GDRX - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the GoodRx Fourth Quarter and Full Year 2024 Earnings Call.

As a reminder, today's call is being recorded. I would now like to introduce your host for today's call, Aubrey Reynolds, Director of Investor Relations. Ms. Reynolds, you may begin.

Aubrey Reynolds

Thank you, operator. welcome and Earnings Full and the Call everyone, Quarter Fourth Year morning, to Conference GoodRx's for Good XXXX.

Chief Joining our me Officer. our Chief Barnes, Financial Executive Officer; today and Chris are Wendy McGinnis,

the if statements change. views of results, these statements achievements as update this on neither made cause call. Any in disclaim ended and discussed our other subsequent forward-looking programs objectives, and like we statements. are of or in our statements forward-looking not for on expressed market long-term year statements, promises be forward-looking our made our program, These XX-K relate including to Before management's trends unknown and XXXX, matters any the our risks, statements XX, statements goals management's the and underlying and events our such section and factors and factors. I'd remind the in could the involve that estimates strategy our third e-commerce plans, uncertainties but cash historical will All Pharmacy Form that factors, we this prospects, our including or performance call business actual hybrid other capital Commission Risk this anticipated our nor limitation, considered statements of to by our filings our to including, regarding differ cause financial our industry, those proposition, integrated this annual with everyone strategies, allocation ongoing on to important collaborations priorities. These Factors approach, the including of without and materially contain partnerships report even call to do implied and and opportunity, obligation should forward-looking represent and value call, from savings with changes begin, our fact contracting date Securities direct December ecosystem, the parties, known guarantees Exchange growth point-of-sale performance,

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

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

Wendy Barnes

appointed the we Chris, years we've health Americans. On thanks role. consumers as industry, months to have for company Express Thank CEO, about colleagues, relationships spent like these the to health of millions this more affordable care. drug across care I've the to the the CFO, share and initial It highlight X aspect whole. last in the like Then is our Leveraging Benefit greatest X Scripts first partners joining centered and points currently joining Aubrey, solve goal first pivotal in you, accelerate to progress my expectations the at through in ability and network face have a getting of leaders at business recently years people; we XX our success. I opportunities optimistic I to my to access and are substantial meet pharmacy pain principal also personally line help actions: various Medical to my understand we opportunity. be thoughts first building in over I Rite and excited my substantially leverage financials, on system guidance. QX GoodRx seen have the call, care innovation a second, such clients and background friction to to you help Aid, would where focus deep health newly where on with our my take time spent is with as today. and RxBenefits, that these opportunities. business, committing I its convenient business and and I'm key with opportunities around medications. other take chain, privilege understand our ecosystem Pharmacy a excitement so first, of understanding most XX leaders, and and everyone have working make for supply would who GoodRx capabilities time capabilities, which across drive and to strong about best partners today's months My last us both how the relationships the our X and across every almost with can the to the to will priorities can there represent a and

impressed Regarding strategic first deeply point, our internal I'm throughout and of level by leaders, with expertise after the conducting thinking the the reviews company. comprehensive

second pharma has across with the and principal been point, partners benefit Regarding retail pharmacies, manufacturers leaders industry my care managers, business meeting action pharmacy professionals. and health

for is experience professionals, During health and value medications through has needs. With our our these focused care for it target and identifying meetings, constituent to each that more With that innovation. access manufacturers, consumers enhance optimized on both pharmacies, is pharma consumer health ways and patient enhancing I meaningful professional recognizing aligning solutions building technological the distinct and audiences. it prescription care momentum brand economic on all

to the GoodRx coverage deliver professionals, save, affordability, insurance health consumers and proposition in care easy Consumers design. are inevitable save and plan value within For friction part is benefit. nearly to why trust and caregiving and million medication, million a investing clear. of XX when as used GoodRx X their care XXXX. making complementing of reinforcing both the points it partners it for is easier And us to health seamless time it to growing and we tools is GoodRx improve filling for essential clarity the filling and That and makes simplicity. workflows, experience. The our people our money in over professionals gaps outside by insurance and in consumers,

prices, complement of that to friction, anyone's in. indispensable world on simple. and medication This that firsthand. health access The insurance where one retired care a substantial, once co-pay. forced multiples and model, awareness, transparency costly in a and favorable our universal When uses GoodRx, brand consumers, excited are $XX he his lead opportunities broader better providers now multiple and research more GoodRx seldom My make are we a insurance strong comes ecosystem. be environment a believe They've are we on insurance and access And reduce with a to saving center and Thanks change challenge cost over My one. more an him access $XXX. which will providers, benefits his is make ahead and regardless seen as father-law, is our it or he the medication prescriptions, to now scientist where had to affordable for professionals and income operating that system impact. insurance. The great from in-law's most for was college improve We to changes challenged than regulatory parts nearing proves $XX reach were and a refer higher potential the needs were a truth. of GoodRx benefit highlights options. Our this to saving medications expand one experience professor the easier in most XX% lower GoodRx medications to coverage. grow I'm we

offerings. Now let's dive into manufacturer and our solutions prescription marketplace

market reflected used medications. the in have million In needed, which XX the company's in $XX nearly growing XXXX, marketplace is been million XXXX, almost billion That's more prescription more never share. on and X solutions than GoodRx. scale Our almost consumers saving their

this the pharmacies' period partner XXXX GoodRx's economics, of is with quarter, driving reimbursement, to and the segment prescription share around profitability was reimbursements, X% of drug the for in We fourth and that to pharmacies challenges up in through platform leading per solutions. pricing lower the in cost-plus XX% we're combination of partners over XXXX. solve costs grew estimate script business results. in discount not coming closely they at brand a aligned reinforcing rising savings. GoodRx year-over-year of our same partnerships and real store our help expense compared but innovation, the position book as Our our January And technological face medication

