Core Insights - Hims & Hers (NYSE: HIMS) stock experienced a significant decline of approximately 19% in after-hours trading following the release of its Q4 earnings report, which was unexpected given that revenue slightly exceeded market expectations [1] Financial Performance - The company's reported earnings per share (EPS) was noted, but specific figures were not disclosed in the provided text [1]

Financial Performance - Hims & Hers (NYSE: HIMS) reported a double beat in its financial results, indicating that the company exceeded both revenue and earnings expectations [1] - Despite the positive financial performance, the stock experienced a decline of 18% in after-hours trading [1] Company Background - Hims & Hers operates in the health and wellness sector, focusing on providing telehealth services and products [1] - The company is gaining attention for its innovative approach to healthcare, which includes a direct-to-consumer model [1] Analyst Insights - The analysis is conducted by MMMT Wealth, led by Oliver, a CPA with experience in private equity, hedge funds, and asset management [1] - The focus of the analysis is on long-term investment strategies, with a time horizon of 3-5 years [1] - Oliver emphasizes the importance of thorough research in identifying high-potential investment opportunities [1]

Financial Performance and Key Metrics - Revenue for Q4 2024 was $481 million, representing a year-over-year growth of 95%, while total revenue for the fiscal year 2024 reached $1.5 billion, reflecting a 69% increase [38][39] - Adjusted EBITDA for Q4 2024 was $54 million, with adjusted EBITDA margins exceeding 11%, and for the full year, adjusted EBITDA was $177 million, with margins more than doubling year-over-year to 12% [45][49] - Net income for Q4 2024 was $26 million, marking the company's first full year of GAAP profitability, with total free cash flow generated in 2024 amounting to nearly $200 million [50][49] Business Line Performance - Total subscribers on the platform increased by 45% to over 2.2 million in Q4 2024, with over 55% subscribing to at least one personalized solution [39] - The men's and women's dermatology segments saw subscriber growth of over 55% and 100% year-over-year, respectively [40] - The oral-based weight loss offering launched in Q4 2023 achieved a revenue run rate of over $100 million within seven months, while the GLP-1 offering generated over $225 million in incremental revenue for 2024 [41][42] Market Data and Key Metrics - Revenue outside of the GLP-1 offering increased by 43% year-over-year to $1.2 billion in 2024, indicating strong growth in personalized treatments [39] - Monthly online average revenue per subscriber rose by 38% year-over-year to $73 in Q4 2024, driven by the scaling of GLP-1s and a shift towards premium personalized offerings [44] Company Strategy and Industry Competition - The company aims to transform healthcare by leveraging technology and personalization, with a focus on expanding diagnostic capabilities and personalized treatment offerings [6][14] - Recent acquisitions, including whole body lab testing facilities and a peptide facility, are expected to enhance the company's service offerings and supply chain resilience [8][19] - The company plans to invest in technology to support increased patient visits and enhance the efficiency of care delivery [72] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, aiming to reach 10 million subscribers within the next five to six years [68] - The company anticipates revenue for Q1 2025 to be between $520 million and $540 million, representing a year-over-year increase of 87% to 94% [55] - For the full year 2025, revenue is expected to range from $2.3 billion to $2.4 billion, reflecting a year-over-year increase of 56% to 63% [56] Other Important Information - The company is committed to maintaining transparency and compliance with regulatory requirements, particularly regarding the compounding of medications [30][32] - The company plans to continue its focus on addressing the obesity epidemic in America, with expectations of significant contributions from its weight loss specialty [27][28] Q&A Session Summary Question: What are the top strategies to reach tens of millions of subscribers? - Management believes achieving 10 million subscribers is feasible within five to six years, focusing on expanding categories, personalized treatments, and technology investments [68][71] Question: How is Hims leveraging AI and data analytics? - AI is central to enhancing telehealth offerings and personalized treatments, with plans for AI-driven diagnostics and automation to improve patient outcomes [74][76] Question: What happens to patients currently on commercial semaglutide? - Patients will be notified to seek alternative options, with the platform offering oral medications and personalized solutions as alternatives [110] Question: What are the expectations for liraglutide and oral weight loss drugs? - The oral weight loss business remains strong, with liraglutide expected to contribute significantly later in the year [100][97] Question: Can you provide insights on the Hers platform's growth? - The Hers platform benefits from marketing strategies and personalization learnings from Hims, with strong performance in dermatology and mental health categories [105]

