Hims & Hers Health, Inc. (NYSE:HIMS) Q2 2024 Earnings Conference Call August 5, 2024 5:00 PM ET Company Participants Bill Newby - Head, IR Andrew Dudum - Co-Founder & CEO Yemi Okupe - CFO Conference Call Participants Maria Ripps - Canaccord Allen Lutz - Bank of America Jack Wallace - Guggenheim Securities Daniel Grosslight - Citi Jonna Kim - TD Cowen Aaron Kessler - Seaport Global Michael Cherny - Leerink Partners Jailendra Singh - Truist Securities Glen Santangelo - Jefferies George Hill - Deutsche Bank Ko ...

Revenue and Profit Growth - Revenue for Q2 2024 increased to $315.648 million, up 51.8% from $207.912 million in Q2 2023[12] - Gross profit for Q2 2024 rose to $256.613 million, a 50.8% increase from $170.158 million in Q2 2023[12] - Total revenue for the three months ended June 30, 2024 was $315.6 million, with online revenue contributing $306.8 million and wholesale revenue $8.8 million[29] - Online revenue increased by 52.5% year-over-year to $574.6 million for the six months ended June 30, 2024[29] Net Income and Comprehensive Income - Net income for Q2 2024 was $13.297 million, compared to a net loss of $7.157 million in Q2 2023[12] - Total comprehensive income for Q2 2024 was $13.291 million, compared to a loss of $7.304 million in Q2 2023[12] - Net loss for the six months ended June 30, 2023 was $17.2 million, compared to net income of $24.4 million for the same period in 2024[18] - Basic net income per share for the six months ended June 30, 2024 was $0.11, compared to a net loss per share of $0.08 for the same period in 2023[91] Operating Expenses - Marketing expenses for Q2 2024 were $144.922 million, up 35.2% from $107.219 million in Q2 2023[12] - Total operating expenses for Q2 2024 increased to $245.583 million, up 36.9% from $179.394 million in Q2 2023[12] - Operating lease costs for the six months ended June 30, 2024 were $1.4 million, up from $1.2 million in the same period of 2023[51] Stock-Based Compensation - Stock-based compensation for Q2 2024 was $24.672 million[14] - Stock-based compensation expense was $31.0 million for the six months ended June 30, 2023, increasing to $43.1 million for the same period in 2024[18] - Total stock-based compensation expense for the three months ended June 30, 2024 was $24.042 million, compared to $16.845 million for the same period in 2023[86] Stockholders' Equity and Accumulated Deficit - Total stockholders' equity as of June 30, 2024, was $361.966 million[14] - Accumulated deficit decreased to $343.750 million as of June 30, 2024, from $368.175 million at the end of 2023[14] - Total stockholders' equity increased from $311.7 million as of December 31, 2022 to $320.1 million as of June 30, 2023[16] Cash Flow and Investments - Net cash provided by operating activities was $26.3 million for the six months ended June 30, 2023, increasing significantly to $79.4 million for the same period in 2024[18] - Cash, cash equivalents, and restricted cash increased from $66.3 million as of June 30, 2023 to $130.2 million as of June 30, 2024[18] - The company invested $6.2 million in website development and internal-use software for the six months ended June 30, 2024, up from $4.1 million in the same period of 2023[18] - Purchases of property, equipment, and intangible assets increased from $5.3 million in the six months ended June 30, 2023 to $13.8 million in the same period of 2024[18] - Cash and cash equivalents and short-term investments totaled $227.3 million as of June 30, 2024, compared to $221.0 million as of December 31, 2023[168] Share Repurchases and Equity Plans - The company repurchased $48.0 million of common stock during the six months ended June 30, 2024, compared to no repurchases in the same period of 2023[18] - The company repurchased $48.0 million worth of Class A common stock during the six months ended June 30, 2024, fully utilizing its $50.0 million share repurchase program[63] - The Board of Directors authorized a new share repurchase program in July 2024, allowing the company to repurchase up to $100 million of Class A common stock[95] - 21,000,000 shares of Class A common stock were reserved under the 2020 Equity Incentive Plan, with an additional 19,000,000 shares potentially added from the 2017 Plan[66] - As of June 30, 2024, 54,332,951 shares of Class A common stock were reserved under the 2020 Plan, with 14,625,499 shares available for grant[67] - The Employee Stock Purchase Plan (ESPP) reserved 4,000,000 shares initially, with 6,047,919 shares reserved and 4,692,982 shares available for issuance as of June 30, 2024[68] - $0.6 million was withheld via employee payroll deductions for ESPP participants as of June 30, 2024[69] - $3.4 million of unrecognized stock-based compensation related to the ESPP is expected to be recognized over 1.60 years[70] - The CEO was granted 3,246,139 and 1,623,070 stock options in 2020, with a grant date fair value of $16.6 million[72] - As of June 30, 2024, $10.8 million of unrecognized stock-based compensation expense related to unvested stock options is expected to be recognized over 1.69 years[75] - $179.8 million of unrecognized stock-based compensation expense related to unvested RSUs is expected to be recognized over 3.16 years[78] - $25.1 million of unrecognized stock-based compensation expense related to unvested PRSUs is expected to be recognized over 2.28 years[80] - 462,335 Class A common stock warrants were outstanding and exercisable as of June 30, 2024, with an aggregate intrinsic value of $8.5 million[81] - The company granted 2,332,557 restricted shares with a grant date fair value of $24.2 million in connection with the acquisition of YoDerm, Inc. (Apostrophe), with vesting contingent on continued employment[85] Assets and Liabilities - Short-term investments as of June 30, 2024 totaled $98.0 million, with U.S. Treasury bills accounting for $68.2 million[39] - Inventory increased by 80.7% to $40.6 million as of June 30, 2024 compared to December 31, 2023[41] - Property, equipment, and software net value increased by 37.1% to $49.5 million as of June 30, 2024[43] - Depreciation and amortization expense for property, equipment, and software doubled to $2.8 million for the three months ended June 30, 2024 compared to the same period in 2023[43] - Intangible assets net carrying value was $17.1 million as of June 30, 2024, with a weighted average remaining useful life of 6.9 years[45] - Intangible assets net carrying value as of December 31, 2023 was $18.6 million with a weighted average remaining useful life of 7.3 years[47] - Amortization expense for intangible assets was $0.8 million for the three months ended June 30, 2024, down from $1.0 million in the same period of 2023[47] - Future amortization expense for intangible assets is projected to be $17.1 million over the remaining life of the assets[48] - Total accrued liabilities as of June 30, 2024 were $28.9 million, slightly down from $29.0 million at the end of 2023[49] - Present value of net future minimum lease payments under non-cancelable operating leases is $11.5 million as of June 30, 2024[52] - Total financial assets measured at fair value were $141.5 million as of June 30, 2024, down from $167.7 million at the end of 2023[57][58] Impairment Charges - Long-lived assets impairment charges were less than $0.1 million for the three months ended June 30, 2024, compared to no impairment in the same period in 2023[28] - The company recognized $0.1 million and $0.4 million of impairment charges on long-lived assets during the six months ended June 30, 2024 and 2023, respectively[28] Related-Party Transactions - The company recorded $1.5 million in payments to Vouched, a related-party company, for the six months ended June 30, 2024, compared to $1.0 million for the same period in 2023[87] Tax and Other Financial Metrics - The effective income tax rate for the six months ended June 30, 2024 was 5.4%, compared to -2.2% for the same period in 2023[93] - Other comprehensive loss for Q2 2024 was $6 thousand[14] Business Operations and Acquisitions - The company operates in five core specialties: sexual health, men's and women's dermatology, mental health, and weight loss[20] - The company executed a purchase agreement in July 2024 to acquire a 503B compounding outsourcing facility for approximately $31 million in cash and stock consideration[94] - VIEs generated $72.1 million in revenue for the six months ended June 30, 2024, up from $46.4 million in the same period of 2023[55] Foreign Currency Risk - The company does not have significant foreign currency risk as it operates primarily in the United States, with minimal operations in the United Kingdom[169] Service Revenue - Service revenue represented less than 10% of consolidated revenues for both the three and six months ended June 30, 2024 and 2023[31] Deferred Revenue - Deferred revenue increased significantly from $0.6 million for the six months ended June 30, 2023 to $13.3 million for the same period in 2024[18]

