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Q3 Earnings Show Digital Healthcare Market Expanding

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class="author-name vcard fn small muted text-uppercase fw-bold" itemprop="author"> <a href="https://www.pymnts.com/author/pymnts/" title="Posts by PYMNTS" rel="author">PYMNTS</a> </span> <span class="small muted d-none d-md-inline">&nbsp;|&nbsp;</span> <span class="small muted text-uppercase d-block d-md-inline">November 14, 2024</span> </div> <div class="col-6 text-end my-auto"> <!-- <span class="d-none d-sm-inline">Share:</span> --> <a href="https://www.facebook.com/sharer.php?u=https://www.pymnts.com/healthcare/2024/goodrx-focuses-on-affordability-while-oscar-health-expands-market-amid-digital-growth/&amp;t=Q3+Earnings+Show+Digital+Healthcare+Market+Expanding" title="Share on Facebook"><i class="bi bi-facebook me-1 text-dark"></i></a><a href="https://twitter.com/share?text=Q3+Earnings+Show+Digital+Healthcare+Market+Expanding -&amp;url=https://www.pymnts.com/healthcare/2024/goodrx-focuses-on-affordability-while-oscar-health-expands-market-amid-digital-growth/" title="Tweet This 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Check it out: https://www.pymnts.com/healthcare/2024/goodrx-focuses-on-affordability-while-oscar-health-expands-market-amid-digital-growth/"><i class="bi bi-envelope-fill ms-1 me-0 ms-1 me-md-1 text-dark"></i></a> <span class="d-none d-md-inline">&nbsp;|&nbsp;</span> <span class="d-block d-md-inline"> <button class="d-none d-lg-inline-block noHover audioPlay border-0 px-0 article-play-button fw-normal py-1 my-0" type="button" value="Play"> <i class="bi bi-play-circle-fill mx-1 text-dark"></i></button> <button class="d-lg-none noHover audioPlay border-0 px-0 article-play-button fw-normal py-1 my-0" type="button" value="Play"><span class="listenToArticle small text-uppercase"></span><i class="bi bi-play-circle-fill text-dark mx-1"></i></button> <button class="noHover audioPause border-0 px-0 article-pause-button py-1 my-0"><i class="bi bi-pause-circle-fill text-dark mx-0"></i></button> </span> </div></div> </div> </div> <div id="post-feat-img" class="left relative mb-3"> <img class="py-desktop w-100 h-auto pymnts-featured-sm-image " width="1000" height="600" alt="" src="https://www.pymnts.com/wp-content/uploads/2024/11/GoodRx-earnings.jpg?w=768" /> </div> <div class="post-feat-text"> </div> <!--post-feat-img--> <div id="pymnts-content2292597" class="single lh-article mt-1 lnk-article"> <p><span data-preserver-spaces="true">As digital tools and technology become an integral part of healthcare, two key players —</span> <a class="editor-rtfLink" href="https://www.goodrx.com/" target="_blank" rel="noopener"><span data-preserver-spaces="true">GoodRx</span></a> <span data-preserver-spaces="true">and </span><a class="editor-rtfLink" href="https://www.hioscar.com/" target="_blank" rel="noopener"><span data-preserver-spaces="true">Oscar Health</span></a> <span data-preserver-spaces="true">— </span><span data-preserver-spaces="true">are</span><span data-preserver-spaces="true"> making strides in the industry.</span><span data-preserver-spaces="true"> Both companies have demonstrated solid financial performance while focusing on enhancing </span><a class="editor-rtfLink" href="https://www.pymnts.com/trends/digital-engagement/" target="_blank" rel="noopener"><span data-preserver-spaces="true">digital engagement</span></a><span data-preserver-spaces="true"> and improving accessibility to healthcare services. Despite facing challenges, each is carving its niche by prioritizing consumer-centric innovations to assist patient interactions with their healthcare systems.