10-Q
2024-10-11--12-31Q30001809519false0001809519us-gaap:EmployeeStockOptionMember2022-01-012022-03-3100018095192022-04-012022-06-300001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2021-12-310001809519srt:MinimumMemberus-gaap:SubsequentEventMember2022-10-012022-10-010001809519gdrx:RestrictedStockUnitsPerformanceVestingFounderAwardsMemberus-gaap:CommonClassBMember2021-10-012021-12-310001809519us-gaap:RetainedEarningsMember2022-03-310001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-09-300001809519us-gaap:CommonClassBMember2022-09-300001809519us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2021-01-012021-09-300001809519gdrx:StockOptionsRestrictedStockAwardsAndRestrictedStockUnitsMember2021-01-012021-09-3000018095192021-12-310001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2022-07-012022-09-300001809519us-gaap:GeneralAndAdministrativeExpenseMember2022-07-012022-09-300001809519gdrx:RestrictedStockUnitsForClassACommonStockMember2022-03-310001809519gdrx:CommonClassAAndClassBMember2022-07-012022-09-300001809519us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001809519gdrx:CommonClassAAndClassBMember2021-04-012021-06-300001809519gdrx:VitacarePrescriptionServicesIncMember2022-09-300001809519gdrx:RestrictedStockAwardsMember2022-07-012022-09-300001809519us-gaap:EmployeeStockOptionMember2022-06-300001809519us-gaap:CommonClassAMember2021-12-310001809519gdrx:CommonClassAAndClassBMember2022-06-300001809519us-gaap:ResearchAndDevelopmentExpenseMember2022-07-012022-09-300001809519gdrx:RestrictedStockUnitsForClassBCommonStockMember2022-04-012022-06-300001809519us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001809519gdrx:InflationReductionActOf2022Member2022-08-162022-08-160001809519us-gaap:RevenueFromContractWithCustomerMembergdrx:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembergdrx:CustomerOneMember2022-01-012022-09-300001809519gdrx:RestrictedStockUnitsPerformanceVestingFounderAwardsMemberus-gaap:CommonClassBMembersrt:ScenarioForecastMember2020-10-312023-10-3100018095192021-07-012021-09-300001809519gdrx:CommonClassAAndClassBMember2022-09-300001809519us-gaap:ResearchAndDevelopmentExpenseMember2021-07-012021-09-300001809519gdrx:RestrictedStockAwardsMember2022-06-300001809519gdrx:StockOptionsRestrictedStockAwardsAndRestrictedStockUnitsMember2022-07-012022-09-300001809519gdrx:OtherRevenueMember2022-07-012022-09-300001809519us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-07-012022-09-300001809519us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2022-03-310001809519gdrx:RestrictedStockAwardsMember2022-09-300001809519us-gaap:RevenueFromContractWithCustomerMembergdrx:CustomerThreeMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001809519gdrx:FirstLienCreditAgreementMember2022-01-012022-09-300001809519us-gaap:RestrictedStockMember2022-07-012022-09-300001809519gdrx:RestrictedStockAwardsMember2022-01-012022-03-3100018095192022-01-012022-09-300001809519gdrx:RestrictedStockAwardsMember2022-04-012022-06-300001809519gdrx:VitacarePrescriptionServicesIncMember2022-01-012022-09-3000018095192021-01-012021-03-310001809519us-gaap:AdditionalPaidInCapitalMember2021-09-3000018095192022-07-012022-09-300001809519gdrx:VitacarePrescriptionServicesIncMember2022-04-1400018095192022-04-142022-04-1400018095192021-04-080001809519gdrx:PrescriptionTransactionsRevenueMember2022-07-012022-09-300001809519gdrx:FirstLienCreditAgreementMember2021-07-012021-09-300001809519srt:MaximumMemberus-gaap:SubsequentEventMember2022-10-010001