Hims & Hers Health (HIMS) 18 Mar 212020 Q4 Earnings call transcript

Good afternoon, and thank you for joining us on today's conference call to discuss Hims & Hers Health, Inc.'s Fourth Quarter and Full Year 2020 Financial Results.

Joining me on the call are Andrew Dudum, our Chief Executive Officer; and Spencer Lee, our Chief Financial Officer.

On this call, we will be making forward-looking statements, including financial guidance and expectations for our first quarter and fiscal year 2021, growth expansion into new categories, strategies, customer demand and products. These statements reflect our best judgment based on factors currently known to us, and actual events or results may differ materially. we with the today's documents Form including to filed XX-K press refer filed SEC, with the Please release. in differ Those factors documents those to that other statements. contained from may cause contain our actual risks our forward-looking and results of These disclaim and revise statements. any forward-looking or we update today, made to statements being these are as obligation call be current or this reviewed today, after not If the information may call is presented during this accurate.

principles. with financial measures, which not generally We accepted also accordance accounting discuss non-GAAP will prepared are in

a GAAP on today on of results and provided periods, non-GAAP historical filed For available release in reconciliation with is and our also the an press website. SEC, the X-K

And it turn with I'll Dudum. now over to that, Andrew

monumental thank first our Hers, joining our & vision you be a and earnings I'm and future. happy public share you and for for review for was to year the all today to Hims as Welcome, exciting a our with performance call company. XXXX

a plans Exchange. ticker a big into merger taken We've January the year, agreement. merger we we our on and And under care. New of a the SPAC create step door trading began entered SPAC completed in HIMS in Stock our to health year, Last this symbol to York new forward front

founder core tailwinds across best-in-class and business repeat that significant both robust, start-up very a combines like vision, and XX & of come over and a Hers, As massive diversified few investor margins. look years, I've for Hims businesses that fundamentals a growth multigenerational

so DNA brand of in to of market. the of one that digital reason plan companies in leverage public & energized has speed generation. build are dynamics for And building old the We our spades. it Hims business, just to we future the is innovation, transformative unique next our for most the X-year health of and Hers a As company that these

successful an shared XXXX that pleased year. meet operational exceed roadshow During for important a big steps an able from with fall to to the course past led performance that of we're in XXXX, incredibly standpoint and I'm expectations this surprises. no we took the very

that itself focus. and a on prides prudent are We team execution

the both ended of bottom adjusted consumers the to services with spectrum ended XX% We and over and helping across expansion in Powering revenue the and to and of state plan We including every services their in offering comfort clinical world-class medical line, backgrounds XXX,XXX safety in we year-over-year, and care of medical on from offerings. ahead nation, our products thousands significantly access socioeconomic an of top platform, demographics and XX% growth powering gross serve our of the dozens year-over-year. a access the on and of homes. full patients visits subscriptions internal EBITDA the margin day, year year across X million people individuals XX% losses over reduction for

care services, investments dermatology, In the $XX order for depression billion for market and to mental $XXX opportunities, $XX XXXX, success large and and included billion, unlock health anxiety growth primary continued made This come. very we years launch to strategic the and of billion respectively. in

is and health diversified As set a brand, serve opportunity supported and umbrella into ability believe our will prudently health We categories this is that, move U.S. opportunities more care I've consumer across expand specialty under our and platform known to expand transformative business that in to have more experiences brand you, we many ours unique is It successfully opportunity customers dozens country the build growth system the We by the much a unique to towards have over and defensible to within units. digital shared with exist. and expect a of like we for with households wellness next special we to a decade. believe of And of these of a asset. and systematically new services that conditions.

In emerging and meaning. early report are and to like future a today platform, signs of excited rapidly of in is in XXXX, of leadership customer deliberately categories, several digitally investments those native a this key. investments brand critical person-hours because and we Hims of clinical growth to I'm fundamentals. and to and we boldly drive demand hundreds are & a robust dollars Hers Investments showing made build hundreds of next-generation position millions with invested protocols thousands

and Looking to growth. unlock same investing the the future, path, to can follow to future us drive expect you

to. you give what the of examples me some Let up of we've been

Hers formularies, expanded For launch custom treatment in bundles new dermatology hair and and plans. invested we to product the personalized our enhanced categories brand, and for assortment care

new With Hers these conversion to categories doubled to focus, the year-over-year improved customer more In XXXX, continues QX than acquisition team's brand and a demand. channels unlock materially in revenue awareness. and focus as work with further we be

at led access and affordable launched believe who evaluations we depression, similar growth MDLive saw for Cohen, business Vice leading health, demographics. iterations are by portfolio. our mental conditions be prevalent anxiety Senior our These revenue most energized recently led in our of can to in are quarter-over-quarter President and too we vertical QX Julian eventually far by Health, and what are initiatives that In a insights, Teladoc. has We similar core customer strong psychiatric seen growing organizations and prudent With in this Behavioral growth demand.