</span></p> <h2>GoodRx by the Numbers</h2> <p><a class="editor-rtfLink" href="https://investors.goodrx.com/static-files/62fce071-d5b5-488f-9de8-4358c2519149" target="_blank" rel="noopener"><span data-preserver-spaces="true">Third-quarter financial results</span></a><span data-preserver-spaces="true"> for GoodRx saw an 8% increase in revenue, to $195.3 million, driven by a 4% rise in prescription transactions revenue and sparked by a 7% increase in monthly active consumers. Subscription revenue declined 8%, to $21.3 million, due to the sunset of the </span><a class="editor-rtfLink" href="https://www.goodrx.com/corporate/business/kroger-rx-savings-club-powered-by-goodrx" target="_blank" rel="noopener"><span data-preserver-spaces="true">Kroger Savings Club partnership</span></a><span data-preserver-spaces="true"> formed in 2018. Kroger Savings Club contributed $2.1 million of subscription revenue in the third quarter </span><span data-preserver-spaces="true">2023</span><span data-preserver-spaces="true"> and zero for this year’s </span><span data-preserver-spaces="true">third quarter</span><span data-preserver-spaces="true">.</span></p> <p><span data-preserver-spaces="true">Pharma manufacturer solutions revenue </span><span data-preserver-spaces="true">grew</span> <span data-preserver-spaces="true">77%,</span><span data-preserver-spaces="true"> to $28.1 million</span><span data-preserver-spaces="true">, </span><span data-preserver-spaces="true">due to the previous year’s restructuring and strong organic growth, including gains from point-of-sale discount programs.</span><span data-preserver-spaces="true"> The company posted net income of $4 million, reversing a loss of $38.5 million last year.</span></p> <p><span data-preserver-spaces="true">“In a world where there is increasing attention on medicine affordability and access, we believe the strategic high ground belongs to brands and companies that benefit patients and remove friction from a complicated healthcare ecosystem,” interim CEO </span><a class="editor-rtfLink" href="https://www.linkedin.com/in/wagns" target="_blank" rel="noopener"><span data-preserver-spaces="true">Scott Wagner</span></a><span data-preserver-spaces="true"> </span><span data-preserver-spaces="true">said</span><span data-preserver-spaces="true">. </span></p> <p><span data-preserver-spaces="true">“At GoodRx, that’s our North Star, and we believe it’s enabled us to gain share in our category and strengthen our value proposition throughout 2024. We continue to build momentum on our programs with brand manufacturers and anticipate about 20% year-over-year top-line growth in our pharma manufacturer solutions offering for Q4 2024, and 20%-plus for </span><span data-preserver-spaces="true">full</span><span data-preserver-spaces="true"> year 2025. And while the </span><a class="editor-rtfLink" href="https://www.pymnts.com/news/retail/2024/can-retail-pharmacies-survive-the-digital-transformation-of-healthcare/" target="_blank" rel="noopener"><span data-preserver-spaces="true">retail pharmacy environment is experiencing short-term choppiness</span></a><span data-preserver-spaces="true">, </span><span data-preserver-spaces="true">we believe</span><span data-preserver-spaces="true"> we continue to provide invaluable support to our partners by driving traffic and helping them meet their merchandising goals.”</span></p> <p><span data-preserver-spaces="true">Wagner </span><a class="editor-rtfLink" href="https://www.msn.com/en-us/money/topstocks/goodrx-gdrx-q3-2024-earnings-call-transcript/ar-AA1tItFf?ocid=BingNewsSerp" target="_blank" rel="noopener"><span data-preserver-spaces="true">underscored</span></a><span data-preserver-spaces="true"> the company’s commitment to improving affordability and access in a challenging healthcare environment. The digital healthcare platform continues to expand its offerings, particularly through partnerships with pharmaceutical manufacturers and