GoodRx (GDRX) 9 Aug 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the GoodRx Second Quarter 2023 Earnings Conference Call and Webcast. [Operator instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Whitney Notaro, Vice President of Investor Relations. ahead. go Please

Good conference operator. and to welcome Thank for morning, the earnings call second GoodRx's you, everyone, quarter XXXX.

are Voermann, Officer. of today’s Joining Officer, be joining Operating today Scott Q&A Interim also our me portion the Chief Officer, and will Karsten Beri, our Raj Financial call. for Chief our Chief Wagner, Executive

savings and under unknown factors of deferred our solutions nor our materially cost impact results, by of forward-looking known and involve achievements or and and relate strategies, realizability factors. or collaborations any historical we goals I'd expressed former with like the performance, call future should These from grocer statements. market partnerships forward-looking contain statements. tax are made certain direct anticipated uncertainties, from parties, and our forward-looking trends the implied our Solutions assets, our begin, environment different the the statements promises without the to on the our on this statements, neither guarantees, of Before anticipated limitation, Pharma management's or offering, contracting business. macroeconomic on important All business, that call business, to underlying be considered achievements may with third not but and retailers, other expected actual financial statements objectives, our do be will approach of our issue in fact cause plans, impacts our initiatives, risks, the remind of growth, Manufacturer ongoing These deprioritization everyone for performance, matters statements to including impact that our opportunity, results, potential performance, regarding our

actual cause our and the March on filings report our on with Securities made to XX-Q by management's to and the Any if Risk views Exchange these cause differ the in forward-looking the statements date could and statements results indicated change. as discussed XX-K obligation XX, disclaim we for December represent Form of update call, our XX, as those to estimates the call. XXXX, by for events ended Factors this the Factors subsequent forward-looking on updated even XXXX, Commission, quarter statements, other Annual our of year ended materially any quarterly from such of Report section Form this

to the we In a metrics investors.GoodRx.com. reference in non-GAAP replay Investor will at addition, release, may that company's of Overview our of there like website can which nearest the earnings as the to everyone metrics, available be found reconciled Relations are remind also this which on well. call press page also I'd GAAP shortly become

I'll to that, turn it Scott. With over

second and of all thanks for results. to today joining quarter Thanks, to discuss us Whitney, you our

here do I lot there's like our our can days business. I out further As can say to at there's round we and a mission to more first GoodRx, my XX and build to

GoodRx last to across build our I've reignite our GoodRx from. retail against and spent customers, number both I've and the improve. meeting can teams prioritize a working them, months, well teams to what's where insurance growth. strengths and been pharmacies, I've opportunities, digging been has payers. of biggest we few external key stakeholders Over understand internal with pharma to PBMs, and time with with in align profitable

our evidence promoter value of $XX high scores, GoodRx’s money PBM of savings our almost annually, retail and and all the the healthcare scope in billion ability is people role consumer First, are of of powerful. drive ecosystem. proposition our medication networks, prescription consumer to on valuable saving and our net provider

GoodRx patient over million Over XX who prescribers used Second, have our consumers scale and massive. have months. X.X and impact million past XX the a is over

acceptance, Express partnerships with Caremark, PBMs, two and expanding grow of more our and corporate meaningful drive Third, savings claim largest with include Solutions prescription integrated driving including to pharmacies ways, CVS multiple we tighter in the Scripts, programs now even potential our savings, plans, growing have to funded the business. Manufacturer which retail Pharma

momentum an in XXXX towards growth with and eye We're rebuilding and beyond. the operationally compounding financially in business

and our marketplace is and GoodRx attention focusing conscious prescription on remainder Manufacturer XXXX like At where are in also can year-over-year less to important to drive with last everyone where focus. our Operationally, in investors. do driving level, my On of meaningful reiterate both is that out areas highlighted we're milestone I lead a going we're There I'd we're going and to decisions GoodRx claims Solutions and call, on while that was the of our our to the spend first broad and I discuss. in in we'll call, change things our For update the returning was that takeaways the financial how purely each, are does to more priorities, compounding for claims. growth time a From going We're call what we prescription our prioritizing and milestone. business. beyond. of quarters, coming growth reaching profitability standpoint, four

to manage and possible. with has contracting retailer GoodRx incredible is approach, our pricing strongest We're having retail to network the down having added We're see for quarter, and we is the them in this and ensure continue distinct last retail grocer GoodRx plan path. success growth priority to value help first What Our the another finding brand. relationships GoodRx pharmacy pharmacy margin very want in to strategy targets. retailers pharmacies

deliver retail in do to Now, the retailer relationships healthy, retailer that goal have great patients. of overall contracting differ how we'll value and is to but by dynamics, and will terms profitable, growing

continue these for that We're long-term half plan year. alike. the retailers PBM in and do of partners by retailer, retailer to we're so We value throughout through to and of to foundation the adds believe working second GoodRx for the contracts both that process creating the growth

