Latest news with #GoodRxHoldings
Yahoo
3 days ago
- Business
- Yahoo
Jim Cramer Holds Back on GoodRx (GDRX)
We recently published a list of . In this article, we are going to take a look at where GoodRx Holdings, Inc. (NASDAQ:GDRX) stands against other stocks that Jim Cramer discusses. Noting that Cramer has not said anything about GoodRx Holdings, Inc. (NASDAQ:GDRX) in a long time, a caller asked about the company. In response, Cramer said: 'Sometimes, like my Nana Mary said, if you don't have anything good to say about someone, don't say it at all.' A pharmacist assisting elderly customers with their GoodRX codes at a local pharmacy. GoodRx (NASDAQ:GDRX) provides tools that help people find lower prices on prescription drugs, along with subscriptions, telehealth services, and healthcare solutions for both humans and pets. In 2022, when a caller asked about the company during a lightning round, Cramer said, 'These are all no-go. They're in a no-fly zone. You've just got to look at it like that.' For context, GDRX stock has gone down more than 82% since the comment was aired. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
5 days ago
- Business
- Yahoo
Jim Cramer Holds Back on GoodRx (GDRX)
We recently published a list of . In this article, we are going to take a look at where GoodRx Holdings, Inc. (NASDAQ:GDRX) stands against other stocks that Jim Cramer discusses. Noting that Cramer has not said anything about GoodRx Holdings, Inc. (NASDAQ:GDRX) in a long time, a caller asked about the company. In response, Cramer said: 'Sometimes, like my Nana Mary said, if you don't have anything good to say about someone, don't say it at all.' A pharmacist assisting elderly customers with their GoodRX codes at a local pharmacy. GoodRx (NASDAQ:GDRX) provides tools that help people find lower prices on prescription drugs, along with subscriptions, telehealth services, and healthcare solutions for both humans and pets. In 2022, when a caller asked about the company during a lightning round, Cramer said, 'These are all no-go. They're in a no-fly zone. You've just got to look at it like that.' For context, GDRX stock has gone down more than 82% since the comment was aired. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-05-2025
- Business
- Yahoo
Is GoodRx Holdings, Inc. (NASDAQ:GDRX) Potentially Undervalued?
GoodRx Holdings, Inc. (NASDAQ:GDRX), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$5.13 and falling to the lows of US$3.74. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether GoodRx Holdings' current trading price of US$3.81 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at GoodRx Holdings's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We've used the price-to-earnings ratio in this instance because there's not enough visibility to forecast its cash flows. The stock's ratio of 51.37x is currently trading slightly below its industry peers' ratio of 54.81x, which means if you buy GoodRx Holdings today, you'd be paying a decent price for it. And if you believe GoodRx Holdings should be trading in this range, then there isn't much room for the share price to grow beyond the levels of other industry peers over the long-term. Although, there may be an opportunity to buy in the future. This is because GoodRx Holdings's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. View our latest analysis for GoodRx Holdings Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for GoodRx Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? GDRX's optimistic future growth appears to have been factored into the current share price, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at GDRX? Will you have enough confidence to invest in the company should the price drop below the industry PE ratio? Are you a potential investor? If you've been keeping tabs on GDRX, now may not be the most advantageous time to buy, given it is trading around industry price multiples. However, the positive outlook is encouraging for GDRX, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So while earnings quality is important, it's equally important to consider the risks facing GoodRx Holdings at this point in time. For example - GoodRx Holdings has 1 warning sign we think you should be aware of. If you are no longer interested in GoodRx Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Why GoodRx Holdings Stock Triumphed on Thursday
The healthcare services specialist unveiled its first set of quarterly results for this year. It beat on both the top and bottom lines, and slightly increased its guidance for a profitability metric. 10 stocks we like better than GoodRx › Niche healthcare company GoodRx Holdings (NASDAQ: GDRX) was looking spry and healthy on the stock market Thursday. Investors were happy to take a few doses of it following the company's release of its latest set of quarterly earnings, and they cranked the price of the shares nearly 12% higher. With that, it trounced the S&P 500 index; this rose marginally on the day by 0.6%. GoodRx, which specializes in prescription and telehealth services, saw its revenue rise by almost 3% year-over-year to just under $203 million. Non-GAAP (adjusted) net income also advanced, increasing by 5% to hit $34.4 million, or $0.09. Both results were broadly in line with analyst estimates. In terms of revenue composition, GoodRx's main money-earner -- prescription transactions -- saw a 2% gain to nearly $149 million. Management attributed this to better per-unit economics and a favorable sales mix. Pharmaceutical