point-of-sale cash discount programs, which are gaining traction. Despite facing challenges in the retail pharmacy sector, including </span><a class="editor-rtfLink" href="https://www.pymnts.com/news/retail/2024/can-retail-pharmacies-survive-the-digital-transformation-of-healthcare/" target="_blank" rel="noopener"><span data-preserver-spaces="true">store closures by major chains like CVS, Walgreens, and Rite Aid</span></a><span data-preserver-spaces="true">, Wagner is optimistic about its future. </span></p> <p><span data-preserver-spaces="true">“We’re seeing strong momentum around our point-of-sale cash programs and believe the impact of these programs will only get bigger in the future,” Wagner </span><span data-preserver-spaces="true">added</span><span data-preserver-spaces="true">. </span></p> <p><span data-preserver-spaces="true">“Our offering to brands </span><span data-preserver-spaces="true">are</span><span data-preserver-spaces="true"> now threefold. First, we help brands surface their co-pay cards and patient assistance programs to </span><span data-preserver-spaces="true">high intent</span><span data-preserver-spaces="true"> patients. Second, we create clear and affordable cash prices for brand medication that often isn’t covered by insurance. And third, we now offer eCommerce capabilities that allow brands to integrate their direct-to-consumer experiences into our platform.”</span></p> <h2>Oscar Health: Expanding Market Reach</h2> <p><span data-preserver-spaces="true">Oscar Health’s </span><a class="editor-rtfLink" href="https://ir.hioscar.com/news-events-presentations/news-press-releases/news-details/2024/Oscar-Health-Announces-Results-for-Third-Quarter-2024/default.aspx" target="_blank" rel="noopener"><span data-preserver-spaces="true">third-quarter results</span></a><span data-preserver-spaces="true"> were mixed, as revenue rose 68% to $2.4 billion, and the company’s total membership also grew 68%, to 1.65 million, driven by demand for its individual and small group health plans. </span></p> <p><span data-preserver-spaces="true">While the company’s medical loss ratio (MLR) </span><span data-preserver-spaces="true">rose </span><span data-preserver-spaces="true">to 84.6%,</span><span data-preserver-spaces="true"> due to higher medical costs tied to </span><a class="editor-rtfLink" href="https://www.healthcare.gov/glossary/special-enrollment-period/" target="_blank" rel="noopener"><span data-preserver-spaces="true">Special Enrollment Period</span></a><span data-preserver-spaces="true"> (SEP) memberships and an uptick in COVID-related claims, company officials remain confident in its growth trajectory as Oscar Health’s digital-first model continues to drive membership gains</span><span data-preserver-spaces="true">, CEO </span><a class="editor-rtfLink" href="https://www.linkedin.com/in/markbertolini/" target="_blank" rel="noopener"><span data-preserver-spaces="true">Mark Bertolini</span></a> <a class="editor-rtfLink" href="https://events.q4inc.com/attendee/297522744" target="_blank" rel="noopener"><span data-preserver-spaces="true">noted</span></a><span data-preserver-spaces="true">.</span></p> <p><span data-preserver-spaces="true">Oscar Health is </span><span data-preserver-spaces="true">on track</span><span data-preserver-spaces="true"> to achieve net income profitability in 2024 and has expanded its addressable market to about 11 million lives, up by 700,000 year over year, he added. Company officials, however, </span><span data-preserver-spaces="true">expect continued pressure</span><span data-preserver-spaces="true"> on its MLR due to SEP membership dynamics, while dealing with competitive pricing pressures in the market.