GoodRx’s fourth-quarter earnings reflect the financial challenges of the consumer digital health company.
Quarterly revenue fell 14% to $184 million, and the company said its problems with Kroger, a national grocery chain, cost it $40 to $50 million in lost revenue. Kroger temporarily stopped accepting GoodRx discounts at the point of sale in May. The matter was resolved in August but GoodRx said at the time the financial impact of the dispute would last through the end of the year.
Additionally, revenue in GoodRx’s prescription trading business fell 19% to $129.4 million. The company also saw an 8% drop in monthly active consumers engaged in its prescription-trading business.
To make up for the drop in revenue, GoodRx cut administrative expenses as well as sales and marketing spending in the fourth quarter. Sales and marketing expenses fell 21% to $84.1 million, while administrative expenses fell 19% to $28.6 million.
GoodRx laid off 140 employees, or 16% of its workforce, in September across its marketing and technology teams.
The company posted a fourth-quarter net loss of $2 million or 0 cents per share, compared with a net loss of $39.9 million or 10 cents per share in 2022. tied to an income tax provision under which GoodRx receives $2.8 million in benefits in 2022 versus $45.8 million in expenses in 2021.
For the year, GoodRx posted a net loss of $32.8 million, or 8 cents per share, compared with a net loss of $25 million, or 6 cents per share, in 2021. from $745 million in 2021 to $765 million in 2022. The company said it expects to grow small sales in 2023, from $780 to $790 million.
GoodRx recently paid $1.5 million to settle the Federal Trade Commission because it was allegedly sharing health information with third parties. The FTC also prohibits GoodRx from sharing health information with third parties as part of enforcement action.
