Q1 2025 GoodRx Holdings Inc Earnings Call and Business Update

Speaker Change: Ladies and gentlemen, thank you for standing by, and welcome to the Goodrx first quarter 2025 earnings call. As a reminder, today's conference is being recorded. I would now like to introduce your host for today's call, Aubrey Reynolds, Director of Investor Relations, Mr. Reynolds, you may begin.

Speaker Change: Thank you operator, good morning everyone, and welcome to Goodrx's earnings conference call for the first quarter 2025. Joining me today are Wendy Barnes, our Chief Executive Officer, and Chris McGinnis, our Chief Financial Officer.

Speaker Change: Before we begin, I'd like to remind everyone that this call will contain forward-looking statements.

Speaker Change: All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements.

Speaker Change: Including without limitation, statements regarding management's plans, strategies, goals and objectives, our market opportunity, our anticipated financial performance.

Speaker Change: Underlined trends in our business and industry, including ongoing changes in the pharmacy ecosystem, and the impact of our store closures and announced bankruptcy of one of our retail partners on our business.

Speaker Change: Our value proposition, our long-term growth prospects, our retail, our direct and hybrid contracting approach, collaborations and partnerships with third parties including our point of sale cash program and our integrated savings program, our e-commerce strategy and our capital allocation priorities.

Speaker Change: These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties, and other important factors.

Speaker Change: These factors, including the factors discussed in the risk factor section, [inaudible]

of our Anna Report on Tim Unformed.

10K for the year in December 31st, 2024.

Speaker Change: and our other filings with the Securities and Exchange Commission could cause actual results, performance or achievements to the firm materially from those expressed or implied by the forward-looking statements made on this call.

Speaker Change: Any such forward-looking statements represent management estimates as of the date of this call and you display any obligation to update these statements even if subsequent events calls are used to change. [inaudible]

Speaker Change: In addition, we will be referencing certain non-gabbed metrics in today's remarks

Speaker Change: We have reconciled each non-gotten metric to the nearest gal metric in the company's earnings press release which can be found in the overview page of our Investor Relations website at investors.goodrx.com

Speaker Change: I'd also like to remind everyone that replay of this call will become available there shortly as well. With that, I'll turn it over to Wendy.

Wendy Barnes: Thank you, Aubrey, and thanks to everyone joining us today. I've now completed my first 100 days at CEO and I want to share progress we've seen in the business, how we're strengthening our foundation and the opportunities ahead. Then Chris will take you through the highlights of our first quarter results in guidance.

Wendy Barnes: Since stepping into this role, I've dedicated my time strengthening our leadership team, gaining a deeper understanding of our business, meeting with key partners, understanding the macroeconomic environment, and identifying key capabilities and growth opportunities.

Wendy Barnes: I can confidently say that we are in a very strong position to deliver meaningful value across the pharmacy ecosystem .

Wendy Barnes: Furthermore, we are focused on high-impact initiatives that will drive our business forward in compelling ways.

Wendy Barnes: I firmly believe that our success starts with having the right individuals in the right roles, knowledgeable leaders who bring vision, expertise, and a commitment to our mission. I've made some important leadership changes to strengthen our business.

Wendy Barnes: In March, we appointed Aaron Crittenden as president of our Rx Marketplace. [inaudible]

Wendy Barnes: Aaron previously played a pivotal role in building our pharma manufacturer solutions business and has a track record of scaling partnership .

Wendy Barnes: In this new role, Aaron will focus on expanding Goodrx's presence at the pharmacy counter to streamline work flows, improve pharmacy economics, and ensure Goodrx is the first and best choice for consumers at the point of sale.

Speaker Change: He will also be responsible for expanding and reimagining how we work with PBM and health plan partners in an integrated solution to further deliver the value of Goodrx

Speaker Change: We also appointed Scott Pope, Farm D, as our chief pharmacy officer and head of clinical engagement.

Speaker Change: Scott will be focused on enhancing Goodrx engagement with all health care professionals or HCPs.

Doctors, pharmacists, supporting staff, and other constituents.

Speaker Change: Finally, we recently appointed Gary Klein as Senior Vice President of Government Affairs. Gary will be focused on advancing our government affairs strategy and strengthening relationships at the federal level to support our policy and advocacy goals.

Speaker Change: I am confident that our leadership team is well positioned to navigate the complex prescription medication landscape, position us for growth and deliver on our strategy.

Speaker Change: Our value proposition to consumers and HCPs remains strong. We help Americans save both time and money when filling medication, complementing their insurance coverage by bridging inevitable and growing coverage gaps.

Speaker Change: and reducing friction in the system so people can get the care they deserve. In the first quarter of 2025, over 12 million consumers and over 750,000 HCPs used Goodrx, demonstrating the strength of our platform and trust we've earned in the healthcare system. [inaudible]

Speaker Change: We continue to see engagement across all stakeholder groups, in particular. Pharmacies continue to actively partner with us to solve customer affordability issues while also delivering on their profitability goals. [inaudible]

Speaker Change: We see pharmacies responding with enthusiasm to our e-commerce offering, recognizing the value we bring the consumer experience.

Speaker Change: Informa Manufacturers continue to expand their portfolios with us, deepening our partnerships and reinforcing the strength and reach of our platform to deliver access and affordability offers to consumers for brand medication.

Speaker Change: These are powerful signals that validate our unique ability to connect and deliver value across the pharmacy ecosystem.

Speaker Change: I want to acknowledge the ongoing uncertainty in the macroeconomic environment driven by factors that could influence our business, including regulatory and policy changes, shifting consumer sentiment, tariffs and evolving government initiatives. [inaudible]

Speaker Change: I also want to acknowledge the news pertaining to the right-aid bankruptcy announcement this week.

Speaker Change: This is recent news and we are actively working to understand more. What we know today is that they have re-ended bankruptcy and are pursuing a sale of substantially all of their assets.

