GoodRx Shares Tumble but CEO Says he Never Looks at Stock Price: ‘If I Did, I Would Jump out this Window’
Ben Bergman is the newsroom's senior reporter, covering venture capital. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks. Follow him on Twitter.
By all accounts, Santa Monica-based GoodRx delivered a strong first quarter as a public company. Year-over-year revenue beat analyst expectations, soaring 38%. Monthly active users increased a robust 29%. As the pandemic continued to rage across the United States, a record 4.9 million consumers used GoodRx to fill prescriptions.
"I think across the board I was really happy," said co-founder and CEO Doug Hirsch.
But Wall Street was not as pleased, with the stock closing down more than 6%. After mostly zigzagging since their September debut, shares now trade near where they did the first day of trading.
Asked on a brief Zoom video call if he was surprised by Thursday's drop, Hirsch replied: "I'm not surprised because I don't really look at it to be honest. If I did, I would jump out this window." (A representative for Hirsch later clarified he was joking.)
If there was one thing for investors to nitpick it would be the company's $50 million net loss after recording a $19 million profit in the third quarter of last year. But that mostly due to $98 million of stock-based compensation awarded to Hirsch and his co-founder, Trevor Bezdek, for taking the company public.
The company's margins also decreased slightly from the second quarter as it spent more on advertising to try to entice consumers back into pharmacies after stay-at-home orders ended.
Hirsch shrugged off the loss and said he is focused on growth.
"We're going to continue to invest," he said. "We're doubling down on new products and new services."
In the last quarter, the company expanded its subscription service, GoodRx Gold and its telehealth offering, HeyDoctor. The company also extended a partnership as the exclusive prescription savings program for Kroger, the largest grocery chain in the U.S.
As consumers continue to stay at home for the foreseeable future, the company forecast 40% year-over-year revenue growth next year.
Founded in 2011, GoodRx is a beacon for the Southern California tech community – the rare startup that has gone public and faced the unrelenting scrutiny of Wall Street.
"It's intense," said Hirsch. "It's certainly a journey. I've learned the hard way that I have to take the long view."
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LA Tech Updates: Apple Podcast Vet Joins QCODE, Amazon Reportedly in Talks to Buy Wondery, Pharrell's New Black Ambition Incubator
Apple Podcast Veteran Joins Startup QCODE<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDUzNTQzMC9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzNDUzMzYyNH0.pOGV2lL0qOJQDiWw1T5i4SqsGfaL54hLWED6_5Mf1Ww/img.png?width=980" id="8d68d" class="rm-shortcode" data-rm-shortcode-id="f2a47797239f360473fead53338231d4" data-rm-shortcode-name="rebelmouse-image" alt="qcode" />www.sonos.com <p>QCODE, a Los Angeles podcast startup run by a former Creative Artists Agency talent agent, snagged longtime Apple podcast executive Steve Wilson. The 15-year veteran will become QCODE's chief strategy officer.</p> <p>QCODE, which <a href="https://dot.la/sonos-podcast-qcode-2648395035.html" target="_self">last month raised $6.4 million</a> in a Series A round led by Sono, is positioning itself as a funnel for Hollywood. </p> <p>Founded by Rob Herting, a former agent who had represented largely writers and filmmakers, the company has produced eight shows since 2019. Several have been auctioned for film and television, including "Dirty Diana." Amazon picked up the 6-part erotic drama for a TV series.</p>Wilson, who most recently ran marketing for Apple Podcasts, brings insights from the behemoth platform as the industry sees revenues soar. Advertising brought in near $1 billion this year, according to Interactive Advertising Bureau's podcast report prepared by PwC.
Amazon Reportedly in Exclusive Talks to Buy Wondery<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDc5NDU5OS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0MjgyMDY3NX0.BHKSXjwra-gGsFEa7lXCCCMJXWV5cYxrZqhddj3-uds/img.jpg?width=980" id="d401d" class="rm-shortcode" data-rm-shortcode-id="c9c9eee1f9adc4c1d5edeca1af986a84" data-rm-shortcode-name="rebelmouse-image" alt="Hernan Lopez" />Hernan Lopez started Wondery with the belief that in-depth, narrative audio stories were poised to bloom.<p>Amazon is in "exclusive talks" to buy podcast company Wondery and subsume its 30 hit shows and over 8 million monthly listeners into its empire, the Wall Street Journal reported on Wednesday.</p> <p>The talks reportedly value Wondery above $300 million, in line with previous estimates from analysts, when Apple and Sony were said to have expressed interest.</p> <p>Wondery has produced dozens of original series including "Dr. Death" and "Business Wars," and has 19 shows currently in development to become television series. </p> <p>The company does not publicly disclose its financials, but chief executive Hernan Lopez has previously said the company is profitable. About three-quarters of Wondery's revenue comes from advertising, but Lopez has said the company's revenue share from content licensing is growing (Wondery owns the intellectual property for all of its originals). It also launched a subscription service, Wondery Plus, in June and is currently looking to expand its international footprint. </p> <p>Wondery, the West Hollywood-based company with the largest audience of any independent podcast producer, has been the subject of swirling rumors that several suitors are interested in acquiring it.