GoodRx (GDRX) 8 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the GoodRx Second Quarter 2024 Earnings Call.

As a reminder, today's conference call is being recorded.

I would now like to introduce your host for today's call, Aubrey Reynolds, Director of Investor Relations. Ms. Reynolds, you may begin.

operator. you, Thank and the everyone, GoodRx's Conference Earnings Good quarter welcome XXXX. for second Call morning, to

Joining for are and to our Karsten The for Voermann, as President me today's Executive portion EVP make team our our Chief today and as we the seamless Chief the Scott is Wagner, call, not Q&A Financial same Prescription but best Officer; of Mike audience. in our Interim Walsh, possible Marketplace. our location Officer; do will

we underlying to and All with trends proposition, and our ecosystem, our our call made our retail opportunity, do direct Before like considered will contracting in including, the limitation, program, contain of on savings that forward-looking industry, this and I'd everyone prospects, that be without matters hybrid statements capital business including begin, value remind call in changes and fact allocation including our to forward-looking our partnerships statements financial priorities. not goals PBM anticipated regarding third collaborations objectives, market performance, parties, ongoing our pharmacy should statements, strategies, historical integrated our growth management's long-term statements. relate and this approach, plans,

different by nor or promises any statements expressed are materially known statements. These risks, and future unknown and achievements but These neither results, forward-looking or implied other may our from guarantees, achievements actual be or to involve cause uncertainties performance factors factors. important the results, performance

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

In today's non-GAAP referencing will metrics addition, be in we certain remarks.

in nearest can be the found We release, have metric metric reconciled company's investors.goodrx.com. each our press Investor earnings at of to GAAP overview the on page the Relations website non-GAAP which

I'd also become call like this shortly replay will available a everyone of as well. remind to that

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

in thanks from joining like today second our a Thanks, Aubrey, and the us evolving. second about and of I'd and relevant of updates discuss quarter should themes the XXXX we GoodRx financials that care both half handful Day, our Investor everyone and of QX think remind the to see we to recent Today, talk at you investors to about industry results. share how

feedback operates, GoodRx appreciate clear our We for our we We how healthcare provide context Day. to the future. the first insurance landscape the for priorities GoodRx tried Investor at complements following received and which

shift all plates we're seeing retail. Right to now, continue in PBMs the and healthcare brand between plans and tectonic and manufacturers

XX-day at from save the manufacturers with year. until people use make need The is GoodRx that in professionals GoodRx value new XXX news every patients work at medication GoodRx Consumers right to with scripts medications to Pharma GoodRx Pharmacies the GoodRx keep ecosystem brand or every go available start. and to reduce more the consumers, to away walking patient for part to with precious prescriptions. their of that from the good pharmacy to time. their consumers. friction practically acquire use on money the counter save consumer get we work nearly they the Healthcare provide million and

million GoodRx XXXX, in times app visited our managers XX or consumers scale. and drug consumers XXX benefit prescriptions billion. and with times, us million is are to work page our patients viewed million with $XX gain value the saving finally, site our patients XXXX, that GoodRx believe We incremental And point in consumers about with of GoodRx's us almost volume. the about unique proof transacting In and filling pharmacy best price XXX lies and with

And We that XXXX. insurance our a commercially GoodRx of or is both almost XX% getting an the and more narrowing That's funded GoodRx. and thrive trends: and benefits. exclusions medication as increased of Medicare accessibility estimate years not estimated complex coverage fueled folks benefit XX% because that to have three users the with by who about insurance primarily it's two use planned funded insured their complement number is It's formulary becoming design through First, in narrowed.

up Second, the more XX% therapy prior three and with utilization management authorization step required medication years. in the last estimated access an to is

bear and Finally, spend estimate of to the out-of-pocket in was their that for over of drugs billion. the prescription direct cost the of We half total most more $XX importantly, patients first XXXX, continue medication.

ability means lower of medication regardless relevant of use status That their increasingly our and to ease access consumers and durable. to give at prices is insurance

and Doctors in directly in key They as they understand from the XX role manufacturers too. access week average spent important every a as visits need that healthcare get of completing reason offices platform plays benefit could consumers, consumers. professionals us patients drug medications like authorization, XXXX. XXXX, reach site Just received Brand and strong be app much are unique paying the them attention just helping do. an hours increased patients to XXX,XXX value the That's well, in healthier. healthcare GoodRx as from so GoodRx they their GoodRx's affordability and professionals to almost

for manufacturer page we first XXXX estimate unique savings our drug had a of GoodRx. the time on that our million alone, In very learned staggering XX% and brand platform via programs XX interactions visitors about

support also users retail pharmacies. Our

items Day. This over part estimate a value one we sets with the the pharmacy, they for our pick of X a of up $XX. during important a chain is healthcare prescription the foundation their front-of-store we half when major and spend the that retail consumers median of fact, priorities GoodRx purchased an In illustrates discussed Investor

grow distinctive, to relationship industry our X news recent users; constituents developments with proposition a key GoodRx a manufacturer scale value like our in and the winning priorities. strengthen solutions; to team deepen GoodRx two, frictionless these ecosystem; culture. experiences; GoodRx one, to I'd are: five, four, priorities handful in X end-to-end healthcare of Those build three, and build and share pharma relative

