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GoodRx Beats Q4 Estimates, but Drops on Weak Guidance

GoodRx topped analysts fourth-quarter estimates, but missed analysts' first-quarter revenue guidance estimates.

Shares of prescription drug price comparison platform GoodRx Holdings  (GDRX) - Get GoodRx Holdings Inc. Report dropped Friday after the company issued forward-looking guidance that missed analyst estimates despite relatively strong fiscal fourth-quarter results.

GoodRx reported a GAAP net loss of $298.3 million for the quarter, but adjusted earnings of $32.2 million, or 8 cents per share, topped analyst estimates by a penny per share. Revenue of $154 million rose from $113 million a year ago and topped estimates of $147.8 million. Much of the GAAP loss was due to $285 million in stock-based compensation that was awarded to one of the company’s co-CEOs for successfully bringing the company public. 

"We reached more consumers than ever with an improved and simplified user experience. But we have just scratched the surface of the massive opportunity ahead. We believe that there will be lasting changes to the way Americans find and receive healthcare after the pandemic," said co-CEOs Doug Hirsch and Trevor Bezdek in a statement. 

However, GoodRx also guided for fiscal first-quarter revenue between $158 million and $161 million and full-year revenue between $735 million and $755 million. Analysts polled by FactSet are expecting first-quarter sales of $162 million and full year sales of $747 million. 

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GoodRx shares were down 11.0% to $38.80 Friday.

"We see 2021 as a massive opportunity to bring more value to our consumers at each stage of their healthcare journey. We remain intently focused on continuing to strengthen our brand and broaden our reach, taking our content and insights to the next level, and investing in our platform to launch new products and services," Hirsch and Bezdek said. 

GoodRx shares have been under pressure since Amazon  (AMZN) - Get, Inc. Report announced the launch of rival service Amazon Pharmacy in November. 

Amazon's new offering comes more than two years after Seattle-based Amazon's $753-million acquisition of PillPack, an online pharmacy known for organizing pills into packets that also delivers drugs directly to consumers’ homes.

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