Hims & Hers Health (HIMS) 27 Feb 232022 Q4 Earnings call transcript

Good afternoon ladies and gentlemen, welcome to the Hims & Hers Health Fourth Quarter 2022 Earnings Call. My name is [indiscernible], and I will be your operator today. At this time, all participants are in a listen-only mode and please be advised that this call is being recorded. [Operator Instructions]

At this time, I'll turn the call over to Ms. of President Vice Lopatto, Investor Relations. Alice ahead go Ms. Please Lopatto.

the Good XXXX Health Hers and earnings to afternoon welcome Hims fourth & everyone call. quarter and full-year

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

legal among and presentation hand of on projections that are things, results in over to this of results forward-looking market, regulatory remind it cautionary statements competitors based vary and I cause could subject expectations Andrew, I future harbor Before to our current and declarations. materially. constitute actual that uncertainties need to other to you safe Certain statements and and risks made are

of obligation any and changes update statements. publicly events, of no Please this in relate forward-looking assumptions take as or call, for forward-looking our reports to risk XX-K information, a filed new factors most recently they otherwise. future after We discussion result a see XX-Q statement whether as to

have measures. Relations website presentation, in most available related Investor our today's information. reconciliation measures We on financial today's reconciliations press non-GAAP to contained GAAP the to we directly for the table In and you release refer certain comparable financial

at webcast that a link existing investors.forhims.com. a Relations for new serve resource have both hope You'll find Please and as investors. we and will new Investor note, to we the also presentation website created investor a useful

call, After XX this find webcast for the presentations. can on be You this and archived website, our relations the events will investor months. website on under

the And with to I’ll call Andrew. over turn now that,

our and to today & the on us. for be share Hers happy our XXXX I’m Thanks, was performance Alice. perspectives review a Hims joining all Welcome with to you year to and everyone future. transformative

X This is time headlined and finish visits subscribers report the company of to us for inception, our an a million since medical million, EBITDA to by and all importantly, than more history. and our an year, fourth the pleased incredible as are revenue XX quarter strength that in over in company's cumulative the of We million to the XXX annual record for serves a moment approach. exceptional profitability first adjusted to transition testament

ourselves find and believe awareness our stronger. have of never We the point benefits and at in We an size which scale. customer reaping brand our we're loyalty inflection been

Our offerings and clinical and been enabling and platform excellence are anything never product and in unlike efficiency have today. more market personalized expansive insights the our scale

bar significant future. Even after these this driven better aspirations, world we’ve quarter all by commitment than ever disciplined This within the is teams for our mission organization. company's high the across approach is before. to In record the health power through great of of essential and for the relevant aspirations our we to growth, fact more breaking execution that extremely an for customers feel set help

every where customers Hers. unique this experiencing deeply being fundamental on can household moment hyper we on-demand price beloved part is in taking because we and our mission power level, expect too in delivering leaps This transparency. a every is Hims country. By This enduring are We're continue history, the and towards a of personalization, the at goal access, truly personal moment & a customers. of of

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Revenue, to million quarter to Efficiency been the our was have XXX reaching a of strategy $X fourth online subscriptions, record toward enabled predominantly adjusted XX% first quarter. investments profitability, year-over-year our recurring quarter. the achieve driven have fourth and which and by crucial million a us in grew in which was disciplined approach EBITDA approximately

strength combined platform. forward of unique The basis, profitably underlying scale our continuing the with our to ongoing a us across velocity gives go while operate opportunity to a model business on

us Our targets. our give robust certain well elements and energizing, to of for outlook XXXX. to financial a execution to team's on alongside pipeline exciting speak longer-term deliver those us positions focus innovation Equally confidence the

X.X annual deliver to trajectory expect of million targets and the least strength These of the current EBITDA. generate we at revenue at on and are of XXXX, billion business. By adjusted least XXX based

to Our the and them of continue ladders focus by centricity will up. our fueled a putting by which success initiative is on customers priority center relentless strategic every pillars be do. focus investment, to key consumer powered we on everything at four This

respected Known trusted in country. First, building and every brand. in a household the

developing efficiently a customer platform deliver recommendations improvements feedback. technology Second, that can with perpetual leading world-class through

