Hims & Hers Health (HIMS) 8 Nov 222022 Q3 Earnings call transcript

Good afternoon, everyone, and welcome to the Hims & Hers Third Quarter 2022 Earnings Call. My name is Lisa, and I'll be your operator today. [Operator Instructions] Now I'll turn the call over to Christine Greany from The Blueshirt Group to begin.

Good afternoon, ladies and gentlemen. Welcome to the Hims & Hers Health Third Quarter 2022 Earnings Call.

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

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

the be I on Investor begin. the and that, investors.forhims.com. You'll turn over archived call, for And webcast webcast link Relations Andrew website call at find will the to now to a After the XX will this to with website months.

trusted results continue health than our wellness I'm us you thank quarter mission to predominantly which and accelerated growth. business and QX. our The reaching as Thanks, customer million. Revenue, XX%, accessible proud strong we everyone, foundation innovative all on subscriptions, Christine. online and a record a lay brand, afternoon, to more before. of the by the After share in half, another recurring trends driven joining power today. of to ever and make grew for experience consistent further was for $XXX continue seamless very Good technologies robust first

growth million straight For new X we the the subscriptions. nearly subscriptions, saw number net XXX,XXX, up in to third of quarter, sequential

tremendous scale, bottom impact We meaningful on are the had line. which a building

During EBITDA million. more EBITDA was relatively beginning modest a today, the we quarter, which exciting Even anticipates in to adjusted transition are the loss $X our guidance providing adjusted QX. is profitability

ongoing can it see have basis We The on and invest underlying is this gives organically across confidence to that us momentum we to and for growth. business this since been on gratifying continuing strength a materialize. path inception, the model while go-forward our particularly profitably of operate

model double not has strengthening down dividends our years capabilities unprecedented growth we results to of third the and for at The build by to During building and to to This world-class of The our model marketing date, us incredible scale expanding innovation to the Hims our increased across and growth & the come. will and consumer growth. enabled only muscle has strength of of platform is strong Underpinning are the subscription these is compounding pay driven to multiple executing business accelerating business. evident but speed offerings, us the transformational and campaigns who creativity on reach underlying teams quarter, continue precision. are was infrastructure. drive momentum critical allowed adoption our business, levels and from record our Hers with across

of of in a our and brand traditional marketing our in successfully critical been these technology XXXX. investment the success continue channels see continue to in part to and scale our long-term Each development success We of platform. has

front care clear there level a and product of drive wellness the us of think quarters space We we in offering how health ahead. as to tailwinds long-term tremendous and superior expect continue is traffic by and redefine own these investments at It about breadth in white individuals will value. their is incredible

we building we this we compound believe acted way. will day As best-in-class that we leverage key we From as we've establish And with equally X, blocks along over scale. foundation we seize many years. opportunity, have are building discipline harnessed a to can important, the that learnings

the X a Since key experience. and an Operation. dynamic and growth technology we environment, are from brand, company, and long-term model at fulfillment, with of may position least testament third mind, key the consistent Amidst first with a and and the includes Now thus in investments, bench our advantage alone, to at focus. Key are on or of and and execution others pillars: to Communications taking of we the in of our Chief success brakes finance. brought experienced our founding and continue fully focus these 'XX incredibly throughout in R&D, communications every hitting pillars This marketplace back VP growth. business. volatile strength. been third macro we our is on made expanding our operating one In Officer time we XXXX, far a hires when quarter in specifically quarter building our be top-tier new opportunities that foundational addition have we've ongoing a decision Fulfillment pulling our investing In elements of the we've to is support new talent to on the

environment our these uniquely Our the ability business to direct a our of win into in aspects of building of pillar of result this defensible success. each is challenging

now you on starting Let of brand. each me update with these, our

build of have brand equity. utilized was third all XXXX strategy and quarter The a the continuation awareness of to greater brand we throughout

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generate their further that and demographics relationship investments, focus on reach This year, deepen doubled audiences. down decrease brand. marketing capture new opportunity to continue extend we to high have landscape mind ROI significant a the with the across specific our people on opportunities our companies other have high-profile seized As have and we share, to

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During we initiatives to multiple quarter, results. saw exciting the some begin yield