patients further primary set offering ultimately expanded we across high daily deeper a launched needs, health medical wellness and platforms to virtual and broad support affordable primary values. care care exceptionally our to streamlined addition, as of offering. In NPS creating With compared and broader with care health this lifetime engage traditional trust, an allows systems,

in center and will deliver smart This high-quality we capability. in to in efficiency we infrastructure fulfillment and future efficiency improved addition improved facility customer continue In notably, invested a is drive investment to platform verticalization and category-specific opened key investments square that XXX,XXX foot Ohio. as growth, pharmacy believe we experiences. XXXX, unlock broad we Most to a

In options facilitate to care pharmaceutical broadening for will customers. access future ultimately and this addition, insurance our products, pharmacy further reimbursement even

of have We over in in a providers, simplify a expect moment better better you meet we months empower standardize those shown a customers outcomes; drive transparency, where people can we for last health access and unique find care Hers, and moment the there to of believe & moment this front conversations, year has accelerated engagement COVID-XX Experiencing a system. health ease the At where building and people's and Hims better telehealth. on-demand are which to way, several lastly, moment native patient where ourselves, technology and dramatically and experiences; price the many telehealth time discussed has we simplicity AI a way. that clinical door is protocols, of new and diagnoses the beautiful understanding higher the care digitally chance

team continues look we our durable that XXXX, towards key expand to advantages such distinct allowed As have on and rapid growth.

on where and for focus and and digitally first cell unique the convenience, up especially customer meet our consumers, exactly Z, they generation their with their hands. brand grew young, accessibility, to Generation affordability millennials business we've and phones thinking, tailored expectations who native We their Our are. each understand in

care up is believe system, to the technology generation XX expectations approach make the in years, current accelerating we their and in it industry. perspective is that, build divide such how Skate and of experiences. of going These we share a an care. majority with the XX health health puck spend future imperative consumer consumers between and is for to building on where will the And this the distinct

You without your cannot the build the consumer focus. future as future

mental which continue and consumers beyond. give acquiring as in acquisition. a population care expertise for us strengthen we will differentiated to health our needs primary address direct-to-consumer approach and monetizing muscle honed unique and have customer to this springboard a we to health their with care highly more more of take Importantly, and particular to marketing This we for

of expectation maintained platform. All Dr. veteran assurance training built medical provider leaders scale. business advanced as ensure and possible a partners, our digital technical health safety highest for the a meets has and our and and in-house Led for programs made the such Carroll, platform Patrick leading is by by clinical our been quality this that EMR group by

of years and favorable so solid business much vision launch. X fundamentals the characteristics to us since achieve in our just Underlying allowed & Hers, Hims

XX% growth has revenue Our and report plus. We of margin delivered plus in gross trends been of XX% revenue recurring excess of XX%.

today, care, and our maintain sexual space. monetization We team's a customer and primary platform a help approach have diversified breadth insights, revenue in will that portfolio, behavioral our this and including men's iterative health, and expertise leader our our durable of as acquisition are advantages us health. in position deep our The in mix dermatology women's

representative is I'm incredibly the so that an transforming part forefront we of to of care future industry be that proud at health of rely desperately In the organization upon. an of all closing,

momentum we XXXX. wellness, I've on as all in work health We & make progress of it have never XXXX and built to consumers the more to for update you to been Hers to choice and comes when continue excited our significant in Hims

Spencer more numbers. hand I'll now, And view for it off a to detailed the of

earnings call. our guidance going close XXXX. joining to my detail Andrew, in results financial XXXX you, and I'm on touch comments everyone, fourth for then our more quarter with Thank thanks, for our highlights, first and review

which was X increased primary XXXX, For Growth we $XXX.X fiscal by factors. of year million, generated revenues XX% driven year-over-year.