Hims & Hers Health, Inc. Reports Second Quarter 2024 Financial Results Revenue of $315.6 million, up 52% year-over-year in Q2 2024 Net income of $13.3 million; Adjusted EBITDA of $39.3 million in Q2 2024 Subscribers grew to 1.9 million, up 43% year-over-year in Q2 2024 Raises full year 2024 revenue guidance to a range of $1.37 billion to $1.40 billion and Adjusted EBITDA guidance to a range of $140 million to $155 million SAN FRANCISCO, August 5, 2024 – Hims & Hers Health, Inc. ("Hims & Hers" or the "Compan ...

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After a late-May bull gap on the charts, healthcare stock Hims & Hers Health Inc (NYSE:HIMS) steadily worked higher to snag a record high of $25.74 on June 18. Since then, the stock has traded choppily as the company prepares for its second-quarter earnings call, due out after the market closes on Monday, Aug. 5. However, HIMS' most recent dip on the charts has it flashing a bullish signal. According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, HIMS is within one standard deviation o ...

YTD Price Comparison Key Valuation Metric Price-to-Sales Forward Twelve Months (F12M) Long-Term Investment Visibility Management believes that partnerships with leading medical institutions and experts within each of Hims & Hers' specialties enable it to provide access to customized clinical solutions that are designed with a focus on safety and efficacy. This allows providers on the company's platform to meet their patients' clinical needs at an individual level, targeting things like side effects and adhe ...

The market expects Hims & Hers Health, Inc. (HIMS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 5, 2024, might help the stock move higher if these key ...

For the full year, the earnings estimate of $0.20 per share represents a change of +281.82% from the year-ago number. Investors might want to bet on Hims & Hers Health, Inc. (HIMS) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sel ...

Based on the most recent data, HIMS has returned 155.8% so far this year. Meanwhile, the Medical sector has returned an average of 6.8% on a year-to-date basis. This shows that Hims & Hers Health, Inc. is outperforming its peers so far this year. In TransMedics' case, the consensus EPS estimate for the current year increased 701.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy). Another stock in the Medical sector, TransMedics (TMDX) , has outperformed the sector so far this year. ...

Sustainability Projected Earnings Growth 90.00% Hims & Hers: A Story of Growth and Profitability Hims & Hers Health, Inc. (HIMS) Price Chart for Friday, July, 19, 2024 The company's foray into weight loss treatments, including the highly sought-after GLP-1 injections, further exemplifies its ability to adapt to market trends and capitalize on emerging opportunities. While GLP-1 is not the sole driver of Hims & Hers' investment thesis, it showcases the company's agility in integrating popular medications int ...