809519gdrx:RestrictedStockUnitsTimeVestingFounderAwardsMemberus-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMember2020-09-112020-09-110001809519us-gaap:AdditionalPaidInCapitalMember2022-03-310001809519us-gaap:AdditionalPaidInCapitalMember2022-06-300001809519us-gaap:EmployeeStockOptionMember2022-09-3000018095192022-06-300001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2021-06-300001809519us-gaap:CustomerRelationshipsMembergdrx:VitacarePrescriptionServicesIncMember2022-04-142022-04-140001809519us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-09-300001809519gdrx:CommonClassAAndClassBMember2021-06-300001809519us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001809519gdrx:CommonClassAAndClassBMember2021-07-012021-09-300001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembergdrx:CustomerOneMember2022-07-012022-09-300001809519us-gaap:RestrictedStockMember2022-03-310001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2020-12-3100018095192022-09-300001809519gdrx:CommonClassAAndClassBMember2022-03-310001809519us-gaap:RetainedEarningsMember2020-12-310001809519gdrx:FirstLienCreditAgreementMember2022-09-300001809519us-gaap:RevenueFromContractWithCustomerMembergdrx:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001809519us-gaap:RetainedEarningsMember2022-06-300001809519us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001809519us-gaap:SellingAndMarketingExpenseMember2022-07-012022-09-300001809519srt:MaximumMembergdrx:FirstLienCreditAgreementMember2022-01-012022-09-300001809519us-gaap:RetainedEarningsMember2022-09-3000018095192021-06-300001809519us-gaap:EmployeeStockOptionMember2022-03-310001809519gdrx:RestrictedStockUnitsForClassBCommonStockMember2022-07-012022-09-300001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembergdrx:CustomerOneMember2021-07-012021-09-300001809519us-gaap:RetainedEarningsMember2022-04-012022-06-3000018095192022-03-310001809519gdrx:PrescriptionTransactionsRevenueMember2021-07-012021-09-300001809519gdrx:RestrictedStockUnitsTimeVestingFounderAwardsMemberus-gaap:CommonClassBMember2021-07-012021-09-300001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001809519us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001809519gdrx:OtherRevenueMember2021-01-012021-09-300001809519gdrx:FlipmdIncMember2022-02-182022-02-180001809519us-gaap:EmployeeStockOptionMember2021-12-310001809519gdrx:OtherRevenueMember2022-01-012022-09-300001809519us-gaap:RetainedEarningsMember2021-03-310001809519us-gaap:CostOfSalesMember2022-07-012022-09-300001809519gdrx:FirstLienCreditAgreementMember2022-07-012022-09-300001809519us-gaap:CommonClassBMember2022-11-010001809519gdrx:CommonClassAAndClassBMember2021-01-012021-03-310001809519us-gaap:AdditionalPaidInCapitalMember2020-12-310001809519gdrx:RestrictedStockUnitsForClassACommonStockMember2021-12-310001809519gdrx:VitacarePrescriptionServicesIncMemberus-gaap:TradeNamesMember2022-04-142022-04-140001809519gdrx:CommonClassAAndClassBMember2021-03-3100018095192022-04-140001809519gdrx:RestrictedStockUnitsForClassACommonStockMember2022-07-012022-09-300001809519us-gaap:RevolvingCreditFacilityMember2022-09-300001809519us-gaap:AdditionalPaidInCapitalMember2021-03-310001809519us-gaap:RestrictedStockMember2022-01-012022-03-310001809519us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2021-12-310001809519gdrx:RestrictedStockAwardsMember2022-03-310001809519gdrx:RestrictedStockUnitsForClassACommonStockMember2022-09-300001809519us-gaap:CommonClassAMember2022-11-010001