GoodRx rallies after saying grocer issue recently addressed

GoodRx said in last night’s earnings letter, “We are pleased to share that the grocer issue we discussed on our first quarter earnings call was very recently addressed. As communication is rolled out to the grocery chain’s pharmacists, we expect GoodRx discounts to be consistently welcomed at the point of sale. We are delighted that our consumers can enjoy the prescription access and affordability benefits of GoodRx at the grocery chain, who we value as a partner. Despite this very recent positive development, we do not anticipate a meaningful volume or revenue lift in the third quarter based on the rollout timeline of relevant communications to the grocery chain’s pharmacies, new user adoption and returning user levels. We expect third quarter revenue to be approximately $185 million. This assumes the grocer issue has an estimated impact of $35 million to $40 million on third quarter prescription transactions revenue. We’re expecting a greater impact quarter-over-quarter because the effect on the second quarter gradually increased as the quarter developed, whereas we started the third quarter facing a significant impact. In addition to the effect of the grocer issue on prescription transactions revenue, we expect our recent consumer engagement efforts, which we will discuss on our second quarter earnings call, to negatively impact prescription transactions revenue by approximately $5 million in the third quarter.” Shares of GoodRx are up 6% to $8.20 in morning trading.

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