prescription headwind become us here that for believe may is be unique, partner now focused margin stability, situation but a market gone this over overall, quarter, this have example, confident somewhat the a ensure network approach up that the an of retail system millions relationships term. volumes result We increasing mid-size versus and second discounts. will right progress leading to to us volume do for retailer retail the their a we grocer entered that with so we down, a short-term share, help add is contracting trade-off As significantly. claims in as goal the growth, for revenue got longer but the expect bit a GoodRx of time. the business we're That in tighter enable of additional admin with into growth, have where grocer particular fees contract on gone We've

all partnering ensure as to we're with to well to continuing retailers, long-term addition adding with we're drive working In value value for and that to our stakeholders. them PBMs

is transactions related X% the behind priority and issue. the short- growth year-over-year, second hone second core prescription it. and last grocer Our year's year-over-year growth and for medium-term quarter, despite total the resources plans prescription transactions to grew In to revenue our our teams ongoing align headwinds and business returned approximately volume prescriptions

transaction Given sufficiently with the the associated non-grocer of important disruption, step us. sheer XX%, to proportion for return the an revenue that volume over growth is revenue prescriptions before a to was growing grocer

improve our be planning one, that to medicine to refills, patients ruthlessly flows our to adding ahead, value marketing attention from Three, by, of our we're Two, value conversion increasing going product our announced to our recently every expanding do And focused payers and high feature. customer experience driving and claims. like proposition Looking and improving capability source cabinet to insurers. traffic. incremental on We're conditions. four,

proposition our payers expanding the to of last ton a made value point on To insurers, we and progress.

helping Express This program for both Caremark automatic generic members announced pharmacy by and in We exciting members. ecosystem volume their CVS patient health Members allow medication, GoodRx the Caremark benefit, GoodRx been seamless We becomes into another these access no prescription win, prescription PBMs month, out-of-pocket the both and them it's the on part. can with also can believe lower to the win, savings sponsors we clinical better for and costs Assure behavior, available their visibility integrated on Caremark and pay new data with have already drug meaningful plan consumer's for provide lives. benefit of segment data collaboration save on into action prices of their win patients. built Caremark’s more will will benefit of a required Scripts’ are allowing is TAM. programs reach pharmacy pricing clients new both outcomes. millions patients when improvements. Price eligible with Caremark. serving to into medications. CVS adherence and and part partnerships past lower CVS successful to Since card, money from with benefit Cost get help help Express prices Scripts a Saver partners, while and can CVS place for called improve We today boost has it's and deeply powered integration, GoodRx’s which our GoodRx, drive healthcare to This

start to a earning the look to at in the we XXXX. looking broader beyond Cost phase Saver Caremark we're pilot start ESI this considers XXXX. as revenue with pilot, year their from ESI the expect program of to forward We and rollout move

our scale is Our Manufacturer priority Pharma third efforts. Solutions to

call, clients have we that As distinctive to on and high first our articulated we're the are ROI earnings focusing for quarter on offerings a our us.

to core are of even we're co-branded drive manufacturers brand all et allow centers, newsletters. patient incremental meaningful at patient where drug. navigator, on to pricing present close on and brand several access partners proposition transactions. drive touch a manufacturers points, value can this add points of where brand and the rebate through cetera, resource We're We provider provider generic We to to pages, have based point-of-sale of drug do decision price a programs to mode connected content, their That's for paid ton allow below patient programs a to outcomes-based value. pricing via brand manufacturing and content, performance, different different which programs, bringing very and We we GoodRx drugs. hit

brand should copay really we GoodRx. the believe scope our programs consumer Given start at of access and all consumer-oriented network,

our savings brand and spent that i.e., moments, As uniquely claims, creating teams, I've time is positioned generic clear of customers drugs. valuable and capable on with and it's both GoodRx

we're company, going our a where we're As or where to change time aren't. partner distinctive approach we and to spend look

to offerings, for changing drugs. we're We XXXX. can areas capabilities bought run is Pharma where the without to distribution example, the core at value purchased the volume deprioritize prescribing for our higher Manufacturer entity found HCP access inflexible and valuable our how demand Solutions fixed going has. proposition infrastructure specialty cost. area specialty asset, we An parties for early to GoodRx’s that our in for provide to cost use leveraging serve to We're services going increasingly VitaCare high What I've VitaCare, attract work. creating currently on VitaCare reduce VitaCare approach most the to that manufacturers and brand, we of is of we cost Therefore, our our fulfillment deliver we're third

