gdrx-10q_20200930.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                           to                          

Commission File Number: 001-39549

 

 

GoodRx Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

47-5104396

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

233 Wilshire Blvd., Suite 990

Santa Monica, CA

90401

(Address of principal executive offices)

(Zip Code)

(855) 268-2822

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, $0.0001 par value per share

 

GDRX

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of  November 9, 2020, the registrant had 43,925,062 shares of Class A common stock, $0.0001 par value per share, and 346,357,135 shares of Class B common stock, $0.0001 par value per share, outstanding.

 


 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to statements regarding our future results of operations and financial position, industry and business trends, stock compensation, business strategy, plans, market growth and our objectives for future operations.

The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part II, Item 1A, “Risk Factors” in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2020. The forward-looking statements in this Quarterly Report on Form 10-Q are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this Quarterly Report on Form 10-Q, whether as a result of any new information, future events or otherwise.


 

SUMMARY RISK FACTORS

Our business is subject to numerous risks and uncertainties, including those described in Part II Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q. You should carefully consider these risks and uncertainties when investing in our Class A common stock. The principal risks and uncertainties affecting our business include the following:

 

Risks related to our limited operating history and early stage of growth could materially adversely impact our business, financial condition, and results of operations;

 

We may experience lower margins as HeyDoctor continues to grow as a portion of our overall business;

 

We may be unsuccessful in achieving broad market education and changing consumer purchasing habits;

 

We may be unable to continue to attract, acquire and retain consumers, or may fail to do so in a cost-effective manner;

 

We rely significantly on our prescription offering and may not be successful in expanding our offerings within our markets, or to other segments of the healthcare industry;

 

Our business is subject to changes in medication pricing and is significantly impacted by pricing structures negotiated by industry participants;

 

We generally do not control the categories and types of prescriptions for which we can offer savings;

 

We rely on a limited number of industry participants;

 

We may fail to effectively differentiate our offerings and services from those of our competitors, which could impair our ability to attract and acquire new consumers and retain existing consumers;

 

A pandemic, epidemic or outbreak of an infectious disease in the United States, including COVID-19, could adversely impact our business;

 

If we have overestimated the size of our addressable market or the various markets in which we operate, our future growth opportunities may be limited;

 

We calculate certain operational metrics using internal systems and tools and do not independently verify such metrics, and any real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business;

 

The telehealth market is immature and volatile, and if it does not develop, or if it develops more slowly than we expect, the growth of our business will be harmed;

 

Our telehealth offerings depend in part on our ability to maintain and expand a network of skilled telehealth providers;

 

We may be unable to successfully respond to changes in the market for prescription pricing, and may fail to maintain and expand the use of GoodRx codes through our apps and websites;

 

We may be unable to maintain a positive perception regarding our platform or enhance our brand;

 

As a result of material weaknesses in our internal control over financial reporting, we may not be able to accurately report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our Class A common stock;

 

Use of social media, emails and text messages may adversely impact our reputation, subject us to fines or other penalties or be an ineffective source to market our offerings;

 

We may be unable to accurately forecast revenue and appropriately plan our expenses in the future;

 

We depend on our information technology systems, and those of our third-party vendors, contractors and consultants, and any failure or significant disruptions of these systems, security breaches or loss of data could materially adversely affect our business, financial condition and results of operations;

 

Government regulation of the internet and e-commerce is evolving, and unfavorable changes or failure by us to comply with these laws and regulations could substantially harm our business and results of operations.

 

Our business relies on email, mail and other messaging channels and any technical, legal or other restrictions on the sending of such correspondence or a decrease in consumer willingness to receive such correspondence could adversely affect our business.


 

 

We face the risk of litigation resulting from unauthorized text messages sent in violation of the Telephone Consumer Protection Act;

 

Actual or perceived failures to comply with applicable data protection, privacy and security, advertising and consumer protection laws, regulations, standards and other requirements could adversely affect our business, financial condition and results of operations;

 

Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited;

 

Our management team has limited experience managing a public company, and regulatory compliance may divert its attention from the day-to-day management of our business;

 

If we are unable to attract and retain well-qualified employees, our business could be harmed;

 

Future litigation could have a material adverse effect on our business and results of operations;

 

Restrictions in our debt arrangements could adversely affect our operating flexibility, and failure to comply with any of these restrictions could result in acceleration of our debt;

 

Any significant interruptions or delays in service on our apps or websites or any undetected errors or design faults could result in limited capacity, reduced demand, processing delays and loss of consumers;

 

We depend on our relationships with third parties and would be adversely impacted by system failures or other disruptions in the operations of these parties;

 

Changes in consumer sentiment or laws, rules or regulations regarding the use of cookies and other tracking technologies and other privacy matters could have a material adverse effect on our ability to generate net revenues and could adversely affect our ability to collect proprietary data on consumer behavior;

 

Risks related to our intellectual property could materially adversely impact our business, competitive position, financial condition, and results of operations;

 

Risks related to the healthcare industry and healthcare regulation could materially adversely impact our business, financial condition, and results of operations; and

 

Risks related to our organizational structure, including agreements and relationships with significant stockholders, could materially adversely impact our business, financial condition and results of operations.


