- Hims & Hers Health (HIMS) stock fell nearly 5% to $39.88 in after-hours trading despite Q1 earnings of $0.20 per share, beating the $0.12 consensus, and revenues of $586.01 million, up 110.7% year-over-year, surpassing the $538.6 million estimate.
- Subscriber growth reached 2.4 million, up 38%, but Q2 revenue guidance of $530 – $550 million missed the $564.60 million consensus, while FY25 revenue guidance of $2.3 – $2.4 billion and adjusted EBITDA of $295 – $335 million were reaffirmed.
- CFO Yemi Okupe emphasized long-term growth through personalization and new specialties, setting 2030 targets of at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA, supported by Q1 adjusted EBITDA of $65 – $75 million.
Hims & Hers Health (HIMS) stock declined nearly 5% to $39.88 in after-hours trading on Monday, despite a strong Q1 performance that showcased significant growth in its telehealth platform, tempered by cautious Q2 revenue guidance. The company reported Q1 earnings of $0.20 per share, surpassing the consensus of $0.12 by $0.08, with revenues soaring 110.7% year-over-year to $586.01 million, well above the $538.6 million expected. Subscriber growth was robust, reaching 2.4 million, a 38% year-over-year increase, with over 1.4 million users engaging with personalized solutions, underscoring the company’s success in scaling its direct-to-consumer healthcare model.
While Hims & Hers reaffirmed its FY25 revenue guidance of $2.3 – $2.4 billion, aligning with the $2.33 billion consensus, and projected adjusted EBITDA of $295 million to $335 million with a 13% to 14% margin, its Q2 revenue outlook of $530 – $550 million fell short of the $564.60 million consensus. The company also reported Q1 adjusted EBITDA of $65 million to $75 million, reflecting a 12% to 14% margin, and raised its FY25 adjusted EBITDA guidance from the prior $270 million to $320 million range. Looking further ahead, Hims & Hers set ambitious 2030 financial targets, aiming for at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA, signaling confidence in its long-term growth trajectory.
CFO Yemi Okupe highlighted the company’s momentum, driven by a 111% revenue increase and a focus on five strategic levers: deepening personalization, expanding into new specialties, enhancing subscriber experiences, forging partnerships, and entering new geographies. These priorities, supported by investments in technology and care delivery, underpin the company’s outlook for sustained growth. However, the after-hours stock drop suggests investor disappointment with the conservative Q2 guidance, possibly reflecting concerns about near-term growth challenges or market expectations for even stronger performance given the stock’s recent gains. Hims & Hers’ ability to capitalize on its large market opportunity, particularly in personalized healthcare, positions it well for long-term success, but navigating short-term investor sentiment and competitive pressures in the telehealth sector will be critical to maintaining its upward trajectory.
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