GoodRx Holdings, Inc. (GDRX) Earnings Call Transcript & Summary

Thank you for joining us today at Morgan Stanley's Global Healthcare Conference. I'm Ricky Goldwasser, Morgan Stanley's health care services analyst, and I'm really pleased to have with me here the GoodRx management team. We have Doug Hirsch, who's the co-CEO of GoodRx; and Karsten Voermann, who's CFO. Before we get started, we need to do a few disclosures. So first of all, this webcast is only from Morgan Stanley clients and appropriate Morgan Stanley employees, and it's not for the members of the press. And for important disclosures, I'll just refer you to our research website at www.morganstanley.com/researchdisclosures. And with that, I'll hand it over to Whitney on the GoodRx side to give some forward-looking statements.

Thanks so much for having us, Ricky. Before we begin, I just want to remind the audience that this webcast may contain forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties. Please review our SEC filings for risk factors that could impact our future performance. Back to you, Ricky.

Great. Thank you very much, Whitney. And with that, Doug, Karsten, great to have you here today. So to kind of like for any conversation, Doug, I wanted to hand it over to you just for some sort of opening remarks. If you can just kind of like walk us a little bit through kind of like GoodRx, kind of like the business model and kind of like recent developments.

Sure. And thank you, Ricky, and thank you Morgan Stanley. We're really excited to be here today, and I appreciate your guys' time. Trevor and I started GoodRx to provide affordable and accessible health care for all. One thing I learned early on was just we have an incredibly complex health care system in this country, and people just don't know where to turn. And they're looking for someone that they can trust, and they're looking for help to get through. Even the most simple health care transactions have become so impossible and filled with complicated terms. And this all started actually with me. If you go back to 2010, I literally was handed a prescription from a doctor. I took it to a pharmacy. They said it would be $500, and I just was like, that's insane. I hadn't had a discussion with my doctor. So I took it back, and I went to another pharmacy on the street where it was $250. I went to a third pharmacy where they said $400. And then when I walked up, they chased me in the parking lot, this wonderful pharmacist and she said, "I really want to get to this drug. I can discount it. There's all these ways to save." And I have no knowledge of this. And because my history was I worked at Yahoo! for many years than I worked at Facebook, I went back to the Internet, and I searched for drug prices. And believe it or not, 10 years ago, there was nothing. There was just no information, not just for drugs, but for health care in general. And so the genesis of GoodRx was just a simple idea. Could we give people the education so that they could understand, not only prices, but then potential ways to save, which were huge, as I found out, at pharmacies near you? If you go forward 10 years later, we've saved Americans over $30 billion on prescriptions. Our business is just -- is crushing it, right? We had record revenue, record profit, record users in Q2. We've been able to extend our platform from just prescription discounts for generic drugs to now today, we talk about brand -- we focus on brand drugs, and we can talk about that. We have subscription businesses like GoodRx Gold and our Kroger Rx Savings Club. We have telehealth, and we're really trying to tackle this entire $4 trillion industry because it's still very, very broken, and too many American simply just don't know that there are incredible ways to find affordable care. And thus they aren't getting the care they need. Almost 20 million Americans visit GoodRx every month. And I should point out that a good chunk of those people, about 17% of those people are health care professionals who are just coming also because they want to help their patients. And they're frustrated, and they're overworked, and they're also trying to find those same solutions that the consumers are looking for as well. Our accessible platform is the foundation to allow us to continually offer even more valuable services to health care providers and consumers, and I look forward to discuss all that today. Ultimately, we're empowering Americans with the knowledge, choice and care they need to stay healthy, regardless of their income or insurance status. So I'm just really, really proud and excited to talk to you guys today. I think that not only our core business with -- most people are familiar with GoodRx really as I've seen an ad for it, and my doctor told us about it. But there's so many really, really exciting new things that we're working on. Again, I really want to dig into our manufacturer solutions business today, which is a whole different industry effectively from the way that generic drug traditionally work. I'm happy to talk about telehealth. And I'm happy to talk about all these additional ways that we're looking to extend our platform to basically build trust with consumers and ultimately be their guide through America's broken health care systems. So I look forward to talking to you more about that today, and thank you for having us.

So Doug, if you think about it, the defining feature of GoodRx is that consumer orientation, like that's a differentiation from how things have been done in health care in the past. So who is that typical GoodRx user? And how has it changed over time?

