As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the healthcare technology industry, including GoodRx (NASDAQ: GDRX) and its peers.
Healthcare Technology
The 8 healthcare technology stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results.
Weakest Q2: GoodRx (NASDAQ: GDRX)
Started in 2011 to tackle the problem of high prescription drug costs in America, GoodRx (NASDAQ: GDRX) operates a digital platform that helps consumers find lower prices on prescription medications through price comparison tools and discount codes.
GoodRx reported revenues of $203.1 million, up 1.2% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a disappointing quarter for the company with EPS in line with analysts’ estimates and a significant miss of analysts’ customer base estimates.
Interestingly, the stock is up 4.9% since reporting and currently trades at $4.56.
Read our full report on GoodRx here, it’s free for active Edge members.
Best Q2: Privia Health (NASDAQ: PRVA)
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Privia Health reported revenues of $521.2 million, up 23.4% year on year, outperforming analysts’ expectations by 10.9%. The business had a very strong quarter with a solid beat of analysts’ sales volume estimates and a beat of analysts’ EPS estimates.
Privia Health achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.9% since reporting. It currently trades at $24.13.
Is now the time to buy Privia Health? Access our full analysis of the earnings results here, it’s free for active Edge members.
Evolent Health (NYSE: EVH)
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Evolent Health reported revenues of $444.3 million, down 31.3% year on year, falling short of analysts’ expectations by 3.3%. It was a softer quarter as it posted a significant miss of analysts’ EPS and sales volume estimates.
Evolent Health delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 14.9% since the results and currently trades at $8.25.
Read our full analysis of Evolent Health’s results here.
Hims & Hers Health (NYSE: HIMS)
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Hims & Hers Health reported revenues of $544.8 million, up 72.6% year on year. This print lagged analysts' expectations by 1.1%. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.
Hims & Hers Health pulled off the fastest revenue growth among its peers. The company added 73,000 customers to reach a total of 2.44 million. The stock is down 14.3% since reporting and currently trades at $54.38.
Read our full, actionable report on Hims & Hers Health here, it’s free for active Edge members.
Tandem Diabetes (NASDAQ: TNDM)
With technology that automatically adjusts insulin delivery based on continuous glucose monitoring data, Tandem Diabetes Care (NASDAQ: TNDM) develops and manufactures automated insulin delivery systems that help people with diabetes manage their blood glucose levels.
Tandem Diabetes reported revenues of $240.7 million, up 8.5% year on year. This number topped analysts’ expectations by 1.5%. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and a significant miss of analysts’ sales volume estimates.
The stock is up 3.6% since reporting and currently trades at $14.97.
Read our full, actionable report on Tandem Diabetes here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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