Scott Wagner: Scott, thanks for the question. There’s, I think in the industry you’re hearing a bunch of commentary about budgets really for us in some ways we’re budget independent. And our effort right now is just getting the GoodRx value proposition still in front of the right brand marketers in their agencies, you know again for context this business is three years old less than three years old and the value proposition of GoodRx for brand marketers as really a transaction engine to match patients and physicians with a transaction is kind of no-brainer marketing really And there’s a whole bunch of brand drugs that you know now that I’ve been in the business for six months I look at say gosh we should be the first move of marketers which is hey sponsor your brand drug page and all your access programs should run through GoodRx. And we have to go through now the pick and shovel work of getting that in front of the right people and running those pilots through budgets and getting them ramped up.
But I’m hopeful on our behalf that as we go into 2024 really this this work is in our control And less susceptible of the macro as does matter these are things that we should be able to do on our own.
Operator: Thank you. Our next question comes from the line of Lisa Gill of JPMorgan.
Lisa Gill: Thanks very much and good morning. Scott I want to go back to ISP for a minute and just make sure that I understand something. The way I understand it and talking to the PBM is that because we’re talking about primarily high deductible plans So going back to your comment people not being able to afford the drug many times They forgo the drug, but my understanding from the PBMs is that each employer will have to opt into this program, and that’s what’s going to take time So as we think about plan design for 2024 will they notify you say in the next couple of months, so we’ll have an idea when you give guidance in 2024 or will this be kind of plans rolling on as we move throughout 2024 would be my first question. And then secondly, when I think about the margin for ISP is it similar to what you see today an RX transaction?
Scott Wagner: Thanks for the thanks for the question in terms of rollout The opt-in or opt-out is a little different for each of the PBMs. And so it’s a little different, and again that’s one of the things that as we get into January and roll through the first quarter it will help us come back to all of you with a tighter range for what to expect. You’re right. That’s the essence of the ramp. But again, there’s really nice I think uptake and discussion around the value prop themselves certainly not only from the PBMs, but as they’re bringing this out to all of their payer customers. So that’s kind of how it’ll work. Let me hand it off to Raj or Karsten on the economics question
Raj Beri: Yes, I think more generally when we think about ISP from an economics perspective it mirrors our core PTR business essentially identically meaning that as a claim comes in it flows through the multi PBM model and the PBM with the best price at that particular pharmacy in that particular geography will generally win. So from an economic perspective, it’s in our prescription transactions revenue line and the economics of the transaction looks substantially identical from the revenue perspective.
Operator: Thank you. Our next question comes from the line of Eric Sheridan of Goldman Sachs.
Eric Sheridan: Thank you so much for taking the question. I’ll maybe also going back to the forward commentary, can you better help us understand what you see is some of the headwinds and tailwinds to margin both in terms of the way you’re building the guide for Q4 and how we should think about some of those headwinds and tailwinds evolving next year because it seems like you’re implying we should take Q4 margins and sort of run those out. But I wonder if there was variability in that that we should be aware of or mix shift dynamics that are underpin that. Thank you.
Scott Wagner: Hey, Eric, it’s Scott. I think broadly as you think about not only Q4 but going into next year We’re in a nice spot to have really nice flow through from incremental revenue growth. So make what you’re seeing is a bice balance right now that is as the business returns back to revenue growth. We’re in a good position to be able to flow through a sizable amount to the bottom line, one. Two, what we described and are going through with VitaCare, again, will create a nice little help to margins. And that’s going to let us invest in the areas to continue to rebuild growth as we get signal on what works, whether it’s more go to market on things like ISP or brands, farm manufacturer solutions on brands. Then we haven’t talked a lot about marketing, but again, in the same way, our marketing engine has really nice return today.
And there’s things underway that we’re doing to try to spend in a different way to get in front of our consumers and patients, both at retail and doctor’s offices, which is a little different than we’ve been in the past, but it’s got signal. And I think we’re giving ourselves nice room to lean into that as we see what works.
Operator: Thank you. Our next question comes from the line of Craig Hettenbach of Morgan Stanley.
Craig Hettenbach: Yes, thanks. Just wanted to come back to the farmer manufacturing solutions. And Scott, it sounds like you’re kind of being more focused as you evaluate the opportunity set. As you look out over time, how do you see kind of the growth opportunity, even if it’s a range or what could this market grow to in the coming years?
Scott Wagner: Yes, thanks for that question. I think broadly, that will absolutely be something when we get everybody together in the first quarter and a more fulsome investor day, not only for 2024, but kind of lay out some goal posts for the opportunity on a multi-year basis. I would say, however, that if a business is less than three years old, it’s $100 million in revenue. The brand pharma companies spend $5 billion on market access programs that today only 3% of patients actually access. And when I look at what that means for somebody like GoodRx, where tens of millions of lives right at the point of the prescription, taking brand drugs and matching them to generics in a logical way, it feels like most access programs should start at GoodRx. And so if you think about the potential for this on a multi-year basis, it absolutely seems significant and should be significant because we work and we should work.
Operator: Thank you. Our next question comes from the line of Stan Berenshteyn of Wells Fargo Securities.
