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Hims & Hers shares fall after margin drop as it raises GLP-1 sales outlook
The telehealth company posted a $86.3 million net loss, reversing from profit a year earlier, even as revenue rose 38% to $753.2 million and full-year revenue guidance climbed to $3.1 billion to $3.3 billion.
Hims & Hers Health, Inc. (NYSE: HIMS) shares fell more than 6% in extended trading on August 10 after the telehealth company reported rapid revenue growth paired with sharply weaker profitability.
Revenue increased 38% year over year to $753.2 million, subscribers rose 19% to 2.89 million, and Monthly Revenue per Average Subscriber climbed 21% to $92. The company also raised its full-year revenue outlook to $3.1 billion to $3.3 billion, from a previous range of $2.8 billion to $3.0 billion.
The earnings picture, however, deteriorated. Hims & Hers reported an $86.3 million net loss, or 37 cents per share, versus a $42.5 million profit a year earlier, while gross margin fell to 64% from 76%, according to the results.
The quarter focused on the company’s GLP-1 product transition, after it expanded its branded weight-loss assortment through an agreement with Novo Nordisk in March and stopped broadly advertising compounded GLP-1 drugs. Management said the branded shift supported renewed domestic growth, with U.S. revenue up 16% year over year to $621.8 million, and subscriber net adds continuing through the transition including contributions from Eucalyptus, which joined the company in June.