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the platform ways to with are and technology. progress via technologies. now do to seek so Turning we We engage in more multiple continuously on making personalized our customers

we new note far the Hims platform & that apps robust, rollout on to early successful of the pleased Android thus in to Android launched on Following iOS Hers iOS our positive. we Engagement are been in on QX. is and has extremely response offering QX, the

gives to engagement websites or customers conversion are educated of conditions early with deeper be the through mobile on customers them become by apps, reads about to our and our increased providers, energized health and our wellbeing. been mobile day-to-day find sustainable to that with improves attract we place solutions have and serve rates a us their proud our for ongoing interactions these their also higher and ability care and our across personalize insights capabilities improve platforms. how We growing trusted engage it's basis. into an Whether Building to best

with platform connect our improvements points, operations. of which individuals the to we increases a launch experience Android well more meaningfully the service and the address more technologies. provides have questions. of of the the entry routing sophistication we're our able to expedite as their This appropriate These seamless of customer efficiency as expansion customers to With improved our care speed

technology to options that also expand, to support personalized of continue product This portfolio the Notably, intelligent solutions are our teams across our defensible quarter, to will leverage delivery new our building Arizona personalized treatments, investments. these As further groundbreaking integral care. the expand scale deliver us the routing prescription our continuing of capabilities many this platform to platform. took enable help breadth categories. to and part and possession more of XX,XXX we great foot and become pharmacy, we on moved will compounding treatments should past into capabilities We're which square of fully conditions an build care and

expect we marketplace. more the number can the proprietary we be to deliver to this us an result to expect of You sticky increasing kind innovation, of see And when end customer. a bring products

our experience. at now Looking third pillar,

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that a Hims key This a strong a platforms and Hers. developed perspective. which platform care. well those to attract physicians is community digital regulatory as values enabling care number to to how health have brick-and-mortar & operate from we as our are us providers We quality within attract from health clinical both There reputation of factors the other medical

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be in highly able We in defined of help will with basis. and brands, our continue individuals I'm a targeted number clearly continue experiences, the to of goals daily growing will to technology incredibly we mind. our to on proud world-class investments and are invest

are will benefits adjusted to our and guidance now revenue in momentum raising and scale seeing year the and become in more expect who us I point and our have this million the beginning company, This continue the are a young we us forward. propel business be $XXX profitable realize, as Given to eclipse for to we teams couldn't XXXX and us of in QX. we to continue EBITDA gotten is gratifying appreciative this

and I'll call outlook. Yemi our on details turn over the Now the to provide discuss financials more to

for cost and in of third Thanks, million, technology the structure Apostrophe growth grew year-over-year joining accelerated through by of an in color third year. Andrew. thank third that into brand, today. second we everyone, to of representing strong performance XX% despite end $XXX.X and the Revenue our to lapping acquisitions us the pertaining last the execution quarter. in Health are and experience, and to year. additional continued close our remainder compounding and Revenue resulted I'll investments Hello, at now second providing quarter acceleration start the momentum for the our transparency and the quarter. growth of pillars, outlook additional Andrew's of across record customer you Honest of X-point disclosing financial relative comments talk and quarter the the performance, year-over-year our expand start upon quarter the effect regarding The of each

million online third Our an year-over-year the in representing primarily increase revenue the driver XXX,XXX, year. continues expansion driven our be platform the to from our Online increased of last XX% XXX,XXX $XXX.X to significant grew and quarter most quarter-on-quarter by quarter, subscription was subscriptions In third the base. of growth quarter. channel XX% to the of on

our was per This continue and such revenue our we prior of offerings longer-duration continue generated as in been brand the to our third success of as core shift platform the in subscriptions expanding the several scale. several million Hims users majority Sexual quarter and changes quarter. the longer-tenured to our primary This revenue user increased drivers to represents year-over-year in increase to well more was as equity traditional wholesale believe to drive of are inventory consumers of second continue and as well of building ability higher Men's of our per seasonality number the of the $X as purchases seeing million. While $X.X the among & revenue relative this mix. trust offerings Health the a over generated Hers on decline partners. recent our up We balance In are by our quarters $X trends last instrumental delayed product to XXX% has quarter, revenue to The the third user. Online subscription quarter. as adoption relative driven $XXX, amount growth, from

for wholesale expect slightly our fourth We to revenue quarter. in channel expand the