manufacturer solutions revenue saw a meaty 17% boost, but this business is relatively small; it brought in just under $29 million for the overall top line. On the downside, subscription revenue fell by 7% year over year to $21 million. This was because of a decline in subscription plans, which in turn was attributable to the ending of GoodRx's partnership with supermarket chain operator Kroger. As for guidance, GoodRx left one item unchanged and raised another for its anticipated full-year 2025 performance. It's sticking to its revenue forecast of $810 million to $840 million for the year, which would represent growth of at least 2% over the 2024 tally. Management slightly increased the projection for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $273 million to $287 million. The 2024 result was a bit over $260 million. It feels realistic to me that GoodRx is expecting continued growth; it has appealing diversification in its revenue streams and its core activity, prescriptions, should only become more compelling with the continued aging of the American population. I can understand why investors are bullish on this company. Before you buy stock in GoodRx, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GoodRx wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $717,471!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends GoodRx and Kroger. The Motley Fool has a disclosure policy. Why GoodRx Holdings Stock Triumphed on Thursday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
07-05-2025
- Business
- Business Wire
GoodRx Reports First Quarter 2025 Results
SANTA MONICA, Calif.--(BUSINESS WIRE)--GoodRx Holdings, Inc. (Nasdaq: GDRX) ("we," "us," "our," 'GoodRx,' or the 'Company'), the leading platform for medication savings in the U.S., has released its financial results for the first quarter of 2025. First Quarter 2025 Highlights 'Since stepping into this role, I have dedicated my time strengthening our leadership team, gaining a deeper understanding of our business, meeting with key partners, understanding the macroeconomic environment, and identifying key capabilities and growth opportunities,' said Wendy Barnes, Chief Executive Officer and President of GoodRx. 'I can confidently say that we are in a very strong position to deliver meaningful value across the pharmacy ecosystem. Furthermore, we are focused on high-impact initiatives that we believe will drive our business forward in compelling ways.' 1 Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Net Income Margin are non-GAAP financial measures and are presented for supplemental informational purposes only. Adjusted EBITDA Margin and Adjusted Net Income Margin are defined as Adjusted EBITDA and Adjusted Net Income, respectively, divided by Adjusted Revenue. Refer to the Non-GAAP Financial Measures section below for definitions, additional information, and reconciliations to the most directly comparable GAAP measures. 2 Sum of Monthly Active Consumers (MACs) for Q1'25 and subscribers to our subscription plans as of March 31, 2025. Refer to Key Operating Metrics below for definitions of Monthly Active Consumers and subscription plans. Expand First Quarter 2025 Financial Overview (all comparisons are made to the same period of the prior year unless otherwise noted): Revenue increased 3% to $203.0 million compared to $197.9 million. Prescription transactions revenue increased 2% to $148.9 million compared to $145.4 million, primarily driven by improved unit economics related to contracting with our customers and partners and sales mix, partially offset by a 4% decrease in Monthly Active Consumers, primarily due to the broader changes in the retail pharmacy landscape. Subscription revenue decreased 7% to $21.0 million compared to $22.6 million, primarily driven by a decrease in the number of subscription plans principally due to the sunset of our partnership subscription program, Kroger Savings Club. Pharma manufacturer solutions revenue increased 17% to $28.6 million compared to $24.5 million, driven by organic growth as we continued to expand our market penetration with pharma manufacturers and other customers, including ongoing growth in our point of sale discount programs. Net income was $11.1 million compared to a net loss of $1.0 million. Net income margin was 5.4% compared to a net loss margin of 0.5%. Adjusted Net Income 1 was $34.4 million compared to $32.6 million. Adjusted EBITDA 1 was $69.8 million compared to $62.8 million. Adjusted EBITDA Margin 1 was 34.4% compared to 31.7%. Cash Flow and Capital Allocation Net cash provided by operating activities in the first quarter was $9.4 million compared to $42.6 million in the comparable period last year driven by changes in operating assets and liabilities, partially offset by an increase in net income after adjusting for non-cash items. Changes in operating assets and liabilities were principally driven by the timing of payments of prepaid services, accounts payable and accrued expenses, income tax payments and refunds, as well as collections of accounts receivable. As of March 31, 2025, we had cash and cash equivalents of $301.0 million and total outstanding debt of $498.8 million. We are focused on a disciplined approach to capital allocation, centered on furthering our mission and creating shareholder value. Our capital allocation priorities are investing for profitable growth, paying down debt, buying back shares, and M&A that aligns with our strategic priorities. These capital allocation priorities support our long-term growth strategy while also providing flexibility to navigate near-term challenges. Share Repurchases During the first quarter of 2025, we repurchased 23.3 million shares of Class A common stock for an aggregate of $100.9 million. As of March 31, 2025, we had $189.4 million of unused authorized share repurchase capacity under our $450.0 million share repurchase program, which does not have an expiration date. Guidance For the full year 2025, management is anticipating the following: 'For the full year 2025, we continue to believe that revenue will be in the range of $810 to $840 million, representing 2% to 6% growth compared to 2024,' said Chris McGinnis, Chief Financial Officer and Treasurer. 