Speaker Change: It is too early to know how this will exactly play out, but we do believe that we are well positioned to engage consumers and other pharmacy partners to ensure smooth patient transitions

Speaker Change: Ultimately, these prescriptions will be filled somewhere and we are an active dialogue with pharmacy partners to make sure we are best positioned to service our consumers.

Speaker Change: I would also highlight that our efforts to broadly engage pharmacy partners over the past several months have put us in a strong position for productive dialogue with potential buyers or landing spots for these patients. And we believe that we can create unique and mutually beneficial arrangements to support such patient transition.

Speaker Change: Despite these potential challenges, the strength of the Goodrx brand remains clear across all economic conditions. [inaudible]

Speaker Change: Our leading platform is built to deliver consumers' savings and access to their medication.

Speaker Change: Regardless of the state of the economy and retail pharmacy environment. [inaudible]

Speaker Change: Our role will be even more critical as consumers prioritize essentials and seek ways to save. This is why we will continue to invest in our brand and its impact. [inaudible]

Speaker Change: We believe our value resonates strongly with consumers, and we are proud that Goodrx was recently recognized as one of Newsweek and USA Today's 2025 most trusted brands. Now let's dive into our prescription marketplace and manufacture solutions offering.

Starting with our prescription marketplace.

Speaker Change: During the first quarter, we provided meaningful value to our pharmacy partners.

Speaker Change: We helped retail pharmacies solve challenges they face around lower reimbursement and rising store costs . . .

Speaker Change: As we advance our position as an ally to pharmacies, we do want to be transparent that some prescription pricing has increased across our platform as we ensure pharmacies are able to achieve a sustainable level of profitability.

Speaker Change: We believe strongly that partnerships need to benefit all parties. The retailer, Goodrx, and most notably, the consumer. So it is important that we facilitate a marketplace of fair, affordable pricing.

Speaker Change: We will always put consumer affordability front and center in our offering in a way that is sustainable. As a result of some of these price increases, we have seen pressure on overall monthly active consumers or max and in our Integrated Savings program or ISP offering. We will always put consumer affordability front and center in our Integrated Savings program or ISP offering.

Speaker Change: Yet we have extended our leadership position in the prescription affordability segment as demonstrated by our growth and segment chair, which has increased over 300 basis points year over year in the first two months of the quarter. [inaudible]

Speaker Change: Partnering closely with pharmacies on pricing sets us up strongly for the long-term durability of our offering and enables us to have unique partnership opportunities with pharmacies.

One such partnership involves our e-commerce capabilities.

Speaker Change: During the quarter, we've launched a new experience for retail pharmacies that improved how consumers get their medications via the Goodrx platform. [inaudible]

Our directly integrated e-commerce solution, Chuck's medication inventory, Laurie,

Speaker Change: Validate the user's prescription and enables the consumer to pay on Goodrx before picking up their prescription in store and seem to be delivered to their home. [inaudible]

Speaker Change: This integrated solution is compelling for consumers and also helpful to pharmacies by streamlining workflows, reducing cost to fill and enhancing the digital experience. [inaudible]

Speaker Change: Ecom is a core component of our broader strategy to modernize the prescription experience and embed Goodrx directly into pharmacy operations creating deeper retail partnership.

Speaker Change: We have launched this with one retail pharmacy partner and are actively engaged in conversations to expand to more pharmacies as we aim to further reduce friction for consumers and pharmacists [inaudible]

Speaker Change: Now turning to our Integrated Savings Program, or ISP, which provides consumers with a complement to their health insurance for coverage in Eric's

Speaker Change: We continue to partner with PBM's in this offering and are actively evaluating how to best evolve this solution moving forward to deliver more value.

Speaker Change: One area that we are excited about is extending the offering into non-covered medication. [inaudible]

Speaker Change: We have received positive feedback from PBMs and pharma manufacturers regarding the integration of GoodRx's negotiated brand price points into commercial plans where there are gaps in coverage.

Speaker Change: Review this as a win for patients, plans, pharma manufacturers, and PBMs. We are an active dialogue with a number of partners on this extension.

Now turning to pharma manufacturer solutions.

Speaker Change: During the first quarter, we continue to drive our access and affordability solutions forward, partnering with even more pharmaceutical brands and delivering meaningful return on investment for partners.

Speaker Change: The power of our brand and associated consumer and HTTP traffic makes partnering with Goodrx a must-have for pharma brands to surface their access and affordability programs.

Speaker Change: We're especially excited about our growing brand Point of Sale discount program, which enable pharma manufacturers to set a cash price of their choosing and deliver it straight to consumers with minimal friction at the checkout counter through a Goodrx coupon at the point of sale.

Speaker Change: This is a key differentiator in our ability to partner with retailers as well as PDM. [inaudible]

Speaker Change: We have strong proof points that our point-of-sale discount programs are resonating. For example, in 2023, we launched a point-of-sale buy-down program with an insulin brand and generated significant incremental sales without cannibalizing existing business. [inaudible]

Speaker Change: Based on that success, the manufacturer has expanded their partnership in 2025 to five additional brands.

Speaker Change: We are pleased pharma manufacturers are recognizing the value of our offering and are continuing to expand their portfolios

Speaker Change: Proven business results for our other access programs are also driving 2025 renewals and expansion.

Speaker Change: As an example, for a vaccine brand partner, we were the number one source of scheduled vaccine appointments through an integration on Goodrx .

Speaker Change: This drove an ROI of over 15 times to the client and led to an expansion of the partnership to other vaccines in the partner's portfolio. The momentum and traction in our pharma manufacturer solutions offering is also impactful to our broader business. [inaudible]

Speaker Change: Winning with brands, further enhances our ability to win with consumers, pharmacies, and HCPs, which fuels more platform demand and utilization.

