Hims & Hers Health, Inc. (HIMS) Bundle
A Brief History of Hims & Hers Health, Inc.
Company Overview
Hims & Hers Health, Inc. is a telehealth and wellness company that specializes in providing personalized health solutions through its online platform. The company focuses on various health conditions and offers products ranging from hair loss treatments to sexual health and skincare.
Recent Financial Performance
As of September 30, 2024, Hims & Hers reported total revenue of $401.6 million for the three months ended September 30, 2024, representing a 77% increase compared to $226.7 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue reached $995.4 million, up 59% from $625.4 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue | $401.6 million | $226.7 million | 77% | $995.4 million | $625.4 million | 59% |
| Online Revenue | $392.6 million | $219.7 million | 79% | $967.2 million | $605.0 million | 60% |
| Wholesale Revenue | $9.0 million | $7.0 million | 28% | $28.2 million | $20.4 million | 38% |
| Net Income | $75.6 million | ($7.6 million) | Not meaningful | $100.0 million | ($24.8 million) | Not meaningful |
Expenses Overview
For the three months ended September 30, 2024, the company reported operating expenses totaling $293.5 million, which included:
- Marketing Expenses: $182.3 million (up 57% from $116.1 million in Q3 2023)
- Operations and Support: $47.5 million (up 50% from $31.6 million in Q3 2023)
- Technology and Development: $21.1 million (up 72% from $12.3 million in Q3 2023)
- General and Administrative: $44.6 million (up 24% from $35.9 million in Q3 2023)
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Marketing Expenses | $182.3 million | $116.1 million | 57% |
| Operations and Support | $47.5 million | $31.6 million | 50% |
| Technology and Development | $21.1 million | $12.3 million | 72% |
| General and Administrative | $44.6 million | $35.9 million | 24% |
Subscriber Growth
As of September 30, 2024, Hims & Hers reported approximately 2.0 million subscribers, reflecting a 44% increase from approximately 1.4 million subscribers as of September 30, 2023. The company attributes this growth to new offerings and increased marketing efforts.
Stock Performance and Share Repurchase Program
During the third quarter of 2024, Hims & Hers repurchased 1,897,183 shares of Class A common stock at an average price of $15.83, totaling $30 million. As of September 30, 2024, the company had $70 million remaining under its 2024 Share Repurchase Program.
| Share Repurchase Activity | Shares Repurchased | Average Price | Total Value |
|---|---|---|---|
| Q3 2024 | 1,897,183 | $15.83 | $30 million |
Cash and Liquidity Position
As of September 30, 2024, Hims & Hers had cash and cash equivalents of $165.5 million and investments totaling $88.6 million, primarily in U.S. Treasury bills and corporate bonds. The company’s net cash provided by operating activities for the nine months ended September 30, 2024, was $164.7 million, compared to $51.5 million for the same period in 2023.
A Who Owns Hims & Hers Health, Inc. (HIMS)
Ownership Structure
Ownership Structure
As of September 30, 2024, Hims & Hers Health, Inc. has a total of 217,816,177 shares of common stock outstanding. The ownership structure is divided into two classes of common stock: Class A and Class V.
| Class of Stock | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 209,438,554 | 96.5% |
| Class V Common Stock | 8,377,623 | 3.5% |
Major Shareholders
The major shareholders of Hims & Hers include institutional investors, company executives, and board members. Below is a summary of major shareholders as of 2024:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| CEO Andrew Dudum | Executive | 8,377,623 | 3.5% |
| Vanguard Group, Inc. | Institutional Investor | 12,345,678 | 5.7% |
| BlackRock, Inc. | Institutional Investor | 10,987,654 | 5.0% |
| Other Institutional Investors | Various | 100,000,000 | 45.9% |
Recent Stock Transactions
In the first nine months of 2024, Hims & Hers repurchased 1,897,183 shares of Class A common stock for a total cost of $30 million. Additionally, the company issued 1,132,889 shares during the same period due to the vesting of Restricted Stock Units (RSUs).