As also prescription transaction deep incremental retailer over pricing with of annual estimated driven on incremental one an contributing engagement million margin revenue. GoodRx while $XX them example, major has for

frankly Our originally in. stronger outside than retail is I looking thought value from the to proposition

terms that can opportunity, capabilities workflows believe costs, labor engaging pharmacy delivering significantly reducing has experience, pharmacy GoodRx digital I In improving an technological the enhance of experience. and and streamline consumer

works savings but on brands or Now covered expand our to primarily today, ISP, pivoting health that program, wrap program. seamlessly complement integrated which noncovered their a generics working to our ISP to insurance. through ISP to with are we integrated consumers provides

manufacturers. of for professionals, They gaps, consumers, PBM we are never filled, ISP pharmacy and economics the of managers helps a and consumers benefit in pharma new a turn prescriptions understanding XX% creating deep bridge clients care and health win-win of Given brand have coverage mutually serve. wrap

a an funded gaps payer I and whom taking their of already integrated and have solve are where the message longer relationship. answer, benefit am own. to I Sophisticated the integrating is those clients cash are consumers, prescribers to with We pharmacists broker top and already on believe left GoodRx no demanding experience this and every coalition

is our offering. medications. to solutions brand a than GoodRx pivoting to more advertise manufacturer just Now place

are coverage manufacturers, administratively becoming point pharmacies, the gross starting lower rising for are The to inefficiencies, pharma to access. confidently ecosystem net for medication burdensome for of and for We health many professionals full prescribe. drug consumers brand brand reduced medications is for costs care reimbursements

coming We manufacturers XXX their with Access in continuing Point-of-Sale XXXX our the more and we XXX E-commerce Integrated Brand to plan and years. We avenues: help serve this Solutions. Solutions, X months in Programs patients main of pharma over have Discount from number and through grown and on grow the XXXX revenue work brands growth in

Let's hit these. of each

Solutions. on affordability Access to drug manufacturers GoodRx's programs. a enroll This to co-pay or We brand brand First, directly typical co-pay of card X consumers page, a our pharma volumes programs has high patient which download of patient support XXx qualified Integrated the traffic support price allows in service website. and

prices Xx point-of-sale ended priority, medications. in the XXXX. new spectrum, discount and XX those Second, Point-of-Sale and and with Programs we key mature for program a We footprint exclusivity. is the we who've nearly number brands our across signed including cash our year with generate began clear the Brand brand brands, even clear lost opportunities brand Growing Discount affordable have brands,

potential solutions to the about critical are growth a these see their driver. We enthusiastic be of and major progress

market. earnings Infrastructure control over-the-counter last our an incremental pill, addressable on entry E-commerce the Opill, call, our that into talked marking about with we we Third, launched first birth our

allows whether more better from also a of Our secure pharmaceutical integrated not e-commerce delivery a to capability us of in of fulfillment believe Rxs its to platform we portfolio prescription platform, was One new-to-brand flows direct-to-patient here. Overall, of home saw to across or drugs clear choice, last virtual significant pharmacy and do October. visit, a can Pfizer their QX, its brands our for to shift reversing platform the is the point-of-sale GoodRx one terms professional of price at manufacturers vaccinations it solutions. GoodRx launch an health example top entire their share. broader hormone decline prescriptions scheduling only increase care cash into built partnership allow a in seamlessly We the on with of large their number in therapies partnerships menopause we is market X-year from filled, there's and pharma much a media-based but set a integrate

and enhance [ medication I value areas an winning opportunity see win we of with align GoodRx. There sustainable are have value access, X will key Turning to create entire chain. across These partnerships broader opportunities the future our that towards help long-term to growth. where deepen and are where ] strategy drive the

program over that access met on an we several on shared pharma scratching the every brand ensure platform. manufacturers we've affordability brand provide medications. strong now, XXX First, Having and brands, we brand where the are now is we partnered to surface. want with Right extremely validated results, but GoodRx We value team. that we've to believe just with available proposition

we improve on health the can consumers. the help strain care our GoodRx and There's help prescription consumers, prescription lot profitability pharmacists. modernize as innovation at to shared the counter, of drive and see remove in friction and experience experience. professionals pharmacy pharmacies Pharmacies an ally, a clearly want we and Second, serving

keeping uniquely Third, is face. patients role a the to office out GoodRx a and play the in go-to-market therapy, we Physicians help and remove friction to prescribers prescriber's as build other key positioned want their they on channel.

into doing the how focused are we exceptional determining leader. Fourth, area company GoodRx believe We expand have need several throughout teams the one be in already, this pharmacy work to best to on these more, doing we efforts and I benefit integrating under and executive I'm ecosystem.

drug meaningful plan to Our specialty deliver there program membership, an and its By is broadening is for and deeper believe and generics, and and we savings savings impact. already reach across savings expand opportunity integrated brands driving can consumers sponsors, we scope drugs.

