Financial Data and Key Metrics - Revenue increased 77% year-over-year to $401.6 million in Q3 2024, driven by strong online channel performance [42] - Online revenue grew 79% year-over-year to $392.6 million, with subscriber base expansion being the primary growth driver [43] - Adjusted EBITDA reached $51.1 million, reflecting a 13% margin, up 7 points year-over-year [55] - Gross margin declined 2 points quarter-over-quarter to 79%, primarily due to scaling of the weight-loss specialty [56] - Net income was $75.6 million, including a $60.8 million tax benefit related to the release of a tax valuation allowance [59] - Free cash flow was $79.4 million, increasing cash and short-term investments by $27 million quarter-over-quarter to $254 million [61] Business Line Performance - The company ended Q3 with over 2 million subscribers, a 44% increase year-over-year, with 50% utilizing personalized solutions [8] - The weight-loss specialty saw significant growth, with 20,000 existing customers adopting weight-loss solutions and 20% of weight-loss subscribers having a multi-specialty relationship [52] - The Hers brand surpassed 400,000 subscribers, with strong growth in dermatology and other specialties [11] - Personalized solutions accounted for over 65% of new subscribers in Q3, driving higher retention and customer satisfaction [47][48] Market Performance - The company expanded access to personalized solutions in less affluent communities, with over 400,000 subscribers from households earning below $50,000 [14] - Over 100,000 subscribers are over the age of 65, with nearly 7,000 accessing weight-loss solutions [15] - The service appreciation initiative launched in September 2024, offering discounted GLP-1 weight-loss solutions to U.S. military veterans, teachers, nurses, and first responders [16] Strategy and Industry Competition - The company focuses on democratizing access to high-quality personalized healthcare solutions at affordable prices, leveraging its technology platform to scale efficiently [17][39] - Investments in 503A and 503B facilities aim to enhance capacity and automation, supporting long-term growth in personalized solutions [64][65] - The company plans to introduce liraglutide, the first generic GLP-1, in 2025, further expanding its weight-loss offerings [37] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong consumer demand for personalized solutions and the company's ability to scale efficiently [42][55] - The weight-loss specialty is expected to continue driving growth, with plans to expand offerings and improve operational efficiency [56][68] - The company anticipates Q4 2024 revenue of $465 million to $470 million, representing 89% to 91% year-over-year growth, with full-year revenue expected between $1.46 billion and $1.465 billion [66] Other Important Information - The company repurchased 1.9 million shares at an average price of $15.83, with $70 million remaining on its $100 million share repurchase authorization [61] - Marketing spend as a percentage of revenue improved to 45%, driven by increased awareness and customer retention [58] Q&A Session Summary Question: GLP-1 Contribution in Q3 - The company did not provide specific GLP-1 revenue figures but noted subscriber growth excluding GLP-1s was over 40% year-over-year [74] Question: Future of GLP-1 Business - The company expects a diverse portfolio of weight-loss solutions, including oral medications, liraglutide, and personalized GLP-1s, to drive durable growth [76][77] Question: GLP-1 Retention Rates - Retention rates for GLP-1 solutions are strong, with 85% of patients engaging at 4 weeks and 70% continuing at 12 weeks, driven by consistent provider communication and personalized dosing [81][82] Question: Personalized Dosing and Titration - The company emphasized the clinical necessity of personalized dosing for GLP-1s, which aligns with compounding exemptions and addresses side-effect management [89][90] Question: Medisource Acquisition and CapEx - Investments in Medisource will focus on expanding capacity and automation, with CapEx diversified across personalized solutions and operational efficiency [91][92] Question: Oral Weight-Loss Business - The oral weight-loss business continues to perform well, offering 70% of the weight loss of GLP-1s at $70 per month, attracting consumers with its affordability and safety profile [102][104] Question: Insurance and Reimbursement - The company plans to continue focusing on the cash-pay market for weight-loss solutions, given limited insurance coverage for branded GLP-1s [107] Question: New Sub-Verticals in Hers Category - The Hers business is growing rapidly, with potential new verticals in perimenopause, menopause, and hormonal therapy, driven by Dr. Jessica Shepherd's expertise [112] Question: Pricing Strategy - The company may test price reductions as efficiency gains are unlocked, but will also explore other value-adding opportunities beyond pricing [117] Question: GLP-1 Revenue Contribution - GLP-1 subscriber count was estimated at 47,000 to 48,000, with revenue contribution inferred from average monthly revenue per subscriber [124] Question: GLP-1 Subscription Duration - GLP-1 subscribers typically sign up for around five months, with strong retention beyond the initial 12-week period [126]

Monday, November 4, 2024 Stock market activity slid tepidly into the red once again today, more or less in keeping with overall trading through last week. Because we await results from tomorrow's General Election, we don't expect any sudden movements until Wednesday morning the earliest. The Dow sank -263 points on the session, -0.63%, while the S&P 500 came in -16 points, -0.29%. The Nasdaq posted a near-identical -55 points, -0.30%. The small-cap Russell 2000, a laggard to the other indexes year to date, ...

