GoodRx Stock Is Plunging to a Record Low. Earnings and Guidance Missed.

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GoodRx

Holdings stock took a turn for the worse late Monday, after the prescription-drug-referral platform posted disappointing fourth-quarter results and weaker-than-expected guidance for both the March quarter, and all of 2022.

GoodRx (ticker: GDRX) stock plunged more than 27% in late trading to $20, an all-time low. The company went public in September 2020 at $33 a share.

For the quarter, GoodRx posted revenue of $213.3 million, up 39% from a year earlier, but below the Street consensus forecast for $217.5 million. Adjusted earnings per share were 10 cents, in line with estimates. Under generally accepted accounting principles, the company lost 10 cents a share. The company said in a letter to shareholders that the growth of its prescription-transaction business “continued to be impacted by Covid-19 headwinds, as healthcare-utilization challenges continue, and the cumulative impact of almost two years of reduced prescription starts—and therefore reduced refills—impacted new and returning users.”

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The problem apparently is expected to linger.

For the March quarter, GoodRx is projecting revenue of about $200 million, up 25% from a year ago, and well below the Street consensus forecast at $228 million. The company sees 2022 revenue growth of 23%; Street consensus had called for revenue of $1.02 billion, up 36%.

The company also announced a $250 million stock-repurchase program. “We are confident in the current and future strength of our business, and we are committed to creating long-term, sustainable value for our shareholders,” the company said.

Write to Eric J. Savitz at [email protected]