Speaker Change: In closing, I am very optimistic about the future of Goodrx and believe that we have tremendous opportunity to expand our business to help even more Americans save on their medications.

Speaker Change: Our value proposition across the pharmacy ecosystem sets the foundation for why our business is durable and resilient. We are focused on initiatives that will help expand our value to key constituents. . . .

Speaker Change: First, serving as an ally to pharmacies through a pharmacy profitability efforts and technological capability initiatives which help pharmacies better engage with consumers, improve workflows, lower cost to fill and elevate pharmacies digital footprint. [inaudible]

Speaker Change: Second, helping pharma manufacturers reach their patients and targeted HCPs via our access and affordability partnerships. We will continue to extend our footprint both in integrating brand co-pay programs, as well as point of sale buy downs.

Speaker Change: building out the prescribers office as a go-to market channel. This is a strategic focus area for our chief pharmacy officer and we look forward to updating you on the progress we make in future quarters. And finally, continuing to invest in our brand to ensure that we remain the number one place that Americans go for medication, access and affordability. [inaudible]

Speaker Change: We've laid the groundwork, sharpened our focus, and are now leaning into the opportunities ahead. With the right strategy, team and partnerships in place, we're positioned to grow, durably and profitably. With that, I'll turn it over to Chris to discuss our first quarter highlights and guidance.

Chris McGinnis: Thank you, Wendy, and good morning, everyone. For the first quarter, total revenue was in line with our expectations at $203 million, up 3% versus the prior year. Prescription transaction revenue and manufacturer solutions were up 2% and 17% respectively versus the prior year. [inaudible]

Chris McGinnis: For the first quarter, adjusted EBITDA of $69.8 million rose 11% versus the prior year, which constitutes an adjusted EBITDA margin of 34.4%.

Chris McGinnis: This is an improvement of 60 basis points compared to the fourth quarter, and while ahead of our expectations for the quarter, we believe this will be within a sustainable range for the remainder of the year. [inaudible]

Chris McGinnis: We continue to have a strong balance sheet ending the year, excuse me, ending in the quarter with $301 million in cash, with 91 point.

Chris McGinnis: $91.7 million of unused capacity on our revolving line of credit, resulting in total liquidity of $392.7 million.

Chris McGinnis: During the first quarter, we deployed approximately $100 million of cash on hand to repurchase 23.3 million shares of our stock at an average price of $4.32 per share. Given our stock price, we continue to believe that stock repurchases are accretive and the best use of cash. The stock price is $100 million. The stock price is $100 million. The stock price is $100 million.

Chris McGinnis: At the end of the first quarter, approximately $189 million of capacity remained under our $450 million share

Thank you for watching!

Chris McGinnis: Turning now to our outlook for the remainder of the year.

Chris McGinnis: As we discussed last quarter, Wendy and I are committed to a transparent approach to guidance and given our limited time and our respective roles, we provided a range of outcomes within which we have confidence while providing ample room to adjust as we gain deeper understanding of the business. [inaudible]

Chris McGinnis: For the full year 2025, we continue to believe that revenue will be in the range of $810 to $840 million, representing 2-6% growth compared to 2024 [inaudible]

Chris McGinnis: There are a number of factors that influence revenue, including macro conditions such as consumer confidence and spending trends, tariffs and other policies related to drug pricing, economic climate, and are ongoing business development efforts driving our strategic initiatives.

Chris McGinnis: It's hard to predict the impact that these variables will ultimately have on our full year revenue, but an effort to be as transparent as possible. At this point in the year we have greater conviction and visibility at the lower half of our range with achievement of strategic initiatives providing opportunities to deliver in the upper half of our range.

Wendy Barnes: As Wendy noted, we're aware of Wright Aid's announcement on Monday to pursue a sale of substantial all of its assets through a voluntary bankruptcy process.

Wendy Barnes: Given the timing of this announcement, we have not included any estimate of the impact of this process on our guidance. However,

Wendy Barnes: As Wendy noted, these scripts will continue to be filled somewhere and we will leverage our retail partner relationships to maximize the smooth transition of these scripts. We will keep you informed in future quarters as this continues to unfold. [inaudible]

Wendy Barnes: With respect to our guidance for a full-year adjusted EBITDA, we are slightly increasing and narrowing the range, now believing it will be between 273 and 287 million dollars, which represents approximately 5-10% growth compared to 2024.

Wendy Barnes: With full year guidance of context, for the second quarter, we expect revenue to be up sequentially from the $203 million we reported in the first quarter with an adjusted EBITDA margin roughly similar to the first quarter. [inaudible]

Wendy Barnes: With that, I will now turn the call over to the operator for questions.

Certainly.

Speaker Change: As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile our Q and A roster. [inaudible]

Speaker Change: and one moment for our first question, which comes from Lisa Gill of JP Morgan, your line is open.

Lisa Gill: Thanks very much and good morning. If I could ask two things. One, Wendy, when I think about bigger picture, you talked about high impact initiative. I want to just understand what you think are most important. I think you highlighted a few things, whether it's retail, manufacturing, the prescriber, investing in the business, etc. But which of those do you think will really drive what Chris talked about, which is the upper end of the range?

Lisa Gill: And then I know it's hard to put a number around Rite Aid, I appreciate this is all new news, but…

And can you give us, from a historical perspective,

They have been closing stores, CVS has been closing stores [inaudible]

Lisa Gill: What has been the rate that you've been able to recapture or maintain that relationship with that consumer when stores have closed? Just to give us an idea of historically if there's a way to think about it. [inaudible]

Speaker Change: Yeah, hey, Lisa, thank you for the question. Good to hear from you. I will start with your first question. Noting.

Speaker Change: The Strategic Initiative that we've got high confidence in and just can't share additional detail on on this call. Let me start first with the closer partnerships with retail pharmacies. That absolutely would be item number one. And what I mean by that more specifically is...

