GoodRx Holdings Inc Q4 2024 Earnings Call Transcript

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

Question: Lisa Gill - JPMorgan Securities LLC - Analyst : Thanks very much. Good morning. Welcome back, Chris. It's nice to work with you and Wendy again. I really just wanted to start with a couple things. Wendy, you talked a lot about different initiatives with both manufacturers, retailers, continue to focus on the consumer, et cetera. Can you maybe just talk about how many of those new initiatives are included in the guidance? And specifically when we think about ISP and you talked about ISP wrap, can you talk about what the experience has been there and also what the expectation is and guidance for 2025?

Question: Lisa Gill - JPMorgan Securities LLC - Analyst : All right, thank you.

Question: John Ransom - Raymond James & Associates, Inc. - Analyst : Hey, good morning. Just thinking about your pharma manufacturing solutions, can we agree that pharma man sol is a terrible name? You don't have to use that anymore.

Question: John Ransom - Raymond James & Associates, Inc. - Analyst : Thank you. At the Analyst Day, the algo was this was a 20% to 30% growth market. Do you still stand by that?

Question: John Ransom - Raymond James & Associates, Inc. - Analyst : Thank you.

Question: Charles Rhyee - TD Cowen - Analyst : Yes, thanks for taking the question and great to be working with you again, Chris. Hey, question really, Wendy is about a little bit more, if you can talk about ISP here. I think a year or two back, right, the opportunity here was partnerships with ESI and Caremark and a couple other PBMs. And the message that we were getting last year was that while they were signed up, it wasn't being fully rolled out to employer customers, even though our understanding was it was sort of an opt in -- sorry, an opt out kind of model for employers and had to do, I guess, with not all the formulary and not all drugs. Can you give us an update on where we are in those rollouts? Because it seems like you're spending a little bit more time talking about ISP wrap and obviously manufacturer solutions, just trying to understand sort of the role ISP in the traditional sense plays and sort of where those programs with those big PBM partners is currently. Thanks.

Question: Charles Rhyee - TD Cowen - Analyst : Thank you. I appreciate that.

Question: Michael Cherny - Leerink Partners LLC - Analyst : Good morning, and thanks for taking the question. Maybe Wendy, to build on that a little bit, obviously a management team has been changed over but on the last earnings call, the preliminary guidance was talking about the changing economics that pharmacies are trying to drive with PBMs broadly. I like how you use the term. I think it was a friend of pharmacy going forward. But what do you see in terms of the current landscape right now and GoodRx's ability to continue to position itself well against the push and pull of potentially changing reimbursement dynamics?

Question: Jenny Cao - Truist Securities Inc. - Analyst : Good morning, Wendy and Chris. My name is Jenny from Truist Securities on for Jailendra Singh. I'm just curious on just a little bit more color on your capital allocation priorities. You talked about investing in more profitable growth to navigate near-term challenges in your press release. So as you think about your marketing strategy this year, any particular areas of focus you would highlight? There's the Meta ad policy changes in healthcare and how do you think about contra revenues approach to customer acquisitions?

Question: Scott Schoenhaus - Keybank Capital Markets - Analyst : Hi, team. Thanks for taking my question. Wendy, your comments seem to be really optimistic about the partnership with retailers and talking about the savings that you provide them. And I'm just wondering, can you remind us the breakdown of direct contracting, hybrid and then traditional PBM contracting that you guys had last year, where it is today, where do you think it can be by the end of the year? And what's really the ideal mix between the three buckets? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 1:00PM, GDRX.OQ - Q4 2024 GoodRx Holdings Inc Earnings Call

Question: Scott Schoenhaus - Keybank Capital Markets - Analyst : Thanks.

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : Hi, good morning. Thanks for taking my questions. Two quick ones for me. Well, maybe the question is clear. The answer might be longer. But the first is on the Kroger channel returning. Can you just give us an update on the uptake you're seeing here and how does that compare to your internal expectations? And then also you launched GoodRx expect. I'm just curious what opportunity you're seeing in this adjacency. And I know it's a bit early here, but any consumer adoption at this point. Thanks.

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : Yes. On the Kroger channel returning, can you just give us an update on the extent that you're seeing consumers returning here and how does that compare to your internal expectations? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 1:00PM, GDRX.OQ - Q4 2024 GoodRx Holdings Inc Earnings Call

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : Yes, correct. Just the extent that you're seeing any traction there.

Question: Stan Berenshteyn - Wells Fargo Securities LLC - Analyst : Thanks.

Question: Steven Valiquette - Mizuho Securities - Analyst : Thanks. I guess, just regarding the new administration and RFK historical negatively biased views on pharmaceutical marketing to consumers. Probably some mixed implications for GoodRx and your digital pharma manufacturer solutions if any policies were to move to the front burner. So obviously it's too early to really give any specific details but just curious to get your high level thoughts on this topic as I'm sure you've had some internal discussions. Thanks.

Question: Steven Valiquette - Mizuho Securities - Analyst : Okay, got it. Okay, thank you.

Question: Jay Jin - Morgan Stanley & Co. LLC - Analyst : Hi, this is Jay Jin on for Craig. Thanks for taking my question. Previously, I know the goal posts are fairly wide for prescription transactions due to the rate of negotiations and headwinds in retail pharmacy. And I know there are some mentions of near-term challenges in the release. Can you expand on what kind of headwinds are reflected in there? Are you still expecting any more pharmacy store closure impact lingering into 2025? Thank you.

Question: George Hill - Deutsche Bank Securities, Inc. - Analyst : Yes, good morning, guys and thanks for taking the questions. Two very quick ones for me, I guess, Wendy, number one is kind of following on the theme of being a friend of the pharmacy. Are there any plans to increase engagement or penetration in the independence channel? And number two, I guess, could you comment on what is explicitly contemplated in the guide for 2025 as it relates to volume increases from renewing engagement with Kroger? Thank you.

Question: George Hill - Deutsche Bank Securities, Inc. - Analyst : Yes, that was it.

Question: George Hill - Deutsche Bank Securities, Inc. - Analyst : That's helpful. Thank you.

Question: Allen Lutz - BofA Securities Inc. - Analyst : Good morning, and thanks for taking the questions. I wanted to follow-up on Michael's question around some of the changes going on in the end market in 2025. One of your pharmacy partners introduced a cost-plus model that's going out in 2025. Another one of your PBM partners is passing along rebate savings at the pharmacy counter. Is there anything that's different that you're seeing through two months in 2025 whether it's the type of insurance coverage where you maybe supplementing a different drug mix? Has anything changed as you kind of turn the calendar year from 2024 into 2025 as it relates to your win rate mix or really just anything that you're seeing in the end market? Thanks.

Question: Allen Lutz - BofA Securities Inc. - Analyst : Thanks, Chris.

Question: Luismario Higuera - Citigroup Inc. - Analyst : Hey, this is Luis on for Daniel Grosslight. My question is on GLP. It appears that GLP-1 supply constraints are easing up. Are you currently working with GLP-1 manufacturers and how do you expect this to evolve over the next year or so? Thanks.