XXXX, up of in revenue from wholesale result to a new First, in XXXX. $XXX,XXX with our $X million was partnership Target. increased This

XX% or optimization. Our increase continued and XXXX product of values $XX, strategy subscribers as XXXX a product by This average through purchasing increased order driven year-over-year. our was larger was in which bundles result increased subscriber multi-month lifetime subscriptions. AOV, value, AOV from to

versus We leverage margin for throughout expansion up the and multi-month our a driven subscriptions, network of cost reduction discounting. margin successfully a increased shipping We by bundles XX% expenses was XXXX. customer rapid year, gross expanded of in LTVs in uptake XX% XXXX. higher-margin XX provider and cohort price generated product points and our in This

in X.X generated we base decrease mix million plans. multi-month was XXXX, subscription year-over-year. orders, a by This down our to shift In net driven X%

naturally grows, of As multi-month the mix plans decline. orders net will

quarterly are per orders versus year For shipped year. per shipped example, lumpy subscribers only orders X are subscribers XX

As increased in net XX% year-over-year by orders platform on declined our subscriptions $XXX,XXX. XXXX, to

our to We continue and large end services markets. strong for products in capture demand our

in subscriptions and X Over XXX,XXX our XXX,XXX grown QX. QX in have in XXX,XXX to XXX,XXX QX to QX the from to quarters, last in

recurring pleased in our plans. of We subscriptions, multi-month the are with and the revenue base mix growth

margins expansion year-over-year. In able acquiring analytics. year efficiencies tested customer our and the our marketing throughout data gross subscription reducing customer loss growth revenue against marketing increasingly were $X.X drive increasing enabling efficiency created to new while continued for driving increasing to expanding We an strong to cohorts. leverage, us by million through while efficiency to campaigns marketing on continuously versus of efficiency increased allowed XXXX. increasing by adjusted focused efforts growth we operating $XX This combination found million million decreased new and XXXX. that $X.X us We EBITDA actually and drive material cohorts, margin marketing The XXXX, and different audiences analyzed deliver revenues, valuable year-over-year expenses losses

merger began public Acquisition Oaktree HIMS. In Corp. the our under January, with we and ticker a company as stand-alone closed trading

January sheet the balance cash of debt. As had XX, $XXX short-term of equivalents approximately cash, million on we and and no XXXX, investments

We are funded well growth future for investments.

This have with common merger Class approximately consisting the B Corp. common X A million shares. agreement A of approximately approximately per XXX related Class XX Oaktree includes to shares earn-out we Acquisition million shares million Today, XXX outstanding, shares million Class and

equity million we expect in X to of outstanding, RSUs million and new XXXX, options March have and to to RSUs and In XX XX issued XX XX million million plan. warrants XX, under securities including existing potential consisting between shares options addition, million XXXX dilutive our by

we revenues XX% For the XXXX, of by factors. X increased was Growth generated million, fourth year-over-year. primary quarter which driven $XX.X

driving First, continued $XX, QX as XX% our purchase product bundles larger a our increased year-over-year. result in and multi-month of subscriptions. increased which the AOV AOV of in was success

of $XX,XXX our partnership Second, revenues our QX. was Quarter-over-quarter, a QX revenue up new million up wholesale the in with in versus million of million revenue $X.X $XX.X slightly prior of to result $XX.X QX, our increased in Target. as from year

expenses In to million the season. XX% was influenced X% revenue to shifted that of quarter-over-quarter $X.X events QX, of X% up marketing rates driven marketing budget revenue approximately in variable by AOV. I'd QX million by on due quarter-over-quarter, QX, in increased and $X.X versus in and advertising Target driven growth provided onetime into like was trends XXXX. awareness momentum moderated TV revenue quarter-over-quarter, provided additional in-store of our to quarter-over-quarter Wholesale some the some In by atypical to election Online we in that of primarily our radio presidential $XX.X response and in going provide channels direct million response, response not by QX. QX color QX direct build for negotiated our substantially QX. holiday declined like

materially strong of sequential effective, we we have of additionally took these This peak. our from campaigns opportunistically campaigns new lower our advantage in response direct January, saw ad increased and rates categories. drove rates, these QX our decline new monthly all Hers for investing their campaigns began been of budgets across highly Year-to-date, several growth. new Many brand. We including marketing

mentioned, Andrew are Hims in our also from acceleration signals sequential categories, are we we As our seeing good seeing categories. core and newer

make analytics-driven growth we As high investments we testing through prudent unit to marketing strong continue creative velocity to unlock our and continue growth given optimization, to expect economics.

