INDIA - 2024/11/06: In this photo illustration, a HIMS logo seen displayed on a smartphone and in ... [+] the background. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images The stock price of Hims & Hers Health (NYSE: HIMS), a telehealth platform, has risen a solid 14% in a week. Much of this move came after the U.S. FDA asked for more time to confirm the shortage of Eli Lilly’s weight loss drug – Zepbound. The shortage of GLP-1 drugs bodes w ...

Investment Rating - The report assigns a positive investment rating to HIMS & HERS HEALTH (HIMS.US) based on strong demand for personalized medical solutions and the company's growth potential in the weight management sector [2]. Core Insights - The company reported a revenue of $401.6 million for the third quarter of fiscal year 2024, representing a year-over-year increase of 77%. Online revenue accounted for 97.8% of total revenue, growing by 79% year-over-year [2]. - The gross margin for the quarter was 79.16%, a decrease of 2 percentage points quarter-over-quarter, primarily due to the early stages of scaling the weight management business. Operating profit margin was 5.57%, with operating profit of $220,000, largely driven by marketing expenses, which accounted for 45% of total revenue [2]. - The total number of subscription users exceeded 200,000, a year-over-year increase of 44%. Average monthly revenue per online user grew by 24% to $67, with nearly 300,000 subscribers receiving treatment for two or more conditions [2]. Summary by Sections Financial Performance - For the third quarter, the company achieved a net profit of $75.6 million and free cash flow of $79.4 million [2]. - The company plans to launch a generic version of liraglutide, a GLP-1 weight loss drug, in 2025, addressing the current shortage and difficulties in accessing branded weight loss solutions [2]. Market Dynamics - The demand for personalized medical solutions is strong, with personalized subscription users surpassing 1.03 million, a year-over-year increase of 175% and a quarter-over-quarter increase of 32%, representing 50.5% of total subscription users [2]. - Four main factors are driving the rapid adoption of personalized solutions: detailed service offerings, increased number of cross-specialty solutions, more medication delivery options, and improved affordability of solutions [2].

Hims & Hers Health, Inc.’s (HIMS) investors are reaping some gains from the stock of late. Shares of the San Francisco, CA-based health and wellness platform have gained 31.1% since Nov. 1, outperforming the industry’s 14.6% gain. In the same time frame, the stock outperformed the sector and S&P 500’s 0.6% decline and 4.6% growth, respectively. The company reported its third-quarter 2024 earnings on Nov. 4.Another major development from HIMS in recent months includes the announcement of access to the most c ...

The healthcare company is on fire, and it's still cheap by many measures.Shares of Hims & Hers Health (HIMS 19.09%) have been on fire over the past year, but they're not expensive by most valuation metrics, especially when you consider the company's high growth rate. How much room is left to run? That's what Travis Hoium discusses in this video.*Stock prices used were end-of-day prices of Nov. 11, 2024. The video was published on Nov. 11, 2024. ...

Core Viewpoint - Hims & Hers Health, Inc. (HIMS) shows a significantly improving earnings outlook, making it a strong investment choice as analysts continue to raise earnings estimates for the company [1][2]. Current-Quarter Estimate Revisions - For the current quarter, Hims & Hers Health is expected to earn $0.10 per share, reflecting a remarkable change of +900% from the previous year's reported number [4]. - Over the last 30 days, five estimates have been revised upward with no negative revisions, leading to a Zacks Consensus Estimate increase of 98.61% [4]. Current-Year Estimate Revisions - For the full year, the company is projected to earn $0.47 per share, indicating a year-over-year change of +527.27% [5]. - In the past month, four estimates have been raised with no negative revisions, resulting in a consensus estimate increase of 17.36% [5]. Favorable Zacks Rank - The positive estimate revisions have earned Hims & Hers Health a Zacks Rank 2 (Buy), indicating strong potential for outperformance [6]. - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) tend to significantly outperform the S&P 500 [6]. Bottom Line - The stock has gained 32.3% over the past four weeks, driven by solid estimate revisions, suggesting that the earnings growth prospects may lead to further stock price increases [7].

