Shares of GoodRx Holdings Inc. popped nearly 50% in after-hours trading Monday after the company, which offers services for people looking to compare prescription drug prices, topped expectations with its latest results and indicated that a previously disclosed issue with a major grocer has since been “addressed.”
The company reported a second-quarter net loss of $1.4 million, or breakeven on a per-share basis, whereas it recorded net income of $31.1 million, or 7 cents a share, in the year-earlier quarter.
After adjusting for stock-based compensation and other expenses, GoodRx
earned 6 cents a share, down from 8 cents a share in the year-earlier quarter. Analysts tracked by FactSet were anticipating 4 cents in adjusted earnings per share.
Revenue rose to $191.8 million from $176.6 million, while analysts were looking for $184.7 million.
Shares skyrocketed 48% in after-hours trading, after closing up nearly 10% at $7.76.
In its last quarterly report, GoodRx disclosed that a large grocer had taken actions that would impact acceptance of discounted pricing for certain drugs from pharmacy benefit managers, who are GoodRx’s customers. Shares plunged more than 20% after that report.
Executives disclosed in the latest shareholder letter that the estimated impact of that dynamic was “largely in-line” with the $30 million that they projected on the prior earnings call.
At the same time, they indicated that the issue was eventually set to improve.
“We are pleased to share that the grocer issue we discussed on our first-quarter earnings call was very recently addressed,” GoodRx executives said in the shareholder letter. “As communication is rolled out to the grocery chain’s pharmacists, we expect GoodRx discounts to be consistently welcomed at the point of sale.”
They further noted that the resolution is a “very recent positive development,” so they “do not anticipate a meaningful volume or revenue lift in the third quarter based on the rollout timeline of relevant communications to the grocery chain’s pharmacies, new user adoption and returning user levels.”
The company had 5.8 million monthly active consumers, down from 6.0 million in the second quarter of 2021.