We our the simultaneously drive growth. by in of Pharma growth low these and reducing deprioritized these in while second our doing some cost We'll digit and will and we Solutions creating to help at second revenue that at the see of within contribute our quarter-over-quarter a These deliver programs rate profitable mid-single incremental also in this and clients to hard to Pharma offering cost be both to will half the are scalability. Solutions off access things margin growing in result dollars, the the as in of believe at of for revenue of We're margin awareness half XXXX quarter, digit serve sales to look believe improvement XXXX Manufacturer action. one-off high on as a were of will standardized we impacts expect EBITDA we millions associated basis, expect Manufacturer with We Pharma high We second to profitability us programs of realize our second serve On to reducing structure. half Solutions adjusted actions points well, migrate higher basis of a as of focus our year, while expect millions offering dollars mid-single least high solutions XXXX, run a incremental us, rapidly. cost In sales taking focus XXX other revenue. leaning we VitaCare, ROI the XXXX. we've throughout intersection clients and programs. efforts go-to-market we offerings the restructuring were and Historically, for our and faster growth. this Manufacturer scale we're that compounding of

Officer, Dorothy Our teams is efforts. offerings, ease Chief highly two recognizes working our align reporting Gemmell, fourth with the metrics. are that quality of people WebMD's of and our against Her of additions and strategic priority new having fantastic Manufacturer Commercial manufacturers help a she our run a offering. engagement increasing recently Manufacturer us is great sense. our with areas with our leader, and track our our urgency. is execution and record opportunities. great biggest and scaling Solutions to focus built has made our strong to execute executive with and to a Dorothy We've key strong commercial prop and value Solutions enhancing includes Pharma agencies, the operation, Dorothy drive

Chief Officer, the as Health, Commercial oversee operations GoodRx as As our also and strategy she'll well HCP of offerings.

been in GoodRx, Marketing of at effort a effective our prescription new and our back as operator core brand also a part business, he's for. Having a first to one drive creative, what healthcare believer Andrew welcomed As execution our smart, the Andrew strong employees in growth of the stands Chief with it we sense. Slutsky great Officer. is

tenure, growth he market activities pacing percentage of fraction at led double-digit previous and Andrew's today's a GoodRx’s drove During spend.

spending to focused our high doctors' he's on marketplace recent our as as about I for groundwork claims I'm and The the changes, and occasions. GoodRx to continued investments and ahead. got talent, updates we CMO, can in us, do. on sees forward here with quarter. opportunity look initial performance relationships, PBM patients laying orienting we value towards be. pharmacy internal well progress the lot encouraging, offices leadership for a is everyone growing growth, prescription providing opportunity can people and retail our With alignment great areas locations there's big we're of As believe as next We've more excited and and of point-of-sale the and business

Karsten. to With that, over I'll it Karsten? hand

X% in revenue, to $XXX.X the I'll XQ transactions EBITDA summary, Diving to and total to $XXX.X financial was our on year-over-year quarter, million Scott. million. year-over-year million, adjusted and turning X% margin, respectively. adjusted decreased $XX.X $XXX.X exceeded X% up XX.X%, revenue and Prescription during for speak guidance we growth to deeper, up second million, EBITDA, you, at the results coming guidance. Thank XXXX quarter first before revenue In quarter-over-quarter.

year-over-year the made mentioned, is fill X% year-over-year all and grocer revenue time As XX% transactions prescription because the growing than to offset at the were X% our prescriptions of to flat in is accomplished. important $X.X offering in increase increase the by declined revenue grocer MACs year-over-year achievement grocer which The our we revenue. prescription an Manufacturer largely by had $XX.X transactions increased quarter issue. arose, over that the to million partially Scott transactions across other of Solutions of quarter-over-quarter. the growth to up We second by revenue share driven impact Pharma returning our the million. in gap year-over-year MACs, retailers, more

running. campaigns in We're remain deprioritized We signing quality deals recurring and pleased long year. contribution relative of Our growth high so one-time potential, on with the is about this we're the to term. trajectory to of offering last achieved optimistic we've focus with levels we revenue the deals very

The Gold Subscriptions majority for to to subscription we Pharma in of of plans, year-over-year plans offset associated XQ versus revenue for Club, subscribers. with the of $XX.X with XX% $XX.X ended subscription subscriptions. pricing to certain prior up with offering increased year primarily fulfillment where the versus the customers in by or associated were increase the quarter dollars effects gold decrease subscription down number a or quarter time to X% of of Cost revenue Manufacturer of declined and XXX,XXX our the non-recurring Savings were year-over-year. absolute is pricing the X% to is Kroger decrease million due the Turning We was partially X% million revenue prior deals. costs that provided million solutions first $XX since decrease for Solutions under last in related revenue XXXX. year. plans

revenue by $XX.X XXXX. primarily in decrease advertising Sales in well expenses million technology capitalizable in revenue to a levels compared higher costs second was XX% due lower of as related development labor. headcount $XX.X and million driven were and decrease by decrease payroll Product due of expenses. million payroll and which XX% of or of expenses XQ $XX.X related XX% a of or revenue average lower and revenue, to or the $XX.X XXXX. stock-based were to as primarily decrease XQ costs, or million marketing quarter The in of driven versus XX% compensation, lower was The

a year-over-year decreases as with As our strategic dollar focus with invested, are we've revenue getting the which we quarter-over-quarter of discounts, contra discussed, align future to and In and brand terms. dollar and is finding returns better in to continued the and quarter, million led both on spend in of marketing, ways included in $X.X we each and and leverage revenue. invest scale, marketing and marketing, while higher second spent total managing a million, to our percent of which to in goals a was million of sales proactively sales POS $X.X in $X.X which

