Hims & Hers Health (HIMS) 10 May 222022 Q1 Earnings call transcript

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Hims & Hers Health First Quarter 2022 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions]. you. Thank Vice Relations, Senior your may and conference. President Spitzer, you Investor begin Jay

and the Welcome Health afternoon, gentlemen. Good ladies to XXXX call. first earnings Hims quarter Hers &

and today On with our Chief well is, our Okupe, Chief Officer. Andrew as the Yemi Executive me Dudum, call Financial as Officer; Co-Founder

use are to market, information, and based as cause discussions whether Please otherwise. and Andrew our and assumptions the comparable a this are of as today's risk you presentation of related reconciliation refer on statements declarations. this materially. take reconciliations to competitive Certain forward-looking table you and subject to was projections you after result presentation harbor of financial could site statement events, factors statements. to through I directly hand and certain GAAP XX-Q to changes obligation in I We filed call, safe or cautionary Before results the our the results our that and in made future constitute over for to update on usual future current measures in legal relates forward-looking release available most regulatory publicly we take no to most press We information. forward-looking XX-K or In recently today's contained financial expectations non-GAAP risks and see that Relations actual any vary new as statements uncertainties Investor Web measures.

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performance to in for you financial all us Good resulting across goals, and XXXX all share facets a breakout with for thrilled outlook XXXX. substantially joining afternoon, we our of strategy kicked and long-term off that I'm today. thank stronger

live ever to This healthier all and a is quarterly more & performance we than our that financial team, Membership revenue ability consumer driver This our to we Our the of mission offering rate our is subscriptions, $XX quarter’s year-over-year. to ending and love. happier Hers growing on grew relevant largest their represents and before. and working we'll And brand centric Hims brand, growth XX% empower platform quarter are share the with proof Today pack company's past People subscriptions, with are company's growth are increase the in recurring Health achieved attainable mission competitive the differentiated this in lives. at XXX,XXX to delivering away over in unison, model. new platform. technology, surpassing customers us results believe the first membership a highlights voting today million unique break at more time believe strong history. adding core our almost All for of future of Revenue the quarter for million quarter-on-quarter, date, a wallets. XXX,XXX. model, $XXX a from our

adjusted improve our by investments year. relative enabled last QX to to XXX and of powered efficiencies, operational in margin EBITDA technology, Our us continued over platform bps

As allow towards to us our scale, we core flywheel believe in long-term leverage growth profitability. this while continues will continue invest near-term operational to to marching

proud of team. to we stop conditions our With the this be acknowledge I at truly something turbulent of. Growing itself market find is in, want in to and ourselves pace

the maintaining focus. and and you continued improving all defensible while costs, operational for outstanding. extraordinary We’re investing facing doing in so in is dedication technologies future parallel, Thank leverage

foundation customer This for well years in heavily differentiation and quarter the to infrastructure as technology leverage for and platform are operational the as come. experience the we capabilities. continued in efficiency invested initiatives critical These level, at

party affiliated verticalization fulfillment pharmacy, efforts largest now treatment One of centers. the facilities filling transition improved now with over operational or adjusted the These a from major and was our is monthly efficiencies This and away centers deliver of focus our compounding years counter. the majority beat third orders areas Ohio our fulfillment pharmacy has taken to to and rigorous helping EBITDA. Arizona, pharmaceutical focus of of in are and and

towards order well near XXX% march is track. fulfillment Our verticalization on

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allow focused to of quarter, deal accelerate to scale that term awareness a the and in platform, to on us we investments. will lies important deep continued presence. become At less awareness rate, brand. deep as continue In belief on quarter and addition broadening customer years the tailwinds core of trust a is brand believe our this omnichannel technology this to long it investments adoption affordably marketing our dependent over great organic delivered differentiators. focus one In we on key incremental asset, my a most our strategic past our and meaningful We

we benefits beat top This efficiency and exactly quarter, or adoption. line those maintained our as subscriber substantial robust with and were organic play saw coupled growth out

