The shares of GoodRx Holdings (NASDAQ:GDRX) added ~37% in the post-market Monday after the drugs savings platform beat the consensus with its Q2 2022 financials and announced that its previously disclosed grocer issue has now been resolved.
GoodRx (GDRX) shares sank after Q1 2022 results in May after the company noted a dispute with a grocery chain that has impacted the acceptance of discounts for a group of drugs. The management set the issue’s impact at ~$30M for the previous quarter.
However, revenue for the quarter rose ~9% YoY to $191.8M beating the consensus estimates of $184.7M, while monthly active consumers fell ~3% YoY to 5.8M.
Meanwhile, the net loss for the period dropped ~105% YoY to $1.4M from $31.1M of net income in the prior year period, mainly due to the grocer issue and income tax benefit.
“We are pleased to share that the grocer issue we discussed on our first quarter earnings call was very recently addressed,” the company said in its Q2 letter to shareholders.
However, citing the timeline to release relevant communications to the grocery chain’s pharmacies, the rate of returning users, and the addition of new users, GoodRx (GDRX) ruled out a meaningful benefit for revenue or volume in Q3 2022.
With a $35M – $40M impact projected from the grocer issue, the company estimates revenue to reach $185M in Q3 2022 compared to the $201.4M in the consensus.
Read More: GDRX stock climbs as company resolves grocer issue (NASDAQ:GDRX)