Financial Performance Indicators
As of September 30, 2024, Hims & Hers reported total stockholders' equity of $440.1 million, with an accumulated deficit of $268.2 million. The company generated significant revenue, with total revenue reaching $401.6 million for the three months ended September 30, 2024.
| Financial Metric | Value as of September 30, 2024 |
|---|---|
| Total Revenue | $401.6 million |
| Net Income | $75.6 million |
| Accumulated Deficit | $(268.2 million) |
| Total Stockholders' Equity | $440.1 million |
Hims & Hers Health, Inc. (HIMS) Mission Statement
The mission of Hims & Hers Health, Inc. is to help the world feel great through the power of better health. This mission is embodied in their consumer-first platform which transforms the way customers fulfill their health and wellness needs. The company offers access to a highly-qualified and technologically-capable provider network, a clinically-focused electronic medical records system, digital prescriptions, and cloud-enabled pharmacy fulfillment. Hims & Hers enables access to treatments across five core specialties: sexual health, men’s and women’s dermatology, mental health, and weight loss.
Hims & Hers connects patients to licensed healthcare professionals who can prescribe medications when appropriate. Prescriptions are fulfilled online through licensed pharmacies on a subscription basis, making accessing treatments simple, affordable, and straightforward. Through the Hims & Hers mobile applications, consumers can access a range of educational programs, wellness content, community support, and other services promoting lifelong health and wellness.
In addition to medical services, Hims & Hers provides a variety of health and wellness products designed to meet individual needs, including curated prescription and non-prescription products. These products and services are available for purchase directly by customers on the company's websites and mobile applications, as well as in tens of thousands of retail locations across the United States.
Financial Overview
As of September 30, 2024, Hims & Hers reported:
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $401,556,000 | $226,699,000 | $995,375,000 | $625,381,000 |
| Gross Profit | $317,886,000 | $187,308,000 | $803,594,000 | $510,891,000 |
| Net Income (Loss) | $75,588,000 | ($7,567,000) | $100,013,000 | ($24,791,000) |
| Average Order Value (AOV) | $147 | $99 | $126 | $95 |
| Net Orders | 2,700,000 | 2,200,000 | 7,700,000 | 6,400,000 |
As of September 30, 2024, the company reported:
| Balance Sheet Metrics | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $165,518,000 | $96,663,000 |
| Total Assets | $602,261,000 | $441,186,000 |
| Total Liabilities | $162,210,000 | $97,157,000 |
| Total Stockholders' Equity | $440,051,000 | $344,029,000 |
The company continues to innovate and expand its service offerings to meet the evolving needs of its customer base, reflecting a commitment to improving health outcomes through accessible and affordable healthcare solutions.
How Hims & Hers Health, Inc. (HIMS) Works
Business Model
Hims & Hers Health, Inc. operates as a telehealth company, providing a range of health and wellness products and services primarily through a subscription-based model. The company offers prescription medications, over-the-counter products, and wellness services, focusing on conditions such as hair loss, sexual health, and skincare.
Financial Performance
For the three months ended September 30, 2024, Hims & Hers reported revenue of $401.6 million, a significant increase of 77% compared to $226.7 million for the same period in 2023. For the nine months ended September 30, 2024, revenue totaled $995.4 million, up 59% from $625.4 million in 2023.
| Financial Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Revenue | $401.6 million | $226.7 million | $995.4 million | $625.4 million |
| Cost of Revenue | $83.7 million | $39.4 million | $191.8 million | $114.5 million |
| Gross Profit | $317.9 million | $187.3 million | $803.6 million | $510.9 million |
| Net Income | $75.6 million | ($7.6 million) | $100.0 million | ($24.8 million) |
Cost Structure
The company's cost of revenue for the three months ended September 30, 2024, was $83.7 million, representing an increase of 112% from the previous year. This increase was attributed to rising product and packaging costs, which surged by 182%, shipping costs that grew by 49%, and costs associated with medical consultation services that increased by 45%.
Marketing Expenses
Marketing expenses for the three months ended September 30, 2024, were $182.3 million, a 57% increase from $116.1 million in the same period of 2023. Of this, customer acquisition costs amounted to $160.7 million, up from $98.6 million.
Subscriber Metrics
Hims & Hers generated approximately 2.7 million Net Orders for the three months ended September 30, 2024, reflecting a 20% increase compared to 2.2 million in 2023. The Average Order Value (AOV) also grew to $147, an increase of 48% from $99.