This synonymous X,XXX announced XX,XXX wellness. Hims the is of locations, with now quarter, in to retailers over the partnership locations. we Walmart, health rollout began one nearly and Across Hers and retail nation & becoming with the across leaving see store

and customers flywheel dynamics. brand helping daily, by people relationship to our millions drive unique is Our and prospective long-term seen of with experienced deepen

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value our continue seamlessness in will before. and demand solutions. seen. that pass limited, is and to to exciting only more brands and in deeply prices to mission Hers quarter's and The a empower to at to Growth for call offering, relevant It driving is alternative performance. to system unlike an services we in are discuss year And will during remain continue breath Yemi Hims This our for I customers and and our soar & traditional growing as expectations. and more than increase I've their healthcare feels has and customers, our of As added customer trusted change live existing we see COVID more and the been with believe choice anything towards the metrics lives wave than all point dynamics flywheel now, ever as business further access, our structural last attainable unique it convenience stronger pre weekly. any resonating us new pointing happier healthier our

our will outlook the as remainder for provide time of our insight through and quarter now year. the results, second Andrew. into quarter the as take further the well Thanks, to walk I first

growth. realizing we that back next the establish of provide continued has saw start and of The verticals will drive half XX%. and factors which million subscription of by the the million, first revenue, quarter flexibility primarily enabled The first that growth and quarter revenue the of XXXX. that in scale fourth of There's growth first revenue quarter continued in million performance early to that strong driven of a the quarter XX% per XXXX of $XXX.X is of scale of to $X in we to level drive XXXX a year-over-year reduction placed increased which the $XXX surpassed outstanding year-over-year of marks us underlying increase benefits from We've achieved was to growth another to Revenue wave that reflects in revenue. long-term a million. a online to benefit shipped to have from remained deferred increasing Online strong, base, quarterly Online of this by XXX,XXX. related our was $XXX. year-over-year year-over-year quarter grew subscription orders in XX% quarter XXXX our expansion performance XXXX. $XX.X economies

provides traction. Establishing with relationships. a newer the foundation our to flexibility us increased these to to see to categories greater opportunity value customer and continue our gain strong We longer deliver new foster categories opening base, overall deeper in

continued with Walgreens existing to increasing growth remains channel products in our Demand million. Solid year-over-year as XXX% with our partners, for revenue high and wholesale CVS. such wholesale $X.X Target,

HEB welcome place orders Walmart, that during as initial new partners quarter. this we such GMC Additionally, their and

plays feel margin a provides trust awareness in increase XX%, wholesale role that reminder, Gross of which business. quarter margin with for helping our the a online consumer benefits our As last slight and brand, to drive our channel fourth higher year. turn in a we was foundational

result and A costs monitor current date, facilities. ability may was in our we closely the our fulfilled impact the continue our utilization potential offset to Opportunities internal change. a continue examples of potential supply quarter. degradation elements internal our the from pressure across lower of few we To include fulfillment provide for structure. of costs our seen greater realization of far of structure remain product cost any efficiency share our first as lower macro in economies observed material through The emerge our that to increase not to orders and challenges. to scale XX% centers online navigate that to fulfillment We the thus trends have through if distribution have ability over that chain, margin in economy the may confident operations

margins compensation, points a from percentage efficiency additional EBITDA quarter complete to of quarter X%. over our online provide strategy from that increased to subscriber acquisition of combined reflects stock of this quarter-on-quarter. This excluding customer the Adjusted improved X quarter-over-quarter. XXX a revenue enabled to our build revenue out relatively driving based for XX%. a stock to points declined to trajectory. opportunities have SG&A excited and XX% XX%. $X.X to steady over percentage with channel omni current this hold later of marketing year. quarter revenue are later as leverage are continue as declined to loss receive as was points initiatives quarter-on-quarter facility When quarter per growth negative XX% percentage We When X quarter of compensation, the basis million. quarter channels it XX%. confident to EBITDA as from excluding based we acquisition declined SG&A Marketing Adjusted revenue percentage a percentage us cost XX% Arizona new will our percentage Diversified

