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Business News/ News / Hims & Hers Jumps on Personalization, Weight-Loss Program Demand
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Hims & Hers Jumps on Personalization, Weight-Loss Program Demand

Hims & Hers Health Inc. jumped as much as 21% in postmarket trading Monday after it reported 2024 forecasts above estimates, banking on demand for personalized treatments and its new weight loss program.

Hims & Hers Jumps on Personalization, Weight-Loss Program DemandPremium
Hims & Hers Jumps on Personalization, Weight-Loss Program Demand

(Bloomberg) -- Hims & Hers Health Inc. jumped as much as 21% in postmarket trading Monday after it reported 2024 forecasts above estimates, banking on demand for personalized treatments and its new weight loss program. 

The San Francisco-based company is forecasting revenue of $1.17 billion to $1.2 billion in 2024, up from $872 million last year. It’s on track to hit its first year of positive net income in 2024, Chief Executive Officer Andrew Dudum said in an earnings call. 

Hims & Hers made its first quarterly profit since merging with a special purpose acquisition company in Jan. 2021, with net income of $1.25 million, or 1 cent per share, compared with a loss of 3 cents per share analysts had expected. The number of subscribers leaped to 1.54 million, up nearly 50% from a year earlier. 

It attributed its optimistic outlook to demand for personalized treatments. More than 30% of subscribers are now buying products tailored to their needs, up from less than 15% in the 2021-2022 period. Catering to individuals “will result in a much stickier relationship long-term," Dudum said.

The telehealth provider was founded in 2017 and is known for offering hair loss, skin care, sexual health, and mental health treatments online. It rolled out a subscription-based weight loss program in December, where patients are prescribed appetite suppressant pills, rather than injectables.

The company is “seeing early signs of traction" for its weight loss program, and believes it’s possible for the segment to make “meaningful contributions" to earnings faster than the usual 12 to 18 months, Chief Financial Officer Yemi Okupe said in the call. 

It still plans to offer GLP-1 injectable drugs in the future, Dudum said. 

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

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Published: 27 Feb 2024, 05:39 AM IST
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