Quarterly revenue surpassed the $100 million
mark to $101.3 million in Q1 2022, up 94% year-over-year
Largest-ever quarterly gain in member
subscriptions, increasing 101,000 in the quarter, ending Q1 2022
with 710,000 subscriptions, up 82% year-over-year
Raises full year 2022 revenue guidance to the
range of $410.0 million to $425.0 million and maintains Adjusted
EBITDA guidance in the range of $(30.0) million to $(20.0)
million
Hims & Hers Health, Inc. (“Hims & Hers”, NYSE: HIMS), a
multi-specialty telehealth platform that connects consumers to
licensed healthcare professionals and provides access to related
prescription fulfillment, today reported financial results for the
first quarter ending March 31, 2022.
“We kicked off 2022 with breakout performance, executing with
strength against all facets of our long-term strategy and financial
goals. Investments in platform infrastructure, technology and core
capabilities drove meaningful improvements to the seamless customer
experience, ultimately increasing operational efficiency and
helping deliver a meaningful Adjusted EBITDA beat. Our new mobile
platform, with a broad range of value-added services, saw robust
organic adoption rates, helping deliver a historic quarter for us
as we achieved the largest increase in quarterly subscriptions to
date and surpassed $100 million in quarterly revenue for the first
time in our history,” said Andrew Dudum, CEO and co-founder of Hims
& Hers. “Our brand, which is one of our most important
strategic assets, we believe delivered meaningful tailwinds this
quarter. Our omni-channel presence and authentic and trusted
messaging we believe is resonating deeply with new and existing
customers, driving unique flywheel dynamics. It is an exciting year
for Hims & Hers as our mission to empower us all to live
healthier and happier lives is more relevant and more attainable
than ever before.”
Key Business Metrics
(In Thousands, Except AOV, Unaudited)
Three Months Ended
March 31,
2022
2021
Change
AOV
$
78
$
74
$
4
Net Orders
1,207
687
520
As of March 31,
2022
2021
Change
Subscriptions
710
391
319
Revenue
(In Thousands, Unaudited)
Three Months Ended March
31,
2022
2021
Change
Online Revenue
$
94,102
$
50,680
$
43,422
Wholesale Revenue
7,212
1,634
5,578
Total revenue
$
101,314
$
52,314
$
49,000
Total revenue year-over-year growth
94
%
74
%
- Revenue was $101.3 million for the first quarter 2022
compared to $52.3 million for the first quarter 2021, an increase
of 94% year-over-year.
- Net loss was $(16.3) million for the first quarter 2022
compared to $(51.4) million for the first quarter 2021.
- Gross margin was 74% for the first quarter 2022 compared
to 77% for the first quarter 2021.
- Adjusted EBITDA was $(6.1) million for the first quarter
2022 compared to $(8.6) million for the first quarter 2021.
A reconciliation of Adjusted EBITDA, a non-GAAP measure, to net
loss, its most comparable financial measure under generally
accepted accounting principles in the United States (“U.S. GAAP”),
has been provided in this press release in the accompanying tables.
Additional information about Adjusted EBITDA is also included below
under the heading “Non-GAAP Financial Measures”.
Recent Business Highlights
- Expanded the breadth of health and wellness curated educational
content and program offerings on the Hims & Hers platform
through an exclusive partnership with Goodpath, focusing on
conditions related to sleep, musculoskeletal (MSK) issues, back
pain, and gastroesophageal reflux (GERD).
- Partnered with Carbon Health, expanding care options for
California customers by enabling seamless care for a wide range of
conditions. The Hims & Hers network of health system
relationships, which allows patients an option to connect to high
quality providers if they require additional follow-up or
evaluation due to complex medical histories, symptoms, or risk
factors for conditions for which Hims & Hers does not currently
offer treatment, now spans seven states and the District of
Columbia.
- Doubled the number of Hims & Hers skincare product
offerings for increased personalized care, addressing common
skincare concerns by unveiling facial cleanser, moisturizer, daily
SPF, spot corrector and face oil. Now available on forhims.com and
forhers.com and at select CVS Pharmacy locations.
Financial Outlook
Hims & Hers provides guidance based on current market
conditions and expectations for revenue and Adjusted EBITDA, which
is a non-GAAP financial measure.