position a realizing our as categories from across Several and periods gains this this to result the our reinvest attractive influenced cost, payback us As see of quarter benefit and that in benefits scale. customer we further long-term driving economies scale. continued portion will in We took we continue efficiency have greater of of attractive place expected to activities position. acquisition strengthening a cash feel

activity, million related Our paid million. from cash $XX from prior negative M&A payouts quarter of cash quarter. operations this hit to flow operations which Turnout this $X million $XX.X was flow off of are

operations have quarter will prepaid trends Additionally, first We've the million. and acquisitions officers, partners; prospective quarter. than operational apostrophe provides periods year, remain positive their attractive continued off XX% from at XXXX retailers, our longer incredible years; gains that include to have without the which paid revenue of objectives directors interest $XXX strong to earnout related against insurance for of overall which and liability remains a year-over-year fourth efficiency who negatively environment; customer acquired to retention our start. of sight subscription flexibility year; cohorts, These delivered outstanding, several we payback from of online unrestricted which that our and and continued less strategic $X two invest fact cash million a which flow some least gains efficiency at from the from maintained $XX cash of to be healthy in newly us and future short-term last a market debt reflect in also A a by any customers for the in investments. other a observed payouts additional to due ability balance an impacted is million with the and position range line to of volatile cash initiatives. maintain and providers

with by full across Starting increase revenue outlook to $XXX million, a for XX% million we to strong largely $XXX the to for guidance the these revenue driven second are line anticipating top our between between increasing of year-over-year factors, of XX%. organization. year execution reflect our the are quarter, representing We

below are X% ranges. adjusted adjusted which $X of We EBITDA expecting negative an will slightly the at margin negative revenue adjusted of million, $X of the and EBITDA reflect to midpoint million EBITDA losses negative between

For million million. year, of are we revenue our $XXX $XXX the raising million $XXX $XXX prior to million full outlook to to

XX% range guidance revenue to increase XXXX of represents new Our over an XX%.

ranges. Our for color provide $XX of results. like year negative adjusted at losses negative million, moment our margin at on these adjusted X% represent take to which an to remains EBITDA million to the assumptions a outlook negative across additional the both of midpoint EBITDA behind $XX I'd

quarter at to expect facilitate at may indicate our retention than retain an year. that scale that we signals for categories customers their at maintain marketing marketing of least revenue can engagement, unit app payback Higher improved feel have we a investment in second least that from We XX% as on believe less we is But from the start time. higher customer higher on period two been expected online to platform investments and our We overall of over have years. the least profiles. which economic emerging

of year. the of gain investment a the of half XXXX to leverage as of and from and marketing our investments the This back from made first half seeing XXXX. the expect second the revenue We in benefit is percentage result half the

operating as our half for shaping adjust in on is continue EBITDA cost exciting be we the structure. we continued expect to Lastly, improvement up margins to XXXX back us. of an XXXX gain to leverage year

pillars. We have seen success in our investments across each of our three foundational

Our base, seamless customer power our top-line further examples brand, turn we consumers The which indicators a awareness our rollout ability to consumer powers to And successful growth. partners, engagement which continued facility. driving technology The more early new and toward interest and awareness the delight to fulfillment of trust, our from revenue partnerships progress will result customer app. continue increasing continue few strength of examples in Arizona of delight mobile in trust. us our A confident enable launch our include with to the previously with then and lastly, new experience. leading mentioned to and of related flywheel are

anticipate that it X to combined continue to to these for Q&A continued Additionally, results. growth our factors, the approach our we efficiency and to call. adjusted us XXXX. over thank operator the that, to disciplined deliver X will EBITDA XXXX customers, portion employees, like will helping With by enable relative of partners to when to strong begin us I such turn the margins with I'd to points improvements, improve and

line Citigroup. [Operator today Grosslight first the question Instructions] Your with Daniel from of comes

