Our enterprise is ‘rock strong’ and solely getting higher
GoodRx co-CEO Doug Hirsch expressed confidence Friday within the firm’s outlook, telling CNBC that current acquisitions will assist it increase its enterprise choices because it approaches a post-pandemic health-care panorama.
A day earlier, GoodRx reported a 20% enhance in first-quarter income, which rose to $160.4 million from $133.4 million a yr earlier. Web revenue got here in at $1.7 million, down sharply from $27.3 million in web revenue in Q1 2020. Nonetheless, the corporate — which provides prescription drug coupons to prospects — mentioned the newest determine was impacted by $46.5 million in stock-based compensation bills.
Shares of GoodRx had been up round 10% on Friday.
“We’re transitioning from the Covid disaster into the opposite health-care disaster, which is that folks merely simply can not afford their care,” Hirsch mentioned in an interview on “The Change.” “We really feel like our enterprise is rock strong and simply getting higher.”
Two current offers enhance GoodRx’s place, Hirsch mentioned. The primary is RxSaver, which additionally provides customers prescription coupons. Hirsch mentioned that acquisition — reportedly for $50 million — brings in a “complementary enterprise to ours.” It additionally gives advertising and marketing benefits, he mentioned.
The opposite acquisition was HealthiNation, which makes informational movies on well being matters. The content material is created by docs and health-care professionals, Hirsch mentioned. Whereas GoodRx has had academic content material for years, Hirsch mentioned it primarily targeted on the written phrase.
“A number of shoppers like to observe video,” he mentioned, including that it additionally permits GoodRx to promote promoting to producers to herald income. “It is a win-win for everyone.”
Earlier acquisitions made by GoodRx embody telemedicine supplier HeyDoctor in 2019. The corporate rebranded it to GoodRx Care in March.
Regardless of its constructive transfer Friday, GoodRx’s inventory has struggled to realize traction because the firm went public in September. Its IPO priced at $33 per share and closed its first session at $50.50 apiece.
The inventory traded round $31 on Friday, placing GoodRx’s market cap simply above $12 billion.
Competitors from a lot bigger rivals — Amazon, particularly — is a serious concern for some on Wall Road. For instance, in November, GoodRx shares plunged 22.5% in a single session after the e-commerce behemoth unveiled plans for Amazon Pharmacy, which represented its most vital transfer into the house.
Hirsch has downplayed the menace Amazon poses to GoodRx, which he co-founded in 2011. “Individuals understand it as going head-to-head with us, but it surely’s not,” he informed CNBC in November.
Of the 9 analyst outlooks accessible on FactSet, just one has a promote ranking on GoodRx’s inventory, whereas 4 have purchase rankings. The opposite analysts charge the inventory a maintain.
Hirsch doubled down on his upbeat outlook Friday, saying, “Put the markets apart, as a result of our enterprise is each sturdy and extremely predictable.”
“The general public who use GoodRx have continual situations, so that they’re taking prescriptions on an ongoing foundation. They’re exhibiting up at that pharmacy each month. Now we have a really dependable income stream, and once more, we’re opening up new income streams and new methods to speak with shoppers, as nicely,” he mentioned.
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