Third in confident quarter margins taken our This that the sufficient from to disruptions. efficiency revenue. expanded operations, quarter few online increased increasing of fulfillment channel to expansion avoid Margin of are a key gross we to and affiliated points year to any factors. mix this Notably, basis second our volume includes over pharmacies scale durable, supply be quarter-over-quarter remain actions XXX continues a traced and our remain chain gains XX%. our continued higher material and can in

This additional transparency our forward. quarter, to can be our have started we into filings operating structure, going provide XX-Q found in cost which

moment the three structure, diving of I'll additional take a items. how Before interpret our across dynamics clarity to line the around into to provide components cost

operations support management, support team, orders the operations services. First, of our and represents supply customer of cost and encompassing fulfillment chain

related development platform operation and of as of Second, costs our services. products the technology and development digital the to as new and includes enhancement well

costs other remain resources, corporate corporate our components and as prior The marketing to general such legal from administrative Lastly, of and finance, related unchanged costs costs. functions human disclosures. general

Turning marketing percentage a of and now scaling believe quarter. Marketing compensation, significant XX%, benefits which in build of towards the representing bring our expenses. was we as third in carry granularity the percentage is quarter portion as over revenue long-term revenue channels, additional on long-term which a went second equity. brand platform quarter. to increase was excluding as commentary XX%, incremental slight and near a new A consumers our line stock-based with investment of last the we new both to When

expect see such a to we in of to benefit digital brand required years. TV such, in of have quarters and investing coming we critical As and channels from the video. That mass our continue spend said, as the development hit newer

as in year. a at stock-based XX%, X% and shift expect costs overhead. gains to third slight suppliers efficiency and have represented the channel the the from earlier see pharmacies, in of the from and compensation. several revenue support on a development came We spend Historical percentage via stock-based greater result quarter, come and leverage year. of highlighted and scale as leverage Operations fourth decrease a revenue rates including the Technology of better product effects period quarter from fulfillment this this on and when in toward excluding a of excluding marketing X% affiliated our as compensation. represents second from last in XXX costs we improvement This both quarter basis point same

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this expectation long area may fluctuation in quarter-to-quarter efficiency leverage will be continue there over of in this our to gain some we term. that line, is While the the

negative our were points third margin overall as X%, Excluding gross quarter. continued narrowed cost basis operating the XX% driven gains margin the and EBITDA to impact representing was well adjusted G&A EBITDA points loss million. within year-over-year. improvement as the Adjusted of improvement of stock-based our XXX improvement We $X.X Margin quarter compensation, third costs structure. basis by quarter-over-quarter of revenue in was an north XXX in

to Our balance cash equivalents $X.X investment exceeded cash, comparison our million cash increased capital operations to in and quarter short-term million investments prior as expenditures. in flow the from $XXX

related fourth reminder, we in quarter the for to a from earnouts million activity As last M&A year. to $XX take expect

We This superior model business. quarters from our the ways capability of benefits a and is are driving economic several first, end-to-end to multiple the operations third efficiencies the powerful the performance across quarter. of and economies scale. is execution of identify that following: of the business the assess very It the about over areas benefits to includes with in result capture compounding excited

reinvest an those our a of to portion ability Second, each gains efficiency of across pillars.

with For is brand our stickiness. delightful in example, and and driving rigorous continue platform our framework. platform long-term in combined results. our and to capital investment of our are continued products in materialize assessed Each allocation new attracting Innovation development execution experience traditional against channels a a technology customers

All includes than scale and drive us key I'll to enables this long-term outlook reminder, the standards and walk benefits less leverage benefits investments. unit of year on from the payback enable loop. to economic rigorous to these a longer-term high learnings growth of With strong and to As adherence the for potential for ability context, while ROIs self-reinforcing a periods year. capturing X remainder through our greater that