Core Insights - Hims & Hers Health, Inc. reported $481.14 million in revenue for Q4 2024, marking a year-over-year increase of 95.1% [1] - The earnings per share (EPS) for the same period was $0.11, compared to $0.01 a year ago, although it fell short of the consensus estimate of $0.12 by 8.33% [1] - The revenue exceeded the Zacks Consensus Estimate of $471.42 million by 2.06% [1] Financial Performance Metrics - Average Order Value (AOV) was $168, surpassing the two-analyst average estimate of $158.71 [4] - Net Orders stood at 2.81 million, matching the two-analyst average estimate [4] - Monthly Online Revenue per Average Subscriber was $73, exceeding the two-analyst average estimate of $71.16 [4] - Subscribers at the end of the period totaled 2.23 million, below the two-analyst average estimate of 2.38 million [4] - Revenue from Wholesale was $10.38 million, slightly above the $10.15 million average estimate based on five analysts [4] - Online Revenue reached $470.76 million, surpassing the $460.87 million average estimate based on five analysts [4] Stock Performance - Shares of Hims & Hers Health have returned +59.6% over the past month, contrasting with the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Market Performance - Major market indexes closed in the red, with the S&P 500 down -0.50%, Nasdaq down -1.21%, and Russell 2000 down -0.78%, while the Dow gained +0.08% due to strong performances from Travelers and Nike [1] NVIDIA - NVIDIA shares reached all-time highs at the beginning of the year but have since declined, trading down -3% just before its anticipated Q4 earnings results, raising questions about whether this represents a buying opportunity or a warning [2] Palantir - Palantir shares fell -10.5% today, marking a -27% drop from its all-time highs reached a week ago, influenced by potential reductions in Defense Department contracts by as much as -8% annually over the next five years; however, the company is still up +19% year-to-date and +285% over the past year [3] Zoom Video - Zoom Video reported Q4 earnings of $1.41 per share, slightly exceeding expectations, with revenues matching forecasts at $1.18 billion; however, shares fell -4% in late trading due to lower revenue guidance for the next quarter, remaining flat year-to-date but up +28% from the previous year [4] Hims & Hers - Hims & Hers shares dropped -17% following its Q4 report, despite outperforming revenue expectations and providing increased guidance for the upcoming quarter and full year; the decline is attributed to a "sell the news" reaction after a +112% increase year-to-date [5]

Company Performance - Hims & Hers Health, Inc. reported quarterly earnings of $0.11 per share, missing the Zacks Consensus Estimate of $0.12 per share, but showing an increase from earnings of $0.01 per share a year ago, representing an earnings surprise of -8.33% [1] - The company posted revenues of $481.14 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.06%, and showing significant growth from year-ago revenues of $246.62 million [2] - Over the last four quarters, Hims & Hers Health has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Hims & Hers Health shares have increased approximately 103.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.2% [3] - The current consensus EPS estimate for the coming quarter is $0.14 on revenues of $497.8 million, and for the current fiscal year, it is $0.55 on revenues of $2.07 billion [7] Industry Outlook - The Medical Info Systems industry, to which Hims & Hers Health belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

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% in after-hours trading due to a decline in gross margin from 83% to 77% as costs increased, particularly related to new weight-loss offerings [2][3] - The company anticipates first-quarter revenue between $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]

