GoodRx, an organization greatest identified for its prescription worth transparency instruments, will lay off roughly 140 staff, making up about 16% of its workforce.
In keeping with a submitting with the Securities and Trade Fee, the discount will primarily have an effect on its technology-focused and advertising segments.
“The corporate is concentrated on effectively rising its core prescriptions enterprise, accelerating its pharma producer options enterprise and doubling down on shopper engagement,” Karsten Voermann, GoodRx’s chief monetary officer, wrote within the SEC submitting. “As the corporate focuses on these targets, it’s consolidating capabilities and eliminating or decreasing funding in areas of decrease focus.”
THE LARGER TREND
GoodRx posted a $1.4 million internet loss in the course of the second quarter, in contrast with $31.1 million in revenue in the course of the prior-year quarter. It reported income of $191.8 million, a 9% improve from $176.6 million within the second quarter final yr.
The corporate additionally stated it had resolved an subject with an unnamed nationwide grocery chain – which analysts suspected was Kroger – that had affected the acceptance of pharmacy profit reductions for some medication.
Throughout its second quarter earnings name, GoodRx stated it was specializing in creating new companies and incentives to make sure customers would create accounts on their platform, which it does not require to supply a “frictionless” expertise.
“We imagine the advantages of deeper relationships with our customers will permit us to assist them higher navigate their healthcare journey with much more compelling GoodRx worth proposition and consumer expertise,” cofounder and co-CEO Trevor Bezdek stated.
“We additionally imagine that permitting customers to supply us extra data will improve the LTV [lifetime value] of every consumer in prescription transactions and different areas of the enterprise over time as we leverage it to create new instruments and merchandise for our customers in quarters and years to come back.”
GoodRx’s announcement marks the newest in a line of digital well being and well being tech firms which have laid off staff this summer season. Insider not too long ago reported that telehealth companies vendor Wheel lower 17% of its workforce in mid-August.
AI-backed genomic and medical knowledge firm Sema4 introduced it had laid off round 250 staff, about 13% of its workforce, final month. Its founder Eric Schadt additionally stepped down from his roles on the firm. Meditation app Calm additionally not too long ago let go of 20% of its staffers.