at real driving are QX, healthy rates marketing In of return. campaigns our scale

to $XX to guiding in XXXX adjusted negative loss $X.X merger Note million. an from $XX.X QX negative revenues QX and resulting be EBITDA items we a will few are million a As million $XX for the that there million to extraordinary of of result, transaction.

related anticipate technical has related $XX final of merger to compensation two, final we be treatment million. compensation stock-based on expenses to merger range. technical equity which in approved the agreement, transaction, adjusted in been will adjusted accounting, million expensed the $XX the Depending be for million bonus $X.X added stock-based specifically conclusion, The per to the period. of to has on vesting fall back out earnout this between a of and million will as yet materially expenses depend finalized. and stock-based QX, added million EBITDA. accounting over compensation will agreement, amount defined largely will such been the the distributed Board shares EBITDA; First, the $XX back which will compensation, QX The for transaction. in All the the could be not expenses amortized which be recognized $X.X equity and as And

XXXX, $XXX $XX $XX year million negative we negative adjusted the the $XXX For and of and million full million to of between expect EBITDA losses for revenue million year.

are the million. end We XXXX at range both $XXX previous versus to range to forecast and of $XXX million our to of the low year-over-year up to the represents $XXX able take million high guidance end be our The pleased revenue growth. XX% revenue XX% of

our to year. newer are start strong early we seeing mentioned, signs Andrew As in the categories

driving and are meaningful for Our delivering new marketing campaigns in in growth our QX brand. categories the core are scale Hers Hims and accelerated

values, We revenue campaigns. our continue drive strong margins high to marketing unit economics with gross data-driven recurring model, strong subscriber lifetime and

year, this deployment. and incremental guidance invest are beat return, To EBITDA capital seeing healthy account. opportunities opportunities to with We've takes been these our return-driven into and our adjusted at in disciplined always growth we of rates

this our high continue I to throughout year. will rates to and and opportunities We you growth on return, prudent at of focused look be driving forward on and updating investment performance

monumental of transaction. all that to completing a achieved year, for year. last also want really strong I I'm last results our we thank financial delivering team while such proud

for XXXX growth, off is start. and positioned great to well continued a are We

With I'll to and call questions back the to operator. that, the it open hand

Your question from Instructions] [Operator comes Grosslight first Citi. Daniel from

strong a investments the banner year EBITDA in mentioned. I more the on XXXX that to to here. guide, little just Congrats want those dig specifically into a and on you end

the EBITDA midpoint by around by lowering the and million. proxy So revenue guide $XX you're $XX the million from raising at the about

new Can to just more been kind a what million making? $XX revised that specifically So investments you're guidance, there. the a has little of you regard net on delta with specifically detail bit driving into go

across strong of the the QX, in up driven seeing we're Yes. for this the really opportunities I we're quarter, quick high strong of trade-off to I of in the these additional and QX seeing in really million million there EBITDA back taken where seems the think quarter, business $XX And for performance number marketing line our revenue strong for again, unit we've off revenue given of performance success. strong think launched payback the Daniel, of and all new invest given QX. We million continued lines economics across our to fairly payback and we're so and relatively a on seeing our million $XX campaigns, -- campaigns our that a for incremental really $XX top the like where opportunities investment, to good the we're of seeing periods guidance believe rates return, $XX rates periods. an we and loss year prudent is by guidance return in are

Yes. Understood.

on you're us can And provide that Any for can the and XXXX? year? Okay. guidance heading this CACs economics you into more on give you're LTVs little a seeing detail unit you seeing

Yes.

