Hims & Hers Health, Inc. Reports First Quarter 2024 Financial Results
SAN FRANCISCO , May 06 /Businesswire/ - Hims & Hers Health, Inc. (“Hims & Hers” or the “Company”, NYSE: HIMS), the leading health and wellness platform, today announced financial results for the first quarter ended March 31, 2024 in a shareholder letter that is posted at investors.hims.com.
“We are pleased to begin the year with exceptional results and strong momentum throughout the business,” said Andrew Dudum, co-founder and CEO. “Our ability to deliver consistent performance across our key metrics is being fueled by our ability to capitalize on the increasing demand for high quality, personalized solutions in each of our core specialties. During the period, we added a record number of net new subscribers, increasing 41% versus a year ago and bringing us to 1.7 million subscribers on the Hims & Hers platform. We also delivered our first quarter of double-digit net income profitability. As we continue to expand our offerings and broaden awareness of Hims & Hers as a trusted brand, we expect to continue driving rapid and increasingly profitable growth.”
Yemi Okupe, CFO, stated, “The business continues to generate robust performance across our operations as we execute on our mission to make the world feel great through the power of better health. Our ability to bring a record number of net new subscribers to the platform while simultaneously driving over 400 basis points of marketing leverage is a testament to the formidable model we are building. We are confident that ongoing investment in a broad offering of high quality, personalized solutions at affordable prices, combined with a trusted brand and best-in-class technology platform, will position us to achieve consistent top and bottom line growth for the foreseeable future. We have updated our full year outlook to reflect the ongoing business momentum and efficiency improvements we are experiencing. These improvements also further bolster our confidence in reaching our long-term Adjusted EBITDA margin goals of 20%-30%.”
Key Business Metrics |
|||||||||
(In Thousands, Except for Monthly Online Revenue per Average Subscriber and AOV, Unaudited) |
|||||||||
|
|
Three Months Ended March 31, |
|||||||
|
|
2024 |
|
2023 |
|
% Change |
|||
Subscribers (end of period) |
|
|
1,709 |
|
|
1,209 |
|
41 |
% |
Monthly Online Revenue per Average Subscriber |
|
$ |
55 |
|
$ |
55 |
|
— |
% |
|
|
|
|
|
|
|
|||
Net Orders |
|
|
2,461 |
|
|
2,047 |
|
20 |
% |
AOV |
|
$ |
109 |
|
$ |
90 |
|
21 |
% |
Revenue |
|||||||||
(In Thousands, Unaudited) |
|||||||||
|
|
Three Months Ended March 31, |
|||||||
|
|
2024 |
|
2023 |
|
% Change |
|||
Online Revenue |
|
$ |
267,761 |
|
$ |
184,175 |
|
45 |
% |
Wholesale Revenue |
|
|
10,410 |
|
|
6,595 |
|
58 |
% |
Total revenue |
|
$ |
278,171 |
|
$ |
190,770 |
|
46 |
% |
First Quarter 2024 Financial Highlights
Reconciliations of Adjusted EBITDA and Free Cash Flow, non-GAAP measures, to net income (loss) and net cash provided by operating activities, respectively, their most comparable financial measures under generally accepted accounting principles in the United States (“U.S. GAAP”), have been provided in this press release in the accompanying tables. Additional information about Adjusted EBITDA and Free Cash Flow is also included below under the heading “Non-GAAP Financial Measures”.
Financial Outlook
Hims & Hers is providing the following guidance:
For the second quarter 2024, we expect:
For the full year 2024, we expect:
The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Cautionary Note Regarding Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
We have relied upon the exception in Item 10(e)(1)(i)(B) of Regulation S-K and have not reconciled forward-looking Adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income (loss), because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net loss. See “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.
Conference Call
Hims & Hers will host a conference call to review the first quarter 2024 results on May 6, 2024, at 5:00 p.m. ET. The conference call can be accessed by dialing +1 (888) 510-2630 for U.S. participants and +1 (646) 960-0137 for international participants, and referencing conference ID #1704296. A live audio webcast will be available online at investors.hims.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call at the same link.
About Hims & Hers Health, Inc.
Hims & Hers is the leading health and wellness platform on a mission to help the world feel great through the power of better health.
We believe how you feel in your body and mind transforms how you show up in life. That’s why we’re building a future where nothing stands in the way of harnessing this power. Hims & Hers normalizes health & wellness challenges—and innovates on their solutions—to make feeling happy and healthy easy to achieve. No two people are the same, so the Company provides access to personalized care designed for results.
For more information, please visit investors.hims.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believe,” “estimate,” “anticipate,” “expect,” “assume,” “imply,” “intend,” “plan,” “may,” “will,” “potential,” “project,” “predict,” “continue,” “could,” “confident,” “confidence,” or “should,” or, in each case, their plural, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial outlook and guidance, including our mission to drive top-line growth and profitability and our ability to attain our medium- and long-term financial targets; our expected future financial and business performance, including with respect to the Hims & Hers platform, our marketing campaigns, investments in innovation, and our infrastructure, and the underlying assumptions with respect to the foregoing; statements relating to events and trends relevant to us, including with respect to our financial condition, results of operations, short- and long-term business operations, objectives, and financial needs; expectations regarding our mobile applications, market acceptance, user experience, customer retention, brand development, our ability to invest and generate a return on any such investment, customer acquisition costs, operating efficiencies and leverage (including our fulfillment capabilities), the effect of any pricing decisions, changes in our product or offering mix, the timing and market acceptance of any new products or offerings, the success of our business model, our market opportunity, our ability to scale our business, the growth of certain of our specialties, our ability to innovate on and expand the scope of our offerings and experiences, our ability to reinvest into the customer experience, and our ability to comply with the extensive, complex and evolving regulatory requirements applicable to our business, including without limitation state and federal healthcare, privacy and consumer protection laws and regulations. These statements are based on management’s current expectations, but actual results may differ materially due to various factors.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the “Risk Factors” section of each of our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and any of our subsequent filings with the Securities and Exchange Commission (the “Commission”).
Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation (and expressly disclaim any obligation) to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described in the “Risk Factors” section of each of our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and any of our subsequent filings with the Commission may not be exhaustive.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in reports we have filed or will file with the Commission, including our most recently filed Annual Report on Form 10-K, our most recently filed Quarterly Report on Form 10-Q, and any of our subsequent filings with the Commission. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in such reports, those results or developments may not be indicative of results or developments in subsequent periods.
Key Business Metrics
“Online Revenue” represents the sales of products and services on our platform, net of refunds, credits, and chargebacks, and includes revenue recognition adjustments recorded pursuant to U.S. GAAP, primarily relating to deferred revenue and returns reserve. Online Revenue is generated by selling directly to consumers through our websites and mobile applications. Our Online Revenue consists of products and services purchased by customers directly through our online platform. The majority of our Online Revenue is subscription-based, where customers agree to be billed on a recurring basis to have products and services automatically delivered to them.
“Wholesale Revenue” represents non-prescription product sales to retailers through wholesale purchasing agreements. Wholesale Revenue also includes non-prescription product sales to third-party platforms through consignment arrangements. In addition to being revenue generative and profitable, wholesale partnerships and consignment arrangements have the added benefit of generating brand awareness with new customers in physical environments and on third-party platforms.
“Subscribers” are customers who have one or more “Subscriptions” pursuant to which they have agreed to be automatically billed on a recurring basis at a defined cadence. The Subscription billing cadence is typically defined as a number of days (for example, billed every 30 days or every 90 days), which are excluded from our reporting when payment has not occurred at the contracted billing cadence. Subscribers can cancel Subscriptions in between billing periods to stop receiving additional products and/or services and can reactivate Subscriptions to continue receiving additional products and/or services.
“Monthly Online Revenue per Average Subscriber” is defined as Online Revenue divided by “Average Subscribers”, which amount is then further divided by the number of months in a period. “Average Subscribers” are calculated as the sum of the Subscribers at the beginning and end of a given period divided by 2.
“Net Orders” are defined as the number of online customer orders minus transactions related to refunds, credits, chargebacks, and other negative adjustments. Net Orders represent transactions made on our platform during a defined period of time and exclude revenue recognition adjustments recorded pursuant to U.S. GAAP.
Average Order Value (“AOV”) is defined as Online Revenue divided by Net Orders (each as defined above).
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In Thousands, Except Share and Per Share Data, Unaudited) |
|||||||
|
March 31, 2024 |
|
December 31, 2023 |
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
105,237 |
|
|
$ |
96,663 |
|
Short-term investments |
|
98,355 |
|
|
|
124,318 |
|
Inventory |
|
29,826 |
|
|
|
22,464 |
|
Prepaid expenses and other current assets |
|
28,316 |
|
|
|
21,608 |
|
Total current assets |
|
261,734 |
|
|
|
265,053 |
|
Restricted cash |
|
856 |
|
|
|
856 |
|
Goodwill |
|
110,881 |
|
|
|
110,881 |
|
Property, equipment, and software, net |
|
45,212 |
|
|
|
36,143 |
|
Intangible assets, net |
|
17,863 |
|
|
|
18,574 |
|
Operating lease right-of-use assets |
|
11,422 |
|
|
|
9,588 |
|
Other long-term assets |
|
138 |
|
|
|
91 |
|
Total assets |
$ |
448,106 |
|
|
$ |
441,186 |
|
Liabilities and stockholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
43,919 |
|
|
$ |
43,070 |
|
Accrued liabilities |
|
26,714 |
|
|
|
28,972 |
|
Deferred revenue |
|
13,735 |
|
|
|
7,733 |
|
Earn-out payable |
|
7,412 |
|
|
|
7,412 |
|
Operating lease liabilities |
|
1,544 |
|
|
|
1,281 |
|
Total current liabilities |
|
93,324 |
|
|
|
88,468 |
|
Operating lease liabilities |
|
10,279 |
|
|
|
8,667 |
|
Other long-term liabilities |
|
21 |
|
|
|
22 |
|
Total liabilities |
|
103,624 |
|
|
|
97,157 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders' equity: |
|
|
|
||||
Common stock – Class A shares, par value $0.0001, 2,750,000,000 shares authorized and 206,033,630 and 205,104,120 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively; Class V shares, par value $0.0001, 10,000,000 shares authorized and 8,377,623 shares issued and outstanding as of March 31, 2024 and December 31, 2023 |
|
21 |
|
|
|
21 |
|
Additional paid-in capital |
|
701,670 |
|
|
|
712,307 |
|
Accumulated other comprehensive loss |
|
(162 |
) |
|
|
(124 |
) |
Accumulated deficit |
|
(357,047 |
) |
|
|
(368,175 |
) |
Total stockholders' equity |
|
344,482 |
|
|
|
344,029 |
|
Total liabilities and stockholders' equity |
$ |
448,106 |
|
|
United States, North America, Technology, Managed Care, Health, General Health, Women, Pharmaceutical, Men, Apps/Applications, Internet, Consumer, Telemedicine/Virtual Medicine, Webcast, Conference Call, Earnings, California,
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