Hims & Hers grew its subscriptions by 95% in 2021, reaching 609,000 members as it significantly expanded into new categories and conditions over the past year.
The consumer telehealth and wellness brand's full-year revenue jumped 83% year over year to $272 million compared to $149 million in 2020.
During the fourth quarter of 2021, the company's top line grew 104% year over year to $85 million. The company reported revenue of $42 million in the fourth quarter of 2020. Hims & Hers' fourth-quarter revenue beat Wall Street analyst estimates of $77 million.
"While so much has happened this past year, the reality is that we are in the earliest chapters of our company's life," Andrew Dudum, CEO at Hims & Hers, said during the fourth-quarter earnings call this week. "Today, a small fraction of healthcare is delivered online. But what was true for e-commerce in the '90s is true today for digital health. The wave is just beginning and only growing."
Dudum said platforms like Hims & Hers are at the forefront of making people's lives easier, "giving them access to treatment and services, doctors and specialists that many people are not otherwise able to obtain at transparent prices and add a level of care and respect often not found in the traditional health system.
"We believe Hims & Hers has the potential to be synonymous with this next generation of healthcare," he said.
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Founded in 2017, the company went public in a $1.6 billion special purpose acquisition company merger in January of this year.
The company, which combines telehealth and medication delivery, started with four products and has since added a women’s health business, called Hers, that focuses on birth control and sexual health along with skin and hair care products.
In response to the COVID-19 pandemic, Hims & Hers fast-tracked an expansion of its telehealth services to offer access to primary care and also rolled out online mental health services. The company has extended its reach to all 50 states.
Earlier this year, the company acquired teledermatology startup Apostrophe for $150 million as well as personalized health company Honest Health for $10 million.
Dudum told investors the company is aiming to broaden its services to target more conditions, with expansions happening every few quarters. Potential categories the company may expand into include insomnia, pain management, weight management, fertility, hypertension and hyperlipidemia, he said.
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"Those are those are categories that we believe are very, very well suited on the platform and the platform that is today really well equipped to tackle. And they're also categories, frankly, that affect tens and tens of millions of people in the country," he said.
The company conducted 2.4 million virtual visits in 2021 versus 1.6 million visits in the previous year.
Hims & Hers has grown its omnichannel presence to over 20,000 retail locations through collaborations with companies like Amazon, CVS, GNC, Walgreens and Walmart, Dudum said. CVS stocks the company's products at more than 7,800 locations, and the products are also sold at more than 7,000 Walgreens locations and on Walgreens.com, as well as in more than 1,400 Walmart locations and on Walmart.com.
"We believe in those retail channels as brand building and as trust building and ultimately kind of the first leg of our flywheel that helps accelerate customers to the online platform," Dudum said.
It also is partnering with Uber to offer on-demand delivery for its health and wellness products through the Uber Eats app.
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The digital health company's losses grew during the fourth quarter to a loss of $31 million compared to a loss $5.2 million a year ago. Hims & Hers' adjusted EBITDA for the quarter was a loss of $7.1 million compared to a loss of $3.1 million for the fourth quarter 2020. Despite the year-over-year increase, the result still beat the company's expectation of a loss between $12 million and $14 million for the quarter.
For 2021, the company's adjusted EBITDA was a loss of $30 million compared to a loss of $8 million in 2020. The company had been expecting a loss in the range of $35 million to $37 million.
Hims & Hers earnings per share in the fourth quarter came to a loss of 15 cents, missing the analysts' consensus estimate of a loss of 10 cents.
For the first quarter of 2022, the company raised its guidance for revenue to be in the range of $90 million to $93 million and adjusted EBITDA to be a loss of $10 million to a loss of $12 million, with approximately $4 million to $5 million in additional costs associated with the Honest Health and Apostrophe acquisitions.
For full-year 2022, Hims & Hers expects revenue to be in the range of $365 million to $380 million. Adjusted EBITDA is expected to be a loss of $20 million to a loss of $30 million for the year.