For the second quarter 2022, we expect:
- Revenue to be in the range of $103 million to $106
million.
- Adjusted EBITDA to be in the range of $(9) million to $(7)
million, which would reflect an Adjusted EBITDA margin in the range
of (9)% to (7)%.
For the full year 2022, we expect:
- Revenue to be in the range of $410 million to $425
million.
- Adjusted EBITDA to be in the range of $(30) million to $(20)
million, which would reflect an Adjusted EBITDA margin in the range
of (7)% to (5)%.
The guidance provided above constitutes forward-looking
statements and actual results may differ materially. Refer to the
“Cautionary Note Regarding Forward-Looking Statements” safe harbor
section below for information on the factors that could cause our
actual results to differ materially from these forward-looking
statements.
We have not reconciled forward-looking Adjusted EBITDA to its
most directly comparable U.S. GAAP measure, net loss, because we
cannot predict with reasonable certainty the ultimate outcome of
certain components of such reconciliations, including
market-related assumptions that are not within our control, or
others that may arise, without unreasonable effort. For these
reasons, we are unable to assess the probable significance of the
unavailable information, which could materially impact the amount
of future net loss. See “Non-GAAP Financial Measures” for
additional important information regarding Adjusted EBITDA.
Conference Call
Hims & Hers will host a conference call to review the first
quarter 2022 results on May 9, 2022, at 5:00 p.m. ET. The
conference call can be accessed by dialing +1 (888) 510-2630 for
U.S. participants and +1 (646) 960-0137 for international
participants, and referencing conference ID #1704296. A live audio
webcast will be available online at https://investors.forhims.com/.
A replay of the call will be available via webcast for on-demand
listening shortly after the completion of the call at the same
link.
About Hims & Hers Health, Inc.
Hims & Hers is a multi-specialty telehealth platform
transforming the way healthcare is delivered. Its digital platform
enables access to treatments for a broad range of conditions,
including those related to sexual health, hair loss, dermatology,
mental health and primary care. 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 app, consumers can access an ever-expanding
range of educational programs, wellness content, community support,
and other services that promote lifelong health and wellness. Hims
& Hers products can also be found in tens of thousands of top
retail locations in the United States. Launched in November 2017,
Hims & Hers serves the entire United States and select
locations in the United Kingdom. The company is publicly traded on
the New York Stock Exchange. For more information about Hims &
Hers, please visit forhims.com and
forhers.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements can be identified by the
use of forward-looking terminology, including the words “believe,”
“estimate,” “anticipate,” “expect,” “assume,” “imply,” “intend,”
“plan,” “may,” “will,” “potential,” “project,” “predict,”
“continue,” “could,” or “should,” or, in each case, their plural,
their negative or other variations or comparable terminology. There
can be no assurance that actual results will not materially differ
from expectations. Such statements include, but are not limited to,
any statements relating to our financial outlook and guidance, our
expected future financial and business performance including with
respect to our Hims & Hers mobile platform, the assumptions
underlying such statements, statements about events and trends
including events and trends that we believe may affect our
financial condition, results of operations, short- and long-term
business operations and objectives, and financial needs, our
expectations regarding market acceptance, user experience, the
success of our business model, the growth of certain of our
categories and the impact of our recent acquisitions, our ability
to expand the scope of our offerings, and our ability to comply
with the extensive, complex and evolving regulatory requirements
applicable to the healthcare industry. These statements are based
on management’s current expectations, but actual results may differ
materially due to various factors.
The forward-looking statements contained in this press release
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. Future developments
affecting us may not be those that we have anticipated. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond our control) and other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements. These risks and uncertainties include, but are not
limited to, those factors described in the “Risk Factors” section
of our most recently filed Annual Report on Form 10-K, our most
recently filed Quarterly Report on Form 10-Q, and our subsequent
filings with the Securities and Exchange Commission (the
“Commission”).
