GoodRx Shares Tumble As FY22 Guidance Hit By Grocery Chain Prescription Dispute

GoodRx Holdings Inc GDRX shares fell after it expects FY22 revenue to take a hit due to recent actions by one grocery store chain that represents a sizable chunk of its grocery prescription business.
The company disclosed that it is unlikely to achieve its full-year guidance after a grocery chain stopped accepting discounts for certain drugs.
In its Q4 earnings report, the company projected revenue to grow 23% in FY22, on top of FY21 sales of $745 million.
"We recently recognized a grocery chain had taken actions that impacted acceptance of discounts from most PBMs (pharmacy benefit managers) for a subset of drugs," said Trevor Bezdek, co-founder and co-CEO.
"This impacted the acceptance of many PBM discounts for certain drugs at this grocer's stores, which affected many parties, including GoodRx," Bezdek added.
GoodRx estimates the grocer issue could cost the company $30 million in revenue in Q2 and now expects Q2 revenue to be about $190 million, well below the Wall Street estimate of $215.6 million.
GoodRx also expects Q2 adjusted EBITDA to be impacted roughly dollar for dollar by the revenue shortfall.
GoodRx reported Q1 sales of $203.33 million, up 27% Y/Y, beating the consensus of $200.4 million.
The company reported an adjusted EPS of $0.10, beating the consensus of $0.08.
Price Action: GDRX shares are down 27.80% at $7.76 on the last check Tuesday.

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