I'm intrigued quarters. that around we forward direct real-time updating to we'll make by employer to on explore. In delivery addition, all begin the programs, and you priorities on opportunities benefit several of other these progress next the look I over check

call and companies. during care most CFO, functions. guide why GoodRx equipped our Scripts words years discuss has the I'm I of CitizensRx new across advisory and to and legal Chris He health he over phase the number is his help I'd of strategic, industry a the outlook. team. of development McGinnis, to financial served the operational, working CEO few about turning corporate for tenure through over, next the privilege has Before had it that, welcome health and and to of growth. With I'll as Express like alongside care excited over in turn XX held our Chris to know him Chris of uniquely Chris experience its to recently at say to a and leadership roles results

Christopher McGinnis

Wendy. you, Thank

to I take I GoodRx long joining our decision guidance, results space pharmacy XXXX me. and the I why to a point consumers time, was for getting like financial that the for right you pain moment the medications. in to review talk face to Before in understand would Being about their access a

continue defense pharmacy many more relationships a solution and also to I participants, enabling core complementary adherence the insurance, access, could consumers, reduce simplifying too all ecosystem transact its far managers can that for because what GoodRx health not excited for price. Perhaps I had step all its leverage at enhance pharmacy prescriptions this drive poised addressed. phase GoodRx to fill it across Pharmacy solution So line pharma to and retailers. is deepen in educate, a the of company towards go the is benefit manufacturers, I saving GoodRx That's professionals, that drive care easily and process is unfilled and while consumers money of affordable to it can I medication. I joined GoodRx joined for working is, care I and seamlessly be. be so, of what where for believe friction, set a can and on GoodRx is previously, the next privilege health believe leader prescriptions with be execute an managing joined reasons to our capabilities, benefit broader she the and of leadership to Wendy more the to should right of company, team. I the to part be on first

XXXX. to turning financial the Now full quarter for year fourth results and

in a year $XXX.X resulted EBITDA a adjusted $XXX.X fourth a EBITDA in at of in contributed expected revenue the the was prescriptions full XXXX program Full million, X% was in up to in million revenue declined adjusted XXXX was constitutes and On revenue X% X% Pharma Solutions $X.X with grew year from to Drilling For quarter, over basis. million, income of was XXXX. on which $XXX.X $XXX.X other year-over-year financial consumers. Subscription million. $X while balance, XXXX, was year-over-year. With XX% transactions revenue performance a million, came monthly was XXXX. sunset $XXX.X loss million This million, year million That net up $XX.X financial latest retailer-specific the XXXX. XX% in compared adjusted line than down due increased due income $XXX.X $XX.X Manufacturer in to on largely million in revenue, respect primarily guidance. of million, data, million, XXXX. increase July GAAP it program to million revenue X% substantially full company's XXXX to our savings in of more $XX.X which net net did to up active prescription growth $XXX.X which approximately was year-over-year to

of adjusted on margin expansion primarily basis. was margin pull-through adjusted XXX As from XX% year. another revenue Solutions to margin improvement ago, increased annual grew marking I basis of Manufacturing an in driven savings a XX.X%, year-over-year, while significant year-over-year points Pharma by and VitaCare run EBITDA The moment EBITDA restructuring was year offering stated year-over-year quarter every from Adjusted EBITDA rate to our growth XX.X% line prior in QX top from of the the sequentially XX.X% QX. in XXXX up

million was $XXX.X activities sheet, of operating outstanding in $XXX.X compared to hand net continue generating a XXXX $XXX have for $XXX.X balance XXXX to of million debt. cash million XXXX. from strong million We Ending with in on cash

revolver at of in had total million capacity $XXX unused end million resulting million. $XXX liquidity $XX.X Our XXXX, of of approximately the

and to outlook of to GoodRx. outlook our Turning I clear the providing are for about the XXXX. market committed expectations financial Wendy with

are to we where Given we we ranges within room taking that limited time to clarity. our our a have here, greater gain allowing approach disciplined adapt as we guidance, ensuring conviction provide ample while visibility

be XXXX, revenue approximately midpoint to which $XXX in the range. For we full $XXX to range million, of the the year of expect growth X% at of represents million

We of expect revenue context, at to be $XXX million, to of XX% at million QX. we for approximately to XXXX million, EBITDA be first at the with range. With the which growth of represents year-over-year Furthermore, million consistent adjusted midpoint in $XXX range the in to we XXXX, expect of approximately relatively representing of expect growth be $XXX midpoint. EBITDA X% quarter adjusted range the in that to the X% the $XXX margin

expectations full trends reflects Our the underlying annual QX growth outlook is guidance. same directionally our aligned driving and our with year

for operating call in while partnerships. exemplified I'm growth and by helping that, for excited I flows. company growth turn XXXX, and significant Wendy cash avenues lot the to enhancing to pursue There the of solve adjusted a GoodRx solid I has to questions. believe runway. forward several and over progress access the our future profitable made points discussions. With pain medication highlighted, operator consumers, to As deepening EBITDA about look XX% GoodRx, I'll in are

Operator

with going line [Operator Gill First from the of come question Lisa Instructions] is to JPMorgan.