Do you want to take that?

Yes. Maybe I can jump in on that one. So yes, the thing that's so exciting about GoodRx is that it really is for everyone, and it can be used by anyone. We're not really over-indexed to any particular geography or demographic. For example, some folks are surprised to hear that high-income earners like our PwC auto partner here in coastal Los Angeles uses GoodRx before we're even one of its clients. From a geographic standpoint, our tech platform processes over 200 billion pricing data points a day at 70,000 pharmacies across the U.S. So literally pretty much every pharmacy across the whole country in all the different geographies. And we help both insured and uninsured consumers, they're, too, about 3/4 of GoodRx consumers have insurance with the remainder not having insurance. And of the folks who have some kind of insurance, that covers both private insurance as well as Medicare. Again, with the Medicare consumers forming roughly about 1/3 of GoodRx users. So we really do cover the full panoply of different kind of constituencies in the U.S. We have an NPS of 90 with consumers, and we have over 80% repeat transactions because consumers really like us, and they find us relevant, and they find their savings important to their lives. In some cases, even life-saving in terms of their ability to get medication they might not otherwise be able to benefit from. And we've also got incredibly strong relationships with health care providers, which is a unique feature of GoodRx and is also through the broader unpaid channel, our single biggest source of new GoodRx because of our tight partnership.

So how does the core prescription platform work? So how consumers save on it?

Yes. I mean, so first of all, I encourage everyone who's listening in today to try it. I mean, honestly, GoodRx is that simple. We've built a product that I'm so proud. It's so easy to use, which is, of course, unlike most of health care. So most people can't even log into their insurance website, let alone navigate to what the price dosage form, quantity, all these complicated things, co-pays, deductibles. With GoodRx, you literally go to our website or download our app. You type in the first 3 letters. We guide you to the drug. We guide you to the most common dosage form and quantity. We show you incredible discount prices, which I should highlight are often lower than a typical copay that a consumer can literally just show a coupon to the pharmacist. Now at this point, look, we've been doing this for a long time. We effectively dominate this industry. Pharmacists, health care professionals are familiar with us. And so you can actually show up. And oftentimes, you just say, "I'll be using GoodRx," and the pharmacist or pharmacy tech will take it from there. It's a simple, easy-to-use technology platform. And I mean this is the DNA that we bring to it, right? Remember, my background is consumer health care -- sorry, it's consumer, not health care. And really, we're trying to bring consumers into a space that just has never had it. So we do all sorts of work. I should highlight that what looks very simple, GoodRx is effectively as -- you think of it as a search and then some price and then potentially a discount. But the reality is underneath it, there's incredible amounts of hard work. We have over 200 billion daily price points for 70,000 pharmacies across the country. We have every single NDC built into GoodRx and some capacity. We have to figure out exactly which bottle the pharmacist is reaching and grabbing because each one has a different price on a per pill basis. So what's great about it is as we get bigger, this flywheel just continues to accelerate, right? So for example, the more data points we have, the more confident we can be that we know exactly which bottle is being grabbed. We can help drive lower prices between the relationships we have with pharmacies. We can work directly with pharmacies, such as the Kroger Rx Savings Club that we have, and we can continue to leverage our scale and our data to drive deeper consumer savings and ultimately higher usage. And then when we have this engagement, we can do all these amazing new products that we -- hopefully, we'll talk about today, such as our pharma manufacturer solutions, our telehealth offerings. And just to give you an example, like telehealth comes from -- we realize that a whole bunch of people were coming to GoodRx, and they were ready to purchase a prescription, but they didn't actually have a prescription. They didn't have an actual physical prescription from a doctor. So we thought, wait, we can plug in telehealth offerings at a very affordable cost. It's -- I think our telehealth services for about 30 different services started about $19. It's an incredibly low price for a consumer to come in, get a prescription and just, again, build both convenience and affordability into our platform so the consumers can -- across whatever stage in their health care journey they're in, they can find savings, they can find information and ultimately, get the care they need.

