Hims & Hers Shares Plunge as Costs Tied to Weight-Loss Drugs Squeeze Margins

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$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]