Once a pricey dispute with a grocery chain’s medicine store was resolved, the pharmaceutical pricing comparison website GoodRx announced it was pivoting to win back lost sales and consumers, although it cautioned the process might take some time to complete.
The California-based company said its mission to provide Americans with affordable healthcare through its subscription-based price discounting was very much intact, as its sales and subscriber base both increased despite the disruption from the grocer, in its announcement of its second-quarter earnings results and a cautious full-year outlook.
Changes in communication take time to filter down to the pharmacy and retail levels, according to Voermann. It’s uncertain how many GoodRx customers who moved to their insurance or another type of grocery discounts during the second quarter will switch back, and if they do, how quickly.
The Direction of Digital
Investors rejoiced over the settlement and drove shares of GoodRx up as much as 50% in after-hours trade on Monday and over 20% in early trading on Tuesday, despite this cautionary statement and conservative sales projections.
Co-Founder and Co-CEO Trevor Bezdek assert that GoodRx is prioritizing new services and product enhancements that will help members save money on healthcare in more ways while enabling the business to “increase its touchpoints” and play a more active role in all aspects of customers’ care in order to hasten that rebound. GoodRx is also working to stabilize its network, according to Bezdek.
Bezdek noted that enabling users to provide GoodRx with more information, will increase the lifetime value (LTV) of each users’ prescription transactions and other areas. “We believe the benefits of deeper relationships with our consumers will allow us to help them better navigate their healthcare journey with an even more compelling GoodRx value proposition and user experience,” Bezdek said.
To that point, Bezdek claimed that GoodRx now generates 30% of its revenue from non-core offerings, up from only 55% three years prior, and that subscription revenues have increased 82% from the previous year as a result of a large increase in the number of members who upgraded to Gold accounts at a higher cost.