</p> <p>After a pandemic-induced decline that struck much of the podcasting industry, Wondery's audience has surpassed its pre-COVID levels. Its Q3 revenue was about double year-on-year and its Q4 performance has been strong, Lopez previously told dot.LA. </p> <p>Podcasting overall now attracts over 100 million monthly listeners, according to Edison Research. The Interactive Advertising Bureau projects podcasting revenues to exceed $1 billion by 2021.</p> <p>That growth has spurred somewhat of an arms race, most evident in Spotify's spending spree, which also has helped that company diversify from its reliance on streaming. Amazon Music is one of Spotify's biggest competitors along with Apple Music, and <a href="https://www.wsj.com/articles/amazon-music-joins-podcasting-fray-11600261201?mod=article_inline" target="_blank" rel="noopener noreferrer">recently expanded into podcasts as well</a>. </p> <p>Acquiring Wondery would give Amazon more content to slide into Amazon Music, a scaled-down version of which is free for Amazon Prime subscribers. Combining that content with its Alexa smart speaker also could empower the company to capture more eyes and ears in the increasingly competitive attention economy. </p> <p>The talks are reportedly ongoing and no deal has been confirmed. </p>
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LA Tech Updates: Fidelity Reportedly Seeks to Unload Bird Shares at a Loss; Warner Bros Streaming 2021 Releases; Plug-In South LA's Accelerator for 2021
Fidelity Reportedly Seeks To Unload Bird Shares at a Loss<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjkwMTI2OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyOTc0NTgyM30.2gHsdIxx6hnX0sV0Evq4Xdc-UsOWfaDn5sxhMhUWVoQ/img.jpg?width=980" id="e3f93" class="rm-shortcode" data-rm-shortcode-id="7034229cee2777d3a9f7e45313d88a5b" data-rm-shortcode-name="rebelmouse-image" />Escooter Unicorn Bird Seeks to Unload Santa Monica HQupload.wikimedia.org<p>Fidelity Investments is attempting to unload some of its shares in Bird Rides Inc. at a loss, <a href="https://www.businessinsider.com/bird-investor-fidelity-selling-stake-scooter-2020-12?r=US&IR=T" target="_blank">according to a report</a> published Wednesday night by Business Insider.</p><p>The move comes <a href="https://dot.la/bird-scooter-2648232688.html" target="_self">after dot.LA reported in October</a> that the mutual fund giant has marked down the value of its Bird investment by 17% since the beginning of the year.</p><hr><p>As a private company, Bird does not have to share its financials. Nor do the venture funds that hold most of its shares. However, Fidelity is required to account for shares at their fair market value so it provides a rare glimpse into the company's health.</p><p>But a source close to the matter said the sale should not be seen as any indication of Bird's financial performance. The shares represent less than ten percent of Fidelity's position and the intended sale is the result of a new portfolio manager taking over who does not want to invest in pre-IPO companies, the source said. </p><p>Neither Bird nor Fidelity would respond to dot.LA's request for comment.</p><p>Bird <a href="https://www.inc.com/magazine/201902/will-yakowicz/bird-electric-scooter-travis-vanderzanden-2018-company-of-the-year.html" target="_blank" rel="noopener noreferrer">became the fastest company in history</a> to reach unicorn status in 2018 and achieved a $2 billion valuation less than a year later. But as the pandemic hit, it abruptly laid off 406 employees <a href="https://dot.la/bird-layoffs-meeting-story-2645612465.html" target="_self">via a Zoom call</a> and was forced to remove its fleet from city streets just as it was gearing up for its normally lucrative summer season. </p><p>dot.LA reported in October the company <a href="https://pbs.twimg.com/media/EjstMVqVoAAWd7f.jpg" target="_blank" rel="noopener noreferrer">put its Santa Monica offices up for sublease</a> less than a year after completing a costly renovation.</p><p>Bird has maintained <a href="https://www.bird.co/blog/empty-streets-effect-pandemic-unexpected-lesson-life-after-cars/" target="_blank" rel="noopener noreferrer">the pandemic has been a positive</a> as riders prefer scooters over crowded buses and subways. <a href="https://www.bird.co/blog/scooter-riders-making-comeback-riding-longer-than-ever/" target="_blank" rel="noopener noreferrer">It says it is seeing riders take longer trips</a> than they did before the pandemic. </p><p>Last month, <a href="https://dot.la/bird-ipo-2648944903.html" target="_self">Bloomberg reported</a> Bird is looking to go public via a blank-check company. Bird said it had no plans to go public "this year," which did not exactly rule out a SPAC sometime in the near future. </p>
Plug-In South LA Opens New Accelerator Cohort for 2021<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDg2MzAxMS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MTg0MTM1Mn0.QPKaMFTusp_uKe5Td0K77QKhp7KXUY6_An5edQ588VM/image.jpg?width=980" id="460a2" class="rm-shortcode" data-rm-shortcode-id="c53839f0b8ac6658fd10bb2da6ea53f8" data-rm-shortcode-name="rebelmouse-image" /><p>Plug In South LA's Accelerator Program is returning in 2021. The outfit is looking for 10 Black and Latinx founders who have proof of product-market fit and traction. The organization, founded in 2015 by Derek Smith, aims to build a network for Black and Latinx founders in South Los Angeles.<br></p><p>Last year was the inaugural accelerator program funded by Verizon, Silicon Valley Bank and Nike. The 2019 cohort hosted five startups including Spooler, a tech-based clothing design startup that credits the program with helping to increase revenue two fold since March. During the program, the company received a contract to launch a Sesame Street active wear product line. </p><p>The last day to <a href="http://pluginsouthla.com/accelerator" target="_blank">apply for the program</a> is Dec. 9 </p>
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