XML 33 R21.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with
accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the
Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures
normally included in our annual consolidated financial statements prepared in accordance with GAAP have been condensed
or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with our audited
consolidated financial statements for the year ended December 31, 2023 and the related notes, which are included in our
Annual Report on Form 10-K filed with the SEC on February 29, 2024 ("2023 10-K"). The December 31, 2023 condensed
consolidated balance sheet was derived from our audited consolidated financial statements as of that date. The condensed
consolidated financial statements include, in the opinion of management, all adjustments, consisting of normal and recurring
items, necessary for the fair statement of our condensed consolidated financial statements. The operating results for the
three months ended March 31, 2024 are not necessarily indicative of the results expected for the full year ending
December 31, 2024.
There have been no material changes in significant accounting policies during the three months ended March 31, 2024
from those disclosed in “Note 2. Summary of Significant Accounting Policies” in the notes to our consolidated financial
statements included in our 2023 10-K.
Principles of Consolidation Principles of Consolidation
The condensed consolidated financial statements include the accounts of GoodRx Holdings, Inc., its wholly owned
subsidiaries and variable interest entities for which we are the primary beneficiary. Intercompany balances and transactions
have been eliminated in consolidation.
Use of Estimates Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements,
including the accompanying notes. We base our estimates on historical factors; current circumstances; macroeconomic
events and conditions; and the experience and judgment of our management. We evaluate our estimates and assumptions
on an ongoing basis. Actual results can differ materially from these estimates, and such differences can affect the results of
operations reported in future periods.
Certain Risks and Concentrations Certain Risks and Concentrations
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash,
cash equivalents and accounts receivable.
We maintain cash deposits with multiple financial institutions in the United States which, at times, may exceed federally
insured limits. Cash may be withdrawn or redeemed on demand. We believe that the financial institutions that hold our cash
are financially sound and, accordingly, minimal credit risk exists with respect to these balances. However, market conditions
can impact the viability of these institutions. In the event of failure of any of the financial institutions where we maintain our
cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or
at all. We have not experienced any losses in such accounts.
We consider all short-term, highly liquid investments purchased with an original maturity of three months or less at the
date of purchase to be cash equivalents. Cash equivalents, consisting of U.S. treasury securities money market funds, of
$460.5 million and $605.5 million at March 31, 2024 and December 31, 2023, respectively, were classified as Level 1 of the
fair value hierarchy and valued using quoted market prices in active markets.
We extend credit to our customers based on an evaluation of their ability to pay amounts due under contractual
arrangements and generally do not obtain or require collateral. For the three months ended March 31, 2024, one customer
accounted for 12% of our revenue. For the three months ended March 31, 2023, two customers accounted for 13% and 11%
of our revenue. At March 31, 2024 and December 31, 2023, no customer accounted for more than 10% of our accounts
receivable balance.
Equity Investments Equity Investments
We retain minority equity interests in privately-held companies without readily determinable fair values. Our ownership
interests are less than 20% of the voting stock of the investees and we do not have the ability to exercise significant
influence over the operating and financial policies of the investees. The equity investments are accounted for under the
measurement alternative in accordance with Accounting Standards Codification ("ASC") 321, Investments – Equity
Securities, which is cost minus impairment, if any, plus or minus changes resulting from observable price changes. Due to
indicators of a decline in the financial condition of one of our investees, we recognized a $1.8 million impairment loss on one
of our minority equity interest investments during the three months ended March 31, 2023, which was presented as other
expense on our condensed consolidated statement of operations for that period. We otherwise have not recognized any
changes resulting from observable price changes or impairment losses on our minority equity interest investments during the
three months ended March 31, 2024 and 2023. Equity investments included in other assets on our condensed consolidated
balance sheets as of March 31, 2024 and December 31, 2023 were $15.0 million.
Recent Accounting Pronouncements Recent Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 
2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU is intended to enhance the
transparency and decision usefulness of income tax disclosures. The amendments in this ASU address investor requests for
enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information.
This ASU applies to all public entities and will be effective for fiscal years beginning after December 15, 2024, and for interim
periods for fiscal years beginning after December 15, 2025. Early adoption of this ASU is permitted. We are currently
evaluating the impact of the adoption of this ASU on our consolidated financial statement disclosures.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable
Segment Disclosures. The ASU expands public entities’ segment disclosures by requiring disclosure of significant segment
expenses that are regularly provided to the chief operating decision maker and included within each reported measure of
segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a
reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public
entities with a single reportable segment. This ASU applies to all public entities that are required to report segment
information in accordance with ASC 280, and is effective for fiscal years beginning after December 15, 2023 and is effective
for interim periods within fiscal years beginning after December 15, 2024. Early adoption of this ASU is permitted. We are
currently evaluating the impact of the adoption of this ASU on our consolidated financial statement disclosures.