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

Good morning, and welcome. I'm Whitney Notaro, Vice President of Investor Relations, and I want to welcome you to GoodRx's first ever Investor Day. Our team is incredibly excited to be here with you all today, and we have a lot to cover in terms of how we have grown and evolved our business. Today, you'll hear from a number of senior leaders from across the business on topics including an overview of our market, business model and strategy as well as our growth opportunities. Midway through the morning, we'll have a short 15-minute break after the pharma manufacturer solutions section. And then following the presentation, we'll have a Q&A session. We encourage you to submit questions throughout the day using the QR code on the back of your name tag. If you're joining us via the live webcast, please use the platform to submit your questions as well. Before we jump in, let me summarize our disclaimer. I'd like to remind everyone that our presentation will contain forward-looking statements. All statements made that do not relate to matters of historical fact should be considered forward-looking statements, including those referenced here on screen. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors which may cause our actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These factors are detailed on this slide and in our filings with the SEC. Any such forward-looking statements represent management's estimates as of the date of this presentation, and we disclaim any obligation to update these statements, even if subsequent events cause our views to change. In addition, we will be referencing certain non-GAAP metrics in today's remarks. We have reconciled each non-GAAP metric to the nearest GAAP metric in our supplemental materials, which are available on our Investor Relations website at investors.goodrx.com. A replay of today's webcast and presentation will also be made available there following the conclusion of the event. I'll now turn it over to Scott Wagner, our Interim Chief Executive Officer, to kick things off.

Thank you, Whitney. Thanks, everybody. It's great to be with everybody today. Thanks to those of you who have gathered live in-person. And for those of you on the webcast, I appreciate you taking the time to watch. This is an exciting time to be at GoodRx. I had about 6 people come up to me just before this and say, "Thank God, you are doing this. This is overdue." I look forward to you guys having the time to lay out your story. So thanks for taking the time to do that with us. I'm looking forward to not just me but the team talking about our business and sharing the progress we've made over the last year and what it's going to allow us to do in the years to come. Before we just jump into the material, a quick background on me for those of you who don't know me as well, a couple of you do. I spent 12 years at KKR, the big private equity firm, a while ago and was one of the leads of their operating team, where I worked with a bunch of the KKR portfolio companies. And way back in 2011, I stepped in as the interim CEO of GoDaddy and liked it so much that I decided to stay for its second act. And while I was there, we built out the product portfolio, expanded the company around the world, shifted the brand in how we went to market and turns out that more than tripled revenue during the time that I was there at over $3 billion. And along the way, we took the company public. And it grew in value from $2 billion to a little over $13 billion. So it was a nice run. And several of the investors in GoDaddy are also in GoodRx. And when the GoodRx Board called me about 15 months ago and asked me to get involved, I was intrigued. And the reason I was intrigued was a little bit of the personal relationships with some of the same people, but it was really because I was and am GoodRx customer. One of my kids has eczema. If anybody has that, it's like this myriad of different medications in an ongoing situation you have to deal with. And my family and I have absolutely been at the point where I've rolled into a Walgreens, hit the counter and they said, "Oh, that will be $2,000." And my reaction is "Wait, what?" Right? Or you're on step therapy, and things are required for a whole bunch of authorization, and I've spent hours badgering doctors and pharmacists about how to get on the right medication. And GoodRx has helped me and our dermatologists solve some of these problems. So I get the problem. And I know how this company helps fix it. So in terms of coming in here, I said, "All right, I'd think about it." And over a couple of weeks of digging in with the company, talking to a couple of doctor friends of mine, actually watching pharmacists work behind the counter and see everything they have to do, I came away with a couple of impressions: First of which is that GoodRx has a really valuable role in health care. It helps people, it's important, and it's certainly appreciated by patients and particularly doctors. Second is that at the time, there was a whole bunch of noise about channel, retail, PBMs. To me, that seemed fixable. And hopefully, everybody here saw the press release today that one big retail partner and we, Kroger will talk about this a little bit more, [ about ] our digging in and partnership again together. And so its a nice sign that I think those things are absolutely fixable. And the third impression I had was that, "Man, there is just a ton of friction in this whole pharmacy system," that to me, it just struck me as an opportunity. Now that was based on more instinct than fact, but it just seemed like there was a lot to work with here. So I've said, "Hey, I'd love to get involved because there's a core [ value ] proposition that matters here. I believe in the mission. I've seen this company work." And I did know and think that I could really help. And so if you think about a year ago, there was certainly uncertainty, people in the company, about our priorities, what the direction of the company, where we were going. And amongst the investor community about, "Hey, what's the growth and profit trajectory of GoodRx?" As I stand here today, after a year, we've got a ton of confidence that GoodRx's value proposition is not only strong, but it's actually really durable that we're not only working on the right things, but we're making a hell of a lot of progress. And I hope after today, you're going to agree. And I think there's reason for all of you as investors to be excited about this company at this moment in time, immediately in the short term and then also over the long term. So hopefully, after a couple of hours, you're going to feel similarly. But before getting into the content, I'm going to share a handful of themes that I hope you guys all walk away from today with. First theme, this need for affordable prescriptions is a huge one, it's growing. And there's a bunch of fundamental trends in the market that I think are going to persist. Second big theme, GoodRx is absolutely the go-to platform for people, consumers and doctors, and we're going to use the word health care professionals in an acronym of HCP, but to go find affordable prescriptions. We've spent the last decade building out the GoodRx brand. We've become the leader in really prescription affordability. We're going to share our Net Promoter Scores for both consumers and doctors, which are really almost off-the-charts good. But again, it just reflects the value of what we do. Third big theme, our model. Our position in this value chain matters a lot, and it's important. There's been a lot of noise, I think, over the last year to that effect. Now, I think you're going to hear and see that we've really transitioned to something that's quite durable, that balances pharmacy and PBM economics. And again, this Kroger agreement that we just announced is a great reflection of that. The work that we've done to strengthen our retail network over the last 18 months, it's just -- it's bearing fruit. You're seeing it happen right now, and it's going to set us up, honestly, for the long term for this business and not only in the next couple of quarters, but the years to come. Fourth big theme, there's a bunch of different growth avenues that we've got with some real runway. Pharma manufacturer solutions, it's kind of a mouthful. What it really means is GoodRx value proposition to brands. Over 4 years ago, this was just an idea. Today, it's a $110 million business that works with 150 brands that's got real distinct value for brand manufacturers that I think has got a heck of a lot of trajectory. Extending GoodRx to B2B, which integrated savings that everybody has gotten really excited about, we're in the super early innings there, but it's just another avenue to bring GoodRx value to the world. Fifth big theme. These priorities that we've been working on, look, they're showing up. I think they're showing up in the financials. We're gaining momentum in revenue, in adjusted EBITDA profitability. And as we grow, particularly on revenue, you're seeing high flow-through to cash, right, that if you look at our financial trajectory, we're really on pace kind of to get to rule of 40, if not in 2024, then certainly in 2025, with obviously the ability to go beyond that if and as some of our revenue accelerators kind of come and hit. And Karsten is going to talk about our trajectory and our numbers later on today. Last big theme, there are things that we can do with our position and value prop that are on the back of what we're working on today. So what does that mean? As we solidify retail, bring brands and retail together, it opens up a whole another realm of possibility that we can do that aren't in our model, but can build as almost a second act for the company and get to upsides beyond. So we'll hit on some of these things that aren't in our numbers, but it will give you a picture about where this business can go. So 6 themes. Hopefully, everybody takes those away when we're all done in a couple of hours. I'm going to start in just ground, not GoodRx, but back to the market, what is the health care context that we operate in? What's our value proposition? Just a couple of fundamentals. So highest level, first, prescriptions. It's a big deal for a lot of Americans. There's over 6 billion 30-day equivalent scripts in the U.S. on an annual basis. Half of all U.S. adults take scripts regularly, take medication regularly. 1 in 5, 20% of us take multiple medications daily, it's a big deal. These scripts add up to a market of $600 billion. Now unfortunately or just statement of fact on that $600 billion, it's health care. So the underlying thing is who pays, right? Well, recently, as us, people, patients with prescription medication, the question of who pays is kind of confusing. It used to be, "We know exactly who it is." Now the question is, "I'm not sure," because health care is often paid for by insurance. But as we know, there's a whole bunch of plan design changes that's shifting the cost burden or the access burden on to us as patients. And this is really the context in which we operate. And there's 3 big benefit trends that I think are really the tailwind for GoodRx and our fundamental value proposition. The first is plans have more formulary exclusions. These are drugs not covered by your plan. These have been up 37% over the last several years. Second big trend. More utilization management or step therapy is required just to get access to a medication. Step therapy up 45% over the last several years. Final big trend, more patient co-pay at a substantial amount. The number of people who pay over $250 out-of-pocket for a script up over 40% over the last several years. More friction, higher cost, less coverage. Here's how these things actually kind of play out into what happens to scripts in the system. Formulary exclusions. So the 3 big PBMs and an average plan exclude 650 drugs from their formulary. And remember, that's an average number, so you've got this kind of crazy distribution, depending upon your plan mix. So in 2023, uncovered drugs resulted in patients walking away from the counter on an uncovered drug 60% of the time, me with that $2,000 eczema script, if you didn't have another option in hand. Same analogy applies to all these prior [ auths ] and step-therapy things in the system. The burden for that primarily falls to doctors and everybody in the office and actually the pharmacists, there's a ton of work. So in 2022, people found that on average, an HCP office or primary practice spends 14 hours a week just dealing with prior [ auth ], just prior [ auth ] and all the admin. It's an enormous time sync and burden. Even so, people walked away from the counter with prior [ auth ] scripts 40% of the time. So when drugs aren't covered, you just see this big swirling mess of communication between people, doctors, pharmacies, payers. People have to switch medication or they just end up not filling. So there's a ton of friction, but here's the big wow of what it means for the script system. There's just a ton of scripts that aren't filled. So 900 -- over 900 million scripts last year are just left at the counter. It's nearly 1 billion scripts, and that number is up over 56% since 2018. So it's certainly a problem for the health of people, right, consumers like us, but it's also just bad for the system in general. So all those scripts that aren't filled, that implies there's $90 billion of lost revenue for the system. And guess what? That's where GoodRx comes in. It's filling that friction and filling that gap, and we're helping Americans getting affordable medication in a convenient way. And we work with all the constituents in the value chain to really help this whole system work. Now I'm going to step back on our business and talk about it in a couple of different ways. So at the highest level, GoodRx does three things. The first is we take this brand that people know and love, and we use it to drive consumer traffic to retail. The second is we power this marketplace for generics and increasingly for brand drugs to create not only affordability, but also transparency, which obviously gets savings for people and helps out with all those lost scripts. And third is we reduce system friction, which at its highest level, helps adherence, helps the system and gets people on better medication and healthier lives as a result. Let me hit each of these really quickly. Beginning with demand. So GoodRx has invested in its brand over time. We think we've built our brand to be absolutely the leading place for people and affordable medication, I think the market would agree at this point on some of the measures of awareness and Net Promoter Scores. And that's an investment that we're certainly leveraging today that really can't be duplicated by most, if not all, of the people who kind of do what we do. Our studies show that our brand has more than 70% awareness with people, consumers and over 90% awareness with health care professionals. Pretty big numbers. And we use this brand to generate demand, people hook on to consumer direct advertising. But really, there's a big effort in where the magic happens is at the doctor's office that we have a bunch of unique ways that we tie ourselves and present ourselves with docs and through our partners in the channel, whether they're payers or retail. And we reinforce this brand with our product, our data and what we can do to talk to our consumers over time. And there's a real flywheel effect on not only how we generate demand, but how it works in the system. And what that does is pay off in usage and people. So in 2023, we had 350 million visits across our website now. Over 70% of those [ gains ] are organic. And if anybody knows consumer Internet and -- you know that over 70% organic traffic is a hell of a number. We're also the #1 rated prescription app for medication, 4.8 ratings on both iOS and Google Play stores. These numbers don't just show up by accident. It's that we work and what we do matters a lot to people. And if you think about our marketplace, it's got two components to it. The first is the core marketplace itself, which we're aggregating prescription demand through our contracts with retailers directly and a set of PBMs, getting people pricing benefit. The second is where we're actually working directly with brand pharma and partnering with them to run programs to get a benefit on brands and presenting them through the GoodRx offer. For those of you who are deep in pharma land, really the two ways that we do that are, number one, co-pay programs and special assistance programs with brands. We embed those into the GoodRx workflow. The second is for a set of brands where pharma actually wants to hit a better price point. We allow them to buy down the price of the drug on GoodRx, and that savings is presented to the consumer. It's sort of bringing consumerism to this crazy prescription world. And we're going to talk about both of those areas in a lot more detail. So an important contextual point for us is across the ecosystem of health care. We really do help people win on a whole bunch of levels. So consumers win when they work with GoodRx, obviously, because you save money. Health care professionals win because they get patients on the medication they need, and it reduces their administrative burden. Pharmacies win because they get new consumers, reduce friction at the counter and certainly keep people from walking away from those 900 million scripts that are sitting there that they can't afford. Pharmaceutical manufacturers win and can really win by getting people to not only take their brand medications, but create a way to make it really accessible for people. Payers win by having a healthier patient population. And PBMs win because they gain incremental volume through the marketplace beyond their covered lives. So we work, we save people's money, we reduce friction for the system. Now I recognize that at every single one of those people in the value chain are constituents, all line up together in health care. But in terms of GoodRx's position, we really do create ways to make each of these things better in the system. And as a technology business, our product and our tech stack sits on top of this to make things easy and presentable, not just for us as people, but again, across the whole system, from the doctor's office to the pharmacy counter to save. And there's an important point on how everything rolls and works, which is this business actually works quite a bit with refills, excuse me, that most of our consumers come back. And our technology around the GoodRx coupon, is really a pharmacy transaction routing. In our lingo, it's called a bin. And when somebody fills a script with GoodRx, the refills fill with GoodRx, too. And so what that means is over 80% of our scripts [ gearing ] are refills, which is a nice business model point that I think sometimes is -- I wouldn't say lost, but maybe it doesn't come through as well. So that's kind of the business broadly. And now I'll shift to our revenue and how we make money, which is a question when I came in that my mother, my friends, everybody said, "Hey, I know GoodRx, that's cute. How in the world do you make money?" So at its simplest level, the very nice thing about this company is that our revenue actually aligns with the value we create, which, again, isn't always the case in health care. So we have 3 big blocks of how we make money. The first is claims-based revenue, which shows up as prescription transactions revenue in our financial reporting. And what this is, is when somebody comes into GoodRx, they fill a drug, we make money. So if you think about 100 million script fills a year used with GoodRx and we make a little more than $5 a fill, that gets us to about $585 million of script-related revenue, again, related to the savings we create. The second revenue stream is subscriptions, which is GoodRx gold in terms of our product offering in our lingo. And again, this shows up in our financials as subscription transactions revenue. Here, these are for people who take multiple scripts a month usually. They pay a subscription fee for access to great savings, but also for convenience features like discounted telehealth, free home delivery and a dedicated concierge support team. So it's a flat revenue model. It's a $10 per month fee. In the coming year, it's about $85 million in revenue. So claims-based scripts, subscriptions. And then the third for brand drugs is we actually work directly with pharma across both access and media in the simplest way from a revenue standpoint to think about it is the number of brands we work with and the amount of money brands pay us. And so in the current year, we have approximately 150 brands today at about $750,000 per brand. As you might imagine, there's a curve around 750, but that's the average. And that leads to $110 million in revenue direct from our work with brands. When you add in $20 million from other, which is primarily telehealth, this aggregates up to our $80 million to $110 million of our expected revenue for the year. And again, I go through that not to give precise guidance, but more just to answer the broad question for people of, "Ooh, how do you make money?" But I think the most important point is again, "Man, that all aligns directly with the value we create." And so the business model revenue, nice. But what really drives these numbers are kind of the following: we serve 25 million people a year. It's a pretty sizable user base. And those 25 million people fill 100 million scripts, 100 million is a decent-sized number that leads up to $15 billion of savings, 25 million, 100 million scripts, $15 billion of savings. And over the life of the company, we think approximately $75 billion have been saved just via GoodRx. Stuff doesn't just happen by magic or accident, there's just real value at the core of this company. I have seen in my days a lot of companies, though, throw out big numbers, big user base, a lot of volume, but there's no real emotion when you actually talk to their customers. And now that I've been in the company for a year and it's kind of what I look for in businesses is actually is there's some real power behind what they do. And that is the special thing about this company. When you talk to people, the doctors, their real words show not only the value of what we do, but how much it matters. So we're going to throw a real quick video of real people, real doctors just briefly talking about GoodRx. [Presentation]