the can constituents ecosystem. help to our with of in value the first proposition on most On our strengthening centered communication been key models. pharmacies retail around them. Retail our the economically and healthcare priority, have and both we pressured pharmacies centered meaningfully We've network hybrid contracts direct investors and our with with been and solidifying our believe contracting efforts relationships PBM

direct for our pharmacy business, boost with revenue margins on shifted front rates from contracts on reimbursement and both As sales. funded the can and store on partners prescriptions our volumes of

have As Investor At date. individual and of to our new volume Kroger Kroger these agreement contracts contracts XX us, we seen on has with improving in their we've and revenue out varied full impact metrics revenue and slightly our book top an their with of level, date on implementation pharmacies of at have or the impact shared pharmacies aggregate been retailer accretive. to either GoodRx pleased business and their for some for Day, part. with X We're neutral

it is revenue pacing the cements on term, can the in results right term. of answer the While long terms fluctuate we approach for in short immediate durability, believe firmly GoodRx given network and our contracting ensures their this retail relationships GoodRx impact

tumultuous store a time. and shrink well. announcing had volume pharmacies retail their footprint indicating Walgreens and closures Store impact with that as summer Rite do immediate additional revenue, although over Aid closures scripts will GoodRx Structurally, migrate

as expect we to in trend that cash While tracking program in next the PBM positive isn't normalize to do the with result a migration. will patient's covered trend ISP where roughly this quarters, has to longer our relationships. such expectations the focused It's this price term might for through program ISP lower that line been integrating date, the generics-only reiterate few GoodRx continuing with be of drugs, the co-pay. benefit lives impact the pricing important of join closure current the incremental is on than into in a

partnerships. these continue expand successful on PBM we Founded our launches, to

GoodRx's & offering stable continues grow choice. Survey, effective covered strive that life across balance Patients traditional and brand-specific less outside by For friction and clinically example, and We pharmacies with cost-effective stakeholders. believe base impact positioned healthcare program for also programs also different win patient as and drive wrap with with cash noncovered better formularies medications. and programs clients value and with the around their to and meaningful fills with attractive to increasing with prices. PBMs uniquely GoodRx win to that win these as this benefit retail is brand This fills. of PBMs offer is on Smith reimbursements

approximately X% On Pharma Manufacturer our quarter. second Solutions, second the scaling priority, in year-over-year we grew key

co-pay and affordability Ingelheim where and signed deals in Those need program for on XX% patients. a significant exclusive Looking XXXX. the the enrollment price of assistance, with allows list is encouraged $XXX insurance GoodRx ahead, We're This GoodRx have pipeline of We're prescription offering over XX% in an with and patients can cash, high step largest quarter. for quarter, unique biosimilar, discount focused by problems categories big valid anyone start momentum of we're Boehringer brands, for with big access representing speed status HUMIRA brands in a affordability the we're over cash our therapeutic potentially one We've cash over since their in coupon, that we for signed a clients, a the burden cost working brands an programs to large with from include and signed Humira of pay in the the building half the up addressing with a price. and of muscle. for regardless and different have programs execution brands value. dozen XX solutions, which

second side. deals year-over-year discount by Dexcom relationship, pipeline extreme working and claims time urgency on include well other news our compound typically Some investor over are the build, quality point-of-sale new fills sign as and in these a Sanofi programs over implement talked Lantus encouraged XXXX of where throughout build perspective, evergreen that fundamental the good up with We're a Xx refills. notable the we've to device of we're From to about with as they're the that and rate. for XXXX and half with exit is and a to

as several alternatives access deductible to co-pay the it's quarters in well us scaling assistance interest cash to of manufacturers' and offering in pharma pay programs. as we these Now leverage on coming stack as

from In co-pay platform, surface, and and programs enrollments, fact, we're seeing manufacture leveraging tools. assistance market user volume and interest other trusted to GoodRx the manufacturers hub increased brand

that focused third professions. Our is with and been with increasing And relationship users. prescription GoodRx to always healthcare now an relationships the complementing we're We've on drug patients. consumers, focus grow with priority key our deepen on

offices HCP XX the relationships and strong increasing and kits from first our second on quarter provider over out very Score in in the of awareness increased doctor XXXX. We amongst HCP more reflected ship offices benefit We've XX% to into quarter assets relative putting digital our by we Net HCPs. XXx focus the Promoter marketing

Our of HCPs about of top decile our half drive claims.

believe can offices usage we drive unlocking over claims time. So more and that meaningful HCP incremental

many GoodRx quarter with and X% mitigate fourth then and priority, we've brand build session experiences. redundancy prescription-related and X visitor incremental frictionless outage We've risk. pages, year-over-year consumers. key We macro duration, Our over to increasing million distinctive, redesigned our the medication created of ended

CEO of the our Dell with fifth that I'm healthcare Board to Board add the Skype. from Patterson, team senior Ian to and of passion we we X and our the Clark, affordability. all In during patient and quarter Silver former Amazon, a announce future, and additional talent winning leaders and Genentech; to added members of Technologies experience key that we've member new priority, to former the we've for partner Directors, added Finally, pleased Lake culture plan a build announced underpins others. healthcare Simon

