Revenue of $278.2 million, up 46%
year-over-year in 2024
Net income of $11.1 million; Adjusted EBITDA of
$32.3 million in Q1 2024
Subscribers grew to 1.7 million, up 41%
year-over-year in Q1 2024
Raises full year 2024 guidance to a range of
$1.20 billion to $1.23 billion and Adjusted EBITDA to a range of
$120 million to $135 million
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
- Revenue was $278.2 million for the first quarter of 2024
compared to $190.8 million for the first quarter of 2023, an
increase of 46% year-over-year.
- Gross margin was 82% for the first quarter of 2024
compared to 80% for the first quarter of 2023.
- Net income was $11.1 million for the first quarter of
2024 compared to a net loss of $(10.1) million for the first
quarter of 2023.
- Adjusted EBITDA was $32.3 million for the first quarter
of 2024 compared to $6.1 million for the first quarter of
2023.
- Net cash provided by operating activities was $25.8
million for the first quarter of 2024 compared to $9.5 million for
the first quarter of 2023.
- Free Cash Flow was $11.9 million for the first quarter
of 2024 compared to $7.0 million for the first quarter of
2023.
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:
- Revenue of $292 million to $297 million.
- Adjusted EBITDA of $30 million to $35 million, reflecting an
Adjusted EBITDA margin of 10% to 12%.
For the full year 2024, we expect:
- Revenue of $1.20 billion to $1.23 billion.
- Adjusted EBITDA of $120 million to $135 million, reflecting an
Adjusted EBITDA margin of 10% to 11%.
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
$
441,186
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In Thousands, Except Share and
Per Share Data, Unaudited)
Three Months Ended March
31,
2024
2023
Revenue
$
278,171
$
190,770
Cost of revenue
49,076
37,345
Gross profit
229,095
153,425
Gross margin %
82
%
80
%
Operating expenses:(1)
Marketing
130,553
97,245
Operations and support
38,747
26,182
Technology and development
15,324
10,748
General and administrative
34,568
30,513
Total operating expenses
219,192
164,688
Income (loss) from operations
9,903
(11,263
)
Other income (expense):
Change in fair value of liabilities
—
(295
)
Other income, net
2,500
1,877
Total other income, net
2,500
1,582
Income (loss) before income taxes
12,403
(9,681
)
Provision for income taxes
(1,275
)
(386
)
Net income (loss)
11,128
(10,067
)
Other comprehensive (loss) income
(38
)
166
Total comprehensive income (loss)
$
11,090
$
(9,901
)
Net income (loss) per share attributable
to common stockholders:
Basic
$
0.05
$
(0.05
)
Diluted
$
0.05
$
(0.05
)
Weighted average shares outstanding:
Basic
213,452,092
207,140,298
Diluted
229,364,585
207,140,298
______________
(1) Includes stock-based
compensation expense as follows (in thousands):
Three Months Ended March
31,
2024
2023
Marketing
$
1,904
$
996
Operations and support
2,155
1,154
Technology and development
2,205
1,461
General and administrative
12,768
10,556
Total stock-based compensation expense
$
19,032
$
14,167
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In Thousands, Unaudited)
Three Months Ended March
31,
2024
2023
Operating activities
Net income (loss)
$
11,128
$
(10,067
)
Adjustments to reconcile net income (loss)
to net cash provided by operating
Depreciation and amortization
3,001
2,117
Stock-based compensation
19,032
14,167
Change in fair value of liabilities
—
295
Net accretion on securities
(1,077
)
(1,041
)
Impairment of long-lived assets
75
429
Non-cash operating lease cost
574
448
Non-cash acquisition-related costs
—
566
Non-cash other
408
124
Changes in operating assets and
liabilities:
Inventory
(7,362
)
865
Prepaid expenses and other current
assets
(6,708
)
(4,984
)
Other long-term assets
(47
)
5
Accounts payable
3,602
3,955
Accrued liabilities
(2,258
)
1,673
Deferred revenue
6,002
1,394
Operating lease liabilities
(532
)
(463
)
Net cash provided by operating
activities
25,838
9,483
Investing activities
Purchases of investments
(70,700
)
(40,687
)
Maturities of investments
97,700
39,084
Investment in website development and
internal-use software
(3,377
)
(1,875
)
Purchases of property, equipment, and
intangible assets
(10,581
)
(635
)
Net cash provided by (used in) investing
activities
13,042
(4,113
)
Financing activities
Proceeds from exercise of vested stock
options
5,070
245
Payments for taxes related to net share
settlement of equity awards
(7,314
)
(3,657
)
Repurchases of common stock
(28,064
)
—
Net cash used in financing activities
(30,308
)
(3,412
)
Foreign currency effect on cash and cash
equivalents
2
15
Increase in cash, cash equivalents, and
restricted cash
8,574
1,973
Cash, cash equivalents, and restricted
cash at beginning of period
97,519
47,628
Cash, cash equivalents, and restricted
cash at end of period
$
106,093
$
49,601
Reconciliation of cash, cash
equivalents, and restricted cash
Cash and cash equivalents
$
105,237
$
48,745
Restricted cash
856
856
Total cash, cash equivalents, and
restricted cash
$
106,093
$
49,601
Supplemental disclosures of cash flow
information
Cash paid for taxes
$
126
$
286
Non-cash investing and financing
activities
Purchases of property and equipment
included in accounts payable and accrued liabilities
$
594
$
1,290
Right-of-use asset obtained in exchange
for lease liability
2,174
—
Non-GAAP Financial Measures
In addition to our financial results determined in accordance
with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP
financial measure), Adjusted EBITDA margin (which is a non-GAAP
ratio), and Free Cash Flow (which is a non-GAAP financial measure)
each as defined below. We use Adjusted EBITDA, Adjusted EBITDA
margin, and Free Cash Flow to evaluate our ongoing operations and
for internal planning and forecasting purposes. We believe that
Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow, when
taken together with the corresponding U.S. GAAP financial measures,
provide meaningful supplemental information regarding our
performance by excluding certain items that may not be indicative
of our business, results of operations, or outlook. We consider
Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow to be
important measures because they help illustrate underlying trends
in our business and our historical operating performance on a more
consistent basis. We believe that the use of Adjusted EBITDA,
Adjusted EBITDA margin, and Free Cash Flow is helpful to our
investors as they are used by management in assessing the health of
our business, our operating performance, and our liquidity.
