GoodRx Holdings, Inc. Q4 FY2024 earnings call

Management Statement and Operational Highlights

• Wendy Barnes' Focus: Priorities in first two months included understanding business capabilities and meeting partners across the pharmacy ecosystem. Highlighted progress in prescription marketplace, ISP, and manufacturer solutions.
• Key Opportunities: 1. Ensure all brand affordability and access programs are on the GoodRx platform. 2. Help pharmacies improve profitability and innovate the prescription experience. 3. Build out the prescriber's office as a go-to-market channel. 4. Expand GoodRx into the pharmacy benefit ecosystem.
• Chris McGinnis on Financials: 2024 full year revenue was $792.3 million (6% YOY growth), adjusted EBITDA $260.2 million (20% growth YOY). 2025 guidance: Full year revenue $810M-$840M, adjusted EBITDA $270M-$286M; Q1 2025 revenue $201M-$205M, adjusted EBITDA margin ~33%.

Segment Performance

• Prescription Marketplace Solutions: In 2024, nearly 30 million consumers used GoodRx, saving nearly $17 billion on medications. The share of the prescription discount segment grew 3% year-over-year in the fourth quarter. Partner pharmacy profitability in their book of business was up over 20% per script in January 2025 compared to the same period in 2024.
• Integrated Savings Program (ISP): Primarily covers generics, with plans to expand to non-covered brands via the ISP wrap program. 28% of new brand prescriptions go unfilled, and ISP wrap helps bridge these coverage gaps.
• Manufacturer Solutions: Revenue increased to $107.2 million in 2024, up 26% year-over-year. The number of brands worked with grew from 150 in 2023 to over 200 in 2024. Avenues include integrated access solutions, brand point of sale discount programs, and e-commerce solutions.

Guidance

• Full year 2025 revenue expected in the range of $810 million to $840 million, representing ~4% growth at midpoint.
• Full year 2025 adjusted EBITDA expected in the range of $270 million to $286 million, representing ~7% growth at midpoint.
• Q1 2025 revenue expected in the range of $201 million to $205 million, representing ~3% growth at midpoint. Adjusted EBITDA margin expected to be relatively consistent with 2024 at approximately 33%.

Risks

• Potential regulatory changes affecting pharma marketing and consumer access to medications.
• Impact of retail pharmacy store closures on script volumes and consumer engagement.
• Uncertainties in the rollout and adoption of new programs like ISP wrap and brand point of sale discount programs.

Question and Answer

Q: Lisa Gill from J.P. Morgan asked about new initiatives in guidance, ISP experience.

A: Wendy Barnes stated general growth accounts for some expansion in manufacturer programs, retailer partnerships are key, and ISP has solid traction with potential in wrapping non-covered brands.

Q: John Ransom from RJF asked about pharma manufacturing solutions growth.

A: Wendy Barnes said pharma manufacturing solutions grew 26% in 2024, confident in continued growth with 78 signed brands and 200 brands on platform.

Q: Charles Rhyee from TD Cowen asked about ISP rollouts with PBM partners.

A: Wendy Barnes said ISP is evolving, with ongoing dialogue with PBM partners like Express Scripts and Caremark, focusing on wrapping non-covered brands for more value.

Q: Michael Cherny from Leerink Partners asked about GoodRx's position against pharmacy reimbursement dynamics.

A: Wendy Barnes and Chris McGinnis stated GoodRx helps pharmacies improve profitability, with margin per script expected to increase even in retail headwinds.

Q: Others asked about capital allocation, Kroger channel, GLP-1, etc., with responses covering marketing strategy, Kroger volume expectations, and GLP-1 engagement efforts.