Telehealth Services and Expansion - Hims & Hers has facilitated over 30 million telehealth consultations, providing access to personalized care across all 50 states and the UK[18]. - The company expanded its operations in the UK through the acquisition of Honest Health Limited, aiming for further international growth[31]. - Hims & Hers has established partnerships with leading health systems, enhancing customer access to in-person care[35]. - The company is pursuing rapid specialty expansion into new conditions, including testosterone treatment, menopause, and sleep disorders, which represent significant market opportunities[27]. - The company has completed multiple acquisitions and expanded into new specialties, increasing its customer base significantly[93]. Product Offerings and Innovations - Recent product launches include new prescription offerings in weight loss, sexual health, dermatology, and mental health, demonstrating the scalability of the platform[24]. - The company began offering access to GLP-1s, starting with compounded injectable semaglutide in May 2024 and branded injectable semaglutide in August 2024, as part of its weight loss specialty[59]. - The company began offering compounded injectable semaglutide in May 2024, responding to high consumer demand for GLP-1 medications[98]. - The company announced two acquisitions: a peptide manufacturing facility and a laboratory business, entering new operational areas with associated regulatory requirements[61]. - The company is expanding into laboratory testing services, which will require compliance with new licensure and certification requirements, as well as oversight from regulatory agencies such as CMS and FDA[181]. Financial Performance and Growth - Revenue increased from $526.9 million in 2022 to $872.0 million in 2023, and projected to reach $1,476.5 million in 2024[92]. - The company has experienced rapid growth but acknowledges potential challenges in maintaining profitability and managing operational complexities[90]. - The company expects increased traffic to its platform during the first quarter due to health and wellness-related New Year's resolutions, potentially boosting subscriber growth[73]. - Employee count rose significantly from 651 as of December 31, 2022, to 1,637 as of December 31, 2024[93]. Regulatory Compliance and Challenges - The company is subject to extensive regulation by the FDA and other authorities regarding the testing, production, and distribution of its products, including compounded drugs[49]. - Compliance with current good manufacturing practice (cGMP) is essential for the company’s third-party manufacturers, and failure to comply may lead to enforcement actions by the FDA[50]. - The company must monitor legislative and regulatory developments regarding telehealth and pharmaceutical laws to support its operations[41]. - The company is subject to various health information privacy laws, including HIPAA and state-specific regulations, which may evolve and impact operations[65][66]. - The evolving regulatory environment may require increased compliance costs, which could adversely affect the company's financial results[195]. Marketing and Customer Engagement - The marketing strategy focuses on analytics and data to measure consumer behavior and the effectiveness of marketing budgets, viewing these capabilities as a core strength[72]. - The company is focused on expanding its marketing infrastructure to drive customer enrollment, which is critical for future success[111]. - Marketing strategies include social media, email, and celebrity influencers, but are subject to changing privacy laws that may limit effectiveness[101]. - The company’s ability to attract and retain customers is highly dependent on its marketing effectiveness and compliance with applicable laws[112]. Competition and Market Landscape - The company faces competition from traditional healthcare providers and other telehealth services, highlighting a significant market opportunity as consumer behavior shifts[81][82]. - The company operates in highly competitive markets, facing competition from established healthcare providers, traditional retailers, and technology companies with significant resources[122]. - The competitive landscape may change with new entrants or alliances that could impact the company's market position and financial performance[124]. - The company faces intense competition in the telehealth market, which may impact its pricing decisions and overall revenue[165]. Operational Efficiency and Supply Chain - The integrated technology platform allows for efficient customer service from discovery to fulfillment, contributing to cost advantages and robust gross margins[23]. - The company has opened a 300,000 square foot facility in Ohio for dedicated pharmacy services, enhancing operational efficiency[28]. - Supply chain constraints are expected to continue, particularly affecting the availability of branded GLP-1 offerings, which could slow order fulfillment[156]. - The company relies on third-party service providers, including Amazon Web Services, for its platform operations, and any disruption could negatively impact revenue generation[150]. Employee and Corporate Culture - As of December 31, 2024, the company employed 1,637 individuals across various functions, emphasizing a commitment to employee development and well-being[75]. - The company has a remote-first policy since June 2020, enhancing its ability to attract diverse talent and adapt to the new work environment[76]. - The company’s remote-first policy may affect productivity and company culture[171]. Risks and Economic Factors - Economic uncertainty, including inflation and geopolitical tensions, has contributed to increased market volatility, making it difficult for the company to forecast future business activities[143]. - A significant downturn in the economy may lead customers to pause or cancel spending on the company's platform, adversely affecting revenue[144]. - The company faces risks related to acquisitions, including operating difficulties, dilution, and the potential for significant cash expenditures[136]. - The company may face challenges in maintaining high-quality customer support, which is critical for its reputation and revenue[131].

