Doug Hirsch, Co-Founder and C0 CEO of GoodRx.
Heidi Petty | CNBC
GoodRx, a company that helps consumers access prescription drugs at a discount, went public on Friday. The company is listed on the Nasdaq under the symbol GDRX.
It's part of a recent spate of IPO filings from technology companies including data analytics provider Palantir, data storage company Snowflake and telemedicine provider Amwell.
But GoodRx has one thing these other fast-growing companies don't: a record of consistent profitability.
According to the filing, the company posted a profit of $ 55 million in the first half of 2020, up from $ 31 million in the first half of 2019 – a jump of 75%. Revenue in the first half of 2020 was $ 257 million, compared to $ 173 million in the first half of 2019, an increase of 48%.
In 2019, the company posted profits of $ 66 million on sales of $ 388 million. The filing shows profits through 2016, the earliest year for which financial information is included, and the company previously told CNBC that it has been consistently profitable since 2013.
GoodRx's profitability is a rarity among startups seeking an IPO. Another notable example is Zoom, the under-the-radar video conferencing software that debuted in April 2019. The company's stock has increased more than eight-fold since it debuted, up 339% this year as the global coronavirus pandemic kept people at home and fueled demand for new ways to communicate at a distance.
GoodRx, based in Southern California, was founded in 2011 by Facebook veteran Doug Hirsch and serial software entrepreneur Trevor Bezdek. The company saw a need to improve transparency in the highly complex world of prescription drugs. Therefore, a number of discount cards and coupons have been created that consumers can take to the pharmacy, often for a cheaper price.
It makes its money collecting fees from the Pharmacy Performance Managers [PBMs] they work with when consumers show their GoodRx voucher at the pharmacy. About 17 million people use GoodRx every month. Expansion into new areas is planned for the future, including telemedicine.
However, business could take a hit if policy makers try to improve the drug supply chain. If consumers were covered by insurance and drug prices were more transparent and affordable, GoodRx would be less necessary.
Hirsch previously said, "If America as a country chose to keep all Americans healthy and things were open and transparent, GoodRx wouldn't be required. I don't suspect this will happen, but if it did, I would . " Feel free to hang up my hat and move on to another problem. "
The IPO will be led by Morgan Stanley, Goldman Sachs and JP Morgan. The company has previously raised funding from private equity firms specializing in technology and health, including Silver Lake and Francisco Partners. In a financing round in 2018, a value of around 2.8 billion US dollars was achieved.
GoodRx was no. 20 on this year's CNBC Disruptor 50 list of promising private companies.