So our half What expanded pretty dynamics think we've of provided cohort I presentation, the those through have XXXX, second can consistently. LTVs I continued. share that for show showed that road -- the cohort we is have

So rates LTVs off again, return accordingly dollars back continuing the here. and have continued really the the guiding in for performance of we're first equivalent, off campaigns, marketing better, not we're QX revenue $XX confident again, we're based to strong quarter. drive to our these Again, if new think, are strong to delivering expand. marketing to in million And seeing of $XX I on marginal and investing in are million --

Daniel, base we health. as well add the that saw into expand that as of categories, prevalence really up our Hers categories customer popping existing hair to we just those quite intentional there high in on I'll with continue were really and so new as is loss side The Those last other, of conditions frequently. mental types year, dermatology in

unit organic lifetime expand essentially values, those So expansion to inherent take a this and lot cross expand advantage economics. where purchasing shape continuing this facilitate to compounding to that's there's durability fairly the in bundles, mechanisms of retarget, also able of we're

of the kind that to continue as ways also increase. happening current the expand underneath I that's of think, will those categories, we continue to So

Understood.

one a you There's the specifically the then say with can before different noise Amazon just now these about is into than from lot for And a anything in Okay. channel nontraditional been operating market? of coming me about competitive much last hop your which into competition and you. But but players DTC back with Care, there, the players, dynamic not days, traditional I queue. out

great a it's Yes, question.

the think model Spencer seeing I trends showing that just and we're so, unit right, really as a durability the of the economics, space, excitement and are and said. despite rightly lot in continued improved the

you largest step that when the traditional in I be in operating really realize that think consumers. and back, disrupted you we're United technology by to probably benefit States traditional of for the the has market yet

lot market, like so my And Hers or of Hims to will safe platform the $X talking there's in I opinion, be. think big decade, over market XX% it's of a about for winners, towards that next a at digital I there think trillion you're of a say a moving and XX% room lot that &

we're addition there's I think though, moats that created and in really I for this that, advantages us to defensible think business. things have in doing that

I largest audience trust direct building care, the and now, brand that, an the know our deep that's years we audience, generation, a right, spenders a on XX in generation through well. relationships health be think, exceptionally very that's focus young first, will in strategically to from young with resonating

year, going really sexual in like Our built loss, dermatology, possible that so to and to us diversification to that much has a care, revenue diversity. technology only right, of accelerate platform health, allows mental primary quickly, from of as we've so health technology that rapid scale something platform that last invested because been result having hair

to And pulling life acquiring expertise company, the fast, are X we're company's a and is exceptionally I I things This be and think, or team's old usually year the but defensible at monetizing think right? and iterating think, XX advantages, ability really that, I off X-year strong I lastly, see having in showing then cycle. and of

to more we'll a space a lot a lot And space gives and able XX those think in enter as all of I to X next players improves of of confidence this be years. the of leadership hopefully that so as things this maintain me role a these combination

Understood. Congrats guys. again,

Thank you.

comes Wieland Sean Your Piper from next from question Sandler.

that orders, your add And on I'll and from that's quantify, in -- here. my any the trending? report And congrats the quarter Can assumptions the month-to-month first revenue you in the both around a multi-month guidance? perspective, how

Yes.

road percent of over continue last orders to QX our So of our I like year mix presentation, shared orders. that in basis. XX% today, that in mean, think That guidance, to show expand. were expect we of had a to something well being multi-month we multi-month I our has our Within orders continued percent we're increase. on XX% back

just really and option from customers I that think that seen uptick strong organic we've in demand capability. for

-- a expect we So of increase meaningful the becoming and continue course the mix. percent meaningful that to over of it's yes, year, of to more a this percent it

that guess, AOV. a question as year? higher expectations a And that so but from go angle, Is different I around incrementally does the similar -- throughout well

growth currently increase AOV quarters. we than to AOV for next We last to year-over-year say, slower to Yes. the expect a on be I sequentially year. X continue will basis, expect

the of multi-month of subscriptions new I in think of sort really from product launch standpoint at a XXXX bundles end tailwinds had AOV. year-over-year the largest the 'XX, and growth the with the

that strong terms basis, to growth so the fairly our of although won't for the growth revenue we million expect bridge expect as year-over-year the is be to on in year, XXXX. AOVs $XXX for XXXX, to net think that combination grow deliver in guidance the strong in as of I a such as sequentially, the do So that $XXX overall within we those XXXX numbers, And year. will coming well, orders year-over-year X from million the range

the are margins the around on one just how guide? in guidance then gross is what question And Okay. assumptions last the --

Yes.

margins XXXX. we of be second line fairly So gross 'XX, in the expect with to for half

shift traction though, get there given definitely constantly We're categories. like our where newer in level, are for sort can a from mix across of we doing of price there areas a a We're cautious, standpoint as areas, these gross optimize at margins some incremental 'XX, think are that things potential we product additional testing. I cost stack. of high revenue

and So there of got takes might as continuing subscriptions a that some expand multi-month AOVs that and percent of to embedded sort be against we've continue to base. be the puts margin expansion larger

the second XXXX. guidance, current the the it's were in of in margin that margins half assumption So gross essentially, with in roughly line is where

Your Jailendra next comes Credit from from Singh question Suisse.

congratulations quarter a on And your first as public company.

