GoodRx Stock is a Potential Dip Opportunity Buying Opportunity

Pharmacy

medicine savings and digital healthcare platform GoodRx (NASDAQ: GDRX) the stock has fallen to all-time lows accelerated by a sell-off in the benchmark index. The platform has saved consumers more than $35 billion in prescription costs since its inception. More than 700,000 healthcare providers have used the GoodRx platform. The Company continues to develop consumer and provider networks. The acquisition of flipMD will expand engagement with providers and enhance and complement pharmaceutical manufacturing solutions. Despite the impact of Omicron reducing Q4 2021 yields, growth has continued. Its Gold subscription plan has grown to over 1.6 million active members. GoodRx strives to become the largest healthcare platform in the US Discreet investors seeking exposure in digital healthcare savings could see an opportunistic setback in GoodRx’s stock.

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Fiscal Revenue Release 2021 Q4

On February 28, 2022, GoodRx reports its Q4 2021 fiscal earnings report for the quarter ended December 2021. The company reports earnings per share (EPS) of $0.09 excluding non-recurring items versus analysts’ consensus forecast for earnings of $0.10, (- $0.01) missed. Revenue grew 39% year-on-year (YoY) to $213.3 million, missing analyst estimates of $217.51 ​​million. Monthly active consumers grew 14% YoY to 6.4 million. Prescription transactions for the quarter grew 21% YoY to $158.8 million. Subscription revenue grew 79% YoY to $17.4 million.

Weakness Guide

GoodRx lowered its Q1 2022 fiscal earnings guidance to around $200 million, less than the consensus analyst estimate of $227.44. The 2022 fiscal year earnings guidance is expected to be around $916 million versus the analyst consensus forecast of $1.02, up 23% but still falling short of analyst expectations.

Conference Call Takeaways

GoodRx Co-CEO Dough Hirsch reviewed several developments for 2021 including major investments in brands and product acquisitions that provide new consumer content and resources. He commented, “Our platform has grown as much as our reach. We are excited to deliver our content initiatives around GoodRx Health and our provider-focused platform extensions that help providers help their patients and support our pharmaceutical manufacturers’ solution offerings.” The company has helped save more than $35 billion for Americans since its inception. This saves five million users over $500 compared to the pharmacy cash price. The company raised its NPS to 90 with healthcare providers matching its NPS to consumers. GoodRx Co-CEO Trevor Bezdek pointed out that the effects of COVID have been underestimated in its duration and impact on its business. This creates a compounding effect over time due to the frequency of refills and the long-term nature of the prescription. The Company continues to increase its market share and revenue despite facing challenges. The company launched its GoodRx for Providers product in Q4 as it plays an important corner in its goal of becoming the largest domestic provider platform. The company has a historically adjusted EBITDA margin of 40% due to generating significant cash flows. Bezdek expects mid-20% annual revenue growth in the longer term. GoodRx reached more than 6.4 million monthly active users and more than 1.6 million subscribed members in Q4. The Omicron had an impact at the end of the quarter. The company integrated with Wheel in Q4, a digital healthcare platform that supports virtual primary care and behavioral healthcare. This allows GoodRx discounts for Wheel’s millions of patients. More than 700,000 providers from primary care to oncology have used the GoodRx platform. Bezdek points out, “We have gradually introduced our new provider mode to the subset of providers visiting GoodRx and have seen strong adoption, with over 90% of providers that have been introduced choosing this new mode, which represents more than 80,000 HCPs. and grow. We believe this high adoption rate without any off-platform marketing underscores the provider’s very distinct value and demonstrates its competitive advantage.”

GDRX’s Opportunistic Pullback Level

Using gun charts on weekly and daily timeframes allows for a precise display of the price play field for GDRX. Weekly rifle chart peaks near $27.43 Fibonacci Levels (fib) before plunging into revenue. The weekly gun chart forms an inverted pup breakdown with the 5-period moving average (MA) falling at $21.97 followed by the 15-period MA at $27.56 with the weekly Bollinger Bands lower at $8.31. Weekly stochastic resisted an attempted 20 band bounce and has been back down again. The downtrend in the daily rifle chart continues with the 5-period MA falling at $14.86 and the 15-period MA at $19.54 with the BB lower at $6.64. Daily stochastic stalled below the 10-band. Daily low market structure (MSL) triggered a break through $16.64. Wise investors can look for opportunistic pullback levels at fib $10.39, $9.41, fib $7.77, $6.49, $5.59, $4.62, $3.40, and $2.51. The upward trajectory ranged from the $17.19 level upwards towards the $27.43 fib level.