
Hims & Hers Momentum Train Continues With 56% Subscriber Growth and 19% Growth in Average Revenue Per Order Despite Weakening Consumer Backdrop
11-7-23 (by: Scott Gleason) Consumer health and wellness company, Hims & Hers Health, has released its financial results for the third quarter with total revenue of $226.7 million, marking a substantial 57% increase from the same period in 2022. This exceeded consensus forecasts of $220.1 million for the quarter. Notably, the company saw a 56% increase in subscribers (end of period) compared to the same period last year, with 1,426,000 subscribers at the end of Q3 2023. Monthly Online Revenue per Average Subscriber stood at $54, showing a 4% decrease compared to the previous year. The company recorded 2,222,000 net orders during the third quarter, marking a 33% increase compared to Q3 2022. The Average Order Value (AOV) increased by 19%, with an AOV of $99 for the quarter.
Importantly, in the quarter the company made progress on consolidating its pharmacy network with 80% of orders filled through affiliated pharmacies and the expectation this will reach near 100% by year end improving pricing and efficiency. The company also plans to roll out its weight management offering in the coming weeks providing another significant area for growth. The company also noted the roll out of its AI based platform MedMatch, which will initially be used to provide patient insights and recommendations with an initial focus on mental health.
Importantly, Adjusted EBITDA turned positive at $12.3 million for the third quarter of 2023, compared to a negative $(6.1) million for the same period in 2022. Earnings per share were ($0.04) in the quarter versus consensus forecasts of ($0.03).
The company provided its financial outlook for the fourth quarter and revenue is now expected to be in the range of $243 million to $248 million, representing continued strong growth. Additionally, anticipated Adjusted EBITDA is expected to be $14 million to $17 million, with an Adjusted EBITDA margin of 6% to 7% showing continued progress on profitability.
Andrew Dudum, co-founder and CEO, stated, “Personalization continues to gain traction across our platform, and the anticipated completion of our migration toward affiliated facilities by year-end will further strengthen our ability to provide customers with a broader set of personalized solutions, providing us with strong conviction that this will be a differentiator over both the near and long-term.”