So when we think about sort of the traditional way of kind of like pharma services, the PBM has a very kind of like leading role. And very early on, I think you tapped into it, and you kind of like you partnered with the PBMs. But now you kind of like you have established relationship with pharmacies. You have kind of like deepening your relationship with the manufacturers, and now you have the manufacturing relation business. So as you have the scale that you are now, is it possible for the value proposition to change and for you to work more directly with manufacturers and with pharmacies?

Sure. That's a great question, Ricky. And earlier on, like you said, the PBMs are more helpful to us in the sense that they gave us instant penetration into all of the pharmacies in the U.S., which is very valuable. And since then, we've continued to have strong relationships with all of our PBM partners, and we've continued to expand the PBM network even further. In the last quarter, we added a couple of incremental PBMs. And again, we added them because they can offer even better savings for our consumers and allow us to generate a take rate. If they couldn't offer even better savings, it wouldn't make sense for them to be in the marketplace. We wouldn't have added them. They wouldn't have come because they get no volume. So that incremental savings is key and is one of the reasons we continue to work with ever more PBMs. And we always work together with them to find ways to increase activity, drive more volume and more value to them. And it's really symbiotic because the more reach and scale we achieve, the more value we're pushing their way and the more prescriptions they can benefit from as well the more revenue they generate. Right now, PBMs see us as a preferred way to drive volume through the cash pay networks because we've built such a strong direct-to-consumer brand and technology that allows them to really easily expand their reach and pick up incremental volume that they wouldn't otherwise have. In addition, the consumer brand we have with its 90 NPS is so attractive that it's much easier for us to bring consumers than for them to try and build anything remotely similar to this. And the transaction volume we drive is transaction volume they likely would never otherwise get. So our goal is to work closely with PBMs as well as other partners like pharmacies, manufacturers, physicians, like I talked about being a huge source of referrals for us, and pharmacists. I think all that said, though, these relationships are great, but we've also built strong capabilities of our own. A few years ago, we bought an asset called Focus Script. It allows us to do adjudication. We have ever stronger relationships with manufacturers, both in our manufacturer solutions business where it can help them expose their different medications to consumers and to health care providers. And those relationships could allow us in future to potentially expand beyond working with PBMs as much as we do today. But at the present time, given the amount of ecosystem margin we've been able to capture, and the amount of value that PBMs still provide to us with their reach, with the data networks they provide, et cetera, we feel like right now, it's a good balance point for us, and we continue to look forward to working in these partnerships for some time into future.

So if you think about the health care stakeholders, the providers, the physicians, it's really kind of like important stakeholder. And I'd say that you've announced a number of different partnerships and relationships recently. But for me, one of the most exciting news that came out was the Surescripts relationship. It really sort of positions you upstream where the scripts are written. So how does that change how physician use GoodRx? And importantly, how does it help reach the consumer before others do?

Sure. So we're really excited about that deal too, Ricky. So I think we share that in common. Our agreement where Surescripts creates a really exciting opportunity for us to continue to strengthen our physician relationships, in particular, and it makes it easier than ever for health care professionals to use and recommend GoodRx. But we're working with Surescripts, we help prescribers make more informed decisions, particularly with respect to pricing, and address prescription cost concerns for patients, and patients whose coverage may not be otherwise applicable to a given kind of a medication. We're really proud of the deep relationships we've built with health care providers over the past decade. And as we've mentioned in earlier calls, over 2 million prescribers in the U.S. have a patient that has used GoodRx. And we have in-office presence in over 400,000 physician offices, with 80% of prescribers recommending us. All great stats. Surescripts makes it even easier for those folks to do the things they're already doing, and it reduces friction so that as prescribers are contemplating a new prescription for a new patient, they can make sure to offer the patient the best possible GoodRx price as an alternative to any other price the patient may otherwise see. And you have to remember, too, that over 50% of the time, GoodRx is able to be cheaper than an insurance copay by over 50%, too. So half the time, we beat the copay by over half, and that's a really remarkable achievement where, again, when -- the further up the prescription flow we go, the more we can help consumers by grabbing more of that prescription [ share ].

It's really interesting because it seems to me just like when you kind of like started the business, kind of like you've inserted -- you build a business around the workflows of the pharmacy. Now you've kind of like taking it, and you're kind of like fitting in within the workflow of the provider. Is that sort of kind of like a sort of a simplified way to think about it?