that and on want the with seeing you a significant the XXXX next much initiatives that, the and dig the leverage mental marketing think constant, outperformance, guidance expenses. should stick then in I'm of due you quarter mean, and there? on why marketing others that built given growing on just have expenses second, I adjusted like is guidance increase this quarter curious higher keeping are I in rapidly in? that top conservatism going you newer guidance the mentioned then health how you're some CACs that both raise, revenue. operating want much is that I you're raise bottom-line get I for to EBITDA to and into versus but segments to you're How to after

would going think actually of are relative say investments we've in of see, as quarter. the I we see is What is categories that investments. what newer making, I we relatively cash seen that well some we stable enhancement the the prior do towards terms like other remain to as do that in

think couple to capital decisions think adjusted of minutes we these line have profitability. invest. whether invest a sight to how make right is the around on I now worth do spending we we or in just think What I allocation not to we see of around as it's where EBITDA

attractive -- now EBITDA and well payback they company then what capabilities scale healthy benefit margins, to we of internal of the have do given from do have. deploy And so for how be toward about some that at term and given fulfillment and And long-term position out we shifting or to think that this economies quarters. position position growth? the strong for capital, going both ability and as so not at us across which several we or period, the do as investments across long the have to growth a focus just an a revenue do in how quarter ROI would is looking sustainable zoom have that's being, lastly, when criteria, long the perform our three much delivered well even they long-term of look But we're do do basically how of they really for two the attractive economics, we healthy manner ourselves profile term we they

seen that as we've us the our far have so of maybe expand front category things, all well of additionally as as in us deliver to have And across help thus we ability investments those footprint.

So that's don't see you EBITDA some reason the going of why the through.

that as be opportunities We power healthy to profile, position see footprint. these growth as to well to for continue again, expect to able long-term a us economic

just to increase the isn't coming in from in health, marketing increase CACs confirm, mental sequentially? expense And an

seen long-term the to truly for ourselves the relatively portfolio again, across remain actually and we've is No, that CACs power long-term position and and stable, growth [outlook]. just overall

a on is think the for pretty think awareness, tailwinds the growing distribution flywheel trust a The or retail and shape we believed partnerships, of brand landscape Facebook, taking facing competitive and dependency been we've brand iOS it really I that really that lot that that Hers that in omnichannel the & the unique those the are a be, whatever channels, providing and are tailwinds I the element because people to Hims nationwide dynamic really that I which presence, social might is given us. deliver market it would, of is manner. think headwinds in meaningfully able and whether stable in continue overcome to on

flat categories. said, keeping expanded relatively we've as these CAVs Yemi As into

that's very that. but part that So of much brand element the to of focused us and of proud And on. is I something partnerships those think achieve big very we're that distribution a allowing the

as that think then and this help revenue, of And margins in may other able can impact the pharmacy wholesale offset cadence going And be on If you as that in comes through wholesale that or year, how us those margins? online? degradation some your Walmart come you we're see of sequential partnerships gross of the to own pressure online some Arizona? gross to will some

retain be mentioned see. have this to the we again, giving would those to and that of the start expect come We of to confidence what just normalize and earlier steady do We're improvements explicit half we really the hold into ability expect in large the do many see orders. effects operational we back quarter gross to did the we we inefficiency like given go primarily large the do partners around revenue margins place we relatively from do that the of overall healthy would that guidance So see year. the not board growth… we on our mix as But

Cherny Your of Michael next with question from Bank comes America.

This Mike. Charlotte on is for

there platform the just you they're mentioned that Could that going and investments the enhance platform? expecting experience to You the you how returns more the infrastructure made. consumer in you're share on

capabilities. us about the speaking Predominantly, the And experience centers, quality control and and really these customer. as to what we're fully allow what do well the the Ohio Arizona fulfillment pharmacy is is to speed, as compounding

breadth And as of a of that ownership so and we as degree to a where really bundles, in speed of kits over flexibility and us combinations world products are pharmaceuticals, and allows at and full customer. operating medications merchandise counter the and curation the well

that's example, a say delivered medication, patient for the imagine, existing to mobile being or app, to the their open to can or a next up add membership. introduce ability into offering want for You something new they the just a shipment

really with All verticalized a of can level is capable that manage. and oversee customization personalized only experiences that self and we center

to that's as key It drive the choice. give and to back empowerment them that us that customer differentiator a for of really transparency and so us breadth the we that to And allows continue offerings. expand

continuing And very focused we're that rollout. so on

as through on quarter This orders XX% of pharmaceutical Ohio XXX% centers, are near and to rolling to we of push as quickly getting can. those continuing but OTC we Arizona and all north