And excellence and products with personalized and every clinical innovative services. fourth, delivering ensuring each Third, patient.

world-class our expanded drives You'll customer look These with a feel. our It four powerful a now This in decoupling pillars and technology natural innovation. brand, evolution growth pillars market our we and for starts scale. underpins industry to that redefine as engine. is work create our notice leadership experiences demand and trusted pursue and flywheel how us we've which

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the helps customer services innovation products insights and shape In [indiscernible] roadmap delivered. of this and the addition, ultimately

collaboration the the and some our cycling supply an right in pharmaceutical back of available clinical the bodies, brand. All partners anything of to in with this, and unlike experience partnership specialist, leading fortification delivers trusted chain market,

journey we an have The focus ongoing in put the made we four our are blocks on incredibly the dividends. paying strategic just building growth throughout We proud six of are we've decisions in built company place, pillars and our years. have

With across society. are with trusted to continuing by ahead, households we and brand, our up many we our individuals energized whole relationships pillars. to culturally initiatives opportunities most and moments relevant available in Looking by across deep expect awareness show and the develop these the expand planned

recently, to Most ran NFL named managing campaigns during who the depression. partnership we her playoffs profile up Bell, and Hers Kristen journey with high with a teamed share

and that relationships. continue new many work these to empower deepen have underway better consumers We will initiatives this

to our best-in-class for customers care deploy tools leverage to leading unique As access providers. we delivering our platform continues world-class for and our scale, will to technology insights, our

a made Hims to equivalent accessing top the customer's learning. minds collective through Hers and & is world of Our the specialists treated across to being through is power provide nation the vision possible recommendations machine each where timely needs, review of the

Through have treated. potential robust that to a which and our medical products the of to platform to remove patients us new a subscribers treat love. advanced power XXXX, bring of portion from and to generates a that consumers, innovative scale personalized visits, insights enable that deliver products XX be yet million will we services wide over of ways pipeline million we currently cumulative and access Throughout will customers barriers for feel

find the We seen towards health ultimately us Mints XXXX, which in This great. excellence are Customers solutions Hims, launched offering important to to with Hard needs, of and us. by first platform. is month in to has come interest feeling why so its pleased wellness our to a is the on their strong newly rollout first clinical path is

everything platforms on team our Today, in-line XX specialists are that HIMSS providing at ensure advisory we have we providers HERS. over quality do care of how and of a the highest medical with

have augmented bring on We capabilities hires. our C-Level further to clinical two

medical nation alternative patients that from access Chief to Chief or a to come Our Medical Officer whether quality platform be and groups the across to through Pharmacy us ensure and us to an via our recommendation high partnerships option. care, Officer our that expanding with have

we further standalone strategically initiatives, advancements will us a in this believe flywheel continue leader a towards At propels Hers to path down Hims laid distinguish & profitability. industry. and Together, growth as the these

than today team by executing better I've is of of the any team is working had All made this privilege with. possible that a

are each people and this talent reflective the Our quarter's greatest coming year's our of employees. and this And our performance of assets. of focus are ambitions

earlier, the future about mentioned is employees, so the our our myself, is including so customers. and are of This passion are I energized commitment we ahead. reason many strong As and why

are We phase you on update our of next excited to growth.

And performance Yemi with our that, to to it I over walk will of turn now and outlook. details through financial

This performance. by joining [today] metrics the saw us and Andrew. start financial for of I'll and in year. for our & effect longer-term record was additional materialized upon [ph]. newly incredible finish into our that Hello XXXX goals. disclosed year our the performance, Hims Thanks, XXXX guidance [concomitant] color [ph] regarding providing Andrew's comments including and a into you strong investments an Hers culminated expand thank for everyone

several fourth drive In to up momentum well as quarter, million. the XX% of of for hair Revenue offerings. from offerings as emerging XXXX our relative we XXXX, profitability. strong our revenue across was also Fourth to EBITDA such business, our as while loss, our exceptional quarter XXX.X XX% saw and million, year-over-year Throughout adjusted XXXX. first to established men's we XXX.X health delivering sexual quarter continue grew growth