I think that's exactly right. I mean if you go back to my founding story, it's -- all those touch points is what we're trying to attack. So first and foremost, remember that if a physician writes you a prescription and then you show up in the pharmacy and seeing it's too much money, you're mad at everybody. You're mad at the pharmacy. You're mad at the physician. You're mad in the system. You're mad at the manufacturer. And so we're trying to make sure that, that doesn't happen, right? We're also in the education business. I think that's important to emphasize. And so now literally at the point of prescribing, you can have this educated conversation with your physician who can guide you to the solution that works best for you, can propose alternative therapies if there's something else that might work better and then can arm you with everything you need so that when you show up at the pharmacy, there's no more surprises. There's no more person with the white code that comes up with a price you don't know. You know exactly what you're getting into. And that really is our ultimate goal is for empowering consumers to be able to make choices just like you do in any other industry, just like you do in travel or just like you do in electronics, to be able to say, I'm going to make this choice because this meets my health care budget and gets me to the end result I'm looking for. So you're exactly right. I mean this is what we spend a lot of time on at GoodRx, which is just focusing on unraveling the mess and showing both, again, providers and consumers pass that they can get to where they're trying to go to solve their health care pain points.

Right. And it's making the physician, the provider, an ally versus at the point of the pharmacy when after they made a decision, someone calls them back, and that creates kind of like that friction. You were kind of like doing that output.

What's interesting is it's not only making them an ally, but actually also saving them both time and money, right? Because if you think -- Karsten, you have a pretty good stat about the [indiscernible] ...

Yes. Physicians spend 14.6 hours a week, according to the American Medical Association, trying to get patients on medication. That's a huge amount of time. And if we can help save them that time and be effective at getting patients on the right medications, that's just a wonderful outcome. But it's really not just physicians. We partner up with pharmacies as well. Like I think one of the examples is that numerous pharmacy chains work with us to create trainings for their pharmacists on how to use GoodRx, leverage GoodRx and take advantage of it for their consumers, like Walmart is a great example of that. So it's not just physicians. We -- we've really built an ecosystem where all of the key players are aligned with the vision that we have of creating a better outcome in terms of access and affordability of health care for all Americans, insured, not, all geographies.

And one of the areas that we're trying to solve pain points on is also for the pharmacist and pharmacy tech as well because there's all sorts of administrative costs there and there's a lot of investment we're making in working with pharmacies to make the counter experience better, not just from the consumer side, but also make it more efficient from the pharmacy processing side. And you'll see some of the fruits of that labor real soon.

So it's sort of interesting because I'm waiting for like the next time, we talk about pharmacy solutions, but let's talk about pharma solutions -- or pharmacy solution, but pharma solutions. So it's still a relatively small part of the business, but you've kind of like created this platform and -- that provides advertising opportunities to branded manufacturers. And that's been growing really rapidly this last year. And Doug, in prior conversations we had, you used to say that this is all about kind of like you guys allocating the time and the resource towards that and that this is a real sort of intuitive market to be had. So how do you leverage your core prescription platform with the awareness, with the access with that consumer focus in the adherence pharma solutions to create value to these large pharma companies?

Yes. Our core prescriptions platform, Ricky, is what pulls in so many health care providers and so many consumers as well. We have almost 20 million people coming to our platform each month, about 17% of those people who come to our platforms are health care providers. So a huge, huge number. And we're really excited about our pharma manufacturer solutions offering and its extraordinarily rapid growth because it complements the core prescriptions offering by being able to reduce the cost of brand prescriptions for Americans, too. So GoodRx has helped millions of people for generic medications and lower the prices there through our core prescription transactions offering. But brand prescriptions still remain unattainable for a lot of people just because the price points can be so high in the thousands of dollars. And despite our amazing savings rates of 70-plus percent, if you take something from a couple of thousand dollars down by 70%, and it's still $600, a lot of people can afford that, and pharma manufacturers want to provide affordability options. They're hugely underutilized. By some stats, only about 3% of the people who could take advantage of their affordability options do, but the $30 billion they spend annually to try and reach consumers isn't working. They're just not able to get those accessibility solutions out there, and that's where we can help. We have huge scale. We have huge reach, both with consumers and with providers. And we help address the challenge by hitting it exactly at the point of prescriptions where it can connect doctors, patients and pharma manufacturers in the most efficient and effective way. In less than a year, we've kind of reimagined the way patients and providers learn about afford purchase, stay on medication on the brand level. We have 8 different solutions for them. We've penetrated into 19 of the top 20 manufacturers at this point where the business has roughly tripled year-over-year. It's just amazing how much momentum we've been able to build there. So we're really excited about that. And it's, for me, personally, one of my favorite parts of the business to work on, especially because it's almost all margin, which I have to throw in as a CFO.