One minute little video. I'd encourage people if you actually want to hear the words, go in and read app reviews. They're telling -- we don't manage them at all. They're not all perfect, but there's real depth to how people see us and value us. These are the kind of things what a 74 consumer Net Promoter and an 84 health care professional Net Promoter Score actually look and sound like. I want to share a little bit of data and some highlights on our user base itself, the 25 million people we serve. There's, frankly, a cool point that about the company, which is we serve a pretty broad audience and condition mix. Over 90% of GoodRx consumers or users have insurance. 90% of people have insurance, back to how I started. Remember, this is a complement alongside and filling insurance, not something in substitution of. We're filling the gaps within the system that exists today. In the middle, you see we actually work across a broad range of conditions, which actually match pretty closely to the most common conditions in the U.S. And on the HCP side, you can see the top specialties, with over 750,000 doctors actually visiting our either site or app in a given year. And it's kind of a data-driven marketing guy across the years. There's two things that I want to call out to everybody coming off this page. The first is there is this broad service level that goes back to our brand value proposition and how important that is and how much that matters in terms of attracting people just to the platform itself. But then the second is actually diving really deep on where we add a lot of value because if you take somebody's insurance, their condition and their drug mix, you can get super precise about how valuable we are to them. And we're really starting to leverage this combination of breath and high value in a powerful way within our marketing team. So we're going to go into that in a little bit more detail, but we're kind of starting to cook with gas on both of these fronts. So when you do something valuable for a large amount of people, you grow. Over the last 5 years, this discount segment, for lack of a better term for it, has grown at a 10% CAGR, which is about 4x the overall rate of prescription unit growth. We, as GoodRx, are obviously the leader in the category. We're multiples beyond other people who do what we do. And we've certainly been growing. And over the last year, we've returned to growth and are certainly growing as we're making retail pharmacies our partners and incentivizing them to work with GoodRx. And this growth, I shared a couple of these stats earlier, but if you look at the trajectory, by 2023, there's 350 million site visits across the website and app. Over 70% of those are organic. On a claims basis, one can see the steady growth where if we exclude Kroger over a 5-year period of time, you can see the steady progression of claim growth. And obviously, the light bar of Kroger certainly had an inflection point 18 months to 24 months from now. It's probably a good time to say it's really nice, from the announcement today, to be partnered again with Kroger that we're, frankly, doing business hand-in-hand together again. Now those of you immediately are saying, "Okay, tell me how big that's going to be and what's going to happen?" And probably the right answer is, well, the little bar 2 years ago that was almost 20% of our claims and then this year, where there was almost no bar; it's probably going to be somewhere in the middle. It would be really nice for Kroger and we go hand-in-hand and frankly, just capture each of our fair share of prescription volume, which is kind of how we think about it. But we're really excited to have this agreement in place with Kroger about what we can do together. So -- and to think about our TAM when we think about growth and opportunity, there's 100 million scripts. It's a big number, but it's still only 2% of the scripts today. Obviously, not all of those scripts are addressable. But I think about -- we're still only about 10% penetrated with the directly addressable scripts. If you think about the discount card segment that exists today, capturing 5% to 10% share of insurance scripts via ISP or its various forms and a very modest share of scripts that go and filled at the pharmacy counter, you get to still us sitting somewhere around 10% penetrated with just that addressable opportunity, which if you translate that into dollars, it's about a $6 billion SAM or a directly addressable revenue market. That number goes up to $13 billion when you wrap in brand Pharma. So the big market stats on Pharma. Pharma spends $19 billion commercializing their drugs. In the pharma section, the rebate number is astounding. We're -- I'm not even including that here, but just $19 billion commercializing their drugs, we think about 35% of that is immediately addressable by what we're doing today, which is another $7 billion, which wraps up and says we're about 2% penetrated. And the biggest thing we've all seen these TAM mass, where and how can you go, I think the most important thing, particularly related to brands is that what we're doing drives scripts, right? The most important thing, all these advertising dollars theoretically are designed to get people on medication. We're one of the few places, I think, in the whole pharma ecosystem where we're actually built to just drive scripts. We're not throwing content out there and having a gaggle of low CPM eyeballs that we're presenting to people, are actually helping the brands drive scripts and drive results. So we think there's upside. We think there's penetration into, frankly, both of these TAMs. And so market context, now I'm going to shift quickly into what have we been doing, what have we been working on over the last year. About a year ago, we, as a team, kind of honed in on a couple of things designed to do three things. The first was to get our network stable, retail have GoodRx presented everywhere in good relation to retail. Now that's forever work, but I think I can say check. We got to keep at it, but big effort a year ago. Second was build short-term momentum in the business and actually set the stage for long-term growth. And so there were five things that we've really been focused on. The first is strengthening our value prop for constituents across health care with a real focus on retail. Second priority was scaling this pharma manufacturer solutions business or GoodRx for brands. Third was actually really working our growing user base and deepening engagement. The fourth is really reducing friction in the system, which is product and tech, but building an end-to-end experience, not just on GoodRx, but starting when you get a script in your hand and delivering it all the way through the counter. And finally, fifth thing was building a winning team and culture and actually putting a lot of time into the team. I'll hit on each of these, but you're going to get a lot more depth on each one of these from my colleagues and teammates to follow. The health care value prop, focus on retail, I think we've now got a business model that works both with retail and our PBMs. It's compelling to consumers, and it's working. And we think we've laid the foundation not just for our network to be there, but to actually have it work and work in partnership with retail for the years to come. Scaling pharma manufacturer solutions, solutions for brands, we built a beachhead with brands, but I think we're still in the very early days of what we can do here. I see a bunch of runway here as we not only expand to more brands, but really bring affordability to brand drugs. Deepen our relationship with our 25 million users and hopefully, grow them to maybe 35 million plus. We've got this awesome brand that's known to both people and doctors, and there's some real unlock here as we lean into particularly how and where we work with docs. We got some cool opportunities for how we do this, and we'll talk about that more in the marketing section. Building a frictionless end-to-end experience. This is a technology business. And you're going to hear a couple of areas where our product and our tech stack actually not just creates an elegant experience for us as people, but actually reduces a lot of friction. And in the digital health world, there's some crazy stuff out there, and people are often left behind. But we're really leaning into mobile, into how we use data productively and frankly, how our tech extends through APIs into the participants in the system that are now going to not only create a great experience for people, but I think for you as an investor, as we connect retail and brands more effectively, these tech assets that we build are going to become more and more powerful in the years to come. Finally, team, culture. I'm super proud of the team that's and are in place. I got asked earlier, "How do you feel about the team?" And I said I feel great about the team. And I don't say that just because I'm standing on stage here around it. I think this is actually a terrific executive team and a great group of people at GoodRx. You're going to see and hear from both a combination of health care and consumer technology that's actually kind of hard to replicate and there's a content depth in this team and a desire to win that I feel great about. And so you're going to hear from a handful of people today that do represent the whole organization, and I think you're going to be impressed. All right. I'm going to quickly show how these things wrap to our financial targets that Karsten will go into in a heck of a lot more detail. All right. Since I've been here for a year, everybody has been waiting, "Hey, when are you going to unveil growth targets?" And today will be the day. We're targeting by 2026 over $1 billion in revenue. And at that $1 billion of revenue, we'll -- the profit profile of the company should absolutely be able to deliver 35% plus. In terms of segment growth, our prescription marketplace over a 3-year period, we think that growth rate is going to fall between 4% and 9% with a bunch of unmodeled opportunities that might push that higher. But again, in terms of the zone of where we see the marketplace, it's kind of how we think it would fall. For manufacturer solutions, it's going to grow faster than the core marketplace. We're targeting a 20% growth rate over the next 3 years that, again, as we gain traction, there are things that could absolutely push that up. When you blend those two together, you get an aggregate profile of 6% to 12% for the business, that is with possible things that could push us certainly to the high end, maybe beyond it. But in terms of just goalpost to think about over a 3-year period, that's kind of the range that we'd want people's heads. And this is a marketplace. So on a quarter-to-quarter basis, right, the growth numbers may bounce around. This isn't a subscription software, where you're pretty predictive on how that lands. So that may flow a little bit. But over a 3-year period, with what we have underway, those are absolutely the goalpost that as a team we're comfortable putting it out into the world as a commitment. In each section today, we're going to go into a little bit in the assumptions about what's in and what's not. And then Karsten will hit some detail on it. All right. Before I bring up my colleague, Mike, just as a quick wrap, it's a good time to be here. The company, as people have told me, has had -- there's -- it gets phrased as, "Hey, what's the story? Or where are you?" And there's a value prop that we're delivering that matters. I think the trends that support that value prop are probably increasing. And there's real momentum in what we're doing, not just operationally, but you're seeing it show up in the numbers. And a nice thing for me objectively is the things we're doing actually give you the right to grow longer term through other things. And so it's a good moment in the company that we're focused on delivering what's in front of us that hopefully hits for not only a couple of quarters, but honestly, for years to come. So with that, I'm going to bring my colleague, Mike Walsh, who is the President and EVP of our Prescription Marketplace. So Mike is going to talk you through a deep dive on something that's been through an evolution, certainly in our shift to retail, what we've started to do with integrated savings, but frankly, just shifting this business and kind of how we sit relative to retail. Mike has been one of the big architects on the shift. He is a smart, driven guy with a ton of health care expertise. And I think as investors, you'd appreciate that he's a certainly analytical, commercial, hard-charging person with a big will to win. You're going to enjoy getting to know him. So Mike, why don't you come on up?

All right. Thank you, Scott, and hello, everyone. I'm thrilled to be here today to talk about our prescription marketplace. By way of background, I've spent the last decade working in health care, health care technology, specifically around pharmacy, both as a consultant and as an operator. Prior to GoodRx, I worked on Walmart’s Health & Wellness business, helping to build and execute their pharmacy strategy. Joining GoodRx was an easy decision for me because GoodRx is a technology-forward company that's focused on helping consumers save money on prescription, a mission that's shared by both Walmart and all of our retail pharmacy partners. Over the last 3.5 years, I've primarily been focused on how we deliver more value to retail pharmacy partners, critical partners of ours in our marketplace. I'm incredibly proud of the work that we've delivered, particularly over the past 2 years to reorient our marketplace model. I'm excited to talk through the results with you today and some of the future opportunities that we're going to pursue. Now let's take an in-depth look at our prescription marketplace or marketplace for short. As a reminder, this offering delivers discounted generic prescription pricing options to consumers. We obtained that pricing through two primary methods. The first one is direct contracts with pharmacies, and the second one is contracts with PBMs who then provide pricing at those pharmacy. We'll get into a lot more detail on how this works later on. First, let me orient you on how we go to market. So we go to market in two primary ways. The first one is direct-to-consumer, and the second one is B2B. Within direct-to-consumer, the first product that we have is kind of our core claims revenue. This is the product that you're most familiar with. Someone comes on to our platform, enters into drug, enters their location, generates a coupon, takes it to the pharmacy and redeems and fills their prescription. In 2024, this business is projected to do about 80% of our total marketplace revenue. The next product that we have in direct-to-consumer is our subscription offering, GoodRx Gold. GoodRx Gold is an extension of our core product, offering deeper discounts and a few other health care benefits. In 2024, this is projected to do about 15% of our total marketplace revenue. And then lastly, in our B2B go-to-market strategy, we have our integrated savings program. As a reminder for all of you, integrated savings is simply taking our core pricing and embedding it in commercially funded benefit plans, so that the consumer gets the lower price of their insurance and GoodRx. In 2024, this offering is projected to do about 5% of our total marketplace revenue. Before I get into how our marketplace operates, let's take a quick look at a video that demonstrates how our core product works. [Presentation]

