Prescription Drug Discount Provider GoodRx Expects To Build Momentum In 2024, Stock Soars

GoodRx Holdings Inc GDRX provided preliminary Q4 FY23 revenue of $195 million-$197 million, up 6%-7% Y/Y, versus the consensus of $190.77 million. The management guidance was $188 million-$194 million.

The Q4 adjusted EBITDA margin is expected at the upper end of the previous guidance range of mid-to-high 20%.

The company expects FY23 revenue of $749 million-$751 million, down 2% Y/Y.

Adjusted revenue is expected to be $759 million-$761 million, down 1% Y/Y, versus management guidance of $752 million-$758 million and the consensus of $744.26 million.

Adjusted EBITDA margin for FY23 is expected to be at the upper end of previous guidance of a high 20% range.

Fourth quarter revenue and Adjusted Revenue outperformance relative to November guidance was primarily attributable to higher growth in Prescription Transactions Revenue reflecting stronger seasonal respiratory illness impacts, milder weather conditions, and quarter-specific favorability related to certain client contracts.

"There is exciting work underway, and we expect to build on our accelerating momentum in 2024," said Karsten Voermann, Chief Financial Officer. "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, and Adjusted EBITDA Margin will be in the high twenty-percent range for both periods."

Price Action: GDRX shares are up 14.10% at $6.15 on the last check Wednesday.