However, non-GAAP financial information is presented for
supplemental informational purposes only, has limitations as an
analytical tool, and should not be considered in isolation or as a
substitute for financial information presented in accordance with
U.S. GAAP. In addition, other companies, including companies in our
industry, may calculate similarly-titled non-GAAP financial
measures or ratios differently or may use other financial measures
or ratios to evaluate their performance, all of which could reduce
the usefulness of Adjusted EBITDA, Adjusted EBITDA margin, and Free
Cash Flow as tools for comparison. Reconciliations are provided
below to the most directly comparable financial measures stated in
accordance with U.S. GAAP. Investors are encouraged to review our
U.S. GAAP financial measures and not to rely on any single
financial measure to evaluate our business.
Adjusted EBITDA is a key performance measure that our management
uses to assess our operating performance. Because Adjusted EBITDA
facilitates internal comparisons of our historical operating
performance on a more consistent basis, we use this measure for
business planning purposes. “Adjusted EBITDA” is defined as net
income (loss) before stock-based compensation, depreciation and
amortization, income taxes, acquisition and transaction-related
costs (which includes (i) consideration paid for employee
compensation with vesting requirements incurred directly as a
result of acquisitions, inclusive of revaluation of earn-out
consideration recorded in general and administrative expenses, and
(ii) transaction professional services), impairment of long-lived
assets, change in fair value of liabilities, and interest income.
“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided by
revenue.
Some of the limitations of Adjusted EBITDA include (i) Adjusted
EBITDA does not properly reflect capital commitments to be paid in
the future, and (ii) although depreciation and amortization are
non-cash charges, the underlying assets may need to be replaced and
Adjusted EBITDA does not reflect these capital expenditures. In
evaluating Adjusted EBITDA, you should be aware that in the future
we will incur expenses similar to the adjustments in this
presentation. Our presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by these expenses or any unusual or non-recurring items.
We compensate for these limitations by providing specific
information regarding the U.S. GAAP items excluded from Adjusted
EBITDA. When evaluating our performance, you should consider
Adjusted EBITDA in addition to, and not as a substitute for, other
financial performance measures, including our net loss and other
U.S. GAAP results.
Net Income (Loss) to Adjusted
EBITDA Reconciliation
(In Thousands, Unaudited)
Three Months Ended March
31,
2024
2023
Revenue
$
278,171
$
190,770
Net income (loss)
11,128
(10,067
)
Stock-based compensation
19,032
14,167
Depreciation and amortization
3,001
2,117
Provision for income taxes
1,275
386
Acquisition and transaction-related
costs
376
646
Impairment of long-lived assets
75
429
Change in fair value of liabilities
—
295
Interest income
(2,540
)
(1,913
)
Adjusted EBITDA
$
32,347
$
6,060
Net income (loss) as a % of revenue
4
%
(5
)%
Adjusted EBITDA margin
12
%
3
%
Free Cash Flow is a key performance measure that our management
uses to assess our liquidity. Because Free Cash Flow facilitates
internal comparisons of our historical liquidity on a more
consistent basis, we use this measure for business planning
purposes. “Free Cash Flow” is defined as net cash provided by
operating activities, less purchases of property, equipment, and
intangible assets and investment in website development and
internal-use software in investing activities.
Some of the limitations of Free Cash Flow include (i) Free Cash
Flow does not represent our residual cash flow for discretionary
expenditures and our non-discretionary commitments, and (ii) Free
Cash Flow includes capital expenditures, the benefits of which may
be realized in periods subsequent to those in which the
expenditures took place. In evaluating Free Cash Flow, you should
be aware that in the future we will have cash outflows similar to
the adjustments in this presentation. Our presentation of Free Cash
Flow should not be construed as an inference that our future
results will be unaffected by these cash outflows or any unusual or
non-recurring items. When evaluating our performance, you should
consider Free Cash Flow in addition to, and not as a substitute
for, other financial performance measures, including our net cash
provided by operating activities and other U.S. GAAP results.
Net Cash Provided By Operating
Activities to Free Cash Flow Reconciliation
(In Thousands, Unaudited)
Three Months Ended March
31,
2024
2023
Net cash provided by operating
activities
$
25,838
$
9,483
Less: purchases of property, equipment,
and intangible assets in investing activities
(10,581
)
(635
)
Less: investment in website development
and internal-use software in investing activities
(3,377
)
(1,875
)
Free Cash Flow
$
11,880
$
6,973
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506868237/en/
Investor Relations Bill Newby Investors@forhims.com
Media Relations Abby Reisinger Press@forhims.com
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