All right. So as you can see, we strive to create a simple and easy-to-use value-add experience for our consumers to drive repeat use. Now let me revisit what Scott talked about earlier in terms of how we make money. In our marketplace, we make money in two principal ways: Claims-based revenue and subscription revenue. I'm going to talk about claims-based revenue now and walk through a detailed example because I know most of you are probably wondering how do all these unit economics actually work? So let's go through it. Please keep in mind that this is meant to be an illustrative example of how our unit economics are derived and should not be interpretive as indicative of our actual pricing or economics. In this case, GoodRx negotiated a rate for Augmentin, a form of amoxicillin, directly with the pharmacy. The consumer, in this case, does not have insurance coverage for this drug. So if he or she showed up at the pharmacy, the consumer would have paid the retail price of $65. The retail price or usual and customary price tends to be quite high because negotiations between pharmacies and payers for medications vary quite a bit. Think about those emergency room bills that you might see, which have a multiple thousand dollar price tag on them, but your insurance has negotiated them down to a few hundred dollars. That same phenomenon exists in pharmacy. So instead of that $65, they'll pay the negotiated rate between GoodRx in the pharmacy of $20, a $45 discount. So how does the pharmacy make money? Well, they'll take that $20 from the patient. Then they'll [ net out ] the cost that they paid the wholesaler to purchase and distribute the drug. In this example, let's say that's 7$. Then the pharmacy net out about $5, which would be considered the patient acquisition cost that they pay GoodRx for driving the consumer into the store. Their margin on this transaction would be about $8. GoodRx's revenue in this example is the $5 that's the patient acquisition cost. This is an example of a direct contract. In a PBM model, a portion of that $5 would have also flown to the PBM. So let's zoom out and think a little more broadly. Why would retail pharmacies want to work with GoodRx? Over the years, it's really narrowed in on two key reasons: The first one is consumer acquisition and reduced abandonment. As Scott mentioned earlier, over 900 million prescriptions are left at the counter every year. GoodRx is a platform that can drive demand into stores and bring in patients that have affordability solutions that allow them to fill prescriptions. It reduces walk away, reduces abandonment and makes it easy for the pharmacy to treat customers. The second reason is front-of-store purchases. So as we're driving that traffic into stores, people are buying a lot more than just things at the pharmacy, OTC, general merchandise, grocery. Through internal analysis that we've done reviewing external reports, we see on average, consumers are spending about $25 median spend. So they're not just going in for prescriptions, they're going in and filling up that basket with other items. And so going back to what Scott said earlier, it's not just the pharmacy that wins here. We really feel like we've created a strong powerful marketplace that does drive value across the ecosystem. I want to make it clear that our mission is to focus on delivering savings for consumers. And you'll see a lot of different stakeholders on this page, and Scott kind of mentioned it earlier. Sometimes, not everybody gets along in this channel. But the way that we think about it is we are willing to partner with anybody on this page if they are able to deliver savings for consumers. So as we go through this presentation today, you'll see us working in a lot of different ways with a lot of folks on this page, but the real mission here is to drive increased savings for consumers and drive our mission. Okay. Let's pivot a little bit and talk about how we're planning on growing our prescription marketplace. So we're focused on 5 key areas to grow. The first one, strengthening pharmacy relationships. Next, expanding B2B via our integrated savings program; third, enhancing our GoodRx Gold value proposition; fourth, delivering pricing automation; and lastly, creating meaningful new pharmacy products. We talked about a few of them earlier. There's been a proliferation of noncovered drugs and a slowing [ OPEC ] in-store experience. Now let's double-click into how we're going to work with pharmacies. The retail pharmacy market and industry reimbursement dynamics have continued to evolve. We experienced this firsthand in 2022 when Kroger reduced their prescription volume with us. This experience with Kroger and a lot of the other feedback that we got with some of our retail partners led us to a critical choice for our business. Do we continue to march on with the multi PBM contracting model that had made us successful to date or do we evolve our contracting model to evolve with the greater market and get in line with where the industry is going? And we made a very conscious choice to evolve. And so as part of this changing model, we are really focused on 3 key areas with how we partner with retail pharmacies. The first one is having a flexible contracting approach. Retail pharmacies have different needs and business goals. And the last thing you want to do here is implement a one-size-fits-all model. They're all different. And so being flexible and creative in how you contract is critical. The second one is making sure pharmacies have sustainable margins and maintain profitability. If we're doing this correctly, pharmacies are growing in a profitable way, GoodRx revenue is growing and consumers are continuing to save. And I can report that through most of the deals that we've done to date, all three of those things are happening. And then lastly, long-term agreements. We want to make sure that we have a long-term sustainable network that offers broad choice for consumers. And signing multiyear agreements is a key tenet to making that a reality. So let's double click in and talk about our contracting approach. So in our old model, the way our network worked was the following: GoodRx would contract with PBMs, who then had pricing at particular pharmacy. So there'd be multiple PBMs with pricing at one particular pharmacy. And as I mentioned earlier, this worked for a long time for us and really made us successful. However, due to the industry dynamics that I mentioned, we needed to change. And in our new model, there's really choices for the pharmacy on how they want to work with us. So in some instances, we have pharmacy partners that have relationships with PBMs and their funded business, and they want to keep the multi PBM model with us. And that's fine. That's what they prefer. We're good at that. However, on the other end of the spectrum, we have pharmacy partners that want to do direct contracting, meaning 100% of the volume is between GoodRx and the pharmacy directly. So very different. And then, of course, we have some in the middle as well that prefer what we call a hybrid arrangement, which means they maintain some of their PBM networks but also have a direct agreement with GoodRx maybe on a few different therapeutic areas. So as I mentioned earlier, this is not a one-size-fits-all model. It really depends on the needs of the retail pharmacy and what business goals they're trying to accomplish. So let's talk about some of the benefits of this new model. They're really apparent when you look at some of the numbers from Q1 of '24. Our analysis shows that on average, directly contracted claims have higher margin for the retailer. We estimate that direct contracting claims had over 90% higher margin than nondirect claims in Q1 of '24. And let's talk about GoodRx fees. Even as pharmacies make higher margin, we expect our fee per claim trajectory to remain consistent over the following quarters. And most importantly, in all of this, consumers are still saving and our value proposition holds. So today, we have direct contracts with 7 of our top 10 pharmacy partners. And when I say direct contract, again, it could mean that we're 100% direct with them or we have a hybrid arrangement, where a portion of claims goes direct. And through all that contracting, over 20% now of our total claims are running through direct contract agreements, which is up several fold from a few years ago. Scott mentioned earlier that Kroger recently signed an agreement with us for substantially better pricing, designed for mutual growth. And I think this agreement is a really good proof point that this model that I'm talking about is working. So we've talked a lot about strategy and concepts and all that, let's go through some real-world examples and bring this strategy to life. So first one. We worked with a national chain pharmacy who wanted to do a hybrid arrangement with GoodRx. They had a bunch of relationships in their funded book of business that they wanted to maintain in the GoodRx book. However, they wanted to grow in a profitable way. So what we did was over here, we started with an initial pilot, carved out a bunch of different therapeutic areas and tried to show them and demonstrate to them that we could grow claims for them in a profitable way. And as you can see from the slide, it worked because we expanded this relationship with them over time and added more and more drugs to this arrangement. And so I think the results speak for themselves here. Ultimately, when we compare the pilot period against the second half of '23, GoodRx aggregate revenue grew by over [ 80% ]. For the pharmacy on those direct claims, their estimated pharmacy margin dollars doubled. And then lastly, always keeping the consumer in mind, the consumer saw about a 20% decrease in the average consumer price at that pharmacy. So pretty powerful results. Pretty meaningful to the pharmacy. And again, we're able to do this while growing our business. Let's look at another example, a little bit different. Regional pharmacy had different needs, wanted to do a fully direct contract, 100% of volume. And really, what they're interested in is, "Hey, I want to structure a deal where we're both winning when we're growing together." So they want to do [ align ] incentives. So we hadn't done something like this before and had to get creative on this deal. And as we rolled it out, I think the results speak for themselves. We're projected for this particular pharmacy to improve their annual gross margin by about $27 million. And for us, we're going to grow our revenue by an estimated $6.5 million on an annualized basis. Now I know we work with large numbers here in pharmacy, but $27 million in gross margin for anybody in this channel is a big number. And I think these results and the results I showed on the prior page are proving that we can really deliver incremental value to our pharmacy partners. So let's take a step back. This is a big change for us. 2 years ago, we wouldn't be up here talking about any of this. But we really feel like this is the right change and it's been long overdue. I want to make it clear that this is not a one-size-fits-all model. It's going to be different, based on the retail partner. But we think this is the right model to execute on, going forward, to build that sustainable base in our network to power the rest of our business. All right. Let's change gears a bit. There's been a lot of noise in the industry on acquisition cost-based contracting. What is this? What does it mean for GoodRx? What does this mean for retail pharmacies? We get 1 million questions on this. So I'd like to take some time and address it here. And let me start by saying this. Acquisition cost-based contracting is something that GoodRx supports, and we've actually been administering it with retail partners since 2021. These pricing structures, as you see here, have fixed base costs, i.e., the pharmacies drug acquisition cost, but they then have variable components around pharmacy fees and patient acquisition fees to GoodRx embedded into the final patient price. Because there may be variable inputs in the total price calculation, GoodRx still has the ability to create pricing variation to adapt to market forces and offer dynamic pricing to consumers. Let me be clear to everyone, price variability can still exist in acquisition cost-based contracting. Let me walk you through an illustrative example of how acquisition cost-based pricing and traditional drug pricing work in practice. Let's take that same drug we talked about a few minutes ago, generic Augmentin. Again, the value shown here are not necessarily indicative of our actual pricing or economics. And the acquisition cost-based model, let's say, the cost of the pharmacy to acquire this drug is 7$. That is the baseline fixed cost. Then, the pharmacy adds a fee on top to represent their operating cost and desired margin. In this example, $8. Then GoodRx adds a $5 patient acquisition fee on top to reimburse us for sending that patient to the pharmacy. These 2 fees that I just talked about can be variable, meaning that sometimes they could be higher or lower, but would typically average out to a negotiated aggregate rate. Altogether, this adds up to $20 in our example. In the traditional model, pharmacies negotiated off a benchmark called AWP or average wholesale price. This is generally a very high price that can be disconnected from the actual cost -- the actual cost for the pharmacy to acquire the drug. In the case of the example of generic Augmentin, this price is $101. Then there was a negotiated discount off of that price in this example, 85%. And that leaves you with about 15% that is the pharmacy reimbursement. This would cover the cost to acquire the drug as well as embed pharmacy operating costs and desired margin. Then the GoodRx's patient acquisition fee is added on top of that. And in our example, you get back to that $20 price point. The discount rate, pharmacy reimbursement and GoodRx patient acquisition fee here are all variable. So let's look at our app for pricing for Augmentin. Can you tell which prices are acquisition cost base versus priced traditionally? Anyone? Is there a [indiscernible]. On this page, 3 are priced via acquisition cost and 4 are priced traditionally. As you can see, pricing remains dynamic across retailers because price remains a function of several different factors. Today, approximately 40% of our claims come from acquisition cost-based pricing. So to summarize. We believe acquisition cost-based pricing is good for GoodRx. Our value proposition of offering consumers prescription savings remains the same. Our revenue equation and how we make money remains the same. What's different is that we are now able to more closely align on economics with retail pharmacies and help better control their margins to manage their profitability. And remember, we've been supporting this model since 2021 and now have over 40% of our claims running through this type of pricing. This is not new for us. All right. To summarize our work with retail pharmacies. We made a conscious and clear choice to change the way we contract our network. As a result, we feel that we've built a strong, sustainable network, and we'll continue to build it as we continue to recontract. Acquisition cost-based contracting is a key tenet of our contracting strategy. We're really pleased with the results we have so far, but we also recognize that we still have a lot of work to do. Okay. Let's move on to B2B. Our current B2B offering is called Integrated Savings or ISP for short. This is a product that we've launched in the last -- over the last year. And as a reminder, it's embedding the GoodRx pricing into an insured benefit so that the consumer gets the best price between the 2. And so we work with payers and PBMs with the goal of the following. One is to directly reduce covered generic prescription prices for their eligible commercially-insured members; and two, it's to help the lower plan costs. So we always get a lot of questions. What is ISP, how did this thing come to market, who had this crazy idea, how did market forces lead us to this point? And I'd really say there were 2 driving market forces that brought ISP to life. The first one is something that Scott touched on earlier. Benefit design trends are putting more of the burden of purchasing prescriptions on to the consumer. And the second one I'd highlight is the power of the GoodRx brand. So now let me kind of connect these 2 to show you how it came to life. So we heard this a lot from a lot of people in the industry, employees on commercially insured plans, were going to the pharmacy, using GoodRx, realizing that it was cheaper than our insurance plan, going back to their HR departments, going back to benefit consultants and complaining; why is GoodRx better than my insurance. This feedback made its way to our PBM partners who then made its way to us. And we then came up with this idea of integrated savings. So that's kind of how the product came to life. We are really excited about this product. We think it generates incremental demand for us and reaches consumers that we might not have been able to reach otherwise. And to date, through some internal analysis, we're seeing really low cannibalization rates between our B2B offering and our direct-to-consumer business. So we're really excited about where this is going. So a common question we get all the time. How does ISP work? So the thing I want you to keep in mind is that this is a seamless and automated experience. And I'm going to kind of conduct a little exercise here to kind of show you how seamless this could be. So if anybody has and wants to do this with me, please pull out your insurance card if you have one. You don't have to, but if you want to -- no big deal. So basically, I want you to imagine that you're walking into a pharmacy to fill a prescription. You walk up to the pharmacy counter, hand your insurance card to the pharmacy staff member, the pharmacy staff member enters your insurance information into the point-of-sale system. Once that information is entered, assuming that your plan is participating in ISP, a price check is then run in the background. And it looks at the insured price versus the GoodRx price and in a couple of milliseconds, returns the lower of those 2 prices and applies it to your prescription fill. And you as the consumer stand there and do absolutely nothing different than what you would normally do if you were walking in to fill an insurance script. So the real takeaway here is there's no change in consumer behavior whatsoever. If your plan is participating, all you do is show up with the same insurance card that you've used for the past however many years. Okay. Let's now break down our current addressable market for ISP. The best way to think about this, there's a lot of pharmacy transactions, approximately $4.7 billion unadjusted transactions. There's then several factors, which I'll get on -- talk about more on the next page that kind of dictate what are the number of prescriptions that are eligible for us to win on this price comparison. And so for this year, based on current market dynamics, we're at about $500 million to $600 million annualized eligible Rxs that GoodRx can win on in the program today. And so today, we're converting at a low single-digit win rate, and I'll talk more about that in the next page. And that yields itself out to about mid- to high single-digit Rxs in '24. So that's the way to think about the flow of this business. Now let's take a look at opportunities to expand and grow. So within ISP, we see 4 main growth levers. The first one is PBM coverage. Although we've sold into a lot of big plans today, we don't have every PBM customer signed up. And so we are still out there in the market talking to PBMs, educating them on the value of the program and continuing to sell. The next 2 are kind of embedded together. We've sold into some large partners. However, they've only onboarded a certain number of plans and payers to the program. So we work with our PBM partners on educating those plans and payers on the benefit of this program to join. And then the next one we're focused on with our existing PBM partners, and I mentioned it earlier, is win rate. We're at low to mid-single digits today, and we believe through more focus on technology work and aligning pricing strategies, we can boost our win rate with our PBM partners going forward. Then the last one, I'll talk about, is pharmacies. So the vast majority of pharmacies are in network for this program today, but not all of them. And as we work to implement and execute our hybrid contracting model, we think we can close that gap in the near future. So if we execute against these growth levers that I've outlined here, we believe that we can open up about $200 million of incremental growth revenue in the longer term for the Marketplace business. So let's take a step back on ISP. This is a new product for us. It's been up and running for about 18 months. We're really excited about the progress to date because we've created a really seamless, easy-to-use experience with no consumer behavior change. We feel like we've identified all the right growth levers to pursue and have a good, planned road map to go out and execute. Okay. Let's change gears and talk about GoodRx Gold. As a reminder, GoodRx Gold is our subscription offering, whose value proposition is offering consumers better discounts on their prescriptions and a few other healthcare benefits, mainly discounted telehealth visits, free home delivery, as Scott mentioned earlier, a concierge service to help answer healthcare questions. Consumers for Gold tend to be people filling multiple prescriptions per month. who really want to get value from saving on their aggregate basket. We really see 2 areas of focus to invest in going forward to make Gold a better offering. The first one is pharmacy network expansion. So we have most pharmacies in network today, but not all of them. And as we roll out and execute our hybrid contracting approach, we think Gold inclusion will be a fast follow to getting that core agreement signed. And by way of example, we actually worked with Publix in Q4 of last year to get our core agreement signed, and then they joined Gold this past April. So once you get that base level economics right in the free product, they'll come join the subscription one after. The other area we're focused on is value prop expansion. Gold, again, is a logged-in experience where we have a consumer's credit card, and we feel like there's a lot of runway to offer a more seamless, frictionless experience for consumers that combines telehealth, home delivery and other services to offer them more distinct value. So to summarize, we believe Gold delivers great value to consumers. We're going to continue to invest in this product going forward. Now turning to our pricing technology. This is really the core of what we do. And I truly believe this is a key differentiator for GoodRx. Nitin is going to talk about this in a lot more detail later on, so I'm just going to kind of hit the high notes here. The first focus area for us in pricing is really foundational. We've shifted our contracting model to be way more direct with retail. And as a result, we need to shift our pricing capabilities to match that strategic change. So really, we're focused on investing and optimizing, how we administer these retail agreements and how we optimize price points at each pharmacy. The second thing we're focused on, and again, Nitin will hit this in a lot more detail, is personalized pricing, delivering unique pricing offers for a consumer based on who they are. And we believe this has a lot of upside and it's going to unlock a lot of value for the future, and we're really excited about the work. So as I outlined earlier, we have 5 areas that we're focused on for growth. I've talked about 4 of them: strengthening our pharmacy network, expanding B2B, enhancing GoodRx Gold and delivering price and automation. Now let's talk about the last one. The last thing we'll focus on here is not embedded in any financial projections that we've shown here today and is more focused on investing in future areas where we see meaningful challenges that we believe GoodRx can solve in the pharmacy ecosystem. So what are those challenges? First, too many drugs aren't covered or have benefit designs that are challenging for the consumer. On new prescriptions, we estimate that consumers walk away from non-covered drugs over 80 million times a year. When you think about how many refills may also be missed because the first fills that made, we estimate that number jumps into the hundreds of millions. We already offer our integrated savings program, but that's for generic drugs that are covered by insurance. We plan to expand this use case to non-covered drugs to improve the ability for members to get access. We think that this is a huge opportunity to uniquely leverage both sides of our business, prescription marketplace and manufacturer solutions to create distinct consumer value. Second, we plan to invest in the pharmacy experience. The pharmacy experience is still too slow and opaque for consumers. Our existing solutions have been designed to solve some of these problems for cash-paying consumers. We still don't bring transparency to a consumer's insurance price, drug inventory availability or the ability to have an e-commerce experience to reduce friction at the point of sale. Think prepayment: buy now, pay later. We are exploring some of these problem areas and help to launch products and services aimed at solving these issues in the future. Before I turn it over to manufacturer solutions, I want to contextualize our plan to grow our RX marketplace. First, we have a tremendous core offering with strong unit economics with over 80% of monthly claims from repeat use in a leading position in the prescription discount market. We believe there is significant SAM to capture, and we intend to continue to focus on growth. To support this, we must continue to work closely with our retail pharmacy partners to ensure that we have a strong network that helps deliver profitable prescription acquisition and reduces patient abandonment. Furthermore, we are working on supporting this growth through investments into pricing automation and enhancing GoodRx Gold. On top of this, we believe we have a promising B2B growth engine with our integrated savings program, which we believe is poised to drive significant growth into our marketplace over time. Taken together, we are targeting a 3-year CAGR of approximately 4% to 9% for the prescription marketplace. This assumes 3% to 4% market growth and that the initiatives, I just discussed, help us steadily increase share. Above and beyond these tactics, we see opportunities to drive even more growth by solving bigger problems in the pharmacy ecosystem. In particular, through ISP use case expansion, innovating to improve the pharmacy experience and enhancing our pricing capabilities. Each of these could drive differential growth beyond the 4% to 9% anticipated base case growth. And finally, as you see on the page, Kroger. As I mentioned, we just signed a new agreement with them with substantially better pricing that we believe is designed to grow our businesses together. Now that we signed our agreement, we're switching our focus to execution mode and delivering on that agreement to make sure we're bringing value to Kroger and to consumers. We believe there's significant runway in our RX marketplace, and we're looking forward to executing on the growth plans that I just outlined. Now I'm pleased to welcome Aaron Crittenden, our SVP of New Business; and Divya Iyer our SVP of Manufacturer Solutions to the stage to discuss our manufacturer solutions offering. This is great because Aaron and Divya have both been at the ground floor; building this effort from an idea to an over $100 million in expected revenue this year. Aaron is a brilliant guy with incredibly quick mind who understands all the nuances of drug pricing and how brand pharma can reach more patients, more affordably and with less friction. Divya is super strategic with a deep understanding of pharma solutions and has really led our efforts to sharpen our focus on the brands that we know we can deliver value to. Thank you, everybody.

Thanks, Mike. I'm Aaron Crittenden and been here at GoodRx for 4 years. I've got a deep background in all things pharma. So I spent 15 years, my entire career working in and around pharma, primarily access stuff, have known GoodRx for a long time, the founders, early employees. When they called and said, hey, we want to try to get into the brand space, work with pharma, I said, I'm all in. So joined, first thing I did was hire Divya, the best decision I made. I can't be happier to present with you. So Divya take it away.

Thanks, Aaron. Hi, everybody. I'm Divya Iyer, and I'm looking forward to speaking to you today about our strategy and plans for Pharma Manufacturer Solutions. I've been at the company 3.5 years and I'm one of the founding members of the Pharma Solutions team. I'm a pharmacist by training and began my career at Merck, not too far from here, in Rahway, New Jersey. Through my experience there, at Deloitte, doing strategy consulting for Big Pharma and most recently at McKesson, I have built experience across every phase of the pharma drug life cycle. So having built a deep understanding of everything it takes to bring a drug to market, I'm deeply passionate about helping patients actually get access to those medications and stay adherent and ultimately improve their health outcomes. And GoodRx's commitment to this machine and our proven ability to drive impact and access and affordability drew me to this team and company. So let's dive in.

