GoodRx

GoodRx: $400M revenue, $100M profit, under 10 years old

Sam breaks down GoodRx ahead of its IPO: it does roughly $400M in revenue and $100M in profit as a privately held company less than a decade old, by surfacing cheaper cash prices for prescription drugs.

“They get you cheap drugs and they're going public and it's like crazy profitable. They make like $400 million in revenue and like $100 million in profit as a privately held company that's only— that's less than 10 years old.”

The best businesses sit as a profitable layer on top of broken systems

Sam praises GoodRx and Script Relief as great companies because they insert a thin, highly profitable layer on top of the existing healthcare middleman mess and deliver obvious value, cutting bills from $2,000 to ~$100.

“these are amazing companies because it truly provides value to the person using it. You know, like, my bill went from $2,000 at the pharmacy to like $100, right? And it's so profitable. So it's an awesome company.”

Steal thisLook for bloated, middleman-heavy systems and build a thin software layer that delivers obvious savings to the end user.