Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Hims & Hers (NYSE: HIMS ) stock fell ~19% in after-hours trading following the release of Q4 earnings. This is surprising given that revenue slightly beat market expectations and the reported EPS wasEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Analyst’s Disclosure: ...

Financial Performance - Hims & Hers (NYSE: HIMS) reported a double beat in its financial results, indicating that the company exceeded both revenue and earnings expectations [1] - Despite the positive financial performance, the stock experienced a decline of 18% in after-hours trading [1] Company Background - Hims & Hers operates in the health and wellness sector, focusing on providing telehealth services and products [1] - The company is gaining attention for its innovative approach to healthcare, which includes a direct-to-consumer model [1] Analyst Insights - The analysis is conducted by MMMT Wealth, led by Oliver, a CPA with experience in private equity, hedge funds, and asset management [1] - The focus of the analysis is on long-term investment strategies, with a time horizon of 3-5 years [1] - Oliver emphasizes the importance of thorough research in identifying high-potential investment opportunities [1]

Hims & Hers Health, Inc. (NYSE:HIMS) Q4 2024 Earnings Conference Call February 24, 2025 5:00 PM ET Company Participants Bill Newby - Head of Investor Relations Andrew Dudum - Co-Founder and Chief Executive Officer Yemi Okupe - Chief Financial Officer Conference Call Participants Maria Ripps - Canaccord Genuity Craig Hettenbach - Morgan Stanley Eric Percher - Nephron Research Daniel Grosslight - Citi Ryan MacDonald - Needham Aaron Kessler - Seaport Research Operator Good afternoon, ladies and gentlemen, and ...

Core Insights - Hims & Hers Health, Inc. reported $481.14 million in revenue for Q4 2024, marking a year-over-year increase of 95.1% [1] - The earnings per share (EPS) for the same period was $0.11, compared to $0.01 a year ago, although it fell short of the consensus estimate of $0.12 by 8.33% [1] - The revenue exceeded the Zacks Consensus Estimate of $471.42 million by 2.06% [1] Financial Performance Metrics - Average Order Value (AOV) was $168, surpassing the two-analyst average estimate of $158.71 [4] - Net Orders stood at 2.81 million, matching the two-analyst average estimate [4] - Monthly Online Revenue per Average Subscriber was $73, exceeding the two-analyst average estimate of $71.16 [4] - Subscribers at the end of the period totaled 2.23 million, below the two-analyst average estimate of 2.38 million [4] - Revenue from Wholesale was $10.38 million, slightly above the $10.15 million average estimate based on five analysts [4] - Online Revenue reached $470.76 million, surpassing the $460.87 million average estimate based on five analysts [4] Stock Performance - Shares of Hims & Hers Health have returned +59.6% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Monday, February 24, 2025Market indexes drooped in the final minutes of the normal trading day to start a new week, with all major indexes save the blue-chip Dow closing in the red, adding to Friday’s losses. The Dow — buoyed by bounce-back sessions for Travelers (TRV) and Nike (NKE) , to name a couple — gained +0.08%. The S&P 500 was -0.50% for the day, while the Nasdaq dumped another -1.21% and the small-cap Russell 2000 -0.78%.NVIDIA (NVDA) hit all-time highs in the first week of the year, only to trade ...

Company Performance - Hims & Hers Health, Inc. reported quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.12 per share, but showing an increase from earnings of $0.01 per share a year ago, representing an earnings surprise of -8.33% [1] - The company posted revenues of $481.14 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.06%, and showing significant growth from year-ago revenues of $246.62 million [2] - Over the last four quarters, Hims & Hers Health has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Hims & Hers Health shares have increased approximately 103.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.2% [3] - The current consensus EPS estimate for the coming quarter is $0.14 on revenues of $497.8 million, and for the current fiscal year, it is $0.55 on revenues of $2.07 billion [7] Industry Outlook - The Medical Info Systems industry, to which Hims & Hers Health belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Core Insights - Hims & Hers Health reported a significant increase in fourth-quarter revenue, nearly doubling year-over-year to $481.14 million, with earnings per share rising to 11 cents from 1 cent a year ago, surpassing analysts' expectations [1][2] - Despite strong sales figures, the company's shares fell nearly 20% in after-hours trading due to a decline in gross margin from 83% to 77% as costs increased, particularly related to new weight-loss offerings [2][3] - The company anticipates first-quarter revenue between $520 million and $540 million, which is above analyst consensus [2] Financial Performance - Fourth-quarter revenue reached $481.14 million, nearly double the previous year's figure [1] - Earnings per share increased to 11 cents from 1 cent year-over-year [1] - Gross margin decreased to 77% from 83% due to rising costs [2] Market Reaction - Shares of Hims & Hers fell nearly 20% in extended trading following the earnings report [2] - The stock had previously increased approximately fivefold over the past year [2] Strategic Outlook - The company is rolling out new weight-loss offerings, which are strategically priced to attract new customers [2] - Concerns have arisen regarding the strength of Hims & Hers' weight-loss products following the FDA's announcement that the active ingredients in competing drugs are no longer in short supply [3]