All right. So we're going to dive into the solutions, and we're going to figure out what it is that we do with brands. So when we started, Divya and I sat down, we chatted and we said, look, what is incredibly obvious is 20% of searches are for brand drugs. And when you look at the marketplace, everything Mike just walked through, we created an amazing ecosystem function, features, all things tied together for generics, and it works really, really well. When you look at that on the brand side, things are slightly different. And so as we started to unpack that, what -- the key takeaway is the goal is the exact same, right? We're trying to deliver savings to consumers, whether it's brand or generics. The go-to-market of that is slightly different. On the generic side, we work with PBMs, we work with retail. We can create those amazing savings. On the brand side, we partner with pharma. That is the key difference between the 2. But at the end of the day, the goal is the same, the solutions, are the same. I'm going off script, so the slides might be a little bit off. I tried going with script yesterday and it went horrible. Okay. So what we do want to make sure is crystal clear. When we looked at this, we didn't just realize, okay, pharma spends a bunch of money, as Scott mentioned, on advertising and TV. And hey, we've got people searching for, we should just go take that money, right? That was not the goal at all. . The goal was it's the same problem. Consumers come, they search for a drug, it's brand. We have to bring affordability to them. The good news in what that means tangibly is all of the assets that GoodRx has spent the last 12 years building; whether that is the technology, the relationships, the marketing, the awareness, all of that investment accrues both to the brand side as well as the core prescription side. That will also continue to accrue into the future. So again, same business, 2 different sides of the same coin. And that's what we're going to talk you about today.

Great. Let's take a moment to frame the segments of the prescription market. While generic medications make up the majority of the prescription market fills, brand drugs actually contribute more to the cost of these prescription fills. So generic medications make up 90% of fills and brands make up 10% of fills. But if you look at cost, it's kind of the other way around. Brand medications contribute to 85% of overall prescription drug costs. They're just more expensive. Moving on to the overall pharma market. Net pharma sales in the U.S. are projected to grow at a rate of 2% to 5% CAGR through 2028. This growth can be attributed to innovative specialty areas like immunology and oncology and now more recently, the endocrine space due to the GLP-1s. Along with this healthy growth rate, there are a few other dynamics at play. First, there's increased scrutiny around drug pricing and reimbursement as evidenced by governmental actions. But even when pharma companies drop their list price, it doesn't always make its way down to the patient in the form of a lower out-of-pocket cost since as we know, patient costs are largely determined by their PBM. Second, there is reimbursement in just channel economic pressure from payers and PBMs in the form of rebates and other fees and so on. Given these dynamics, we've actually seen biosimilars enter the market with some interesting access strategies, right, like dual price points, offering direct to cash -- direct-to-consumer cash pay discount and so on. We will talk more about how we partner with biosimilars later in the session. But overall, given the industry dynamics, Pharma is focused on managing their gross to net, being extremely judicious about how they're spending their commercialization dollars, and is looking for alternative solutions to these problems to help patients get on therapy. So as an investor, this is important. This is where our opportunity lies. We help pharma overcome these challenges and get patients on therapy. Our solutions are good for the patient. They're good for the pharma companies that we work with, and they're even good for the pharmacy as we'll talk about later. So let's put some numbers behind this. It's estimated that pharma companies spend over $200 billion in research and development every year. I know, I worked at Merck and R&D and then another $300 billion plus on rebates and access dollars in the U.S. That's $0.5 trillion, they're spending, just to bring the drug to market and getting payers to cover them. Then once they're in the market, we estimate that pharma spends another $19 billion to commercialize them with patients and HCPs, health care professionals. So this would include spending in areas like TV, digital advertising, HCP programs and so on. Now with all of that spend, pharma is clearly motivated to get patients to fill their drug. Yet despite the significant investment, it's estimated that almost 1/3 of brand drug prescriptions are left unfilled at the pharmacy counter. A key reason for this is cost and affordability. In some categories, the challenges are much more drastic. So let's take GLP-1s, for example, big category, right? But less than half of prescriptions ended up getting filled. This is where we bring the GoodRx value proposition to pharma companies. We help patients access their brand drugs by making them more affordable. We can help convert more users at the point of dispensing.

So if any of you guys have talked to retail pharmacies, you understand that they make pretty good margin on generics, it's really tight on brands, right? When you look at that on the macro estimated 2% to 5% gross margins on their brand filled through insurance, you take a category like GLP-1s, they're losing money. It's rough out there. As Mike mentioned, we have a big strategic focus on ensuring that retail is a winner in all of our business. On the brand side, we hit that one hard. On our direct-to-brand consumer transactions, we can deliver 5% to 10% gross margins for pharmacies, a big win, which is also helping us create tailwinds as we go and scale these solutions.

So what makes us unique in this space. We believe it's the trust that we've built with a large, high-intent, high-quality audience who recognizes the value that we provide and prescription affordability, a key differentiator is actually where, in the patient and HCP journey, we play a role. And that role places us in a unique position to help drive them across that last mile -- not literally drive them, but help usher them across that last mile and convert them over to a prescription fill. So let's start with traffic. In 2023, we had approximately 43 million annual sessions towards our brand drug price pages. So people coming to our brand drug price pages to figure out how much a drug costs. And as Scott mentioned in his session, 70% of that traffic was organic. And that number was up 30% year-over-year. So very healthy growth rate in how people are just organically coming to our website. Generally speaking, our users are extremely high intent. 85% of them are estimated to have a script in hand. And we estimate that 60% of those users, who used us for our brand drug savings programs, would have skipped or delayed filling their prescription, had it not been for GoodRx. We help them fill. We have pharma affordability and access programs. They generally tend to have very low consumer awareness. In fact, 65% of our users found out about a manufacturer savings program through GoodRx. That's pretty powerful. And on the HCP side, we've got 750,000 unique healthcare professionals who visited GoodRx in 2023, and they're most commonly using us during working hours, when they're most likely with their patients in the office. So these HCPs are using GoodRx to easily find affordability and access resources to help their patients get on therapy. So our price page, the page that you get to, on the site, to look up the price of a drug, that is our key asset, the one where we had 43 million annual sessions. What does that mean? Let's contextualize it. So GLP-1 once again, we looked at 4 big GLP-1 brands, and we compare the traffic that they get to the traffic that comes to our brand page sites for the very same drugs. And as you can see, our traffic exceeds theirs from 1.6x to 5.6x. We believe this quantum of high-intent consumers and HCPs, who are using us, is tremendously valuable to pharma. As you can see, they're coming to GoodRx, right? Way more than they're going to the brand.com websites. All right. Now let's get into the details of our pharma solutions. Our product offerings fall into 2 categories: Access Solutions and Media Solutions, I want to reiterate to you all why -- as investors, why we're unique in this space? There are many access solutions out there. But we believe none of them have the consumer and HCP reach, scale and brand awareness that we do, just the sheer consumer volume. And then similarly, you have lots of media publishers and media platforms out there, but we believe we can uniquely drive the metric that pharma ultimately cares about -- let's say, together, prescription fills. So our access solutions save people money on their brand medications and can be categorized as Copay Solutions and point-of-sale discounts. So let's talk about Copay Solutions first. Pharma companies offer copay savings programs. As I've mentioned before, there's very low consumer awareness. Even people in the industry oftentimes are unaware of these programs. And so what we do is, we work with pharma companies to house their co-pay card on our price page that way when somebody comes to look up the price of a drug, we're able to seamlessly integrate this copay savings program, get them enrolled and help them fill the prescription. This provides value across the ecosystem. Pharma companies and pharmacies reduce the number of scripts that go unfilled and consumers are able to access expensive brand medications at a much more affordable price. So now let's move on to point-of-sale discounts. In this program, a pharma company can partner with us to directly buy down the cost of their drug and directly lower the out-of-pocket cost for a patient. This is a solution for all cash pay patients regardless of insurance status. While it's estimated that approximately 90% of the U.S. population has some form of insurance, all too often, brand drugs are not covered by their plan. We estimate that over 80 million new prescriptions are left unfilled at the counter because their plan doesn't cover them, right? And more than 50% of commercially insured patients are on a high deductible health plan, and just face higher out-of-pocket costs, which makes access challenging for them. In these instances, it makes a ton of sense for pharma brands to partner with us on this point-of-sale program. We enable all of these solutions through a flexible and customizable module on the page, which drives -- which sees great engagement. 40% of people who engage with the module, complete eligibility questions and get to the right solution for them. And then for programs where we have this integrated copay card offering, we reduced drop-off and outpaced general market prescription growth by 90% on average. Again, these results speak for themselves. Our users are highly engaged. We've demonstrated that we can get -- to get them on therapy and stay on therapy. And we offer these solutions both in a direct-to-consumer as well as -- context as well as to CPs where HCPs can send these solutions to their patients. So in aggregate, our Access Solutions account for 2/3 approximately of our projected 2024 manufacturer solutions revenue. Now moving on to Media Solutions, because we have a high-quality audience across patients, caregivers and healthcare professionals, we found that they're also interested in educating themselves on how to manage conditions, or look up more information about specific medications. So it became a natural adjacency for us to offer media solutions specific to these user groups as well. So we offer a myriad of different media solutions, including drug page content and video sponsorships, co-branded content, newsletters and so on. On the HCP side, we offer pharma company solutions to target a specific list of HCPs that they're interested in reaching. In aggregate, our media solutions account for approximately 1/3 of our 2024 manufacturer solutions revenue.

So Divya mentioned this, but to bring it home, what makes us different, is we're focused on the transaction, whether it's media, whether it's access, whether it is point-of-sale, whether it's co-pay card, everything is developed and built to drive the patient, the physician to the point of filling at the pharmacy, remove the friction. And then we surround that with our media solutions to ensure that at the end of the day, that's an important metric that Divya may do all y'all is fulfilled at the [indiscernible] pharma. All right. So let's look at these in action. We're going to watch one more video, just so you can see what it looks like from a consumer perspective, and we'll walk through these. [Presentation]

Great. Now that we've seen how the products work, I'm excited to show you the impact that they drive. So let's look at our copay programs with pharma in action. I have two examples here of how we've delivered significant value to consumers and pharma by embedding their copay cards on GoodRx. In the first example, we worked with pharma to take a diabetes medication that was previously priced around $600 on GoodRx, and brought it down to their copay -- the price of their copay offer, which was as low as $10, depending on the consumers' insurance. Outside of the implicit consumer value, we delivered pharma nearly $22 million in incremental prescription fills annually, and a double-digit ROI to the pharma company. They were pleased. In another example, we partnered with pharma on a mental health drug to reduce its price from approximately $1,500 to again, as low as $0, which was again, depending on the patient's insurance. This is still valuable to pharma, because once a patient gets on a drug, especially for chronic medications and they're over their deductible phase, pharma manufacturers can benefit from a potentially long, often third-party paid lifetime value of prescription fills, once the patient gets on their therapy. So in this example, we delivered nearly $7 million in annual value to our pharma client and a 5.5:1 ROI. Let's pivot to talk about our point-of-sale discount programs in action. Again, two examples here where we enabled pharma to directly decrease the out-of-pocket cost that a patient pays at the pharmacy. In one example, we took the price for a consumer down by $200. That was almost a 50% savings for the consumer and delivered $18 million in annual revenue, incremental annual revenue to the brand, and increased prescription fills by 16x. In our second example, we decreased the price by about $90, delivered incremental annual revenue of $4 million, and group prescription fills by over 2x. When we work with pharma to enable point-of-sale discounts and drive revenue and prescription fills for manufacturers, we're paid a fee on each of the claims, making this an attractive offering for us where we participate in the upside. So how do we deliver such strong results, with our point-of-sale solution? We are cutting into those approximately 900 million abandoned or rejected fills at the pharmacy counter. We deliver better pricing for drugs where insurance access is challenging. This removes consumer and HCP friction for rejects and utilization management, prior authorization, step therapy, all that fun stuff. Our transactions are directly measurable by pharma, which is something they're pushing for and investing into. And once we start delivering these claims, they -- these tend to be highly sticky relationships with our pharma partners with growing recurring revenue. And pharmacies like this program because of the attractive reimbursement economics for them and the ability to prevent walkaways at the counter due to cost. Now that we've talked about our access solutions, let me give you a flavor for our media solutions. Our media solutions are anchored in premium content, designed to drive -- help drive transactions with a highly qualified audience of patients, HCPs and caregivers. Instead of thinking of this as stand-alone media, think of this as contextually relevant media that wraps around our access solutions. Last year, our content offering drove over 150 million page views annually, which was up 36% year-over-year. Let's now talk about HCP solutions. So we've talked -- we've mentioned a few times that healthcare professionals, or HCPs, are heavily engaged users of our platform. We had 750,000 unique HCPs that used GoodRx in 2023, and we had a 90% brand awareness with HCPs. They know us, they love us. They use us, because we have solved real problems for them and their patients. As Scott mentioned, HCPs offices struggled with the administrative burden of prior authorization and other forms to help get their patients on therapy. And they're spending 14 hours a week on these types of tasks, and we simply help reduce friction and get their patients on therapy. And our NPS of 84 with HCPs is evidence about how they feel about our value add. I mentioned this because we're actually just beginning our journey of building a pharma HCP value prop and offering. HCPs are one of the most important constituents to pharma, since they actually write the prescription. We're exploring ways to uniquely add value to HCPs and deliver value to pharma at the same time. One simple example is by allowing HCPs to anonymously share prescription savings or coupons with their patients electronically. We see a strong runway here and plan to invest more.

All right. Let's talk about GLP-1s once again. We know that these are very -- they're successful drugs, they work, and they are really bifurcated into two categories, right? You've got your diabetes and you have your weight loss. Together, they're growing like math. It's projected by 2026, we're going to represent 8% of overall prescription spend, 50% CAGR. Here's the kicker. Diabetes is well covered. Weight loss is not. And if you zoom out and you think about what Scott's mentioned, Mike, Divya, when insurance fails, GoodRx wins, that's where we play. So again, estimated that only 25% of employers cover these drugs for weight loss, and Medicare also does not cover it. So what does it mean to us? When we look at this, we're partnering with our manufacturers to embed the copay cards to embed those solutions, and we are a huge [catchers] met for these transactions. When you look at -- next slide, please. When you look at Q1 on a monthly basis, we had 800,000 unique searches for the GLP-1 to the price page. We had another 700,000 monthly unique searches to the content. So again, massive need, massive opportunity. The catch, because of the supply constraints, we don't believe that pharma has fully unleashed their marketing engines here, as well as their access engines. So we do believe we have a lot of opportunity moving into the future here, and we're excited about the prospects of this. We firmly do believe that we are the natural solution to partner with pharma to help patients get and stay on these drugs on a go-forward basis.

Now that you know how this side of the business works. Let's spend a moment on our focus areas, which we believe will continue to strengthen our fundamentals and reinforce our value proposition. First, we are focused on expanding the number of top brands that we work with, and selling more solutions into the ones that we already work with. So getting more customers and going deeper with them. Second, we are highly focused on scaling our book of business and capabilities around our specialized access solution, the point-of-sale discount solution to directly reduce the price of brand medications. And finally, we're focused on better demonstrating our value to pharma by more clearly reporting impact and ROI to them. Now let's walk through each of these focus areas. When we look at our growth, there are two key areas that we focus on. The first is the number of brands that we work with. And the second is the number of solutions we're selling to those brands. On both of these metrics, we believe we have tremendous room to grow. When we look at the largest revenue brands in the U.S., so the ones that have over $1 billion in revenue, we only count about 1/3 of them as clients even though we often have a relationship with the manufacturer and a foot in the door. This means we have significant runway to grow just by adding new logos. Then for the brands that we had sold to, we've sold less than 1/4 of all of our possible solutions to them in aggregate. So just within our existing clients, we have material opportunities to grow. These two areas are our primary focus. Next, we're focused on directly lowering brand drug prices via a point-of-sale discount offerings. Due to the reimbursement and pricing challenges that pharma companies face, we believe that many of them view cash-pay price offers as an effective access strategy to help drive uptake of their brands. They're particularly valuable and we are uniquely positioned to partner with pharma in ways that others are not. We've created a win-win-win solution that benefits pharma, pharmacies and most importantly, patients. We have our own traffic engine, we can drive transaction-based results where pharma can choose their own economics. So the ROI is incredibly clear to them. And this is an offering that is completely differentiated, and we believe that we can deliver this in ways that help the network, helps consumers and is scalable. We have about 30 of these today, up from about a handful 18 months ago. We've come a long way, and we have a growing pipeline that we're very excited about.