Revenue and Growth - Revenue for 2024 was $1.5 billion, representing a 69% increase year-over-year[1] - Subscribers grew to 2.2 million, up 45% year-over-year[1] - Revenue for Q4 2024 reached $481,139,000, a 95% increase from $246,619,000 in Q4 2023[29] - Revenue for the year ended December 31, 2024, was $1,476,514,000, up from $872,000,000 in 2023, indicating a year-over-year growth of approximately 69%[37] - Online revenue for 2024 was $1.44 billion, a 71% increase from $842.4 million in 2023[4] Profitability - Net income for 2024 was $126 million, compared to a net loss of $(23.5) million in 2023[7] - Net income for the year ended December 31, 2024, was $126,038,000, a significant recovery from a net loss of $23,546,000 in 2023[32] - Net income for Q4 2024 was $26,025,000, a significant increase from $1,245,000 in Q4 2023, resulting in a net income margin of 5% compared to 1% in the previous year[37] Cash Flow and Liquidity - Free cash flow for 2024 was $198.3 million, compared to $47 million in 2023[7] - Free Cash Flow for Q4 2024 was $59,500,000, up from $10,785,000 in Q4 2023, reflecting a strong improvement in liquidity[39] - Cash provided by operating activities for the year was $251,084,000, compared to $73,483,000 in 2023, indicating improved operational efficiency[32] - Net cash provided by operating activities for the year ended December 31, 2024, was $251,084,000, compared to $73,483,000 in 2023, showing a substantial increase[39] EBITDA and Margins - Adjusted EBITDA for 2024 was $177 million, up from $49.5 million in 2023[7] - Adjusted EBITDA for Q4 2024 was $54,123,000, representing an increase from $20,570,000 in Q4 2023, with an Adjusted EBITDA margin of 11% compared to 8% in the previous year[37] - Adjusted EBITDA guidance for 2025 is projected to be between $270 million and $320 million[15] Expenses and Costs - Marketing expenses for Q4 2024 were $221,085,000, up from $125,895,000 in Q4 2023, reflecting increased investment in customer acquisition[29] - Stock-based compensation for the year ended December 31, 2024, totaled $92,322,000, up from $66,080,000 in 2023, indicating increased employee compensation related to performance[37] - The company incurred acquisition and transaction-related costs of $3,979,000 for the year ended December 31, 2024, compared to $3,016,000 in 2023[37] - Legal settlement expenses for the year ended December 31, 2024, were $2,008,000, with no such expenses reported in 2023[37] - The company reported a depreciation and amortization expense of $17,088,000 for the year ended December 31, 2024, compared to $9,515,000 in 2023[37] Assets and Liabilities - Total current assets increased to $395,831,000 in 2024 from $265,053,000 in 2023, driven by a rise in cash and cash equivalents[28] - Total liabilities rose to $230,823,000 in 2024, up from $97,157,000 in 2023, primarily due to increased accounts payable and deferred revenue[28] - The company reported a total stockholders' equity of $476,716,000 as of December 31, 2024, compared to $344,029,000 in 2023, indicating strong financial health[28] Future Outlook - The company expects full year 2025 revenue to be in the range of $2.3 billion to $2.4 billion[1] - Adjusted EBITDA and Free Cash Flow metrics are used by the company to evaluate ongoing operations and liquidity, although specific figures were not disclosed[33] - The company emphasizes that Adjusted EBITDA and Free Cash Flow should be considered alongside other financial performance measures, including net income and U.S. GAAP results[36][38]

Company Overview - Hims & Hers Health, Inc. is a consumer-centric health and wellness platform that offers personalized healthcare solutions and seamless digital access, launched in 2017 [12] - The company operates on dual revenue streams, which include online subscriptions and wholesale retail, catering to a broad range of health needs across key therapeutic categories [12] Investment Insights - Hims & Hers is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid performance potential [13] - The company has a Momentum Style Score of A, with shares increasing by 59.6% over the past four weeks, suggesting strong upward price momentum [13] - For fiscal 2024, one analyst has revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $0.55 per share [13] - Hims & Hers has an average earnings surprise of 80%, indicating a strong track record of exceeding earnings expectations [13] - Given its solid Zacks Rank and top-tier Momentum and VGM Style Scores, Hims & Hers is recommended for investors' consideration [14]