Telehealth Services and Expansion - Hims & Hers has facilitated over 30 million telehealth consultations, providing access to personalized care across all 50 states and the UK[18]. - The company expanded its operations in the UK through the acquisition of Honest Health Limited, aiming for further international growth[31]. - Hims & Hers has established partnerships with leading health systems, enhancing customer access to in-person care[35]. - The company is pursuing rapid specialty expansion into new conditions, including testosterone treatment, menopause, and sleep disorders, which represent significant market opportunities[27]. - The company has completed multiple acquisitions and expanded into new specialties, increasing its customer base significantly[93]. Product Offerings and Innovations - Recent product launches include new prescription offerings in weight loss, sexual health, dermatology, and mental health, demonstrating the scalability of the platform[24]. - The company began offering access to GLP-1s, starting with compounded injectable semaglutide in May 2024 and branded injectable semaglutide in August 2024, as part of its weight loss specialty[59]. - The company began offering compounded injectable semaglutide in May 2024, responding to high consumer demand for GLP-1 medications[98]. - The company announced two acquisitions: a peptide manufacturing facility and a laboratory business, entering new operational areas with associated regulatory requirements[61]. - The company is expanding into laboratory testing services, which will require compliance with new licensure and certification requirements, as well as oversight from regulatory agencies such as CMS and FDA[181]. Financial Performance and Growth - Revenue increased from $526.9 million in 2022 to $872.0 million in 2023, and projected to reach $1,476.5 million in 2024[92]. - The company has experienced rapid growth but acknowledges potential challenges in maintaining profitability and managing operational complexities[90]. - The company expects increased traffic to its platform during the first quarter due to health and wellness-related New Year's resolutions, potentially boosting subscriber growth[73]. - Employee count rose significantly from 651 as of December 31, 2022, to 1,637 as of December 31, 2024[93]. Regulatory Compliance and Challenges - The company is subject to extensive regulation by the FDA and other authorities regarding the testing, production, and distribution of its products, including compounded drugs[49]. - Compliance with current good manufacturing practice (cGMP) is essential for the company’s third-party manufacturers, and failure to comply may lead to enforcement actions by the FDA[50]. - The company must monitor legislative and regulatory developments regarding telehealth and pharmaceutical laws to support its operations[41]. - The company is subject to various health information privacy laws, including HIPAA and state-specific regulations, which may evolve and impact operations[65][66]. - The evolving regulatory environment may require increased compliance costs, which could adversely affect the company's financial results[195]. Marketing and Customer Engagement - The marketing strategy focuses on analytics and data to measure consumer behavior and the effectiveness of marketing budgets, viewing these capabilities as a core strength[72]. - The company is focused on expanding its marketing infrastructure to drive customer enrollment, which is critical for future success[111]. - Marketing strategies include social media, email, and celebrity influencers, but are subject to changing privacy laws that may limit effectiveness[101]. - The company’s ability to attract and retain customers is highly dependent on its marketing effectiveness and compliance with applicable laws[112]. Competition and Market Landscape - The company faces competition from traditional healthcare providers and other telehealth services, highlighting a significant market opportunity as consumer behavior shifts[81][82]. - The company operates in highly competitive markets, facing competition from established healthcare providers, traditional retailers, and technology companies with significant resources[122]. - The competitive landscape may change with new entrants or alliances that could impact the company's market position and financial performance[124]. - The company faces intense competition in the telehealth market, which may impact its pricing decisions and overall revenue[165]. Operational Efficiency and Supply Chain - The integrated technology platform allows for efficient customer service from discovery to fulfillment, contributing to cost advantages and robust gross margins[23]. - The company has opened a 300,000 square foot facility in Ohio for dedicated pharmacy services, enhancing operational efficiency[28]. - Supply chain constraints are expected to continue, particularly affecting the availability of branded GLP-1 offerings, which could slow order fulfillment[156]. - The company relies on third-party service providers, including Amazon Web Services, for its platform operations, and any disruption could negatively impact revenue generation[150]. Employee and Corporate Culture - As of December 31, 2024, the company employed 1,637 individuals across various functions, emphasizing a commitment to employee development and well-being[75]. - The company has a remote-first policy since June 2020, enhancing its ability to attract diverse talent and adapt to the new work environment[76]. - The company’s remote-first policy may affect productivity and company culture[171]. Risks and Economic Factors - Economic uncertainty, including inflation and geopolitical tensions, has contributed to increased market volatility, making it difficult for the company to forecast future business activities[143]. - A significant downturn in the economy may lead customers to pause or cancel spending on the company's platform, adversely affecting revenue[144]. - The company faces risks related to acquisitions, including operating difficulties, dilution, and the potential for significant cash expenditures[136]. - The company may face challenges in maintaining high-quality customer support, which is critical for its reputation and revenue[131].

