Revenue of $226.7 million, up 57%
year-over-year in Q3 2023
Net loss of $7.6 million; Adjusted EBITDA
profitability of $12.3 million in Q3 2023
Subscribers grew to 1.4 million, up 56%
year-over-year in Q3 2023
Exited Q3 2023 with over 80% of orders
fulfilled via affiliated facilities
Raises full year 2023 revenue guidance to a
range of $868 million to $873 million and Adjusted EBITDA guidance
to a range of $43 million to $46 million
Hims & Hers Health, Inc. (“Hims & Hers” or the
“Company”, NYSE: HIMS), the leading health and wellness platform,
today reported financial results for the third quarter ended
September 30, 2023.
“I am proud of the progress made across several of our key
pillars in the third quarter which meaningfully moved Hims &
Hers one step closer toward our vision of an accessible,
personalized platform,” said Andrew Dudum, co-founder and CEO.
“Personalization continues to gain traction across our platform,
and the anticipated completion of our migration toward affiliated
facilities by year end will further strengthen our ability to
provide customers with a broader set of personalized solutions,
providing us with strong conviction that this will be a
differentiator over both the near and long-term. Additionally,
MedMatch, our AI based service that leverages anonymized data
across Hims & Hers’ expansive data set, has the potential to
aid providers in their ability to efficiently select the right
personalized solutions for each individual consumer. With all of
this great progress, we believe the end result will be more
customers that are happier and healthier on the Hims & Hers
platform.”
“Our continued execution of providing a platform that offers an
increasingly broader set of personalized solutions to consumers,
while also achieving a level of operational efficiency that we
believe few in the market are able to match, uniquely positions us
to offer personalized solutions to consumers at mass-market prices
and drive more value to consumers,” said Yemi Okupe, CFO. “We have
strong conviction that this has and will continue to enable us to
drive greater market share, and also concurrently expand
margins.”
Key Business Metrics
(In Thousands, Except for Monthly Online
Revenue per Average Subscriber and AOV, Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
% Change
2023
2022
% Change
Subscribers (end of period)
1,426
916
56
%
1,426
916
56
%
Monthly Online Revenue per Average
Subscriber
$
54
$
56
(4
)%
$
55
$
52
6
%
Net Orders
2,222
1,675
33
%
6,378
4,267
49
%
AOV
$
99
$
83
19
%
$
95
$
80
19
%
Revenue
(In Thousands, Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
% Change
2023
2022
% Change
Online Revenue
$
219,665
$
139,781
57
%
$
605,018
$
341,345
77
%
Wholesale Revenue
7,034
5,055
39
%
20,363
18,368
11
%
Total revenue
$
226,699
$
144,836
57
%
$
625,381
$
359,713
74
%
Third Quarter 2023 Financial Highlights
- Revenue was $226.7 million for the third quarter of 2023
compared to $144.8 million for the third quarter of 2022, an
increase of 57% year-over-year.
- Gross margin was 83% for the third quarter of 2023
compared to 79% for the third quarter of 2022.
- Net loss was $(7.6) million for the third quarter of
2023 compared to $(18.8) million for the third quarter of
2022.
- Adjusted EBITDA was $12.3 million for the third quarter
of 2023 compared to $(6.1) million for the third quarter of
2022.
A reconciliation of Adjusted EBITDA, a non-GAAP measure, to net
loss, its most comparable financial measure under generally
accepted accounting principles in the United States (“U.S. GAAP”),
has been provided in this press release in the accompanying tables.
Additional information about Adjusted EBITDA is also included below
under the heading “Non-GAAP Financial Measures”.
Financial Outlook
Hims & Hers is providing the following guidance:
For the fourth quarter 2023, we expect:
- Revenue of $243 million to $248 million.
- Adjusted EBITDA of $14 million to $17 million, reflecting an
Adjusted EBITDA margin of 6% to 7%.
For the full year 2023, we expect:
- Revenue of $868 million to $873 million.
- Adjusted EBITDA of $43 million to $46 million, reflecting an
Adjusted EBITDA margin of approximately 5%.
The guidance provided above constitutes forward-looking
statements and actual results may differ materially. Refer to the
“Cautionary Note Regarding Forward-Looking Statements” safe harbor
section below for information on the factors that could cause our
actual results to differ materially from these forward-looking
statements.