Lisa Gill

specifically, work initiatives ISP the you just and what about back, with manufacturers, in to has Can about cetera. talk Wendy, about wanted with a both Wendy you ISP start really Welcome the when It's couple you new nice focus things. retailers, on there the Chris. guidance? And think to talk continue you different I and a 'XX? lot et talked of can just again. are consumer, experience how many maybe wrap, initiatives the about with is talked we you also of in about those been expectation included what guidance and for to

Wendy Barnes

Sure. from here. I excited on to Lisa. you, team the Chris Thanks, am and have equally Good hear too, to

pertain Chris as me let So former full those would outlined, the -- to you've heard as broader in the does a kind and brand to manufacturer us programs of pertains the they part is we're your expansion both start how which the the general there, that in growth account of thinking guidance. overall expansion, fair bit. question, XQ the which of for it as Look, opportunities specifically year about set well marketplace with and say some as talk about that I on

for. that certainly So is accounted

additional beyond I this do years well Although we over that having there's there that, referenced a year. bit opportunity into to which future said through carrying think time, considerable

specific to particular, proud I improved say for our most their a with think we we're And wildly is I that is just retailers, pressure ongoing which partnered will is for our know of XX% legacy showing fact pharmacies am perhaps allied evolution that enhance point. critical transition about to As about the area an the the where we are company. I programs is started pharmacies has it ability been year-over-year of year-over-year. we're margin in Being we and certainly And the that not that that retailers considerable on the growth. just pertains of profitability excited to

both also aspect partnership outlook. key as the well a is retailer as the year talked in so that about, growth quarterly of And the outlook full the we've

our top top Lisa, a say have more out, general, a that, heard we it has mention to HCPs in runway pertains good while that continued there of of would the at to me know I XX% the HCPs drive that you call. flesh volume. we decile of lot a to As bit candidly,

and at think We a have can know. I we we're we actually HCPs. it do the as guiding But pertains years to more lot that months to present, over what coming

of that, continue of those your So wrapped are that the there's know we heard competitive. underscore I make our idea cash price is us is traction into PBM we a question there. value generics fact, ton partners thus you far. To when numbers ISP, regarding that see that half more the solid to the sense think What their offering a second in

is engaged of program. noncovered wrap. And they, employers can runway, I partners with fact, add would another by with of conversation opportunity. facilitate also able making active good brands notable a with for that pressure be list. ISP work to without an specifically, the price. gap the say progress to and we untapped one think own biggest are employees we're that in close searching We fiduciary is I comprehensive ISP to onus more course, I we partners their candidly. are comprehensive that to brand number particularly actively partnership saying also area a go towards under on have We've providing integration most in had me, the We're interesting wrapping that there. putting think that given is believe, That other we're benefit PBM That, to having a a know I the to better

Operator

from question next to line the Ransom come going with is our of John RJF. And

John Ransom

is a Sol that don't name? your to about Pharma agree Manufacturing can terrible thinking anymore. Solutions, have we that Just use Pharma You Man

Wendy Barnes

team. agree High-five. you say actually on the Yes. I working marketing that with it but we're and with Yes, on

John Ransom

you XX% the was growth market. this At Day, by stand algo a Do XX% the was Analyst to still that?

Wendy Barnes

I longer. Pharma that XX% or -- still confident another in incredibly you've certainly we Solutions. into so in said what 'XX to were that, we the Xx which this know year a broadly, that, we on about deals I think XX% is leading buydowns cash But Manufacturer in 'XX upside that's XXXX. cycle mean that I around with, brand XXX brands those to look present, is growth what grown bit takes demonstrated think, more at we've sales do I'm and Yes. little XX for specifically brand well. at additional when these as you point-of-sale Having up from platform,

untapped about our particularly pages to alone. And then think that to see the we've pages the opposed an show their when manufacturers brand we've candidly Pfizer a and that those what comparatively, able us. And amazingly And say, Xx through I of early who the them partnerships their most of a the this for as good now manufacturers with me, brand.com got and repositioning part them. traffic these of drugs? to is we're took to to able validate exciting the to results, to XXx portfolio to opportunity able and produce that, types of well. are other that example we're we're to results say, why able we as around up that We broader we've bet open was been on know see partners we with us, show been for don't starting turn

bar going Thanks there. space, to a engaged the think is in I question. just for ROI to we're little said in we're that the more our So raising team and the this continue with invest to manufacturers simply, continue proving

Operator

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

Charles Rhyee

question Chris. really, if a Wendy, is working about can bit Great more a here. talk again, you to with ISP about Hey, little you be

sorry, I talking we more a to we were opportunity -- model formulary all obviously, other think of last PBMs. was drugs. Can partnerships spending while a on fully manufacturer wrap up, being about Because are do, right, an signed opt-in of in guess, understanding where ESI though and was solutions. like all here back, it out customers, you're message year was they kind and even rolled update give couple sort seems us the were And you was little for of employer or ISP that Caremark I rollouts? the year a and an our with an the and had wasn't that X it to and opt-out bit with not it those not time employers getting

role big sort trying the Just to where those of PBM ISP understand and the those sort partners sense in is programs of traditional plays with currently?