So revenue your to first your better outlook. year I quarter want outlook understand XXXX full and

year up every sequential expectations just full conservative understand But QX I is why in Your you're not if imply curious run mean, assuming beyond how Just in keep seems logically, which beyond to anything run we there's set that step curious rate quarterly outlook quarterly you -- up so the much see case. for quarter. that us some like first quarter. why QX. unusual should Help rate about mind? your the should

Yes, sure thing.

trends We're Our our the seeing by the sequential newer QX sequential is strong year. strong year-to-date. full that driven entire last towards of performance sort is the growth core guidance seeing -- Hims business really we to launched we're year really by of the the categories in end from guidance across driven categories

see great come. seeing now the of If But think we've updates provide we those quarters I trend on strong they by informed our now really execution think, of and unlocks, of marketing job forward. in a performance right the number entire we're being of are we we'll is But again, QX couple additional think optimizing opportunities particularly overall guidance updates as in business. those just the the I if year the sort seeing that and carrying growth that I business, right And a And trends will of next quarters in the done across the change, accordingly. next in couple QX. side to provide

rate Okay. see can benefit And XXXX? some on your just QX did understand of sense churn then churn in the QX. continued curious, to If of about trend rate expansion expect from if much in you multi-month subscription rate? I actually you you how And the like do wanted to churn give us

Yes.

value, uptake mix is that monthly churn a for continued quarter-over-quarter trend down meetings a specifically investor number basis, and retention to for I have overall, in churn we and strong as last But that has that the has So that subscription trended previous sequentially will QX. in down down LTV kind in our I disclose. customers new a higher continue mid-single well. number position years digits. not is the through on share in over And churn is our are to can versus we've higher That of what improved of multi-month the shared us, couple we've of in repeat take And increasingly seen existing subscriptions. have base time customers, trend targeting our customers that in base as as: naturally one, becomes what

Mount with Sinai, question Have to coming volume seen last Health the you then Privia and give referrals my like Can and update And those groups progress Okay. from from you here. an you talked in much provider partnership Ochsner your health the about? systems us as to providers? platform being made

was urgent initiative & put set Hers to the those that we in have that On the to them Jailendra. that already Hims partnerships, needed in-person more care. a the customers benefit really primary Thanks, in with on order platform were of place

their those door iteration need front think symptoms. our partnerships the appropriately really the as through is is situation anybody the about the where triage to patient current to able instead and it on making of today that so of if doors, of team depending health system, we be sure And front really first that care focused that comes you

and so where and and like currently refer the work Sinai that that to populations consultation Ochsner patient others the is putting providers we environment. could us for easily partnerships an that so with feel And in-person an in-person and simply come Privia the really appropriate, are into in those we are that

and beautiful full life that the & benefit Hers. to they a referral really Hims seamless within all So have comprehensive in a patients cycle

standpoint So really geographical And those to a coverage the standpoint, the that's at country. from continuing it's focus partnerships the in expansion we're invest across of an that from primary current moment. something

network a of no matter So we as us. that to where systems like partners operate can the is, have person

next out urgent how or in is step, mentioned, systems benefit not them. you Now areas also for to that the then maybe with can care exceptionally really partnership we figuring or patients those is as offload

so And really do those ahead. year exciting think X that of something we the early are still conversations, or in kind but next in is

you I Or some it very mean of at it those to magnitude is can Are your is a point? still you Just off and early sense providers? platform this -- a give follow-up. volume? raffling

rolling see, and those relatively still early. out the can come we primary X. it's think as see of But and there. treatments come of all not do care really I person, then taken right just lot with in people of that think, physicians in them We're care I a in that and quarter most in be last

it's and our set and for so as that that excited person I point that's as needs. offering been really expect important broad really their wellness I skills really rely front platform think, is customers we're health triage, And a because and of about think something us us on consistent that set of capabilities behind-the-scenes they of

