GoodRx’s underperformance in Q2 could be temporary as more consumers seek discounts for healthcare services

The news: GoodRx reported a net loss of $1.4 million in Q2. That’s a 105% decrease in net income compared with the $31.1 million the company earned during Q2 of last year.

How we got here: The drug discount platform attributed its year-over-year decreases partially to costs of its recent vitaCare acquisition and the loss of a big customer.

• In February, GoodRx acquired prescription services vitaCare in a $150 million deal.
• In May, GoodRx anticipated its Q2’22 earnings would tumble after a major grocery store chain stopped accepting its drug discounts. It didn’t specify which grocery chain pulled out.

The bigger picture: GoodRx says it resolved its issue with the grocery store customer, which means revenues could rise again this year.

This won’t be immediate, though. GoodRx doesn't expect a “meaningful volume or revenue lift” in Q3 based on the rollout timeline of communication with the grocer, new user adoption, and returning user levels.

The silver lining: Consumers are becoming more conservative with their purchases in the era of uncertainty, which could actually make drug discount platforms like GoodRx even more popular this year.

• About 9% of US adult consumers say healthcare is the first area they’d make cutbacks due to tighter household budgets, per a June 2022 YouGov survey.
• That means more consumers will be on the hunt for healthcare deals. About 13% of consumers say they’ve switched to a more affordable medication alternative due to rising prescription costs, per a 2021 GoodRx survey of over 1,000 US adults.