The first-quarter earnings report for GoodRx (GDRX 2.29%) was quite favorable. In this video clip from "3 Minute Stock Updates" on Motley Fool Live, recorded on July 6, Fool.com contributor Brian Feroldi highlights several key indicators that show the company operating at a high level and should make it appealing to investors.
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Brian Feroldi: But GoodRx had a pretty good quarter when looking backwards. We'll get more into that in a little bit. Revenue was up 27% to $200 million. Net income, yep, net income, this company is profitable, especially on an adjusted basis, positive $12 million. That was up substantially when compared to the year-ago period. Monthly active consumers was up 12% to 6.4 million. The number of subscription plans out there up 29% to 1.2 billion.
There were some one-time costs in here related to Founder Awards and stock-based compensation hence the big difference between net income and adjusted net income. Adjusted net income largely excludes that, but look at this, this is the business putting up 20% adjusted net income margins. This is a good business. The business itself is pretty good.
If we dig into the revenue number a little bit more, the company has four primary sources, but one of the exciting ones is the subscription revenue. That's people paying for GoodRx, plus this number continues to grow, reached $19 million last quarter. Their pharma manufacturing solutions revenue, this is cyclical based on pharma spending patterns.
As you can see, it dropped substantially when compared to Q4, but it was up substantially year over year. This allows pharmacy manufacturers to push through discounts to GoodRx's huge and growing subscriber base. Other revenue, which includes things like telehealth. This was supposed to be a relatively exciting part of the business, but as you can see, growth has pretty much stagnated and isn't doing a whole lot.
In other news, they agreed to acquire a company called vitaCare, a relatively minor acquisition for $150 million. They've made a couple of these in the past. They think it has some nice overlay for the business. So, largely looking backwards, things are looking good.
