Goodrx Holdings Inc at RBC Capital Markets Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sean Dodge - RBC Capital Markets - Analyst : Sounds great. Alright. So, I guess where we'll start is where we've gotten the most questions here in the last couple of weeks and it's around -- Q1 results were great --

Question: Sean Dodge - RBC Capital Markets - Analyst : -- but there's some near-term challenges you're experiencing, as one of your key retail partners renegotiates some of its PBM contracts. So, I want to -- maybe, if you can give us just a little bit of background there, and then we can kind of dig into that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 5:35PM, GDRX.OQ - Goodrx Holdings Inc at RBC Capital Markets Global Healthcare Conference

Question: Sean Dodge - RBC Capital Markets - Analyst : And on the $30 million expected impact, you said kind of tough to know exactly depending on how it resolves itself. You're also getting to see some data kind of here in the interim. How have volumes from this client trended over the last -- the weeks subsequent to the end of the quarter?

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. In --.

Question: Sean Dodge - RBC Capital Markets - Analyst : In -- Okay. So ramping up kind of is more of a headwind so far or --?

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And so maybe give us a little bit of a sense of how much of a worst case this $30 million assumes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 5:35PM, GDRX.OQ - Goodrx Holdings Inc at RBC Capital Markets Global Healthcare Conference

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And then if we think about some of the volume that's still flowing through -- you talked about not all the PBM contracts being renegotiated. And so there's still some PBMs that are unaffected by this -- with this retailer. And then there's also certain drugs or certain classes of drugs that are not been included. And so, [maybe] --.

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And then the risk of not knowing, is that -- we just don't know how long it's going to take for all of this to remediate itself and these negotiations to be done? Or do you think there are changes, longer-term changes that this grocer partner is contemplating as far as how they use PBMs or --?

Question: Sean Dodge - RBC Capital Markets - Analyst : Sure. Okay. And what is your understanding as to why this grocer chose to renegotiate all of their PBM -- the bulk of their PBM contracts at the same time?

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And if that is, in fact, the case, then that gives us a little bit of comfort then that this isn't something that we're going to see other brochures and other pharma -- companies replicate or would be (multiple speakers).

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And you've seen some kind of reallocation in this demand, you also said you're taking some steps to divert these customers, kind of educate people that have -- typically have gone to this particular grocer partner to get their scripts filled; to educate them to get them to kind of move elsewhere. So maybe just talk about the (multiple speakers) there.

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And you've said that you've gotten some kind of anecdotal updates, datapoints that point to this -- hopefully having a finite life being resolved (multiple speakers) [expedited] fashion. You mentioned the retailer tweeting about this --.

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay, great. And -- on the full year EBITDA outlook, you've said for the time being, because this should resolve itself soon, you're not doing anything to adjust sales and marketing. And I guess it's walking a little bit of a tightrope here. But just talk about like if this does drag on a little bit longer than you think, when you start to take steps to rationalize the base and maybe where you'd look to first?

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And if we set this grocery issue aside, The MACs held up really well in the first quarter. Maybe just how should we think about the trajectory of the MAC metric over the remainder of the year?

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And then your relationship with the PBMs, you've been in a really good position since the beginning. And you've been able to increment up your take rate as a result. Maybe just walk us through -- and that affects the PTR for MAC -- so the prescription [generation] revenue for MAC. So maybe just talk about your ability to continue to -- your relationship with the PBMs and your ability to maybe continue driving PTR per MAC.

Question: Sean Dodge - RBC Capital Markets - Analyst : Okay. And if we turn to manufacturer solutions, which is part of the business that had just an incredible first quarter.

Question: Sean Dodge - RBC Capital Markets - Analyst : The guidance initially was that business this year would nearly double.

Question: Sean Dodge - RBC Capital Markets - Analyst : Maybe just talk about the visibility you have on that. And then you also referenced to a couple of contracts that you've got in the later stages that -- maybe enhance that visibility.

Question: Sean Dodge - RBC Capital Markets - Analyst : Yes, we are -- I was going to squeeze in one more just about --

Question: Sean Dodge - RBC Capital Markets - Analyst : -- importance of -- it looks like you're getting -- you're trying to get closer to the point of care when it comes to delivering content to the doctor. Maybe just like 15, 20 seconds on how you're doing that and what that unlocks.

Question: Sean Dodge - RBC Capital Markets - Analyst : Sounds great. We're out of time, so we'll leave it there.

Question: Sean Dodge - RBC Capital Markets - Analyst : Yes, Whitney, thank you very much for coming out. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 17, 2022 / 5:35PM, GDRX.OQ - Goodrx Holdings Inc at RBC Capital Markets Global Healthcare Conference