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Online pharmacy company GoodRx Holdings (NASDAQ: GDRX) wasn’t the healthiest stock on the market Thursday. Its share price fell sharply, by almost 19% on the day, following the release of a new set of quarterly results. That steep decline wasn’t indicative of the broader equities space at all, as the S&P 500 index declined by a comparatively very modest 0.8%.

Third-quarter revenue was dinged by a contract termination charge

GoodRx’s third quarter saw the next-generation pharmacy earn revenue of just under $180 million, which unfortunately for it was notably below the analyst consensus of more than $188 million. It was also lower than the third-quarter 2022 figure of a bit over $187 million.

The dynamic was similar for adjusted non-GAAP (generally accepted accounting principles) net income; this slid to $25.5 million ($0.06 per share) from the year-ago profit of $29.9 million. Despite the drop, the result was in line with prognosticator projections.

The top-line slide was due in large part to a $10 million contract termination with a client GoodRx was forced to book as a reduction of revenue. Even stripping that out of the equation, though, leaves the company with only thin (1%) year-over-year growth in that line item.

Guidance came up short, too

GoodRx also proffered guidance for both its current (fourth) quarter and for full-year 2023. For the latter period, it’s anticipating revenue of $742 million to $748 million; however, that’s some distance underneath the collective analyst expectation of almost $755 million. The 2022 figure, meanwhile, was well higher at $767 million.

As for profitability, the company is forecasting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the high 20% range.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GoodRx. The Motley Fool has a disclosure policy.

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