So when we think about it, Karsten, when you describe it, intuitively, we tend to think about the business -- the pharma solutions business is tapping into kind of like the direct-to-consumer digital marketing spend. But is there also an opportunity here as we think about now kind of like your relationship with Surescripts over time to take that? And this is not only direct-to-consumer digital spend, but this is also really manufacturing digital spend that is targeting providers, which is an even [indiscernible] market opportunity...

Absolutely.

Which you're not even talking about.

Yes. No. We are -- I'll talk about it right now, Ricky. I'll fix that right now. No. We've really seen a macro shift to digital on the -- on the spend focused on providers. So the direct to providers [indiscernible] like you used to see a world where detailers used to go to physicians and other providers to try and promote or educate around different medications. We've recently seen some survey data, and we published this in connection with our last earnings call, and we did a deep dive on manufacturer solutions, too, that says that the in-person detailing business has dropped 70% year-over-year. And more pointedly, the health care providers don't want that to come back. They don't want people interrupting them in their offices. And that's a good thing. That's a good thing from our perspective because as folks struggle to get in-office access to health care providers and as alternative digital channels become relatively less advantaged than us because, remember, we know everything about our consumers and our health care providers in our own ecosystem. We don't need to worry about a cookieless IDFA-controlled world. We can just use our own data to target and to manage the manufacturers' messaging in the best possible ways for them. So that makes us uniquely positioned to capitalize both with consumers like you're alluding to, but more importantly, and also in connection with Surescripts, to be able to capitalize on the ability to help providers make great decisions for consumers, too. So we target both of those areas, absolutely. And again, with over 2 million prescribers having patients who use GoodRx, pretty much every prescriber has a relationship with GoodRx at this point. There's almost nobody out there who not only doesn't have a relationship. But like we said, about 80% of them refer GoodRx. We have 86 NPS with providers. They really like us, and they want to hear from us, unlike a lot of these detailers who used to be out there in the field. Nothing against them, of course.

So I have 2 questions from the audience. So let me just kind of like run with those. One is it's a point of clarification around Surescript. And the question is for Surescript -- is Surescript for now just a product for uninsured population or for all patients?

I'll take that. And Karsten, feel free to jump in if you want. Surescript is built directly into the provider flow. It's an incredible relationship, and we're very proud to be participating with Surescripts in this. And again, this goes back to what I was talking about, about education in the actual physician's office, where literally, again, the provider will turn to me and say, "Hey, Doug, you're going to need drug x." And regardless of my insurance status, typically with many EMRs, but not all, and they have unfortunately, quite awful interfaces sometimes. They'll give you some general guidance as to coverage, as in this drug is typically not covered or it's $2 signs [ at a ] $4 signs. But what we're doing is we're integrating an actual GoodRx discount price in there. So literally, you and the provider can say, "Hey, it looks like this may or may not be covered by our insurance." There's also a GoodRx price, which is $16 or $4, whatever that price is. So -- and I want to remind you that again, 74% of the people that come to GoodRx have insurance, still yet choose to use GoodRx because they're finding a better price or they've got some restrictions in their insurance policy. So the short answer is this is for everyone. This is not just for uninsured Americans. It's for, again, the vast majority of people that come to GoodRx actually have insurance and still are finding a better outcome using GoodRx, same thing with this program.

And the second question is more on the regulatory front. If any of the initiatives that the White House sort of released this week create either opportunities or even challenges, right, if they're implemented.