We have relied upon the exception in Item 10(e)(1)(i)(B) of
Regulation S-K and have not reconciled forward-looking Adjusted
EBITDA to its most directly comparable U.S. GAAP measure, net loss,
because we cannot predict with reasonable certainty the ultimate
outcome of certain components of such reconciliations, including
market-related assumptions that are not within our control, or
others that may arise, without unreasonable effort. For these
reasons, we are unable to assess the probable significance of the
unavailable information, which could materially impact the amount
of future net loss. See “Non-GAAP Financial Measures” for
additional important information regarding Adjusted EBITDA.
Conference Call
Hims & Hers will host a conference call to review the third
quarter 2023 results on November 6, 2023, at 5:00 p.m. ET. The
conference call can be accessed by dialing +1 (888) 510-2630 for
U.S. participants and +1 (646) 960-0137 for international
participants, and referencing conference ID #1704296. A live audio
webcast will be available online at https://investors.hims.com/. A
replay of the call will be available via webcast for on-demand
listening shortly after the completion of the call at the same
link.
About Hims & Hers Health, Inc.
Hims & Hers is the leading health and wellness platform on a
mission to help the world feel great through the power of better
health.
We believe how you feel in your body and mind transforms how you
show up in life. That’s why we’re building a future where nothing
stands in the way of harnessing this power. Hims & Hers
normalizes health & wellness challenges—and innovates on their
solutions—to make feeling happy and healthy easy to achieve. No two
people are the same, so the Company provides access to personalized
care designed for results.
For more information, please visit
https://investors.hims.com/.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements can be identified by the
use of forward-looking terminology, including the words “believe,”
“estimate,” “anticipate,” “expect,” “assume,” “imply,” “intend,”
“plan,” “may,” “will,” “potential,” “project,” “predict,”
“continue,” “could,” or “should,” or, in each case, their plural,
their negative or other variations or comparable terminology. There
can be no assurance that actual results will not materially differ
from expectations. Such statements include, but are not limited to,
any statements relating to our financial outlook and guidance,
including our mission to drive top-line growth and profitability
and our ability to attain our long-term financial targets; our
expected future financial and business performance, including with
respect to the Hims & Hers platform, our marketing campaigns,
investments in innovation, and our infrastructure, and the
underlying assumptions with respect to the foregoing; statements
relating to events and trends relevant to us, including with
respect to our financial condition, results of operations, short-
and long-term business operations, objectives, and financial needs;
expectations regarding our mobile applications, market acceptance,
user experience, customer retention, brand development, our ability
to invest and generate a return on any such investment, customer
acquisition costs, operating efficiencies and leverage (including
our fulfillment capabilities), the effect of any pricing decisions,
changes in our product or offering mix, the timing and market
acceptance of any new products or offerings, the success of our
business model, our market opportunity, our ability to scale our
business, the growth of certain of our categories, our ability to
innovate on and expand the scope of our offerings and experiences,
our ability to reinvest into the customer experience, and our
ability to comply with the extensive, complex and evolving
regulatory requirements applicable to our business, including
without limitation state and federal healthcare, privacy and
consumer protection laws and regulations. These statements are
based on management’s current expectations, but actual results may
differ materially due to various factors.
The forward-looking statements contained in this press release
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. Future developments
affecting us may not be those that we have anticipated. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond our control) and other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements. These risks and uncertainties include, but are not
limited to, those factors described in the “Risk Factors” section
of each of our most recently filed Quarterly Report on Form 10-Q,
our most recently filed Annual Report on Form 10-K, and any of our
subsequent filings with the Securities and Exchange Commission (the
“Commission”).
Should one or more of these risks or uncertainties materialize,
or should any of our assumptions prove incorrect, actual results
may vary in material respects from those projected in these
forward-looking statements. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future
performance and that our actual results of operations, financial
condition and liquidity, and developments in the industry in which
we operate may differ materially from those made in or suggested by
the forward-looking statements contained in reports we have filed
or will file with the Commission, including our most recently filed
Annual Report on Form 10-K, our most recently filed Quarterly
Report on Form 10-Q, and any of our subsequent filings with the
Commission. In addition, even if our results of operations,
financial condition and liquidity, and developments in the industry
in which we operate are consistent with the forward-looking
statements contained in such reports, those results or developments
may not be indicative of results or developments in subsequent
periods.