XXX.X online our year-over-year million. of fourth revenue remained In our quarter, online driver in channel throughout XXX% XXXX. primary growth the Strength the to increased

million. For increased revenue year-over-year XXX.X to the full-year, online XX%

is channel by driven online two our levers. in Growth

first new subscriber and which is efforts base, of subscribers our retain attract The influenced is our the footprint them. to by

engagement drives per our to ability second The is increase which subscriber. platform, more the revenue on subscriber

set users the evolved feel conditions, wellness will measuring health has holistic increasingly our the relationship over Our we a to the with across services customers. of enable our ability needs. diverse platform years to to of broader have users multiple offer to that elevating solutions a the set of We importance and

subscriber and subscriptions an we Hims disclosing holistic average going subscribers & basis a engagement of with growth. metric each the quarter, this more Hers will this drivers quarterly platform. of number with with visibility our one forward. on combined more provide who Subscribers the our or is A platform online of monthly Starting generated are per individual greater is underlying into revenue on reflective on provides individual subscriber when the

XXXX. In quarterly an of the subscriptions count products, growth innovative development the We platform going We experience. grew will overall fourth the fourth provide of in result quarter the and these to subscriber feel relative is quarter, quarter-over-quarter, to investment metrics lieu of on the our this XX%, related a basis forward. increase of XXX,XXX of brand, successful representing

average the also year-over-year year. fourth $XX, share relative of quarter per quarter a subscription able that was to The signal users revenue in not user last quarter fourth that is increased on online strong X XX%. customers. points foster expanding only but are we relationships the of to to Higher a per Monthly in of platform, multi-month revenue number are the the fourth deeper subscriber we up with subscribers our XX% our with generated

million, Wholesale third revenue the quarter decline relative time same increased year. million, the X $X modest from representing a period to last to

we retailers majority of as the we have our As in wholesale communicated, have revenue expect growth the a we channel now to in moderate presence previously top across country.

channel to strategic cultivate our piece strategy brand generate will consumer our channel. our wholesale in this look and important we relationships for with to across remain continue The awareness partners will an more to

increased year-over-year affiliated basis online Gross operations, margins fourth driven a Margin XXXX. efficiency adoption a a XXX point of by XXXX XXX continued XX%, gains reflecting longer from higher quarter. quarter-on-quarter were duration share increase from was for XX%, increase Gross fulfillment revenue. remained margins of greater representing for stable expansion pharmacies, channel the subscriptions, in at our volume point basis

P&L, Moving improvement relative XXX the XX% to marketing XX% a and was excluding down revenue percentage basis fourth quarter. the the third of in when as stock-based point a compensation, representing quarter

as For XX% revenue compensation. was a the based full-year, excluding marketing percentage and XX% of stock when

develop as leverage investments such newer starting TV. to are in We to made on channels see brands our

than payback a result expect [offerings] will marketing expect in from launches less [ph] as time-to-time. product new that our you opportunistic and us our year one capital remain of period That framework. can the investments be allocation highlighted with we to As said,

fourth a based stock This excluding percentage at as point including relative quarter and in costs the third of Operations XX%, both to improvement revenue and XXX a support came the in quarter. basis represents compensation.

gains leverage overhead. scale, economies as a efficiency We of share via and from see continue our affiliated benefits of greater result fulfillment pharmacies, on of a to

fourth Technology and the when product based in the quarter revenue stock of costs excluding of X% and development effects X% represented compensation.

a XX represents the Excluding compensation, stock to quarter. this relative based point improvement basis third

in We area platform on product this expect launch and as new expand to investment to continue offerings. evolve our we our capabilities

year. to the revenue, point this of quarter the costs third X point improvement General a XX% quarter of was for basis relative fourth and fourth of quarter and XXX representing administrative the relative a to improvement XXXX