809519gdrx:RestrictedStockUnitsForClassBCommonStockMember2022-01-012022-03-310001809519gdrx:PharmaManufacturerSolutionsRevenuesMember2021-07-012021-09-300001809519us-gaap:CreditConcentrationRiskMembergdrx:CustomerOneMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001809519us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2021-07-012021-09-300001809519gdrx:FirstLienCreditAgreementMember2021-01-012021-09-300001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2021-09-300001809519gdrx:PrescriptionTransactionsRevenueMember2022-01-012022-09-300001809519gdrx:RestrictedStockUnitsForClassBCommonStockMember2021-12-310001809519us-gaap:CreditConcentrationRiskMembergdrx:CustomerOneMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001809519gdrx:StockOptionsRestrictedStockAwardsAndRestrictedStockUnitsMember2021-07-012021-09-300001809519gdrx:PharmaManufacturerSolutionsRevenuesMember2021-01-012021-09-300001809519us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001809519us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-09-300001809519gdrx:FirstLienTermLoanFacilityMembergdrx:FirstLienCreditAgreementMember2022-01-012022-09-300001809519gdrx:RestrictedStockAwardsMember2021-12-310001809519us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-09-300001809519gdrx:RestrictedStockUnitsForClassACommonStockMember2022-04-012022-06-300001809519gdrx:OtherRevenueMember2021-07-012021-09-3000018095192020-12-310001809519us-gaap:AdditionalPaidInCapitalMember2021-06-300001809519gdrx:RestrictedStockUnitsForClassACommonStockMember2022-06-300001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2021-03-310001809519gdrx:CommonClassAAndClassBMember2020-12-3100018095192021-09-300001809519us-gaap:RevolvingCreditFacilityMember2022-01-012022-09-300001809519us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001809519us-gaap:CommonClassAMember2022-02-230001809519gdrx:CommonClassAAndClassBMember2022-01-012022-03-310001809519gdrx:CommonClassAAndClassBMember2022-04-012022-06-300001809519us-gaap:RetainedEarningsMember2021-09-300001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMembergdrx:CustomerOneMember2021-01-012021-09-300001809519gdrx:SubscriptionRevenueMember2022-01-012022-09-300001809519gdrx:RestrictedStockUnitsTimeVestingFounderAwardsMemberus-gaap:CommonClassBMember2022-01-012022-09-300001809519gdrx:CommonClassAAndClassBMember2021-09-300001809519gdrx:StockOptionsRestrictedStockAwardsAndRestrictedStockUnitsMember2022-01-012022-09-300001809519us-gaap:CostOfSalesMember2021-01-012021-09-300001809519gdrx:RestrictedStockUnitsTimeVestingFounderAwardsMemberus-gaap:CommonClassBMember2022-09-300001809519us-gaap:RestrictedStockMember2022-04-012022-06-300001809519us-gaap:RetainedEarningsMember2021-07-012021-09-300001809519us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassBMember2020-09-012020-09-110001809519gdrx:RestrictedStockUnitsPerformanceVestingFounderAwardsMemberus-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMember2020-09-012020-09-110001809519us-gaap:CostOfSalesMember2022-01-012022-09-300001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2022-06-300001809519us-gaap:RetainedEarningsMember2021-01-012021-03-310001809519us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-09-300001809519gdrx:RestrictedStockUnitsForClassBCommonStockMember2022-09-300001809519us-gaap:RetainedEarningsMember2022-01-012022-03-310001809519us-gaap:RetainedEarningsMember2021-12-310001809519gdrx:VitacarePrescriptionServicesIncMemberus-gaap:TechnologyBasedIntangibleAssetsMember2022-04-142022-04-140001809519us-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001809519us-gaap:LetterOfCreditMember2022-09-3000018095192021-03-310001809519gdrx:FirstLienCreditAgreementMember2021-12-310001809519gdrx:RestrictedStockUnitsForClassACommonStockMember2022-01-012022-03-310001809519us-gaap:SellingAndMarketingExpenseMember2022-01-012022-09-300001809519us-gaap:AdditionalPaidInCapitalMember2021-12-310001809519us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassAMember2022-01-012022-09-300001809519gdrx:SubscriptionRevenueMember2021-07-012021-09-3000018095192021-04-012021-06-300001809519gdrx:VitacarePrescriptionServicesIncMember2022-04-142022-04-140001809519gdrx:VitacarePrescriptionServicesIncMember2022-07-012022-09-300001809519us-gaap:RetainedEarningsMember2022-07-012022-09-3000018095192022-01-012022-03-310001809519gdrx:RestrictedStockUnitsTimeVestingFounderAwardsMemberus-gaap:CommonClassBMember2022-07-012022-09-300001809519gdrx:PharmaManufacturerSolutionsRevenuesMember2022-07-012022-09-300001809519us-gaap:AdditionalPaidInCapitalMember2022-09-300001809519us-gaap:RetainedEarningsMember2021-06-300001809519us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001809519gdrx:MinorityEquityInterestsMember2022-09-300001809519us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001809519gdrx:SubscriptionRevenueMember2021-01-012021-09-300001809519us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-09-300001809519us-gaap:RestrictedStockMember2021-12-310001809519us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001809519us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001809519us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001809519us-gaap:RestrictedStockMember2022-09-300001809519srt:MinimumMembergdrx:FirstLienCreditAgreementMember2022-01-012022-09-300001809519gdrx:PrescriptionTransactionsRevenueMember2021-01-012021-09-300001809519us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001809519us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-09-300001809519us-gaap:CommonClassAMember2022-09-300001809519gdrx:RestrictedStockUnitsTimeVestingFounderAwardsMemberus-gaap:CommonClassBMember2021-01-012021-09-300001809519us-gaap:CommonClassAMember2022-01-012022-09-300001809519us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001809519gdrx:RestrictedStockUnitsForClassBCommonStockMember2022-03-310001809519us-gaap:CommonClassBMember2021-12-310001809519gdrx:CommonClassAAndClassBMember2021-12-3100018095192021-01-012021-09-300001809519gdrx:RestrictedStockUnitsForClassBCommonStockMember2022-06-300001809519gdrx:SubscriptionRevenueMember2022-07-012022-09-300001809519us-gaap:CommonClassAMember2022-07-012022-09-300001809519us-gaap:RestrictedStockMember2022-06-300001809519gdrx:PharmaManufacturerSolutionsRevenuesMember2022-01-012022-09-300001809519us-gaap:EmployeeStockOptionMember2021-01-012021-12-310001809519us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001809519us-gaap:RestrictedStockUnitsRSUMemberus-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMember2020-09-012020-09-110001809519us-gaap:CostOfSalesMember2021-07-012021-09-300001809519gdrx:RestrictedStockUnitsTimeVestingFounderAwardsMemberus-gaap:CommonClassBMembersrt:ChiefExecutiveOfficerMember2020-09-012020-09-110001809519gdrx:CommonClassAAndClassBMemberus-gaap:CommonStockMember2022-09-300001809519us-gaap:RetainedEarningsMember2021-04-012021-06-30iso4217:USDxbrli:sharesgdrx:Lawsuitxbrli:purexbrli:sharesgdrx:Customeriso4217:USD