Key Business Metrics
“Online Revenue” represents the sales of products and services
on our platform, net of refunds, credits, and chargebacks, and
includes revenue recognition adjustments recorded pursuant to U.S.
GAAP, primarily relating to deferred revenue and returns reserve.
Online Revenue is generated by selling directly to consumers
through our websites and mobile applications. Our Online Revenue
consists of products and services purchased by customers directly
through our online platform. The majority of our Online Revenue is
subscription-based, where customers agree to be billed on a
recurring basis to have products and services automatically
delivered to them.
“Wholesale Revenue” represents non-prescription product sales to
retailers through wholesale purchasing agreements. We sell only
non-prescription products to wholesale partners. In addition to
being revenue generative and profitable, wholesale partnerships
have the added benefit of generating brand awareness with new
customers in physical environments.
“Subscribers” are customers who have one or more
“Subscriptions”, which are agreements pursuant to which they have
agreed to be automatically billed on a recurring basis at a defined
cadence. The Subscription billing cadence is typically defined as a
number of months (for example, billed every month or every three
months), which are excluded from our reporting when payment has not
occurred at the contracted billing cadence. Subscribers can cancel
Subscriptions in between billing periods to stop receiving
additional products and services and can reactivate Subscriptions
to continue receiving additional products and services.
“Monthly Online Revenue per Average Subscriber” is defined as
Online Revenue divided by “Average Subscribers”, which amount is
then further divided by the number of months in a period. “Average
Subscribers” are calculated as the sum of the Subscribers at the
beginning and end of a given period divided by 2.
“Net Orders” are defined as the number of online customer orders
minus transactions related to refunds, credits, chargebacks, and
other negative adjustments. Net Orders represent transactions made
on our platform during a defined period of time and exclude revenue
recognition adjustments recorded pursuant to U.S. GAAP.
Average Order Value (“AOV”) is defined as Online Revenue divided
by Net Orders.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands, Except Share and
Per Share Data, Unaudited)
September 30, 2023
December 31, 2022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
57,996
$
46,772
Short-term investments
154,501
132,853
Inventory
21,992
21,562
Prepaid expenses and other current
assets
15,730
15,408
Total current assets
250,219
216,595
Restricted cash
856
856
Goodwill
110,881
110,881
Property, equipment, and software, net
28,238
11,199
Intangibles, net
19,297
21,841
Operating lease right-of-use assets
4,302
4,936
Other long-term assets
72
33
Total assets
$
413,865
$
366,341
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
42,001
$
32,363
Accrued liabilities
27,360
12,448
Deferred revenue
4,392
1,472
Earn-out liabilities
6,862
—
Operating lease liabilities
1,930
1,658
Total current liabilities
82,545
47,941
Operating lease liabilities
2,753
3,649
Earn-out liabilities
—
2,975
Other long-term liabilities
5
35
Total liabilities
85,303
54,600
Commitments and contingencies
Stockholders' equity:
Common stock – Class A shares, par value
$0.0001, 2,750,000,000 shares authorized and 203,578,394 and
200,051,689 shares issued and outstanding as of September 30, 2023
and December 31, 2022, respectively; Class V shares, par value
$0.0001, 10,000,000 shares authorized and 8,377,623 shares issued
and outstanding as of September 30, 2023 and December 31, 2022
21
21
Additional paid-in capital
698,094
656,626
Accumulated other comprehensive loss
(133
)
(277
)
Accumulated deficit
(369,420
)
(344,629
)
Total stockholders' equity
328,562
311,741
Total liabilities and stockholders'
equity
$
413,865
$
366,341
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In Thousands, Except Share and
Per Share Data, Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenue
$
226,699
$
144,836
$
625,381
$
359,713
Cost of revenue
39,391
30,383
114,490
83,328
Gross profit
187,308
114,453
510,891
276,385
Gross margin %
83
%
79
%
82
%
77
%
Operating expenses:(1)
Marketing
116,076
78,462
320,540
187,045
Operations and support
31,609
21,751
87,018
54,882
Technology and development
12,270
7,977
34,822
20,926
General and administrative
35,907
26,246
97,564
70,624
Total operating expenses
195,862
134,436
539,944
333,477
Loss from operations
(8,554
)
(19,983
)
(29,053
)
(57,092
)
Other income:
Change in fair value of liabilities
(588
)
