Why Digital Health Company GoodRx's Shares Are Surging Today?

GoodRx Holdings, Inc. GDRX shares are trading higher after the company reported fourth-quarter FY23 results and issued first-quarter revenue guidance above estimates.

Revenue and adjusted revenue increased 7% Y/Y to $196.6 million, beating the consensus of $195.8 million.

Prescription transactions revenue increased 11% to $143.9 million, mainly driven by an 8% increase in Monthly Active Consumers and quarter-specific favorability related to certain client contracts.

GoodRx exited the quarter with over 7 million consumers of prescription-related offerings. Monthly Active Consumers were 6.4 million compared to 5.9 million a year ago.

Adjusted EBITDA rose to $57.3 million from $49.6 million, led by higher prescription transactions revenue, with margin expanding to 29.1% from 26.9%.

Adjusted EPS of $0.08 beat the consensus of $0.07.

As of December 31, 2023, GoodRx had cash and cash equivalents of $672.3 million and debt of $661.8 million.

Repurchase: The company repurchased shares worth $77.8 million in the quarter. As of December 31, 2023, GoodRx had $44.3 million of shares under its authorized share repurchase program.

On February 27, 2024, the board of directors approved a new stock repurchase program that authorized the repurchase of up to $450 million of shares.

Guidance: GoodRx expects FY24 revenue and adjusted revenue of $800 million versus a consensus of $790.53 million.

It sees first-quarter FY24 revenue and adjusted revenue of $195 million-$198 million versus the consensus of $192.91 million.

GoodRx forecasts an adjusted EBITDA of ~$250 million in FY24 and an adjusted EBITDA margin in the high 20% range, potentially up to 30% in the first quarter.

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

Price Action: GDRX shares are up 17.2% at $7.58 on the last check Thursday.