fourth $XXX from strong to adjusted result both the are a revenue the EBITDA for As revenue momentum quarter of fourth increasing obtained resulted in learnings as of combined one adjusted $XXX This continue XX% as this macroeconomic we million performance, $XXX that throughout the have investments, uncertainty, for Despite year-over-year year. for third to We between Starting XXXX early million. year revenue. million, our fourth anticipate to outlook of to be and could positive to our with of between mentioned in generate for our EBITDA quarter, quarter result to the in Shifting outlook we full we if million full strong remainder momentum that to X% EBITDA the quarter, be with successfully XX% year, scale and of the we our expect of $XXX adjusted seen to the adjusted outlook. In growth have we $X will quarter for our in history. an revenue fourth Last EBITDA levels and X%. reflects of the highest reflecting EBITDA million $X of and million, quarter, year. the which margin XX% XX% XXXX. we

margin an reflecting improvement million X% year, represents the That X points. between year-over-year million. EBITDA full over this $XX resulted the negative $XX a at of midpoint, loss a For and in adjusted of

the positive that pleased are us year on to throughout We generate XXXX. path in the strong placed quarter execution has EBITDA of adjusted a fourth

immense investments to that to us, allocation standards of capital the strategic meet the our continue lean opportunity we Given into framework. expect ahead of rigorous

is we However, profitability our so maintaining compound. that expectation efficiency the from our can investments initiatives continue as do while benefits to and

of for a are entering Hers sustainable history profitable milestone. now see employees partners I'd in of results deliver an the in and thank way. helping to sight that, our and to to it incredibly to we important customers, as our the clear for scaling operator path of like We such platform With Hims us exciting period & continue thin a these and the over a I Q&A the call. an line outstanding will turn portion

Grosslight, [Operator Daniel Instructions] to Citi. we'll go And

quarter to now Obviously, guys. get profitability thanks positive. for adjusted would expect on to of year. you intend but had this my be top on you've it not a and balance to yet, XXXX growth how Congrats and bet be tremendous taking and you Hi a your next growth year guiding EBITDA line strong just thoughts know to questions. I you're great

titrate to XXXX, that of how kind down sustain positive much EBITDA you growth to sustainable? have For positive do EBITDA? is And

Sure, Dan. Yemi. foreseeable the going Hitting I'll to remain second This the profitable future of forward. for expect first, do question, we question the part take is that

or our opportunity mark a an generate new growth we in said, a do of moment that we go-forward have immense QX new With to history this where basis. us. profitability still ahead on marks will So -- expect a

see years. But no growth any additional continue call. greater we outlook viewing We'll do to as expect that that, moment. there's expansion so economies over the where a said, the of provide we to an and in we'll at profitability past that we're of XXXX the that more as at output, With percentage. And is, to not to reiterate continue historically given to time. objective expect to as least just we as efficiency, we're scale, from natural function we'll course get we've meaning to result some next do of rate certain what over scale, that margin this the a greater maintain receive benefits a XX% we But next the on giving commentary several really,

Yes. That's helpful.

at noted back bit first are are went further I'm your any a of cholesterol. Okay. opportunities these you you opportunities. diabetes, you And as in curious I XXXX were if thinking when out? sleep, public, are there look little those fertility, future Or presentation

that. take I'll

the health are those excited started and patients launched categories mental in some think actually Hers that Hims on we're by, we've dramatically. have we in year last of been I see & really the platform scaling those to trickle and quite through

I a from categories four exceptionally more. the digit, category triple three growing mid-triple think, moment, are robustly, to that at standpoint, we digits have or

and personalizing And think better lot our lot around a those investment And so that's think excitement those customers, a there's of within better products categories, those where customers. the is really expertise breadth I of segmenting today. the I deepening serving of

Arizona, foot we in new square the compounding investments remarks So in personalization. our prepared pharmacy mentioned XX,XXX in

you really think within year because where I out in types size of the and a just those initiatives lot of business those the at of we're those are come our expect which can innovation the focus. speed so TAMs and are And placing to new our growing product markets

hear Credit Suisse. from we'll Next Jonathan Young,

at further margin revenue do I the point? drive top the areas strong can it you this here, about is Or any guess, really where line you just other see driving scale just guys expansion efficiencies? given that growth and

the start for Jonathan. Yes, I there. Thanks question, can

look we just we with for that's whether to suppliers efficiencies, do looking as to opportunities end various extract think, mentioned, end through even we or negotiating for how I things additional do continuously mechanisms better.