$XX.X or were last co-founders to related million the expenses decrease granted administrative million quarter primarily connection of stock-based our and The second of with year. versus a or awards was driven IPO. expense by in XX% $XX.X General the decrease revenue, compensation in in revenue XX%

Net our of increase in million primary loss recent the of on quarter a income expected $X.X tax assets profitability. valuation million year-over-year allowance XXXX. tax and future to on of trends the deferred our second driver $XX.X of was compared net release net The of $XX.X our was the million based

or it benefit majority comprises benefit our the We forecast recorded effects valuation others, of net adjusted awards. tax driven due tax useful their amounts our our price for unpredictability a the one of the provision by generally quarter. among even this factors, decisions challenging discrete to This as investors. is presenting equity our perspective after net individual reasons control, including to result, our element, is is stock trading we the to in allowance income for tax such million multiple equity from As anticipate $XX.X awards. as release employees which believe factors relation benefit, a outside we income of of tax future provides or the in This

approximately the the expectations driver $XX.X The is million XXXX. $XX.X related of ahead to million Adjusted XX% to was managing $XX.X basis our and quarter-over-quarter. spend. marketing net of year income provided generated year-over-year in EBITDA XXX Adjusted million basis Adjusted quarter points of was quarter-over-quarter. increased year-over-year period. year-over-year flat $XX.X down XX million, was and XX.X% of which relatively margin up compared proactively to EBITDA to and increase second sales primary cash points the $XX.X net compared prior operating in million We activities of by

allocation continue shareholders. to and for are capital investments maximizing value priorities return and unchanged will high on Our focus

Our and ended and cash strong, balance cash remains equivalents debt. the million quarter sheet, sheet $XXX.X of the on million $XXX we and balance outstanding with in

Our representing of revolving $XX.X of capacity, total credit $XXX.X unused facility million had liquidity million.

Now onto guidance.

revenue XQ for $XXX million outlook is to million. Our $XXX

the to of with are remainder XXXX, for business and balancing and we Turning XXXX imperatives beyond results. immediate QX

Manufacturer in transactions in We're headwind Pharma roughly versus fourth short-term digit second quarter retailers trade-offs we're in direct trade-offs result million-dollar that half our including mid-single we're for revenue. also revenue VitaCare, deprioritizing lead making a and to growth. to approach with prescription discussed, volume we how contracting Solutions, and margin making may particularly a As running expect in we're which reduction

delivered continue EBITDA we'll high of a expect of mid perspective, we today, couple growth dollars half. into similar last during results conscious a the confident the this sit second of adjusted QX, to second million to and QX which From higher. the represents. guide that in we delivering we As to year-over-year couple margins We're XXs, margin perhaps we've in quarters, the our are half, be

by on expect million. offering, of prescriptions approximately the Moving quarter to third million we transactions revenue $XXX guidance $XXX to

gold declines in subscription increase Club revenue total expect our the the the subscription quarter-over-quarter may Kroger we million operate. to we in And approximately We and again, second program $XX of increased fall while our for expect plans third quarter. subscription quarter plans due to in plans subscription Savings

range revenue offering, for this to reflects including, Services, Solutions our $XX Manufacturer planned $XX approximately of revenue which million. VitaCare Pharma of offering. million that rationalization to expect This anticipated from deprioritizing example, We is guidance decrease

be quarter. to in $X expect other million third We the revenue approximately

headcount $XX example in incur relating Finally, $X assets our VitaCare, software pre-tax accelerated million at million as first, restructuring restructuring rolling to to well future personnel changes up making clients, to to reduction connection principally total second, offering, as within contract $X the high initiatives, intangible million, consisting cash in to cost we amortization with certain Manufacturer Solutions million expenditures for of approximately $XX or Pharma million charges, approximately with expect in currently abandonment approximately VitaCare relating serve of in non-cash approximately various we're connection related certain of off expenditures $XX to termination costs million to of charges. and associated million to and $XX to with other $XX acquired

We are of expect the XXXX. during result activities million substantially $XX all restructuring rate of these run third amounts to approximately These of quarter $XX savings. to be million fourth cash in annualized expected and incurred to