Earnings Performance - Hims & Hers Health reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.04 per share a year ago [1] - The company delivered a 20% earnings surprise in the previous quarter, surpassing the expected $0.05 per share with actual earnings of $0.06 per share [1] - Over the last four quarters, the company has exceeded consensus EPS estimates three times [1] Revenue Growth - Hims & Hers Health posted revenues of $401.56 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 4.52% [2] - This represents a significant increase from year-ago revenues of $226.7 million [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Stock Performance - Hims & Hers Health shares have surged approximately 128.8% since the beginning of the year, outperforming the S&P 500's gain of 20.1% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.05 on $424.7 million in revenues [7] - For the current fiscal year, the consensus EPS estimate is $0.22 on $1.4 billion in revenues [7] - The estimate revisions trend for Hims & Hers Health is mixed, resulting in a Zacks Rank 3 (Hold) [6] Industry Context - Hims & Hers Health operates in the Zacks Medical Info Systems industry, which is currently in the top 30% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Clover Health Investments, Corp. (CLOV) is expected to report a quarterly loss of $0.03 per share for the quarter ended September 2024, representing a year-over-year improvement of 66.7% [9] - Clover Health's revenues are expected to be $347.6 million, down 27.9% from the year-ago quarter [10] - The consensus EPS estimate for Clover Health has remained unchanged over the last 30 days [9]