</span></p> <p><span data-preserver-spaces="true">“We’ve had more SEP additions than anticipated, which increased our top-line revenue guidance,” Bertolini </span><span data-preserver-spaces="true">explained</span><span data-preserver-spaces="true">. “The performance of SEP members has been on track with expectations, and utilization has been slightly favorable. The story is more about having more members than expected, </span><span data-preserver-spaces="true">which is</span><span data-preserver-spaces="true"> reflected in both top-line and bottom-line performance. </span></p> <p><span data-preserver-spaces="true">“Oscar reported positive third-quarter results with strong revenue growth and improved financial performance. Our technology continues to enhance our growth and positions us </span><span data-preserver-spaces="true">to efficiently scale the business</span><span data-preserver-spaces="true">.”</span></p> <div class="pymnt-299da9615c6a60ccf56d9fcd5e11ddd5 pymnt-bottom-of-article" id="pymnt-299da9615c6a60ccf56d9fcd5e11ddd5"></div> <div id="bottom-ad"> <div data-pymnt-trackid="2439346" data-pymnt-trackbid="1" class="pymnt-target" id="pymnt-298145732"><!-- RD & MC Bottom Article Zone (Auto Refresh) [js] --> <script type="text/javascript"> var rnd = window.rnd || Math.floor(Math.random()*10e6); var pid848355 = window.pid848355 || rnd; var plc848355 = window.plc848355 || 0; var abkw = window.abkw || ''; var absrc = 'https://servedbyadbutler.com/adserve/;ID=188401;size=0x0;setID=848355;type=js;sw='+screen.width+';sh='+screen.height+';spr='+window.devicePixelRatio+';kw='+abkw+';pid='+pid848355+';place='+(plc848355++)+';rnd='+rnd+'';var _absrc = absrc.split("type=js"); absrc = _absrc[0] + 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console.log('triggerPageView !info', url, pathTitles) return; } lastUrlViewed = url; tracker.set('page', url); tracker.send('pageview', { 'title': info.title, 'url': url }); gtag("event", "pymnts_device_visit", { path: url }); if (!deviceIsBlockingAnalytics) doNotProxyReport(url); //reportPageToGoogle(url, info.title); console.log('fTest url title', url, info.title); //sendPageView(url, info.title); //console.log('triggerPageView registered url', info.title, url); } let firstTrigger = true; function triggerPageView (url, scrollingUp = false) { // if (scrollingUp) { // console.log('scrollingUp', url, window.location); // const request = { // url: `https://${window.location.hostname}/infiniteScroll.php`, // method: 'post', // data: { // path: url // } // } // axios(request) // .then(response => {console.log('scrollingUp', response.data)}) // .catch(error => console.error(error)); // } console.log('triggerPageView', url); if (!googleTracker) { let count = 0; let intervalId = setInterval(() => { ++count; if (googleTracker || count > 5) { clearInterval(intervalId); console.log('tracker', googleTracker); registerPageView(url, googleTracker); return; } }, 500); } else { console.log('tracker', googleTracker); registerPageView(url, googleTracker); } } let articleIsBeingSpoken = false; function setupArticleListening(el) { let playButton = el.querySelector('.bi-play-circle-fill'); let pauseButton = el.querySelector('.bi-pause-circle-fill'); let text = el.querySelector('.lh-article').innerText; let headline = el.querySelector('h1').innerText; if (headline) text = headline + '. ' + text; if (playButton) { playButton.addEventListener('click', () => { if (!articleIsBeingSpoken || playButtonPressed !