Hi Richard - Thank you for another nice analysis! I wonder what is your take on the growth of GDRX's MAU, which is currently at 6 million and growing at 20~30% YoY for past quarters. Please correct me if I am wrong but this appears rather slow given the low penetration rate of a purported large TAM (~5%, with 30 million uninsured and 100 million on HDHP) and some heavy spendings on S&M (consistently ~50% of revenue). Many thanks in advance!
Hey man! Enjoyed the latest on $GDRX. I just finished listening to the last Q call. Certainly feels like mgmt doesn't wanna talk much about their tele health service. I keep seeing ZocDoc ads running on repeat on TV when I'm at the gym. Can't understand why GDRX is not running these... linear TV viewers are surely their target demo. Are they hesitant to dive in here? Or is it concerns about diversifying into a much lower margin biz and bringing their overall margins down?
Hi Richard, appreciate the great analysis! I only have a rudimentary understanding of Goodrx and I'm also not from the U.S so forgive me if this question seems flawed or silly. If Goodrx already beats 50% of the average insurance copay(and this number is growing), would it be probable that some consumers drop their health insurance all together and just use Goodrx in the near future? As you are unable to use both Goodrx and insurance on a prescription, there would be no point for consumers to pay for healthcare insurance if Goodrx offers a cheaper alternative. If this were to happen, wouldn't there be more uninsured patients? And wouldn't this strengthen the partnership between Goodrx and the PBMs? I used to worried about some government policy in the future reducing the uninsured population to 0% because if that were to happen the PBMs would lose incentive to work with Goodrx. But if my logic is sound, wouldn't there always be an population of uninsured people as goodrx is cheaper than the copay insurance? Would love to hear your thoughts. Thanks!
Hi Richard - Thank you for another nice analysis! I wonder what is your take on the growth of GDRX's MAU, which is currently at 6 million and growing at 20~30% YoY for past quarters. Please correct me if I am wrong but this appears rather slow given the low penetration rate of a purported large TAM (~5%, with 30 million uninsured and 100 million on HDHP) and some heavy spendings on S&M (consistently ~50% of revenue). Many thanks in advance!
Hey man! Enjoyed the latest on $GDRX. I just finished listening to the last Q call. Certainly feels like mgmt doesn't wanna talk much about their tele health service. I keep seeing ZocDoc ads running on repeat on TV when I'm at the gym. Can't understand why GDRX is not running these... linear TV viewers are surely their target demo. Are they hesitant to dive in here? Or is it concerns about diversifying into a much lower margin biz and bringing their overall margins down?
Hi Richard, appreciate the great analysis! I only have a rudimentary understanding of Goodrx and I'm also not from the U.S so forgive me if this question seems flawed or silly. If Goodrx already beats 50% of the average insurance copay(and this number is growing), would it be probable that some consumers drop their health insurance all together and just use Goodrx in the near future? As you are unable to use both Goodrx and insurance on a prescription, there would be no point for consumers to pay for healthcare insurance if Goodrx offers a cheaper alternative. If this were to happen, wouldn't there be more uninsured patients? And wouldn't this strengthen the partnership between Goodrx and the PBMs? I used to worried about some government policy in the future reducing the uninsured population to 0% because if that were to happen the PBMs would lose incentive to work with Goodrx. But if my logic is sound, wouldn't there always be an population of uninsured people as goodrx is cheaper than the copay insurance? Would love to hear your thoughts. Thanks!
I heard about you from Saga Investors letters, obvious you’re talent ! What precent is Redfin from Saga portfolio:) ?
Bravo man! Amazing analysis! Can you make valuation? What price is appropriate to enter? It seems expensive! IMO