Hims & Hers, a leading online health and wellness company, demonstrated a strong financial performance in the first quarter of 2024, surpassing expectations with a 46% increase in quarterly revenue, reaching $278.2 million compared to the $268.7 million forecasted by Wall Street analysts. This impressive growth shows the expanding appeal of telehealth and personalized healthcare solutions, driven by a marked 41% year-over-year increase in online subscribers, now totaling 1.7 million. This increase in subscribers highlights a growing consumer preference for accessible and direct-to-consumer healthcare services, a sector where Hims & Hers has strategically positioned itself as a front-runner by leveraging technology to provide tailored health solutions across various needs including sexual health, dermatology, and mental wellness.
Financially, the company has seen a remarkable turnaround, reporting a net income of $11.1 million, or 5 cents per share on an adjusted basis, which contrasts with the $10 million loss reported in the same period the previous year. This profitability is reflective of efficient operational management and scaling. The adjusted EBITDA for the quarter was reported at $32.3 million, a big increase from $6.1 million in the first quarter of 2023. In response to these strong results, Hims & Hers has revised its full-year revenue forecast to between $1.2 billion and $1.23 billion and elevated its adjusted EBITDA outlook to between $120 million and $135 million. This revised forecast is a testament to the company’s sustained growth momentum and operational efficiency, further supported by its ability to adapt and expand its product offerings to meet evolving consumer demands.
Hims & Hers launched a new weight loss program late last year, which includes digital tracking tools and educational content to complement its health product lines. This program does not yet include prescriptions for the latest GLP-1 weight loss medications, but the company’s CEO, Andrew Dudum, indicated that Hims & Hers might enter this market segment “soon.” This decision shows the company’s approach to broadening its healthcare services and adapting to market trends and consumer needs. The company has also seen an uptick in subscribers opting for personalized subscription plans, nearly tripling to more than 600,000, which represents over 35% of its total subscriber base. This shift towards personalized health plans highlights the company’s successful use of data-driven insights to enhance service delivery and customer satisfaction.
Hims & Hers continues to evolve its business strategy by not only expanding its product portfolio but also enhancing its telehealth platform to provide tailored healthcare solutions. This includes ongoing collaborations with leading medical institutions and healthcare professionals to refine and expand its offerings. The company’s CEO emphasized the use of “hundreds of thousands of interactions” on their platform to better understand and address consumer health concerns, which in turn supports more personalized and effective treatment options. These efforts are aimed at maintaining a competitive edge in the telehealth market by improving patient outcomes and adherence through personalized care and varied product form factors.
The company’s optimistic financial outlook and strategic expansions illustrate its commitment to being a leader in the telehealth industry, removing traditional barriers to healthcare access, and focusing on personalization and affordability in treatment options. With a strong foundation in technology and customer-centric solutions, Hims & Hers is well-positioned to continue its trajectory of rapid and profitable growth, making it a powerful entity in the evolving areas of healthcare and wellness.