450
(1,056
)
1,012
Other income, net
2,226
677
6,342
1,399
Total other income, net
1,638
1,127
5,286
2,411
Loss before income taxes
(6,916
)
(18,856
)
(23,767
)
(54,681
)
(Provision) benefit for income taxes
(651
)
16
(1,024
)
(90
)
Net loss
(7,567
)
(18,840
)
(24,791
)
(54,771
)
Other comprehensive income (loss)
125
6
144
(325
)
Total comprehensive loss
$
(7,442
)
$
(18,834
)
$
(24,647
)
$
(55,096
)
Net loss per share attributable to common
stockholders:
Basic and diluted
$
(0.04
)
$
(0.09
)
$
(0.12
)
$
(0.27
)
Weighted average shares outstanding:
Basic and diluted
210,134,681
205,232,967
208,576,903
203,968,783
______________
(1)
Includes stock-based compensation expense
as follows (in thousands):
Three Months Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Marketing
$
1,435
$
1,241
$
3,918
$
3,136
Operations and support
1,887
695
4,895
1,848
Technology and development
1,652
1,003
5,205
2,999
General and administrative
12,303
8,040
34,271
22,484
Total stock-based compensation expense
$
17,277
$
10,979
$
48,289
$
30,467
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In Thousands, Unaudited)
Nine Months Ended September
30,
2023
2022
Operating activities
Net loss
$
(24,791
)
$
(54,771
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
6,857
5,464
Stock-based compensation
48,289
30,467
Change in fair value of liabilities
1,056
(1,012
)
Net (accretion) amortization on
securities
(4,034
)
986
Benefit for deferred taxes
(30
)
(380
)
Impairment of long-lived assets
429
1,127
Non-cash operating lease cost
1,412
1,156
Non-cash acquisition-related costs
2,264
(198
)
Non-cash other
87
—
Changes in operating assets and
liabilities:
Inventory
(430
)
(8,789
)
Prepaid expenses and other current
assets
(401
)
(3,644
)
Other long-term assets
(39
)
7
Accounts payable
4,401
13,332
Accrued liabilities
14,912
5,520
Deferred revenue
2,920
(1,064
)
Operating lease liabilities
(1,402
)
(1,165
)
Earn-out payable
—
(6,848
)
Net cash provided by (used in) operating
activities
51,500
(19,812
)
Investing activities
Purchases of investments
(136,415
)
(136,816
)
Maturities of investments
117,334
134,759
Proceeds from sales of investments
1,574
35,846
Investment in website and mobile
application development and internal-use software
(6,705
)
(3,320
)
Purchases of property, equipment, and
intangible assets
(8,589
)
(1,314
)
Deferred consideration paid for
acquisitions
—
(459
)
Net cash (used in) provided by investing
activities
(32,801
)
28,696
Financing activities
Proceeds from exercise of vested stock
options
1,691
2,157
Payments for taxes related to net share
settlement of equity awards
(10,101
)
(2,364
)
Proceeds from employee stock purchase
plan
898
553
Payments for earn-out consideration for
acquisitions
—
(23,014
)
Net cash used in financing activities
(7,512
)
(22,668
)
Foreign currency effect on cash and cash
equivalents
37
(36
)
Increase (decrease) in cash, cash
equivalents, and restricted cash
11,224
(13,820
)
Cash, cash equivalents, and restricted
cash at beginning of period
47,628
72,640
Cash, cash equivalents, and restricted
cash at end of period
$
58,852
$
58,820
Reconciliation of cash, cash
equivalents, and restricted cash
Cash and cash equivalents
$
57,996
$
57,964
Restricted cash
856
856
Total cash, cash equivalents, and
restricted cash
$
58,852
$
58,820
Supplemental disclosures of cash flow
information
Cash paid for taxes
$
645
$
588
Non-cash investing and financing
activities
Purchase of property and equipment
included in accounts payable
$
5,237
$
—
Right-of-use asset obtained in exchange
for lease liability
591
1,206
Vesting of early exercised stock
options
—
113
Non-GAAP Financial Measures
In addition to our financial results determined in accordance
with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP
financial measure), and Adjusted EBITDA margin (which is a non-GAAP
ratio), each as defined below. We use Adjusted EBITDA and Adjusted
EBITDA margin to evaluate our ongoing operations and for internal
planning and forecasting purposes. We believe that Adjusted EBITDA
and Adjusted EBITDA margin, when taken together with the
corresponding U.S. GAAP financial measures, provide meaningful
supplemental information regarding our performance by excluding
certain items that may not be indicative of our business, results
of operations, or outlook. We consider Adjusted EBITDA and Adjusted
EBITDA margin to be important measures because they help illustrate
underlying trends in our business and our historical operating
performance on a more consistent basis. We believe that the use of
Adjusted EBITDA and Adjusted EBITDA margin is helpful to our
investors as they are used by management in assessing the health of
our business and our operating performance.