So I'm really excited about this product. I think as we talked about -- and we were talking about this earlier, actually today. When you think about cash for brands, I think a lot of people naturally think, brand drugs don't fit well in that mix, right? They're expensive, it doesn't work well. But when you actually start to think -- Divya mentioned this earlier, pharma is really focused on gross to net. And when you start to take out all of the pieces that erode pharma's net offering, right? So you've got rebates, you have copay card support. You have to pay for the prior offs. You have to go and work through the HCP awareness and the pharmacy reimbursements. When you get down to the net level, we think we have a really attractive offering here to help patients. What becomes even more interesting, is all the work that we've been doing in our integrated solutions. So Mike talked about integrated solutions on covered generics. We think there's a lot of opportunity to expand that and to not cover drugs. So that now all of a sudden, we have as we grow these offerings, we have a direct-to-consumer offering on our website where we can capture, drive transactions. But as we can expand the network approach and start pricing these on not covered transactions, there's a lot of wind in our sales there. So that's one area of growth that we're excited about. The other is nontraditionally promoted or traditionally non-promoted drugs. So as manufacturers lose patents, typically, they just sunset the drug, they let it run out, not much happens. We are actually partnering with pharma to allow them, to create a unique cash price and potentially buy the market back from the generic. There's a lot of consumers who still want the brand. Price point is not attainable in a lot of these situations, they can lower the price. They have very little low COGS at this point in time. This is purely incremental revenue for them, and it helps our patients have optionality, as well as our physicians, a lot of good things there. if you did mention biosimilars, a lot of noise in this space. It's a very interesting space, actually. You and I talk about this a lot. So the biggest challenge we've seen with biosimilars, they really are struggling to gain market share, right? Like if you look at them at scale within IQVIA, most of them are not taking off. It's a problem. We think cash is a very interesting opportunity for them to go and gain market share. And in fact, we recently just signed. We won't name it, but you can guess one of the big biosimilars that we'll be launching soon, and we're really excited to see if we can prove a space here and let them gain market share without some of these other market challenges. So again, we think we have a lot of opportunity, and we're excited about this.

Speaking about lowering drug costs overall, we know there have been questions about Medicare drug benefit changes and the potential impact on our business. So we wanted to hit this head on, and give you our perspective. The headline is we don't expect a material impact here but get excited. We're going to talk about 1,000 pages of legislation on this one slide. So the inflation Reduction Act from 2022 included provisions around changes to drug pricing. So number one, Medicare negotiates pricing with select brand drugs and will penalize brands that increase -- that take price increases that exceed inflation. Number two, out-of-pocket spend will be capped at $2,000 for that benefit year. And number three, beneficiaries have the option to smooth our out-of-pocket costs over a benefit year. When we look at these changes relative to our offerings, they primarily impact pharma and brand medications, right? So not generics. So first, if we look at the first piece around negotiating pricing and penalizing price increases that exceed inflation, this has really changed about -- changed how some pharma companies think about going to market. Some of them have reduced prices. Some of them have gone the authorized generic route. They've just pursued different go-to-market strategies, right? An outcome of this has been that brands have continuously increased pursuing direct-to-consumer point-of-sale discounting solutions as an avenue to get their drugs to market. So this has actually been a tailwind for us on the Pharma Solutions side. For prescription marketplace, since that is primarily focused on generics, there's no material impact there. Let's look at the second one around capping out-of-pocket spend $2,000. On the manufacturer solutions side, again, we don't expect to see much of an impact, since our solutions are more geared towards patients with insurance, with commercial insurance or no insurance. And on the prescription marketplace side, we want to contextualize the impact of this. So about 2.5% of Medicare beneficiaries have an out-of-pocket spend that exceeds $2,000. For us, about 28% of our users are Medicare beneficiaries. So you put those two together, and we arrive at an overlap of less than 1%, so really no material impact. Most of the cost burden lies with brand medications. Again, that is a very small component of our prescription marketplace offering. And then finally, the third piece around smoothing of out-of-pocket costs over a benefit year. That is certainly beneficial to some consumers. On the -- and we estimate that most of them are doing this for brand medications, right, since they tend to be more expensive. And our manufacturer solutions offering doesn't cater to Medicare beneficiaries. So not much impact there. We don't see applicability. On the prescription marketplace side, since most of these users are doing this for brand medications, since our offering is more on the generic side, again, we don't see much applicability here. I guess, yes, that's all we had to say on the Medicare side. So moving on to our ROI and value measurement. So the intent and quality of our consumer and HCP audience has been demonstrated by third-party measurement on several of our programs. For example, in one of our programs to reach patients with a specific type of arthritis, in a third-party measurement study, we ranked highest within our competitor set and had more than 2x the audience quality of the next best comparator. We view this as a leading indicator to the metric that pharma ultimately cares about. It's total prescriptions, TRx, or new-to-brand prescriptions, NBRx. We also have third-party validated studies in areas like cardiovascular, respiratory and diabetes, with one study showing a 70% lift in total prescriptions from HCPs who visited the GoodRx price page, compared to a control group that does not. That's pretty powerful. We believe we occupy a unique role in the prescription journey, as I mentioned previously, and that our value is actually in driving strip lift and prescription volume. We're also leveraging our internal data and business intelligence teams to find ways to expand our own analysis and supplement these third-party measurement studies. In summary, a big focus for us this year is tying engagement with sponsored programs on GoodRx, to prescription lift so that we can clearly demonstrate ROI to our pharma partners. We've covered a lot of ground, so I want to summarize our thesis for growing pharma manufacturer solutions. First, there is significant consumer access and adherence challenges that we believe are just going to get worse as payers and PBMs continue to tighten formularies, insert additional controls and move more of the cost burden on to consumers. Second, we have a large audience of trusting consumers, many of whom have a script in hand and the intention to fill it, along with HCPs, we're looking to solve these problems. Third, pharma is looking to solve these problems with innovative access solutions that they can directly measure on a transaction basis. We believe they're ready to invest significant sums of money to move scripts in an ROI-positive way. So how do we grow? [Initially], we sell more brands and demonstrate our value to pharma. We talked about that. Our ability to link transactions to commercialization spend is a real differentiator and will be key to our success. Then we believe that our transactional point-of-sale discount solutions, that directly lower the cost of brand medications for consumers, that we launched about 18 months ago are poised to create incremental growth for the offering through existing channels. We have about 30 brands that are leveraging our platform, and we believe that we're well positioned for significant growth here. Between these items together, we anticipate we can deliver 20% to 30% long-term annual growth. And on top of that, we also have accelerators that can kick our solutions into high gear that we're already investing into, and these were big unmet needs in pharma. The first area is you got a GLP-1s. It's very relevant for GLP-1s. But if you think about it, it's very relevant to many consumer-centric categories, like dermatology, and so on. To recap, these drugs are incredibly popular and are expected to be even more popular, access is challenging. GoodRx is the place to go to for GLP-1 access and affordability since this -- we expect this to be an increasingly consumer direct category. We're working on solutions now that directly reduce the cost of GLP-1s and make them more broadly accessible. This is going to be a huge opportunity for us. The second is taking those point-of-sale discounts that we've talked about a lot, and expanding their distribution through other B2B channels, most notably through our integrated savings program partnerships. And the third is specialty drugs. Specialty drugs now make up more than 50% of spend in the U.S. They treat a very small fraction of patients. But most pharma companies, their pipelines are heavily weighted towards specialty drugs. The patient journey for these drugs is actually even more complex, due to the access and distribution challenges of these drugs. It causes significant delays to get on treatment. And we're exploring ways to reduce the friction in the specialty space and make the process more transparent for consumers, caregivers and HCPs. We've already worked hard to improve our user experience on the website for specialty medications, with the goal of making it more informative and less scary for patients. We're talking to pharma about leveraging our solutions to connect our users to specialty support programs and a myriad of other support programs that they have in place. The final area is around increased sophistication and precision on how we connect the right people to the right access solution. Through a combination of data analytics and product improvements, we're working on crystallizing solutions for consumers to better access brand medications based on insurance status and other factors, while also working to improve pharma's gross to net and deliver strong ROI to our pharma partners. We're incredibly excited about the growth prospects of pharma manufacturer solutions. We believe we're in the early innings with opportunities for growth and material expansion still ahead of us. So with that, we will take a 15-minute break now. When we come back, you will be hearing from Ryan Sullivan, our SVP of Marketing, who will be discussing our strategic approach to marketing. Thanks, everyone. [Break]

All right. Welcome back, everyone. I'll let everyone get back to their seats. Okay. Thank you. We're getting a lot of great questions to the platform. So please keep the questions coming. That's how we'll be taking Q&A today, so make sure you get your submissions in. And then getting back to the presentation. I now have the pleasure of introducing Ryan Sullivan, our SVP of Marketing. Ryan is [indiscernible] in for our CMO, Andrew Slutsky, who couldn't be with us today. Andrew is one of the founders of the company and came back into the executive role shortly after Scott joined. Ryan is a great all-around marketer with skills and appreciation for both brand and the soft stuff of how to connect with consumers as well as the analytical chops to find high-value patients and doctors. With that, go ahead and take it away, Ryan.

Al right. Hi, everyone. I'm Ryan Sullivan. I'm delighted to be here to share with you more about our marketing efforts and all the things that make GoodRx what it is today. Just as a PSA and as a brand police officer sometimes, there's pins in your bags. I expect you'll wear them all as you run out of here today, around New York, and wherever you're going. But just remember that the heart shape goes up into the right. Hopefully, that's not difficult for this audience to remember because I'm sure you like seeing things that go up into the right, especially in charts and graphs. So good about me. I joined GoodRx 3.5 years ago to lead our growth marketing teams and our marketing analytics efforts. I'm really fortunate to also be able to now oversee our brand and marketing communications efforts as well. Prior to GoodRx, I spent 12 years helping some of the largest global brands evolve their traditional marketing engines, to be more competitive in our digitally driven world today. And with that digital background, performance marketing is core to how I approach the marketing craft, but I know and many people know that that's only part of an effective marketing ecosystem. The really critical element of any great marketing enterprise is the brand. And that brand is built and nurtured over years of hard and focused work. And it was the GoodRx brand that actually drew me to GoodRx. Its ability to help a family member of mine with the all too common challenge of medication affordability drew me here, and it's one of the things that really keeps me here, and a strong advocate of what we're doing. So let me start and talk and unpack a little bit more about what makes GoodRx, that venerable brand it is today, and the efforts we used to build trust and support consumers along their journeys. So part of what brings that brand to our -- to life is our own team. I'll quickly acknowledge the 90-plus talented marketers at GoodRx that cover consumer backgrounds. They also have healthcare backgrounds. And we're all deeply motivated, myself, my colleagues that you heard from today and everyone back at our offices. I'm motivated to grow utilization of GoodRx because we know that consumers that use GoodRx are better off for having done that. And that's not something that a lot of brands can say, and I'm proud of that. So our connection to that purpose and that drive really shows up in our work and helps what we do resonate with consumers. GoodRx has been an evergreen marketer for more than 10 years. Over that time, we've refined strengthened, adapted our marketing strategy to meet and evolve the needs of our consumers and our company. And since GoodRx launched, we've invested over $1 billion, $1 billion in marketing. And our investments have not just focused on lower funnel or performance marketing or direct response marketing, we've built tremendous brand recognition among consumers and HCPs, and that leads to significant word-of-mouth referrals, earned media and organic demand. You heard Scott mention how tremendous our organic demand is. We believe our work to build our brand and our deeply impactful consumer experience have made us synonymous with medication savings. By our estimates, as you heard, over 70% of consumers and approximately 90% of HCPs know about GoodRx. If you compare our awareness levels among consumers to that are the next largest player in the space, we believe it's about 3.5x higher, and that our web sessions were more than 8x higher in the first quarter of 2024. Not only do we have strong levels of awareness, but consumers and HCPs, they really like us too. Based on our most recent surveys, we -- a consumer NPS of 74 and an HCP NPS of 84. To contextualize that for this crowd, I'll use another brand as an analogy here. If you take Apple, which I assume many of us would consider to be a gold standard brand for consumer delight, there an NPS of 72, again, compared to R4 for consumers and 84 for HCPs. And with HCPs are asked to name their favorite prescription savings brand, they're 8x more likely to say GoodRx, compared to the next closest brand in our category. Awareness in NPS, critical measures for leading brands. But what about intent to actually use the GoodRx platform? We track a lot of metrics here, but I think mobile app data really drives this point home. We're recently ranked as the #1 prescription specific app. We also have over 900,000 ratings across iOS and Android, and the combined rating there is 4.8. You can pair our number of ratings to the next largest players, 25,000 combined ratings. In addition, in 2023, we saw nearly 350 million visits across our website and app, and that's not something that happens overnight. That's the product of that focused investment strategy and optimization over the 10-year horizon and we have been doing this as an evergreen marketer. Now essentially all of the $1 billion plus of investment in dollars has already flowed through the prior year's P&Ls, but the benefit of that investment will continue to add value to our brand and company and our investors now and going forward. We believe our sustained marketing effort drives significant value in our brand, and that's difficult to replicate. It's also our brand, a key differentiator for GoodRx contributing to our ability to efficiently acquire users and their prescriptions at a relatively ongoing -- low ongoing cost due to this evergreen activation and consistency we have in our marketing. We then monetize that via our Rx marketplace and our manufacturer solutions offering. To give you a sense of how and where we reach our audience, we''ve put together a video to show you just a few other places you'll see our brand connecting with consumers. [Presentation]

So it's -- you hear consumers say, $900 got to stop, GoodRx to the rescue. And I'm really proud of the work that goes in and showing up consistently across all those platforms, tonality, our yellow, our voice, this room that you're immersed in the yellow and the ceiling. All of it is kind of carefully crafted to make sure that we show up consistently. But even more important than that is having real voices. The faces on these pillars, in the videos you've seen today, these are real customers. These are the real pain points they're dealing with. These are the real stories and the savings we provide. So building the highly effective marketing program behind this video is only possible through focused execution of our strategic plan. And I'll take you through that plan. So number one, we want to clearly connect our investments to our most important enterprise goal, which is driving claims. Number two, we want to clearly -- efficiently support our partners from retail to manufacturers and everyone in between that spectrum. We want to win consumer segments with larger drug baskets and more frequent fill cycles. We want to win and grow advocacy from HCPs given their critical role in our industry. We want to integrate our communications. So we're consistent across these channels and surfaces. And we continually test and learn and improve our marketing engine as any really strong marketing team would do -- but underpinning everything we do as a company, not just as a marketing team is building the GoodRx brand. GoodRx are in the trust and affinity of tens of millions, and we take brand stewardship very seriously. In fact, when we do our marketing 101s and I onboard people into the company, this is a first slide is that everyone's job in the company is brand stewardship. So now that you understand the key goals, let me highlight how we're working to activate them day to day. Our core efforts here can be grouped in 3 areas. One is just to know our audience and know what we know about them and use that effectively. We want to use that to build top-of-mind awareness and actual intention to use. It's 1 thing to know about something. It's an entirely different thing for that to resonate and to have a plan to use it when it matters. And when you do choose to use it, we want to be available and easy to find consumers are ready to take action and safe. Let me go through these. So we think about our audience, the who part of this in 2 broad categories. One is the consumer, the end user of the product, and the other is the health care professional, a key constituency and facilitating this relationship that we have with consumers. So who are our consumers, that first group? Our audience hails from all walks of life, but we generally believe they reflect the national population in the United States at this point. That's the size and impact of our brand. These folks are mostly insured over 90% of GoodRx users have some form of insurance. Our research shows that they have moderate income. We estimate that more than 70% have annual household incomes of greater than $50,000 and 1/3 have annual household incomes of over $100,000. They represent all ages, 18 to 64 is the age range for 64% of our users, and they skew slightly female. Now the 1 characteristic that unites all of these people is that they save money with us. They save money with GoodRx. And the fact that virtually everybody in this country can save, with GoodRx at some point maybe frequently, highlights what of tremendous business this really is. It's the power of what we do. So how do we utilize that understanding of the consumer in our marketing. As Scott mentioned, we can help anyone who can take medication. But some segments do have a higher propensity to use GoodRx. In particular, those who are underinsured or of higher deductible benefit plans, those with maybe lower income and those on multiple medications disproportionately benefit from what GoodRx has to offer. We use models and our understanding of that data to build an understanding of profiles of users to make sure we have the best message as possible when we reach out to them. For example, a consumer who claims on a onetime antibiotic like an amoxicillin for an ear infection, won't need the same messaging as a consumer who regularly fills a statin or something for a heart ailment like hypertension. So we're focused on engaging these qualified consumers and our coverage along their journey also helps us win with another important segment, which is the occasional user. We want those really valuable users, but we do things to really also activate the occasional user as well. For health care professionals, that other population of really important people we focus on, we don't just think about the prescriber, but everyone who surrounds this patient. We've looked at things like nurses and office staff, pharmacists and pharmacy technicians and other health care advocates. The prescriber is the one who writes the prescription. They have their name on the pad, but they're not the only one who counsels the patient, sometimes not at all on cost and access due to how busy they are. Our strategies are designed to engage everyone who helps patients in and around the point of care, all the way to the pharmacy counter. And so HCPs are a critical, critical audience for us. We believe that, by far, they are the most influential voices with our end users. As Mike and Divya mentioned in our HCP audience sections there and brand savings and Rx marketplace, we believe this HCP audience is high intent. We believe that HCP is often recommend GoodRx to patients in and around the point of prescribing. We hear this from those HCPs and we see it in our data that 75% of GoodRx HCP sessions occurring during business hours when they're with patients. And so when we ask patients how they hear about GoodRx, the #1 source given, from HCPs. That's the #1 place. And 3 of the top 6 sources we hear from patients as referral, 50% of the top 6 are from health care professionals in general. And this is why we invest significant time with HCPs. It's also why our marketing here is really important. Also just to illustrate this point, let's talk about how we turn this in a value. What is the value of an engaged HCP with GoodRx. Well, when we look at the top decile prescribers, they're associated with approximately half of our total claims, top decile, half of our claims making them extremely valuable to us. Not only are HCPs a significant source of patient referral today, but their enthusiasm to promote us in and around the office makes investments in that office really efficient. And that ROI profile is phenomenal. So we've done more this year, especially to focus on HCPs. We've shifted investment, head count and development resources to focus on them. And I'm really excited about that plan, and I'll cover up on some of those tactics in just a little bit. All right. Another video, but I think it really kind of brings things home for us. So you've seen videos today, but I think this should really excite you on a different level. To have this type of a B2B like B2B2C connection as a business is just incredible. So let's hear directly from those HCPs and why they recommend us to patients? [Presentation]