Wendy Barnes

question. that to Sure. Happy take

So there's and like offering, you right. question no the as you're Express partnerships the And go the and with think early any Scripts that absolutely concept original learn days. I you Caremark, in

in non-covered what I to the that we, While think, will that in that clients is the integrated discovered was we're that, we've solution turn, that large the going had over what provides certainly produce, anticipation for time and perhaps to much for aperture value that wrapping the mutually PBMs brands a larger convey serving through offering.

drugs more offering. And as that of at different too. the expanded we've of that in slightly at I the we're it So longer-term a opportunity additionally I to natural a angle, including program think it's from just it come type evolution as a been potentially look

we're Scripts to get that, Express with dialogue I actively before Caremark. expand note, So continuing also I and and should to

agreement dynamic have we to parties. both So them that that much it's conveying ensure this very to value a with is

which to question. working continue alluded also We believe, I with expand we're in who to, I Lisa's ISP,

So won't and I that. Having into repeat said credence deliver. of opportunity continue I can to what this a lot that, place

of turn, the XXX-plus for big If employer each PBMs. that back contemplate covered NDCs the you and it's about and for drugs X number the in beneficiary, aren't the just step typical

these that to to and insurance want answer nicely keep of to as clients, and be happy. continually that PBMs sits for a and lot will solution a there to offering. question need in them filling So complementing well, And want understand they that a adjacent pressure that. and keep they under They're

for specific economics ton would I ongoing favorable. And and conversations there. at it's drugs So of a is that a both of really matter parties, sense landing making PBM partners the upon make progress tone our these we're with say of

So these a programs. long-winded have They're of way, a saying I though. confidence lot I complicated think, of in

learning is bottom line the platform. still the and So growing we're

Operator

Michael Cherny of is with going the next line Our to Leerink question Partners. come from

Michael Cherny

itself a was Maybe, a over. used forward. Wendy, the of was of pharmacy little against you see do economics But preliminary earnings ability been call, the broadly. But to team continue term, what current I friend to changing landscape the has PBMs I you GoodRx's last Obviously, on with trying changed guidance of to build bit. and reimbursement the the on a are pull the it dynamics? think that terms about drive right push position pharmacies now? in changing potentially that to And going well management like how talking

Wendy Barnes

Sure.

me of sure relationships make of take let me between is, their and in your with the I we pharmacies with and pharmacies probably I PBMs a either of address that, -- pharmacies we've dynamic hybrid the how we we've their got work ongoing in a There behalf with with do ways go margin We Let to and that. possible. are on top go pharmacies, clients. grocery multiple be got with chain start essentially those one, fact, PBMs question. course, approach, that's and X could is try U.S., and those as of of the But and I And And XX. turn, work direct number something all PBMs. right? PBMs know perpetuity extract negotiations regardless But multi-PBM what don't or pharmacies negotiations or in the to hold as to much pushing on in of attempting to going margin I think between

pharmacies, And we've in with partnership us. partnerships any mentioned, previous to for and year. a specific know brand be point to are result do in we in that them of comment, billion an a drugs price up I that just able with of landing really some instances, our these that place I think, technological that target and of as to the a what to their given pharmacies. And candidly able those with is We're are for also both are in the buydowns augment are X Rxs who's there in over at sale. And is know seeing so we meaningfully exceptional profitability specifically consumer getting competitive as ability some insulation got we cash that, unfilled

again, is whether sale at and directly the of a those directly, ton the solution. well. counter consumer ability It's ISP as of pharmacy them engage it's aiding time directly with their service to to us pharmacies on saving with filled for at noncovered through ability the those so GoodRx that the drugs a And or point

those I areas that hitting guess of the pharmacies assist managed managed can't the those don't tools. say, tools do for And just we're fill PBMs to in insurance see don't to care we they that away. So or as to weigh right I upon otherwise in truly, like employ to care feel all really gaps intend bad candidly good, that on both to and going continue I

they're I The think the on that around and they're here of tools nicely top to is employing. takeaway fits GoodRx stay. that

