GoodRx Holdings, Inc. (NASDAQ:GDRX) Q4 2022 Earnings Call Transcript

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So we’ve been able to continue to maintain this competitive advantage we have through our multi PBM network. We’ve been able to maintain really great pricing and satisfy all of the participants. So we are really pleased that we’ve been able to make these changes and think it’s very helpful for the long term stability of the business.

Karsten Voermann : I think the only thing I’d add is that. Karsten here quickly George. The other thing I’d add is that, part of the reason for all this is the direct contract volume is not really that material for the business at all. The direct contracts are really helping us in corner cases, more than driving a significant majority or even a large minority of volume today.

George Hill: That’s helpful. Thank you.

Operator: Thank you. One moment for our next question. Well it come from Robert Simmons with DA Davidson. Your line is open.

Robert Simmons: Hey! Thanks for taking my question. It’s good to hear that you doubled the proportion of fully registered members. I was wondering if you could share how penetrated you are now and how high do you think that can get over time?

Trevor Bezdek: Thank you for the question. We spoke to the registrations and the priority we have to getting to know our customers better. The real focus here is that we are trying to make sure we get users registered. Those users as Doug mentioned, we’re seeing substantially higher LTV from early indications. We’re not disclosing the total registration base, but we did double the proportion of transactions attached to those fully engaged users in the second half. And that is very encouraging, and we think that will continue and that there’s lots of opportunities there, and as Doug alluded to, from where we have those registries, just opens up lots of new opportunities, opportunities to cross sell, opportunities to give better functionality, opportunity to drive LTV increases. So we’re very excited about the engagement efforts.

Operator: Thank you. One moment for our next question. And that will come from the line of Steve Valiquette with Barclays. Your line is open.

Steve Valiquette: Great, thanks. Good afternoon. So a couple of things. First has been a little bit of further revolution on the competitive landscape with this recent news around Amazon RXPass subscription service. The Optum Rx launching Price Edge. Just the question really is just whether or not these new competitor offerings were something for which you maybe had to specifically adjust the €˜23 guidance range for or would the impact from these if any, really just be absorbed within the guidance range, the way you see it now. And then on the positive side, again, you alluded to the potential tailwinds from Medicaid redeterminations earlier on the call. And I guess just to clarify, the same sort of thing are the tailwinds from those Medicaid roll off, something that you specifically baked into the ’23 guidance, or is this something that would be more of an upside driver relative to the range. Thanks.

Trevor Bezdek : I’m going to let Karsten speak briefly to the questions around guidance, and then I’ll have Doug answer the question around competition.

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