It's really powerful to hear directly from HCPs about how we're helping their patients that end state of where they want to be, which is patient happiness and patients on the road to recovery or getting better, feeling better about their lives. And that's why they're strong advocates. That's why they run up to the booth, and they don't try to hide from the booth when we're at a conference. They want to talk to us. They want to tell us how much we mean to them and their patient population. So now that we've established who we're reaching the consumer and the HCP, I'll take you through how we actually do that in the field, in our marketing. So it's important to realize in this business that refills come in 30- to 90-day intervals for patients that are already on medicine. And it's really impossible to predict when someone will be put on a new medication exactly. So we can't overly focus on lower funnel or direct response and people that are going to go to the pharmacy right now. We need to also build awareness among those who will likely have an event and need in the future. And so our goals in marketing are really twofold. We want to raise awareness of our solutions and build intention to use us. We want to resonate. And we want to be easy to use in and around the moments where prescriptions are written and filled. And we believe these goals help us maintain a healthy balance between consumers available to us today and consumers tomorrow as well. Going deeper, we use a marketing strategy that's designed to surround the consumer. So GoodRx's top of mind as they manage these conditions. We do this with integrated marketing campaigns. We want to efficiently reach relevant segments at appropriate frequencies. We have consistency in our brand look and feel, and we tailor messages to these different channels and the ad types within them. So they're specific to the need state there in that journey moment. In terms of specific strategies, we think about our categories of activations in 3 really distinct categories. There's this upper funnel area, there's point of care, and then there's lower funnel marketing. So let's start with upper funnel. Our goal here, as I mentioned before, is to build that awareness and intent to use. Channels, video, audio tactics like podcasting and streaming services social, native content, earned media, PR and things we do to nurture word of mouth and SEO. The key isn't where we invest, but how we choose to use these mediums. We believe that investments in native content, earned media and PR especially are really good examples of efficient ways of reaching people at scale without always having to rely on paid dollars. Next, point of care. You've heard how critical this population of HCPs are for us and how critical their influence is. So we've put tremendous effort into HCP engagement, raising awareness and education and surrounding that office and the journeys within that office with GoodRx saving solutions. Some of the tactics we do put in the point of care, are physical collateral like posters for the specialty with QR codes that are easily scalable, savings cards that can be taken out of a tray and used at the point of sale at the pharmacy counter and savings one-sheeters, which is just a cheap sheet for doctors to see what prices have changed regionally in their specialty. Other tactics are point-of-sale -- point-of-care media like screens, active digital screens. We use field reps to visit doctors. We are integrated into EHRs and we're in conferences, which we saw video of. Lower funnel, this is a typical kind of performance marketing engine. This is very focused on conversion, taking that script that's written and converting it into a script filled with GoodRx. Specific tactics here, paid search, paid social, direct mail, programmatic display, CRM, app marketing. And one thing that's really unique, which is our point-of-sale incentive. Now point-of-sale incentive is kind of this added discount that we can apply to drive incremental consumer action. What kind of action? Well, an example might be that we want to get that first fill. We really want to win that first trip and get someone to that 80% refill cycle, so that could be an area where we could use that. Another area is first-party data is important and it's only going to become more important in the future. And so we might add an incentive to get someone to register and create an account with GoodRx or make them contactable so we can use CRM. We believe that -- or financially, it's important to point out, and Karsten will cover this, too, but point-of-sale incentives are different from a traditional marketing expense, point-of-sale as a contra-revenue expense or contra-revenue, not an expense. We believe that maintaining a diverse set of approach to our consumer acquisition is important. So we're not overly relying on one channel. We've seen that many of these channels, upper funnel, lower funnel, everything in between complement 1 another. We want to maintain that balance between driving awareness and intent because that allows us to really unlock the lower funnel and convert users close to the point of prescribing and getting on to GoodRx. All right. So within this funnel that I discussed, we're continuously optimizing our mix in an effort to meet critical financial targets, including payback windows. We target a 2x return on ad spend or ROAS within 2 years, and we've consistently broken even in under 8 months on that goal. And we do this while contemplating overall corporate profitability as well. And many of you might have a question, how are we doing? Well, I'm happy to share that we operate well with these financial constraints today -- and we work closely with our finance team to allocate additional investment where we see there is channel headroom, and we can stay within our margin targets. I'll cover a little bit more about the measurement methodology we use to identify ways of allocating our budget. Okay. So I touched on point-of-care a little bit ago, but let's go deeper into the actual tactics. This is the aligning teams and budgets this year. Prescribers, origin point for all patient trips to pharmacies integrating GoodRx in the workflows at the point of care is critically important. And so we have a cross-functional team dedicated to this pursuit. Their goals: number one, grow HCP offices actively recommending GoodRx and number two, grow the number of claims per each of those active offices. We've got 4 specific work streams that kind of allow us to unlock those goals. One is to segment prescribers. So we know, which specialties and markets are really important for us to win in and around. We want to drive HCP platform enrollment through digital and field marketing. We want to offer HCPs a personalized experience that is digital first, so they can assist patients easily. And we want to own Rx savings at this point of prescribing with patient resources. And we believe these 4 pillars will help us build long-lasting digital-first connections with HCPs and their offices, and the patients who go to those offices, it will be much easier for them to save with GoodRx. So now that we talked about where we invest time, the who we're trying to reach with our marketing, let's talk about what goes into the actual messages that we put in our ads, what we say to people, and we really strive to resonate with people. We do that through 3 things: it's relevance, personalization and being authentic. And it takes discipline to actually pull this off. For relevance, we create campaigns and messaging specific to geographies, conditions, pharmacy preferences. These are all catalysts that create savings moments. For heart health, you saw earlier on a slide how important heart conditions are to this business. So this was the #1 condition for us in this effort. Heart Health, this campaign was built not only on our incredible messaging and pricing savings of 30 of the most common heart meds for under $30, but we leverage the weight of our publishing arm and the power of organic content to attract and delight consumers as well. We believe that leveraging and integrating content into our marketing continuously can improve conversion rates, and it reduces the burden in the short term and the long term on paid media to stay visible. This campaign's media and content efforts were complemented by unique patient flows on the website, including a homepage feature. So if you don't click on this ad and you came to the home page later, you'd still see consistent messaging. And the timing, which is a really important thing to get right in marketing, aligned with the February American Heart month, and that's when other efforts nationally were backed by the National Institute of Health, and they were live across the industry. We want to ride that wave with everyone else. And so as we increase usage of our marketplace and influence consumers, we also increase value for pharma manufacturers as well. We frequently partner with manufacturers around these seasonal moments to build relevancy for their brands and the drugs that are important to them. And here's 1 example of how we integrated that particular manufacturer's allergy medication around allergy season. This is the homepage feature I was mentioning. We also support manufacturer solutions outside of these seasonal campaigns. In the case of Lantus, a really important partner for us, is the manufacturer Sanofi, of this drug. And we work with them to lower the cost of $35. We also supported this launch through press releases, organic social, landing pages and funnels and paid media to really grow this. Beyond manufacturer solutions, marketing works closely as well with our retail partners. Now in this example, Walgreens and GoodRx partnered together to lower the cost of nearly 200 common prescriptions, and we leverage the same marketing channels, PR content, CRM and paid to get in front of the consumers who are likely to use Walgreens and benefit from these savings. And our team supports hundreds of programs like this each year with more on the horizon, especially as we implement the retail strategy that Mike had mentioned a bit earlier. Personalization. Personalization can take lots of forms, but one really important one for us is regional integration of our data. And doing that at the point of care is an obvious place where we need to do this well. And that's not just relevant to the HCPs in these offices. It's also the consumers that walk through them. This is an example of execution in Houston, where we call out things like 60,000 Houston providers and specifically $338 saved on average from a consumer in the Houston area, just to make it a little bit more personal on the resident. As I mentioned earlier, we believe as well that editorial content is an important asset for us and what we say there matters a lot. It shows consumers that we can help them beyond the transaction, and it also serves as a strong magnet to pull them into our prescription funnels. We also enlist the voices of consumers. You've heard them. We've -- our partners and GoodRx thought leaders to power our evergreen content machine and build our savings value proposition. We believe that they're using real savings data and even better real patient and HCP stories, we are authentic. We resonate with our audience. This also helps normalize this important thing, which is price checking for medicine before you go to the pharmacy and you're standing at the counter. It shows our audiences versus just telling them that our discounts are real, that savings is easy and this is a tool that anyone can use or partner with. Content here generates tens of thousands of engagements for us on an average monthly basis, and you can see it if you're in our social platforms. And that's in the form of clicks, save, shares, likes and everything else out there. So let's take a step back and think about the consumer journey for a second. We need to make consumers aware, which I covered earlier. We have to transition that awareness and an activation and make sure they have -- and we want to make sure they have a positive experience, and then we want to keep that cycle going. We want to make sure they come back and use us for refills and they add things to their drug basket over time. We've talked in-depth about marketing in the context of acquisition, but as you heard earlier, given any month out there, 80% of our monthly claims come from repeat use. And we engage with these users differently than we do with newly acquired users. One exciting example of how we retain and grow utilization is through incentive personalization. This is activating on that point-of-sale incentive that I mentioned earlier. Just this quarter, we launched new capabilities that allow us to personalize ads messaging with incentive-based creative and add copy that drives urgency for a limited time, and we connect that all the way through the experience on the site. When a user engages with an ad like that, and they go to the site and they type in a drug, that incentive follows them all the way down to the drug page, at the price page where they're giving that offer for signing up and saving. This seamless experience ties pre and post click together, which is immensely important in a world of active marketing and it's being used now for basket expansion and reactivation of churn or dormant consumer. And we're really excited about this work and using it in more places as we focus on different priority segments this year. And we'll, of course, balance and tune the offer and incentive to align with the financials associated with the segments we're pursuing, so they makes economically. Now the more effective our engagement with the consumer along their journey, the greater the opportunity to convert them not as a customer wants, but ongoing. And this is where we use that first party data. We focus on member registration and delivering value to users through awards, CRM campaigns, price savings awareness, personalized savings statements, especially at the end of the year, so you get a nice wrap of how much you saved with GoodRx and notifications that live in our medicine cabinet around refills and refill reminders. We also build campaigns that leverage direct member messaging through CRM to stay relevant in the system throughout the year. We know that this consumer journey is a nonlinear one, and we leverage those organic tactics as kind of order to fill in our paid marketing when we're not always on everywhere all the time. And we use this content to navigate news and social platforms with content that is important for consumers to see. We publish hundreds of articles a month relevant to consumers, broad health care interest and wellness needs, and HCPs actually use this content too when they're working with patients. This content only drives traffic, but we use it in channels like social because we believe it's a compelling on-ramp for potential consumer acquisition. Ads, people can get banner blind. It gets -- it can get too repetitive. And so having a really well-placed story that resonates as thumb-stopping can get someone actually click through, come to the site and read the article and then we try to move them into our prescription funnels. And content investment is an annuity that continues to pay dividends for us ongoing through our health property. And so looking back at everything we are doing to stay visible to consumers, it's clearly complicated, and multifaceted. It's critical that we have a real-time understanding of what's working, what needs further optimization. This is our measurement infrastructure. To that end, we've built these measurement tools in-house that assess the marginal return of each dollar that we spend. And we do that by combining things like direct attribution, experimentation, just like a lift analysis, if you've heard it that way, and statistical modeling sometimes called econometrics. And we have redundancies in these tools that help us find these causal moments and help us confirm accuracy in our investments that we're directing them at the right place that we -- where we think it drives the most financial return for our business incrementally, and benefits other operational metrics as well. Even more, and this is really important. We look at the total economic impact of our paid marketing. We don't just look at the Rx Marketplace revenue, but we also look at the manufacturing solutions side of the house too and we link those revenue elements together and tie them to our paid activations. And none of this would be possible without our immense and significant investment in first-party data and our data infrastructure and technology which Nitin will cover soon. So in conclusion, we've been working on this for 10 years, sustained relentless evergreen marketing, and we use that to become the specific destination for prescription savings. We have a strong understanding of our consumers and the needs of those consumers and the needs of their HCPs. We use that understanding to reach them at key points throughout the journey, building intention to use and driving scripts when they're written. Our brand reputation allows us to market at the point of care and the point of sale using differentiated creative and savings value propositions that we believe only we can provide and our content efforts and ability to literally harness voices of consumers helps keep it relevant, builds trust and creates a groundswell word of mouth that can drive our brand organically 24/7. Finally, all of this effort, backed by a strategic media investment, technology and data and an incredibly talented team, and they are all laser-focused on driving clear and efficient financial returns for this company. And we have headroom left to continue growing. We're incredibly proud to have cultivated the brand that resonates with consumers and HCPs that is GoodRx. You've seen several examples today in and around you hear in this room even. And I'd invite you, see our consumer and HCP testimonials for yourself, please follow us, share, propagate the real GoodRx effect. It's not just the paper. It's out there, it's happening and you can see it. So now I'll hand this to Nitin Shingate, our CTO, who will explain how our technology capabilities, power marketing and create real advantage for our company holistically. Nitin's a great CTO for GoodRx. He deeply understands the health care space, the complexities of the health care technology and he has significant experience in connected marketplaces, which is incredibly important for our business. Marketing partners closely with this team. We're key customers of the Nitin store in product engineering and design. And our work together really helps us create a significant impact in consumers' lives, and reduces friction in the pharmacy system for HCPs, the pharmacies themselves and pharma. Nitin?

