GoodRx, a consumer drug pricing comparison and digital health company, inched its way closer to profitability in 2021 but remained under water, according to its most recent earnings report.
The company posted a net loss of $25.3 million in 2021, despite a 35% increase in revenue from $550.7 million in 2020 to $745.4 million in 2021. The company attributed the net loss to a $15.1 million provision for income taxes and $160.5 million of stock-based compensation expenses from its IPO. The company posted a loss of $293.6 million in 2020, due to a $263.2 million stock-based compensation expense and related payroll taxes.
The company posted a $39.9 million loss in the fourth quarter despite a 40% increase in revenue.
GoodRx’s stock has tumbled from the poor showing, down 38% and nearly $11 per share as of press time. Overall, GoodRx’s stock has fallen significantly from its high of $47 per share in October 2021.
Its biggest business, prescription transactions, saw minimal growth from $155.7 million in Q3 2021 to $158.8 million in Q4. It did see an increase of approximately 14 percent year over year.
During its earnings call, GoodRx co-CEO Trevor Bezdek said that the company faced headwinds thanks to an unexpected longer impact from COVID on the prescription transactions business.
“Having 24 months of smaller new therapy starts in a business that's highly recurring due to refill frequency and the long-term nature of prescriptions created a compounding impact over time,” Bezdek said during the call.
GoodRx had some positive news in 2021 as well. The company’s revenue from subscriptions grew 79% year-over-year to $17.1 million, with a 51% increase in the number of subscription plans. Monthly active users grew from 5.6 million in Q4 2020 to 6.4 million in Q4 2021.
The company also rolled out a new a provider-facing platform in the fourth quarter, launched a new online health resource for consumers, retained and grew its pharmaceutical manufacturing business. It also announced several partnerships including an integration with Wheel, a virtual health primary care company and Instacart, which gives their grocery shopping customers access to a paid GoodRx plan.
The digital health company plans to focus on brand awareness, provider relationships and repositioning it subscription business in 2022.
“We are strategically repositioning GoodRx Gold, our subscription program, to focus on a more specific audience that we believe finds the most value from [this subscription plan], members with chronic conditions, multiple recurring prescriptions and other long-term needs,” Bezdek said during the call.
The company also acquired FlipMD, a marketplace connecting practicing physicians with organizations seeking on-demand medical expertise, for $7.0 million in cash. Bezdek said that the acquisition will bolster its provider-facing product.