GoodRx, an organization finest identified for its prescription worth transparency instruments, will lay off roughly 140 staff, making up about 16% of its workforce.
Based on a submitting with the Securities and Trade Fee, the discount will primarily have an effect on its technology-focused and advertising and marketing segments.
“The corporate is targeted 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 features and eliminating or lowering funding in areas of decrease focus.”
THE LARGER TREND
GoodRx posted a $1.4 million internet loss throughout the second quarter, in contrast with $31.1 million in earnings throughout the prior-year quarter. It reported income of $191.8 million, a 9% enhance from $176.6 million within the second quarter final 12 months.
The corporate additionally mentioned 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 mentioned it was specializing in growing new companies and incentives to make sure customers would create accounts on their platform, which it would not require to supply a “frictionless” expertise.
“We consider the advantages of deeper relationships with our customers will enable us to assist them higher navigate their healthcare journey with much more compelling GoodRx worth proposition and person expertise,” cofounder and co-CEO Trevor Bezdek mentioned.
“We additionally consider that permitting customers to supply us extra info will enhance the LTV [lifetime value] of every person 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 return.”
GoodRx’s announcement marks the newest in a line of digital well being and well being tech firms which have laid off employees this summer season. Insider not too long ago reported that telehealth companies vendor Wheel reduce 17% of its workforce in mid-August.
AI-backed genomic and medical information firm Sema4 introduced it had laid off round 250 employees, 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.