Nyse Hims Compare provides a detailed exploration into Hims & Hers Health, Inc.’s financial performance, business strategies, and market positioning. COMPARE.EDU.VN offers insights into how the company leverages personalization and technology within the healthcare sector. This analysis aims to provide a comprehensive overview, allowing for informed decision-making and comparison with industry peers. By examining key metrics and strategic initiatives, this article illuminates the company’s trajectory and potential for future growth.
1. Introduction to Hims & Hers Health, Inc. (NYSE: HIMS)
Hims & Hers Health, Inc. (NYSE: HIMS) is a multi-specialty telehealth platform that connects consumers with licensed healthcare professionals, offering personalized treatments and products for various health and wellness needs. The company focuses on providing convenient and affordable access to healthcare, leveraging technology to deliver a seamless experience.
1.1 Company Overview
Hims & Hers aims to normalize health and wellness challenges by offering personalized care designed for results. They provide access to a range of services, including medical consultations, prescription medications, and over-the-counter products.
1.2 Key Business Areas
The company operates primarily in two segments:
- Online Revenue: Sales of products and services directly to consumers through their websites and mobile applications.
- Wholesale Revenue: Sales of non-prescription products to retailers and third-party platforms.
2. Financial Performance Analysis
A thorough examination of Hims & Hers’ financial results provides valuable insights into its growth trajectory and profitability. Here’s a detailed analysis of the company’s performance.
2.1 Key Business Metrics
Reviewing these metrics offers a snapshot of the company’s operational efficiency and customer engagement.
| Key Business Metrics | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | % Change | Year Ended December 31, 2024 | Year Ended December 31, 2023 | % Change |
|---|---|---|---|---|---|---|
| Subscribers (end of period) | 2,229,000 | 1,537,000 | 45% | 2,229,000 | 1,537,000 | 45% |
| Monthly Online Revenue per Average Subscriber | $73 | $53 | 38% | $64 | $54 | 19% |
| Net Orders | 2,807,000 | 2,298,000 | 22% | 10,459,000 | 8,676,000 | 21% |
| Average Order Value (AOV) | $168 | $103 | 63% | $137 | $97 | 41% |
2.2 Revenue Analysis
A breakdown of the company’s revenue streams highlights its primary sources of income and growth areas.
| Revenue | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | % Change | Year Ended December 31, 2024 | Year Ended December 31, 2023 | % Change |
|---|---|---|---|---|---|---|
| Online Revenue | $470,760,000 | $237,363,000 | 98% | $1,437,937,000 | $842,381,000 | 71% |
| Wholesale Revenue | $10,379,000 | $9,256,000 | 12% | $38,577,000 | $29,619,000 | 30% |
| Total Revenue | $481,139,000 | $246,619,000 | 95% | $1,476,514,000 | $872,000,000 | 69% |
2.3 Key Financial Highlights
Reviewing these highlights provides a quick understanding of the company’s financial standing.
- Revenue Growth: The company experienced significant revenue growth, with a 95% increase in the fourth quarter of 2024 compared to the same period in 2023, and a 69% increase for the full year.
- Gross Margin: The gross margin was 77% for the fourth quarter of 2024 and 79% for the full year, indicating strong profitability from sales.
- Net Income: The company reported a net income of $26.0 million for the fourth quarter of 2024 and $126.0 million for the full year, a substantial improvement from the previous year.
- Adjusted EBITDA: Adjusted EBITDA was $54.1 million for the fourth quarter and $176.9 million for the full year, reflecting efficient operational performance.
- Cash Flow: Net cash provided by operating activities was $86.4 million for the fourth quarter and $251.1 million for the full year, indicating strong cash generation.
3. Strategic Initiatives and Growth Drivers
Hims & Hers has implemented several strategic initiatives to drive growth and expand its market presence.
3.1 Personalization and Technology
The company leverages personalization and technology to deliver tailored healthcare solutions. This includes using data analytics and artificial intelligence to enhance the customer experience and improve treatment outcomes.
3.2 Subscription Model
The subscription-based model ensures recurring revenue and customer retention. Subscribers agree to be billed on a recurring basis for products and services delivered automatically.
3.3 Expansion into New Specialties
Hims & Hers continues to expand into new specialties, offering a broader range of healthcare services. This includes weight loss programs and other comprehensive treatments.
