00:00Investors like what they heard. The big question going on right now is with this beat and with this raise
00:05guidance, that is obviously a lot to do with profitability.
00:09The question is, is revenue growth going to reaccelerate?
00:14Yeah, well, I think what we proved in both the first and second quarter remain is that we had a
00:19beat and raise on top and bottom line.
00:21So the short answer is, in fact, yes. Those have been driven largely by the strategic priorities that we delineated
00:28early in this fiscal year, namely the growth of those pharma direct relationships and those brand point of sale buy
00:34downs to include the media partnerships with pharma, coupled with our subscription condition focus and that growth over the course
00:43of this year thus far.
00:44And they're delivering as we had anticipated.
00:47So give me a sense here as to kind of, you know, where you're taking this company, because when I
00:52was going through the transcript of the conference call and looking through it, I mean, it's clearly the legacy businesses
00:57is shrinking.
00:58And I don't know if that's deliberate or not, if that's just a function of pharmacies closing down.
01:03But where is the pivot for you as CEO to make sure that everything that has been built so far
01:09is preserved and it grows?
01:11Sure. Now, I appreciate the question. And candidly, that that is, in fact, the right question.
01:16So a couple of things. So the legacy business that is, in fact, that traditional coupon business that, to your
01:23point, manifests in our prescription transaction revenue line in our P&L, that has been, in fact, declining.
01:30Much of that, however, this year we purposely called out.
01:34And that was based upon investment in those pharma direct brand buy downs and subscriptions that purposefully engage consumers such
01:42that they build prescriptions in those different mechanisms.
01:46So as such, you're going to see a bit of a pull on that line.
01:49And over time, that ongoing attenuation that is growth both in pharma direct and those subscriptions is eclipsing, as we
01:58noted and predicted through the end of this year.
02:00And that is where we see the business pivoting to.
02:02I would also point out that the way in which we're engaging consumers in these subscription models also brings forward
02:10a consistently higher lifetime value.
02:12And so that revenue is, in fact, more durable as well, which is incredibly important for the ongoing growth story
02:18of GoodRx.
02:18With regards to, though, this is kind of big trend, overall trend to more direct consumer sales of pharmaceuticals.
02:25And you have these partnerships, but at the same time, you know, someone, you know, let's just take the weight
02:30loss drugs, for example.
02:31You can go to Novo or Lilly and buy directly from them.
02:34So kind of explain, I mean, what's your relationship there?
02:37And are you at risk of maybe of people just kind of circumventing the GoodRx, that platform, and going straight
02:42to the drug makers themselves?
02:44Sure.
02:45Well, you know, look, as you acknowledged, yes, manufacturers do, in fact, have their own direct-to-consumer platforms, Lilly,
02:51perhaps with the most pervasive and well-known one.
02:54Having said that, if there's one thing GoodRx knows and is exceptionally good at, is functioning as that digital marketplace,
03:01and candidly, the number one category for multiple years for prescription affordability.
03:06So for that reason, we have a very, very activated audience.
03:10So we've got over 280 million site visits a year.
03:13None of the PharmaDirect programs have a profile similar to that.
03:17So let's just start with a comparison as to the type of consumer utilizing our platform.
03:23Then you couple that with a high-intent audience that is showing up with a prescription in hand.
03:28Close to 85% of our consumers already have a prescription in hand.
03:32The majority of them also have insurance, which is a fact that I don't think a lot of people readily
03:37understand when thinking about GoodRx.
03:40But perhaps more importantly, those consumers that come well-activated also want choice in where they're actually fulfilling their medication.
03:47And what GoodRx brings to bear, unlike both competitive programs and PharmaDirect programs, which, to be clear, have their place.
03:55But we work with largely every pharmacy in the U.S.
03:58And if there's one thing we know, it's that consumers want choice and they want to stick with the pharmacy
04:03that they have historically been using.
04:05Our programs allow consumers to do that.
04:08We support both retail and home delivery.
04:10Candidly, we're just agnostic to what type of pharmacy our consumers use.
04:14I'm curious about pricing transparency, or at least the push to have more pricing transparency out there for drugs,
04:21particularly with pharmacies moving to cost-plus pricing and a variety of initiatives being promoted by the government in Washington.
04:29Does more price transparency, does that actually aid you, aid your business?
04:34It does.
04:35I mean, look, it all feeds into a couple of things, the first of which is consumers being activated to
04:41actually ask and seek comparative pricing.
04:44It's doing the same for employers at scale.
04:47And those things continue to point toward programs and interest in our platform,
04:53inclusive of a product that we recently launched in May called GoodRx Companion, which is an incredible complement to insurance.
05:00It's got $200 plus, $0 generics, in addition to hundreds more at $10 or less, in exchange for a $14
05:08.99 subscription fee per month.
05:11Those things continue to highlight that there are gaps in insurance.
05:15And what we also know is that the ongoing off-rostering, both of those on Medicaid,
05:21as well as those that didn't re-enroll in the various ACA opportunities,
05:26continue to provide tailwinds for consumers looking for competitive cash pricing in a transparent manner.
05:33Consequently, we think that the future and opportunity for cash will continue to proliferate and grow.
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