[Operator from Your next Truist. question Instructions] Draper Sandy comes from

to just market of on of I Hers of & what thought is then really that's X, understand months Hims thinking channel? -- I'm it? younger related you be about Is Hims then in Daniel's to It's Hers my separate step -- outlook. question. That's where whole to that on of would stick of whole through that's XX drive quickly traditional coming obviously ago, primary you that channels to channels to than I'm think the industry question and have this end competition, for really how and the population I those trying to care, the marketing more Congrats into think trying of very area? maybe we market and big are are just relates Hims really trying a year the care? incredibly first populate? normally to in to a the sort you sort us. a Andrew, would grow Or the beginning. behavioral & it's all my would through question to trying are Thinking you primary trying traditional out & guess you're of Hers and this about changing millennial what

Sandy. Thanks, Yes.

we've or that you color are there Hims the probably and Hers, about spoken fact for we've health U.S. about maybe the of conditions, conditions the XX XX of think of that talk pieces that. are the different system. When think these spend in map a I the of up couple I have benefits & on really the road make care XX%

about sleep, talking care, hypertension. behavioral primary fertility, health, cholesterol, You're diabetes, dermatology,

fundamentals great that us All underlying expansion for in make very of the have them business. similar logical that for

all comprehensive the fact some right? fundamentals And condition. XX-plus platform physician the same patients access are that dynamic. And treat on & they're the chronic like Hims subscription-based have of conditions Today, time, the paying of that for Hers where revenue things new offering, a conditions, these revenue percent the recurring to those are recurring is that the

their it pay per that incredibly which All cash important is percent which allows of and while safe XX-plus or than situations on safely, clinical situations, most plan, maintaining backside, gross affordable, a also and at $XX the most insurance these conditions can $XX in to medications, in margins. standpoint, continue patient's offer still from treated co-pays generic cheaper on in month, to the to are, prices be prefer be is us with treated

stigmatized. specialty the can think dynamics that things and are a on with I them lastly, safely we then associated all our these treat And lot things are There's platform. of

go them the of learn of next. should share And they're And kind so else data understanding coming us with. gives concerned that we we what you around in directly tell the excitement, then because what for frankly, use patients they from we to lens the and where

course prevalent like XX% demographic. something the hugely It is considered was had so of our the of step, horrific just behavioral core over suicide which health, like and And millennials in things shows health the of it struggle. a but mental prevalence pandemic,

that, in independent acquire we so patients direct also both these our of would customer of these thousands that and customers place we within there believe every are of top that patients of as as hundreds also And and independently mentioned, conditions for large strategies to of to And each lot then them of these a acquire existing we have day, a chunk go of and on benefit. channels customer. see marketing specific But an of base know Spencer offering. initiatives of we thousands

can as nice their to expand care else. come there's where from platform organic you dynamic they So the something really maybe this

that market, we market. are believe a $XX a truly dermatology combination care as and multi-hundred really it's that, is so And like in billion like both, offering, -- but just something as a offer of services, of investing just really therapy note of a psychiatric comprehensive offering that as primary stand-alone today billion-dollar we

as we its own So of to take and of go and there. from and business build own beast so each kind its speak, them,

to conditions you're go insurance. do after ]. insurance [ are deal to the X -- Okay. I a years next years? don't near have after ], really not say things over the at for guess now to or to X think, fair being, billing follow-up. going The related insurance areas competitive, Great. X be go markets a from companies going as [ Is of with to least partner chronic that where can the get is not have you're where to where And is you idea it lower term, people and you're I I people maybe point guess going try being with price more to part time

a and pass verticalization telemedicine we for able and system a we Ohio, price. cetera, unlimited rip digitally We've out the and built for platform, that access, customers the that really that treatment, offer traditional to out comprehensive can correct. with mentioned the pharmacy model. result the native we've we efficiency That's are And group, the the of got visits, so provider efficient health care EMR, medication, the in to as that $XX to much the $XX et doctor saving in care business cost

that using plan. care more And apples-to-apples it you with efficient system, the is more almost truly affordable existing the insurance health always than when and compare

on paying their and are dollars our putting use platform And still almost but entirely insured, are our so platform. customers to cash out pocket of

think a growing large we trend. So that's very

in the setting no really part, your coming off-brand pay pharmaceutical roll years, conditions again, we've But there's maybe And it for cash a model. medications or mentioned, insurance to as option. required simplified fringe generic options those maybe or is future the out where the likely, is point, in really most the for we'll

