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-trauma healthcare landscape. pandemic.
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 revenue was $ 1.7 million, a sharp decline from the $ 27.3 million in net revenue in the first quarter of 2020. However, the company, which offers prescription drug coupons to customers, said the figure Most recently it was hit by $ 46.5 million in stock-based compensation expense.
GoodRx shares rose about 10% on Friday.
“We are moving from the Covid crisis to the other health care crisis, which is that people just can’t pay for their care,” Hirsch said in an interview on “The Exchange.” “We feel our business is rock solid and improving.”
Two recent deals improve GoodRx’s position, Hirsch said. The first is RxSaver, which also offers prescription coupons to users. Hirsch said that the acquisition, supposedly for 50 million dollars, generates 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 healthcare professionals, Hirsch said. While GoodRx has had educational content for years, Hirsch said it focused primarily on the written word.
“A lot of consumers like to watch videos,” he said, adding that it also enables GoodRx to sell advertising to manufacturers to generate revenue. “It’s a win-win situation.”
Previous acquisitions made by GoodRx include telemedicine provider HeyDoctor in 2019. The company switched it to GoodRx Care in March.
Despite their positive move on Friday, GoodRx shares have struggled to gain traction since the company went public in September. Its IPO was priced at $ 33 per share and closed its first session at $ 50.50 each.
The stock was trading around $ 31 on Friday, putting GoodRx’s market capitalization 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 giant unveiled plans for Amazon Pharmacy, which represented its most significant move in the space.
Hirsch has downplayed the threat Amazon poses to GoodRx, which he co-founded in 2011. “People perceive it as a head-to-head showdown with us, but it’s not,” he told CNBC in November.
Of the nine analyst insights available on FactSet, only one has a sell rating on GoodRx stocks, while four have a buy rating. The other analysts rate the action as sustained.
Hirsch doubled down on his optimistic outlook on Friday, saying: “Let’s put the markets aside, because our business is long-lasting and highly predictable.”
“Most of the people who use GoodRx have chronic conditions, so they take prescriptions on an ongoing basis. They appear at that pharmacy every month. We have a very reliable income stream and, again, we are also opening new sources of income and new ways of communicating with consumers, “he said.