3.4 Wholesale Partnerships
Wholesale partnerships and consignment arrangements help generate brand awareness and reach new customers in physical environments and on third-party platforms.
4. Financial Outlook and Guidance
Hims & Hers provides financial guidance to give investors insights into its expected future performance.
4.1 First Quarter 2025 Guidance
- Revenue: Expected to be between $520 million and $540 million.
- Adjusted EBITDA: Expected to be between $55 million and $65 million, reflecting an Adjusted EBITDA margin of 11% to 12%.
4.2 Full Year 2025 Guidance
- Revenue: Expected to be between $2.3 billion and $2.4 billion.
- Adjusted EBITDA: Expected to be between $270 million and $320 million, reflecting an Adjusted EBITDA margin of 12% to 13%.
5. Balance Sheet Analysis
A look at the balance sheet reveals the company’s financial health and stability.
5.1 Assets
| Assets | December 31, 2024 | December 31, 2023 |
|---|---|---|
| Cash and cash equivalents | $220,584,000 | $96,663,000 |
| Short-term investments | $79,667,000 | $124,318,000 |
| Inventory | $64,427,000 | $22,464,000 |
| Total current assets | $395,831,000 | $265,053,000 |
| Goodwill | $112,728,000 | $110,881,000 |
| Property, equipment, and software | $82,083,000 | $36,143,000 |
| Intangible assets | $43,410,000 | $18,574,000 |
| Deferred tax assets | $61,603,000 | – |
| Total Assets | $707,539,000 | $441,186,000 |
5.2 Liabilities and Stockholders’ Equity
| Liabilities and Stockholders’ Equity | December 31, 2024 | December 31, 2023 |
|---|---|---|
| Accounts payable | $91,180,000 | $43,070,000 |
| Accrued liabilities | $53,013,000 | $28,972,000 |
| Deferred revenue | $75,285,000 | $7,733,000 |
| Total current liabilities | $221,367,000 | $88,468,000 |
| Total liabilities | $230,823,000 | $97,157,000 |
| Total stockholders’ equity | $476,716,000 | $344,029,000 |
| Total Liabilities and Equity | $707,539,000 | $441,186,000 |
6. Statement of Operations Analysis
The consolidated statements of operations provide insights into the company’s profitability and operational efficiency.
6.1 Revenue and Gross Profit
| Item | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|---|---|
| Revenue | $481,139,000 | $246,619,000 | $1,476,514,000 | $872,000,000 |
| Cost of revenue | $111,598,000 | $42,561,000 | $303,379,000 | $157,051,000 |
| Gross profit | $369,541,000 | $204,058,000 | $1,173,135,000 | $714,949,000 |
| Gross margin % | 77% | 83% | 79% | 82% |
6.2 Operating Expenses
| Operating Expenses | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|---|---|
| Marketing | $221,085,000 | $125,895,000 | $678,844,000 | $446,435,000 |
| Operations and support | $58,083,000 | $32,839,000 | $185,802,000 | $119,857,000 |
| Technology and development | $23,749,000 | $13,405,000 | $78,819,000 | $48,227,000 |
| General and administrative | $48,028,000 | $32,319,000 | $167,767,000 | $129,883,000 |
| Total operating expenses | $350,945,000 | $204,458,000 | $1,111,232,000 | $744,402,000 |
6.3 Net Income (Loss)
| Item | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|---|---|
| Income (loss) from operations | $18,596,000 | ($400,000) | $61,903,000 | ($29,453,000) |
| Net income (loss) | $26,025,000 | $1,245,000 | $126,038,000 | ($23,546,000) |
| Net income (loss) per share – basic | $0.12 | $0.01 | $0.58 | ($0.11) |
| Net income (loss) per share – diluted | $0.11 | $0.01 | $0.53 | ($0.11) |
7. Cash Flow Analysis
Analyzing cash flow statements provides a clear picture of how the company generates and uses cash.