 

GOODRX HOLDINGS, INC.

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

1

Item 1.

Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets as September 30, 2020 and December 31, 2019

1

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2020 and 2019

2

 

Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) for the Nine Months Ended September 30, 2020 and 2019

3

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2020 and 2019

5

 

Notes to Condensed Consolidated Financial Statements

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4.

Controls and Procedures

34

 

 

 

PART II.

OTHER INFORMATION

37

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

37

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

78

Item 3.

Defaults Upon Senior Securities

78

Item 4.

Mine Safety Disclosures

78

Item 5.

Other Information

78

Item 6.

Exhibits

79

 

Signatures

80

 

 


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

GoodRx Holdings, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

(in thousands, except par values)

 

September 30,

2020

 

 

December 31,

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,075,024

 

 

$

26,050

 

Restricted cash

 

 

2,900

 

 

 

 

Accounts receivable, net

 

 

63,518

 

 

 

48,129

 

Prepaid expenses and other current assets

 

 

39,630

 

 

 

12,403

 

Total current assets

 

 

1,181,072

 

 

 

86,582

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

16,757

 

 

 

1,860

 

Goodwill

 

 

261,116

 

 

 

236,225

 

Intangible assets, net

 

 

39,225

 

 

 

21,267

 

Capitalized software, net

 

 

15,400

 

 

 

5,178

 

Operating lease right-of-use assets

 

 

29,318

 

 

 

32,315

 

Deferred tax assets, net

 

 

1,687

 

 

 

2,207

 

Other assets

 

 

2,230

 

 

 

1,162

 

Total assets

 

$

1,546,805

 

 

$

386,796

 

Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

14,014

 

 

$

7,851

 

Accrued expenses and other current liabilities

 

 

36,093

 

 

 

15,556

 

Current portion of debt

 

 

7,029

 

 

 

7,029

 

Operating lease liabilities, current

 

 

3,029

 

 

 

2,937

 

Total current liabilities

 

 

60,165

 

 

 

33,373

 

Debt, net

 

 

688,891

 

 

 

663,893

 

Operating lease liabilities, net of current portion

 

 

34,424

 

 

 

37,129

 

Deferred tax liabilities, net

 

 

1,772

 

 

 

 

Other liabilities

 

 

5,144

 

 

 

2,974

 

Total liabilities

 

 

790,396

 

 

 

737,369

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

 

Redeemable convertible preferred stock, $0.006 par value; zero and 130,000 shares

   authorized at September 30, 2020 and December 31, 2019, respectively; and

   zero and 126,046 shares issued and outstanding at September 30, 2020 and

   December 31, 2019, respectively

 

 

 

 

 

737,009

 

Stockholders' equity (deficit)

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 50,000 and zero shares authorized

   at September 30, 2020 and December 31, 2019, respectively; and

   zero shares issued and outstanding at September 30, 2020

   and December 31, 2019

 

 

 

 

 

 

Common stock, $0.002 par value; zero and 380,000 shares authorized

   at September 30, 2020 and December 31, 2019, respectively; and

   zero and 229,750 shares issued and outstanding at September 30, 2020

   and December 31, 2019, respectively

 

 

 

 

 

460

 

Common stock, $0.0001 par value; Class A: 2,000,000 and zero shares

   authorized, 42,922 and zero shares issued and outstanding, at September 30, 2020

   and December 31, 2019, respectively; and Class B: 1,000,000 and zero shares

   authorized, 346,357 and zero shares issued and outstanding, at

   September 30, 2020 and December 31, 2019, respectively

 

 

39

 

 

 

 

Additional paid-in capital

 

 

1,848,549

 

 

 

8,788

 

Accumulated deficit

 

 

(1,092,179

)

 

 

(1,096,830

)

Total stockholders' equity (deficit)

 

 

756,409

 

 

 

(1,087,582

)

Total liabilities, redeemable convertible preferred stock and

   stockholders' equity (deficit)

 

$

1,546,805

 

 

$

386,796

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

1

 


 