== playButton) { responsiveVoice.speak(text, "US English Male"); articleIsBeingSpoken = true; //playButtonPressed = playButton; } else { responsiveVoice.resume(); } }) } if (pauseButton) { pauseButton.addEventListener('click', () => { responsiveVoice.pause(); }) } } let subscribeIsShown = false; function setVideoSubscribeLocation() { const video = I('articleVideo'); if (!video) return; const subscribe = I('videoSubscribe'); if (!subscribe) return; const videoRect = video.getBoundingClientRect(); const subscribeRect = subscribe.getBoundingClientRect(); const xDiff = videoRect.width - subscribeRect.width; const yDiff = videoRect.height - subscribeRect.height; const xOffset = (xDiff/2) + 'px'; const yOffset = (yDiff*(1/4)) + 'px'; subscribe.style.left = xOffset; subscribe.style.top = yOffset; } function showSubscribe() { let subscribe = I('videoSubscribe'); if (!subscribeIsShown) { subscribe.classList.remove('d-none'); setVideoSubscribeLocation(); subscribe.style.opacity = 1; subscribeIsShown = true; } } function hideSubscribe() { let subscribe = I('videoSubscribe'); if(subscribeIsShown) { subscribe.classList.add('d-none'); subscribe.style.opacity = 0; subscribeIsShown = false; } } function handleTimeUpdating(e) { const video = I('articleVideo'); const ending = video.duration - 5.5; if (ending < 0) ending = 0; if (video.currentTime >= ending) { showSubscribe(); } else { hideSubscribe(); } } function handleVideoPlaying(e, video) { console.log(video); console.log ('duration', video.duration); const ending = video.duration - 5; if (ending < 0) ending = 0; video.addEventListener('timeupdate', handleTimeUpdating); } function setupVideoCallToAction () { const video = I('articleVideo'); if (!video) return; video.addEventListener('play', (e) => handleVideoPlaying(e, video)); } let userIsAuthenticated = false; function isAuthenticatedUser () { return localStorage.getItem('pymnts.authorized') ? true : false; } function processChart (id) { var chartDom = document.getElementById(id); var myChart = echarts.init(chartDom); var option; option = { grid: { containLabel: true }, title: [ { text: "Types of digital payment methods\nused in the last month", textStyle: { color: 'black', lineHeight: 22 }, x: 'center' } ], tooltip: { trigger: 'item' }, yAxis: { type: 'category', data: [ 'Another wallet', 'Other', 'Voice payments', 'QR payments', 'Face payments', 'Samsung Pay', 'Cryptocurrency', 'Walmart Pay', 'Store Card', 'EBT', 'BNPL', 'Prepaid card', 'Peer to Peer', 'Google Pay', 'Apple Pay', 'Bank transfer', 'PayPal', 'Credit card', 'Debit card' ], axisLabel: { color: 'black' }, axisTick: { show: false } }, xAxis: { type: 'value', axisLabel: { formatter: '{value}%', color: 'black' } }, series: [ { data: [ 0.9, 1.4, 3.5, 4.5, 4.7, 6.3, 7.9, 8.2, 9.1, 10.8, 11.0, 14.7, 15.4, 15.5, 20.8, 34.9, 53.2, 57.4, 64.6 ], type: 'bar', showBackground: true, itemStyle: { color: (params) => { return params.name === 'EBT' ? 'rgba(0,89,227, .4)' : 'rgba(0,89,227, .8)'; } }, backgroundStyle: { color: 'rgba(180, 180, 180, 0.2)' }, label: { show: true, position: 'right', // inside formatter: (value) => `${value.data}%` }, axisLabel: { formatter: '{value} %' } } ] }; option && myChart.setOption(option); } function insertPymntsCharts() { console.log('insertPymntsCharts'); const charts = A('.pymnts-chart'); console.log('insertPymntsCharts charts', charts) if (!charts.length) return; for (let i = 0; i < charts.length; ++i) { const chartId = charts[i].getAttribute('id'); console.log('chartId', chartId); processChart(chartId); } } async function pageIsLoaded() { console.log('pageIsLoaded', window.location.pathname); // console.log('Links', CurLinkIndex, Links); insertPymntsCharts(); // console.log('cookies', cookies); //if (window.location.search === '?emailSent=true') alert ("Verification email has been sent.