As few Karsten, in I comments hand financials. editorial to off a the

guide are our few sizable has expansion. EBITDA we that with as the quarters, We broad and with year deals, to what through possible. growth positive investors the want and prize areas EBITDA over We a of GoodRx they revenue planned share margin more flow to and amount growth by strong we promise. I As we laid areas available on appropriate brand to whether growth stack Day and additional and know, the incremental know business what targets programs, past for adjusted are profit this a some That's and for both the to collective users adjusted seeing today returned out long-term we're we're promised new us more XXXX balance that that or to ago on coverage to eye growth we'd based investors. growth think stand and impactful exit keep and of as we going what business focus for to Investor pursue long our over the goalpost those extreme at term urgency. optimistic

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

our before Thank results quarter you, financial guidance. second I'll review Scott. turning to

the EBITDA challenges margin adjusted the by to the above just in we second pharmacy also During revenue adjusted space our expected May, and year-over-year despite closures. again, were first Aid guidance and exemplified like and retail we revenue call be quarter-over-quarter, earnings the quarter provided was the quarter, on Rite it in up

revenue Total our as for prescriptions the to revenue to due growth $XXX.X year-over-year and pharma solutions. increased X% manufacturer quarter in well marketplace adjusted as million

to which Club included which we sunsetted reminder, Kroger a revenue last year included revenue fall Kroger July revenue our revenue XXXX. and offering quantify the second restructured vitaCare $X subscription million contributed XXXX quarter Savings second the from and in vitaCare this To offering, the in together solutions, of Club than As within the second contribute any on did and Savings QX. quarter of this from last more XXXX of manufacturer we in growth, quarter impact approximately not

to X% million, $XXX.X active in by X%, was million to consumers. prior which in Prescription Club. Savings driven $XX revenue the increase the expected, year XXXX an the to down grew declined revenue Savings monthly Subscriptions revenue less on transactions Club as Moving X% year-over-year due period. million of than revenue lines. of over was quarter the to in second $X Kroger wind Kroger primarily

to we quarter increased continue more offset discount last our point-of-sale approximately expand of our by growth programs. $X than X% penetration, from Pharma ongoing market year revenue growth drug including to driven growth Manufacturer organic relative in to revenue as the reduction million, $XX.X Solutions million vitaCare brand That second year-over-year shuttering. the in

was second compared million income in to of the $X.X Net of million net XXXX. $XX.X quarter income

the second income XXXX. quarter of of of million XXXX, from benefit in adjusted million, tax second an up net $XX.X recognized was Additionally, in million, the income we $XX $XX.X quarter

EBITDA in $XX.X increased by XXXX. our and year-over-year. vitaCare Manufacturer the line improvement The XX% was points savings million. Pharma restructuring from XX.X% up Adjusted Solutions year-over-year the and Adjusted of basis second to top driven primarily offering margin EBITDA XXX year-over-year was growth of was half

We due generated assets million cash by period, in to changes $XX.X of provided in operating the net activities QX liabilities. $X.X year compared and million primarily in operating to prior

the cash robust, equivalents Our balance sheet outstanding with cash debt. million quarter of in is and and ended we $XXX and million $XXX

revolving $XX untapped, million. and Our facility letters credit June as for capacity of liquidity except total is of XXXX, credit of had million of $XXX representing unused XX,

the to reduce the On million approximately our million quarter, gross $XXX the $XXX all million credit cash credit facility in debt, refinanced to and that topic second of we successfully the to and existing $XXX maturing facilities after our our XXXX on of debt XXXX. used extended maturity end of revolving million of $XX

for shareholders. Our maximizing value are capital high-return on to continue and and allocation investments we'll priorities focus unchanged,

to and ongoing in adjusted to to closures outlook economic including adjusted X% With the changes location between approach for $XXX and attempts guidance, expect pharmacy We and in approximately pharmacy account revenue respect prudent mentioned. currently Scott for representing million coming the QX million, our see ecosystem, $XXX we're growth. third revenue quarter the pressures, taking revenue and a

tempered 'XX. be prior line and our our versus rates Club in vitaCare this on Savings XQ Similar of year commentary about XQ XQ million last earlier sunset 'XX's results, 'XX because of as to contributed in year together in $X to expect growth XQ period year July, the to Kroger to we top more which my compared the 'XX

lower about growth full revenue fourth to million expect we to third end adjusted from the the our acceleration $XXX revenue at of revenue be range, the indicated adjusted the revenue and million $XXX XXXX, X% previously representing quarter. we year For expect to and

As pharma quarter-over-quarter bookings and in Scott quarter, Pharma accelerating expect in seeing result the year-over-year growth. we're momentum Solutions and said, that to Manufacturing sol fourth momentum we man in

to and we're not in clear look As sure we our make on I what guidance. we're want including forward, including

impact we We First, in file. the the approximately second impact XXXX store view revenue will couple we're volume of of with recapture a back time, Aid million third half in closures million the renewals assuming $X dollars back an though. on transient alone. have Over Rite as and quarter some largely system the on expect this scripts transfer as into impact get of to of

impact know Second, Walgreens XXXX. as we information do the has material do limited not announced today, well. anticipate store closures of Based amount on in we

Third, we with negotiate including medication pharmacies, pharmacies fill continue work PBMs as cash parties ensure to to economics that advocating for whether direct and economics. by sustainable not, or all are pay our contracted

are playing pay pharmacy PBM our pharmacies, PBMs a for outcomes cash role negotiations. by focused optimizing including on and We ourselves, in