GoodRx Holdings, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Nine Months Ended

September 30,

 

(in thousands, except per share amounts)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

140,453

 

 

$

101,745

 

 

$

397,156

 

 

$

274,968

 

Costs and operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, exclusive of depreciation and

   amortization presented separately below

 

 

7,540

 

 

 

3,396

 

 

 

20,383

 

 

 

9,420

 

Product development and technology

 

 

15,846

 

 

 

7,844

 

 

 

38,133

 

 

 

19,480

 

Sales and marketing

 

 

65,113

 

 

 

44,950

 

 

 

180,195

 

 

 

122,639

 

General and administrative

 

 

108,479

 

 

 

4,102

 

 

 

120,698

 

 

 

10,165

 

Depreciation and amortization

 

 

5,160

 

 

 

3,609

 

 

 

14,026

 

 

 

9,355

 

Total costs and operating expenses

 

 

202,138

 

 

 

63,901

 

 

 

373,435

 

 

 

171,059

 

Operating (loss) income

 

 

(61,685

)

 

 

37,844

 

 

 

23,721

 

 

 

103,909

 

Other expense (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income), net

 

 

1

 

 

 

(4

)

 

 

(20

)

 

 

(3

)

Interest income

 

 

(24

)

 

 

(271

)

 

 

(140

)

 

 

(580

)

Interest expense

 

 

6,264

 

 

 

12,773

 

 

 

21,697

 

 

 

39,452

 

Total other expense, net

 

 

6,241

 

 

 

12,498

 

 

 

21,537

 

 

 

38,869

 

(Loss) income before income tax expense

 

 

(67,926

)

 

 

25,346

 

 

 

2,184

 

 

 

65,040

 

Income tax benefit (expense)

 

 

17,894

 

 

 

(5,727

)

 

 

2,467

 

 

 

(14,219

)

Net (loss) income

 

$

(50,032

)

 

$

19,619

 

 

$

4,651

 

 

$

50,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(50,032

)

 

$

12,616

 

 

$

3,045

 

 

$

32,638

 

Diluted

 

$

(50,032

)

 

$

12,708

 

 

$

3,092

 

 

$

32,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) earnings per share - basic

 

$

(0.21

)

 

$

0.06

 

 

$

0.01

 

 

$

0.14

 

(Loss) earnings per share - diluted

 

$

(0.21

)

 

$

0.05

 

 

$

0.01

 

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computing

   (loss) earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

241,061

 

 

 

227,058

 

 

 

233,727

 

 

 

226,251

 

Diluted

 

 

241,061

 

 

 

231,770

 

 

 

244,529

 

 

 

230,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation included in costs and

   operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

57

 

 

$

 

 

$

98

 

 

$

 

Product development and technology

 

 

2,958

 

 

 

449

 

 

 

4,772

 

 

 

1,265

 

Sales and marketing

 

 

4,284

 

 

 

331

 

 

 

5,762

 

 

 

931

 

General and administrative

 

 

99,574

 

 

 

176

 

 

 

100,572

 

 

 

496

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

2

 


 

GoodRx Holdings, Inc.

Condensed Consolidated Statements of Changes in Redeemable Convertible

Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited)

 

 

 

Redeemable

Convertible Preferred

Stock

 

 

 

Common Stock

 

 

Class A and Class B

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Total

Stockholders'

Equity

 

(in thousands)

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balance at December 31, 2019

 

 

126,046

 

 

$

737,009

 

 

 

 

229,750

 

 

$

460

 

 

 

 

 

$

 

 

$

8,788

 

 

$

(1,096,830

)

 

$

(1,087,582

)

Stock options exercised

 

 

 

 

 

 

 

 

 

467

 

 

 

1

 

 

 

 

 

 

 

 

 

691

 

 

 

 

 

 

692

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,501

 

 

 

 

 

 

2,501

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,346

 

 

 

27,346

 

Balance at March 31, 2020

 

 

126,046

 

 

$

737,009

 

 

 

 

230,217

 

 

$

461

 

 

 

 

 

$

 

 

$

11,980

 

 

$

(1,069,484

)

 

$

(1,057,043

)

Stock options exercised

 

 

 

 

 

 

 

 

 

222

 

 

 

1

 

 

 

 

 

 

 

 

 

530

 

 

 

 

 

 

531

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,440

 

 

 

 

 

 

2,440

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27,337

 

 

 

27,337

 

Balance at June 30, 2020

 

 

126,046

 

 

$

737,009

 

 

 

 

230,439

 

 

$

462

 

 

 

 

 

$

 

 

$

14,950

 

 