Your next Deutsche comes Bank. from from question Hill George

to echo Spencer, I'll in sentiments And the public of welcoming direction. maybe you the to take another this market. guys

if quantify impact You a trying can the of delta what delta kind the guess point And cost to the maintain the helpful. kind marketing the the versus -- versus is spend recurring reliance guys the expectations. revenue and you the on about you commentary I base. customer I'm business. stickiness little talked QX the spike advertising in would the to And and your spend on wonder in in base that that get of like of be the is to can revenue And any ad I'm the trying make to bit around

Yes.

more channels, relative we like try presidential tailwinds build really when radio looking So return period, versus into advertisers to more to of QX, right? up aggressive QX direct dollars shifted our at portion television brand in channels did during customer response awareness-based than channels, the channels holiday So to a really and fairly of going to material budget to in rather we brand-based compete wind the those QX a election, other what shifting acquisition XXXX. had really was we

mix that change there XXXX. was strategy build those to decent dollars just think you quarter-over-quarter, shift in going as I tailwinds a see So into a

revenue, that we your and mean, other about, right, is think the address I subscription question think our metric thing base. I To on

retention subscriptions over our these So over platform. fairly AOVs increased XX% It year-over-year. shared materially -- the consistently increased on we've Based base across consistently the have of during over We've have time. subscriptions we data year. grown our grew last got XXX,XXX over on subscription some time. the show, road

So becoming subsequent and acquire, cohort these Each we actually more retention are improving. and is that cohorts subscribers valuable.

future growth of large to of marketing mean, platform a of well I think have incremental fuel, against the XXX,XXX that So adding sort we're time. is adding to a positioned base base to drive very just I base stable right, And customers and subscriptions, to over growth.

and follow-up. I appreciate I quick if to, in everybody's And Okay. the to competitive kind environment Sandy alluded space. commentary. evolving could the of think that have alluded I a rapidly

get You started guys to reevaluate is provide we've a transparency can to come tools acquired, color how test any the in on that how pricing to I or last X the new I and more of have you model. companies guess you Just think of little pharmacy span way works? the price pharmacy given X there market, months, talk telemed go briefly kind vendors seen market. about that new

-- right in transparency investors hot topic is pharmacy pricing now. -- in think pricing with a I So pharmacy of kind

Yes, question. it's great a

there's difference. to, Canadian online an a Hers, notice cost And a for really to Hims the really finasteride, and not for a price think to of or, say, some GoodRx's let's say, pharmacy thing let's looking & Hims lot fact customer take, when at Hers platform $XX notice and first that I comes point pharmaceutical. I maybe say, will price would speak a in Propecia, compare let's that $XX the point the on a & equivalent to cost generic people I think they're single delta, situations, right,

educated overwhelmingly with issue actually an that get But are is struggling coming a of paying they're comprehensive about I patients and solutions. think what for set is to different they're

getting doctor adjust ask So they're coming, of doctor They're XX/X message They they're necessary. getting that video phone. that complete on treatment their visits. plans pocket. jump in their a them, questions, can can set as They or

single a but large chunk, As not not these A they're medications. they benefits the comprehensive of or lot can bundles. adjust think, I patients, the other very buying seeing seeing or pharmaceuticals only if are they're benefits, dosing

cleansers cystic acne formula we're and about, compounded not if clindamycin women for and pregnancy, say, their skin. only So just are acid, post moisturizers buying tretinoin also and talking let's but salicylic

lot spend a and think making valuable customers. that more of I something we is time to more So and that efficient comprehensive offering beautiful more

pricing we getting. lot sure and really understand that do what they're bundling so And of making associated people a with

not as really new beautiful as in getting feel not day know part customer, And it most doesn't people's sterile minds, a system, to well. experience. And both that this make on I format. every spending is And And brand and overwhelmingly, doesn't what Spencer an acceleration doing big right? built communicate is as It's fronts, team as this better on, think me you sick. offerings focused to it's as health and know we're the in we are it really simple feel because truly think core traditional improving a and rates real we just that resonance and as as this a cold, of brand getting unique mentioned, well think are how bundle the think something is I care I and that it and at of a is Hims advantage conversion categories are to showing and get experience like we've I categories

That you was call. our participating. time. today's last question at for this conference this Thank And concludes

may disconnect. You now