GoodRx files to go public with a rare attribute: Profits

Doug Hirsch, Co-Founder and C0-CEO of GoodRx.

Heidi Petty | CNBC

GoodRx, a firm that helps customers entry pharmaceuticals at a low cost, filed to go public on Friday. The firm will checklist on the Nasdaq beneath the image GDRX.

It’s a part of a current spate of IPO filings from tech firms, together with information analytics supplier Palantir, information storage firm Snowflake and telemedicine supplier Amwell

But GoodRx has one factor these different fast-growing firms don’t: A report of constant profitability.

According to the submitting, the corporate earned $55 million in revenue for first half of 2020, up from $31 million within the first half of 2019 — a leap of 75%. Revenues for the primary half of 2020 had been $257 million, up from $173 million within the first half of 2019, for progress of 48%.

In 2019, it pulled in $66 million in revenue on $388 million in income. The submitting reveals income all the best way again to 2016, the earliest yr for which monetary data is included, and the corporate previously informed CNBC that it has been worthwhile on-and-off since 2013.

GoodRx’s profitability is a rarity amongst start-ups submitting to go public. Another notable instance is Zoom, the under-the-radar videoconferencing software program that made its debut in April of 2019. That firm’s inventory is up greater than eightfold since its debut and has gained 339% this yr, as the worldwide coronavirus pandemic stored folks dwelling and spurred demand for brand spanking new methods to talk remotely.

GoodRx, which relies in Southern California, was based in 2011 by Facebook veteran Doug Hirsch and serial software program entrepreneur Trevor Bezdek. The firm noticed a want to enhance transparency within the extremely complicated world of pharmaceuticals. So it constructed a set of low cost playing cards and coupons for customers to take to the pharmacy, usually permitting them to get a lower cost.

It makes its cash by gathering charges from the pharmacy advantages managers, or PBMs, that it really works with every time customers current their GoodRx coupon on the pharmacy. About 17 million folks use GoodRx each month. Going ahead, it plans to broaden into new areas, together with telemedicine.

However, the enterprise might take a hit if policymakers transfer to upend the drug provide chain. If customers had been coated by insurance coverage and drug costs had been extra clear and inexpensive, there could be much less of a want for GoodRx.

Hirsch has previously mentioned: “If America as a country decided to keep all Americans healthy and things were upfront and transparent, there would be no need for GoodRx. I don’t suspect that’ll happen, but if it did, I’d happily hang up my hat and move on to another problem.”

The IPO is being led by Morgan Stanley, Goldman Sachs and JP Morgan. The firm has beforehand raised financing from personal fairness companies specializing in expertise and well being, together with Silver Lake and Francisco Partners. It was valued round $2.eight billion in a 2018 financing spherical.

GoodRx was no. 20 on this yr’s CNBC Disruptor 50 checklist of promising personal firms.

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