GoodRx CEO Doug Hirsch on earnings report, buying RxSaver

CNBC Television published this video item, entitled “GoodRx CEO Doug Hirsch on earnings report, buying RxSaver” – below is their description.

CNBC’s Jon Fortt discusses GoodRx’s growth, earnings results and stock performance with GoodRx co-founder and CEO Doug Hirsch. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

GoodRx co-CEO Doug Hirsch expressed confidence Friday in the company’s outlook, telling CNBC that recent acquisitions will help it expand its business offerings as it approaches a post-pandemic health-care landscape.

A day earlier, GoodRx reported a 20% increase in first-quarter revenue, which rose to $160.4 million from $133.4 million a year earlier. Net income came in at $1.7 million, down sharply from $27.3 million in net income in Q1 2020. However, the company — which offers prescription drug coupons to customers — said the most recent figure was impacted by $46.5 million in stock-based compensation expenses.

Shares of GoodRx were up around 10% on Friday.

“We’re transitioning from the Covid crisis into the other health-care crisis, which is that people simply just cannot afford their care,” Hirsch said in an interview on “The Exchange.” “We feel like our business is rock solid and just getting better.”

Two recent deals improve GoodRx’s position, Hirsch said. The first is RxSaver, which also offers users prescription coupons. Hirsch said that acquisition — reportedly for $50 million — brings in a “complementary business to ours.” It also provides marketing advantages, he said.

The other acquisition was HealthiNation, which makes informational videos on health topics. The content is created by doctors and health-care professionals, Hirsch said. While GoodRx has had educational content for years, Hirsch said it primarily focused on the written word.

“A lot of consumers like to watch video,” he said, adding that it also allows GoodRx to sell advertising to manufacturers to bring in revenue. “It’s a win-win for everybody.”

Previous acquisitions made by GoodRx include telemedicine provider HeyDoctor in 2019. The company rebranded it to GoodRx Care in March.

Despite its positive move Friday, GoodRx’s stock has struggled to gain traction since the company went public in September. Its IPO priced at $33 per share and closed its first session at $50.50 apiece.

The stock traded around $31 on Friday, putting GoodRx’s market cap just above $12 billion.

Competition from much larger rivals — Amazon, in particular — is a major concern for some on Wall Street. For example, in November, GoodRx shares plunged 22.5% in one session after the e-commerce behemoth unveiled plans for Amazon Pharmacy, which represented its most significant move into the space.

Hirsch has downplayed the threat Amazon poses to GoodRx, which he co-founded in 2011. “People perceive it as going head-to-head with us, but it’s not,” he told CNBC in November.

Of the nine analyst outlooks available on FactSet, only one has a sell rating on GoodRx’s stock, while four have buy ratings. The other analysts rate the stock a hold.

Hirsch doubled down on his upbeat outlook Friday, saying, “Put the markets aside, because our business is both durable and highly predictable.”

“Most of the people who use GoodRx have chronic conditions, so they’re taking prescriptions on an ongoing basis. They’re showing up at that pharmacy every month. We have a very reliable revenue stream, and again, we’re opening up new revenue streams and new ways to communicate with consumers, as well,” he said.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online

Get the latest news: http://www.cnbc.com/

Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC

Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC

Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC

Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC

#CNBCTV

CNBC Television YouTube Channel

Got a comment? Leave your thoughts in the comments section, below. Please note comments are moderated before publication.


About This Source - CNBC Television

CNBC is an American pay television business news channel, which primarily carries business day coverage of U.S. and international financial markets. Following the end of the business day and on non-trading days, CNBC primarily carries financial and business-themed documentaries and reality shows.

As of February 2015, CNBC is available to approximately 93,623,000 pay television households (80.4% of households with television) in the United States.

Recent from CNBC Television:

The narrative behind big tech is 'very strong', they are must own stocks, says laffer tengler ceo 1

The narrative behind Big Tech is ‘very strong’, they are must own stocks, says Laffer Tengler CEO

The Biden campaign can’t fix messaging around age, says Mick Mulvaney

Last Call panel weighs in on Sports Illustrated laying off entire staff

In This Story: COVID-19

Covid-19 is the official WHO name given to the novel coronavirus which broke out in late 2019 and began to spread in the early months of 2020.

Symptoms of coronavirus

The main symptoms of coronavirus are:

  • a persistent new cough (non productive, dry)
  • a high temperature (e.g. head feels warm to the touch)
  • shortness of breath (if this is abnormal for the individual, or increased)

Latest News about Covid-19

Below are stories from around the globe related to the 2020 outbreak of novel Coronavirus – since the WHO gave the Covid-19 naming. Most recent items are posted nearest the top.

5 Recent Items: COVID-19

Global National: Jan. 19, 2024 | Health data shows influenza, COVID-19 cases decreasing in Canada

Stock market today: Dow, S&P 500 hit record highs as tech stocks soar | January 19, 2024

Stock market today: Stocks climb with techs ready to roar | January 19, 2023

Dr Anthony Fauci ‘became part of the problem’ when it came to the spread of Covid misinformation

WEF summit: Canada warns of future supply shocks amid global instability

In This Story: Podcast

A podcast is an episodic series of digital audio files that a user can download to a personal device for easy listening.

3 Recent Items: Podcast

Would you rather have Belichick or Harbaugh? | The Will Cain Show

Who’s the most clinical? Callum Wilson or Michail Antonio? | Footballer’s Football Podcast

Inside story of Perth’s epic BBL|12 Final run chase | KFC BBL

Leave a Comment

We don't require your email address, or your name, for anyone to leave a comment. If you do add an email address, you may be notified if there are replies to your comment - we won't use it for any other purpose. Please make respectful comments, which add value, and avoid personal attacks on others. Links are not allowed in comments - 99% of spam comments, attempt to post links. Please describe where people may find additional information - for example "visit the UN website" or "search Google for..." rather than posting a link. Comments failing to adhere to these guidelines will not be published.