GoodRx’s Kroger controversy comes down to the bottom line

GoodRx said Wednesday that its dispute with Kroger over the past year continued to affect its bottom line.

The company reported a first-quarter net loss of $3.3 million, or 1 cent per share, compared with net income of $12.3 million, or 3 cents per share, a year earlier. Quarterly revenue totaled $184 million, down 10%. The company’s biggest revenue driver, its prescription transaction business, saw a 13% decline from $134.9 million this year to $155.5 million in 2022.

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goodrx Last year blamed the drop in prescription transaction business on its contract dispute with Kroger, the national grocery chain that temporarily stopped accepting GoodRx’s rebates at the point of sale through May 2022. The company also attributed the 5% decrease in the monthly to the Kroger issue. Active customers to grow from 6.4 million in 2022 to 6.1 million this year.

On the earnings call, interim CEO Scott Wagner, who took over from GoodRx co-founders and co-CEOs Trevor Bezdek and Doug Hirsch in AprilSaid he would try to shore up short-term and medium-term growth plans for the company’s prescription transaction business.

Basically, GoodRx cut its revenue guidance by $30 million because Kroger represents a large portion of its prescription transaction business. The company resolved the Kroger issue in August., but said the temporary disruption continues to affect its business. Wagner said he is focused on emphasizing relationships with the company’s retail pharmacy network, which includes more than 70,000 locations in the US.

Revenue from its subscription plans grew 26% to $24.1 million, primarily due to an increase in monthly subscription fees.

This story first appeared on Digital health business and technology.

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