'There are a number of factors that influence revenue, including macro conditions such as consumer confidence and spending trends, tariffs and other policies related to drug pricing, economic climate, and our ongoing business development efforts driving our strategic initiatives. It's hard to predict the impact that these variables will ultimately have on our full year revenue, but in an effort to be as transparent as possible, at this point in the year we have greater conviction and visibility at the lower half of our range with achievement of strategic initiatives providing opportunities to deliver in the upper half of our range. With respect to our guidance for full year Adjusted EBITDA 3, we are slightly increasing and narrowing the range, now believing it will be between $273 and $287 million, which represents approximately 5% to 10% growth compared to 2024.' 'With the full year guidance as context, for the second quarter, we expect revenue to be up sequentially from the $203 million we reported in the first quarter with an Adjusted EBITDA Margin 3 roughly similar to the first quarter,' concluded McGinnis. 3 Adjusted EBITDA Margin is Adjusted EBITDA divided by Adjusted Revenue. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures and are presented for supplemental informational purposes only. We have not reconciled our Adjusted EBITDA and Adjusted EBITDA Margin guidance to GAAP net income or loss and GAAP net income or loss margin, respectively, because we do not provide guidance for such GAAP measures due to the uncertainty and potential variability of stock-based compensation expense, acquired intangible assets and related amortization and income taxes, which are reconciling items between Adjusted EBITDA and Adjusted EBITDA Margin and their respective most directly comparable GAAP measures. Because such items cannot be provided without unreasonable efforts, we are unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure. However, such items could have a significant impact on our future GAAP net income or loss and GAAP net income or loss margin. Expand Investor Conference Call and Webcast GoodRx management will host a conference call and webcast tomorrow, May 8, 2025, at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time) to discuss the results and the Company's business outlook. To access the conference call, please pre-register using the following link: Registrants will receive a confirmation with dial-in details and a unique passcode required to join. The call will also be webcast live on the Company's investor relations website at where accompanying materials will be posted prior to the conference call. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company's investor relations website at for at least 30 days. About GoodRx GoodRx is the leading platform for medication savings in the U.S., used by nearly 30 million consumers and over one million healthcare professionals annually. Uniquely situated at the center of the healthcare ecosystem, GoodRx connects consumers, healthcare professionals, payers, pharmacy benefit managers, pharmaceutical manufacturers, and retail pharmacies to make saving on medications easier. By reducing friction and inefficiencies, GoodRx helps consumers save time and money when filling prescriptions so they can get the care they deserve. Since 2011, GoodRx has helped Americans save over $85 billion on the cost of their medications. GoodRx periodically posts information that may be important to investors on its investor relations website at We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors and potential investors are encouraged to consult GoodRx's website regularly for important information, in addition to following GoodRx's press releases, filings with the Securities and Exchange Commission and public conference calls and webcasts. The information contained on, or that may be accessed through, GoodRx's website is not incorporated by reference into, and is not a part of, this press release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our future results of operations and financial position, industry and business trends, including uncertainty in the macro environment, the impact on prescription medication price increases on our Monthly Active Consumers, our value proposition, consumer and partner perception and our position in the healthcare ecosystem/industry, our integrated savings programs, our business strategy and our ability to execute on our strategic priorities and value creation, our plans, market opportunity and long-term growth prospects, our capital allocation priorities, our executive officer transitions, our ability to expand our offerings through partnerships with pharmaceutical companies. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, risks related to our limited operating history and early stage of growth; our recent growth rates may not be sustainable or indicative of future growth; our ability to achieve broad market education and change consumer purchasing habits; our general ability to continue to attract, acquire and retain consumers in a cost-effective manner; our significant reliance on our prescription transactions offering and ability to expand our offerings; changes in medication pricing and the significant impact of pricing structures negotiated by industry participants; our general inability to control the categories and types of prescriptions for which we can offer savings or discounted prices; our reliance on a limited number of industry participants, including pharmacy benefit managers, pharmacies, and pharma manufacturers; the competitive nature of industry; risks related to pandemics, epidemics or outbreak of infectious disease; the accuracy of our estimate of our addressable market and other operational metrics; our ability to respond to changes in the market for prescription pricing and to maintain and expand the use of GoodRx codes; our ability to maintain positive perception of our platform or maintain and enhance our brand; risks related to any failure to maintain effective internal control over financial reporting; risks related to use of social media, emails, text messages and other messaging channels as part of our marketing strategy; our dependence on our information technology systems and those of our third-party vendors, and risks related to any failure or significant disruptions thereof; risks related to government regulation of the internet, e-commerce, consumer data and privacy, information technology and cybersecurity; risks related to the use of AI and machine learning in our business; risks related to a decrease in consumer willingness to receive correspondence or any technical, legal or any other restrictions to send such correspondence; risks related to any failure to comply with applicable data protection, privacy and security, advertising and consumer protection laws, regulations, standards, and other requirements; our ability to utilize our net operating loss carryforwards and certain other tax attributes; the risk that we may be unable to realize expected benefits from our restructuring and cost reduction efforts; our ability to attract, develop, motivate and retain well-qualified employees; risks related to our acquisition strategy; risks related to our debt arrangements; interruptions or delays in service on our apps or websites or any undetected errors or design faults; our reliance on third-party platforms to distribute our platform and offerings, including software as-a-service technologies; systems failures or other disruptions in the operations of these parties on which we depend; risks related to climate change; the increasing focus on environmental sustainability and social initiatives; risks related to our intellectual property; risks related to operating in the healthcare industry; risks related to our organizational structure; litigation related risks; our ability to accurately forecast revenue and appropriately plan our expenses in the future; risks related to general economic factors, natural disasters or other unexpected events; risks related to fluctuations in our tax obligations and effective income tax rate which could materially and adversely affect our results of operations; risks related to the healthcare reform legislation and other proposed or future changes impacting the healthcare industry and healthcare spending which may adversely affect our business, financial condition and results of operations; as well as the other important factors discussed in the section entitled 'Risk Factors' of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our Quarterly Report on Form 10-Q for the three months ended March 31, 2025, and in our other filings with the Securities and Exchange Commission. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. Key Operating Metrics Monthly Active Consumers (MACs) refers to the number of unique consumers who have used a GoodRx code to purchase a prescription medication in a given calendar month and have saved money compared to the list price of the medication. A unique consumer who uses a GoodRx code more than once in a calendar month to purchase prescription medications is only counted as one Monthly Active Consumer in that month. A unique consumer who uses a GoodRx code in two or three calendar months within a quarter will be counted as a Monthly Active Consumer in each such month. Monthly Active Consumers do not include subscribers to our subscription offerings, consumers of our pharma manufacturer solutions offering, or consumers who use our telehealth offering. When presented for a period longer than a month, Monthly Active Consumers are averaged over the number of calendar months in such period. Monthly Active Consumers from acquired companies are only included beginning in the first full quarter following the acquisition. Effective January 1, 2025, Monthly Active Consumers from acquired companies are included beginning from the acquisition date. Prior to January 1, 2025, Monthly Active Consumers from acquired companies were only included beginning in the first full quarter following the acquisition. Subscription plans represent the ending subscription plan balance across both of our subscription offerings, GoodRx Gold and Kroger Savings Club, the latter of which sunset in July 2024. Each subscription plan may