Should one or more of these risks or uncertainties materialize,
or should any of our assumptions prove incorrect, actual results
may vary in material respects from those projected in these
forward-looking statements. We undertake no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities laws.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. We caution
you that forward-looking statements are not guarantees of future
performance and that our actual results of operations, financial
condition and liquidity, and developments in the industry in which
we operate may differ materially from those made in or suggested by
the forward-looking statements contained in reports we have filed
or will file with the Commission, including our most recently filed
Annual Report on Form 10-K, our most recently filed Quarterly
Report on Form 10-Q, and our subsequent filings with the
Commission. In addition, even if our results of operations,
financial condition and liquidity, and developments in the industry
in which we operate are consistent with the forward-looking
statements contained in such reports, those results or developments
may not be indicative of results or developments in subsequent
periods.
Key Business Metrics
Average Order Value (“AOV”) is defined as Online Revenue
divided by Net Orders (each as defined below).
“Net Orders” are defined as the number of online customer
orders minus transactions related to refunds, credits, chargebacks,
and other negative adjustments. Net Orders represent transactions
made on our platform during a defined period of time and exclude
revenue recognition adjustments recorded pursuant to U.S. GAAP.
“Online Revenue” represents the sales of products and
services on our platform, net of refunds, credits, and chargebacks,
and includes revenue recognition adjustments recorded pursuant to
U.S. GAAP, primarily relating to deferred revenue and returns
reserve. Online Revenue is generated by selling directly to
consumers through our websites and mobile application. Our Online
Revenue consists of products and services purchased by customers
directly through our online platform. The majority of our Online
Revenue is subscription-based, where customers agree to be billed
on a recurring basis to have products and services automatically
delivered to them.
“Subscriptions” are defined as the number of customer
agreements where the customer has agreed to be automatically billed
on a recurring basis at a defined cadence. The billing cadence is
typically defined as a number of months (for example, billed every
month or every three months). Subscriptions are excluded from our
reporting when payment has not occurred at the contracted billing
cadence. Subscription billing is preferred by many of our customers
because most of the products and services we make available treat
chronic conditions and these product and service offerings are most
effective when taken consistently and continuously. Customers can
cancel subscriptions in between billing periods to stop receiving
additional products and services and can reactivate subscriptions
to continue receiving additional products and services.
Subscriptions are sometimes also referred to by us as “subscription
memberships” or “memberships.”
“Wholesale Revenue” represents non-prescription product
sales to retailers through wholesale purchasing agreements. We sell
only non-prescription products to wholesale partners. In addition
to being revenue generative and profitable, wholesale partnerships
have the added benefit of generating brand awareness with new
customers in physical environments.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In Thousands, Except Share and
Per Share Data)
March 31, 2022
December 31,
2021
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
48,284
$
71,784
Short-term investments
154,769
175,490
Inventory
12,143
13,558
Prepaid expenses and other current
assets
16,750
9,073
Total current assets
231,946
269,905
Restricted cash
856
856
Goodwill
110,881
110,881
Intangibles, net
24,848
25,890
Operating lease right-of-use assets
4,787
5,111
Other long-term assets
8,721
7,942
Total assets
$
382,039
$
420,585
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
23,906
$
19,640
Accrued liabilities
9,089
12,194
Deferred revenue
1,145
3,188
Earn-out payable
12,972
42,834
Operating lease liabilities
1,388
1,365
Total current liabilities
48,500
79,221
Operating lease liabilities
3,763
4,117
Earn-out liabilities
1,544
1,999
Other long-term liabilities
517
629
Total liabilities
54,324
85,966
Commitments and contingencies
Stockholders' equity:
Common stock – Class A shares, par value
$0.0001, 2,750,000,000 shares authorized and 197,503,386 and
196,414,363 shares issued and outstanding as of March 31, 2022 and
December 31, 2021, respectively; Class V shares, par value $0.0001,
10,000,000 shares authorized and 8,377,623 shares issued and
outstanding as of March 31, 2022 and December 31, 2021
21
20
Additional paid-in capital
623,220
613,687
Accumulated other comprehensive loss
(323
)
(137
)
Accumulated deficit
(295,203
)
(278,951
)
Total stockholders' equity
327,715
334,619
Total liabilities and stockholders'
equity
$
382,039
$
420,585
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In Thousands, Except Share and