I'll turn Q&A. for over that, to now the operator With it

[Operator Charles the comes line from Rhyee Instructions] from first Cowen. Our question TD of

deeper questions. obviously well. Yes, dive Saver Express taking program, one and thanks CVS to love for into the Scott, would Cost as the the

about seeing an GoodRx bit, opt-in, that sponsor for the benefit this how being to think the goes incremental translate of a plans the so far. price in offered figure in program or sort Caremark's member seeing to might a how is those little out here bit is trying what benefit? then a currently. And to it's How about think within year, Cost being opt-out as four Just trying figure sold how plan included Saver market And or it might Pharmacy as little next next you the XXXX? being default plan Express design, cost Is Thanks. out year. it in the to be with you're Caremark the just often to this with we that Scripts accessed experience are trying first pilot Just in the prescription?

for it. Yep. question. Hey, Appreciate Thanks Charles. the

share detail up. the on to is ESI we're the the benefit and how going where of plan not showing exactly specifics of the program, So,

I say we’re I right I our for getting going it's think it’s can to for think from say perspective, incrementality. pilot our and ESI And the from that However, well. now, and been hope pilot really a nice theirs, perspective,

event pleased Obviously, benefit So, and we're corporate-funded say, it's with I for also to addressing their an the looking I they we're if that had. to ESI unique. it, for for is plan, think great consumer the into and well. patient it's patients, add-on safe that's they're for and additional incremental what activity it's And hitting marks think us, as then because it's

we're hopefully you hand to Caremark to Raj the again, a Raj? that terms into it Raj off of things with and so, little give rolling And and forward here looking COO, in some asked, of program our us, you going is to the out I'm Beri, color. and to XXXX.

Thanks for Scott. Thanks, the question well. as

and savings is ESI prescription at market. we're pay insurance cash Caremark the expand programs with to the so, the a insured And high do both our looking and to level, the beyond into what

so, we're program. And Caremark this really excited about

available the of the so of on How when work question had to automatic average terms prescription will copay, is of program to program that how specific specifically get have you this members In and eligible generic et pricing, prices. I'll cetera. then will will on work, beat the ESI this GoodRx’s access kind

service that insured will experience, a lot this they'll But here savings ESI. drive that And and improved see customers. so, more similar seamless also what to for going is get consumer we're to

some similar new plan be in we're terms but us. unlocks really of broadly a ESI of addressable about designs, overall. principles, though excited market They there'll the the they're it same some really for is differences What serviceable and of terms In have Caremark.

question win? is question have was in know Caremark, members, time average, was anyone opt-in of plan an be overall? ESI performing don't I looking part program I to XX% XX% think you think Cost that add is does Saver, whose And on So, last we're of of it eligible asked by beats it around Caremark if is working the of And will the enrolled average this how terms we're members terms it automatically. in the part plan I the around design anything of, design. third, specifics to sponsors part on of the the the copay second on how the that. it or how And of in often Karsten, else, plus. program So, at

too, that specific by jump Raj. I year Yes, metric the beating We valuable. Raj sponsors, these probably stat about second like PBMs, by can and average this importantly, stage. not I ago. point, the Charles, the more relevant that by at reasons XX% them time. given most we is a quoted that the out We can't that one plan of US we get the copay Yes, that inceptional see the the think, or about in put prices as see one ESI GoodRx Caremark, see certainly of analysis, on programs over a us ago, Caremark as that's with analyses about it’s at But one of and valuable, reasons that's the

generally. you kinds folks a obviously on are indicative, that's sense not gives So, ESI-specific, programs but of working these with us for it why

decide is just up pilot contract, will and the quick, will a built for full engagement? there or automatically could from that it follow I ESIs pilot - go full for to timeline there is when that that to Is a into go point already If real production? a a a they trigger - into

Raj this is Yes, so here.

just on Right progress to now partnership. really work both now, and Caremark really these and with broader you into moving So, we're from we're focused pilot happy obviously getting mentioned. making of the and ESI from as the rollout,

continue work XXXX kind up. in to ramp And of this to and we're so, excited program

you material been beyond there's to the hasn't contribution look at both them ESI mentioned of and revenue to but revenue Caremark, previously, potential As we've in contribute materially XXXX, if for a XXXX. both

Thank Great. you.

next question. for moment our you. Thank One

from question of comes Suisse. on Our Credit Jonathan next the Yong line

was Hey, perhaps taking benefit the to situation revenue about little derived a for the It thanks volume to somewhat trade-off and and the there as much for the the was, margin. and the want comments sounds understand and pharmacy. Kroger in I volume pharmacies where too much not question. being you're similar what bit making retail

two, the for So, a to is to it to consumers And volumes need correct? allow one, that reduce bit. higher like prices you going sounds

So, how for meaningful is moving price to relative means up of brand previously what had does that landscape? the this point separately, the they becoming? consumers GoodRx type mean of competitive see that situation for and Thanks. what this kind if what And

Scott. is this Yes,

at it's I and point. them us, but that show each and want a we're being retailers you this to with really a up from category is this how of the think - working whole about is point do us to being going perspective? just to and certainly margin and our to And partners price looking matter able get helping say, proactive retail

