Hims & Hers saw its top line jump 83% in the second quarter, driven by strong growth of its online health and wellness business.
The company, which went public two years ago and sells hair loss and sexual health products, boosted the lower end of its revenue guidance by $20 million to between $830 million and $850 million for the year and also announced it was jumping into the booming weight loss market.
The company had been slower to enter the weight management space compared to its peers. The offering has been in research and development for over a year, Andrew Dudum, CEO and co-founder of Hims & Hers, said during the company's second-quarter earnings call Monday.
"Our weight management category will leverage all of the strengths of our platform. This means access to personalized treatments customized for customers' clinical needs, powered by our enhanced pharmacy capabilities," he told investors during the call.
The weight management offering will include access to treatment formulations that are affordable, he noted, and that can combine and leverage the active ingredients in proven prescription medications and supplements as well as behavioral and nutritional-focused plans.
While the business is being built to support both existing GLP-1s and future medications, these products likely will not be available at launch given the instability of the current supply chain, Dudum said.
"I think what we're going to start with is a wide range of likely generic options and personalized treatments that are going after some of the underlying factors of weight gain. So this could be metabolic resistance, hormonal issues, could be underlying mental health concerns such as depression or unhealthy eating habits," he told investors during a Q&A after his prepared remarks.
The multispecialty telehealth platform connects consumers to medical care for numerous conditions related to mental health, sexual health, dermatology and primary care and brought in revenue of $208 million in the second quarter of 2023, up from $113 million a year ago, according to its second-quarter financial results.
Online revenue increased 87% year over year to $201 million in the second quarter, driven by strong subscriber growth. The number of subscribers on the platform increased 74% year over year to 1.3 million subscribers,
Hims & Hers also narrowed its losses in the second quarter to a loss of $7.2 million, or a loss of 3 cents a share, compared with a loss of $19.7 million, or 10 cents a share, in the same period a year ago.
Hims & Hers' top and bottom lines beat Wall Street analysts' estimates for the quarter.
The company's shares rallied nearly 13% in the aftermarket Monday, according to MarketWatch.
The company posted another EBITDA-adjusted profitable quarter, bringing in $10.6 million compared to a loss of $7.5 million a year ago.
Hims & Hers sells prescription and over-the-counter drugs online as well as personal care products. Its core products include solutions for men for dermatology issues, hair loss and sexual health. The company's women’s health business, called Hers, focuses on birth control, sexual health and skin and hair care products.
The second quarter marked a significant turning point for Hims & Hers, Dudum said, as the company evolves from being an access-oriented company toward offering personalized treatments for consumers.
"From the earliest years, Hims & Hers delivered on in its simplest form access. Access to a provider, access to clinically appropriate generic treatment and access to solutions for singular issue that patients were challenged with," Dudum told investors. "Today, that story has become wildly more exciting as initiatives have been in development for years are beginning to come to the market. Our story is no longer one of simple access, but a story of bolstered capabilities in diagnostics, treatment and care that we believe can deliver truly better outcomes."
The company also is focused on developing what Dudum referred to as "multi-action capabilities" to enable providers to customize single-pill treatments for multicategory conditions.
To this end, last week, Hims & Hers took its first step into cardiovascular health with the launch of Heart Health by Hims. The offering enables providers to personalize a treatment that combines ingredients found in clinically proven ED medications and statins, according to the company.
The company is partnering with Labcorp to offer lab-based heart health testing. Lab results will then be integrated directly into the Hims & Hers proprietary electronic medical record, enabling providers to further personalize care, executives said.
Hims & Hers also is building its analytics and artificial intelligence capabilities to leverage data to support precision treatments and plans to trademark an AI tool called MedMatch, Dudum told investors. That technology helps predict diagnoses and appropriate treatment to help providers make more informed and clinically appropriate decisions, he noted.
The company's growth has helped it reduce prices for some products and services, Dudum said. This pricing rollout will make personalized subscriptions even more mass-market accessible, he said.
At the end of the second quarter, over 20% of total subscribers were on a personalized solution, Yemi Okupe, chief financial officer, said during the second-quarter earnings call.
"This is a clear signal that consumers are drawn to and appreciate personalized solutions that our providers can prescribe. We believe offering unique solutions at attractive price points is a powerful combination that positions us for significant market share gains," he said.
Hims & Hers raised its full-year 2023 revenue guidance to a range of between $830 million and $850 million and adjusted EBITDA guidance to a range of $35 million to $40 million.
For the third quarter, the company projects revenue between $217 million and $222 million and adjusted EBITDA of $10 million to $13 million.