represent more than one subscriber since family subscription plans may include multiple members. We exited the first quarter of 2025 with over 7 million prescription-related consumers that used GoodRx across our prescription transactions and subscription offerings. Our prescription-related consumers represent the sum of Monthly Active Consumers for the three months ended March 31, 2025 and subscribers to our subscription plans as of March 31, 2025. As of (in thousands) March 31, 2 025 December 31, 2 024 September 30, 2 024 June 30, 2 024 March 31, 2 024 Subscription plans 680 684 701 696 778 Expand GoodRx Holdings, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except par values) March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 300,981 $ 448,346 Accounts receivable, net 160,117 145,934 Prepaid expenses and other current assets 79,110 64,975 Total current assets 540,208 659,255 Property and equipment, net 11,512 12,664 Goodwill 421,719 410,769 Intangible assets, net 68,359 52,102 Capitalized software, net 130,576 124,781 Operating lease right-of-use assets, net 22,898 27,794 Deferred tax assets, net 77,182 77,182 Other assets 22,817 23,520 Total assets $ 1,295,271 $ 1,388,067 Liabilities and stockholders' equity Current liabilities Accounts payable $ 15,258 $ 14,137 Accrued expenses and other current liabilities 77,567 99,130 Current portion of debt 5,000 5,000 Operating lease liabilities, current 5,558 5,636 Total current liabilities 103,383 123,903 Debt, net 485,837 486,711 Operating lease liabilities, net of current portion 44,794 46,040 Other liabilities 6,910 6,755 Total liabilities 640,924 663,409 Stockholders' equity Preferred stock, $0.0001 par value — — Common stock, $0.0001 par value 36 38 Additional paid-in capital 2,084,272 2,165,633 Accumulated deficit (1,429,961 ) (1,441,013 ) Total stockholders' equity 654,347 724,658 Total liabilities and stockholders' equity $ 1,295,271 $ 1,388,067 Expand GoodRx Holdings, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts) Three Months Ended March 31, 2025 2024 Revenue $ 202,970 $ 197,880 Costs and operating expenses: Cost of revenue, exclusive of depreciation and amortization presented separately below 13,364 12,468 Product development and technology 31,142 31,017 Sales and marketing 84,542 89,964 General and administrative 29,630 41,108 Depreciation and amortization 20,912 15,942 Total costs and operating expenses 179,590 190,499 Operating income 23,380 7,381 Other expense, net: Interest income 3,932 7,555 Interest expense (10,644 ) (14,643 ) Total other expense, net (6,712 ) (7,088 ) Income before income taxes 16,668 293 Income tax expense (5,616 ) (1,302 ) Net income (loss) $ 11,052 $ (1,009 ) Earnings (loss) per share: Basic $ 0.03 $ (0.00 ) Diluted $ 0.03 $ (0.00 ) Weighted average shares used in computing earnings (loss) per share: Basic 379,196 390,048 Diluted 379,656 390,048 Stock-based compensation included in costs and operating expenses: Cost of revenue $ 100 $ 76 Product development and technology 5,670 5,848 Sales and marketing 5,882 8,127 General and administrative 7,522 11,045 Expand GoodRx Holdings, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Three Months Ended March 31, 2025 2024 Cash flows from operating activities Net income (loss) $ 11,052 $ (1,009 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 20,912 15,942 Amortization of debt issuance costs and discounts 430 837 Non-cash operating lease expense 1,086 895 Stock-based compensation expense 19,174 25,096 Loss on operating lease asset 4,409 — Other 286 — Changes in operating assets and liabilities: Accounts receivable (14,183 ) (1,161 ) Prepaid expenses and other assets (13,487 ) 3,339 Accounts payable 286 (2,452 ) Accrued expenses and other current liabilities (19,079 ) 924 Operating lease liabilities (1,628 ) (4 ) Other liabilities 155 179 Net cash provided by operating activities 9,413 42,586 Cash flows from investing activities Purchase of property and equipment (142 ) (407 ) Acquisition (30,000 ) — Capitalized software (21,734 ) (20,208 ) Net cash used in investing activities (51,876 ) (20,615 ) Cash flows from financing activities Payments on long-term debt (1,250 ) (3,516 ) Repurchases of Class A common stock (99,897 ) (153,226 ) Proceeds from exercise of stock options 2 2,584 Employee taxes paid related to net share settlement of equity awards (3,757 ) (6,814 ) Net cash used in financing activities (104,902 ) (160,972 ) Net change in cash and cash equivalents (147,365 ) (139,001 ) Cash and cash equivalents Beginning of period 448,346 672,296 End of period $ 300,981 $ 533,295 Expand Non-GAAP Financial Measures Adjusted Revenue and metrics presented as a percentage of Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income Margin and Adjusted Earnings Per Share are supplemental measures of our performance that are not required by, or presented in accordance with, U.S. GAAP. We also present each cost and operating expense on our condensed consolidated statements of operations on an adjusted basis to arrive at adjusted operating income. Collectively, we refer to these non-GAAP financial measures as our 'Non-GAAP Measures." We define Adjusted Revenue for a particular period as revenue excluding client contract termination costs associated with restructuring related activities. We exclude these costs from revenue because we believe they are not indicative of past or future underlying performance of the business. For the current period and full year of 2024, revenue was equal to Adjusted Revenue. In addition, we expect revenue for the full year of 2025 to equal Adjusted Revenue. We define Adjusted EBITDA for a particular period as net income or loss before interest, taxes, depreciation and amortization, and as further adjusted for, as applicable for the periods presented, acquisition related expenses, stock-based compensation expense, payroll tax expense related to stock-based compensation, loss on extinguishment of debt, financing related expenses, loss on operating lease assets, restructuring related expenses, legal settlement expenses, gain on sale of business, and other income or expense, net. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of Adjusted Revenue. We define Adjusted Net Income for a particular period as net income or loss adjusted for, as applicable for the periods presented, amortization of intangibles related to acquisitions and restructuring activities, acquisition related expenses, stock-based compensation expense, payroll tax expense related to stock-based compensation, loss on extinguishment of debt, financing related expenses, loss on operating lease assets, restructuring related expenses, legal settlement expenses, gain on sale of business, other expense, and as further adjusted for estimated income tax on such adjusted items. Our adjusted taxes also excludes (i) the valuation allowance recorded against certain of our net deferred tax assets that was recognized in accordance with GAAP and any subsequent releases of the valuation allowance, and (ii) all tax benefits/expenses resulting from excess tax benefits/deficiencies in connection with stock-based compensation. Adjusted Net Income Margin represents Adjusted Net Income as a percentage of Adjusted Revenue. Adjusted Earnings Per Share is Adjusted Net Income attributable to common stockholders divided by weighted average number of shares. The weighted average shares we use in computing Adjusted Earnings Per Share – basic is equal to our GAAP weighted average shares – basic and the weighted average shares we use in computing Adjusted Earnings Per Share – diluted is equal to either GAAP weighted average shares – basic or GAAP weighted average shares – diluted, depending on whether we have adjusted net loss or adjusted net income, respectively. We also assess our performance by evaluating each cost and operating expense on our condensed consolidated statements of operations on a non-GAAP, or adjusted, basis to arrive at adjusted operating income. The adjustments to these cost and operating expense items include, as applicable for the periods presented, acquisition related expenses, amortization of intangibles related to acquisitions and restructuring activities, stock-based compensation expense, payroll tax expense related to stock-based compensation, financing related expenses, restructuring related expenses, legal settlement expenses, loss on operating lease assets, and gain on sale of business. Adjusted operating income is Adjusted Revenue less non-GAAP costs and operating expenses. We believe our Non-GAAP Measures are helpful to investors, analysts and other interested parties because they assist in providing a more consistent and comparable overview of our operations across our historical financial periods. Adjusted Revenue, Adjusted EBITDA and Adjusted EBITDA Margin are also key measures we use to assess our financial performance and are also used for internal planning and forecasting purposes. In addition, Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Adjusted Earnings Per Share are frequently used by analysts, investors and other interested parties to evaluate and assess performance. The Non-GAAP Measures are presented for supplemental informational purposes only and should not be considered as alternatives or substitutes to financial information presented in accordance with GAAP. These measures have certain limitations in that they do not include the impact of certain costs that are reflected in our condensed consolidated statements of operations that are necessary to run our business. Other companies, including other companies in our industry, may not use these measures or may calculate these measures differently than as presented herein, limiting their usefulness as comparative measures. The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated in accordance with GAAP, to Adjusted EBITDA, and presents net income (loss) margin, the most directly comparable financial measure calculated in accordance with GAAP, with Adjusted EBITDA Margin: The following tables present a reconciliation of net income (loss) and calculations of net income (loss) margin and earnings (loss) per share, the most directly comparable financial measures calculated in accordance with GAAP, to Adjusted Net Income, Adjusted Net Income Margin, and Adjusted Earnings Per Share, respectively: The following table presents (i) each non-GAAP, or adjusted, cost and expense and operating income measure together with its most directly comparable financial measure calculated in accordance with GAAP; and (ii) each adjusted cost and expense and adjusted operating income as a percentage of Adjusted Revenue together with each GAAP cost and expense and operating income as a percentage of revenue, the most directly comparable financial measure calculated in accordance with GAAP: The following table presents a reconciliation of each non-GAAP, or adjusted, cost and expense and operating income measure to its most directly comparable financial measure calculated in accordance with GAAP:
