GoodRx Holding Inc. shares received a boost from the strong revenue the company reported in its preliminary fourth-quarter earnings.
The Santa Monica-based prescription drug discounter reported on Jan. 10 preliminary revenue of $196 million for the quarter ending Dec. 31, compared to revenue of $184 million in the same period the previous year. It did not include net income and earnings per share information in the preliminary results.
The results were announced before the market opened. The stock closed at $6.47 that day on trading volume of 7.8 million shares, the third largest volume recorded in the past year and a 13% increase from the previous day’s closing price of $5.71.
The shares continued climbing in the days that followed, rising by nearly 2% to close at $6.57 on Jan. 11 and then by another 1% to close at $6.64 on Jan. 12.
The company’s shares closed at $6.50 on Jan. 18.
Karsten Voermann, chief financial officer of GoodRx, said that he was encouraged by the preliminary fourth-quarter results and the progress the company continues to make against its priorities.
“There is exciting work underway, and we expect to build on our accelerating momentum in 2024,” Voermann said in a statement. “While our line of sight into the first quarter is limited being only a few days in, we’re pleased with our initial trajectory. Based on our expectations today, we’re confident that first-quarter and full-year 2024 revenue and adjusted revenue will grow mid-single digit percentages year over year.”
The company expects that adjusted revenue will equal revenue in the first quarter and the full year, it said in a release.
It is also confident that the adjusted earnings before interest, taxes, depreciation and amortization will be in the high 20% range for both periods, Voermann said.
“We look forward to providing first-quarter and 2024 guidance on our fourth-quarter earnings call in February,” he added.
For the full year, GoodRx is expecting revenue of between $749 million to $751 million, with adjusted revenue in the range of $759 million to $761 million.
CVS deal
GoodRx shares shot up last summer on news of a deal with pharmacy benefit manager giant CVS Caremark.
The deal with CVS Caremark, which is a unit of Woonsocket, Rhode Island-based CVS Health Corp., is a major milestone for GoodRx. When combined with a previously announced deal with Bloomfield, Connecticut-based Cigna Group’s ExpressScripts, GoodRx will have direct access to roughly 70% of consumers wxho obtain prescription benefits through their employers, according to Scott Wagner, interim chief executive of GoodRx.
“Through this program, patients don’t have to choose between using their pharmacy benefit or using GoodRx to save on their prescriptions – now they can do both right at the counter, so they have confidence they are always paying the lowest available price,” Wagner explained in the deal announcement.
GoodRx’ share price shot up 35% at the end of trading on the day following the July 12 announcement of the deal with CVS Caremark.
Business Journal reporter Howard Fine contributed to this story.