mentioned immense us, is continue rather the question, objective that as continue prior to With continue to opportunity response not our our the to opportunity said, scale just expand ahead but do of think expect function in given ahead make you of can we an the There's us that. output to I of and rapidly margins. rapidly necessarily innovate more us, be to to as still have offering and that customer that's or a do and whether we customer overall form Over retention of generate better what the that higher We will platform experience. happen faster see come better do acquisition. benefits time, see in is around we expect margins we'll in the as additional expect to well of provide next clarity then more expand, what midterm cycle the earnings call. we and on as XXXX in

Okay. when just performing well of of, -- in Great. previously say, than about be recession, color anticipated? there you to the health side more a then accelerating are And you Any guys terms of Is the actually would -- possibility against we're backdrop. extent possible some very great. in macro thinking terms mental you this obviously benefiting that

Jonathan. Thanks,

really share, generally retreating, what to speaking, us a pulling market players opportunity as obviously seeing message, and the other powerful that competitors is I in creates we we're of take think, for it both about differentiated amount in offering mind that, a noncompetitors, the the are back have. share, market, disproportionate and voice

from feel services highly And we're your we're mental that of you conditions focusing to really categories how And I lives people's own your to how feel your a is in the how think the your health, a feel you impact how feel body, like despite are question, household. strength partner daily that so a in mirror, macro own you like you part really the in basis when morning, in things investing the and your right? on and place acceleration, These relation wake big headwinds. with emotional, you when they mind, up look think I of and the on fact

emotional really that to them, meaningful that of be incredibly impact high-sensitivity conditions recessionary really is And nature nature the So it's proving I that's to these think even of in times people. the lives. people's something

seen that the there's base so no really And concerning across we've business. of the trends

fact, an would suggest, In the the at all-time as is high. traffic earnings really platform to

we've invest competitive disproportionate I to place out compared that these position from landscape. of a come hope the in of amount we to of we so a and, the share where And headwinds strength continue a think, taken

from is next Our question Korinne Sandler. Piper Wolfmeyer,

quarter. Congrats on the

expand of was like on dive the there is growth just as then saw into expected you So that you of become item? just driving deeper to line bit into and exactly especially little that margin the early to larger even first, and a here takes gross you continue of the how I'd bit. And QX what mix? puts a business on of that sequential think a part then XXXX, starts wholesale much that parts to do the Can

factors Korinne. the Thanks question, for driving There's margin are sure. gross Yes, few a that the expansion.

mentioned, you between As mix the a related channel. overall to and it wholesale the portion just is business of online the

to and fulfill we pharmacies our you from see the scale, measures we what offering continue realize into like whether through all to we're a as said, Additionally, of to customers those also subscription, well. longer-duration ability start affiliated own there's receiving opt what is we gains just, are benefit or a opting couple things. as as to bundle is the across One

to We're mix, in largely, provide couple but line bottom more year. not seen guiding margin a portion gains what are of expect. underneath necessarily substantial we the quarters. margin over product trends gross specifics to next and even QX dynamics And I or top around have are the gross we say related last these of clarity definitely business. continue around We'll But the of that related to the the of chunk that more and operational is would going it on so a just

assessing market to drive the stickiness -- So potentially as opportunities down a to potentially make there result, to or to better, constantly which are push whether we're through will the even customer experience gross elements margin.

of did level just to a then some And mean and bump helpful. quarter. on kind orders. is XXXX? of the up slight this then of confidence just throughout QX this did your very in duration Can average you I value see value, due continuing about of part even talk of we That's a it order you mention

of is that think do continue? So to how likely much you

Yes.

objective the really of our are generally degree really subscription. the things is revenue I that would revenue is is correlated some duration to So that say the with think function the user, good per and per user -- what more around I drive

as subscriptions that AOV. more seen us what that, revenue substantial products of third result engaging of the generally also upfront will are see duration success is The really the platform. of element. the brand seen to So the what AOV the It's expansion. longer-duration how up two and users, invested mix the comes as And our then product on won't with is experience we've show mix and also drive the in those many we started just is overall have We per with, a expand. user. we've revenue user And they in elements, product necessarily overall engagement per