Excluding costs year-over-year XX% quarter, the of the representing X were from based in stock impact revenue compensation, XXXX. G&A point fourth improvement of a

point G&A XX% area full-year, G&A future. XX% relative costs revenue. of this further When reflecting of costs the revenue, the were of in headcount were year-over-year stock anticipate XXXX. For based leverage growth Efficiency area for disciplined result in the excluding a improvement to compensation, this XX we the were in and full-year gains

Focus fourth fourth of X% to first quarter points the margins we In EBITDA the of strategic years quarter, adjusted XX-point quarter our $X.X the leverage of to quarter marking areas generated an a to the adjusted our relative in prior platform EBITDA has were investments we and the throughout XXXX. made across us have million have multiple representing enabled fourth scaled. drive X EBITDA quarter, improvement as profitability. Adjusted improvement

XX.X of negative success the Hers. EBITDA We our some Adjusted XXXX development culturally another most in an for in Hims user for channels, of the year EBITDA XXXX losses was across awareness for margin showing areas. were new relevant adjusted in brought saw up of X%. outstanding representing million, & demonstrated brand

exited the base we record result, number of to new ways and platform. a we first groups of million expand us X which customers quarter the profitability. the lastly a agreements year in EBITDA with over medical subscribers on our customer enabling serve and partnership As We achieved our adjusted with added signed

critical excited are the I history our future. moment we that for company's and more clear is be a cannot It at in

We immense adjusted and cash balance we million with XXXX positive amount growth, as flexibility investments. an with EBITDA, generating $XXX sheet and enter a have of robust strong approximately of short-term

outlook. In in to first are our Turning to XX% representing of year-over-year range a million, of XXX anticipating the revenue we now XXXX XXX quarter, XX%. to increase million the

to X to an X%. On adjusted million between EBITDA we margin the million, expect X line, EBITDA bottom to representing adjusted be X% between of

bottom of revenue For adjusted between EBITDA to EBITDA will to to we million, XX%. full-year, the XXX of XX% are adjusted of with expectation the our X%. line, ranges representing to growth XX XXXX resulted and EBITDA adjusted million million a year-over-year margin million. anticipating These XX between between in the X% revenue on XXX be rate And an

XX%. Our full-year outlook retention are to rates we able that assumes above maintain long-term

expanded we traction year expect see marketing achieve in would investments products continue throughout to portfolio that under payback personalized of periods one to launch we We to our XXXX. and start with an

years. the expect opportunities have Several our emerged of over to extend capture next to capabilities fulfillment we two centers the that

As expect temporary we these we take advantage of to a CapEx. increase opportunities,

two expectation Our baseline our million is of the to will next million between that XX CapEx have current incremental over years. during XX we

of to the of aspirations. in taking portion first are some end The second quarter. expected moment a these I'll by talk through our investments longer-term

Our XX%, generate XX% belief margins is our profile. that a healthy growth can to over of between platform while time, adjusted EBITDA maintaining

the opportunity [ph]. company's exciting through power of at lifecycle health immense] and the a to [to the world feel days great and be make are of unique We the

in better will invest As platform a will that to our result, continue for our opportunities differentiated new a outcomes expect customers. experience across in result we with strategically

is how expected in target through our the platform is I'll Embedded into to experience as long-term provide moment adjusted an gross our structure trajectory evolves. is that expectations. spend in the toward normalized margin the EBITDA our a insight expectation margin long-term customer the talking on margin To evolve, mid-range mid-XXs

annual XXXX, least billion generate In X.X expect to we at of revenue.

