Online health and wellness company Hims & Hers bumped its full-year revenue forecast higher following strong growth in subscribers and double-digit net income in the first quarter.
The company, which went public three years ago, sells hair loss and sexual health products and offers telehealth services. It saw its online subscribers grow 41% year over year to 1.7 million in the first quarter, Hims & Hers announced in its first-quarter 2024 financial results Monday.
The company's quarterly revenue jumped 46% year over year to $278.2 million, sailing past the $268.7 million Wall Street analysts were expecting. A year ago, the company brought in revenue of $184 million.
Hims & Hers reported net income of $11.1 million, or 5 cents per share on an adjusted basis, topping Wall Street estimates of one cent in earnings per share. That compares to a loss of $10 million a year ago.
Adjusted EBITDA was $32.3 million for the first quarter of 2024 compared to $6.1 million for the first quarter of 2023.
Buoyed by strong growth, Hims & Hers raised its full-year guidance to a range of $1.2 billion to $1.23 billion and adjusted EBITDA to a range of $120 million to $135 million. That compares to its previous projection of revenue between $1.17 billion to $1.2 billion and adjusted EBITDA of $100 million to $120 million.
The multispecialty telehealth platform connects consumers to medical care for numerous conditions and primarily focuses on sexual health, men's and women's dermatology, mental health and weight loss. The company sells prescription and over-the-counter drugs online as well as personal care products and launched its weight loss business late last year.
Hims & Hers has increasingly focused on offering personalized treatments to consumers by leveraging technology and data.
"Personalization continues to resonate with users. The number of subscribers opting for personalized subscription has nearly tripled over the course of the last year to north of 600,000 subscribers, representing just over 35% of subscribers on the platform," Andrew Dudum, CEO and co-founder of Hims & Hers, said during the first-quarter earnings call.
He added, "We leverage hundreds of thousands of interactions on our platform to facilitate an understanding of key consumer concerns and challenges that may prevent individuals from reaching optimal outcomes."
The company partners with leading medical institutions and experts within medical specialties to provide access to tailored clinical solutions. "This allows providers on our platform to meet their patient's clinical needs at an individual level, targeting things like side effects and adherence, their personalized dosages, a variety of product form factors to drive adherence and the ability to address multiple health conditions with one solution. Our infrastructure and scale provide us the ability to equip providers with a breadth of personalized treatment options at mass market prices," Dudum said.
Hims & Hers launched its much-anticipated weight loss program in December that includes digital tracking tools, educational content and access to medications. The new offering, however, does not include prescriptions for the trendy new weight loss medications known as GLP-1s, at least for now. Dudum said the company would likely jump into the GLP-1 market "soon."
In previous earnings calls, Dudum has said that many of the company's core clinical specialties have the potential to deliver more than $100 million of revenue in 2025.
Hims & Hers executives see a long runway for growth as the company's telehealth-based platform removes friction for consumers to get access to treatments for things like hair loss, erectile dysfunction and weight loss.
The company also is eyeing opportunities to expand into new health and wellness categories.
"There are categories that we are excited about that we talked about in the past: hormonal balance, menopause, testosterone, pain management, insomnia. These are categories we've always talked about and believe there's a lot of people struggling and opportunity to deliver hyper-personalized treatments at very affordable prices," Dudum said.
Shares of Hims & Hers dropped sharply Friday after Dudum posted a comment on X (formerly Twitter) about on-campus protests against the war in Gaza.
In a updated post on X and during his prepared remarks during the earnings call, Dudum clarified his remarks and said his words "were misconstrued by some."
"I in no way condone nor support acts or threats of violence, antisemitism or intimidation. And there's absolutely no justification for violence on our campuses. Every student deserves to feel safe without fear of harm or being targeted for who they are. I am deeply saddened that my support for peaceful protest has been interpreted by some as encouraging violence, intimidation or bigotry of any kind," he said during the earnings call.
Dudum, who identifies as Palestinian-American with roots and family in the West Bank and Gaza, encouraged business leaders to call for a cease-fire in the region in a post on Medium in November.
The company saw its stock rebound Monday in after-hours trading. The stock jumped as much as 17.1% in trading on Tuesday and held about a 6% gain for the day.
For the second quarter, Hims & Hers expects revenue of $292 million to $297 million and adjusted EBITDA of $30 million to $35 million.
Hims & Hers Chief Financial Officer Yemi Okupe said, "We are confident that ongoing investment in a broad offering of high quality, personalized solutions at affordable prices, combined with a trusted brand and best-in-class technology platform, will position us to achieve consistent top and bottom line growth for the foreseeable future."