 

 

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, 2022

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.)

 

 

2701 Olympic Boulevard

Santa Monica, CA

90404

(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 1, 2022, the registrant had 82,458,058 shares of Class A common stock, $0.0001 par value per share, and 313,731,628 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, 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, the impact of a grocery chain not accepting PBM pricing on our future results of operations, stock compensation, our stock repurchase program, impacts of our cost savings initiatives, 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, risks related to our limited operating history and early stage of growth; our ability to achieve broad market education and change consumer purchasing habits; our ability to continue to attract, acquire and retain consumers in a cost-effective manner; our reliance on our prescription transactions offering and ability to expand our offerings; changes in medication pricing and pricing structures; our inability to control the categories and types of prescriptions for which we can offer savings or discounted prices; our reliance on a limited number of industry participants; the competitive nature of industry; risks related to pandemics, epidemics or outbreak of infection disease, including the COVID-19 pandemic; the accuracy of our estimate of our total addressable market and other operational metrics; the development of the telehealth market; our ability to maintain and expand a network of skilled telehealth providers; risks related to negative media coverage; our ability to respond to changes in the market for prescription pricing and to maintain and expand the use of GoodRx codes; our ability to maintain positive perception of our platform and brand; risks related to any failure to maintain effective internal control over financial reporting; risks related to use of social media, emails, text messages and other messaging channels as part of our marketing strategy; our ability to accurately forecast revenue and appropriately plan our expenses in the future; risks related to information technology and cyber-security; compliance with government regulation of the internet, e-commerce and data and other regulations; our ability to utilize our net operating loss carryforwards and certain other tax attributes; our ability to attract, develop, motivate and retain well-qualified employees; risks related to general economic factors, natural disasters or other unexpected events; risks related to our acquisition strategy; risks related to our debt arrangements; interruptions or delays in service on our apps or websites; our reliance on third-party platforms to distribute our platform and offerings; our reliance on software as-a-service technologies from third parties; systems failures or other disruptions in the operations of these parties on which we depend; changes in consumer sentiment or laws, rules or regulations regarding tracking technologies and other privacy matters; the increasing focus on environmental sustainability and social initiatives; risks related to our intellectual property; risks related to operating in the healthcare industry; risks related to our organizational structure; risks related to fluctuations in our tax obligations and effective income tax rate which could materially and adversely affect our results of operations; risks related to the recent healthcare reform legislation and other changes in the healthcare industry and in healthcare spending which may adversely affect our business, financial condition and results of operations; the risk that we may not achieve the intended outcomes of our recent reduction in force; as well as the other important factors discussed in the sections entitled “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (“2021 10-K”) and this Quarterly Report on Form 10-Q and in our other filings with the Securities and Exchange Commission (“SEC”). 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.

 


 

 

Table of Contents

 

 

 

Page

 

 

 

PART I.

FINANCIAL INFORMATION

 

Item 1.

Condensed Consolidated Financial Statements (Unaudited)

1

 

Condensed Consolidated Balance Sheets

1

 

Condensed Consolidated Statements of Operations

2

 

Condensed Consolidated Statements of Stockholders’ Equity

3

 

Condensed Consolidated Statements of Cash Flows

5

 

Notes to Condensed Consolidated Financial Statements

6

Item 2.

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

17

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

30

 

 

 

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

31

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

32

Item 3.

Defaults Upon Senior Securities

33

Item 4.

Mine Safety Disclosures

33

Item 5.

Other Information

33

Item 6.

Exhibits

34

 

Signatures

35

 

 


 

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

 

GoodRx Holdings, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

(in thousands, except par values)

 

September 30,
2022

 

 

December 31,
2021

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

728,786

 

 

$

941,109

 

Accounts receivable, net

 

 

120,886

 

 

 

118,080

 

Prepaid expenses and other current assets

 

 

28,716

 

 

 

29,638

 

Total current assets

 

 

878,388

 

 

 

1,088,827

 

Property and equipment, net

 

 

22,287

 

 

 

21,612

 

Goodwill

 

 

415,256

 

 

 

329,696

 

Intangible assets, net

 

 

125,900

 

 

 

88,791

 

Capitalized software, net

 

 

71,299

 

 

 

44,987

 

Operating lease right-of-use assets

 

 

27,971

 

 

 

27,705

 

Other assets

 

 

25,958

 

 

 

6,007

 

Total assets

 

$

1,567,059

 

 

$

1,607,625

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

10,855

 

 

$

17,501

 

Accrued expenses and other current liabilities

 

 

61,025

 

 

 

50,732

 

Current portion of debt

 

 

7,029

 

 

 

7,029

 

Operating lease liabilities, current

 

 

6,057

 

 

 

5,851

 

Total current liabilities

 

 

84,966

 

 

 

81,113

 

Debt, net

 

 

652,814

 

 

 

655,858

 

Operating lease liabilities, net of current portion

 

 

32,551

 

 

 

33,592

 

Deferred tax liabilities, net

 

 

650

 

 

 

244

 

Other liabilities

 

 

7,675

 

 

 

5,138

 

Total liabilities

 

 

778,656

 

 

 

775,945

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 50,000 shares authorized and
    
zero shares issued and outstanding at September 30, 2022 and
    December 31, 2021

 

 

 

 

 

 

