Niche healthcare company GoodRx Holdings (GDRX 4.43%) was looking spry and healthy on the stock market Thursday. Investors were happy to take a few doses of it following the company's release of its latest set of quarterly earnings, and they cranked the price of the shares nearly 12% higher. With that, it trounced the S&P 500 index; this rose marginally on the day by 0.6%.
Prescribing a double dose of beats
GoodRx, which specializes in prescription and telehealth services, saw its revenue rise by almost 3% year-over-year to just under $203 million. Non-GAAP (adjusted) net income also advanced, increasing by 5% to hit $34.4 million, or $0.09. Both results were broadly in line with analyst estimates.
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In terms of revenue composition, GoodRx's main money-earner -- prescription transactions -- saw a 2% gain to nearly $149 million. Management attributed this to better per-unit economics and a favorable sales mix. Pharmaceutical manufacturer solutions revenue saw a meaty 17% boost, but this business is relatively small; it brought in just under $29 million for the overall top line.
On the downside, subscription revenue fell by 7% year over year to $21 million. This was because of a decline in subscription plans, which in turn was attributable to the ending of GoodRx's partnership with supermarket chain operator Kroger.
NASDAQ: GDRX
Key Data Points
Guiding for gains
As for guidance, GoodRx left one item unchanged and raised another for its anticipated full-year 2025 performance. It's sticking to its revenue forecast of $810 million to $840 million for the year, which would represent growth of at least 2% over the 2024 tally.
Management slightly increased the projection for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $273 million to $287 million. The 2024 result was a bit over $260 million.
It feels realistic to me that GoodRx is expecting continued growth; it has appealing diversification in its revenue streams and its core activity, prescriptions, should only become more compelling with the continued aging of the American population. I can understand why investors are bullish on this company.