Speaker Change: Directly contracting, embedding at the counter, where it becomes a much tighter partnership, such that we have much better line of sight to capturing those cash prescriptions, also included in that e-commerce partnership that you heard me outline.

Speaker Change: When we're connected in that manner, we effectively become the digital front door for our retail pharmacy partner.

Speaker Change: And when you point to also manufacturers, it becomes a bit of a triangulation with us sitting at the center, if you will. So those brand partnerships...

Speaker Change: as we're continuing to add additional brands to our portfolio where we've got this point of sale cash buy downs. We additionally are conveying that value.

to the Retail Pharmacy Partner.

Speaker Change: But the additive note there is that now our PDM partners also remain interested.

Speaker Change: In wrapping or auto wrapping, those non-covered brands, so it all starts to convey with us at the middle, connecting these pieces both to the payer PBM, the retail pharmacy, and of course ultimately the consumer, ends up benefiting whether or not they are someone standing at the retail counter, suffered and aside from their coverage.

Speaker Change: Or potentially as an employer beneficiary utilizing their benefit and then finding out that a drug isn't covered when they initially perhaps would have intended to use their coverage at the counter. So it really puts us at the center. Here.

Speaker Change: with an ability to drive those things. And while I can't tell you specific partnerships today, because we're not able to announce them yet, what I will tell you is that we're well beyond conversation.

and it's very much my hope. [inaudible]

Speaker Change: What we are now seeing with what we're partnering with manufacturers on is that we have an ability.

to drive a much

Speaker Change: Tighter partnership there and we are candidly not taking as a great advantage of that as we should be today given the connectivity that we have to HCPs and with Dr. Pope in his role we are now laying out

Chris McGinnis: in a future quarter. Add to the second question, is it pertains to additional store closures? I'm going to send that over to Chris for commentary. Yeah, I appreciate the question, Lisa, I suspect. Look, I don't have, we don't have specific data around, you know, conversions and retention of those scripts, but this is, but to the spirit of your question, there is. Um,

Speaker Change: Let's talk about what we do know about Wright Aid. This situation is a little different than past store closures, right? So we now have a process. We know their intention is to sell substantially all their assets and they actually announce the process, right? So they've sought a voluntary bankruptcy process. [inaudible]

Speaker Change: which does a couple things and for right aid for its part announced in its press release that they want continuity of service, right? They want to make sure that patients have access to their prescription medications and they want a smooth transition.

Speaker Change: So what that means as a part of the bankruptcy is that a number of bidders will come into that process. In our in our terminology, we believe that's going to be sort of what we call a file by, right? They're going to buy the patient's records and transition to do a different pharmacy. We'll see.

Speaker Change: So, working to create a smooth transition, we are already in conversations with some of our retail partners, which we believe will be credible bitters for a portion of these assets.

Speaker Change: and we will work to smoothly transition those scripts and by smoothly transition we mean when they take the file over that is a Goodrx customer and it will come over and it will refill and it will look the same at a new retailer as it did at Wright Aid.

Speaker Change: So, to the extent that it doesn't happen in terms of a, quote, smooth transition, these are goodrx customers.

Speaker Change: and they came to our platform to begin with because they were looking for an affordable solution to access their medications. [inaudible]

Speaker Change: So to the extent that there's something happens that's not a quote, smooth transition, we believe those customers are coming back to our platform.

Speaker Change: We got one of the best brand names in healthcare.

Wendy Barnes: As Wendy noted, we've been named one of the most trustworthy brands in healthcare for 2025. We think these patients are, they're not on benefit for a reason and so we think they'll continue to do that so . . .

Wendy Barnes: Trying to scale the issue again to the spirit of your question. [inaudible]

Wendy Barnes: Less than 5% of our projected revenue for 2025, the chance that that's the impact is remote on us, right? So it's going to be something less than that and so it's also the other part of the process that they down outlined because we have visibility to a bankruptcy process and the reason we can't put it in our guidance.

Wendy Barnes: I don't know today whether this is going to take three, four, five bitters or dozens of bitters. [inaudible]

Wendy Barnes: to buy substantially all those assets. We don't know the timeline for negotiations, we don't, you know, there'll be some approval process with a bankruptcy trustee or some, you know, some stakeholders or creditor committees, and then of course other...

Wendy Barnes: You know, closing conditions, regulatory approvals, et cetera, and ultimately closed, and then the script gets filled. So the timeline that those all happen on, how many transactions that takes? [inaudible]

Wendy Barnes: and ultimately transitioning these scripts out. [inaudible]

Wendy Barnes: It's really hard to know how that will impact us in 2025. But look, at the end of the day...

Wendy Barnes: Well, we've scaled it as less than 5% of our business. Thank you very much.

I can't stress enough.

Wendy Barnes: That's a remote possibility that that level of impact to us. [inaudible]

Wendy Barnes: and our job is to work to mitigate the impact and make sure that that smooth transaction happens in concert with our retail network. [inaudible]

Chris McGinnis: Lisa, I would just add on because I suspect this question is going to be on most everyone's mind on the call.

Chris McGinnis: Again, noting that it's less than 5% of our forecast. That would be on a 12 month view. So we're already five months into the year. Clearly all of these prescriptions aren't going to disappear.

Chris McGinnis: We know that it's going to be a significantly smaller portion than that. We also don't think this is all going to happen in the next four to six weeks. I mean, this is going to be something that's probably going to be stair stepped over time. This is going to be something that's going to happen in the next four to six weeks.

Chris McGinnis: Beyond that, though, I also do want to reiterate and reemphasize the relationships that we have with pharmacies. Thank you.

Speaker Change: Are in a significantly different place at this point in time than they were last year. We are speaking top-to-top around those that are interested in obtaining these file bides.

Speaker Change: Perhaps doing so in partnership with Thomas, we're just in a very different position to be able to take advantage.