And but centricity of a revenue I on that, threshold to dynamics as the specific focus and a the business, platform in guide we XXXX, that stable user. least that, the consumer of consumer are more necessarily these enable so or in the AOV amount confident of we will a wouldn't think result given drive to the and to that per continue are that generate us at

question. [indiscernible] the Truist has next from Securities

quarter. strong a on Congrats

about AOV? you Following is the evenly I'm in time is step-up how increases. the up is last much that drivers breakdown improve. subscription? have there like split? guys you're retention on for driven How big give churn a customer like the of my to understand us talked is it around rate one how And on by sequentially on rate the -- AOV, you possible mix subscription seeing And product increasing guys continues to trying question to or multi-month is Like of much

XX like the Just retention this improvement trend. have of give what on over seen months because past of an you us kind update

of Andrew, if the maybe, part think I I Yes, question. can part And on the first first second can retention. that take the you take

I think what multi-month we is do duration. opting see around and users more more it for are the

the towards year. disclosed it tail think of I around time XX% end the roughly the last towards we that XX% or last is

in in expand more drives the options rolling Andrew, result some since the greater opting relationships to But is you platform. about think as And to want duration. is both more with as retention, AOV. you with that we've it And and investing that the gains sequential a mentioned, offerings that a business, what meaning then. And the additional whether pretty mixes, significant the take towards offering it one. way to folks driving mix degree, are would in say the multi-month to longer is as somewhat dynamic product you push then seen drives but have have We Her started in opting unison. a that to correlated, our also or also brand we've that, We're that's that, I investments health the higher and consumers of out the correlated more other are the both think, elements the take that. within seen mental alongside certain that to those right of And if in the is I a

for the question. Thanks Yes.

the of retention other the dynamics within think there's of amount each a core I just around is investment engagement internally it side customer profiles. tremendous and of

and their the Android platform application really better adherence applications personalize they we experience treatment that launch of it. actually engagement as built to that patient and protocol means and feel way at increases QX. for iOS So well increases the are way customize a as end to this really a the mentioned in in quarter of essentially a in Those the dramatically

We the throughout involves concern think, to access of that lot with intelligent be speed we're routing talked a fed and content, I spending as to any It such can easier So where provider. directed ease. is quickly life member benefits so appropriate area handled time. your an original so more person catered is patients cycle, about your this, and that content

pretty I in dividends pay we'll really think engagement high think, also I are to dynamics. And continue starting to material investments, that. regard these see So to

is you fairly And are so I people see. to also rare retention maintaining I think enthusiasm dynamics And as there's growth, accelerated more combination lot you that, improving funnel. of think we top the increasing and the and despite scale that and a the as hit of

quick on a Just margin follow-up long-term profitability. question around Jonathan's

and the there you're already give an Clearly, subscription. a changed any profitable there. couple to to you there. years seeing targets of had trying wondering to understand to as drivers get have came from your import long-term I'm in been margin you way public. internal Just expectations path get back Maybe if changes the if thought in or when have step-up multi-month any those benefits in pharmacy, us More timing update

and willing you're maybe So in to sales more marketing. invest

if some Just you spend to changed of they get building can curious in past couple blocks years? to time margins. on the your long-term the Have

Yes.

of on. evolving, it's journey of a complete that. a robust think process right multiyear pretty in and refresh now thinking I in We're that we're doing the something constantly

early What that the is that So levers around XXXX as further new for calls. around in evolved we've the we'll specifics our expectations dynamics in in the provide outlined earnings the the will clarity is pull, have prior call are short as would next more what year well QX targets. intent, we in answer midterm we do

from Cherny, America. comes Bank Michael question next of Our

celebrity to nice a of get announce of terms myself who trying going I'm to not out in Andrew, on is Congrats to in going quarter. the figure 'XX. ahead that you're

obviously, I to celebrities questions, has. lot on some been apologize some the But would about love versus there's it's rates think think of know, it on the an of been However, the other to touched targeting that don't you if especially dynamics like I areas, fluctuations a perspective. detail. I other ad from relative of how

you that the go-to-market else category make to relative you anything time? of dollars so over differently Have And in dynamics. of components, terms terms in your conceptual forgot you the strategy, seen allocate

great a hints who work And Michael. that's is. But it has really question, team a you lot on Yes, of I and give already. won't great we're done any the excited,

scale we're these and of this of in actually awareness strategy about are regard point brand really education Yemi I about conditions, think prepared options, the at I move briefly to dollars and stigma at long-term this needle orientation the equity think the of solutions the with where in the brand. a able the meaningfully brand to to remarks, talked awareness. is invest and the And the here,