So, about actually before, this situation were it's we describing say the different that us I being and our with about proactive is would than relationship retail.

one. keep at Okay, I'll it thanks.

moment Thank next our you. question. One for

Our Securities. next through line goes question Jailendra of Singh Truist from the

seeing that you you And you're spending last from earnings business underperform Has that what the - can than and Thank any acquired, good deprioritize your low was plans under clients? Did and your was morning, X% comment low everyone. business Pharma to you environment single-digit since from Solutions, certain VitaCare. what focus including This in very million. of call? the you, a also like when I revenue solutions significantly EBITDA, pharma like acquisition? Manufacturer less to want on your broadly, on ways overall changed communicated on

Thanks, Jailendra.

go ahead. Oh,

Sorry.

No, this sorry, Scott. is

this service VitaCare, and around we on talk think, asked yes, the different the as the just about there's learned let the effective us some is I'll about access to And to were just brand big of think trying period customers it. the I thought ways a way this for getting Karsten that point we who numbers to point our former assign transactions reality specific patient we've capability, efficient But GoodRx. over think to I I and is, you there's are more year stop. do last

can any add about Pharma come and if Sol Karsten, general. VitaCare, you back and more Man So, to I want on in about talk then

with great perfect. to That you Jailendra, sounds speak again.

dollars, been implies others revenue, percent back case something X% like nailed, less bought of about more $XX somewhere high So, time when it we which recap, at costing or than to you've got like it don't, talked yes, sounds teens couple million. contributing we bit would've a and just which in millions to around Vita, high but us single-digit a that margin, it of

business So, bought profitable. we of we that indicated of the it, the as course time was not

then, I think since we've able to to revenue. been add

increased that has size. in So, of the part business

to evolving be flip business structure the us side, all it, of towards without cost On and as internally push work to we're not meet our the to led of that to structure direction commitment though, our in well. cost breakeven aspects able a investors the

interest we've that top we the in to made going think, given on you’re happened. commitment jump revenue making Scott, on end by the So, taking of that this side of well as now focus to actions efforts to year, probability sure the Sol? XXXX, of this breakeven increasing And cost get the Man side I and in

a brand and for proposition it's to to we unique - generation transaction really VitaCare, in that. and VitaCare us. to a is across clients way able And value relative is it to on it and have of point we're happens for customers in And Particularly our for efficient ways, to frankly, good this the put more, focused really to and margin-enhancing close a really manufacturers properties way are them business working strong, has and be that's them. being demand about Yes. action the merely just - that much service

moment our One you. for Thank question. next

Bank. line from George the of comes Our Deutsche from next Hill question

Yes. especially picture exclusive guys. the the largest pharmacy I retail trying that aligned that to compete two but how are retail as this both I they how relationships, tighten And do about Scott, closely kind relationship big my space you thought comfortable PBMs, get going as PBMs the the of vendors you feel so I good that guess, or GoodRx? of guys trying relationships. about tightening with you question. are the taking are can to in well with that guess market question are now like as before, the talk comfortable there a to well? serve their morning, pharmacy other retailers guys Thanks kind like, is for you

think to point question you're an find we that's wearing have say the off we PBM to you're I wearing hat don't you relationship So, don't and is think make that the or that a day really either think, again, your and or important this truly a approaching, role hundredth And partner system, think but I’m and a hat. I my in there's here, can retail is a still network a we we where ecosystem with both.

a relative number the savings given which customer specifically really whether tight this base, None trying them chain, it's targets. our footprint they're being relationship, be that a of the the in believe retailer base, these But and in cetera. and be we're multiple is, and one PBMs Now, we're our future. one at may to dynamics by have whether are grocer, margin good our the to that some relationship partner contracting particularly points, can retail, retail, generation, and And realizing user actions how is be for one, mean how around taking solve when that work objectives it's a retail. ways and the different a very the able et same, a the we to it's price our consumer traditional PBMs, drugstore for big with we relationship, demand at category, look so with continue we're like about of in

Thank you.

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next Stan line Fargo comes LLC. the Our Securities, question of on from Berenshteyn Wells

Hi, thanks questions. my taking for

about thinking the on back Just deal, mechanics here. the Caremark

PBM potentially to GoodRx keeping anything within rather beating is network lower PBM prevents Thanks. filled prescription the and through than could PBM Caremark, result rather fill partner? through a effectively script situation than costs that its in a in from or price there partner, through outsourcing network fill the So, a matching GoodRx price out-of-pocket that Caremark

Karsten this question. talking here. for Thanks Stan, the Hey, is

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very Thanks much.