Core Viewpoint - Hims & Hers Health has demonstrated strong financial performance, with significant revenue growth driven by factors beyond GLP-1 drugs, despite stock volatility related to this category [1][8]. Financial Performance - Revenue for Hims & Hers surged 77% year over year to $401.6 million, exceeding both the company's forecast and analyst consensus [3]. - Net orders increased by 20% to 2.66 million, while average order value (AOV) rose by 48% to $147 [3]. - Adjusted EBITDA grew to $51.1 million from $12.3 million a year ago, and adjusted earnings per share (EPS) reached $0.32, significantly above the expected $0.10 [6]. - Operating cash flow more than tripled to $85.2 million, and free cash flow was reported at $79.4 million, over four times last year's figure [6]. Subscriber Growth - The subscriber base increased by 44% year over year to 2.05 million, with 180,000 net new subscribers added in the quarter [4]. - Over half of the subscribers are now using personalized subscriptions, and the female-focused segment is experiencing significant growth [4]. Marketing and Guidance - Marketing expenditure rose to $182.3 million, a 57% increase, but as a percentage of revenue, it decreased to 45% from 51% a year ago, indicating improved marketing efficiency [6]. - The company raised its full-year revenue guidance to between $1.46 billion and $1.465 billion, with adjusted EBITDA expected between $173 million and $178 million [7]. GLP-1 Drug Impact - The majority of subscribers are not using GLP-1 drugs, with a 40% year-over-year growth in the subscriber base excluding GLP-1 users [5]. - Estimated revenue contribution from GLP-1 drugs is around $30 million, accounting for approximately 10% of total revenue for the quarter [9]. Valuation Metrics - Hims & Hers is valued at a forward price-to-earnings (P/E) ratio of under 26 based on 2025 estimates, which is considered inexpensive given its high revenue growth [10]. - The PEG ratio stands at 0.1, indicating a strong growth potential relative to its valuation [10]. Long-term Outlook - The company is expected to introduce the first generic GLP-1 drug to its platform next year, enhancing its product offerings [11]. - Hims & Hers employs a compounding personalization strategy across its portfolio, suggesting a diversified approach beyond GLP-1 drugs [12].

Core Insights - Hims reported third-quarter results that exceeded analysts' expectations, with a significant revenue increase driven by weight-loss drugs [1][2] - The company plans to launch a generic version of Novo Nordisk's diabetes and weight-loss drug as early as 2025 [1][4] - Bank of America raised its price target for Hims' stock, indicating potential for continued user growth [1][3] Financial Performance - Hims achieved a 77% year-over-year revenue increase, reaching $401.6 million [2] - Revenue from weight-loss drugs is estimated to be between $63 million and $70 million for the latest quarter, showing growth from the previous quarter [3] Strategic Plans - Hims intends to increase marketing spending in the fourth quarter to drive user growth [3] - The company has confirmed a core supplier for the upcoming generic drug and is in the process of completing test and batch validation [4]

Core Viewpoint - Hims & Hers Health, Inc. reported strong financial results for the third quarter of 2024, with significant year-over-year growth in both earnings and revenues, driven by increased subscriber numbers and successful product offerings [1][2][13]. Revenue Performance - Hims & Hers generated revenues of $401.6 million in Q3 2024, reflecting a 77.1% increase year over year and surpassing the Zacks Consensus Estimate by 4.5% [2][11]. - Online Revenues accounted for $392.6 million, up 78.7% year over year, primarily due to new offerings launched after September 30, 2023 [4][5]. - Wholesale Revenues reached $8.9 million, marking a 27.7% increase year over year [6]. Subscriber Growth - The company reported 2 million subscribers, a 43.5% increase year over year, driven by new offerings and increased platform traffic [5]. - Monthly Online Revenue per Average Subscriber rose 24.1% year over year to $67, attributed to newer offerings and changes in product mix [5]. - Net Orders totaled 2.7 million, up 19.9% year over year, with an Average Order Value (AOV) of $147, reflecting a 48.5% increase year over year [6]. Profitability and Expenses - Gross profit increased by 69.7% to $317.9 million, although gross margin contracted by 346 basis points to 79.2% [7]. - Marketing expenses surged 57% year over year to $182.3 million, while technology and development expenses rose 71.9% to $21.1 million [8]. - Operating profit was reported at $22.4 million, a significant improvement from the prior year's operating loss of $8.6 million [8]. Financial Position - At the end of Q3 2024, Hims & Hers had cash and cash equivalents of $254.1 million, up from $227.3 million at the end of Q2 2024 [9]. - Cumulative net cash provided by operating activities reached $164.7 million, compared to $51.5 million a year ago [10]. Future Outlook - The company projects Q4 2024 revenues between $465 million and $470 million, indicating a year-over-year growth of 89-91% [11]. - For the full year, Hims & Hers expects revenues in the range of $1.460 billion to $1.465 billion, representing a growth of 67-68% from 2023 levels, an increase from the previous outlook [12].