Revenue and Profit Growth - Revenue for Q3 2024 increased to $401.56 million, up 77% from $226.70 million in Q3 2023[13] - Gross profit for Q3 2024 rose to $317.89 million, a 70% increase from $187.31 million in Q3 2023[13] - Net income for Q3 2024 was $75.59 million, compared to a net loss of $7.57 million in Q3 2023[13] - Total comprehensive income for Q3 2024 was $75.99 million, compared to a loss of $7.44 million in Q3 2023[13] - Net income attributable to common stockholders for the three months ended September 30, 2024 was $72.665 million, compared to a net loss of $7.265 million for the same period in 2023[116] - The company's total revenue for the three months ended September 30, 2024, was $401.6 million, with online revenue contributing $392.6 million and wholesale revenue contributing $9.0 million[40] - For the nine months ended September 30, 2024, total revenue was $995.4 million, with online revenue at $967.2 million and wholesale revenue at $28.2 million[40] Expenses and Costs - Marketing expenses for Q3 2024 were $182.28 million, up 57% from $116.08 million in Q3 2023[13] - Technology and development expenses for Q3 2024 increased to $21.09 million, up 72% from $12.27 million in Q3 2023[13] - Total operating expenses for Q3 2024 were $295.51 million, a 51% increase from $195.86 million in Q3 2023[13] - Stock-based compensation increased to $67.97 million for the nine months ended September 30, 2024, up from $48.29 million in the same period in 2023[20] - The company incurred $1.3 million in acquisition costs related to the MedisourceRx acquisition, recorded within general and administrative expenses[52] - Operating lease costs for the nine months ended September 30, 2024, were $2.2 million, up from $1.7 million for the same period in 2023[69] - Payments to related-party company Vouched totaled $2.6 million for the nine months ended September 30, 2024[112] - Payments to former related-party company Terminal, Inc. totaled $3.3 million for the nine months ended September 30, 2023[113] Earnings Per Share and Shares Outstanding - Basic net income per share for Q3 2024 was $0.35, compared to a loss of $0.04 per share in Q3 2023[14] - Diluted net income per share for Q3 2024 was $0.32, compared to a loss of $0.04 per share in Q3 2023[14] - Weighted average shares outstanding (diluted) for Q3 2024 were 235.07 million, up from 210.13 million in Q3 2023[14] - Diluted net income per share for the three months ended September 30, 2024 was $0.32, compared to a net loss per share of $0.04 for the same period in 2023[116] - Weighted average shares outstanding, diluted, for the three months ended September 30, 2024 was 226.691 million, compared to 201.757 million for the same period in 2023[116] - RSUs excluded from the computation of diluted net income per share for the three months ended September 30, 2024 totaled 237,328, compared to 15.506 million for the same period in 2023[117] Cash Flow and Investments - Net cash provided by operating activities was $164.70 million for the nine months ended September 30, 2024, compared to $51.50 million in the same period in 2023[20] - Total cash, cash equivalents, and restricted cash increased to $166.37 million as of September 30, 2024, up from $58.85 million as of September 30, 2023[20] - The company invested $8.73 million in website development and internal-use software for the nine months ended September 30, 2024[20] - Purchases of property, equipment, and intangible assets totaled $17.14 million for the nine months ended September 30, 2024[20] - The company acquired a business for $15.40 million during the nine months ended September 30, 2024[20] - Cash and cash equivalents and short-term investments totaled $254.1 million as of September 30, 2024, an increase from $221.0 million as of December 31, 2013[201] Assets and Liabilities - Accumulated deficit increased to $369.42 million as of September 30, 2023, compared to $344.63 million as of December 31, 2022[18] - Total stockholders' equity increased to $328.56 million as of September 30, 2023, up from $311.74 million as of December 31, 2022[18] - Inventory increased to $49.11 million as of September 30, 2024, up from $22.46 million as of December 31, 2023, with finished goods rising to $28.14 million from $15.22 million[59] - Total prepaid expenses and other current assets grew to $23.19 million as of September 30, 2024, compared to $21.61 million as of December 31, 2023[60] - Property, equipment, and software, net increased to $52.14 million as of September 30, 2024, from $36.14 million as of December 31, 2023, with depreciation and amortization expenses of $8.6 million for the nine months ended September 30, 2024[61] - Intangible assets, net rose to $44.82 million as of September 30, 2024, up from $18.57 million as of December 31, 2023, with amortization expenses of $2.4 million for the nine months ended September 30, 2024[64][65] - Accrued liabilities increased to $43.22 million as of September 30, 2024, compared to $28.97 million as of December 31, 2023, with marketing expenses rising to $17.77 million from $12.33 million[67] - Future minimum lease payments under non-cancelable operating leases subsequent to September 30, 2024, total $14.58 million, with a present value of $11.36 million[71] - Total financial assets measured at fair value as of September 30, 2024, were $143.64 million, including $54.23 million in money market funds and $59.18 million in U.S. Treasury bills[75] - Total assets as of September 30, 2024, amounted to $167.666 million, with cash and cash equivalents at $42.492 million, short-term investments at $63.833 million, and restricted cash at $856 thousand[76] - The company has non-cancelable purchase obligations totaling $23.5 million, with $2.4 million payable in 2024, $8.8 million in 2025, $7.0 million in 2026, and $5.3 million in 2027[78] Share Repurchase and Equity Plans - Under the 2023 Share Repurchase Program, the company repurchased and retired 3,632,123 shares of Class A common stock for $48.0 million, fully utilizing the $50.0 million authorization[82] - The 2024 Share Repurchase Program authorizes the company to repurchase up to $100.0 million of Class A common stock, with $30.0 million already utilized and $70.0 million remaining as of September 30, 2024[83][84] - During the nine months ended September 30, 2024, the company released 5,068,997 gross shares of Class A common stock upon vesting of RSUs, with 1,780,064 shares withheld for employee taxes[85] - As of September 30, 2024, the company had 54,360,277 shares of Class A common stock reserved and 15,131,669 shares available for grant under the 2020 Equity Incentive Plan[87] - Under the Employee Stock Purchase Plan (ESPP), the company issued 366,524 shares of Class A common stock during the nine months ended September 30, 2024, with $1.8 million withheld via employee payroll deductions[88][90] - The intrinsic value of vested options exercised during the nine months ended September 30, 2024, was $33.6 million, with $8.6 million of unrecognized stock-based compensation expense related to unvested stock options[95][96] - Outstanding stock options as of September 30, 2024 totaled 11,044,000 shares, with 8,395,000 shares exercisable[98] - Unvested RSUs as of September 30, 2024 were 16,919,000 shares with a weighted average grant date fair value of $10.60[100] - Unrecognized stock-based compensation expense related to unvested RSUs was $167.8 million, expected to be recognized over 2.94 years[101] - Performance RSUs granted on March 1, 2023 had a total grant date fair value of $12.9 million[102] - Performance RSUs granted on February 28, 2024 had a total grant date fair value of $16.2 million[104] - Unrecognized stock-based compensation expense related to unvested PRSUs was $25.3 million, expected to be recognized over 1.98 years[105] - Outstanding Class A common stock warrants as of September 30, 2024 were 462,335 with a weighted average exercise price of $1.75 and aggregate intrinsic value of $7.7 million[106] - Stock-based compensation expense for the nine months ended September 30, 2024 totaled $67.97 million[111] Acquisitions and Goodwill - The company acquired MedisourceRx for $31.0 million, including $15.5 million in cash and $15.5 million in Class A common stock, with $1.8 million recorded as goodwill[50][55] - The 503B pharmacy license acquired in the MedisourceRx acquisition was valued at $28.6 million and will be amortized over ten years[54] - Goodwill of $1.8 million was acquired in 2024, with no impairment recorded for the three and nine months ended September 30, 2024, and 2023[35] Impairment and Valuation - The company recognized $0.1 million and $0.4 million in impairment charges on long-lived assets for the nine months ended September 30, 2024, and 2023, respectively[36] - The company recognized a one-time income tax benefit of $60.8 million during the three months ended September 30, 2024 related to the release of its domestic valuation allowance[121] - The effective income tax rate was (220.4)% for the three months ended September 30, 2024, compared to (9.4)% for the same period in 2023[119] - The company determined that a valuation allowance against its domestic deferred tax assets was no longer required as of September 30, 2024, primarily due to sustained tax profitability[120] Risk and Exposure - The company believes there will be no associated material exposure to interest rate risk due to the short-term nature of its investments[201] - The company does not have a material exposure to foreign currency risk as of September 30, 2024, but may increase exposure in the future with international expansion[202] Service Revenue and Refunds - Service revenue represented less than 10% of consolidated revenues for the three and nine months ended September 30, 2024, and 2023[42] - The company estimates refunds using the expected value method based on historical refunds, with the estimate updated at the end of each reporting period[45] VIEs and Related-Party Transactions - VIEs charged $129.9 million for services rendered for the nine months ended September 30, 2024, compared to $71.5 million for the same period in 2023, generating a net loss of $16.9 million[74]