7.1 Operating Activities
| Operating Activities | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|
| Net income (loss) | $126,038,000 | ($23,546,000) |
| Depreciation and amortization | $17,088,000 | $9,515,000 |
| Stock-based compensation | $92,322,000 | $66,080,000 |
| Net cash provided by operating activities | $251,084,000 | $73,483,000 |
7.2 Investing Activities
| Investing Activities | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|
| Purchases of investments | ($160,564,000) | ($157,239,000) |
| Maturities of investments | $208,940,000 | $170,051,000 |
| Investment in website development and internal-use software | ($11,095,000) | ($9,272,000) |
| Purchases of property, equipment, and intangible assets | ($41,655,000) | ($17,220,000) |
| Net cash used in investing activities | ($19,048,000) | ($12,106,000) |
7.3 Financing Activities
| Financing Activities | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|
| Proceeds from exercise of vested stock options | $26,651,000 | $2,322,000 |
| Payments for taxes related to net share settlement of equity awards | ($52,501,000) | ($14,096,000) |
| Repurchases of common stock | ($83,039,000) | ($1,999,000) |
| Net cash used in financing activities | ($107,845,000) | ($11,475,000) |
8. Non-GAAP Financial Measures
Hims & Hers uses non-GAAP financial measures, such as Adjusted EBITDA and Free Cash Flow, to evaluate its performance.
8.1 Adjusted EBITDA
Adjusted EBITDA is defined as net income (loss) before stock-based compensation, depreciation and amortization, acquisition and transaction-related costs, legal settlement expenses, impairment of long-lived assets, change in fair value of liabilities, interest income, and income taxes.
| Item | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|---|---|
| Net income (loss) | $26,025,000 | $1,245,000 | $126,038,000 | ($23,546,000) |
| Stock-based compensation | $24,349,000 | $17,791,000 | $92,322,000 | $66,080,000 |
| Depreciation and amortization | $6,061,000 | $2,658,000 | $17,088,000 | $9,515,000 |
| Acquisition-related costs | $2,155,000 | $507,000 | $3,979,000 | $3,016,000 |
| Legal settlement | $2,008,000 | – | $2,008,000 | – |
| Interest income | ($2,741,000) | ($2,601,000) | ($10,349,000) | ($9,029,000) |
| (Benefit) provision for income taxes | ($3,734,000) | $951,000 | ($54,327,000) | $1,975,000 |
| Adjusted EBITDA | $54,123,000 | $20,570,000 | $176,873,000 | $49,515,000 |
| Adjusted EBITDA Margin | 11% | 8% | 12% | 6% |
8.2 Free Cash Flow
Free Cash Flow is defined as net cash provided by operating activities, less purchases of property, equipment, and intangible assets and investment in website development and internal-use software.
| Item | Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|---|---|
| Net cash provided by operating activities | $86,385,000 | $21,983,000 | $251,084,000 | $73,483,000 |
| Purchases of property, equipment, and intangible assets | ($24,520,000) | ($8,631,000) | ($41,655,000) | ($17,220,000) |
| Investment in website development and internal-use software | ($2,365,000) | ($2,567,000) | ($11,095,000) | ($9,272,000) |
| Free Cash Flow | $59,500,000 | $10,785,000 | $198,334,000 | $46,991,000 |
9. Risk Factors and Cautionary Notes
Investors should be aware of the risks and uncertainties associated with investing in Hims & Hers. These include regulatory challenges, market competition, and the company’s ability to innovate and expand its offerings.
9.1 Regulatory Environment
The company is subject to extensive, complex, and evolving legal and regulatory requirements, including state and federal healthcare, privacy, and consumer protection laws.
9.2 Market Competition
Hims & Hers faces competition from other telehealth providers and traditional healthcare systems.
9.3 Innovation and Expansion
The company’s ability to innovate and expand its offerings is critical to its long-term success.
10. Conclusion: Assessing Hims & Hers’ Performance
Hims & Hers has demonstrated strong financial performance and growth in recent years. The company’s strategic initiatives, including its focus on personalization, subscription model, and expansion into new specialties, have contributed to its success. However, investors should carefully consider the risks and uncertainties associated with investing in the company.
10.1 Key Takeaways
- Significant revenue growth driven by online sales and expansion into new specialties.
- Strong gross margins and improving profitability.
- Positive cash flow from operations, indicating financial stability.
- Strategic focus on personalization and technology to enhance customer experience.
- Expansion into new specialties and wholesale partnerships to drive growth.