Financial Data and Key Metrics - Revenue increased 77% year-over-year to $401.6 million in Q3 2024, driven by strong online channel performance [42] - Online revenue grew 79% year-over-year to $392.6 million, with subscriber base expansion being the primary growth driver [43] - Adjusted EBITDA reached $51.1 million, reflecting a 13% margin, up 7 points year-over-year [55] - Gross margin declined 2 points quarter-over-quarter to 79%, primarily due to scaling of the weight-loss specialty [56] - Net income was $75.6 million, including a $60.8 million tax benefit related to the release of a tax valuation allowance [59] - Free cash flow was $79.4 million, increasing cash and short-term investments by $27 million quarter-over-quarter to $254 million [61] Business Line Performance - The company ended Q3 with over 2 million subscribers, a 44% increase year-over-year, with 50% utilizing personalized solutions [8] - The weight-loss specialty saw significant growth, with 20,000 existing customers adopting weight-loss solutions and 20% of weight-loss subscribers having a multi-specialty relationship [52] - The Hers brand surpassed 400,000 subscribers, with strong growth in dermatology and other specialties [11] - Personalized solutions accounted for over 65% of new subscribers in Q3, driving higher retention and customer satisfaction [47][48] Market Performance - The company expanded access to personalized solutions in less affluent communities, with over 400,000 subscribers from households earning below $50,000 [14] - Over 100,000 subscribers are over the age of 65, with nearly 7,000 accessing weight-loss solutions [15] - The service appreciation initiative launched in September 2024, offering discounted GLP-1 weight-loss solutions to U.S. military veterans, teachers, nurses, and first responders [16] Strategy and Industry Competition - The company focuses on democratizing access to high-quality personalized healthcare solutions at affordable prices, leveraging its technology platform to scale efficiently [17][39] - Investments in 503A and 503B facilities aim to enhance capacity and automation, supporting long-term growth in personalized solutions [64][65] - The company plans to introduce liraglutide, the first generic GLP-1, in 2025, further expanding its weight-loss offerings [37] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong consumer demand for personalized solutions and the company's ability to scale efficiently [42][55] - The weight-loss specialty is expected to continue driving growth, with plans to expand offerings and improve operational efficiency [56][68] - The company anticipates Q4 2024 revenue of $465 million to $470 million, representing 89% to 91% year-over-year growth, with full-year revenue expected between $1.46 billion and $1.465 billion [66] Other Important Information - The company repurchased 1.9 million shares at an average price of $15.83, with $70 million remaining on its $100 million share repurchase authorization [61] - Marketing spend as a percentage of revenue improved to 45%, driven by increased awareness and customer retention [58] Q&A Session Summary Question: GLP-1 Contribution in Q3 - The company did not provide specific GLP-1 revenue figures but noted subscriber growth excluding GLP-1s was over 40% year-over-year [74] Question: Future of GLP-1 Business - The company expects a diverse portfolio of weight-loss solutions, including oral medications, liraglutide, and personalized GLP-1s, to drive durable growth [76][77] Question: GLP-1 Retention Rates - Retention rates for GLP-1 solutions are strong, with 85% of patients engaging at 4 weeks and 70% continuing at 12 weeks, driven by consistent provider communication and personalized dosing [81][82] Question: Personalized Dosing and Titration - The company emphasized the clinical necessity of personalized dosing for GLP-1s, which aligns with compounding exemptions and addresses side-effect management [89][90] Question: Medisource Acquisition and CapEx - Investments in Medisource will focus on expanding capacity and automation, with CapEx diversified across personalized solutions and operational efficiency [91][92] Question: Oral Weight-Loss Business - The oral weight-loss business continues to perform well, offering 70% of the weight loss of GLP-1s at $70 per month, attracting consumers with its affordability and safety profile [102][104] Question: Insurance and Reimbursement - The company plans to continue focusing on the cash-pay market for weight-loss solutions, given limited insurance coverage for branded GLP-1s [107] Question: New Sub-Verticals in Hers Category - The Hers business is growing rapidly, with potential new verticals in perimenopause, menopause, and hormonal therapy, driven by Dr. Jessica Shepherd's expertise [112] Question: Pricing Strategy - The company may test price reductions as efficiency gains are unlocked, but will also explore other value-adding opportunities beyond pricing [117] Question: GLP-1 Revenue Contribution - GLP-1 subscriber count was estimated at 47,000 to 48,000, with revenue contribution inferred from average monthly revenue per subscriber [124] Question: GLP-1 Subscription Duration - GLP-1 subscribers typically sign up for around five months, with strong retention beyond the initial 12-week period [126]

Earnings Performance - Hims & Hers Health reported quarterly earnings of $0.06 per share, matching the Zacks Consensus Estimate, compared to a loss of $0.04 per share a year ago [1] - The company delivered a 20% earnings surprise in the previous quarter, surpassing the expected $0.05 per share with actual earnings of $0.06 per share [1] - Over the last four quarters, the company has exceeded consensus EPS estimates three times [1] Revenue Growth - Hims & Hers Health posted revenues of $401.56 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 4.52% [2] - This represents a significant increase from year-ago revenues of $226.7 million [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Stock Performance - Hims & Hers Health shares have surged approximately 128.8% since the beginning of the year, outperforming the S&P 500's gain of 20.1% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.05 on $424.7 million in revenues [7] - For the current fiscal year, the consensus EPS estimate is $0.22 on $1.4 billion in revenues [7] - The estimate revisions trend for Hims & Hers Health is mixed, resulting in a Zacks Rank 3 (Hold) [6] Industry Context - Hims & Hers Health operates in the Zacks Medical Info Systems industry, which is currently in the top 30% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Clover Health Investments, Corp. (CLOV) is expected to report a quarterly loss of $0.03 per share for the quarter ended September 2024, representing a year-over-year improvement of 66.7% [9] - Clover Health's revenues are expected to be $347.6 million, down 27.9% from the year-ago quarter [10] - The consensus EPS estimate for Clover Health has remained unchanged over the last 30 days [9]