Santa Monica-based GoodRx Holdings Inc., which operates an app that allows consumers to comparison price shop for prescription drugs, on March 11 reported a 42% jump in revenue for 2020.
GoodRx co-founders Doug Hirsch and Trevor Bezdek received $98 million when the company went public.
Photo by Ringo Chiu.
But the company’s second quarterly earnings report since going public in September showed a $294 million loss for all of 2020 as GoodRx made massive one-time IPO-related payouts totaling $396 million to its co-founders and co-chief executives, Trevor Bezdek and Doug Hirsch. The bottom line also took a hit from a one-time $42 million charitable contribution that GoodRx committed to as part of the IPO. The charitable organization receiving the gift was not disclosed.
Taking out those one-time payouts, GoodRx posted adjusted net income of $133 million for 2020 on revenue of $550.7 million. That compares with net income of $66 million for 2019.
“2020 was a challenging year for all of us, but GoodRx rose to the occasion, delivering new and improved health care services when people needed it the most,” Bezdek and Hirsch said in a letter to shareholders containing fourth-quarter and full-year earnings results.
For the fourth quarter, GoodRx reported a 36% revenue surge to $153.5 million compared to the fourth quarter of 2019. But the company posted a $298 million loss for the quarter, again due to the payout to Bezdek and Hirsch – $285 million of which came in the fourth quarter – and the charitable contribution. Adjusted net income was $32.2 million for the fourth quarter, up 40% from the same quarter in 2019.
The company reported that during the fourth quarter its monthly subscriber base rose to a record 5.6 million, thanks in part to the acquisition of prescription plan manager ScriptCycle.
Bezdek and Hirsch said in their letter that revenue from drug manufacturers grew four-fold during all of 2020 and that it was continuing to scale up its telehealth offerings as it absorbed its 2019 acquisition of HeyDoctor.
GoodRx shares dropped nearly 5% in after-hours trading from its March 11 close of $43.59.
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