However, non-GAAP financial information is presented for
supplemental informational purposes only, has limitations as an
analytical tool, and should not be considered in isolation or as a
substitute for financial information presented in accordance with
U.S. GAAP. In addition, other companies, including companies in our
industry, may calculate similarly-titled non-GAAP financial
measures or ratios differently or may use other financial measures
or ratios to evaluate their performance, all of which could reduce
the usefulness of Adjusted EBITDA or Adjusted EBITDA margin as
tools for comparison. Reconciliations are provided below to the
most directly comparable financial measures stated in accordance
with U.S. GAAP. Investors are encouraged to review our U.S. GAAP
financial measures and not to rely on any single financial measure
to evaluate our business.
Adjusted EBITDA is a key performance measure that our management
uses to assess our operating performance. Because Adjusted EBITDA
facilitates internal comparisons of our historical operating
performance on a more consistent basis, we use this measure for
business planning purposes. “Adjusted EBITDA” is defined as net
loss before stock-based compensation, depreciation and
amortization, acquisition-related costs (which includes
consideration paid for employee compensation with vesting
requirements incurred directly as a result of acquisitions,
inclusive of revaluation of earn-out consideration recorded in
general and administrative expenses), income taxes, change in fair
value of liabilities, impairment of long-lived assets, and interest
income. “Adjusted EBITDA margin” is defined as Adjusted EBITDA
divided by revenue.
Some of the limitations of Adjusted EBITDA include (i) Adjusted
EBITDA does not properly reflect capital commitments to be paid in
the future, and (ii) although depreciation and amortization are
non-cash charges, the underlying assets may need to be replaced and
Adjusted EBITDA does not reflect these capital expenditures. In
evaluating Adjusted EBITDA, you should be aware that in the future
we will incur expenses similar to the adjustments in this
presentation. Our presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by these expenses or any unusual or non-recurring items.
We compensate for these limitations by providing specific
information regarding the U.S. GAAP items excluded from Adjusted
EBITDA. When evaluating our performance, you should consider
Adjusted EBITDA in addition to, and not as a substitute for, other
financial performance measures, including our net loss and other
U.S. GAAP results.
Net Loss to Adjusted EBITDA
Reconciliation
(In Thousands, Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenue
$
226,699
$
144,836
$
625,381
$
359,713
Net loss
(7,567
)
(18,840
)
(24,791
)
(54,771
)
Stock-based compensation
17,277
10,979
48,289
30,467
Depreciation and amortization
2,363
1,902
6,857
5,464
Acquisition-related costs
1,280
(191
)
2,509
75
Provision (benefit) for income taxes
651
(16
)
1,024
90
Change in fair value of liabilities
588
(450
)
1,056
(1,012
)
Impairment of long-lived assets
—
1,127
429
1,127
Interest income
(2,342
)
(607
)
(6,428
)
(1,138
)
Adjusted EBITDA
$
12,250
$
(6,096
)
$
28,945
$
(19,698
)
Net loss as a % of revenue
(3
)%
(13
)%
(4
)%
(15
)%
Adjusted EBITDA margin
5
%
(4
)%
5
%
(5
)%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231106501282/en/
Investor Relations Alice Lopatto
Investors@forhims.com
Media Relations Press@forhims.com
Hims and Hers Health (NYSE:HIMS)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Hims and Hers Health (NYSE:HIMS)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024