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competitors One are they night that, of to trying to much for as think, technology half salespeople as get customers a slowed the buy pharma technology-enabled growth these I just long also sales ability opposed to and but over what do launch do customers just more this to technology-enabled more Would with you coming for guys as opportunities any to face-to-face just office dashboard to technology? VitaCare. different. my that And a are hour - program. you by and pushing your and also to of on meetings originally four last that little terms looking commented That's to the solutions thinking Thanks. maybe things in expected idea bit they go see sitting market click I'm as thought reps? the love thoughts Is about service-oriented It’s in very year. versus solution. opposed had Where a program, having a hey, buying the going and want

for Thanks question. Yes. the

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second some they're like in navigator, companies. other assets, patient yes, copay is just most a honestly, the programs And some into And around content we're so, or up. of whether deeper we're and starting are to or our health whether that. than of then transaction, ability the build our usually these funnel to cashback put performance our And that it's the things leaning awareness

and what about it obviously the like focused these just And solutions people, means, still impacts impacts on market other you us if introducing so, that to think but really customers. we're us,

our And to so, stage, we're earlier do really more some evolution it us ability has market just does business to means our build and than the with and market do life the to in up in with which ways, dynamics.

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Thanks. Great.

for question. moment One you. Thank next our

Grosslight goes on from of Daniel next Our question line the Citi.

also your Hi. there, these programs. Caremark into the in Thanks XXXX, on I'm out and to focus I'd like the like a out question. opt how these sponsors as change generally more taking and really business sure because for to to for ESI, it deals back deal to no-brainer and rolls others to go seems may us, it

you're have because you a of rolls platform out, no bolus in the access all with spend XX% copays with this if beating importantly time, of going new marketing members of the of you're commercial a majority done the plans, it's to vast to So, members to whole background. these attract as incremental just kind

relates if need of uptake do You're then pharma drop spend, the as attracting of to of and hiring I are also eyeballs less platform think you're some So, to Slutsky mantle suppose think I of should it still that go-to on we in to to the how if about marketing on and XX% spending you're doing because going everything marketing. see marketing? because well, these market about be there simply with the guess as we effects negative your the conjunction GoodRx programs? XXXX knock-on in backend. you that, this going don't And to you terms dramatically around to Andrew revenue Is approach

but ESI, ground et actually Caremark, aren't so and They're - CVS on these Awesome. there, let Scott, you're a cetera, ands. me marketing relative to of lot covering first and trade-offs.

believe result - good or So, And where XXX these we our ROAs. are our first patients it's doing. my trade-off, do we a in good and again, our With in we access first It's marketing in both point marketing an ability can our that been important. it. is our and to is we It's around higher effective, ways to occasions, this to focus, lean ROAs bring we've of big an standpoint, Andrew relationships patients from our measure and from value what base. We're points savings, believe has to or whether able a the valuable. into month-plus A continue reactivating back, than of perhaps days good. lot going there's a from point marketing marketing customer XX new are what's - great they new a been we're is and I spend analytically-based and and. business is measurement coming On is that not really that our even but It's more a it.

goal. a step a what their the marketer, taking profile for an mix quantum direct individual what condition, as told that's of can back, and like map insurance what savings. So, is, total And their you if their absolutely me drug we

strategy, our building And spend so, if into business. good it's around honing tactics again marketing really which you performance our think the about that funnel, just is deeper

something market two things out a honestly, that highly do the CAC. that's sophisticated in just a to back both the nice programs, for thing of to value, you audience. did It’s is, these going so point it's and new way. we to think incremental. We're can point coexist. payer and us important. marketing's is then And And there isn't adding So, a continue It's

Got it. you. Thank

there, had I'm things here. jump other Daniel, in you in Hey, a going couple quick of to so real

copays to the very specific those uptake referenced successfully a bit for little Americans programs rates. a can't not to the the whole talk average was that's tied in earlier, because we as about again, specifically. the here was, the or we've a stat while been quite first Caremark ESI about, one I as I on I the the want other beat talking caution again, to little think first And that thing we

to profiles with not, pay have We've I driving that's Second of lack the purchases and folks medications the really of and that fear looked what's really medication clear darn not low. is we the that's Sol importantly, something Pharma more at platform cash users or make incredibly point between coming funded that and want to today concept around is, overlap to is Man are medication respect at to think your I the different, and a overlaps relative pretty all. The overlap.

think only can really I as I describe way drug de the is it the level. minimis at

and future top Caremark's XX one look drugs that's in today program, and program, our the at would anticipate they we pay in and ESI the cash frankly, nothing. not fewer the our helpful, and we're impacted at users counts, As proportion user hopefully hitting this all. being particularly of about confidence up that it's non-ESI Hopefully, make almost very gives you that platforms much worried Caremark by that or the

Yes, very interesting stats. Thanks for color. the

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Thanks.