Christopher McGinnis

the want that would the economic add I to your of model. sort to of Michael, -- to a friend that pharmacy, about being an and long-term relationship point we have aligned has

unfilled think gone scripts per think you'll that have have script we as And low our underwater I to either retail our make the pain partners money. they've think see particularly margins, so can had revenue their actually we some more points or of And we goes what or where up. ability around solve

things may even of our as on we rationalizing environment their footprint the some through at they and retail an initiatives on So of in because consumers strategic whatnot. manage where mild have around active going headwinds

grow out see the we'll actually for up, revenue go because will top is margin that or low-margin of but I per you'll to what the script some of our of scripts them may margin underwater mix. system, line continue think the fall

Operator

Singh next going is to Truist. come with line Our Jailendra the of question from

Jenny Cao

Wendy Jailendra Jenny bit growth your more little in capital priorities press Singh. color about more allocation on my I Securities release. on Truist is just investing profitable challenges for to a you just your talked from near-term curious on was and name Chris, in navigate

approach So to of acquisitions? any highlight? revenues you this customer areas would year, do contra ad as your health ] meta how strategy you about There's [ changes policy think in think And focus about and care? marketing particular the you

Wendy Barnes

start financial side with the side, can the I'll You take of and it. marketing

Christopher McGinnis

want I'm your Yes. answering to -- I make yes, I question. terms mean in just of sure

sort of in terms our terms allocation In of of priorities.

last this to yields peer generate relative a order cash dollar cash When to over business. years, $X.XX the on generate of flow. at the free look foremost, X flow invest I Obviously, we is at goes and we revenue a is cash set, free flow the we're probably in probably -- -- the somewhere of in we our think I free magnitude, that substantial. our First

some In around internally as our how invest little to a bit into XXXX of deploy that. Right initiatives strategic support will we'll terms of focused sort how a get bit a we we now, there. refocus see a think I of is what of more we

key we'll deploy back business obviously our cash So initiatives. supporting into

initiatives think where excess at, obviously, -- shareholders repo. of -- I that we're to cash. continue to I that, I form the back to absent return we'll think, in think given price But our deploy is to cash stock cash open strategic given especially

I authorized Board think we $XXX spend of have level. million at the

think little lean a we'll into probably So that bit. I

Operator

from come is of Scott Our next the question KeyBanc. with Schoenhaus going to line

Scott Schoenhaus

about traditional retailers the wondering, comments just your and them. and with of And breakdown hybrid the had that contracting, ideal the what's guys can can of is I'm contracting last be Wendy, you to it seems you optimistic where be year? savings you between that buckets? about by really the direct partnership where it really you're remind provide talking us the you then end think the And year, today, X mix do the PBM

Wendy Barnes

the Yes. question. Thanks for

Let me start with now. where we are

PBM say short of prefer. or it. XX So the through I hybrid. would top are We manner And work network, pharmacies That's is whatever X choice. really their long and are out is effectively what of that direct the remaining of of with pharmacies they our our that X the in either

how with you conversations have pertaining Here's "Hey, an always we'll hybrid? them interest do works. have it to, in So

accessing But breakdown can you here. extent PBM have not numbers they that of their If know with months pricing been in were having don't to interest, the I comfortable If happy XX you through are I it we're that way. Candidly, could same what up that direct." our that at this the pleased answer we those with which of but conversations don't the question. follow certainly we today. that our that had with today I you, What know working with But with point, I I've where with know personally, we're support they in tell to contractual ago all them relationship, that. the contract network important are retailers, and the do seem that's mechanism something is candidly pretty to top to

Christopher McGinnis

our the fact can patient would can only we mean, will have move Yes, the move get to in the access multichannel, to I pharmacies to to of that sure optimizing most have the model. somewhat to the it where mean We optimize I drive scripts we make irrelevant we best that they drugs. money around add. Scott, and their their want And to I ability economics. think again be right it's terms But overall align saves that around to the us. mix, partner. I where we're

Operator

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

Stanislav Berenshteyn

give answer quick you're on for channel But is the uptake the ones Kroger is us on you first an how Two Well, you're just update you early question to opportunity this maybe And know me. seeing any seeing returning. at adoption And adjacency. that for might could, the in here? longer. but consumer the be the compare it's bit expectations? point? does a I your I'm this Pets. launched just then curious what here, And GoodRx also, internal Can

Wendy Barnes

first you for there a the minute. out your part question? repeat I apologize. you of cut Can -- I couldn't

Stanislav Berenshteyn

Yes.

the to does just channel seeing give us Kroger how extent internal an that that you compare consumers returning expectations? the your here? On returning, update you're can on And

Wendy Barnes

and a say through shared specific little seeing I've Head Yes. specifically. I'm tell place. sharing numbers, about a we're of met There volume with say I Kroger you is is broadly, comment a personally fantastic both in nicely. will is engaged their the early what it's pharmacy. More without excited lot to improve I of that too opportunity would on. can I relationship

So a to feel second front more your sure we're just make like it good spot Pets? I part runway in was the question, of us. And in I'm with of clear,

Stanislav Berenshteyn

correct. Yes,

Just to the there? traction extent any that you're seeing

Wendy Barnes

would I say Yes. early. quite also too, that, is

what addressable see think to to this a Pets, for being won't our the really that in nice whom overall competitors audience, of market lot a continue is total the one, the target know are Pets I is But we as of very space. pets. just opportunity there We it come do makes surprise know have given many a group, which sense we that

what is this to that bullish be it, And on point at we to on meaningful driving to plan. too early reason, the comment for but so anything for continue us it's really as

