Home Investing GoodRx shares opened 30% up on Tuesday: how come?

GoodRx shares opened 30% up on Tuesday: how come?

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Shares of GoodRx Holdings Inc (NASDAQ: GDRX) opened 30% up on Tuesday after the telemedicine company reported market-beating results for its fiscal second quarter.

GoodRx Holdings Q2 earnings snapshot

Lost $1.4 million versus last year’s $31.1 million net incomePer-share earnings on an adjusted basis came in at 6 centsRevenue jumped 9.0% year-over-year to $191.8 millionConsensus was 4 cents a share (adj) on $184.7 million revenueSubscription revenue saw an annualised growth of 82%

The healthcare firm attributed the strength to higher prices and increased volume. It, however, ended Q2 with 5.8 million monthly active customers, down from 6.0 million in the same quarter last year. GoodRx shares are still down about 70% year-to-date.

Earlier this year, GoodRx bought vitaCare Prescription Services for $150 million.

What does GoodRx expect for the future?

According to the Santa Monica-headquartered company, variables including the impact of higher prices on consumers and undetermined number of returning users make it difficult to offer a meaningful guidance for the full year.

For the current financial quarter, though, GoodRx forecasts $185 million in revenue on about a 20% adjusted EBITDA margin. The letter to shareholder reads:

The grocer issue we discussed on Q1 earnings call was recently addressed. We’re delighted that our consumers can now enjoy the prescription access and affordability benefits of GoodRx at the grocery chain, who we value as a partner.

Wall Street has a consensus “hold” rating on GoodRx shares with the average price objective of $10.22 that’s roughly in line with where the stock is trading at the time of writing.

The post GoodRx shares opened 30% up on Tuesday: how come? appeared first on Invezz.

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