Hims(US:HIMS)2024-05-06 20:17Financial Performance - Revenue for Q1 2024 was $278,171,000, a 46% increase from $190,770,000 in Q1 2023[20] - Gross profit for Q1 2024 was $229,095,000, compared to $153,425,000 in Q1 2023, reflecting a 49% increase[20] - Net income for Q1 2024 was $11,128,000, a significant improvement from a net loss of $10,067,000 in Q1 2023[20] - Adjusted EBITDA for the three months ended March 31, 2024, was $32,347,000, compared to $6,060,000 in the same period of 2023, indicating a significant improvement in operational performance[136] - Free Cash Flow for the three months ended March 31, 2024, was $11,880,000, up from $6,973,000 in the same period of 2023, reflecting enhanced liquidity[138] - Adjusted EBITDA margin for the three months ended March 31, 2024, was 12%, compared to 3% in the same period of 2023, indicating improved profitability[136] - Net income for the three months ended March 31, 2024, was $11.1 million, compared to a net loss of $10.1 million in the same period of 2023[153] Revenue Breakdown - Online revenue reached $267.761 million, up 45% from $184.175 million year-over-year[42] - Wholesale revenue increased to $10.410 million, a 58% rise compared to $6.595 million in the prior year[42] - Total revenue for the three months ended March 31, 2024, was $278.2 million, reflecting an increase of $87.4 million, or 46%, from $190.8 million in 2023[121] - For the three months ended March 31, 2024, the Company generated $267.8 million in Online Revenue, an increase of $83.6 million, or 45%, compared to $184.2 million for the same period in 2023[121] - Wholesale Revenue for the same period was $10.4 million, up $3.8 million, or 58%, from $6.6 million in the prior year[122] Assets and Liabilities - Total current assets decreased slightly to $261,734,000 as of March 31, 2024, from $265,053,000 at the end of 2023[18] - Total assets increased to $448,106,000 as of March 31, 2024, up from $441,186,000 at the end of 2023[18] - Total liabilities rose to $103,624,000 as of March 31, 2024, compared to $97,157,000 at the end of 2023[18] - Cash and cash equivalents increased to $105,237,000 as of March 31, 2024, from $96,663,000 at the end of 2023[18] - Short-term investments as of March 31, 2024, totaled $98.355 million, a decrease from $124.318 million at the end of 2023[53] Operating Expenses - Operating expenses for Q1 2024 totaled $219,192,000, up from $164,688,000 in Q1 2023, representing a 33% increase[20] - Marketing expenses rose to $130.6 million, a 34% increase from $97.2 million in the same period last year, driven by higher customer acquisition costs of $113.2 million[157] - Operations and support expenses increased by 48% to $38.7 million, primarily due to higher employee compensation and order fulfillment costs[158] - Technology and development expenses were $15.3 million, up 43% from $10.7 million, mainly due to increased employee compensation and technology costs[159] - General and administrative expenses increased to $34.6 million, a 13% rise from $30.5 million, largely due to higher stock-based compensation and professional services[160] Cash Flow - Cash provided by operating activities for Q1 2024 was $25,838,000, compared to $9,483,000 in Q1 2023[26] - Net cash provided by operating activities was $25.8 million for the three months ended March 31, 2024, compared to $9.5 million in the same period of 2023[166] - Net cash used in investing activities for Q1 2023 was $4.1 million, primarily due to $1.9 million in website development and internal-use software[172] - Net cash used in financing activities for Q1 2024 was $30.3 million, mainly from Class A common stock repurchases of $28.1 million and tax payments of $7.3 million[173] Stock and Compensation - The company repurchased 2,023,080 shares of Class A common stock for $28.1 million during the three months ended March 31, 2024, leaving $19.9 million available under the share repurchase program[75] - The total stock-based compensation expense for the three months ended March 31, 2024, was $19.0 million, an increase from $14.2 million in the same period of 2023, reflecting a 34% year-over-year growth[101] - As of March 31, 2024, there was $194.7 million of unrecognized stock-based compensation expense related to unvested RSUs, expected to be recognized over a weighted average period of 3.36 years[92] - The intrinsic value of vested options exercised as of March 31, 2024, was $7.4 million, with 1,531,019 stock options exercised at a weighted average exercise price of $2.43[85] Subscriber Growth and Metrics - Subscribers grew by 41% to approximately 1.7 million as of March 31, 2024, compared to approximately 1.2 million a year earlier[123] - Monthly Online Revenue per Average Subscriber remained stable at $55 for both the three months ended March 31, 2024, and 2023[123] - Net Orders increased by 20% to approximately 2.5 million for the three months ended March 31, 2024, compared to approximately 2.0 million in the same period of 2023[124] - Average Order Value (AOV) rose by 21% to $109 for the three months ended March 31, 2024, up from $90 in the prior year[124] Market and Operational Challenges - The company has faced risks related to its limited operating history and evolving business model, which complicates future growth evaluations[194] - The company must expand its offerings, including products and services, to maintain financial health and operational success[195] - The company relies on attracting and retaining customers for revenue generation, which is critical for its financial condition[197] - The healthcare industry is undergoing significant structural changes, impacting demand for the company's technology-driven services and subscription business model[215] - The effectiveness of the company's digital marketing is at risk due to potential changes in regulations and third-party practices that limit data collection and targeted advertising[199] Future Outlook - The company expects to continue investing in fulfillment and operating capabilities, including expansion of facilities over the next 12 months[130] - Marketing expenses are anticipated to increase as the company continues to invest in customer acquisition, with a historical trend of quarter-over-quarter growth[147] - The company aims to expand into new health and wellness specialties, which will require financial investments in headcount and marketing[131] - The company plans to continue investing in marketing and may repurchase up to $19.9 million of its Class A common stock through the fourth quarter of 2025[165]