GoodRx Shares Fall on Outlook Cut, 3Q Sales Miss

By Dean Seal

Shares of GoodRx slumped after the company cut its annual revenue outlook and logged lower sales in the third quarter than analysts had been expecting.

The stock was down 23% at $4.22 at noon EST on Thursday. Shares are now in negative territory year-to-date.

The digital healthcare platform said it now expects $742 million to $748 million in revenue for 2023, down from its previous guidance for $750 million to $760 million.

For the third quarter, GoodRx posted a loss of $38.5 million, or 9 cents a share, compared with $41.7 million, or 10 cents a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were 6 cents a share, in line with the consensus estimate of analysts polled by FactSet.

Quarterly revenue slipped to $180 million from $187.3 million in the year-ago quarter, below analyst projections for $188.5 million, according to FactSet.

The miss was attributed to a $10 million contract termination payment the company had to pay a client during the quarter, which was recognized as a reduction of revenue. The decline was partially offset by organic growth in prescription transaction revenue.

Write to Dean Seal at [email protected]

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