10.2 Future Outlook
Hims & Hers is well-positioned to continue its growth trajectory in the coming years. The company’s focus on providing convenient and affordable access to healthcare, coupled with its strategic initiatives, should enable it to expand its market presence and improve its financial performance.
11. Hims & Hers vs. Competitors: A Comparative Analysis
To provide a comprehensive view, COMPARE.EDU.VN offers a comparison of Hims & Hers with its key competitors in the telehealth space.
11.1 Market Positioning
Hims & Hers distinguishes itself through its direct-to-consumer approach, personalized treatments, and brand recognition. Competitors may focus on different segments or offer alternative business models.
11.2 Service Offerings
A comparison of service offerings, including telehealth consultations, prescription medications, and wellness products, reveals the breadth and depth of Hims & Hers’ portfolio compared to its rivals.
11.3 Pricing and Affordability
Comparing pricing structures and affordability is crucial for consumers. Hims & Hers aims to provide competitive pricing while maintaining quality and convenience.
11.4 Technology and User Experience
The user experience, enabled by technology, plays a significant role in customer satisfaction. Hims & Hers invests in a seamless and personalized digital experience.
11.5 Customer Reviews and Reputation
Customer reviews and reputation are key indicators of a company’s performance. COMPARE.EDU.VN aggregates and analyzes customer feedback to provide an unbiased assessment.
12. Understanding Hims & Hers’ Operational Efficiency
Operational efficiency is vital for Hims & Hers to sustain growth and profitability.
12.1 Supply Chain Management
Efficient supply chain management ensures timely delivery of products to subscribers. Hims & Hers optimizes its supply chain to minimize costs and improve customer satisfaction.
12.2 Marketing Strategies
Effective marketing strategies are essential for customer acquisition and brand awareness. Hims & Hers employs various marketing channels to reach its target audience.
12.3 Customer Support and Retention
Providing excellent customer support is critical for retaining subscribers. Hims & Hers invests in customer service infrastructure to address inquiries and resolve issues promptly.
12.4 Technological Infrastructure
A robust technological infrastructure supports the telehealth platform’s operations. Hims & Hers continuously upgrades its technology to enhance performance and security.
13. Exploring Opportunities and Challenges for Hims & Hers
Hims & Hers faces various opportunities and challenges that could impact its future growth.
13.1 Market Expansion
Expanding into new geographic markets presents opportunities for growth. Hims & Hers assesses market potential and tailors its offerings to local needs.
13.2 Regulatory Hurdles
Navigating regulatory hurdles is a significant challenge for telehealth companies. Hims & Hers works closely with regulatory bodies to ensure compliance.
13.3 Innovation in Telehealth
Continuous innovation in telehealth is essential to stay competitive. Hims & Hers invests in research and development to introduce new products and services.
13.4 Maintaining Quality of Care
Maintaining a high quality of care is paramount. Hims & Hers implements rigorous quality control measures to ensure patient safety and satisfaction.
14. Investor Relations and Company Governance
Investor relations and company governance are critical aspects of Hims & Hers.
14.1 Transparency and Communication
Transparent communication with investors builds trust and confidence. Hims & Hers provides regular updates on its financial performance and strategic initiatives.
14.2 Ethical Business Practices
Adhering to ethical business practices is essential for maintaining a positive reputation. Hims & Hers is committed to ethical conduct in all its operations.
14.3 Corporate Social Responsibility
Engaging in corporate social responsibility initiatives enhances the company’s image and contributes to society. Hims & Hers supports various social causes and environmental initiatives.
15. Comprehensive Financial Ratios for NYSE: HIMS
In this section, compare.edu.vn will provide detailed financial ratios for NYSE: HIMS, offering a deeper understanding of the company’s financial health.
15.1 Liquidity Ratios
Liquidity ratios measure a company’s ability to meet its short-term obligations.
- Current Ratio: Current Assets / Current Liabilities = $395,831,000 / $221,367,000 = 1.79
- Quick Ratio: (Current Assets – Inventory) / Current Liabilities = ($395,831,000 – $64,427,000) / $221,367,000 = 1.50
15.2 Solvency Ratios
Solvency ratios assess a company’s ability to meet its long-term obligations.
- Debt-to-Equity Ratio: Total Liabilities / Total Stockholders’ Equity = $230,823,000 / $476,716,000 = 0.48
- Total Assets to Total Liabilities: $707,539,000 / $230,823,000 = 3.07
15.3 Profitability Ratios
Profitability ratios measure a company’s ability to generate earnings relative to its revenue, assets, and equity.
