What happened
Shares of GoodRx Holdings (GDRX 2.21%) dropped 18.9% this week as of late Friday afternoon, according to data provided by S&P Global Market Intelligence. The healthcare stock closed at $5.76 last week and fell to as low as $4.49 on Friday on news regarding a shake-up at the company, which offers virtual doctor visits and lets users get discounts on prescription drugs. The stock is flat this year but down more than 65% over the past year.
So what
GoodRx is a digital platform designed to help consumers pay less for prescription drugs. The company announced on Tuesday that co-founders Doug Hirsch and Trevor Bezdek were transitioning into new roles as chief mission officer and chairman, respectively. Scott Wagner, former CEO at GoDaddy, is moving in as GoodRx's CEO on an interim basis.
It wasn't so much the changes in the C-suite that dropped the stock but that they came so close to the company's first-quarter earnings, scheduled for May 10. The timing led investors to be concerned that a down quarterly report was on its way.
Now what
The company was already reeling from a Federal Trade Commission investigation that led to GoodRx settling the matter in February by paying a $1.5 million fine and agreeing to certain remedies. The FTC said GoodRx had shared patient data with third parties for advertising purposes, misrepresenting its HIPAA compliance.
In 2022, GoodRx reported revenue of $766.6 million, up 2%, and had a net loss of $32.8 million, compared to a net loss of $25.3 million in 2022.
The company has said it plans to beef up its direct sales connection, using its data to reach more customers. It also has said it plans to expand its partner offerings. The company's guidance points to a slow first quarter but an improved 2023.
GoodRx said it expects first-quarter revenue to be between $181 million and $183 million, down 10% to 11%, year over year. It added that yearly revenue is expected to be between $780 million and $790 million, a rise of 2% to 3%.
