What happened

Shares of GoodRx (GDRX 0.06%) charged sharply higher Wednesday morning, surging as much as 22.1%. As of 10:24 a.m. ET, the stock was still up 11.1%.

The catalyst that sent the digital healthcare platform higher was the company's quarterly financial results, which were far better than investors hoped -- particularly in the face of headwinds.

So what

For its fourth quarter, GoodRx generated revenue of $184.1 million, down 14% year over year, driven primarily by monthly active customers that decreased 8% due to the sustained impact of a grocer issue (more on this in a moment). This resulted in adjusted earnings per share (EPS) of $0.07. 

To give those numbers context, analysts' consensus estimates were calling for revenue of $178.5 million and adjusted EPS of $0.05, so GoodRx cleared expectations with room to spare.

The news wasn't all bad, as subscription revenue increased 42% year over year to $24.6 million. Other revenue also climbed, increasing 8% to $5.2 million, fueled by an increase in the number of telehealth visits on its platform.

GoodRx continues to suffer the impact of an unnamed grocery chain -- widely reported to be Kroger -- that suddenly stopped accepting its drug discounts at the point of sale. That matter has since been resolved, but continues to have an impact. 

Now what

Even as the company continues to face headwinds, there are reasons to be bullish. On the conference call, CEO Doug Hirsch detailed a collaboration with Express Scripts, which automatically enrolls members in GoodRx, allowing them to receive the discounts without any action on the patient's part. This sparked a larger partnership with Cigna Group -- Express Scripts' parent company -- which made this program available to 10 million members. This collaboration has been so successful the company plans to work with other insurers, dramatically increasing its total addressable market. 

While challenges remain, GoodRx is starting to get interesting, selling for just 2 times next year's sales, putting it squarely in bargain basement territory. For investors with the stomach for a little risk and volatility, GoodRx might be just what the doctor ordered.