Speaker Change: Wendy Scripps Transition, I would also note that of our millions of users the percentage for which we have contactability is materially higher than it was in years past so we also have the ability to directly communicate.

Speaker Change: to the same consumers who are filling medications with us. And that was not the case.

Certainly not as ubiquitously last year as it is today.

Speaker Change: You also did ask a question if it pertained to I think other.

Speaker Change: Retail closures. Look what I would say is some of the others that you've pointed to, they've been in smaller pockets and largely those have been thinning in current markets such that the same retailer largely maintained those scripts and trance for them to themselves.

Speaker Change: which is also a far different scenario. So as to the few others that you pointed to, nothing material that we would have pointed out that created an impact to us from a closure perspective. Thank you very much.

Thank you.

Thanks, Lisa.

Speaker Change: And our next question will be coming from John Ransom of RGF, Your Line is Open John .

John Ransom: Hey, good morning, everybody. I'm just on the legacy business. You know, the old model, as you know, was to aggregate all these PBM price outcomes, mostly from the smaller PBMs. You know, we're seeing the larger PBMs go to cost plus. [inaudible]

John Ransom: Pricing, you know, CBS said they want to have it all cost plus next year's example. What do you see with the small TBMs? Are they moving to cost plus for their pharmacy networks? And if so, is that a good guy, a bad guy or neutral for your legacy model? [inaudible]

John Ransom: Yeah, appreciate the question. Good to hear from you, John . So,

John Ransom: To be clear, a significant percentage of our business today already runs on cost plus rails were somewhat indifferent to the reimbursement mechanism to the pharmacy. So that actually is kind of the point of clarity there. This is about how the pharmacy gets paid, but it really doesn't overly influence. Let's go ahead.

John Ransom: How many drugs aren't covered at the end of the day? That's largely what drives the pool of opportunity for cash prescriptions, and I would also point out that cost plus or not cost plus when you're in a cost plus environment?

Notably, most based prices tend to increase. [inaudible]

John Ransom: And so as a result of that, there's also going to be more pressure on the consumer in their funded plan to create an opportunity for a cash prescription. And as you kind of heard me outline in our first quarterly call, and we're continuing to use similar language. Thanks, George.

John Ransom: My overall vision for the company is that this cash offering of which we hold the number one position simply be a compliment to insurance. It really shouldn't be an or...

John Ransom: It should really run alongside as an AND, and that is what we're doing by embedding as e-commerce partners with retailers.

John Ransom: such that it's just always going to present itself whenever it's more compelling. [inaudible]

John Ransom: from a cost perspective to utilize the cash benefit and I would also remind you

John Ransom: Given the pressure on price, what we know around so many brand medication is that there's almost one billion prescriptions per year that go unfilled due to price. And so again, that just continues to create a pool of opportunity for us to go after from a cash perspective. Thank you.

Great, thank you, and...

Speaker Change: My other question, you know, the old management teams, so I won't catch you, make your sponsor with us, but they were pretty excited about the theoretical opportunity with GLPs, but as you've seen, you know, Nova Struck deals with

Speaker Change: Hems, and they've struck deals with CDS. I know you connect people to the NOVO patients assistance programs, but is the GLP opportunity still out there to be had? Or is that just maybe not going to happen? [inaudible]

Speaker Change: No, it absolutely continues to be an opportunity and I, again, I very much appreciate the question. So let's start first with kind of grounding in what is happening with Novo and Lily today. So they've both created their own direct program.

Speaker Change: with their own direct discounted price. And to be clear, the partnerships that have been announced are largely with telemedicine pharmacies or pharmacies, inclusive of CVS, whereby... [inaudible]

Speaker Change: Those pharmacies are effectively redirecting the script to those direct programs at the manufacturer offered price.

Speaker Change: Having said that, we are continuously dialoguing with Novo and Lily all the way at the top.

Speaker Change: around how we can continue to be of assistance. So yes, their affordability programs are already embedded in our platform such that we are helping them engage consumers to get to their affordability program.

Speaker Change: Clearly, we're not fulfilling pharmacy, so the ability to actually fulfill those scripts isn't an opportunity for us and they're doing it through either their own pharmacy or a few select...

Speaker Change: Home delivery pharmacies today. So that's how they're approaching the program. And again, I want to be clear though that through those programs it is their own discounted price that only they are honoring no one at present. Thank you very much.

Speaker Change: Has a discounted cash point of sale by-down price. I continue to believe their absolutely is an opportunity to get that out.

Speaker Change: But I also believe it's going to take time for more molecules to launch, to put pressure on those manufacturers to produce.

Speaker Change: A cash price buy down at point of sale. Now, having said that with the two large manufacturers out there today,

Speaker Change: I think it'll probably be evident which one would likely be more receptive to a cash price just knowing where they sit from a market position.

Speaker Change: and I would leave you with this, that those are the conversations we're having. I additionally have asked both of these manufacturers why from a consumer experience perspective.

Speaker Change: Nobody wants to have to go to ten different places to get their basket of drugs. [inaudible]

Speaker Change: and while I applaud both of these manufacturers for putting a lower price point in market through their direct offering. [inaudible]

It's still asking consumers to go through a different experience. Thank you very much.

Speaker Change: to get those drugs. And at the end of the day, the basket of drugs just doesn't look like that. It's not specific to one manufacturer. So we are also in conversations to potentially embed some of their programs with us, which I think should also be. [inaudible]

Speaker Change: The long-term goal because we know that we've got over two and a half million consumers on our site in any given quarter and that number is a specific and accurate to our first quarter searching for these GLP1.

Speaker Change: Drugs, so you know in summary John I would say the opportunity continues to be a large one but we also are pushing hard for a true cash discounted price that we can buy down at the point of fail and right now neither manufacturer is doing that. [inaudible]

Thank you so much, Wendy. [inaudible]

You're welcome.

And our next question.

Speaker Change: We'll be coming from Charles Rhee of Tidiko and your line of open Charles.

