GoodRx’s fourth-quarter earnings reflected the consumer digital health company’s financial challenges.
Quarterly revenue decreased 14% to $184 million, and the company said its issue with Kroger, a national grocery chain, cost it $40 to $50 million in lost revenue. Kroger temporarily stopped accepting GoodRx’s discounts at the point of sale in May. The matter was resolved in August but GoodRx said at the time the financial effect of the dispute was going to linger for the remainder of the year.
Also, revenues in GoodRx’s prescription transactions business decreased 19% to $129.4 million. The company also saw an 8% decrease in monthly active consumers engaged with the prescription transaction business.
To offset the revenue decline, GoodRx cut administrative costs as well as its sales and marketing spending in the fourth quarter. Sales and marketing expenses decreased 21% to $84.1 million, while administrative expenses decreased 19% to $28.6 million.
GoodRx laid off 140 employees, or 16% of its workforce, in September across its technology and marketing groups.
The company posted a fourth-quarter net loss of $2 million or 0 cents per share, compared with a net loss of $39.9 million or 10 cents per share in 2022. The improvement was tied to a provision in income taxes under which GoodRx received a $2.8 million benefit in 2022 compared with a $45.8 million expense in 2021.
For the year, GoodRx posted a net loss of $32.8 million, or 8 cents per share, compared with a net loss of $25 million, or 6 cents per share, in 2021. Revenue increased from $745 million in 2021 to $765 million in 2022. The company said it expects a small revenue increase in 2023, to between $780 and $790 million.
GoodRx recently paid $1.5 million in a settlement to the Federal Trade Commission because it allegedly was sharing health information with third parties. The FTC also prohibited GoodRx from sharing health information with third parties as part of its enforcement action.