Christopher McGinnis

at heavy. and as that life. younger a typically pays lot But I this have about their a have prescriptions -- What over the those meds, bring of aren't the as demographic that long -- long-term is meds though, we are having as they -- They -- of And people too, uncovered. brand pet they term. who pets all don't don't that like come strategy, place age, a point demographic in they value is to think, dividends name get is a a GoodRx uncovered the

Operator

Our Securities. question with the Steven Valiquette line Mizuho next of from comes

Steven Valiquette

new pharma were your any burner. the probably implications GoodRx administration move consumers, and digital regarding to pharmaceutical some guess on I policies and front manufacturer marketing mix to RFK to solutions biased just if has historical negatively views for the

just this I'm on any to thoughts too it's your to obviously, as but internal had you've discussions. curious early details, sure really So some high-level specific give get topic

Wendy Barnes

Yes. Thank you.

for care that, which I and/or not I medium. Having this engaged wondering have. to they which, just consumers. we're HCPs missed play that But health support on And for again, good utilizing would We help us audiences. our could platform, brand down quickly. know far, things -- changes both morning, compared I a was to marketing upon in just call. dollars clearly, so of and and excellent pharma it understanding TV through checked based has that and Xx last dollars typically main used we joking as XX say are those those policy those it could it advertising gosh, tailwind largely DTC a And moving Radio if pertains actually is speculation the engaging to this we're know heads being see I pharma to see them partner to through end potentially I'd an that, both Look, beyond be interest reach could we we said XXx with perhaps this the being pure up what hadn't platforms. generally. what in pharma I what my we be generally, lift hours was thus because through mean, focus forward, the preparing own But their redirected

them. we would had if pharma closed to off channel advantage again, take So a

Operator

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

Jialin Jin

there goalposts negotiations fairly the pharmacy. know near-term Can and Jay any due lingering kind on in Jin is the on headwinds mentions there? I for expecting Are to expand know impact pharmacy release. Previously, wide in in headwinds rate of for more I retail transactions are Craig. are are you reflected the still This XXXX? prescription closure you what challenges of And into some store

Wendy Barnes

we accounted store Yes. in 'XX plan, Thanks for Certainly, you've question. our which talk the heard for closures about historically. us

know. At store in any out somewhere. and Rite with have to X of going seeking are just to in at Aid times point, while we the specifically know to there consumer. closures, reengage store I expect where turbulence happen with What do this partnership those pertains that where is may that short-term with working may time we're be are we a ultimately scripts, around really are what we Aid. And plan or that it who same there Rite to may As mean, those scripts too ball up it's some another end those and script, same year, what soon not we understand things this jump patients already land are XX that cash

little with speaking, Rite a understand for really again, may may Aid. broadly us to So or happen it's early not what too just

Christopher McGinnis

I not of the monthly earlier, as in going revenue going accounted say rightsizing we're transactions fallout, would that for some sort guidance, into have But which our think we overall terms the prescription of are some our I the specifically. retailers I on to of is obviously, active from But through. consumers, headwind mentioned drill the

overall our I still XXXX. active based line revenue I grows revenue would mix our the so a on see but think will that headwind we on into prescription expect consumers, And transaction

of baked I I have. So in And probably up. there's consumers, think guidance on headwinds think I be the and revenue that's the we will range think, in, script that per terms of the

Operator

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

George Hill

Yes.

one Just there the pharmacy. is, on being number me. to guess, the a Are plans any X Wendy, ones following of theme kind of I quick very or for increase of friend renewing I engagement guess, to the explicitly number engagement could it what with XXXX is you the increases volume comment penetration two, from relates channel? And in in on independent as guide for Kroger? contemplated

Wendy Barnes

through question, in sense provided for any Thanks the focused company point cycle discussed say, price continue with but independents of of work also is with me and inclusive independents this with to lands I a manner, would and more start a little much the competitive. cycle forum we we that your open per number less intend let independents for to pharmacy, to offering a we general is, question. through are Script a the Gosh, really that perhaps actively fact, our expand that Script that consumer certainly in makes partnership. upon our in working in that within

I Head would to NCPA it. And open opening also say and is long-standing a relationship. a had extended the I've So always have with short conversation answer of whom with

your of as is repeat kindly question we'll really it answer to So you the [ dialogue short pertains half my continue that indies. ] Can second again?

