Hims(HIMS)2023-11-05 16:00Financial Performance - Revenue for Q3 2023 reached 144.8 million in Q3 2022[20] - Gross profit for Q3 2023 was 114.5 million in Q3 2022, reflecting a 63.5% increase[20] - Total operating expenses for Q3 2023 were 134.4 million in Q3 2022, representing a 45.7% increase[20] - Net loss for Q3 2023 was 18.8 million in Q3 2022[20] - Revenue for the nine months ended September 30, 2023, was 359.7 million for the same period in 2022[138] - Adjusted EBITDA for Q3 2023 was 6.1 million in Q3 2022[138] - Adjusted EBITDA margin for Q3 2023 was 5%, improving from a negative margin of 4% in Q3 2022[138] Cash and Assets - Cash and cash equivalents increased to 46.8 million at the end of 2022[18] - Total assets grew to 366.3 million at the end of 2022[18] - Total stockholders' equity increased to 311.7 million at the end of 2022[18] - The total cash, cash equivalents, and restricted cash at the end of the period was 58,820 thousand at the end of September 2022[27] - The company had total short-term investments of 132.9 million as of December 31, 2022[56] Expenses - Marketing expenses for Q3 2023 were 78.5 million in Q3 2022[20] - Customer acquisition costs reached 67.3 million in Q3 2022, reflecting a strategic investment in marketing[159] - Cost of revenue for Q3 2023 was 30.4 million in Q3 2022, primarily due to rising shipping and medical consultation costs[157] - Operations and support expenses rose to 21.8 million in Q3 2022[146] - Technology and development expenses increased to 8.0 million in Q3 2022[147] - General and administrative expenses were 26.2 million in Q3 2022[149] Subscriber and Revenue Growth - The Company reported 1,426 Subscribers at the end of September 30, 2023, a growth of 510 Subscribers, or 56%, from 916 Subscribers in the same period of 2022[124] - For the three months ended September 30, 2023, the Company generated 79.9 million, or 57%, compared to 605.0 million, up 341.3 million in the same period of 2022[124] - Net Orders for the three months ended September 30, 2023, totaled 2,222, representing an increase of 547 orders, or 33%, from 1,675 in the same period of 2022[124] - Average Order Value (AOV) for the three months ended September 30, 2023, was 16, or 19%, compared to 48,289 thousand in 2023 from 48.3 million, compared to 17.3 million for the three months ended September 30, 2023, compared to $11.0 million for the same period in 2022, indicating a 57.5% increase[100] Future Outlook and Strategy - The company plans to continue investing in fulfillment and operating capabilities, including expanding facilities over the next 12 months[132] - Future growth is expected to come from expanding into new health and wellness categories, requiring financial investments in marketing and operational capabilities[134] - The company emphasizes the importance of customer retention for revenue generation, with a focus on maintaining long-term revenue retention from Subscribers[131] - The company anticipates that marketing initiatives may become increasingly difficult and expensive due to the competitive nature of the market[211] Risks and Challenges - The company has encountered significant risks and uncertainties frequently experienced by new and growing companies in rapidly changing and heavily regulated industries[196] - Evolving government regulations may require increased costs or adversely affect the company's results of operations[197] - The company faces competition from large, well-established healthcare providers and technology companies, which may impact its ability to compete effectively[194] - Negative publicity regarding telehealth and customer confidentiality could limit market acceptance of the company's business model and services[216]