investments. lean big economic think, that see a more seeing think to think us continue are the brand because impacts you'll real part is traditional so we I And actually awareness. And of those heavily of I into what I is considered,

one on I and perspective orientation that those where are think investment those we trade-offs. I But have are I is rigorous the the evaluating here from a seeing policy And and of we we're dollars. think a warrants long-term think a business brand constantly them. perspective benefits tactical

placement us really a think Hulu. that with high-visibility -- I the do They're in more did manner. pulling powerful weight see NFL their they're so in just really with of you'll this quarter we really work as and And high-impression,

flex muscles the channels And this portion different be the to awareness you'll so across of prioritize us high-intent brand coming the and consideration the will as we us but brand in that have large continue to equity of the think gotten quarters see mix, country. some new point the a geos long-term I and in

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headwinds, and that seeing has and has I the across I get opportunities we're of getting technology of opportunities and we've even lot we've a with where bigger. the been ideas scale and the to off consolidator have come great Yes, I the industry. that team that that and that companies natural but had a we're the the And the show and great reality, ground have desk. strategies, them. natural them recessionary now always brand maybe built a obviously, that's think type are I Yes, think consolidator one also way that in operated think been and definitely our scale to up in think, great the dynamics yet

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a M&A. And really so there's for just there's us when bar -- comes to high opportunistic it

keep open. disciplined we there's teams we'll to rigorous and our I can. investments there. a and think so definitely we're eyes And think as of be lot out But as trying We great

coming despite to high will so maybe we'll the deal years. that maintain And that flow focus maintain that bar the and in continue increase

Jack next Securities. is Wallace, Guggenheim question your And

Congrats strong on another really quarter.

are last to like follow-up investments shift, the it the, business. getting be shifting just out, to -- it it fair to a And the some that seen? also pointing year, growth looking we've of say of the as scale the it a sounds the Just to -- as going wondering but -- dollars awareness could question. larger CAC where incremental you support on there's CAC underlying to forward if becoming higher are we're into Does able more platform to like level next bucket ingest on the sounds you're growth to is outside is of a a dollars

the Jack. question, Thanks for Yes.

was the dimensions initiatives marketing the This I development new fact experiment variety host as year, to that across we mentioned, a that and channels the weighing in mentioned of constantly the throughout our long-term called brand, whole as out started Andrew think, step-up of that that to the wanted we're you year we we as with of see factors. continuing behind mentioned, one of thread. really see really on in to success, pull and as namely, reasons

fulfillment. expecting the around of the the of marketing spent to will do, make I that some will We bucket. think see time that talking of some the some innovation you even work outside product on investment us we're go

And and attractive looking ROIs very different so realize do of what's footprint just, combination scale elements the our across of greater expanding those as relative confidence to benefits all see leverage you have to to we're long benefits others generally as look meets we just in of that profitability happen what put we'll really continue from the for, capital so think really, to we framework path well to I the the shift being these allocation well propelling is that investments these a the variety different investments as investments, key say I and able the we economies started And that term. that's that to in the periods. payback But things, the also of maintain to come while from reasonable and that that continue increasing again, would year towards marketplace. we'll already this as has that

XX% That's you. internal And then about we're capabilities, fulfillment R&D Got in fulfillment the at the thinking quarter. helpful. and

Also, big got about puts the impact and globally. up price margins transportation like the and the we've has margin going been going It it to forward. shipping. energy this on a gross takes look thinking but quarter, of Just was different structural didn't

going trying takes Just forward. on pin the the impacting some to number, it exact of just categories of shipping and and more about structurally of impacts percentage, puts different of in-sourcing potentially not necessarily human an the capital to that thinking production, the health, higher about such think to goods but trying as mental cost cost

it's Yes, think a I great question.