Christopher McGinnis

Kroger volume. specific It's about

George, to talk you George. So Yes. good hey, to

don't back to We're going So online. on it volumes obviously, have not We retailer. you. break to expect out, for -- more we do come I volume by don't Kroger, specific

them, see that a with volume. think I direct we'll relationship having

on little so -- But revenue higher. just want I multi-PBM direct revenue coming direct overall channel prescription scripts overall contemplating headwind to on that's no network, the if I line. again, in in now think, I to -- relationships, say, think, again, about push XX% again, think them optimized be, will the our there's we're the volume volume route is I We coming back for more up drive think it a just to of us. our need direct. And think is mix. think of back that magic through And transactions can our I the I having multichannel bit I the if mix

Operator

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

Allen Lutz

follow question up XXXX. on the end around I market wanted in to Michael's in on the going of some changes

model of XXXX. introduced One partners that's in your a going out cost-plus pharmacy

Another XXXX is of where you're rate anything one XXXX, market? counter. maybe savings year turn insurance it you're in Is of that the type mix? drug different at as the seeing you're pharmacy whether you it's Or partners win X anything different the your the passing along seeing mix? your supplementing a changed really relates PBM coverage that's through kind into calendar just to XXXX rebate as of from months anything that end there in Has

Christopher McGinnis

don't Yes. I have data is Well, Allen. a drilled of I I know I'll basis X/X But what haven't in. I maybe tell our our X would here, say think that's we've volume ton cost-plus volume a -- what XX% I of into upwards on is already. you got of weeks that of

seeing the So that at a sort non-impact of we're is sort of impact moment. the of

of to we need strategies, I right? they I whether -- think, sale. margin the need whether again, out store we that's they rationalization, it's and as need a healthy retailers So need implement renegotiations environment, their with be to -- mean, seek point retail PBMs, fix to at go

be us, to long-term an for partner so want to aligned And we that.

Getting kind mix of give I changed, of to higher. our healthy in a as you'll we really think driver extent this about part any little model, need I can environment. And can't the terms we retail of and in specifics of we the I details you that see headwind better But share an the aligned I a view why talk pharmacy, into that, what's believe be when that. cost-plus the modeling. of economics revenue of creates So model, cost-plus the on that's friend don't the

Operator

Citi. last Higuera to come the line our with Luismario And question is of from going

Luismario Higuera

so? to on This do the next or supply currently that you question with is My Grosslight. Luis how year constraints appears for are on GLP-X you is GLP-X are Daniel How And easing GLPs. this over expect It evolve working up. manufacturers?

Wendy Barnes

appreciate Sure. I question. the

a payers with because wrapped of start it they worse to just to hasn't of retrospective group, we couldn't XXXX kind health instances, utilization, Through changed. tried increased it. afford In comment just research macro XXXX. economic by couple on into interestingly, on. they gotten then and coverage me up actually our items And cover many Let despite it's a

stopped employer or after cost either health they it a so covering And an their as overall hammered plan. it

XXXX. What the traffic to of these and we coupon manufacturers for approximately GLP-Xs our same partnered total, X expanded site, we've support through just the own with X with QX; doing in indications end that of million juxtapose number is million are co-pay now So and GLP-Xs, we're for their manufacturer looking seen to at in program. of already consumers pricing

of we're sale. So an comes to our point to competitive that Xx door, through to truly around manufacturer's a today. Having previously with as my front door mention someone said opposed XXx there partnership price that pharma lift front the when get the doing opportunity in cash at remains that,

obtain so, to probably is one And manufacturers don't today. active where have in We why are think dialogue We the market aware that of that. today. given are is I keenly

only notion a we be and opening it. working push going branded a the stable. think, ability of something matter that this decrease. And continuing have to of should we these to to cash concrete not continue the course, buydown, negotiations I not the we're supply are compounder's the than fact, in believe these for is with supports point-of-sale if is, that aggressively able at solution is increase, And the demand given government, bigger and supply point, stable ever brand cutting the it's when, now they're in Therefore, molecules. to to off get

Christopher McGinnis

this thing What relative in it's PBMs, mean, to with I all most whether been where the all is, ecosystem, across we've with I our it's is the would Novo, a one the elevated model. has across would business me Yes. about actually, to of -- whether the really Lilly The That's discussion and I think, what Pharmacy past. No. talked that an Wendy of inside the manufacturers, relationships discussion these been mean, say table really has is everything I I obviously, today. whether it's excites really of retailers, is the add conversations brought elevated, the it's microcosm

more term top-down think which I longer think, I positions discussion, is becoming us of a is well. very

Operator

to hand Ms. back I to And closing now would like Wendy Barnes you. the remarks. Thank for conference

Wendy Barnes

saving we removing use friction the look with value a a all that much. Health calls so see you quickly to and of We questions. you. I'd everyone care in to Americans' their to many and Thanks are being PBMs, lastly, of ecosystem themes necessary integral one, of insurance ourselves Pharmacies, and of each insurance. fill money Thank medications; two, are valuable today all cover. complement and partner just truly gaps follow-up thoughtful as the simply We when that Professionals doesn't day filling today those and in insurance we're us to and to with and GoodRx: to Manufacturers; us for to for every are regarding truly forward the time the X close we like with

our I forward and joining of on out excited really how future potential this am about for calls. you GoodRx, long-term close me today. growth Thanks progress updating I'm incredibly to looking during all Let saying by of the us

Operator

conference concludes you participating. call. Thank today's This for

have You a may disconnect. day. Everyone, now great

GoodRx (GDRX) 27 Feb 252024 Q4 Earnings call transcript