Hims & Hers Health, the online provider offering solutions for erectile dysfunction and hair loss, celebrated its most successful day on the stock market since its debut three years ago. The surge came after quarterly results surpassed expectations, and the company projected its first full year of profitability in 2024.
Closing 31% higher at $13.43 on Tuesday afternoon, Hims & Hers shares have marked a year-to-date increase of over 50%, following a 39% climb in 2023.
Functioning as an online platform facilitating patient interactions with healthcare providers, Hims & Hers provides personalized support for various health aspects, including skincare, mental health, sexual health, weight loss, and hair care. The reported revenue for the period increased by 47% to $246.6 million, surpassing analyst expectations of $246 million, according to LSEG (formerly Refinitiv).
Founded in 2017, the company went public in January 2021 through a special purpose acquisition company. In the fourth quarter, Hims & Hers achieved net income of $1.2 million, or 1 cent per share, a significant improvement from the net loss of $10.9 million, or 5 cents per share, in the previous year.
For the first quarter, the company anticipates revenue growth of at least 40%, ranging between $267 million and $272 million, surpassing analysts’ expectations of $253 million. The full-year revenue is projected to fall between $1.17 billion and $1.2 billion.
During the quarterly investor call, CEO Andrew Dudum highlighted the impact of personalized solutions in attracting new users and sustaining platform engagement. Emerging specialties such as weight loss, mental health, and Hers Dermatology are gaining traction and are expected to contribute over $100 million each in revenue by 2025.
In the realm of mental health, Dudum emphasized the company’s use of artificial intelligence to predict individual patient responses to medication, streamlining the treatment process and avoiding unnecessary trial and error.
Analysts at Jefferies expressed immense satisfaction with the results, comparing them to a fulfilling Thanksgiving dinner. They particularly lauded the stronger-than-expected revenue, profitability, and guidance. Hims & Hers forecasts adjusted earnings of $22 million to $27 million in the first quarter, surpassing the $14 million expected by analysts, according to StreetAccount.
Deutsche Bank analysts, while maintaining a hold rating on the stock, acknowledged Hims & Hers’ strong finish to the year and “meaningfully better-than-expected” 2024 guidance, prompting them to raise their price target from $8 to $14.