Common stock, $0.0001 par value; Class A: 2,000,000 shares
   authorized,
82,333 and 85,028 shares issued and outstanding at
   September 30, 2022 and December 31, 2021, respectively; and
   Class B:
1,000,000 shares authorized, 313,732 and 315,534
   shares issued and outstanding at September 30, 2022 and
   December 31, 2021, respectively

 

 

40

 

 

 

40

 

Additional paid-in capital

 

 

2,234,926

 

 

 

2,247,347

 

Accumulated deficit

 

 

(1,446,563

)

 

 

(1,415,707

)

Total stockholders' equity

 

 

788,403

 

 

 

831,680

 

Total liabilities and stockholders' equity

 

$

1,567,059

 

 

$

1,607,625

 

 

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)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

187,318

 

 

$

195,102

 

 

$

582,445

 

 

$

532,168

 

Costs and operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue, exclusive of depreciation and
   amortization presented separately below

 

 

17,395

 

 

 

11,271

 

 

 

47,719

 

 

 

32,789

 

Product development and technology

 

 

35,921

 

 

 

35,073

 

 

 

106,367

 

 

 

90,800

 

Sales and marketing

 

 

86,215

 

 

 

95,651

 

 

 

273,503

 

 

 

263,726

 

General and administrative

 

 

49,548

 

 

 

35,947

 

 

 

116,211

 

 

 

119,312

 

Depreciation and amortization

 

 

13,952

 

 

 

10,161

 

 

 

38,644

 

 

 

23,891

 

Total costs and operating expenses

 

 

203,031

 

 

 

188,103

 

 

 

582,444

 

 

 

530,518

 

Operating (loss) income

 

 

(15,713

)

 

 

6,999

 

 

 

1

 

 

 

1,650

 

Other expense, net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

(2,920

)

 

 

(13

)

 

 

(3,829

)

 

 

(42

)

Interest expense

 

 

9,478

 

 

 

5,928

 

 

 

22,316

 

 

 

17,739

 

Total other expense, net

 

 

6,558

 

 

 

5,915

 

 

 

18,487

 

 

 

17,697

 

(Loss) income before income taxes

 

 

(22,271

)

 

 

1,084

 

 

 

(18,486

)

 

 

(16,047

)

Income tax (expense) benefit

 

 

(19,463

)

 

 

(19,153

)

 

 

(12,370

)

 

 

30,707

 

Net (loss) income

 

$

(41,734

)

 

$

(18,069

)

 

$

(30,856

)

 

$

14,660

 

(Loss) earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.10

)

 

$

(0.04

)

 

$

(0.07

)

 

$

0.04

 

Diluted

 

$

(0.10

)

 

$

(0.04

)

 

$

(0.07

)

 

$

0.03

 

Weighted average shares used in computing
   (loss) earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

412,956

 

 

 

411,223

 

 

 

413,254

 

 

 

408,604

 

Diluted

 

 

412,956

 

 

 

411,223

 

 

 

413,254

 

 

 

429,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation included in costs and
   operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

136

 

 

$

238

 

 

$

190

 

 

$

540

 

Product development and technology

 

 

8,029

 

 

 

10,333

 

 

 

25,327

 

 

 

26,656

 

Sales and marketing

 

 

4,766

 

 

 

5,638

 

 

 

15,999

 

 

 

16,158

 

General and administrative

 

 

16,107

 

 

 

23,771

 

 

 

49,304

 

 

 

83,828

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

2


 

GoodRx Holdings, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

 

 

 

Class A and Class B
Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Total
Stockholders'

 

(in thousands)

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2021

 

 

400,562

 

 

$

40

 

 

$

2,247,347

 

 

$

(1,415,707

)

 

$

831,680

 

Stock options exercised

 

 

749

 

 

 

 

 

 

3,699

 

 

 

 

 

 

3,699

 

Stock-based compensation

 

 

 

 

 

 

 

 

32,161

 

 

 

 

 

 

32,161

 

Vesting of restricted stock units

 

 

822

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock withheld related to
   net share settlement

 

 

(364

)

 

 

 

 

 

(9,561

)

 

 

 

 

 