Scott revenue short on GoodRx contracting As mentioned, term. immediate terms fluctuate in their impact pacing of in can the results

implied roughly For a as the rate earlier, percentage and Day, Rite I those to closure X% to anticipate Investor $X because million annual expected the growth comparing year part in growth of growth adjusted pharmacies X-year program and focused X% point contracting the store Aid and compound their Pharma our retail well target we XX% in medication mentioned Scott it rates including full below integrated offering. as adjusted volume impact, on Manufacturer revenue of direct our growing to accelerate. more with expanding will We're bookings savings brand as and our uncovered continuing enhance economics our on Solutions momentum revenue

expected and facing we're been a contributed believe the second confident reality revenue store included about have the XXXX. vitaCare approximately adjusted Savings million Finally, we which in Pharma by exit revenue which year, ISP $XX benefit also these as less We to included guide. of shuttered compound point-of-sale the drug Kroger inclusion both reminder, rate quarter. in as year to a our we're expect financial Solutions third adjusted Club half into XXXX. a and From how growth our revenue Manufacturer temporary from the branded We're Scott and in and be both and can which are in run expect of are XXXX both tempered full pleased EBITDA XXXX about discussed potentially earlier, benefit perspective, XX% also we XXXX margin to discount with momentum, in margin be the closures

top adjusted cost we degree of margin XX% That For and the XXXX in million generally. approximately XX% from a focus our and structure full flow-through up growth EBITDA over from efficiency from about our $XXX of continued of on expect and adjusted based approximately represents on year, expectations EBITDA, up XXXX. high line XX%

As GoodRx past few margin in we business. believe the growth has returned we to EBITDA growth this demonstrating potential quarters, the of inherent are adjusted

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

comes Rhyee Our of first Charles question Cowen. TD from with the line

did wanted there's vectors a these. just I Day thing mentioned roughly recall to fair where Scott, more resources you're you of to help percentile if talk top in, you it's across that ask, XX channel growth for the coming correctly, progress put And of if of channel. of all this macro. from your about HCPs HCP here, and you drive further lot at had MACs making of potential a say obviously, good was XX% that and are was sort the Investor we could One

and that and you're Just are how of wondering where the might in progress translate making more see macro? that into we we sort

as specialization set and geography, have and expect, about locations, would into focused highest the a that second we've, offices we can can in combination quarter, a As you pretty the of assets of surged the of we media we're the said HCP return. get in script, kinds precise on

equation assets, offices. lot do of media relevant putting the is the part we're hard which now, of a and HCP more As

to basis. where you bit It's way what offices more and things and we're assets that -- measure but XX still has like is individual getting the in but return expect cycle are sudden, immediately going them to, the a we're of XXx is And early we're we scripts seeing from put of little we're handfuls a points going to some in in not this days. really cohort proof of on longer it's all cases, return. lifting, And a good

So that's context. of lot a

to and It should a you that, field I for is a more of roll putting investment the in think to GoodRx. promise, in the community is, unique and the punch holds attention see lot we dollars we we're in build really unique into that channel continue some line XXXX. as in for ways,

that maybe on direct particularly gross Karsten. remind it side. Obviously, great A of PTR And PTR, in sort And have you if about margin move better you if of of under versus a I direct you can model. could of seems then of like momentum terms the of you particularly traditional into talked PBM that here, is lot direct under follow for the number maybe us a direct lot much you as is profile margin contracting. kind retailers how of Can Maybe GoodRx? size us help contracting up, contracting the is contracting.

first on direct This is Karsten. they all, To contracting, questions, where both margins roughly are. of your maintain to to equivalent we strive

expect And by contracts, But little So something margins consistent. levels. it that implement work the to we retailer little one. demand, pricing together consumer we can any and retailer. assess appropriate assess see to bit on overall, as or direct contract direct from resulting we retailers of consumer that create as margin don't relatively margin, is a lowers and be flux retailer contract other each Each we different our a given lifts necessarily though

revenue, And second increases believe talked of your volume, then. and grown you'll over the go it well our see a of we at too, because of Investor since to I part as -- contracting percent direct to Day, that, being XX% as it's about question,

MAC. significant seen PTR per in flux haven't You

the but more into of contracting, and And is to seen I'd degrade that factors ISP potentially other a future, it's bit like than function it of expect You've a say. single-digit period-over-period, it little see percentages. we'd direct continue

from question Gill of with comes next Lisa JPMorgan. the Our line

store to follow want the just your with around I for Rite comments up closures Aid.

is closures, direct So this the think this when about a because contract. store we is

if have recaptured would relationship. because down in it way to the go if going just to would try to And they CVS think street, that I GoodRx traditional some volume, be the you the a lose so user, it was other that therefore, you're same

to understand And to Humira So can then that? on wanted you help follow up on your biosimilar. I secondly, one, just comments me

idea give you've If the just great? an us be on what you of on side could uptake that seen would

first I'll don't take why and the the second. take you Karsten,

to yes, one health strengthening respect Aid, pharmacies Lisa, Day with constituents the was at that's key Rite value particular. talked priorities the of about ecosystem we proposition care and in to our Investor in

are that contracting. We direct through and doing hybrid

pharmacy can So economics Rite Aid direct in stay be contracting That really healthy issue said, in situations mitigated. isn't Aids like the Rite intersection of the here.