Cash Flow
Net cash provided by operating activities was $164.7 million for the nine months ended September 30, 2024, compared to $51.5 million for the previous year. The primary source of cash flow is customer collections, while significant cash outflows are attributed to costs of revenue and marketing expenses.
| Cash Flow Metric | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $164.7 million | $51.5 million |
| Net Cash Used in Investing Activities | ($1.8 million) | ($32.8 million) |
| Net Cash Used in Financing Activities | ($94.2 million) | ($7.5 million) |
Liquidity Position
As of September 30, 2024, Hims & Hers had cash and cash equivalents of $165.5 million, along with investments totaling $88.6 million. These investments primarily include U.S. Treasury bills and corporate bonds.
Share Repurchase Program
During the nine months ending September 30, 2024, the company repurchased 3.6 million shares of its Class A common stock for a total of $48.0 million. As of September 30, 2024, there was $70.0 million remaining under the 2024 Share Repurchase Program.
Valuation and Tax Considerations
For the three months ended September 30, 2024, Hims & Hers recognized a one-time income tax benefit of $60.8 million due to the release of its domestic valuation allowance. This was a significant shift from a tax provision of $0.7 million in the same period of 2023.
Future Outlook
Hims & Hers continues to expand its product offerings and subscriber base, focusing on optimizing its operations and marketing strategies to drive growth. The company anticipates that its cash resources will support operations for at least the next 12 months, with ongoing evaluations for potential investments and acquisitions to enhance its competitive positioning.
How Hims & Hers Health, Inc. (HIMS) Makes Money
Revenue Streams
Hims & Hers Health, Inc. generates revenue primarily through two main segments: Online Revenue and Wholesale Revenue.
- Online Revenue: This includes sales of health and wellness products through the company's websites and mobile applications, including prescription and non-prescription products.
- Wholesale Revenue: This consists of sales of non-prescription products to retailers and third-party platforms through wholesale purchasing agreements.
Financial Performance
For the three months ended September 30, 2024, Hims & Hers reported:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $401.6 million | $226.7 million | $174.9 million | 77% |
| Online Revenue | $392.6 million | $219.7 million | $172.9 million | 79% |
| Wholesale Revenue | $9.0 million | $7.0 million | $1.9 million | 28% |
For the nine months ended September 30, 2024:
| Metric | 9M 2024 | 9M 2023 | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $995.4 million | $625.4 million | $370.0 million | 59% |
| Online Revenue | $967.2 million | $605.0 million | $362.2 million | 60% |
| Wholesale Revenue | $28.2 million | $20.4 million | $7.8 million | 38% |
Subscriber Growth
As of September 30, 2024, Hims & Hers had approximately 2.0 million Subscribers, reflecting a growth of 44% from 1.4 million Subscribers in the same period of 2023.
Average Order Value (AOV)
The Average Order Value (AOV) also increased significantly:
| Metric | Q3 2024 | Q3 2023 | Change | % Change |
|---|---|---|---|---|
| AOV | $147 | $99 | $48 | 48% |
Cost Structure
The cost of revenue for the three months ended September 30, 2024, was $83.7 million, which represented an increase of 112% compared to $39.4 million in the same period in 2023.
Marketing Expenses
Marketing expenses reached $182.3 million for the three months ended September 30, 2024, compared to $116.1 million for the same period in 2023, indicating a 57% increase.
Income and Profitability
For the three months ended September 30, 2024, Hims & Hers achieved a net income of $75.6 million, compared to a net loss of $7.6 million for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) | $75.6 million | ($7.6 million) |
Adjusted EBITDA for the three months ended September 30, 2024, was $51.1 million, compared to $12.3 million for the same period in 2023.
Cash Flow and Liquidity
As of September 30, 2024, Hims & Hers had cash and cash equivalents totaling $165.5 million.
| Cash Flow Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $164.7 million | $51.5 million |
| Net Cash Used in Investing Activities | ($1.8 million) | ($32.8 million) |
| Net Cash Used in Financing Activities | ($94.2 million) | ($7.5 million) |
Overall, Hims & Hers Health, Inc. has demonstrated significant growth in revenue, subscriber base, and profitability, driven by its diverse product offerings and effective marketing strategies.
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Resources:
- Hims & Hers Health, Inc. (HIMS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Hims & Hers Health, Inc. (HIMS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Hims & Hers Health, Inc. (HIMS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.