(9,561

)

Repurchases of Class A common stock

 

 

(5,637

)

 

 

 

 

 

(83,765

)

 

 

 

 

 

(83,765

)

Net income

 

 

 

 

 

 

 

 

 

 

 

12,293

 

 

 

12,293

 

Balance at March 31, 2022

 

 

396,132

 

 

$

40

 

 

$

2,189,881

 

 

$

(1,403,414

)

 

$

786,507

 

Stock options exercised

 

 

1,176

 

 

 

 

 

 

4,109

 

 

 

 

 

 

4,109

 

Stock-based compensation

 

 

 

 

 

 

 

 

33,466

 

 

 

 

 

 

33,466

 

Vesting of restricted stock units

 

 

1,059

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock withheld related to
   net share settlement

 

 

(459

)

 

 

 

 

 

(4,727

)

 

 

 

 

 

(4,727

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(1,415

)

 

 

(1,415

)

Balance at June 30, 2022

 

 

397,908

 

 

$

40

 

 

$

2,222,729

 

 

$

(1,404,829

)

 

$

817,940

 

Stock options exercised

 

 

245

 

 

 

 

 

 

1,271

 

 

 

 

 

 

1,271

 

Stock-based compensation

 

 

 

 

 

 

 

 

32,151

 

 

 

 

 

 

32,151

 

Vesting of restricted stock units

 

 

1,256

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock withheld related to
   net share settlement

 

 

(525

)

 

 

 

 

 

(3,269

)

 

 

 

 

 

(3,269

)

Repurchases of Class A common stock

 

 

(2,819

)

 

 

 

 

 

(17,956

)

 

 

 

 

 

(17,956

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(41,734

)

 

 

(41,734

)

Balance at September 30, 2022

 

 

396,065

 

 

$

40

 

 

$

2,234,926

 

 

$

(1,446,563

)

 

$

788,403

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

3


 

GoodRx Holdings, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

 

 

 

 

Class A and Class B
Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Total
Stockholders'

 

(in thousands)

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2020

 

 

391,660

 

 

$

39

 

 

$

2,101,773

 

 

$

(1,390,453

)

 

$

711,359

 

Stock options exercised

 

 

513

 

 

 

 

 

 

2,680

 

 

 

 

 

 

2,680

 

Stock-based compensation

 

 

 

 

 

 

 

 

48,254

 

 

 

 

 

 

48,254

 

Vesting of restricted stock units

 

 

608

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock withheld related to
   net share settlement

 

 

(324

)

 

 

 

 

 

(14,902

)

 

 

 

 

 

(14,902

)

Net income

 

 

 

 

 

 

 

 

 

 

 

1,668

 

 

 

1,668

 

Balance at March 31, 2021

 

 

392,457

 

 

$

39

 

 

$

2,137,805

 

 

$

(1,388,785

)

 

$

749,059

 

Stock options exercised

 

 

2,609

 

 

 

 

 

 

13,291

 

 

 

 

 

 

13,291

 

Stock-based compensation

 

 

 

 

 

 

 

 

42,366

 

 

 

 

 

 

42,366

 

Vesting of restricted stock units

 

 

631

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock withheld related to
   net share settlement

 

 

(304

)

 

 

 

 

 

(11,383

)

 

 

 

 

 

(11,383

)

Net income

 

 

 

 

 

 

 

 

 

 

 

31,061

 

 

 

31,061

 

Balance at June 30, 2021

 

 

395,393

 

 

$

39

 

 

$

2,182,079

 

 

$

(1,357,724

)

 

$

824,394

 

Stock options exercised

 

 

2,733

 

 

 

 

 

 

14,135

 

 

 

 

 

 

14,135

 

Stock-based compensation

 

 

 

 

 

 

 

 

42,593

 

 

 

 

 

 

42,593

 

Vesting of restricted stock units

 

 

985

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock withheld related to
   net share settlement

 

 

(430

)

 

 

 

 

 

(16,657

)

 

 

 

 

 

(16,657

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(18,069

)

 

 

(18,069

)