Rite expect to written the prescriptions on here have are is over stores occur, What's not it's that the fill of same specific we are really and our and when be that to consumers number scripts growth the or few store closures being believe closing. kinds them. happening to and We will impacts two Aid quarter more impact will a next a because or long-term revenue the meaningful temporary of

did with And what stores impacts. as different as associated closed that I know, particular, closure pharmacy well, the larger you in specific and is store by We've chains, mean store different stores and chains, different that are mix pharmacy closures. other Aid because GoodRx. closures seen of stores impact geographies material associated kinds those on have with their of not is a and Rite

situation. impact than bigger from a pharmacies see we a reason real similar that the we potentially other from Rite would Aid be might that's emanating in So

including our thing consumer ties that significant we, years, that on here that that consumer final last to over Again, engagement. the us Day. programs valuable efforts efforts out relationships other think consumers undertook into for redirect to Investor on them engagement, the growing at building is talked gating and we few it say and to I are And to now deepening us users pharmacies. and rewards because them register The consumer allows having and reach

they're see situation as unique we in differential the situations other concentrations in happen? Aid might that Rite the from closing stores geographic yes, So that

term positivity, with I'll it's slug I Scott. second the and more the by it, you're up short call then pick which in part. thematically, term, we maybe general. Lisa, is and are long getting BI the let's And deal guess the where brands represented

Specifically an with of biosimilar to biosimilar relative a the exclusive kind first, about nice an extremely our large What's cash pay I programs. to is whole cash opportunity what status biosimilar this of of category this at insurance prescription, anyone GoodRx. GoodRx for price do able is is this and first going big with is believe with BI, think $XXX we to just regardless that is be these

so dots covered. brands, And to hope place first extension of with there'd is back year really themselves XX% things starting more plant the many the evidenced this connect to And do as And directly in in to unique and started of is cash and in we XX from the now would those be not MedImpact uncovered that by come. to biosimilar is to these affordable we the programs of bring on brands. point-of-sale the over both deliver we broadly, into ISP brand be can GoodRx more which consumers an cash price have up expect brands just where we're might these that different one

hopefully, but lot a come. So to there's biosimilar, this first the more was

Anything around the number that, us can on or uptake like give you Scott? a anything around

of -- And will, one as It's super again, this going a can the pretty kind itself, changer," of certainly theme of biosimilars the in by of "model more itself. by they early, itself this in but call these itself, this and more and to can this meaningfully. programs, stack wave broad a isn't of you Lisa. start you what isn't be. But to category by build tidal change But isn't

Ransom Raymond next with of line question James. from the Our John comes

three 'XX solutions. that for I'm at about the should rate, the into lines your jumping in look you interested be When particular, exit thinking how XXXX? of we In business manufacturer

the year-over-year This is of X%. seen and is about QX XX% year. But speaking. note rate lines to point, you'll growth said, about With last was we've respect that growth manufacturer QX Karsten rate rates the that solutions business from and specifically, in accelerate year-over-year to growth your in

and we quarter looking rate on expect an basis. We expect third exit into fourth accelerate and it growth that to be to quarter

look it well described at we'd we annualized, When that we ranges Investor the to at into see Day. expect it

XX% XX% above the So growth XX% specifically to more rates growth the rate. or

the In forward to look solutions that quarter quarter growth. pharma the we a fact, implied to manufacturer third believe as guide be the year fourth of will in the and revenue significant contributor and end to we growth ramp from

X what driving hard. we're focusing over quarters, that's on the coming business And that really

and point-of-sale signed the medications those and you revenue that we said, around more deals Scott our Scott will and others over discount have converting for talked to all that about we've differentiated into sweet coming ramping particular, a that As spot in deals devices us, see. branded been quarters and expect see

points, I'll top, the and over programs deals the assistance it which But to and and year, plans to brand from a to pipeline. that and to got feedback lot but a rate. to we've between things different reach of XX% the the bunch got nailing into got is up rest signing keep funded add. keep deals now both obviously all more quarter run second to rate sort of then of them editorialize up with positive, in we've signing urgency. of We and of do I'll we've just whole is programs, proof got ways activity get into these keep the the the growth announced the year-over-year co-pay

there guy? bad EBITDA And gross margin guide And like-for-like just million-plus that come think about that is should Aid so think the sort missing usual Aid kind $X with there? of $X about the rate, hit? almost Rite Rite being Does attach we a Or EBITDA follow-up. jumping over of something so is guy. we specifically million bad I'm your If my

the it, an looking too. that's That's think about we're John. way at way it, think accurate to I

from driving bad the mitigates leaves we're in we're flow-through generally And on you efficiency And Aid us that I the So what said. and seeing up growth business. exactly net guy adjusted that's Rite on think EBITDA.

So you. hopefully, for I'm confirming

the question Barclays. next line Davis Stephanie with of Our comes from

contract I it bit embedded in hoping a to ask since the more the than your more was looks about website. little bit contract biosimilar prior a

embedded fully manufacturers to with your versus I'll look as a transfer get and feel more the the So deals we about eventually could it some forward how few clicks. think become these current and deal should of with brand website. you

one these into if flows each of right There's more keep of but each to standpoint. It mean and have from through And -- them. we some cash I them to and work embedding around XXX%. have may handoffs these Scott. co-pay manufacturing enrollments may trying that not can again, about about thinks add with now, you're few again, partner whole bunch hub a we're simplicity and adding assistance just the we're if experiences walks e-commerce it's that Stephanie, of each programs, talking an system. a steps.

