GoodRx’s revenue fell in the fourth quarter of 2022

GoodRx’s fourth-quarter earnings reflected the consumer digital health company’s financial challenges.

Quarterly revenue fell 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 the GoodRx rebate at the point of sale in May. Case was resolved in August But GoodRx said at the time that the financial impact of the dispute was going to last through the remainder of the year.

Also, revenue in GoodRx’s prescription transaction business declined 19% to $129.4 million. The company also saw an 8% decrease in monthly active users associated with the prescription transaction business.

To offset the decline in revenue, GoodRx cut administrative costs as well as its selling and marketing expenses in the fourth quarter. Selling and marketing expense decreased 21% to $84.1 million, while administrative expense decreased 19% to $28.6 million.

GoodRx laid off 140 employeesor 16% of its workforce, in its technology and marketing groups in September.

The company posted a fourth-quarter net loss of $2 million, or 0 cents per share, compared to a net loss of $39.9 million, or 10 cents per share, in 2022. The improvement was tied to a provision in income tax under which GoodRx received $2.8. million in profit in 2022, compared to $45.8 million in 2021.

For the year, GoodRX posted a net loss of $32.8 million, or 8 cents per share, compared to a net loss of $25 million, or 6 cents per share, in 2021. Revenue to increase from $745 million in 2021 to $765 million in 2022. The company said it expects revenue to increase modestly in 2023 to between $780 and $790 million.

GoodRx recently paid $1.5 million in a settlement to the Federal Trade Commission Because it was allegedly sharing health information with third parties. The FTC has also prohibited GoodRx from sharing health information with third parties as part of its enforcement action.

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