Charles Ree: Thanks for taking the questions. Maybe to follow up on John's question there. When you just mentioned that, you know, the two large manufacturers for Jailview was currently...

Charles Ree: are not offering sort of this cash price. And the argument that you make to provide a better consumer experience, you know, certainly makes sense to me here. What are the reasons that they are not...

Yeah, kind of moving forward with that. Good night.

Charles Ree: You know, perhaps, you know, and I'm sure they would understand sort of wanting to provide patients with a better experience as well. What are some of the reasons they're providing that is not the right time to do something like that yet? [inaudible]

Charles Ree: Yeah, I think the short answer is we're close. To be clear, they do see the value and also clearly understand that their patients, often with the script already in hand, are already looking on our Goodrx platform. I think it's for a couple of reasons. The first of which is...

Charles Ree: Look, they pretty recently just came out of their supply shortage situation. [inaudible]

Charles Ree: compounding pretty recently just effectively got put to bed. There have been a number of moving parts here. As such, their direct models continue to make a fair bit of sense, but very soon they won't as more molecules continue to launch and there's more pressure in this class of drugs.

Charles Ree: That will change the dynamic just like it does in any class of drugs as more molecules launch, which is why I think we're going to be in a good position to take advantage of that

Speaker Change: Okay, that makes sense. And I guess the other question, you know, I think it was, Lisa's question earlier was, you know, you talked about sort of the opportunity with ACPs.

If I remember a year ago...

Speaker Change: I think the company had really talked about that the top 10 percentile of ACPs in the network, we're already driving something like 50% of the max for Goodrx.

Speaker Change: Is that still the case? And so it seemed like that was a focus already last year, just trying to understand what wasn't working last year to drive that further, because it seemed like if you get that next 20% you know, next

Speaker Change: Desil to perform at the first, you know, that would be a meaningful increase. I'm just curious, what are you looking to do differently now that maybe you weren't doing last year? [inaudible]

Speaker Change: Yeah, no good question. Look, first of all, Scott is pretty new in role as I mentioned, but as we continue to look at

Speaker Change: The number of HCPs that are engaged with us. So let's just start with this year.

Speaker Change: We've already had over 750,000 unique physician and prescriber NTIs engaged on the platform so we know that there continues to be more opportunity to engage directly and of course you heard us quote the you know over 1 million in 2024 were engaged. [inaudible]

Speaker Change: What we know is that that particular audience has over 90% awareness of our brand. And so said differently with what we're doing today, I think you've heard us talk about HCP mode on our platform. We believe that there's a larger opportunity to take advantage of their presence. Thank you very much.

Speaker Change: on Our Pages and Partnership with Pharma, and we simply aren't pulling that through today. I think it could look...

A very different...

Speaker Change: Depending upon which specific strategies we pursue, we've got a list of several items that present that I would really like Scott to share on a future call but primarily this will involve partnering with Pharma to pull through the engagement we already have with HCPs and monetizing that opportunity. Thank you very much.

Speaker Change: Okay, thank you, look forward to hearing more about it later. Thank you.

Thank you

Speaker Change: And one moment for our next question, which will be coming from Ms. Gillandra Singh of Truist Securities Your Line is Open.

Speaker Change: and many more. Thank you for watching. I hope you enjoyed this video. If you did, please click the Like button and subscribe to my channel. I'll see you next time.

Jhalendra Singh: Thank you and good morning. Thanks for taking my questions. So I want to follow up on the guidance commentary on having comfort with the lower half of range.

Speaker Change: How much of that is given by PMS business? You talked about macro environment, can you be a little bit more specific? Have you seen any cautionary format behavior or less willingness to spend or is it that you want to be more prudent given all the uncertainty? Thank you very much.

Speaker Change: It's really the latter, Jailendra, so it's the way I think about Revenue, and you mentioned the pharma solutions business.

Speaker Change: That's sort of a traditional selling cycle so we have conversations with manufacturers and what we're seeking to do is obviously not only expand the number of manufacturers we're working with but obviously penetrate deeper into the drug portfolios of those manufacturers we're working with and so those are a traditional selling cycle where you're having conversations, you're deepening the relationship.

Speaker Change: Bring those deals through the funnel and so we have to sort of probability weight based on the pipeline at the beginning of the year. So revenue builds throughout the year.

Speaker Change: I saw a strong conviction that.

Speaker Change: The manufacturing solutions business will be a 20% growth line of business for us.

Speaker Change: 17% in the first quarter is sort of like.

Speaker Change: You're on track for us because it will build throughout the year. So right now as we just build the revenue profile of the company, where <unk> got strong conviction in the lower half of that range and then I think continuing to execute on the core continuing to drive some of the.

Speaker Change: <unk> initiatives that Wendy has outlined.

Speaker Change: <unk> us to the upper part of the range.

Speaker Change: Thank you and my follow up Macs in the quarter down mid single digits slightly below street expectation not sure if anything to highlight there on the flipside you clearly saw some better unit economics, which is something you guys expected as mix of lower margin pharmacies fallout of system and drive more revenue per script, how should we think about <unk> and <unk>.

Speaker Change: Revenue per <unk> for the year, how much more runway is left in pushing that revenue per Mac metric higher from current levels.

Speaker Change: Yes.

Speaker Change: Front and center of everything we're doing and trying to find that equilibrium and working with our retail partners, but both have to be true. We have to we have to we have to achieve our core mission of making drugs accessible affordable, but we need a healthy retail network out there. So we want a line to their economics as well so that.

Speaker Change: Over the long term, we think that will be add the most value to us but in the meantime, it's probably a little headwind on Mac great. Thank you.

Speaker Change: Kind of wanting to be growth company. So how are you thinking about kind of the current portfolio. As it is are there any other capabilities from a tuck in perspective that you would consider.