So we'll not those with keep as these to of both make with seamless as every possible, brand programs. one just trying but BI, single

bit little this friction the trying just guys have deals the it embedded getting sort [estimated]? market? the to point what's there headwind a want you get having to brands Scott, be in or faster a that to to prevent have biggest good is you And would some that from more Is construct? or more of Or maybe ownership

would only are by it's and think or have partners as of level API in how they of have. out that capability what either how brand who not take working ready possible easy little as -- that cases, to some we're In some integration stuff. be of they to this, I tech and outsource to both make speak, used they they a bit brand

think right can ahead... over that happen and the jump of sometimes go it we So yes, towards sometimes -- time. I work out do

Continue. no. No,

really thematically, you if going another enrollments one I it's is not when workflow. sort clean of navigate hub to ever go world If that from the experience. to to think to brand and about embedding certainly assistance anybody talk programs brand, start a co-pay promise of tried actually these is So was say, you lot a I

part GoodRx embedded And qualification of us. just assistance could is kinds enrollment the either promise of take into that, of that we all and

on but talking are at of things is the want I'm that they platform programs. with of do us and capability obviously because really our partners, brand people look interested place with longer to and our are really to a little affordability to we going one our So that the that work big any term, are kind

Jailendra question Securities. next of the with comes from line Truist Singh Our

Singh Securities. This is Truist Jailendra from

existing from PBM their this currently employer your program expected interest to curious across your our year? across million population, platform been And there in potentially ISP-related I the on the the feedback addition formularies. in if of on and got any are As XX on contribution can to you clients the employer expand selling of who topic, partners heart feedback are to ISP willingness more drugs new the the change any same has from was share employers from season, in you've any on we level

integrate they're topical deal. is us BI, want with a It's that interesting. to partnership part It's to our to the going that employers of one. be introducing BI into biosim

that's that be we're repeated over, can with be not but hopefully partners. our a honestly times potential only flavor current, cash BI not is but many BI, So to with additive doing just going and of also what

to employers for about if first So or they other we're having nice our with actually non-formulary along thinking of as partners, own step well. their those introductions these are cash is awareness quite with potential the of make where discussions a some lines and you programs starting think BI those pharma generation frankly, drugs, in some of

ISP. question, to on live. To your this speaking. is more just stage vectors Karsten in growth bring had and more earlier ISP-specific employers PBMs this jump more we include about Scott, momentum and for talked on, Those bringing Jailendra And on

increasing talked the One of we dimensions other formulary. was the about

their which GoodRx was medications. of we PBM MedImpact and we've to co-pay exciting, with is wrap ISP do or at case traditional something routing note covered very it's what clearly here, because the among that's the the in routing prepared this other incremental in important now ISP to off-formulary the is Jailendra, automated on think come important for that focused does call concept the on formulary to didn't incremental we script, price And same member PBMs lower announced I remarks, a signed wrapped the it automatically out in it deals

a that formulary gets more off at generic a can as are be a maybe formulary prescribed your generics other be isn't that's put therapy hurdles you happening just, step off that or formulary. might that that or drug in even and and in more price a because that of So brand consumer or can even place now lower frankly, get

that an have will that's So going forward. to expansion we impacts ISP foresee that

signed Now these deals. just we

see the with lot important we in don't and an impact, a phases, the we that this of just cetera. So asked But step. momentum where to is given you about, respect are XXXX deductible year, et people's ISP

the push now. on loss weight coming follow-up these list how companies And with related to given you pharma about consumer a demand like off drugs GLP-X quick do relationship your A think shortest from positioning your especially you actions and positioning with your Novo, your the tangible And product compounding? their manufacturers these business PMS do environment? given noise you there? how in more aggressively all to some Are expecting on marketing, that into see branded

opening of is their time, Scott. manufacturing consumer is of, the problem Lilly I'd and now, first Well, product a and again, This certainly fulfillment which obviously Novo, long, it, call this all, biggest to obviously, the maybe one is compounding. innovative, the right in not is the if most category category iPhone door since long and

themselves. believe how nice working direct the and ways think think ton constituent, both to unique of want for that's capability in now. And really as spending we're we're those what to think our with great And go companies these right can It's with a direct, for because Lilly about Novo now, to gosh, of and hand-in-hand obviously and a to we're we consumers, both working a us brands as start them. add Right they we we to do GoodRx. business and start today companies time in they do through may business with

with comes Schoenhaus line KeyBanc. Instructions] [Operator from of Our next Scott question the

were maybe this employers you that healthy ahead volumes I of Or when XQ? standpoint more of What's running function believe driving year better have would a you deductible less a continued is into bit little coverage? mentioned expectations. of it Is in a cohort be of it the more the prepared and seasonal robust maybe this? remarks in the that ISP rest insurance thought from volumes

probably Karsten say On necessarily ahead. I for Scott. roughly in with on it's ISP, our hop the question, wouldn't here. can in expectations. I that Yes, one, Thanks line running

we year we are our in of accurate has a a pretty were we happen seeing for see program. think us forecasting what expected number of the I been And as this progressed. that's to year, the plus associated with that's something significant So been though lives for

has which ton system patients, of one. And with the for you and And gosh, for only we but our date. a we're that, that ISP, brand of to value adding itself. it's nonformulary something to I'll little top made Relative MedImpact coverage think just for been It's Karsten a the for saw for come this a the system. drugs, first in Karsten opportunity over hopeful important whole the earlier, and an brands, point excited the It's we're that it's expansion big to this a of category time, about. certainly is generics