Revenue and Growth - Revenue for 2024 was $1.5 billion, representing a 69% increase year-over-year[1] - Subscribers grew to 2.2 million, up 45% year-over-year[1] - Revenue for Q4 2024 reached $481,139,000, a 95% increase from $246,619,000 in Q4 2023[29] - Revenue for the year ended December 31, 2024, was $1,476,514,000, up from $872,000,000 in 2023, indicating a year-over-year growth of approximately 69%[37] - Online revenue for 2024 was $1.44 billion, a 71% increase from $842.4 million in 2023[4] Profitability - Net income for 2024 was $126 million, compared to a net loss of $(23.5) million in 2023[7] - Net income for the year ended December 31, 2024, was $126,038,000, a significant recovery from a net loss of $23,546,000 in 2023[32] - Net income for Q4 2024 was $26,025,000, a significant increase from $1,245,000 in Q4 2023, resulting in a net income margin of 5% compared to 1% in the previous year[37] Cash Flow and Liquidity - Free cash flow for 2024 was $198.3 million, compared to $47 million in 2023[7] - Free Cash Flow for Q4 2024 was $59,500,000, up from $10,785,000 in Q4 2023, reflecting a strong improvement in liquidity[39] - Cash provided by operating activities for the year was $251,084,000, compared to $73,483,000 in 2023, indicating improved operational efficiency[32] - Net cash provided by operating activities for the year ended December 31, 2024, was $251,084,000, compared to $73,483,000 in 2023, showing a substantial increase[39] EBITDA and Margins - Adjusted EBITDA for 2024 was $177 million, up from $49.5 million in 2023[7] - Adjusted EBITDA for Q4 2024 was $54,123,000, representing an increase from $20,570,000 in Q4 2023, with an Adjusted EBITDA margin of 11% compared to 8% in the previous year[37] - Adjusted EBITDA guidance for 2025 is projected to be between $270 million and $320 million[15] Expenses and Costs - Marketing expenses for Q4 2024 were $221,085,000, up from $125,895,000 in Q4 2023, reflecting increased investment in customer acquisition[29] - Stock-based compensation for the year ended December 31, 2024, totaled $92,322,000, up from $66,080,000 in 2023, indicating increased employee compensation related to performance[37] - The company incurred acquisition and transaction-related costs of $3,979,000 for the year ended December 31, 2024, compared to $3,016,000 in 2023[37] - Legal settlement expenses for the year ended December 31, 2024, were $2,008,000, with no such expenses reported in 2023[37] - The company reported a depreciation and amortization expense of $17,088,000 for the year ended December 31, 2024, compared to $9,515,000 in 2023[37] Assets and Liabilities - Total current assets increased to $395,831,000 in 2024 from $265,053,000 in 2023, driven by a rise in cash and cash equivalents[28] - Total liabilities rose to $230,823,000 in 2024, up from $97,157,000 in 2023, primarily due to increased accounts payable and deferred revenue[28] - The company reported a total stockholders' equity of $476,716,000 as of December 31, 2024, compared to $344,029,000 in 2023, indicating strong financial health[28] Future Outlook - The company expects full year 2025 revenue to be in the range of $2.3 billion to $2.4 billion[1] - Adjusted EBITDA and Free Cash Flow metrics are used by the company to evaluate ongoing operations and liquidity, although specific figures were not disclosed[33] - The company emphasizes that Adjusted EBITDA and Free Cash Flow should be considered alongside other financial performance measures, including net income and U.S. GAAP results[36][38]