HIMS Stock Gains Following In Line Q3 Earnings, Gross Margin Contracts

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].