from the Fargo Securities. Stan of line Our question Wells with next comes

maybe into I'd impact. dig the of like the Aid to Rite mechanics

you the have a number it a I'm Rx, if card get is that to store about closed, routed location. doesn't the is if thinking correctly, So implication and the GoodRx on file different the

need that the essentially, discount using with the card. a you so GoodRx reengage correct? consumer to And different pharmacy Is

of with they're question the one not the said to lot closures. is mix a is reasons Lisa of that and it this the the is case of in store did all issue. always headwind Gill's that Rite specifically because this is And answered way that tied I Aid's the Yes, closing pharmacy --

or associated in their in, while about selling of cases, geographies pharmacies. And pharmacy switch do other talked chain. some different I likely to some think you're Aid If these some Aid of to Rite stores they're you it a consumer with and shifting data actually Rite need to the

process. one-for-one a not That's effective XXX%

the of which the So new we some their again, presenting as them do recapture we a stores described, we you significant through at Aid fill pretty going to shutting don't process while they're And them card to where see unique recapture because GoodRx scripts geographies of all the down. mix of of go pharmacy that Rite and number users, they're the given stand. is the need their

other chains. by store closures kind impact the in same seen haven't We of

comes UBS. next Caliendo Our from line Kevin the question with of

I in would I'm helpful. any seen to around don't between if negotiations we've way, the you you NADAC on how pricing business that reimbursement. pay about that your pharmacies PBMs in necessarily, directly in although Medicaid want involved were are wondering, that be just that changes the understand you cash and in clarify you side affect talking

if not I marketplace. in or PBMs And don't their of I'm wondering any in to affect are any with it. pricing know and if to negotiate it's happening NADAC any pricing using the what's tied other of NADAC they way how

it's Just effect PBMs any on behaving. having wider interested how if know other are to

in jump is Walsh speaking. I This Mike can Yes, here.

to think on pharmacy clarify, predicated with are that retail partners NADAC. we agreements I have do So

and So and off an GoodRx industry-wide use a that for can helps us to that adequate helps pricing pharmacies benchmark us that get work nice grow is to is of. establish really reimbursement pharmacies and benchmark

So to impacted and ourselves market the been partners. your in fluctuations has there our some point, with have pricing NADAC that retail

the to getting are question that certain note, part And agreements, there PBM together, agreements gotten we're we've as this say, that is it point But of of your kind are along them. state. there we're PBM I NADAC. think around was network well so yes, I second working and our good to based a temporary steady where we're within all pricing although evening out on I and -- through news think chop, the a would And we're that in with

become I pricing set across to a think it the standard really industry. benchmark has

and is something we as directly partners we've PBM do seen that both it So with our well.

from today, the as And earlier if we of number the some it come not Mike the top, actually at to But GoodRx agreements sort prices beginning movement year. choppiness our NADAC year or in said, very one. pricing get all. with just to you equivalently and a see, given over to did NADAC the that. pricing how to ratio at in look set number two, significant the yes, little Kevin, directly is of of And doesn't move on

future, So forward in into all. at as numbers we or putting the impact look a out not is big that a factor this we're the guide our big of not any in

of Our of next from Bank comes line the America. Allen question with Lutz

rate the said can Scott, on something, with your close start drug to would it's it's all about around XXX% the be PBM's formulary. want isn't I to formulary, what PBM's you to talk rate? ISP that I when the assume would wrap. win relative If a

higher So there? the be much of on can how any will rate win context provide you type

need would And Rite the you're different a Walgreens to business a then goes the their of and appreciate same if on you were all commentary need follow-up, see as Aid Aid their Rite where would the store type quick I you closures, specifics pharmacy? around business. to the the script If with there seeing consumers dynamic reengage

probably in. of start those can we then very I take to all, recently. and wrap, first deals On signed wrap jump probably just Scott the will

on As them you saw, announced essentially this we call.

So off healthy from be don't could the formulary, that that we rate perspective, point, is anticipate to something your if But win we quite indeed. ton have a of trajectory.

chain seen that's second of and the already point this mix our store non-Walgreens of non-Rite closures a we another and business. pharmacy, in lot. impact that the Walgreens, we've seen the case your year store closures matters Like doing around large To number materially Aid haven't a and

possibly could It there geography to know and be. much specific is impact really store-specific how

and Walgreens, approach in of with will things ton be specific based that prudent room enough left don't locations, at point a like will time, number specificity. a or think But it. point work we isn't this taken -- We have material our far, stores so this assess information that impact. there at we've for to to So some a think guide for the in guidance on to impact the of able timing on

into. you to Scott, get want I think

first little cash program brands this and noncovered flywheel Back with PBM. between programs your part, a with to these the there's a formulary kind Allen, of

rate we we our pretty increase at for get And do consumer So get drug. be that programs, brand we'll more into look our be programs as right? there bring cash should We'll example, to the these them upon more some and all will meaningfully. cash might be our non-formulary cash non-covered obviously, higher, conversion depending But offered or of of price, walkaways. every cash a look, as conversion rate price a affordable that will that, then more

of from the Our Hettenbach comes Stanley. with Morgan Craig next question line

This further claims has flow -- per ramp With I'm curious into the and expect year MAC is will influenced now trends well, the programs Craig. how expansions so far? all? Jay and those since for the ISPs to MAC how you PTR are as those ISPs to with on sure as the if And do count into evolve