Per Share Data, Unaudited)
Three Months Ended
March 31,
2022
2021
Revenue
$
101,314
$
52,314
Cost of revenue
26,558
12,067
Gross profit
74,756
40,247
Gross margin %
74
%
77
%
Operating expenses:(1)
Marketing
48,093
26,958
Selling, general, and administrative
43,582
61,698
Total operating expenses
91,675
88,656
Loss from operations
(16,919
)
(48,409
)
Other income (expense):
Change in fair value of liabilities
441
(2,681
)
Other income, net
320
(224
)
Total other income (expense), net
761
(2,905
)
Loss before income taxes
(16,158
)
(51,314
)
Provision for income taxes
(94
)
(90
)
Net loss
(16,252
)
(51,404
)
Other comprehensive loss
(186
)
(61
)
Total comprehensive loss
$
(16,438
)
$
(51,465
)
Net loss per share attributable to common
stockholders:
Basic and diluted
$
(0.08
)
$
(0.34
)
Weighted average shares outstanding:
Basic and diluted
202,695,970
153,080,538
______________
- Includes stock-based compensation expense as follows (in
thousands):
Three Months Ended
March 31,
2022
2021
Marketing
$
823
$
1,846
Selling, general, and administrative
8,033
32,384
Total stock-based compensation expense
$
8,856
$
34,230
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In Thousands, Unaudited)
Three Months Ended
March 31,
2022
2021
Operating activities
Net loss
$
(16,252
)
$
(51,404
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
1,741
394
Stock-based compensation
8,856
34,230
Change in fair value of liabilities
(441
)
2,681
Warrant expense in connection with
Merger
—
154
Amortization of debt issuance costs
—
144
Net amortization on securities
971
287
Benefit for deferred taxes
(112
)
—
Non-cash operating lease cost
377
378
Non-cash other
(94
)
165
Changes in operating assets and
liabilities:
Inventory
1,415
(980
)
Prepaid expenses and other current
assets
(7,677
)
(7,147
)
Other long-term assets
(30
)
(58
)
Accounts payable
4,266
5,117
Accrued liabilities
(3,148
)
1,114
Deferred revenue
(2,043
)
(648
)
Operating lease liabilities
(384
)
(375
)
Earn-out payable
(6,848
)
—
Net cash used in operating activities
(19,403
)
(15,948
)
Investing activities
Purchases of investments
(84,881
)
(172,021
)
Maturities of investments
82,340
9,500
Proceeds from sales of investments
22,291
—
Investment in website development and
internal-use software
(1,197
)
(740
)
Purchases of property, equipment, and
intangible assets
(100
)
(63
)
Net cash provided by (used in) investing
activities
18,453
(163,324
)
Financing activities
Pre-closing stock repurchase
—
(22,027
)
Proceeds from issuance of common stock
upon Merger
—
197,686
Proceeds from PIPE
—
75,000
Payments for transaction costs related to
securities issuances
—
(12,794
)
Proceeds from repayment of promissory
notes associated with vested and unvested shares
—
1,193
Proceeds from exercise of Class A common
stock warrants
—
807
Proceeds from exercise of vested and
unvested stock options
891
80
Payments for taxes related to net share
settlement of equity awards
(404
)
—
Payments for earn-out consideration for
acquisitions
(23,014
)
—
Net cash (used in) provided by financing
activities
(22,527
)
239,945
Foreign currency effect on cash and cash
equivalents
(23
)
2
(Decrease) increase in cash, cash
equivalents, and restricted cash
(23,500
)
60,675
Cash, cash equivalents, and restricted
cash at beginning of period
72,640
28,350
Cash, cash equivalents, and restricted
cash at end of period
$
49,140
$
89,025
Reconciliation of cash, cash
equivalents, and restricted cash
Cash and cash equivalents
$
48,284
$
88,169
Restricted cash
856
856
Total cash, cash equivalents, and
restricted cash
$
49,140
$
89,025
Supplemental disclosures of cash flow
information
Cash paid for taxes
$
36
$
59
Non-cash investing and financing
activities
Recapitalization from redeemable
convertible preferred stock pre-closing stock repurchase
$
—
$
125
Conversion of redeemable convertible
preferred stock to common stock
—
249,837
Assumption of Merger warrants
liability
—
51,814
Exercise of Private Placement Warrants and
Public Warrants
—
20,871
Conversion of Series D preferred stock
warrants to Class A common warrants
—
1,160
Vesting of early exercised stock
options
38
54
Non-GAAP Financial Measures
In addition to our financial results determined in accordance
with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP
measure), and Adjusted EBITDA margin (which is a non-GAAP ratio),
each as defined below. We use Adjusted EBITDA and Adjusted EBITDA
margin to evaluate our ongoing operations and for internal planning
and forecasting purposes. We believe that Adjusted EBITDA and
Adjusted EBITDA margin, when taken together with our corresponding
U.S. GAAP financial measures, provides meaningful supplemental
information regarding our performance by excluding certain items
that may not be indicative of our business, results of operations,
or outlook. We consider Adjusted EBITDA and Adjusted EBITDA margin
to be an important measure because it helps illustrate underlying
trends in our business and our historical operating performance on
a more consistent basis. We believe that the use of Adjusted EBITDA
and Adjusted EBITDA margin is helpful to our investors as it is a
metric used by management in assessing the health of our business
and our operating performance.