I think it's good for everyone that you listen a lot of information from Scott, Mike, Divya and everyone was touching all the portion about -- what we do here is supported by technology and product. And I want to make sure that I'm going to spend some few minutes to explain you the technology platform and how we're doing in this market. First, let me tell you about myself. I'm Nitin Shingate, GoodRx's Chief Technology Officer. I'm happy to be here today and share my vision for GoodRx as a technology and product innovation company. I've been at the GoodRx for last 3 years, managing the product and technology team in order to improve the patient access, adherence to the medication and the frictionless experience in the pharmacy ecosystem. I spent last 20-plus years as the CTO as well as a senior product and engineering roles at a variety of different companies, including in the technology and health care space. Let me assure you that I have a lot more health care experience as I can tell you, but today is not the time because it's a very limited time. But the way we are building our product and technology is really awesome, and we're doing great job. And I can assure that we are totally focused to do better. I'm here today representing product and technology team who is constantly pushing the boundaries and developing the new innovative solutions that makes a real difference in people's lives. So let me highlight the makeup of my team. We have a combination of team members who have experience in Customer Internet space, as well as health care technology space. The blending of these 2 backgrounds is why I believe the consumer and HCPs love using our product. In the health care product, the user experience can be challenging, which is why focus on building a frictionless, mobile-first experience that is distinct and secure is very important. With that in mind, let's talk about the 3 things I believe makes a particularly unique technology and product. First 1 is the inter-connectivity. GoodRx is a platform that connects across the entire pharmacy ecosystem. And you can consider this as a plug and play, which is a platform that has a prescription experience in the back of our mind. And second 1 is our Holy Grail, which is called Proprietary Prescription Technology. And we can talk about this in a little bit more detail, but this is a technology across such as the multiple points across the prescription journey that we believe limits the experience and add values for all constituents. And the third is scale first-party data. As you know, we collect so many sources from the first-party data to create meaningful value for our consumers, HCPs, pharmacy, ecosystem partners, and as our business operation that grows daily. These 3 distinct advantages makes us complex, simple. So by leveraging the inter-connectivity across the ecosystem with overlying our proprietary technology and using our data -- first-party data, it creates a better user experience as well as it's the whole ecosystem is very powerful and easy to use. Let me start going a little bit detail inside the -- about the ability to connect about the inter-connectivity, how we connect across the pharmacy ecosystem, which is a key differentiator for our business. We have spent over a decade building the relationship and the technology partnerships that enables us to do what we do today. Many of these partnerships are multibillion-dollar organizations. That takes time to establish as well as credibility. So let me explain you about we have direct connections with pharmacies, PBMs, switches, claim adjudicators, payment processing and reconcilers, data analytics providers, electronic health records, many more. So our 40-plus direct connections are -- in this space are important for us to provide the foundation upon which we can deliver accurate pricing, reliability and redundancy of all of our services. We believe that anyone is trying to enter into this space would take years and years to replicate the relationships and perhaps even harder to build the pipes with the different systems. Now let me transition to our proprietary technology. This is our Holy Grail, and I'm going to tell you more detail about this. This is decided into 4 parts. One is the routing engine. Second 1 is the pricing engine. Third 1 is our drug price page and fourth is our mobile experience. Let me go a little bit deep on the routing engine. So we have a proprietary prescription technology that sits in the middle of the ecosystem of the pharmacy transaction. So as you know that when you are at the pharmacy counter, the transaction goes from your pharmacy terminals to the back end of our whole system to judicate the claims before you get the price. And that's really important that we connect with so many people in this case, like it connects with a pharmacy, it connects with a B2B integrated ISP solutions. It connects to the switches. It connects to the multiple PBMs. The underlying layer is that we provide actually the -- this ecosystem provide a common interface, what we call is a common response, which is a standardized information to help the user to save at the prescription cost. While this sounds very complicated, but it all manifests at the pharmacy counter in a simple and transparent price point at the GoodRx app or on our website. This routing engine is all in one, I can say in a simple word, is a 1 payment solution that reduces the friction and simplifies the consumer and the pharmacist experience. Now let me move to the next 1 to the pricing engine. So our ability to route the transaction effectively relies on our ability to deliver accurate and optimal prices. This is where powerful pricing engine plays a very, very important role. There are 2 main elements in this. One is the accuracy and the second 1 is the optimization. So let me explain what is accuracy means. Accuracy is that -- what we are showing a price is that are correct and abide by the rules of contracts. To do this, we have to combine the elements of contract management, external data ingestions and the drug retail optimization. Then we ensure that the price presented to the consumer is indeed the price that consumer pays at the pharmacy counter. This is complicated, but it's at table stakes. The real magic comes into the optimization. And how do we ensure that the price that we are showing, which is most optimal for the consumers, pharmacies and ourselves. So our pricing optimization technology is built with a lot of machine learning algorithms. As you know, you guys must be doing a lot of relations about the AI and machine learning because of the ChatGPT as well as the Vertex AI, we use a lot of machine learning algorithms. Let me give you some flavors. It is linear optimization. We use a lot more pricing elasticity, deep learning as well as the propensity models. I can go a lot more detail, but not today. So I just wanted to give a little bit flavor on that. And how does it work? And what's the purpose? First is the important we want to make sure that the price optimization. We want to make sure the conversions -- first field conversions are important, -- and the last 1 is medical adherence. And these models have a lot many inputs. When I increase the number of inputs, it gives a lot more data. So a lot more results. So 1 is the website data, the behavioral data, rising elasticity, user experience, how they are doing, which pages they are visiting it, what is the relative price compared to their insurance price as well as a lot of data analytics data. So these are inputs. And all these things are done at a high level of automation so that the right pricing decisions are made at scale. I mean to explain you what is scale because we can run many, many algorithms parallelly. And for that, that is why I'm saying more scale is needed. And what is the -- end impact, is this allows our web experience or our mobile experience to deliver the offers, such as incentives, POS rebates or give the different price experience. And as you must have heard from Mike as well as Scott, that we're doing the lot more personalization pricing capability, that we are trying to deliver in a very short term. So let me explain you what that means. So this would take me a little bit that it's not just related to the drug, the pharmacy as well as the product combination, but it would take a step further to reflect individual's preference. So when we know your preference, we can make sure that we get much better personalization. So in addition to our advancing this pricing engine, which we built, we want to make sure that our routing engine has to be the next level. As I said, we have multiple initial models we are running it. We want to support as well as test and measure the impact of our claims on a regular basis as well as parallelly, which we have -- I can tell you, it's a unique ability for this company to do it at scale. So these are advancements. I just want to tell you guys, this is not trivial. Given that, if you know the pharmacy ecosystem, it's a 25, 30 years old technology -- most of the pharmaceutical system. I don't know whether you know NCPDP protocol, which is a binary protocol, most of the people may not know about this but, I'm telling you, this is pretty old technology. So these are our -- what I told about is all these are key back-end assets, but believe or not, we have a front end, which is a very, very critical asset for which makes us different. Our drug price page, as Divya said, there's a generic drug price page, there's a brand drug price page which we talked many times today, is really our heart and soul of our technology. We nearly had almost 140 million unique price page sessions in 2023. These price page is our key asset that enables us to deliver the value to pharmacies, pharma companies and consumer. Let me explain you. This page is very, very adaptable, with there are different configurations that contemplates pharmacy preference, geography, relative price between the pharmacies and drug trial. We are constantly iterating on this page in an effort to ensure it is engaging, it's converting and self-optimizing with the AI and machine learning algorithms. We are also exploring AI and the insurance integration use cases, to make our price page as valuable as forward-looking as possible. With 75% of our sessions coming from mobile web on -- also on our app, we built mobile-first mindset that is expected in the consumer internet, but often lacking in the health care. As you saw, the lot of reading about our iOS and Android app has 4.8 stars and 900,000 combined reviews. So clearly, we are doing something really right. Our apps are designed to easy to use. Let me explain you that we are using universal authentication. So when you're across the different platforms, we can have a seamless experience for our user. And we are building some native capabilities such as wallet integration, which you must have seen a lot of airline tickets, which put in your wallet or any tickets. And when you are closer to the airport, they pops up similar thing. We built it for our -- the cards, which we are using it for our consumers when they are near to the pharmacy system, pharmacy location, it comes up and they can use it at the pharmacy terminal. We are also exploring the capabilities such as the app clips on IOS and instant apps on Android, which is -- reduces the friction at the pharmacy. I can tell you what is the app clips is because many of the people don't have the apps installed and we wanted to make sure they get first experience without installing the apps, which is a shorter version of apps by scanning the QR code, they can be easily use it at pharmacy counter. So these are the things where we are trying to reduce the friction as much as possible. You must have heard from Mike that we are mostly focusing on e-commerce capabilities that we are talking on. And we are very excited that we are working on some of the initiatives, which will come pretty shortly. As Scott was mentioning to you guys that there's a friction at prescription journey, which is the manual entry of the BIN PCN, which is just like a credit card number to use yours CVV, your complete card number, then you use your ZIP code. Similarly, we have to use a BIN PCN in this case for pharmacy to use our card. And this is a painful experience because it's a lot of friction. So what we are trying to think is -- we're working with a lot of hardware and software partners to enable the 1 injection of the card data into directly POS terminals, while touchless NFC readers in pharmacies and API integration. And I'm happy to say that we just received first partner who is willing to work with us, and there's a contract, which we signed just yesterday to make sure that this experience will pretty soon get it into the -- some of the pharmacies as well as to the -- so that pharmacists will save a lot of time at the counter and the consumer will get better experience. Furthermore, we are also working on the apps, which connects beyond GoodRx and into the broader health care system. Let me explain you, we are integrating with Apple's Health app to pull these prescriptions and the EHR platforms, which will enable GoodRx to be a cross-platform patient adherence hub. So this is going to be a pretty strong influence because this will increase the adherence. This will increase a lot more push notification. And I want to make sure that this is coming pretty fast. Now let me talk about a little bit on the data side, which is very critical because that's 1 of the portion which we started talking about. So we have a massive pull of first-party data from our multiple products and services. We have consumers, SCP use our data, nearly 350 million site visit across website and apps in 2023. We get almost 100 million claims data annually paid claims. Then we have 320 billion daily data pricing point, which decides the price of each NDC, which is unique identifier for the prescription. Also, we also have de-identified third-party data, which is covering 3 billion annual pharmacy claim, which includes the insurance as well as the competitor data to get all the information to us. This is all have a self-sustaining feedback loop that help us to continuously improve our data and the business. So we see our ability to leverage aggregated data at a scale as an advantage. And we are incredibly proud of the technology that we built over the last 10 years, 10-plus years. And we strongly believe that putting the consumer first has enabled us to elevate the prescription experience by the making complex very simple, and we are excited to continue to build over the next 10-plus years. We are confident that because of the year continued investment, we made at scale -- we have sustainable advantage. While the investment has been made, it benefits are continue to drive our growth and margin expansions going forward. Now let me hand over to Karsten Voermann, our CFO, to discuss our long-term financial expectations for the business. As you know, Karsten is very operationally minded CFO, who focuses on driving performance. No one wants to drive the business and investor value more than Karsten. So I'm sure his views, his perspective will be very helpful for you guys to form your own views about the GoodRx upside potential. Thank you very much.