and perspective PTR a per seen Q-over-Q. Y-o-Y I'll relatively X% now, this but per MAC MAC Y-o-Y up you've MAC count up MACs be seen take effectively is perspective from right one. per about flat a PTR as you've stable. and well, MAC PTR From

their the user may deductible GoodRx ISP a do the contribution have who down more little First of as then of ISP users And because secondly, hit potentially due the phase, year both first of ISP per period our function half well. all, people long being in a the drifting outside in PTR ISP stasis in point I than claims think I'll time. that to as certainly versus the term that higher over be we use reaches of And MAC ISP can make a some see as regularly from second a bit level. particular half

though might of PTR because smaller think, and per quarters. for be seen, number the do low effectively, denominator, the forward, ISP MAC I like PTR come of points I now, as going So be perspective increases But from single-digit of we've of said, users course, reduced would we potentially MAC ISP example, you've claims in be more drifting percentage in down with the numerator as it numerator a per the that effects our on. MAC of for the per flat, see little previous seen

line comes with question the Citi. from next Daniel Our Grosslight of

them lawsuit I lower receptivity for seen screen are GoodRx their ISP. guys the filed employer benefit? to actually from versus the these there you drug employer lawsuits some are benefit. drug about mismanaging And that directly how might ISP up that that, now you have shield I'm given took chatter the So to the from adopting of lawsuits you're the wanted to if We've think in curious funded benefit? shots increased would market much against back self-insured the mismanaging popped go from out hearing to second what show about employers,

insurance a maybe to plug Scott. their -- it's just consider their to commercial every Well, employer as Daniel, a benefit. to GoodRx to offer complement this

the certainly a the today a more commercial is showing I working should become What almost there think be like structural no partners value And honestly, reason with hopefully it's this we're to doing PBM the to benefit. as can't prop. complement that in that, bring sidecar industry.

that cost have and we date, complement we these PBMs to can not will on plans about how own. direct be had date, that should certainly thinking some To spending with that discussions the time something ways, we're to thinking and We've not employers maybe existing our that to doing introduced done be employers and were there's them. but through how and the what no

with Our Jack next question Guggenheim from of comes the line Securities. Wallace

and much, the baked footprint, about pharmacy from the impact for Thanks Analyst closure the trend guidance store of closures chain? into last Day, going pharmacies of forward. Aid Remind grocery you could a the if And kind just co-located the at or the retail through of any, a impact that then consistent retail laid much your of of you're the us get multiyear your to a distribution out maybe shrinkage general just issue. quantifying Rite year. appears a we thinking by the years, guide? outright this how couple context for stores say, So the stand-alone owned is pharmacy it retail better versus, be for How

This is Karsten.

grocer Post the and is share which don't have prong of first retail their really market to over relative the pharmacy. versus issue, significant we prescriptions On retailers generally. different under-indexing Kroger

most large Kroger have for part, heavier us. bit has saw retailer over/under-indexing the But that's you the for away. during that We here one a the gone largely

with So probably the first I think helps that question.

our question, second to on respect Day the and With closures. the Investor part of

Aid lot. think It's is, is was closures didn't a came stores, bankruptcy the specific the the Investor specific locations, really courts a in information also by petition do timing out happened, have reality of post store accelerated we and that the our now. when accepted when Rite I that's lists June lot the we Day and of

is for X Investor about that dimensions those new June. would that then, the of information to a happened the that reality later in all part in Day been And mean that's Investor We did really our have happened nice since us, have at June/Xnd May, Day. but month information

So distinguishing that's what we're here.

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

follow-up your actually box by can the Most initiatives questions relates the non-big answered use channels big likely would of given retail, partner my guess help more been my non-large GoodRx the I comment that pharmacies. to of kind just you on to box out it have as and or to or they retrenchment more gainers to chains? given GoodRx, accept independence be large are be, share

benefit of we're hasn't lot done This run to we spending the in absolutely to independents and active then as are simple date, is all pricing out of we locations. And time it. historically, a at independent into go independents. industry GoodRx throw with the allow program -- would the that we've of GoodRx on independent reason would Scott. couple with There's I pilots more next a the and year access can't their There's pretty no with a to that association. of to pharmacies And flavors couple us have marker

economically do it in way. And an productive

independents big GoodRx. reason be vibrant, shouldn't they a -- that part thriving shouldn't been a no date, And so have shouldn't good on that platform, of we GoodRx independent independents that to obviously, position but the for there's be haven't and

maybe So that year. go collective quickly can take a really as next to we get we challenge into as there

create medically that to volume is for about drive margin profile relating system profit in help as a drug drug appropriate their incentives on The have attractive only talked can behalf. all the and situations quite George, brand particularly add, of pharmacies I'd Scott brand and us buydowns brand some in that manufacturers be thing the to of that for things

the to degree. see swage we concerns think manufacturer to our has I business as solutions man pharmacy of historical that something brand potential sol, a again, independent once drug part So the

Thank I'm now you. closing gentlemen, in the for I back the remarks. and queue. call Ladies to showing would further like questions to no Scott turn

next everybody, appreciate forward joining questions. speaking a and Thanks and with for look bunch. Thanks, we the else individually everybody quarter. of today. for you to all. operator. Bye us We Thanks it, some then Thanks,

gentlemen, for this Ladies Thank concludes participation. call. your and today's conference you

disconnect. now may You