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

That said, I think our perspective on it has remained the same way as it has previously, that it was generally a great success to be doing the price increase. We’ve seen subscriptions revenue increase year-over-year dramatically for the fourth quarter. And while we have seen some continued churn that may continue on through the beginning part of this year, we expect sort of like a half-life curve, the churn gets less and less quarter-over-quarter. So from those perspectives, I think we’re quite pleased with the way subscriptions are performing for us.

Unidentified Analyst: Okay, great. Thank you.

Operator: Thank you. One moment for our next question. And will come from the line of Louise Mario Hegar.

Unidentified Analyst: Hi! This is Louis on for . I just wanted to ask if there is any update on the trends from the Kroger Savings Club renewals and if you expect that to be decremental to revenue or EBITDA for ’23? Thank you.

Karsten Voermann: Hi! Thanks for the question Louise, Mario. This is Karsten again. So with regard to KSC, that program is still adding users, but we expect that it will discontinue adding users around July of 2024. The program though is pretty tiny, and what I mean by that is we’ve on previous calls talked about a small contribution, both in terms of subscriber count and on revenue. To frame that up for you, when you think about it, the pricing on Kroger Savings Club is $36 and $72 a year for an individual and a family. That amount gets split between Kroger and GoodRx. So only a portion of that comes to GoodRx. So we have a fraction, and our own pricing is $9.99 a month, and $19.99 months for our individual and family plans.

So of price alone, you can see that it skews from a revenue perspective dramatically towards our own plans. So, we don’t expect a material impact on our financials should we stop adding new Kroger Savings Club users around middle of 2024 at all. We see it as not impactful.

Operator: Thank you. I’m showing no further questions in the queue at this time. Thank you all for participating in today’s question-and-answer session, as well as today’s conference call. This concludes today’s program. You may now disconnect.