Hims & Hers Health, Inc. Reports Third Quarter 2024 Financial Results Revenue of $401.6 million, up 77% year-over-year in Q3 2024 Net income of $75.6 million; Adjusted EBITDA of $51.1 million in Q3 2024 Subscribers grew to 2.0 million, up 44% year-over-year in Q3 2024 Raises full year 2024 revenue guidance to a range of $1.460 billion to $1.465 billion and Adjusted EBITDA guidance to a range of $173 million to $178 million SAN FRANCISCO, November 4, 2024 – Hims & Hers Health, Inc. ("Hims & Hers" or the "Com ...

Hims & Hers Health, Inc. (HIMS) is scheduled to report third-quarter 2024 results on Nov. 4, after the closing bell.In the last reported quarter, the company’s earnings per share (EPS) of 6 cents surpassed the Zacks Consensus Estimate by 20%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed once, delivering an earnings surprise of 71.7%, on average.For third-quarter 2024, the Zacks Consensus Estimate for revenues is pegged at $384.2 millio ...

Disrupting pharmacies is just the start for Hims & Hers. One of the major opportunities in healthcare today is disrupting the status quo in pharmaceuticals. Hims & Hers (HIMS -3.64%) has brought a new model to the market and is growing extremely rapidly while becoming a go-to platform for millions of users. *Stock prices used were end-of-day prices of Oct. 28, 2024. The video was published on Oct. 30, 2024. ...

In the latest market close, Hims & Hers Health, Inc. (HIMS) reached $21.52, with a +0.65% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. Meanwhile, the Dow experienced a drop of 0.33%, and the technology-dominated Nasdaq saw an increase of 0.76%.Shares of the company have appreciated by 23.87% over the course of the past month, outperforming the Medical sector's loss of 3.79% and the S&P 500's gain of 1.47%.The investment community will be ...

The GLP-1 drama continues at Hims & Hers.Hims & Hers (HIMS 1.85%) fell as much as 12% in trading on Wednesday after pharmaceutical company Novo Nordisk (NVO -0.56%) asked the FDA to not allow companies to compound GLP-1 semaglutide. This could be a direct hit to Hims & Hers business, but the impact may not be what you think, as Travis Hoium covers in this video.*Stock prices used were end-of-day prices of Oct. 23, 2024. The video was published on Oct. 23, 2024. ...

GLP-1s get all the attention, but Hims & Hers' core business is where the rocket growth is. Shares of Hims & Hers (HIMS -3.58%) have been all over the map over the past few months as GLP-1s have gone from tailwind to headwind for the company's growth. But the bigger picture tells us that GLP-1s don't have a big impact on earnings, and the company's platform will grow no matter what happens to any single product. Travis Hoium breaks down the company's growth in this video. *Stock prices used were end-of-day ...