Hims(US:HIMS)2025-05-05 20:17Financial Performance - Revenue for Q1 2025 reached $586.01 million, a 110.5% increase compared to $278.17 million in Q1 2024[22] - Gross profit for Q1 2025 was $430.69 million, up 88% from $229.10 million in Q1 2024[22] - Net income for Q1 2025 was $49.49 million, significantly higher than $11.13 million in Q1 2024, representing a 345% increase[22] - Total revenue for the three months ended March 31, 2025, was $586.0 million, a 110.7% increase from $278.2 million in the same period of 2024[51] - Adjusted EBITDA for Q1 2025 was $91.1 million, compared to $32.3 million in Q1 2024, with an Adjusted EBITDA margin of 16%[165] - Segment net income for the three months ended March 31, 2025, was $49.49 million, compared to $11.13 million in 2024[131] - Free Cash Flow for the three months ended March 31, 2025, was $50.1 million, compared to $11.9 million in 2024, representing an increase of $38.2 million[167] Assets and Liabilities - Total current assets increased to $446.96 million as of March 31, 2025, compared to $395.83 million at the end of 2024, reflecting a 12.9% growth[20] - Total assets grew to $891.71 million as of March 31, 2025, up from $707.54 million at the end of 2024, marking a 26% increase[20] - Total liabilities increased to $342.45 million as of March 31, 2025, compared to $230.82 million at the end of 2024, a rise of 48.4%[20] - Cash and cash equivalents rose to $273.74 million as of March 31, 2025, compared to $220.58 million at the end of 2024, an increase of 24%[20] - Total short-term investments decreased to $48.9 million as of March 31, 2025, down from $79.7 million at the end of 2024, primarily due to a reduction in U.S. Treasury bills[72] Revenue Streams - Online revenue reached $576.4 million for the three months ended March 31, 2025, compared to $267.8 million in the prior year, representing a 115.0% growth[51] - The Company’s wholesale revenue for the three months ended March 31, 2025, was $9.6 million, slightly down from $10.4 million in the same period of 2024[51] - Monthly Online Revenue per Average Subscriber rose to $84, a 53% increase from $55 in the prior year[148] - Online Revenue for Q1 2025 reached $576.4 million, a 115% increase from $267.8 million in Q1 2024, driven by new Subscriber growth and GLP-1 offerings generating approximately $230 million[149] Expenses - Operating expenses for Q1 2025 totaled $372.79 million, up from $219.19 million in Q1 2024, reflecting a 69.9% increase[22] - Marketing expenses rose to $231.2 million for the three months ended March 31, 2025, an increase of $100.7 million or 77% from $130.6 million in 2024[184] - Customer acquisition costs increased to $201.6 million in the three months ended March 31, 2025, compared to $113.2 million in 2024, reflecting a rise of $88.4 million[184] - Technology and development expenses rose by $14.6 million or 95% to $29.9 million for the three months ended March 31, 2025, compared to $15.3 million for the same period in 2024[186] Acquisitions and Investments - The Company acquired manufacturing assets from C S Bio Co. for up to approximately $39.1 million, including $32.7 million upfront and a potential earn-out of $32.7 million based on performance conditions[63] - The acquisition of Sigmund NJ, LLC (Trybe Labs) was completed for total cash consideration of $5.1 million, with $5.0 million recorded as goodwill due to the expected future economic benefits[65][66] - The Company acquired MedisourceRx for $31.0 million, with acquisition costs of $1.4 million recorded as general and administrative expenses[67][68] Stock and Shareholder Information - The 2023 Share Repurchase Program authorized the repurchase of up to $50.0 million of Class A common stock, which was fully utilized by December 31, 2024, while the 2024 program allows for an additional $100.0 million in repurchases[100][101] - During the three months ended March 31, 2025, the Company released 1,938,929 gross shares of Class A common stock upon vesting of RSUs, compared to 1,424,493 shares in the same period of 2024[102] - As of March 31, 2025, there were 65,402,137 shares of Class A common stock reserved and 22,510,375 shares available for grant under the 2020 Stock Plan[104] Regulatory and Market Environment - The Company operates in a highly regulated environment, and failure to comply with laws and regulations could lead to substantial penalties and operational restructuring[218] - The company faces competition from large, established healthcare providers and technology companies, which may hinder its competitive effectiveness[217] - The company anticipates that the resolution of the semaglutide shortage may lead to a decrease in Subscriber retention metrics in the near term[157] Future Outlook - The company plans to continue investing in fulfillment, distribution, and operating capabilities, including its recently acquired lab testing and peptide manufacturing facilities[158] - The company expects to expand into new health and wellness specialties, requiring financial investments in marketing and operational capabilities[160] - The company has experienced rapid growth in recent fiscal years and plans to continue investing in growth, although future growth levels may not match past performance[217]