$

(1,042,147

)

 

$

(1,026,735

)

Stock options exercised

 

 

 

 

 

 

 

 

 

780

 

 

 

1

 

 

 

453

 

 

 

 

 

 

4,291

 

 

 

 

 

 

4,292

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

107,825

 

 

 

 

 

 

107,825

 

Conversion of redeemable convertible

   preferred stock to common stock in

   connection with initial public offering

 

 

(126,046

)

 

 

(737,009

)

 

 

 

126,046

 

 

 

252

 

 

 

 

 

 

 

 

 

736,757

 

 

 

 

 

 

737,009

 

Issuance of Class A common stock in

   connection with initial public offering, net

   of offering costs, underwriting discounts

   and commissions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,615

 

 

 

3

 

 

 

886,853

 

 

 

 

 

 

886,856

 

Private placement of Class A common

   stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,030

 

 

 

 

 

 

100,000

 

 

 

 

 

 

100,000

 

Conversion of common stock into Class B

   common stock in connection with initial

   public offering

 

 

 

 

 

 

 

 

 

(357,265

)

 

 

(715

)

 

 

357,265

 

 

 

36

 

 

 

679

 

 

 

 

 

 

 

Common stock withheld for tax obligations

   and net settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(85

)

 

 

 

 

 

(2,806

)

 

 

 

 

 

(2,806

)

Vesting of restricted stock units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50,032

)

 

 

(50,032

)

Balance at September 30, 2020

 

 

 

 

$

 

 

 

 

 

 

$

 

 

 

389,279

 

 

$

39

 

 

$

1,848,549

 

 

$

(1,092,179

)

 

$

756,409

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

3


 

GoodRx Holdings, Inc.

Condensed Consolidated Statements of Changes in Redeemable Convertible

Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited)

 

 

 

Redeemable

Convertible Preferred Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Total

Stockholders'

 

(in thousands)

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Deficit

 

Balance at December 31, 2018

 

 

126,046

 

 

$

737,009

 

 

 

 

225,201

 

 

$

451

 

 

$

 

 

$

(1,162,878

)

 

$

(1,162,427

)

Stock options exercised

 

 

 

 

 

 

 

 

 

340

 

 

 

1

 

 

 

263

 

 

 

 

 

 

264

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

887

 

 

 

 

 

 

887

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,552

 

 

 

11,552

 

Balance at March 31, 2019

 

 

126,046

 

 

$

737,009

 

 

 

 

225,541

 

 

$

452

 

 

$

1,150

 

 

$

(1,151,326

)

 

$

(1,149,724

)

Stock options exercised

 

 

 

 

 

 

 

 

 

1,377

 

 

 

3

 

 

 

1,620

 

 

 

 

 

 

1,623

 

Restricted stock issuance

 

 

 

 

 

 

 

 

 

 

 

1,879

 

 

 

3

 

 

 

(3

)

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,057

 

 

 

 

 

 

1,057

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,650

 

 

 

19,650

 

Balance at June 30, 2019

 

 

126,046

 

 

$

737,009

 

 

 

 

228,797

 

 

$

458

 

 

$

3,824

 

 

$

(1,131,676

)

 

$

(1,127,394

)

Stock options exercised

 

 

 

 

 

 

 

 

 

379

 

 

 

1

 

 

 

728

 

 

 

 

 

 

729

 

Common stock issuance

 

 

 

 

 

 

 

 

 

273

 

 

 

1

 

 

 

1,622

 

 

 

 

 

 

1,623

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,072

 

 

 

 

 

 

1,072

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19,619

 

 

 

19,619

 

Balance at September 30, 2019

 

 

126,046

 

 

$

737,009

 

 

 

 

229,449

 

 

 

460

 

 

$

7,246

 

 

$

(1,112,057

)

 

$

(1,104,351

)

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

4


 

GoodRx Holdings, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Nine Months Ended

September 30,

 

(in thousands)

 

2020

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

4,651

 

 

$

50,821

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

14,026

 

 

 

9,355

 

Amortization of debt issuance costs

 

 

2,430

 

 

 

2,545

 

Non-cash operating lease expense

 

 

3,431

 

 

 

1,497

 

Stock-based compensation

 

 

111,204

 

 

 

2,692

 

Change in fair value of contingent consideration

 

 

901

 

 

 

 

Deferred income taxes

 

 

2,292

 

 

 

26

 

Changes in operating assets and liabilities, net of effect of business acquisitions

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(10,928

)

 

 

(8,013

)

Prepaid expenses and other assets

 

 

(31,832

)

 

 

(181

)

Accounts payable

 

 

3,411