When And about then more you could a on HIMS competitive thinking you key view what just value as the its you're the versus follow-up. provide color creates areas right where just landscape now, competitors?

and people, that can we resonates, resonating a focuses in really of that conditions, ultimately, that of delivers elements, builds conditions, trusted some the I brand, the and think Hers conversations We so relationships the have a that Hims very really health that's to deep and provocative, emotionally really broad depth built synonymous how on with that and there's the breadth be experience. situations message with different from wellness, starts & platform technology beginning relationship. into three

unique very I think a is brand asset. that strategic

build partnerships to with And awareness of so you that and distribution lot that see us and brand time a trust. build spending

tremendous a differentiator. platform, and asset is secondly, a I think key the

onto have concierge application seeing organic coming platform. discuss watch this XX% and encrypted new videos services, that adjust physician, and that’s ability to this your your went you mobile have of treatment, all adoption of And customers platform quarter, hundreds provider safe access platform live to XX/X allows content level as and interested in. can to platform be relating breadth you delivering, onboard This portfolio services think, from of get of help that of a you really whatever of very original kind the is treatment market. might that in is added activate or with I the You value services and different what you unique

I think that. customers so And know

what I and And platform, fulfillment allowing with experience new is capabilities actually I a lighting customers word just think flywheel kind in to the on acceleration combination about the of we're and that pharmacy adoption is seeing it's talking the incredible, we're of of brand, really technology the side, customer that the us is of think that of continuation mouth. with customers. deliver

how kind itself And axis, ultimately, very that a the brand, customer into manifests platform technology, all the think seamless and so I and the experience. of those it's across unique

line Jack the from Guggenheim. with comes question next of Wallace Your

I wanted to growth touch quarter. the in a little on the bit

let's the with CACs think quarter, between how split creating being programs? team the about a should sake rates And two, of associated versus incremental as band are as about hair infrastructure investments content sexual made of areas, thinking it then the and to loss, new second call let's and incremental therapeutic in the the how For core ad emerging categories? we're health the those some part relative the growth call we

you the first Maybe second. that and half let take Yemi, the of I’ll take

as and think We're well of to that one the is growth core Yemi the seeing very emerging which raise as that triple giving us to improving things energizing the on unit there. the you're and continued robust invest emerging for both giving guidance about, I seeing core very emerging. the really from us we're seeing on materially is us you're growth seeing But economics as incredibly further confidence full-year categories. digit on confidence categories, the that's talked robust growth, the

us that think team, has revenue the charging really services But breadth diversity in year. guidance is those. strong wealth at in of it's both front really And the that giving think, is I of the so raising of the for hard a conviction think I of in that us opportunity and of rest and that I

I earlier be we'll in to referred the we are of invest to terms gates the the do what are CACs, when given category then category A And held of seen the we unit put profile a previous being we steady just as as and be quarters. around actually questions the around able primarily look. investment expansion previous, that we've relative over primarily, the think to expecting CACs relatively are that economic around, gates in for expands those it does lot

Andrew We are improve started as mentioned. our unit many is pleased the had that have we're seeing of very to economics, and see newer categories to

it And that so what those. does ability is provides us the to unlock investment for

related because the as customers the prepared investment to receiving many of a earlier of and of back in the a would QX but of that, I percentage as half the in get leverage foster the we expect do to just revenue investing not to that then we so remarks, to expansion in of referred start much be marketing over primarily with on And we relationship inherently business. We're the the a necessarily recurring really nature just transaction, quarters. year, mentioned