Speaker Change: Yeah, I mean, I'll I'll I'll take a stab first and let Wendy weigh in so in terms of capital you know allocation priorities.

Speaker Change: Obviously, we're investing in our business I mean in terms of you look at our capitalized software continues to go up or continuing to build out a suite of capabilities as we integrate further and deeper with both on the pharma side and tie it back to the retail network. So what we'll continue to spend money you know on ourselves.

Speaker Change: And then look absent other sort of strategic opportunities that come up given the stock price certainly where it is we'll continue to put money back into stock repurchases. It's just to US. It's it's highly accretive the stocks under valued and so in terms of returning excess cash to.

Speaker Change: Right now, we'll continue to to execute against share repo.

Speaker Change: Great and and then just as a follow up if you were able to do 20% growth in Mensol I mean, that's a very good outcome, particularly given some of the uncertainty in the pharma. So can maybe just talk about what that represent just from a greenfield perspective for Yo.

Speaker Change: Business and ability to kind of penetration to be able to drive that type of growth.

Wendy Barnes: Yeah. So we don't this is Wendy we don't specifically call out by brand by manufacturer. Obviously, you know publicly what I will tell you is the pipeline is robust there does continue to be a significant amount of room for growth we remain.

Speaker Change: Plus for this year.

Speaker Change: What we also know is that we're continuing to expand not just the you know list of brands, which is a combination of affordability programs at media. We're also continuing to expand those point of sale direct MSA cash buy downs, which involved directly.

Speaker Change: Continuing to increase the deal size with each of those partners. So that's really where the headroom fits and we continue to be incredibly bullish on that opportunity.

Speaker Change: Thank you.

Speaker Change: N. One moment for our next question. Our next question will come from George Hill of Deutsche Bank. Your line is open Hey, good morning, Wendy I have a question just to make sure I'm thinking about something right I wanted to talk about Medicare and with the benefit changes that.

Speaker Change: Imagine you would have had Medicare beneficiaries in prior years that hit the.

Speaker Change: I guess to hit the catastrophic phase that then had a co insurance payment where they might've tried to use a good Rx card and now that they're gonna have a a maximum amount of pocket, they're gonna get to the second quarter third quarter of this year and they're not gonna have an out of pocket component, where they might have been.

Speaker Change: A cash pay card or discount card I understand the complexities with gooder access it relates to Medicare and other government pay businesses, but I guess is there is there any dynamic that you're seeing there in the Medicare population and maybe just remind us what your exposure was to Medicare users before.

Speaker Change: Before the start of 25 sure. Appreciate the question. It's good to hear from you so about less than 30% of our users our Medicare eligible but to be clear about 2% to 3% 10 to hit their Mac or their maximum.

Speaker Change: I think that the bigger point to think about regardless of the closing of the donut hole is that there will continue to be pressure on these same consumers for where they're spending their dollars and ultimately Medicare is also going to be limited on what drugs. They.

Speaker Change: So there is always going to be a large large list of drugs that are not covered regardless of what the out of pocket is for those that are in fact covered and so we really don't see a headwind pertaining to this we continue to see the overall opportunity for cash use.

Speaker Change: Irrespective of whether or not someone is Medicare eligible is growing yeah, George just to put a fine point on what Wendy said, when you think about less than a third of our business or Medicare eligible and our data showing you know less than 3% of those actually hit their mo.

Speaker Change: That if you extrapolate those two it's less than 1% of impact on us for for closing that donut hole, yeah, maybe if I could have a quick follow up you guys have the biosimilar strategy going on with Humira and Borringer I guess can you talk about how effective that's been given the initiatives by pbms to be pretty restrictive.

Speaker Change: Like has that been a tailwinder ahead, when the execution there.

Speaker Change: Gosh appreciate the question I mean, I think we've seen reasonable uptake on pricing on the Biosim I mean, I think we continue to believe that biosims represent in general and align with our affordability narrative so to the.

Speaker Change: Obtain favorable pricing on any any of those molecules, we want them to be available on our platform I think it's the short answer because it conveys a better price point to consumers and we know overall, particularly in that R. A and derm category where bioms.

Speaker Change: That the you know the uptake in percentage of overall sales of Biosims has been increasing nicely. So you know given that I think we will continue to pursue contract and pricing for any class of Biosims, where it makes sense for us.

Speaker Change: Thank you.

Speaker Change: And our next question will be coming from Stephen Vallequette of Mizuho Securities. Your line is open Stephen Thanks, Yeah, Good morning, Wendy and Chris Thanks for taking the questions. So yeah. There's a question earlier on the revenue per Ma.

Speaker Change: Kind of answered in sort of talking more about margin, but you know by our math that was up about 7% year over year and was actually the first time in years that actually went up I was just curious if there were any other factors that that drove that metric besides what kind of.

Speaker Change: Too earlier I'm wondering first was there a shift in mix to higher priced drugs. This year are you maybe seeing more brand volume versus generic and I guess also are you seeing just generic inflation in the overall market. This year just curious if there's any other variables driving that 7%.

Speaker Change: Yeah, Yeah. Thanks, Steve I mean, I think you I think you sort of answered it I think it's all of the above it's it's it's mix shift it's higher drug use it's inflation. It's it's just there's nothing other than that that I would call out specifically, that's driving it other than sort of it.

Speaker Change: Of highlighted.

Speaker Change: Okay got it okay. That's it for me thanks.

Speaker Change: Thank you and our next question will be coming from Alan Lutt of Bank of America. Your line is open.

Alan Lutt: Good morning, and thanks for taking the questions I want to follow up on Stephen Gillinger's question I Wendy at the top of the call I think that you mentioned that there are higher prices in the good Rx App just want to check to see if that is driving maybe the higher revenue.

Alan Lutt: At all and then last quarter during the call you talked about store closures potentially driving the Mac lower as we think about you know higher prices and store closures is there any way to bifurcate between those two what's driving the Mac in one.