off that namely weighing can get improvements are stickier. make I what experience think point generally that customer we we is to around this at just to the continuously

is efficiency margin extract greater benefit. as margin around pharmacies retention, gross is to benefits expansion directly to gross around really there both and an just control more around which in behind as lead And trying such so our investing the also taking will customer as from rationale but experience, well things expansion, the long-term affiliated

get start leverage as business, overall the the a of just suppliers of that provides offset is some is you growth think able has with I that do doubling many think right, pull offset the assessments those continuously well the other come again, I to that. the been degree how of conducting the there ecosystem. costs been lever, for are ability to negotiation we've have we as What well inflationary reality efficient as lot levers have other through into year-over-year. that to operation The of to given more as, almost

are will of pressure that mechanisms because gross that we we of levers, as the we that and experience, And a well to as other benefit might so the experience. that. customer to assess relative levels wall enhance to around overall said, the in have investment With constantly we're improve other in customer cost the margin little might longer I gross bit creep that just just come retention near-term currently of on similar ability would overall have there less better say form our the offset concerned we be missing to margins an face conviction

so time this And more that we're been considering than point in the that's at factors versus far. to worrying able largely making, we're we've about thus usually the offset trade-off macro that

Bank has Deutsche the from Hill question. George next

last Just pressure. curious Can it year. the It's disclosing give Maxi to update us on inflationary specific the are the retention. for mid-single digits given behavior being George. not guys My where churn in started churn trending about if on talked you now? you consumer related it and question know an I any is in is rate, rate but you you seeing changes

generally our seeing Yes, strong what the at we're that the I Like is in fact we element pace. -- earlier is the success come a we to even very see the a consumers, on platform newer what the think year was highlighted see What -- of largely to guidance cohorts, form ability in you XX%. to to that's long-term ability what maintain of as showing up top ability bottom well the be retention would do or our north of that. in the the is line as the the critical line

see investing factors -- gains significant such product, improving is start through and as our a our you one in expand in addition customer as to the as actually on of per And retention so quarter-on-quarter. revenue to customer most focusing one variety the well quarter-on-quarter. experience of This of

we as so per of platform more generate stickier. are investments, the starting just result, And user. become to as we're overall revenue result seeing a And these a

We'll Securities. from take Joy our Zhang next question SVB

a great on Congrats quarter.

the for the of one side on question Just Hers me business.

your say But on also market adjacent that recent that to call from that it, in it's a of First mind, retail a to time, e-commerce that the play it's means devices of removing moving and you same in health I crowded brands all, women's company the, I stigma you're let's see pure on as side. or a small special With of the likes fairly you're with launch want at that what for clothing telehealth in. a consumer the more comment lot competitively women's can wonderful you

Great Thanks, Yes. Joy. question.

services. I great of I it for health that wellness consumer-centric the bringing health mental which frankly, think specifically is something operated we're a lot categories side, excited the we've has offering a the And from across is really and about. the similarities access on point beginning, Hers think, forward in

best. collect, how the the So information it's engage in business and providers, are will And a in medical possible, you that point, with is right? provider. provide ultimately, connecting provides, what they reevaluating marketplace they patient expertise But as maintain way their entry it, that core so relationship we itself way that's how always the We the a consumer-oriented that right? the every do with questions we us to

so different side. we from on health no side what do the that's And mental Hers the or

both specific I in and combine think, depression that to also talk giving that we've across nation, actual ideal but particular, in and near normalizing widespread of you that offering, circumstance. are that are brought really the then destigmatizing and basis anxiety can psychiatrists same-day a unique the access market something way for in on or within couple your fact to is exceptionally days an like things therapy a medications individualized that therapists

of take insurance. average, to don't that are to, can on to months take those hundreds dollars to months even so It appointments. that, Most get patients And make things cost access appointment. schedule

near really from really frankly, a an therapy is wellness on the both think all to mental landscape, taking providers that's is And one well of affordable big why on part access few point work price that done, of think across and customers the that despite That's with And the seen I a think it's the real is medical delivering, about, standpoint, of a the bring I spectrum care. differentiation that's place. experiences in standpoint, that's we've real-time still And we're think as and at categories, market I expert that right? the scaling, just I being talked I from really has good to think, the a of robust growth. the ability why one think special across so offering. health as business side, that And medical side talk as psychiatry expertise are I incredibly is

back hand management the At additional this I'll there for time, any Instructions] conference [Operator or further questions. no closing to remarks. are

everybody. Appreciate holidays be Everyone, you your next up and Thank for with we well, in, forward the results. dialing soon. look quarter's and time, coming happy chatting to

And your conclude again, Thank participation. does that you for today's all conference.

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