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GoodRx said Wednesday its dispute last year with Kroger continues to affect its bottom line.
The company reported a first-quarter net loss of $3.3 million, or 1 cent per share, compared with net income of $12.3 million, or 3 cents per share, a year ago. Quarterly revenue totaled $184 million, down 10%. The company’s biggest revenue driver, its prescription transaction business, saw a 13% decline, to $155.5 million this year from $134.9 million in 2022.
Related: GoodRx’s co-founders step down as co-CEOs
GoodRx blamed the decline in the prescription transaction business on its contract dispute last year with the national grocery chain, which temporarily stopped accepting GoodRx’s discounts at the point of sale in May 2022. The company also blamed the Kroger issue for a 5% decrease in monthly active customers from 6.4 million in 2022 to 6.1 million this year.
On an earnings call, interim CEO Scott Wagner, who took over from GoodRx co-founders and co-CEOs Trevor Bezdek and Doug Hirsch in April, said he will try to shore up short-term and medium-term growth plans for the company’s prescription transaction business.
Originally, GoodRx cut its revenue guidance by $30 million because Kroger represents a large portion of its prescription transaction business. The company resolved the Kroger issue in August, but said the temporary disruption continues to affect its business. Wagner said he is focused on emphasizing relationships with the company’s retail pharmacy network, which includes more than 70,000 locations in the U.S.
Revenue from its subscription plans, primarily driven by an increase in monthly subscription fees, increased 26%, to $24.1 million.
This story first appeared in Digital Health Business & Technology.
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