Q4 2023 Earnings Summary
Reported on Feb 26, 2024 (After Market Close)
Pre-Earnings Price$10.25Last close (Feb 26, 2024)
Post-Earnings Price$12.33Open (Feb 27, 2024)
Price Change
$2.08(+20.29%)
- Hims & Hers anticipates that its newer specialties, such as Hers dermatology, mental health, and weight loss, will each generate over $100 million in revenue by 2025, driven by rapid adoption of personalized treatments and the large market potential.
- The company is maintaining strong marketing efficiency, unlike some competitors facing declines, due to diversified channels and resonant offerings. This is expected to result in marketing leverage starting as early as 2024, improving profitability and adjusted EBITDA margins over time.
- Hims & Hers achieved its first quarter of positive net income in Q4 2023 and expects 2024 to be its first full year of positive net income. They are on track to achieve their 2025 revenue and adjusted EBITDA goals one year early, with adjusted EBITDA margins expected to reach low to mid-teens by 2027 and 20%-30% by 2030, indicating a clear path to sustained profitability.
- Gross margins are expected to decline over time from current levels of around 83% to the mid- to high-70% range as the company targets mass-market offerings with lower price points, which could impact profitability.
- New product categories, such as weight management, take 12 to 18 months to contribute meaningfully to revenue; if adoption is slower than expected, it could affect the company's growth projections.
- Revenue per subscriber may decline due to longer-duration subscriptions at lower monthly rates, potentially limiting revenue growth despite subscriber growth.
Research analysts covering Hims & Hers Health.