Key points
- Hims & Hers is a telehealth platform offering health and wellness solutions that has expanded into primary care and weight loss programs.
- Hims & Hers grew revenue 47% year-over-year to $246.6 million, with a gross profit margin of 83% turning the corner on GAAP profitability and raising its full-year 2024 revenue guidance .
- The company grew its membership by 48% year over year to 1.5 million subscribers.
- 5 stocks we prefer to Hims & Hers Health
His and Hers Inc. NYSE: HIM is a telemedicine platform in the medical industry that has turned the corner on GAAP profitability. The company began by offering convenient, simple, and discreet erectile dysfunction (ED) prescription solutions for men, but has since expanded its offerings to primary care and health and wellness products, including solutions for weight loss for men and women.
The company has also focused on incentivizing longer-term subscription plans to strengthen its net orders and average order value (AOV). Hims & Hers has carved out a solid niche in the telemedicine segment compared to larger platforms Teladoc Health Inc. NYSE:TDOC, Life MD Inc. NASDAQ: LFMD AND American Well Co. NYSE:AMWL.
An expanded portfolio of product offerings
Hims & Hers offers personalized health treatments. Its offerings have expanded beyond sexual health solutions to include dermatology, hair loss, mental health, primary care and weight loss, all online or through its mobile app. The company uses a network of licensed medical professionals to perform online assessments and prescribe medications needed for diagnosis.
It offers cheaper generic versions of popular drugs such as Zoloft, Lexapro, and Wellbutrin for anxiety and depression, and generic and brand-name Viagra and Cialis for erectile dysfunction. Its mental health segment has grown to more than 130,000 members. Hims & Hers does not currently offer prescriptions for GLP-1 weight loss drugs, but plans to offer them when prices become more affordable.
The rechargeable subscription model helps build customer loyalty
Most his and hers products are refillable, which favors a subscription model. The company offers discounts for extended subscription plans as an added incentive to sign up for long-term subscriptions. Online support is included in subscriptions. Patients communicate with medical professionals via the app, not over the phone.
A strong quarter in both top-line and bottom-line terms
On February 26, 2024, Hims & Hers reported fourth-quarter 2023 profit of 1 cent, beating consensus analyst estimates by 3 cents. Net income rose to $1.2 million with adjusted EBITDA profitability of $20.6 million. In the same period a year ago, the net loss was $10.9 million. Gross margins were 83% year-over-year, up from 79% year-over-year in the year-ago period. Revenue increased 47.4% year over year to $246.6 million, beating consensus estimates of $245.84 million. Subscribers increased 48% year over year to 1.5 million.
Showing growth in key financial metrics
Compared to a sequential level, there were some declining metrics. Monthly online revenue per average subscriber fell 4% year-over-year. This is due to the push to get members to sign up for long-term memberships to get discounts. Net orders increased 24% to 2.3 million. AOV grew 18% to 103 million.
The company raised its guidance
Hims & Hers gave upward guidance for first-quarter 2024 revenue of $267 million to $272 million versus consensus analyst estimates of $253.27 million. Adjusted EBITDA is expected to be between $22 million and $27 million, reflecting an adjusted EBITDA margin of 8% to 10%. Full-year 2024 revenues are expected to be in the range of $1.17 billion to $1.20 billion versus consensus estimates of $1.1 billion. Adjusted EBITDA is expected to be between $100 million and $120 million, or an adjusted EBITDA margin of between 9% and 10%.
HIMS CEO Offers Bullish Commentary
Hims & Hers co-founder and CEO Andrew Dudum commented, “In 2024, we expect to exceed $1 billion in revenue and deliver our first full year of net profitability through a continued focus on creating personalized treatments and accessible in each of our core specialties.” . We believe this approach will significantly break down barriers that prevent people from seeking care, which will allow us to bring these unique offerings to tens of millions of subscribers over time.”
His & Hers Health analyst ratings and price targets I’m on MarketBeat. Find the shares of his colleagues and competitors of Hims & Hers Health with MarketBeat Stock Screener.
Ascending triangle daily breakout pattern
The daily candlestick chart on HIMS illustrates an ascending triangle breakout pattern. The ascending trendline forms at $8.51 on February 5, 2024, rising towards the flat upper trendline at $10.13. HIMS began releasing its Q4 2023 earnings report, and at the time of release, it remained at $11.38. Shares rose to as high as $13.92. The daily relative strength index (RSI) has risen above the overbought 70 band. The pullback support levels are at $12.34, $11.38, $10.29, and $9.28.
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