Q1 2024 Earnings Summary
Reported on May 6, 2024 (After Market Close)
Pre-Earnings Price$11.65Last close (May 6, 2024)
Post-Earnings Price$13.64Open (May 7, 2024)
Price Change
$1.99(+17.08%)
- Hims & Hers is experiencing exceptional growth momentum, achieving record subscriber additions of 172,000 net new subscribers in Q1 2024, bringing the total to over 1.7 million subscribers, a 41% year-over-year increase. This growth is driven by robust demand across all core specialties and high adoption of personalized products. ,
- The company is planning to launch GLP-1 treatments for weight loss soon in 2024, which is expected to significantly contribute to revenue growth, with the weight loss category targeted to reach $100 million in 2025. ,
- There is a rapidly increasing adoption of personalized solutions, now at over 35% of subscribers, leading to higher retention rates and enhanced customer satisfaction. The company expects that in the coming years, the vast majority of subscribers will use personalized offerings, driving further growth and profitability.
- Margins are expected to decrease in the second half of the year due to increased investments and marketing spend. Despite a strong adjusted EBITDA margin of close to 12% in the first quarter, the company indicated that margins may decline as they plan to "opportunistically have the flexibility to invest" in marketing for new products coming online and to "pass value back to consumers," which may lead to margin compression.
- Uncertainty around the launch of GLP-1 offerings, which are significant in the weight loss market. Analysts expressed concerns about the company's position in the GLP-1 space due to "pretty significant price competition" and discounting. The CEO acknowledged they don't have much to share yet but expect to "launch GLP-1 soon," indicating potential delays compared to competitors.
- Potential concerns about customer churn and lack of transparency on churn metrics. While subscriber growth is strong, analysts are "trying to make sure" they understand churn, as they "get the churn question a lot." The company focused on subscriber additions and did not provide specific churn data, which could suggest underlying retention challenges.
Research analysts covering Hims & Hers Health.