Alan Lutt: Yeah, No I wouldn't call out a delineation between those two items you just noted I mean, the primary driver is a mix shift to higher margin our access at the pharmacy counter is again, we seek to bolster and enable the retail pharmacy, so that they can.

Alan Lutt: Prescriptions, but to be clear or absolutely balancing that with a competitive and fair price for the consumer. It's just in some instances it might look a little higher than say it did three months ago, but still wildly competitive when you contemplate a cash price as a compl.

Alan Lutt: The primary driver.

Alan Lutt: Okay. Thank you very much and then for my follow up the V. C. R X acquisition in the quarter can you talk about that a little bit is there anything you know you could share around how many members how much revenue and then are the members that you added there included.

Alan Lutt: Thanks.

Alan Lutt: Yeah. So it's it's in terms of the total revenue profile. It's it's immaterial as we called out in the queue. But this was a this is a strategic retail partner that had a cash pay program and it's private labeled so this is a really as much about.

Alan Lutt: And and some of the other offerings that we've kind of highlighted and announced with this partnership. So it's it's less of about a contribution of revenue and more about deepening a relationship with a strategic partner.

Speaker Change: Great. Thank you.

Speaker Change: And our next question will be coming from Michael Cherney of Leerink partners. Your line is open.

Michael Cherney: Good morning, and and congrats on a nice quarter, maybe just one for me here on the margin side you know as you think about the strong EBITDA performance both in the quarter embedded in the guidance going forward you know having taken the full range of.

Michael Cherney: Strong EBITDA margin beyond this year, yeah, and so it's certainly a mix of both in terms of revenue and and and the cost side of the equation and I don't have a specific breakout of contribution that's driving that you know the uplift in the EBITDA and margin Percen.

Michael Cherney: I would say is in terms of what you ask about what's levers in our control obviously the revenue side's a little there are components of that that are less within our control. Obviously, there's you know you know a lot going on I can't remember a year quite like this in terms of trying to plan and predict.

A consistency in those things. So so I certainly feel like I got a lot more control and more levers to control and the cost side from a mixed perspective, I think we're levers to control there and I think it'll bounce around a little bit.

Wendy Barnes: And the second half of the year, Wendy mentioned continuing to reinvest in our brands. So I think we'll see a little bit of marketing spend pick up as a plan right now is a little light in the first quarter, but I think we'll pick that up in the in the second half offset by some operational efficiencies, which will continue to press on I mean, we're just really rolling up.

Wendy Barnes: Probably more offsets to be done there. So we're committed to be in good stewards of shareholder money, we'll we'll operate the business as efficiently as possible, but we're absolutely going to invest in our brand and initiatives that drive future growth of the company so little bit of a lot more control.

Wendy Barnes: Outside of the equation and I would just add as we think about the strategic opportunity that I believe Lisa may have asked about at the top of the call. When we opened QA and I was also very purposeful in my remarks on using the word durable.

Wendy Barnes: Our in strategic initiatives that deepen a partnership whether it's with pharma the P. B M or the retailer that becomes a little more difficult to unwind when you're conveying value to all parties in a meaningful way and given our brand presence the way we attract.

Wendy Barnes: In terms of what could a competitor come in and do and potentially supplant it becomes a little more difficult with the way. We're building some of the things we're talking about becoming the digital front door and partner and the brand value that we're conveying a number of our competitors don't have to be able to.

Wendy Barnes: Four to wrap to those non covered offerings inside P. B M. So that's how we're thinking about our strategic pillars and and the we're durable again was used purposely for that very reason because I want these things to become more in our control and more difficult to replace for our.

Speaker Change: Thank you and our last question will be coming from Daniel Grosslight of City. Your line is open Daniel.

Daniel Grosslight: Makes sure ticket in the question and congrats on the strong quarter here you know we've seen a a pretty significant expansion of direct to consumer distribution of GLP ones via Novocare and Lily direct I'm curious as you think about.

Daniel Grosslight: And your relationships with with Novo and Lily if there's an opportunity to become a kind of bigger front door to some of those direct to consumer cash pay only programs, whether through novo or Lily direct.

Daniel Grosslight: Thinking about your your telehealth assets combined with your your pharma distribution strength. There. Thanks, yes, it's as if you've been sitting and some of my strategic conversations timely question. The short answer is yes, we agree with you.

Daniel Grosslight: With the manufacturers you note and potentially others that may have you know molecules either in this particular class or in classes that lend themselves to direct programs because we know that when any type of program is embedded in our platform compared to a.

Daniel Grosslight: Pharma has it can be anywhere from 510 to 15 times the lift through us as compared to that unique manufacturer program again, just because there isn't a lot of consumer awareness on how to utilize those platforms and we've already got the trusted.

Daniel Grosslight: But I think it's important to also note the H C. P and that again is something we alluded to earlier. They also are looking at these price points in office trying to assist their patients and we believe that continues to be a pretty large opportunity that that candidly.

Daniel Grosslight: Good and so you heard me allude to what will be a much larger strategy there as well and we do have a partnership with a telehealth provider we partner with wheel. We also think there's an opportunity to better leverage that partnership should we.

Daniel Grosslight: Becoming more of that all encompassing telehealth, taking care of the visit in addition to servicing the script.

Daniel Grosslight: Thank you.

Wendy Barnes: And I would now like to turn the call back to Wendy for closing remarks.

Speaker Change: Thank you and since there sincere thanks to everyone for joining us today, good or X has an exceptional value proposition and market position, we deeply understand the interconnected business relationships that drive consumer medication access and affordability and we are ideally positioned.

Speaker Change: You to all of our stakeholders fulfilling our brand purpose to the end consumer which is especially important during times of economic and retailer uncertainty. Thank you again for joining us today.

Speaker Change: And this concludes today's conference call. Thank you for your participation you may now disconnect.