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GoodRx Posts 42% Revenue Growth in 2020

Santa Monica-based GoodRx Holdings Inc., which operates an app that allows consumers to comparison price shop for prescription drugs, on March 11 reported  a 42% jump in revenue for 2020.

But the company’s second quarterly earnings report since going public in September showed a $294 million loss for all of 2020 as GoodRx made massive one-time IPO-related payouts totaling $396 million to its co-founders and co-chief executives, Trevor Bezdek and Doug Hirsch. 

The bottom line also took a hit from a one-time $42 million charitable contribution that GoodRx committed to as part of the IPO. The charitable organization receiving the gift was not disclosed.

Taking out those one-time payouts, GoodRx posted adjusted net income of $133 million for 2020 on revenue of $550.7 million. That compares with net income of $66 million for 2019.

“2020 was a challenging year for all of us, but GoodRx rose to the occasion, delivering new and improved health care services when people needed it the most,” Bezdek and Hirsch said in a letter to shareholders containing fourth-quarter and full-year earnings results.

For the fourth quarter, GoodRx reported a 36% revenue surge to $153.5 million compared to the fourth quarter of 2019. But the company posted a $298 million loss for the quarter, again due to the payout to Bezdek and Hirsch – $285 million of which came in the fourth quarter – and the charitable contribution. Adjusted net income was $32.2 million for the fourth quarter, up 40% from the same quarter in 2019.

The company reported that during the fourth quarter its monthly subscriber base rose to a record 5.6 million, thanks in part to the acquisition of prescription plan manager ScriptCycle.

Bezdek and Hirsch said in their letter that revenue from drug manufacturers grew four-fold during all of 2020 and that it was continuing to scale up its telehealth offerings as it absorbed its 2019 acquisition of HeyDoctor.

GoodRx shares dropped nearly 5% in after-hours trading from its March 11 close of $43.59.

Howard Fine
Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.
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