Yes. And again, I'll take a stab, and Karsten, if you want to jump in. We get asked this question quite often. It's kind of fun to get this question because we've been doing this since 2010. So we've lived through the part of the ACA, the almost repeal of the ACA, the rebuild of the ACA, the -- and every single administration is taking steps to try and fix what's broken with health care in this country. And none of them have had any material impact. And nothing that we're seeing right now, which putting aside the chances of this thing is actually passing, has any really material impact on our business. Most of the focus of, especially like the recent drug pricing discussion, is on usually a handful of very high-cost drugs where they're trying to either benchmark it to another country or to put some sort of restrictions around a small number of drugs that are not really anywhere close to the core of what GoodRx' business is. we don't see anything specific. The only -- the good news, because honestly, I'd say there's nothing but good news for our company and what we see there is a continued push toward transparency. A continued push towards opening up some of this information that's traditionally been locked up between private contracts, between, say, PBMs and insurers and patients and allowing someone like a GoodRx to say, "Hey, here are your prices in multiple different ways you can purchase this." Choose your best option and allowing us to engage the consumer around the entire vantage point of that decision. So we're really excited about some of the moves to really open this up and build more transparency. With the exception of that, we don't see a lot in the current legislative docket that we think will have any material impact on our business and the areas we focus on.

And then one last question that we got here from the audience. It's actually about your take rates. So your take rates have gone up last quarter. Some of the private peers seem to have taken their doubt. Can you just kind of like discuss that? And maybe kind of like how your ability, right, to kind of like bring those take rates up. Is it scale -- kind of like how are you getting there?

This is an area where being the largest relative market share player by a lot really matters. And the reason it really matters is it gets us better and better pricing with all of our constituents. We talked about the PBMs earlier, providing PBMs with more scale results in better pricing. And that better pricing takes 2 forms. One is better pricing for consumers where we dominantly have better pricing than anyone else in the discount space. And the other piece of it is, as we also generate better pricing for consumers, that also increases naturally our take rate as well. So the overall amount of value that we capture gets split between the consumers who get almost all of it and us who keep a little bit of it. And as we continue to scale, the take rate has naturally gone up. The take rate went up by a few percentage points over the last few years. The savings rate for consumers by more like 20 percentage points over the last few years. And that proportion is, because we believe in providing the majority of the value back to consumers to continue to fuel our growth, but also in integration with our mission of access and affordability for health care in general and prescriptions in particular. So as we continue to generate more and more relative market share, we'll expect to continue to have the absolute best prices on the massive majority of prescriptions, the absolute best savings for consumers, and that in turn will drive incremental potential for take rate. We haven't to date leveraged this and decided, "Oh, we're going to take a bigger share and give consumers a smaller share." In fact, if anything, we think about it the opposite way that as we've continued to expand, we look to share more value with consumers. Again, given the huge amount of white space we have in this TAM ahead of us, not just in prescriptions, but all of the ancillary businesses we talked about today.

So Doug, Karsten, we're almost out of time. So with 1 -- 60 seconds to go. You change how consumers access drug pricing. You innovate it. You use technology way that's aligned with existing workflows, and you partnered along the way with health care stakeholders. We hear so much about big tech companies entering health care, but have seen many -- not many making any impact -- meaningful impact, at least not yet. So what do you think they're missing?

Well, first of all, we want to thank everyone for their time. And it's sometimes hard to resume to convey how excited I am about this moment in time because I feel like we're on -- we've made so much progress. We've saved Americans over $30 billion. We have almost 20 million people coming to us a month. And it's just -- like so -- it's just the tip of the iceberg for all the things that we want to accomplish here and the impact we want to have across all of health care. Remember, we have this incredible relationship with both consumers and with HCPs. We have MPSs that 80 to 90. I mean really incredible numbers. We have 200 billion price data points coming in every day. We're using AI and ML and technology. Ultimately, just improved pricing outcomes for consumers across all of care. And so I just feel like we're on this incredible flywheel that's speeding up. And it's not easy to do this stuff, but we have like managed to just unravel this mass and built this trust that I am so excited about. And so as I look into the future, I think about -- there's like the list of things we want to accomplish is just long and getting longer here at this company. And we continue to hire more incredible people to build out this competitive moat and to keep this virtuous cycle of getting fed. And anyway, I just -- I don't know. It's amazing that I've been doing this for a decade, and I've never been more fired up about the opportunities I'm seeing to have a real impact on people, to continue to grow our market share, to continue to have a -- just business that crushes it. And ultimately, help fix health care in this country. So we remain very, very driven, very, very excited, and I look forward to showing all you some of the cool things that we're building real soon.

Great. Doug, Karsten, thank you very much.

Thanks for having us. We appreciate it.