan Finley

Caliendo. Dylan Kevin is for on Finley This

be with much pool guess it's But So more have continues in overlap I there more as overlap there saw your others in the your what's Express with grow, that much and on gets customer you Scripts. the that to the wasn't X, to and plans Caremark year that guess already to it pilot offer going ISP, that you pushed today? at isn't the as I base? to last program lines existing that reason guess in that the overlap year possible GoodRx existing what I conviction more turn X out not and there's any X, is lives.

Karsten Voermann

large I Sure. even from This that top and it's best benefit is overlap year, last assess Yes, GoodRx year think the year, just the counterparties with in like ESI this Again, with of single-digit well part but continued for to we're low consumers. is because this noncannibalistic ESI, or have worked we've seeing year this. for magnitude Karsten. increasing on we evidence as really we as before we last the its what program evaluate not medications to our did

drugs, to that incredibly continue in on MedImpact, we've on Navitus changed. has now consumers, evaluate, nothing XX low top seeing context, et we cetera. We're and And overlap that added And that single-digit still obviously, Caremark.

in happening. So might and used they to here automated the have not what a a hope expanding is have is what this opportunity when are is are really medications who of and never finding it SAM there GoodRx bunch meaning that's past, for benefit, that exactly a us, is it for used it of we're we folks see GoodRx might bunch who part and their of doing for happen, that

Operator

Deutsche question next of the George with Our Hill Bank. from comes line

George Hill

at around you drug process a matching rules either ] I'd the interested question where probably When that the Consolidated I think with of get into to J&J what the point and do better as a is guys whether like be risk? in a And sale. there's if had following prices that about rebates that PBMs expect point in have just the how not tail future Act. and serves a or of the job I think to lawsuit [ Scott, about facilitate way I'm we or And or you a purchase risk. for process Appropriations like to Arista

Scott Wagner

plans, Yes, this the some future there should reflects in in which I'll benefit, the a of system question. drug of PBMs entails manufacturers a That's which, ecosystem, have them. foundation a design, you way, all rich is and -- that's plans, hope a care I and again, that flowing which fit health economics the where answer we be hopeful ways, this how rebates, thanks. complex is the is in -- through dynamic that, right, of plan

to to for balance, to But going be for appropriately, on a of do be coverage there's to to And what balance. and pay push do what part as paying insurance this mix ourselves. that's then people be that's a and we going companies of continuing

for going planned think to companies, industry seeing don't scripts to billion place. the different who within GoodRx partners plans as calls and all for evolve, the not And for this of get are to that I for design affordability look people try plus marketplace that they're to to X their the importantly, that's trying to that's need your for retail same is, most be relative covered with to And there's different fulfill. be what other for their corporate across that kind should what we're that options. plan, segments, that to be, address it funded a is value it need benefit is and for filled with ways pricing think of should plans paying creates And this insurance different And still kinds -- our continues create universe continuing and that's I and relative or access insurance to an transparency for what's prop about ISP to allowing independent the have universe to uncertainty plan we going like to covered the create get companies you're work medications. and like of people again, people's affordability us but there with outside and

Operator

from Eric with of next Goldman question comes the Sachs. Our line Sheridan

Eric Sheridan

be how number forecast of about of more would sort help pronounced on just to be models, business we've as can of the revenue far either this back so give subscriber time. In up that a versus the subscription side, of we tailwinds as about maybe one. side Before X you the morning. it we our some And and your ran subscription on bringing on the business, out more proceeds? granularity headwinds little following talked think the Maybe topics XXXX in some might

Manufacturer call, just continue place building adoption of putting on that the of momentum you but some against sort key on broader that you're of opportunity? still execution the so And the better side, understand manufacturer solutions in blocks far Or going points and execute made Solutions sustained you the to around the forward? almost drive can to Is of some business? there's like feel revenue understood

Karsten Voermann

may speak to part Karsten the part. great It's first the Sure. second in I'll to Eric, again, hop here. Scott you and on take

Club our relating a users lot interesting the On are the the groups, a Kroger. is the to part Savings pricing X our with yes, gold Club subscriptions, for you Savings us Kroger users. that users individual which year, of at less economically a reality shy users Even are for than first month, $XX just is look are paying $XX just our paying Kroger split the gold if

Club is impact Kroger counts So subscriber So decrease, -- right? much if as off, subscription diminished. they're much, the that, is you revenue X/X more rolls about valuable, will compare see Savings but we

of of those that $XX worth perspective in impact the the it did Savings million restructuring along Kroger put revenue we impact. were with together, things around to well, Just as vitaCare Club

So sense of not fact get the for there's revenue a lot that you there. can an awful

and talked we're is own because in them reflect to our gold we that which we pleased the that we're growing, quite remarks, their with it interest prepared does which are it, very value proposition about Our something pleased users and in with. offer

Solutions, respect to hop Scott? to in, you do want Pharma Manufacturer With

Scott Wagner

Eric. sure. Thanks, first, we prop of I'd and kinds line sight the Yes, that where our brands question. like high value of particularly have I have say, we to value.

places there's here we at hey, So some at work. everybody do really for fundamentals its

marketing things question that to in scale work, on have Now X that that from match standpoint, in we're it's like data performance these we're still an things we with we in been experience opportunities And do then show a walking all data who's And all up and yourself the of around bunch where the are flexibility in that's I'd to points it difficult you building, and just now have not to matching were execution have capability a things and like marketer honestly, X. a a of particularly anybody X. to intellectual different it. for before platform of and to say there's to XX, your GoodRx those

make ecosystem get we'll But a do I flexible about work intelligent that shovel marketing think And -- to have of a absolutely highly to platform. different you scale, and work. best-in-class brands like in to as data we so we hundreds way continue metric that's can, an just there, that run at pick

market a or done we biggest scale, And before keep and that just access X. teams and work. in brands our having place to think doing that then from now single comfort good that agencies of team I these that helps. in the the have have same from these And take an But conversations. either Hopefully, we has things kinds because of standpoint, are and in awareness in XX opportunity sit decision-makers just a through front X each within is again, probably we're like company the on, that getting I

Operator

call closing for remarks. turn to to the I'd now like Wagner Scott back over

Scott Wagner

joining. questions, Yes. Thanks. us for Thanks, for everybody, appreciate thanks the joining and today, I too.

to it people we May to I -- talking were take out the And don't bit. just the to the that our that and encouraged I not needed savings. ways bake visible is they things into to nice bringing a seeing on and a think going do, we but that's I'm little visible over return benefit we obviously, bottom line. financial talking balance signs are last and wrap we profitably against progress build now is retail, thinking -- which year. said and to seeing fact progress hearing progress to about to growth hope line, things of about April those what -- but this you're time top network, the seeing they around And the started by that partnerships maybe to results, time, integrated incremental not the were the scaling about in just

for the what those to what us that is and see see going go things work we're continue as you'll to share through And to XXXX, get we'll our of efforts. year. with those throughout to everybody forward, scale great now doing Thanks alongside it's So joining. the of we X teams with own each And reflected. progress

Operator

This concludes today's conference call. Thank you for your participation.

You may now disconnect.

GoodRx (GDRX) 29 Feb 242023 Q4 Earnings call transcript