However, non-GAAP financial information is presented for
supplemental informational purposes only, has limitations as an
analytical tool, and should not be considered in isolation or as a
substitute for financial information presented in accordance with
U.S. GAAP. In addition, other companies, including companies in our
industry, may calculate similarly-titled non-GAAP financial
measures or ratios differently or may use other measures or ratios
to evaluate their performance, all of which could reduce the
usefulness of Adjusted EBITDA or Adjusted EBITDA margin as tools
for comparison. Reconciliations are provided below to the most
directly comparable financial measures stated in accordance with
U.S. GAAP. Investors are encouraged to review our U.S. GAAP
financial measures and not to rely on any single financial measure
to evaluate our business.
Adjusted EBITDA is a key performance measure that our management
uses to assess our operating performance. Because Adjusted EBITDA
facilitates internal comparisons of our historical operating
performance on a more consistent basis, we use this measure for
business planning purposes. “Adjusted EBITDA” is defined as net
loss before stock-based compensation, depreciation and
amortization, acquisition-related costs, provision for income
taxes, interest income, change in fair value of liabilities,
one-time bonuses and warrant expense in connection with the
combination of Hims, Inc. (“Hims”) and Oaktree Acquisition Corp.
(“OAC”), with Hims continuing as the surviving entity and as a
wholly-owned subsidiary of OAC, which changed its name to Hims
& Hers Health, Inc. (the “Merger”), and amortization of debt
issuance costs. “Adjusted EBITDA margin” is defined as Adjusted
EBITDA divided by revenue.
Some of the limitations of Adjusted EBITDA include (i) Adjusted
EBITDA does not properly reflect capital commitments to be paid in
the future, and (ii) although depreciation and amortization are
non-cash charges, the underlying assets may need to be replaced and
Adjusted EBITDA does not reflect these capital expenditures. In
evaluating Adjusted EBITDA, you should be aware that in the future
we will incur expenses similar to the adjustments in this
presentation. Our presentation of Adjusted EBITDA should not be
construed as an inference that our future results will be
unaffected by these expenses or any unusual or non-recurring items.
We compensate for these limitations by providing specific
information regarding the U.S. GAAP items excluded from Adjusted
EBITDA. When evaluating our performance, you should consider
Adjusted EBITDA in addition to, and not a substitute for, other
financial performance measures, including our net loss and other
U.S. GAAP results.
Net Loss to Adjusted EBITDA Reconciliation
(In Thousands, Unaudited)
Three Months Ended
March 31,
2022
2021
Revenue
$
101,314
$
52,314
Net loss
(16,252
)
(51,404
)
Stock-based compensation
8,856
34,230
Depreciation and amortization
1,741
394
Acquisition-related costs
116
—
Provision for income taxes
94
90
Interest income
(175
)
(82
)
Change in fair value of liabilities
(441
)
2,681
Merger bonuses
—
5,219
Warrant expense in connection with
Merger
—
154
Amortization of debt issuance costs
—
144
Adjusted EBITDA
$
(6,061
)
$
(8,574
)
Adjusted EBITDA margin
(6
) %
(16
) %
Contacts:
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220509005840/en/
Investor Relations Jay Spitzer +1 (415) 598 0718
Investors@forhims.com
Media Relations Press@forhims.com
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