Table of Contents

• a. Introduction & Key Points

• b. Demand

• c. Profits & Margins

• d. Balance Sheet

• e. Guidance & Valuation

• f. Call & Release

• g. Take

a. Introduction & Key Points

Hims sells personalized men’s and women’s health products with a direct-to-consumer (DTC) business model. It aims to allow users to more comfortably access sensitive prescriptions within areas like erectile dysfunction or hair loss, without going to an office or a pharmacy. Products are mailed right to a consumer’s door. It offers standard and personalized medicine, as well as subscriptions for customer savings & Hims retention boosts.

Despite being founded just 8 years ago, Hims is already nearing a $500 million quarterly revenue run rate, with great margins. It’s founder-led and competes with smaller vendors like Roman while increasingly competing with Amazon.

b. Demand

• Beat revenue estimates by 2.3% & beat guidance by 2.9%.

  • Growth in 2024 excluding GLP1 (weight loss drugs) was still a lofty 43% Y/Y vs. 69% Y/Y for the whole company.

  • GLP1 drugs now represent about 15% of revenue.

  • Ex-GLP1, sequential growth for core segments has been roughly flat for the last two quarters. Dermatology has been a standout with great subscriber growth.

• Beat subscriber estimates by 0.4%.

• Beat average order value (AOV) estimates by 6%.

• Average revenue per user (ARPU) was $73 vs. $64 Y/Y.

c. Profits & Margins

• Slightly beat EBITDA estimates & beat EBITDA guidance by 3%. EBITDA rose by 160% Y/Y.

  • Strong leverage was enjoyed across all cost buckets besides technology & development.

• Missed 78.3% GAAP GPM estimates by 150 basis points (bps; 1 basis point = 0.01%). GPM contraction is due to investments in the weight loss platform and was as expected internally.

• Met $0.11 GAAP EPS estimate. EPS rose from $0.01 to $0.11 Y/Y (without any large tax benefits).

d. Balance Sheet

• $300M in cash & equivalents.

• $64M in inventory vs. $49M Q/Q.

• Diluted share count rose by 8.5% Y/Y.

• Basic share count rose by 3.5% Y/Y.

• No debt.

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