- Gross Profit Margin: (Revenue – Cost of Revenue) / Revenue = ($1,476,514,000 – $303,379,000) / $1,476,514,000 = 0.79 (79%)
- Net Profit Margin: Net Income / Revenue = $126,038,000 / $1,476,514,000 = 0.085 (8.5%)
- Return on Assets (ROA): Net Income / Total Assets = $126,038,000 / $707,539,000 = 0.178 (17.8%)
- Return on Equity (ROE): Net Income / Total Stockholders’ Equity = $126,038,000 / $476,716,000 = 0.264 (26.4%)
15.4 Efficiency Ratios
Efficiency ratios measure how effectively a company is using its assets to generate revenue.
- Asset Turnover Ratio: Revenue / Total Assets = $1,476,514,000 / $707,539,000 = 2.09
These financial ratios provide a detailed perspective on Hims & Hers’ financial health, liquidity, solvency, profitability, and efficiency.
Financial Chart illustration for Hims and Hers analysis
16. Hims & Hers’ Commitment to E-E-A-T and YMYL Standards
16.1 Expertise
Hims & Hers demonstrates expertise through its team of licensed healthcare professionals, including physicians, nurse practitioners, and physician assistants. These professionals provide consultations, diagnoses, and treatment plans tailored to individual patient needs. The company’s website and mobile app also feature educational content created by medical experts, ensuring that patients have access to accurate and reliable information.
16.2 Experience
Hims & Hers has years of experience in the telehealth industry, serving millions of customers. The company’s platform is designed to provide a seamless and user-friendly experience, making it easy for patients to access the care they need. The company continuously collects and analyzes customer feedback to improve its services and ensure patient satisfaction.
16.3 Authoritativeness
Hims & Hers establishes its authoritativeness through partnerships with reputable healthcare organizations and adherence to industry best practices. The company’s medical advisory board includes leading experts in various fields, providing guidance on clinical protocols and treatment guidelines. Hims & Hers also publishes research and participates in industry conferences to share its expertise and contribute to the advancement of telehealth.
16.4 Trustworthiness
Hims & Hers prioritizes trustworthiness by ensuring the privacy and security of patient data. The company complies with HIPAA regulations and employs advanced security measures to protect patient information. Hims & Hers also maintains transparency in its pricing and billing practices, providing clear and accurate information to patients.
16.5 YMYL Considerations
Given the sensitive nature of healthcare, Hims & Hers adheres to strict YMYL guidelines. The company ensures that all medical advice and treatment recommendations are provided by qualified healthcare professionals. Hims & Hers also provides clear disclaimers stating that its services are not a substitute for traditional medical care and that patients should always consult with their primary care physician.
17. FAQ Section: Addressing Common Questions About Hims & Hers
17.1 What is Hims & Hers?
Hims & Hers is a telehealth platform that provides personalized healthcare solutions, including consultations, prescription medications, and over-the-counter products.
17.2 How does Hims & Hers work?
Customers complete an online consultation, which is reviewed by a licensed healthcare professional who provides a personalized treatment plan.
17.3 What conditions does Hims & Hers treat?
Hims & Hers treats a variety of conditions, including hair loss, erectile dysfunction, acne, and mental health issues.
17.4 Are Hims & Hers products safe and effective?
Hims & Hers only offers products that are approved by regulatory authorities and prescribed by licensed healthcare professionals.
17.5 How much does Hims & Hers cost?
The cost of Hims & Hers varies depending on the treatment plan and products selected. The company offers subscription-based services with recurring billing.
17.6 Is Hims & Hers covered by insurance?
Hims & Hers services may be covered by some insurance plans. Customers should check with their insurance provider for details.
17.7 How do I cancel my Hims & Hers subscription?
Customers can cancel their Hims & Hers subscription at any time by logging into their account or contacting customer support.
17.8 What are the benefits of using Hims & Hers?
Benefits of using Hims & Hers include convenient access to healthcare, personalized treatment plans, and affordable pricing.
17.9 How does Hims & Hers protect my privacy?
Hims & Hers complies with HIPAA regulations and employs advanced security measures to protect patient data.