\nPlease check your inbox.") setupArticleListening(document); setupVideoCallToAction(); sidebarWrap = I('sidebar-wrap'); pathTitles.push({ path: location.pathname, title: Q('h1').innerText }); triggerPageView(curPath); loadNextArticle(true); } function handleScrolling() { //console.log('handleScrolling', curArticle, curPath); let curArticleBox = null; let curArticleId = null; if (curArticle) { curArticleId = curArticle.getAttribute('id'); //console.log('curArticleId', curArticleId); curArticleBox = curArticle.getBoundingClientRect(); //console.log('curArticle box', window.innerHeight, curArticleBox) if (curArticleBox.y <= window.innerHeight) { console.group(); console.log('handleScrolling have curArticle'); document.title = curTitle; const state = { 'page_id': 1, 'user_id': 5 } history.replaceState(state, '', curPath); const urlInfo = curArticle.getAttribute('urlinfo'); console.log('curArticle urlInfo', urlInfo); let test = partialsAlreadyLoaded.indexOf(urlInfo); console.log('test', test, partialsAlreadyLoaded.length); ++test; if (test && test === partialsAlreadyLoaded.length) { curArticle = null; loadNextArticle(); } else { const urlInfo = I(curArticleId).getAttribute('urlinfo'); const url = new URL(urlInfo); triggerPageView(url.pathname); curArticle = I(`article-number-${test+1}`); curPath = curArticle.getAttribute('urlinfo'); console.log('curPath', curPath); } showingArticle = curArticleId; console.log('showingArticle', showingArticle); console.log('curArticle', curArticle); console.groupEnd(); } } // handle scrolling up if (showingArticle !== 'orig') { const showingArticleBox = I(showingArticle).getBoundingClientRect(); if (showingArticleBox.y > window.innerHeight) { let parts = showingArticle.split('-'); let num = Number(parts[2]); if (num === 1) { showingArticle = 'orig'; console.log('showingArticle', showingArticle); const url = new URL(Links.current); triggerPageView(url.pathname, true); const state = { 'page_id': 1, 'user_id': 5 } history.replaceState(state, '', Links.current); curArticle = I('article-number-1'); console.log('curArticle', curArticle); curPath = curArticle.getAttribute('urlinfo'); console.log('curPath', curPath); } else { showingArticle = `article-number-${num - 1}`; console.log('showingArticle', showingArticle); curArticle = I(`article-number-${num}`); console.log('curArticle', curArticle); curPath = curArticle.getAttribute('urlinfo'); console.log('curPath', curPath); const urlInfo = I(showingArticle).getAttribute('urlinfo'); console.log('urlinfo', urlInfo); const url = new URL(urlInfo); triggerPageView(url.pathname, true); const state = { 'page_id': 1, 'user_id': 5 } history.replaceState(state, '', urlInfo); } } } let singleContainer = I('singleContainer').getBoundingClientRect(); if (sidebarWrap) { sidebarRect = sidebarWrap.getBoundingClientRect(); sidebarTop = sidebarRect.y; sidebarBottom = sidebarRect.y + sidebarRect.height; if (sidebarFreezeTrigger && window.scrollY < sidebarFreezeTrigger) { sidebarFreezeTrigger = null; sidebarWrap.style.position = 'static'; sidebarWrap.style.bottom = 'auto'; } else if (sidebarBottom <= window.innerHeight) { if(sidebarWrap.style.position !== 'fixed') { sidebarWrap.style.position = 'fixed'; sidebarWrap.style.bottom = '0px'; sidebarWrap.style.width = `${(singleContainer.width * .25) - 24}px`; sidebarFreezeTrigger = window.scrollY; } } } } function handleVideoResizing() { console.log('videoResize'); if (subscribeIsShown) setVideoSubscribeLocation(); } document.addEventListener('fullscreenchange', handleVideoResizing, false); document.addEventListener('mozfullscreenchange', handleVideoResizing, false); document.addEventListener('MSFullscreenChange', handleVideoResizing, false); document.addEventListener('webkitfullscreenchange', handleVideoResizing, false); function pageIsResized() { if (subscribeIsShown) setVideoSubscribeLocation(); let sidebarContainer = I('sidebar-container'); if(!sidebarContainer) return; let size = 'xxl'; if(window.innerWidth < 576) size = 'xs'; else if(window.innerWidth < 768) size = 'md'; else if(window.innerWidth < 992) size = 'lg'; else if(window.innerWidth < 1200) size = 'xl'; else size = 'xxl'; console.log(size); switch(size) { case 'xs': case 'md': sidebarContainer.classList.remove('d-lg-block'); 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