our we that one specific retailer, revenue admin that's on us. areas right, it then if layering category, bit, corporate were ways, platform that the additional the for share may effectively over at on both as share, retail, getting programs, volume volume immediate. goal through growth, margin time. concept is market a sense, continue partnership then And as top. and the in fee point-of-sale, having that's if and relative whether long-term builds have I'm you're you're economics, that volume of think but I and relationship I'd economics it's on different unit programs around the with gain and stacks we right it the retail unit stack with of again, volume retail general at is to little in payer some changing not three, as then And And of two the so showing much drug multiple then work share with can our tight on sure call versus and brand retailer layering day up right stability I at think those impact any

that for So, partnership really can savings the different investors serve which as network that scope continued our taking more the up more the and and stability volume. retail. patients then ways add in stacking strategy of around And shows this we at the about events, world, frankly distinctiveness and is and

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retailer of margin retailers medication, certainly see opportunities remember material I prepared the talked The admin of about, individual immense us. fee our that the gains of all we about out contracting. us we curves folks in individual in allows contracted us talked when thing mid-size of think we to cetera, gate. recently with to the Hopefully, direct remarks, with we as an us are elasticity the together Like getting have when them happen, data we volume And useful. independently or at the consumer terms specific fees the the of of all multiple working admin don't significant this is this that elasticity that amounts without we price generally. forms a add which to to an look value variables are as carefully retailers around in hurting setting it's we the there obviously, amount And it's is retailers et - just consumer take, here. much that the take, interplay to our that's our and consumer more to here need One's part just optimize price admin more versus the fee balance setting revenue, but by other pricing, independently. or consumer partnering really

Thanks color. ton the for a

Thank for you. next your moment One question.

Our comes for the on of Morgan line Craig Stanley. next Hettenbach question

is for taking on the for question. Thanks Craig. Yes, McCoy hi, this

having the flow spend. year. isn't through deeper might you kind it number Just want of I just going guys have spend. beginning to kind the I seen you to prioritize thought into seems but marketing to dig hear of that where a have want know guys you're a this marketing the kind to what's Thanks. year. you in going and this work not this it’s little some with like Karsten, of of know of marketing of spend come right of year, what bit that initiatives year you to want kind spend spending, at discretionary kind just

McCoy, question. so I appreciate much, the Thanks and

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it seen percentage marketing manifest as revenue. spend a of drop in You've

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line from Capital the comes of Markets. question RBC from next Sean Dodge Our

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moment our Thank for you. question. One next

Goldman Sachs. comes next from the line of from Our Sheridan Eric question

bigger okay. I'll questions Maybe ask much. so that's Thanks picture if two

the thinking mix XX what and when the to next commentary you're about align Thanks forward, First, when the of trying to couple on for structure shift the see updated margin strategy the put as sort Take next you And and final to you years? second, necessary executing key going care. over in investments then so tailwinds margin the be the to call? from businesses developments about any strategy looking you're you go we and standpoint, views to should where trying of the mix this months, or of a from on point much. some think headwinds how earlier that out a to longer-term of some out critical think of on now sort implementing about over of are six that would platform looking

Thanks.

In investments, I call it terms of reflects capability supporting what that do. would to we're trying

experience. point-of-sale couple of savings actually to work clean. And so, and I a the a point-of-sale a retail There's on our it partnerships product coupon things. make at One event customer this retail and call dynamic making of and with seamless engineering really part the a both clean is

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investment to from data to the And are it standpoint. and talk hand going to about the how margin an areas so, and the big we structure. retail around about experience I'm point-of-sale mobile think of Karsten really off

of and for is Yes, talk for margin the you gross about, From that low. think the high very a concept extraordinarily of our and are great Eric, important to we costs talked margins variable the that, thanks VitaCare question, I again. that folks our understand taking any to and on overarching very, to is cost aspect variable other than care VitaCare, business perspective, our already is

over look revenue. you the into margins, our before margins happened. the then EBITDA going when back XXs. PTR of our grocer to incident was at XX% pretty So, adjusted That deep and the grocer were incident,

significant dropped revenue return prescription profile, do the now seeing amount margin us entirely. almost that to the and business. flows again, a that growth of transactions gross out, in What given you're So, is through,

too. saw the out growth on cost number at has structure, nice in Scott number a this years to in few The up to I'll more and And turn and continuing guide thoughts we the that an the cost see that, in area, You we in with to to that two, variable accrete the case one, the happening last is fixed and over relatively when we'll this see accelerating implication year. addressing that last third means potentially with fourth of VitaCare growth, out relative quarter. especially taking see rate. thing And a associated margin we combined with, put quarters and come, he that that likely about overall

in come I'd incremental a was lot Karsten Oh, as like hitting to we point, just there's of strong, the grow. and flow-through

either the for but we through a high flow is the growth go-to-market and the see see to or be will that incremental down much you on margin how not as really So, high. one, possibility for growth, business to and decision absolutely to reinvest incremental return good flow-through the potential

think the to and we the We where next forward Thanks us. Thank question. for much. last quarter everybody, an for with are. being questions, so update that's giving you, look everybody I on

conference call. you today’s Thank for concludes participating. This

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