GoodRx shared its first full-year earnings since becoming a publicly-traded company this week, boasting substantial revenue growth and increases in its membership.
The prescription price comparison platform was able to make these advancements despite pandemic-related care deferrals, skipped medication refills and an “unusually weak cold and flu season,” according to the shareholder letter.
Closing out 2020, GoodRx brought in $550.7 million in revenue for the full year, representing a 42% increase from the year before. For the fourth quarter alone it had a revenue of $153.5 million, up 36% from Q4 2019.
The company’s revenue was primarily driven by prescription transactions, which grew 26% year-over-year in Q4 to equal $131.3 million. The growth was due to increases in monthly active consumers, which reached 5.6 million.
While revenues were up, the company took a hit in its GAAP net income. It lost $298.3 million in Q4 alone and $293.6 million for FY2020. The losses were attributed to expenses related to its IPO.
“Again, this is primarily due to stock-based compensation expense and related payroll taxes of $297.8 million in the quarter, $285.3 million of which related to a non-recurring co-CEO grant made at the time of the IPO and the non-recurring $41.7 million unrelated to the stock donation,” Karsten Voermann, the CFO at GoodRx said during the earnings call.
This is compared to 2019 when the company had a full-year net income of $66 million.
The adjusted net income for FY2020 equaled $133.3 million, a 60% increase from FY2019. The adjusted EBITDA was $203.4 million with a margin of 36.9%.
Between a number of new products released related to the pandemic and its IPO, GoodRx had a busy year.
In March, when telehealth began to take off nationwide, it rolled out a telehealth service price comparison tool. Not long after, it also launched a lab test price comparison marketplace to help consumers find the best price for tests ranging from STIs to COVID-19.
Then in August, GoodRx filed to go public. At the time, the company shared it had a net income of $55 million for the first half of 2020.
Wrapping up the year, the company expanded its telehealth services, which were initially introduced in 2019. The new program allows GoodRx Gold members to receive discounted telehealth services and get prescriptions mailed for free.
GoodRx anticipates Q1 2021 revenue to fall between $158 million and $161 million, representing a 20% increase YoY. For the full year, it projects a 35% YoY increase in revenue of between $735 million and $755 million.
Co-CEOs Doug Hirsch and Trevor Bezdek view the year as “a massive opportunity to bring more value to our consumers at each stage of their healthcare journey.” The backlog of care from 2020 will likely present circumstances for growth, according to the shareholder letter.
ON THE RECORD
“This is a scale platform with a rare combination of high growth and profitability,” Voermann said. “We benefit from a strong brand, first-mover advantage and a decade of experience in relationships that benefit all key stakeholders in our ecosystem. And we believe we’ve only just begun to scratch the surface of a massive market opportunity.”