GoodRx Shares Tumble but CEO Says he Never Looks at Stock Price: ‘If I Did, I Would Jump out this Window’

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. 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.

GoodRx Shares Tumble but CEO Says he Never Looks at Stock Price: ‘If I Did, I Would Jump out this Window’

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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Venture Firm Backstage Capital Laid Off Nine Employees, Reducing Its Staff to Just Three

Kristin Snyder

Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.

Venture Firm Backstage Capital Laid Off Nine Employees, Reducing Its Staff to Just Three
Photo by Jp Valery on Unsplash

Venture firm Backstage Capital laid off nine employees, reducing its staff to just three.

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Keerthi Vedantam

Keerthi Vedantam is a bioscience reporter at dot.LA. She cut her teeth covering everything from cloud computing to 5G in San Francisco and Seattle. Before she covered tech, Keerthi reported on tribal lands and congressional policy in Washington, D.C. Connect with her on Twitter, Clubhouse (@keerthivedantam) or Signal at 408-470-0776.

A New Tide of LA Startups Is Tackling the National Childcare Crisis
Courtesy of Brella

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According to a survey of people in science, technology, engineering and mathematics (STEM) careers conducted by the city’s WiSTEM Los Angeles program and shared exclusively with dot.LA, the pandemic exposed a slew of challenges across STEM fields. The survey—which consisted of 181 respondents from L.A.County and was conducted between March 2021 and 2022— involved respondents across medical fields, technical professions and science industries who shared the pandemic’s effects on their professional or education careers.

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Decerry Donato

Decerry Donato is dot.LA's Editorial Fellow. Prior to that, she was an editorial intern at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

“Talent Is Ubiquitous; Access to Capital Is Not': MaC Venture Capital Raises $203M for Early-Stage Startups
Courtesy of MaC Venture Capital

While venture capital funding has taken a hit this year, that hasn’t stopped MaC Venture Capital from raising $203 million for its second fund.

The Los Angeles-based, Black-led VC firm said Monday that it had surpassed its initial $200 million goal for the fund, which dot.LA reported in January, over the span of seven months. MaC said it expects to invest the capital in up to 50 mostly seed-stage startups while remaining “sector-agnostic.”

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