And so future we some deliver the the make leverage to QX us they meaningful -- investments the conviction it benefit that the they what to in as so that's of get continue can in course. that made will with starts conviction gives and that

of Deutsche with from George the line question Bank. comes next Hill Your

for to and of attention. and make contributor when space Does a the should companies been great lot we George. revenue? dispensing Maxi on It's be behavioral quarter. a to it with like in approach has behavioral to an Cerebral on There combined gathering behavioral Congrats increased on expect material focus you to a seem

and is don't and in that that particular just Cerebral something, I explicitly business. of into I intend because on those substances. quite there's that speak do have know can't platform to specific, controlled we insight to to don't controlled recently be have the the doing dispensing to of platform. lot have really not what in the prescribing relating I substances a clear, That's attention on

comes the And down and to to experience the it real so and price to way drive customer. when from the provider kind I of the value verticalize to actually side, to think the delivery fulfillment speed transparency is ability an incredible the

to with particularly that energized patients are we're XXs, There's every Arizona and and really Her’s a single more and continue have Mental really the when Him’s Ohio going brand the continues comes highest to huge this out, XXs need in that. week there So their coming by reports our in demographic, efforts awareness some and in in country. be more health XXs to to and people metrics of nationwide. focused it age drive

I and in a us help opportunity And a of people. we special think front lot so to of those very unique have

to see over growing one the of continue strong emerging the that XXX%. We of mentioned, contributors growth, I being category as

of large And a top big very breakout be and the forward. to so contributor and line was will beating performance the the to continue going think it a quarter contributor this we

with portfolio hopefully, that XX/X access to helping is relating very with and what content, feel improve to psychiatrists, early on health, category think, we're in think and mobile providers services, seeing I these people also of the breadth signals mental is the market better much but not that a delivering in the condition. concierge access delivering from need we're this whole therapists, that to particular already original to platform much very access that and So only standpoint I

quick just have follow-up. a I

potential launching margins Are to You half major or we accounting already to still Is second of plan target your year? in couple every to quarters. for it two categories one outlook the add the and looking no? at category about the talked improve the of

I'll take first half. the

So can absolutely, to expect continue that you cadence.

five historically that four of two founded business to one We to been new for the have since years we major on the cadence categories.

You'll QX see a number partnerships. from of announced we new

of is pain which an on One was incredible IBS. GERD, MSK, insomnia, for educational them with management, company Goodpath, focused specialty

excellence And continue well these provider which to on release can a we robust and the of to build we top then as so to one build which continue -- partnerships, to technology two. platform, out the

what to years. on that you've us us seen from expect can a you last cadence believe in I from the similar couple So of

mentioned earlier than have your the improve conviction we payback margins really new And that short do allocation categories a lean us of half the period really high question, to typically a before less What is to the degree and results investment, confidence model and where confidence then of fast that a to the year. see generally the year. with hold high very bar in that back ability we answer do the we I first, is, in to a given gives we start respect second in

the is XX% revenue the of element other nature business. recurring. is the recurring of The

continued the invest And deliver so in effectively the happens as is for users quarters may what quarter see to we value, start benefit one mature and we subsequent in the those future.

months, do despite the made over QX so XX investments last in improvement and see that point And the XX EBITDA now what year, we've a you fact to actually relative of between last margins.

expect which bar, categories able to we the we're investments that be might so margins need if to we to to able confident continue Difficulty]. we the that it [Technical fact And improve new despite we EBITDA continue high do hold to to be can,

