Hims(US:HIMS)2025-08-04 22:02Financial Data and Key Metrics Changes - Revenue grew 73% year over year to $545 million, with an adjusted EBITDA margin above 15% [28][39] - Subscribers increased by 73,000 quarter over quarter to over 2.4 million, reflecting a year-over-year growth rate of 31% [28] - Monthly average revenue per subscriber declined quarter over quarter to $74 from $84, primarily due to offboarding GLP-1 subscribers [30][39] Business Line Data and Key Metrics Changes - Strong performance in dermatology, oral weight loss, and daily sexual health offerings, all sustaining year-over-year subscriber growth rates above 55% [28][29] - Continued success in the weight loss specialty, despite headwinds from offboarding GLP-1 subscribers [29][60] - Daily sexual health offerings are expected to improve retention and customer lifetime value [29] Market Data and Key Metrics Changes - The company is expanding its presence in the UK through the acquisition of Zava, with plans to enter Canada in 2026 focusing on holistic weight loss programs [24][25] - Anticipated launch of generic semaglutide in Canada, expected to significantly reduce consumer price points and improve access [80] Company Strategy and Development Direction - The company aims to democratize access to precision medicine and expand into new specialties, including hormonal health [13][14] - Plans to integrate lab testing capabilities to enhance service offerings and support the hormonal health launch [16][17] - Focus on building a technology-first healthcare platform, leveraging AI for personalized care and operational efficiency [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of the business and the demand for personalized healthcare solutions [5][26] - The company anticipates continued growth in subscriber retention and engagement through personalized treatment plans [30][43] - Management acknowledged potential headwinds from the transition of the sexual health specialty but expects long-term benefits from daily offerings [29][60] Other Important Information - The company completed a convertible debt offering, strengthening its balance sheet with over $1.1 billion in cash and short-term investments [34] - Free cash flow for the second quarter was negative $69 million, but positive cash flow generation is expected in the second half of the year [35] Q&A Session Summary Question: Why was now the right time to expand internationally and what made Zava the right company to acquire? - Management believes it is a powerful opportunity to lead in personalized, high-touch, affordable precision medicine globally, with Zava's scalable platform being a key asset [45][47] Question: How does the launch of at-home lab testing improve the business? - Lab testing is seen as foundational for all categories, enabling a transition to preventative health and potentially leading to a membership model similar to Amazon or Costco [50][51] Question: Update on the HERS business performance and growth drivers? - The HERS business continues to grow robustly, driven by dermatology, weight loss, and upcoming hormonal support offerings [66] Question: How is the company approaching AI investments and expected returns? - The company aims for quick, tangible improvements through AI, enhancing efficiency and engagement across the platform [68] Question: Expectations for GLP-1 revenue and future growth? - Management expects continued growth in the weight loss specialty despite recent declines, with a focus on personalized offerings [72][73]