Hey folks. Thank you, Nitin. First of all, I'm Karsten, I'm the CFO here at GoodRx. And I'm fortunate in so far as I think I know pretty much everybody in the room, which is -- it's a pleasure to see you all and really grateful you all joined us. For those of you who don't know, I joined GoodRx about 4 years ago prior to our IPO after holding a variety of CFO roles in other companies, including Ibotta, which is a B2B, B2C marketplace; Mercury Payment systems, which like GoodRx is a high transaction volume tech company. And as really drawn to GoodRx for a couple of reasons. First of all, as you heard from pretty much all of us who spoke today, the mission was compelling to us as it is to many of our users. So really grateful for that. But more importantly, as a CFO, it's also because GoodRx is a great business. GoodRx has an amazing foundation of high cash flow and high adjusted EBITDA margins or profitability, which is once again combined with revenue growth and even faster adjusted EBITDA growth. So for me, that was exciting back then. It's equally exciting today. In fact, as I stand here today, I can say that the business has evolved really significantly since our IPO in 2020. It's especially evolved in an even faster rate, I'd say, over the last 12 months since Scott joined us about a year ago or so with our return to top line growth and our return to margin accretion. I'm the most excited I've ever been about GoodRx's prospects now. And so I'm going to tell you a little bit about why, and that's going to translate everything you've heard so far into our views on how it impacts the financials and our expectations for the next few years. So you heard from a bunch of our senior folks today about our business model. We talked about large TAM, large SAM, the evolution of the model, our strategic priorities, opportunities for growth, et cetera. So the goal now is just to translate that into financials, and then we'll move on to questions after that. So let's start by framing up sort of the unique characteristics that GoodRx has that define our investment thesis, and I'll get out of the way of the slide for a sec. As our team has shown today, we believe that the unique and compelling characteristics of GoodRx are ones that relate to the value proposition and its durability, first of all, for value chain constituents like pharmacies and pharma companies, in particular. And you see some of that manifested even in the recent announcement we made this morning in relation to Kroger. Transforming how we deliver value to pharmacies has been a key focus for the last couple of years, and we believe that we're in an incredibly strong position now. As Ryan mentioned, we've also invested over $1 billion into the brand and into marketing over the past decade. That $1 billion didn't stop having value yesterday that has continuous value moving forward given the nature of the assets like Ryan talked about, and that's money that has been invested that benefits us and benefits our investors going forward. We're loved by consumers and HCPs, and we've got a brand that has become synonymous with prescription savings. We believe that the historical investments we've made create an enviable platform and the awareness and goodwill is going to be valuable to us for quite some time. The market that we play in has a huge and growing approximately $13 billion SAM. And today, our penetration is only in the mid-single digits. That holds true for both our prescription transactions market offering and our manufacturer solutions offering. We believe that by delivering on the key priorities Scott shared earlier, consistent with our historical trajectory, we're going to be able to capture more of that SAM. And we believe our financial profile is attractive and poised to become better with accelerating top line growth, expanding margins and continued significant cash generation. Over the past 12 months, we began to see positive momentum in the business, both financially and operationally. In the third quarter of 2023, we returned to growth on an adjusted revenue basis. In the fourth quarter, that accelerated to about 7% and in the first quarter of 2024, it accelerated even further to 8% in the year-over-year adjusted revenue basis, and EBITDA margin grew 2% to 31.7%, which was a full 280 basis points relative to the year before, with adjusted EBITDA dollars growing 18% relative to the year before. So quite rapidly. And that's in a context where the sunsetting of our Kroger Savings Club in July 2024, the wind down of vitaCare, which was part of our manufacturer solutions offering, a hub services thing last fall. Those 2 things together meant that there's less contribution from both of those in Q1 of '24 than there was in Q1 of '23. Plus, as Ryan mentioned, when he's talking a lot about point-of-sale discounts that we use to catalyze user actions, whether it's filling the first script, filling an incremental script, I think Ryan talked about both those things, those items of point-of-sale discounts are accounted for as a reduction in revenue like coupons. And from that perspective, they represent almost $10 million more in 2024 than they did in 2023. All of these tempered our Q1 revenue growth or where it might have otherwise been. You've also heard about the strong traction that we've had with direct contracting with pharmacies as part of our flexible hybrid model, which aligns pharmacies' incentives with our own. Direct contracting though has not significantly impacted our revenue per MAC or per claim. If you follow that over the past few quarters, it's been quite stable or consistent for the last few quarters. That's one of the reasons we've seen adjusted EBITDA margins continue to accrete over the last while. We've brought the benefit of GoodRx to commercial insurance programs as well. And that's through our integrated savings program that Mike was talking about at some length and Scott foreshadowed as well. We're now working with our long-standing PBM partners, think Navitus, ESI, MedImpact, and, of course, Caremark as well. But we've been working with our long-standing PBM partners even more closely than we have in the past. These folks cover about 60% of eligible U.S. lives, and they allow us to, in combination, seamlessly deliver our compelling prescription discounts to their planned sponsors and employees. So a way for us to variabilize customer acquisition costs, which I love as a CFO, instead of paying it upfront like we do in our B2C business. And in that model, we also, importantly, much more than the CAC, access just more of the market that we wouldn't otherwise be able to reach or haven't previously tapped. We also believe that the ISP program generally showcases another important thing, which is that direct contracting and the direct contracting model hasn't impacted the desire of PBMs to work with us even more closely now that we're fired up in these programs. In our pharma manufacturer solutions offering, we continue to be focused on deal quality and standardized go-to-market programs, which we expect to scale rapidly and sustainably. Aaron and Divya discussed a lot of that. For example, leaning into differentiated programs like the one Divya talked about, in particular, like our brand drug point-of-sale discount solutions, which are really important to manufacturers and to us with -- you saw that chart with the growth from sub-5% to over 30% in market in a period of time [indiscernible] of our vitaCare manufacturer solutions offering, and that's contributed to margin growth, too, because that had been a drag on margins for a period of time. Briefly touching on balance sheet before I get into more detail on some of these other elements. We have a strong balance sheet, $533 million of cash and cash equivalents at the end of the first quarter. So jumping into the P&L and getting into a little more detail. As you can see, since the first quarter of 2023, adjusted revenues continue to grow with great flow-through driving adjusted EBITDA expansion as well. Our adjusted EBITDA margin went from the high 20% range in 2023 to almost 32% in the first quarter of 2024. We've been consistently executing against meeting or exceeding the guidance we've provided as well. Looking ahead, we're focused on sustainable and profitable revenue growth. On our earnings call last week, we gave Q2 guidance on the adjusted revenue side of approximately $200 million and adjusted EBITDA margins in the low 30s percent range. For the full year, we're targeting revenue of $800 million to $810 million top line on an adjusted revenue basis, representing approximately 6% growth at the midpoint. As we discussed on the 1Q earnings call as well, our 2024 growth is tempered by the same things that I mentioned in the context of first quarter, namely the vitaCare restructuring, the Kroger Savings Club wind down that we're doing around the middle of the year, continued investments in consumer incentives that shift P&L geography from S&M to contra revenue, et cetera. Those elements together sum up to $25 million or so which is significant. And this isn't even considering the impacts of things like to change health care switch issues, which were not super material still impact us by a few million dollars for the rest of the year. So moving on from where we are now to sort of the future and expanding the time horizon we're talking about, for 2025 and beyond, we don't expect similar cuts to our offerings to impact revenue. So we'd anticipate our revenue growth to be a few percentage points higher than our 2024 adjusted revenue growth guidance, which again is 6% at the midpoint for all those factors. That's part of the basis for why over the next 3 years, we're expecting a top line CAGR of 6% to 12%, depending on how our initiatives that you heard about today, like ISP, hybrid and direct contracting and pharma manufacturer solutions are going to inflect. We also believe there are incremental opportunities for upside that can manifest and drive the range higher. I'll recap some of them, but the rest of the team already spoke about them. For adjusted EBITDA margin, we're targeting a step up to over 35% as we focus on continued margin expansion. In large part, that happens due to the strong flow-through of revenue to adjusted EBITDA. We're still going to ensure that we're investing in the business significantly and in sufficient basis to support our longer-term growth strategy. But even with that, the flow-through continues to be excellent. Based on these assumptions, we believe that we can return to being a Rule of 40 company, like Scott mentioned right at the beginning, just a book and back comment. Now let's look at the 3 key drivers of that growth, and we'll use the same illustrative concept that Scott shared earlier and Mike relied on a little bit as well because I think it works really well. First, we make money in our prescription transactions revenue from claims, the same ones that define our monthly active consumers or MAX that we've disclosed since our IPO. So simply claim count multiplied by fee per claim, which is fee per claim being basically like CAC to pharmacies and PBMs are the key drivers. As you'll see in the next slide, we're modeling modest prescription marketplace growth and also modest share growth, which will grow our claims. Second, we're modeling an expansion of our existing B2B ISP offerings, the one we've talked to you at some length today as we expect to penetrate existing PBM customers further and also add new PBMs to the platform, both of which will grow claims. More detail on that to come to. And third, we're modeling continued scaling of pharma manufacturer solutions through selling more of our existing solutions to brands and also adding more brands and adding more pharma clients. So average fees per client likely go up. Number of clients goes up. As shown on this slide, more clients multiply by more money, obviously, makes the offering grow. As the figures above are pretty illustrative though, I think our folks on our side -- on our attorneys in particular, would like us to encourage you to refer to our earnings materials and refer to specific Q1 guidance we made for specific guidance ranges on each of these offerings. You'll also notice that these don't exactly add up, that's due to rounding. We see the following areas contributing to growth, as shown on this slide. In our marketplace offering, first, like I said, modest prescription market share growth; and second, expansion of our existing B2B ISP offering; and finally, from the continued scaling of ManSol. In terms of the rough Quanta that each of those contribute to the growth range we're talking about, we expect the overall contribution of those things to be about equal in their contribution to that 6% to 12% goal post growth range we're putting out there as a 3-year top line growth CAGR. These assumptions for growth in each area are importantly consistent with what we've seen in recent periods. So, not apparent, consistent is the big point you're supposed to take away from all that and that I hope you do. Beyond that, even on top of these things, we see real meaty areas of opportunity that we're working on that we could believe could drive incremental outsized results. And those outsized results could take us above the 12% multiyear CAGR that we've been outlining. So we certainly don't see it as a cap, and we see it as something that we continue to strive towards driving to and exceeding. First, we -- a whole bunch of us have talked about GLP-1s. I'm going to be really quick on this because of that. Incredibly popular drugs, very expensive, expected to become more popular. Importantly, only about 25% of employers back last year in 2023 covered them for obesity, which obviously is a huge use case. And affordability solutions are going to be key, particularly as Aaron said, once the supply-demand imbalances are fully addressed. The affordability solutions become key. That means GoodRx should be the place to go since it's going to become more and more of a consumer direct category. We're working on solutions now to reduce the cost of GLP-1s and help make them more accessible. We see this as a huge opportunity for us as we work to become the destination. The with a capital T destination for more affordable GLP-1s. Next thing I want to talk about a little bit is expanding the B2B ISP use cases. Effectively, these work to reduce the cost of covered medications for planned. But as we discussed earlier, that's not the end of what this could be. There's a huge problem with drug coverage overall. It was brought up by Scott at the very beginning when we talked about the fact that an average of 650 medications are excluded from the 3 largest PBMs, 2024 formularies. And as Scott mentioned in his section too, a majority of patients, I think the stat was 60%, walk away from these at the counter, these noncovered meds. So we think we're uniquely positioned. That's probably the best way to put it, to expand into brand use cases with our B2B ISP program and with our B2B partners, the pharm manufacturers to help drive meaningful impacts on patients, while also helping to solve PBM challenges, both economic challenges, and frankly, challenges in the court of public opinion, associated with formulary constraints and the fact that consumer borne cost is going up. The other potential accelerator that we believe could help get us above that 6% to 12% range, again, not modeled in like these other things, if we execute on it, is the evolution of our direct and hybrid contracting strategy that you heard a lot about from Mike Walsh in particular. And it's clearly working. As you know from the announcement this morning, we see this as an area of continued focus. And we think, particular with Kroger, not to call out that too specifically, there's going to be additional incremental opportunity for growth. Before 2022, our volume at Kroger was significantly higher than it is today, as many of you have been following the company know. Finally, we're also working on new innovation across all aspects of GoodRx. Nitin told you a lot about that. The reality though is with new innovation, it's difficult to model out because it's new. So we're not factoring all the innovation work we're doing into our future growth projections. That's incremental. Our investments into these areas, we think should be additive, and we're confident in that or we wouldn't be making them. And we expect the investments to remain consistent with roughly our historical spend. So that means that there's a lot more work going into things that could add incremental upside. And these are just examples like I'm not trying to be all encompassing here of all the ideas that we have in the company as drivers. But there's some that we believe have the potential to be really meaningful and really accessible to us, things like GLP-1 impact, incremental ISP use cases, direct contracting with Kroger in particular, as a potential upside as well. And those are the things that I think could take us to a high end and above the 6% to 12% CAGR growth range that we've been talking about all day, 3-year CAGR growth range. So I'm going to dive a little deeper into specific drivers, but I'll be quick because I think we're coming towards Q&A, which I'm looking forward to. The first growth driver is going to be growing share in the prescriptions market. As Mike talked about earlier, we believe that by strengthening our pharmacy relationships, delivering pricing automation and enhancing GoodRx Gold, that's going to help us achieve that 6% to 12%. And again, that's consistent with the trajectory we're on now. I'll note that the Prescription market typically grows every year anyway, and we've historically grown faster than the market as we take share, which grows our claims count. Above and beyond that, we're focused on efforts to improve the pharmacy experience through innovation like the ones Nitin talked about, deliver personalized pricing, grow Kroger claims, which would be incremental. And all of those things, we think, have the ability to potentially drive us even faster. Our claims-based revenue, importantly, also has high margins, high cash conversion, given it's a largely fixed cost offering. So again, I'd say that to point to flow-through and the impact this has on our profitability metrics. We see this as an opportunity to expand our B2B integrated savings program as well. We launched the program just last year, as Mike said, so we're still in the early stages of the ISP evolution, and we expect continued growth, again, that is SAM expanding and largely incremental to our D2C offering. So in other words, very little cannibalization with it, which means that we're accessing new parts of the SAM. We're focused on a few things to grow those faster. One is more PBMs, 2 is more planned sponsor plans within PBMs. Three is pharmacy acceptance. And then the final one that is incredibly valuable to us and largely within our control is optimizing our win rate and increasing that. In our 6% to 12% targeted growth range, we're anticipating a growth CAGR of about 60% to 90% annually for ISP through 2026 because of all these efforts. And that doesn't contemplate expanding use cases for the ISP program like the ones I just talked about, such as expanding into noncovered drugs, as opposed to the ones that are in our partner PBM's formulary today. Those things could drive the growth rate higher. On our pharma manufacturer solutions offering side, that offering has grown in revenue by about 4x since 2020. So pretty significant. The CAGR on that is about 60%. As we look forward into the future, we anticipate continued rapid growth in that offering as well, again, driven by winning more top brands, demonstrating our value to pharma, as Divya talked about in some detail and directly lowering brand drug prices through things like our point-of-sale efforts. This assumes our current macro trends and pharma ad spend persists. And on our Q1 earnings call last week, we guided to revenue and adjusted revenue for this offering of about $105 million to $115 million for 2024. The expected growth rate implied by that guidance though, is tempered by, again, the vitaCare issue that I brought up a couple of times, which contributed high single-digit millions of dollars to our top line in 2023 and just to make the point completely clear is contributing exactly $0 to 2024. So as you look at growth rates, that's something to consider. We're expecting our trajectory over the next few years of pharma ManSol to be consistent with the implied growth rate of that offering, excluding vitaCare, which is why I spent a little time talking about vitaCare. So again, excluding that from the denominator. We're focused on deal quality and standardized go-to-market program. So those things we think are going to scale rapidly and sustainably. And we look forward to continuing growth of the offering, targeting 20% to 30% annually, over the next 3-year period. So overall, we expect our foundational and planned growth initiatives, the ones that are in the -- that I talked about being included to result in a long-term growth projection of about 4% to 9% for our prescriptions marketplace offering. And then that's complemented by 20%, 30% growth for our pharma manufacturer solutions, and that combines given that the prescription transactions offering is larger to a combined rate of about 6% to 12%, which is the goalpost again that we've all been talking about before any incremental opportunities for upside that could drive those rates potentially higher. As we accelerate our revenue growth, we expect to see operating leverage result from it with a high flow-through of that incremental revenue to adjusted EBITDA margin, which would increase our profitability and ultimately, with cash flow as well. Even though we're continuing to invest in some of the areas Nitin talked about and some of the areas that Ryan talked about. As we look forward to that, we're targeting a margin profile of about 35% with EBITDA margins growing over the next couple of years, which we believe would return us to being about a Rule of 40 company. Talking a bit about capital allocation. Capital allocations continue to focus on high-return investments for shareholders. And maximizing value with consistent reinvestment in the business, evaluating the potential for debt reduction and historically, we've completed opportunistic share repurchases as well. Again, as I mentioned before, we have a healthy cash balance of $533 million at the end of the first quarter, low net debt, low leverage and significant liquidity. So we have the flexibility to continue to evaluate the optimal capital structure going forward. So to summarize, what we're really hoping you take away today is that we have deep and durable relationships with pharmacies, especially through our hybrid direct multiyear contracts as well as deep relationships with pharma manufacturers. Those create a unique value proposition and are important assets to drive growth and margin growing forward for us. We've built an enviable brand over the last decade that Ryan talked about, which is another one of our key assets that we can leverage way into the future. We believe we're operating in an incredibly attractive market both in the prescriptions marketplace offering side and our pharma manufacturer solutions offering and our penetration is low. We're really pleased that we returned to growth, and we believe we have a great path to continued growth and to margin expansion going forward. And that's it for me. With that, I'm going to turn it over to Scott for closing remarks, and then we can get into Q&A. Thank you all.

[indiscernible] enough content. I'm basically a transition while Chairs come up for Q&A. So I'm just up here. I wish it was a pretty face, but we definitely know that's not the case. Thank you for actually bearing with us today. This is great, and it's actually a terrific time, not just to do this with the investor community, but a great time for the company in general because a year ago, again, there was questions about, hey, priorities, business model. And I hope everybody's walking out here today with a sense of several things that are honestly pretty known and pretty straightforward. And I think the first of which is the value proposition of this company and the need we're filling, which is affordable prescriptions, it's a hell of a big need, it's not going anywhere. And the trends that are backing that are going to continue. And we at GoodRx, do some really unique things to solve that need for affordable prescriptions that gets me pretty fired up. And there were questions about our durability and the value chain. But again, if you kind of draw in the stories in the proof points, that it's not just our position is there, but actually, we play a super valuable role connecting these different constituents. So I actually think our point in the value chain today, gosh, it's actually a strength whereas a year ago, there were probably questions from this community about where it is. So it matters and more important. And then just financially, as you draw down to, hey, is the progress that we're making showing up in our results? We've returned to growth, right? It's flowing through to profitability. And I hope everybody is listening and taking away from these things that what we're working on makes sense for people that we serve, it's the first order things that are showing up in the numbers. And these areas that we're saying are unmodeled are actually just the next step on where and how we can evolve the business. That to me, are the good things as both an operator and if I could be so bold as to speak for an investor. I always want more chips on the table than I need to cash out, right? I always want to have more moves that are in our control than you necessarily need to work. And I think the thing for me, objectively after a year is the things that are underway, they're the right stuff. They matter in the outside world, when we do them well, they show up in numbers, we get results. That's important. And the things that we're doing in a couple of different ways, thread together and when you look at them in totality, they give you a couple of different ways to continue to evolve the business and win. So, for me, as obviously as an operator and a leader of the company, I take comfort from that. And as an investor, I would hope people who are interested might too. All right. With that, I'm going to bring the gang up and we'll move on to Q&A. All right, everybody, come on rolling up.

So thank you, Scott, and thanks to everyone who submitted questions during the presentation. Willing to get through as many as we can today. So we will jump right in. Okay. So you mentioned having more work to do in the context of retail contracting. Are there certain areas that you're focused on? We'd love to hear more.

Sure. So when you think about our network composition today in terms of retail pharmacies, we do slightly over index on some of the larger chains and grocers. So a lot of our contracting efforts have really been focused on those partners. I did mention we had about 7 out of the 10 of our biggest partners under some form of direct agreement. I'd say that there's a big effort focused on getting that to 10 out of 10 in some form of direct agreement. And then also kind of maybe finishing some of what we started in the past. I mentioned this notion of doing hybrid to kind of get going and get some momentum. I feel like we have a few partners where we need to go back and kind of complete what was started. So that's a big focus area for us is nailing our big partners. And the second part, I think that we'd want to focus on is we're really under-indexed today on independents and smaller regional grocers. And we need to make a bigger effort there to get them in network, accepting our cards at a rate that's amenable to them. So I think that's kind of the second prong of some of the work that's left to do and where we're going to focus our time going forward.

Okay. Can I hop in just because awesome and the independent point is one where it's actually a pretty easy answer to that we can bring to them that's pretty cool and is going to be honestly great for independents. So we'll kind of get to that. I'm going to take the question and frame it a little differently that isn't just contracting. It's actually just working with retailers and merchandising. There was an example in one of the pages that was shown, but it's a great proof point, which is, oh, with Walgreens, we -- during cold and flu season, took a set of drugs and promoted them and drove them into the market and it like worked out great for Walgreens, it worked out great for us. Like that's what we should be doing, like for everybody around it. And so -- the awesome thing for me about what we're doing with the retail, like all this contracting stuff is like, hey, we're going to make you money. And the promise of GoodRx is then we're going to be this great merchandising tool and vehicle on all sorts of ways, and we are such at the early stages just because of how the nature of the interaction between GoodRx and retailers used to be that now we're not contracting and sending legal documents back and forth, we're like getting together and being like, hey, how are we doing? What about this idea? What about that idea? And as we just roll that forward, guys, there's going to be a ton of goodness in it. You just -- this is sort of how honestly, the business you would have always wanted to run it and how -- frankly, it always should have been. So we're going to get there honestly, as we go now. And as you can tell, I get kind of excited about it.

All right. So on the Pharma ManSol side, how did these manufacturer relationships work? Do you receive a flat fee per prescription? Or is it based on the whack of the drug? Could we give a little bit more color around that?

I'll take it. There's a couple of levers that drive pricing. The WACC of the drug or the list price, wholesale acquisition cost to be precise, is certainly one driver of pricing. The other big driver is what is the value that we can bring to the brand, right, in terms of traffic, engagement. So those are all metrics that factor into our pricing so that it's not a one-and-done deal. It's actually a sticky relationship, as I talked. I talked about ROI and value that we're delivering value because of high traffic, high engagement and of course, the WACC of the drug also factors in.

Now turning to ISP. If there is a gating factor on the PBM as it relates to your ramp and growth of the program, is there anything you can do to influence the pace of the uptake?

I guess I'll pop in as these guys are backing the mic back and forth over there. Yes. I mean, I think right now it's working with PBMs for the most part. There are over time, hand-in-hand with them, we can get particularly the benefits consultants who have really drawn on this program. So there -- we're not -- we're not completely takers on it. But again, that will be a slow thing over time. If I could, 2 comments on ISP. Hopefully, that everybody is taking away on it. The first is -- it is this nice, I'd say, incremental move to the core business that, again, just adds durability to it. But it isn't this overwhelming thing that everybody should honestly think about it, and I think that's a good thing. And then broadly, it is a capability, and this hit a couple of times, and I think maybe my colleagues are going to talk about it more. When you start to wrap what we're doing for brands, together with uncovered formulary, like that's where stuff gets really exciting. And so, to answer the specific question, yes, a little bit, and we'll do it with our partners. But again, the big gap is this uncovered formulary or certain drugs where honestly, cash is just a better way to go. And if you're thinking about the themes from today, really the promise is, wow, look, we're kind of the one place where these 2 things can come together for brand pharma.

Okay. Now turning to margins. your S&M spend is still sitting at around 40% with direct contracting and ISP, it would seem you have lower acquisition costs. Should we expect S&M as a percent of revenue to fall? And is any of that assumed in your 2026 EBITDA target?

Sure. That sounds like a [ carson ] question to me. Yes. So S&M has been falling pretty consistently over the past few quarters, as you've seen. And we expect some continuation of that going forward. I think a couple of points to make. First of all, as Ryan said, we're consistently investing in the brand because our B2C offering and the work we're doing there continues to be a very attractive area for growth for us, too. The paybacks and the ad spend we're doing in that area are consistent today with what they were at the time of the IPO, which was also -- that was 4 years ago for those who don't remember, and that was also consistent with where they were before that. Meaning, as long as we can efficiently spend and get great payback on our DTC spending, too, we'll continue to do that. That said, the way the question was phrased, I think, was very appropriate, which is as we do more B2C-related work, does that have the potential to creep down as a percent of revenue? And the answer to that is yes, it does.