Your comes Suisse. question with from Yong next line Jonathan the of Credit

Nate it relationship a seen guess Walgreens your the that the advertising that, on thoughts gone guess spiked to of had one are I is you as larger spent other volume outlook on follow-up And and and this, question driving or some from pullback. has I extent peers causing to CVS Jonathan. this? a seen Have see with this you and subscriber to your was how channels This is able on for you I benefits? this any in have

can So definitely tough the out It's take beginning. there. a landscape I

or and whether privacy the Facebook headwinds, of the or it with really changes purely into deployed a iOS categories be amount players seeing struggle from of platform, competitive lot just space. dollars the You're the

really think, I we well. quite fared frankly, have

very strong, much which sub relative As stable. our continued been you to consistent remaining Yemi remain quarter, year, to period keep on to know, with efficiency has marketing payback last we've said, incredibly one able

brand big of this a distribution, strategy brand awareness. omnichannel of that around is part building kind think the presence, I the partnerships, retail

in Hims what is strategic started company. very as a and has been is our think entrenched, and Hers I asset is unique we this brand, what from something is & launched day we believe this a values our about that business the we that consumer

rapid think that coming not I of differentiated I The contributing only generated I things really that platform space to gathering, were lot approach. content, are original amount so can And that pretty way adoption tremendous with a across a into the mobile adoption, that same of in And really think consumer these retail enterprise consumer channels, platform players a might the the have the DNA really offerings, businesses we maybe the lens. of of a be breadth initially now see BXB of do you that all is dynamics. think these the organic

a that's get growth, the breakout think think the you this us really membership driven it's performance see flywheel breakout much times I efficiency, in I XX%, think, growth, XX%, a XXX% talked markets, performance. think tough when strategy when for I about. And here. quarter And near maintaining part so I that's is, of I really competitive from key and And revenue think, that we very that this

see growth channel. board across our wholesale do in We our in the continued

quarter increasing in stores and where for in flywheel us from in consumer This more effect only in much and driven by Andrew that as many build our that we to other XXX% leading turn than the our the interest more interest see consumers had has that trust fosters start and retailers, channel in products then turn powers of channel, that a mentioned, online as partners. awareness these of at been year-on-year,

our so we be board And the the across wholesale to very and by channel. continue performance pleased

from Tassan line comes Piper the Jessica with Sandler. of Your last question

the the the verify way sort business be end works what first seems anticipate the could just it in alongside guys off changes you you that July? Can of [PHA] like expiry then of the any in And don't of can or to consummated of desktop traction the far traditional difference kind and your the relative just you customer customers? maybe app so of behavior that secondly, any in app about ultimately are on you originate in talk transactions the

the First with Is that I hate right laws, what question, caught? the you're sort, things of pandemic. talking ending about that

I that again, but to to the sure of in just going and I’m those are upgrade. there's being on returning visits able pre couple the way just prior would I sort change role to scheduled with person comps, So guys that works just that have nothing of the a issues know think, Difficulty], add making substances [Technical to your alongside business

where will of No, change and that's side. correct. from July operate kind that all dynamics the go back those way currently and We a in nothing our mid place when in

part substance is engage and change. will with. don't which question controlled dynamic, of major a So that w no, nothing great But

of tracking On the is launched, engagement. app asked, the side customers and They're had sell stickiness of and experiences, of providers, able most excited purchase. retention here QX, content, broaden to really of couple have thing really a watch we in XX/X couple -- update I'm start watch their to talk to you medications, range their added fully The original you about that can experience. so concierge months of hundreds value services videos so cross a and weeks we've to

it. just XX then there's this new already offering. application. high broad of app we're comprehensive percent seeing that they're couple stickier we're higher It's engaged weeks all It's for of And we rate then organically, a so this those offerings. this with set customer of done kind those really of of happening. and all coming plus of within this, solutions with patients our clear a just downloading engaging they're different kind of a take a is very that And pushing customer, the a at seeing a into dynamics forcing not need place, or very of And are

believe a going platform spending lot that patients the really is we to so future be this where And home are of time.

kind of of the as dynamics, to continue unpack the this contributor big the be pretty and a the improved was for kind I stickiness, this think performance of we one. will adoption quarter think retention I

a so to And are is biggest we where focused it's to so on of ruthlessly where This have my we plan points of is time and remain We the spent. it's we one a the this. is leverage time of lot of team's company, spent, think for it. focused a lot of continue on lot

call. Thank This today's further conference questions. There you attending. for concludes no are

disconnect. now may You