will to scales framework and continue allocation [ph]. an it] to to leverage platform as drive capital demonstrated ability the [hearing Our has we

of in payback and and and products year other ability while the high potential a less [ph] durable long-term. of As significant the foster to enabling capabilities from framework over channels, on a long-term growth than scale, investment investment a return a include [tenets] reminder, investments, a economies that on period benefit marketing the the key for of

least annual to strong enable sound of our feel us growth will adjusted capital million EBITDA XXXX. that drive We across with at framework in combined allocation execution XXX

is similar or environment not achieve external significant in to operating unforeseen targets on and these any ability dependent does a challenges. Our today assume

are to runway gives provides inflection that provides us. across and The to an forward into foundation us we we at increased a investments on us update us clear sheet making that to us profitability you we're each and on lean the results pillars. strong ability confidence the point. to we in see to thank continuing with transition It our with four to outstanding our strategic deliver tremendous of customers, like these helping balance to XXXX of progress. front partners, our our the look I'd combined capitalize solid is employees

turn to call now I'll operator the the over questions. that, it With to to open

Instructions] from [Operator our take of Michael Cherny you. afternoon We'll America. this first Bank Thank question of

is [ph] wanted the of to us, fiscal to will just you, of afternoon. and from on Yes. little through from existing Hi, start XXXX bit that [Just to] expect Mike. your good much do new line blocks sort come Ben walk This a products, revenue products? come expect targets. do much how to from How Clark for to you building top get

Ben. the Yes. expect This levers we pull is Thanks years. so over few different Yemi. the There's that much Hi, for a coming to on question.

we've is, the the amount growth existing we're from in seen coming categories that Hims an on some The first of platform. immense of

we so continue will really with do of to the expect on And the that products, of scale. rollout personalized verticals Hims many

as by excited we platform well. We on also continue opportunities remain see to that the the first

per And calls, expect to we expanding to year. category expect disciplined scale. capabilities tune to coming the Then prior do that categories mentioned one so, expansion of the have years lastly, to do the we as we over two of on

levers achieve set to assume on range really to for that pull those we're the the that able coming so, continue we each And years. of long over the targets ability to

we gears kind how be, just guys about your there? thinking thinking be And shifting about in there if then at guidance? macro, it. of fiscal Got XXXX of that are Thanks. Is all, guidance, anything you Thanks. should

of of thus Yes, it of the in, in MACI been we've I other periods the are economic throughout dynamic Is think they've Additionally, afforded and really we a that largely headwinds. we've macroeconomic has cognizant many seen protection? the nature conditions that far to seen XXXX environment. us uncertainty. some that resistant economic of platform What recurring we're

set. well as consumer solutions, And some stickiness result the of of that the just is diverse of the as the

And so, we would say that is view balanced. our

We They're year-on-year not well quarter-on-quarter that of to XXXX. performance some XXXX. necessarily strong record in as growth continuing saw growth, project quarters in we as are in the level some

Got you. Thank it.

you. Thank to now next Daniel We'll go at Grosslight Citi.

Hi and congrats on guys. taking Thanks for quarter. the the question

basis that degradation Your of longer-term do know has of the XXX degradation. points but gross I experience, with your I was mentioned that And remarks in customer guidance some assumes margin around prepared you to you and from [provide] if of gross that that point wondering XX% [ph] cadence a a XX% to from to around can finer of of margin bit XX%. little more on XX% the

the kick for Dan question. I off. Thanks can

really customer the it find ways materially. I think be reevaluating to us constantly internally, improve for there's experience strong to a desire and

engine available And is markets. personalization and level think that traditionally create on of from a the there's of in to we're the what so, innovation generic is I really roadmap this trying different side, where the product on care

also general experience And just there be then I in. we improvement that think want constantly to a investing was

probably little a Yemi of timing couple speaks think of of – can And a the I speak points. that bit that's so, to to that. And the

Yes.

reevaluate the time-to-time I mentioned, longer the timing, We'll factors sticky. as the Andrew options making some pricing of from to be in continue think that opportunistic exchange respect would for drive exchange platform with the that to durations. in would for think I

the be as over driven time do the as expect value-added products. more more we and personalized to well of by services, Additionally, ecosystem

customer normalize of embed XX% really as see time not that start if margins to to in experiences so, factors making the XX% overnight, likely those to we're in in. but mid-XXs degrade that as going the we're the and the continue assumption better. gross optimize And start combination to to range see It's in over our we to experience,

be a marketing sense. Okay. based new those on bit Makes on expenses, then can lumpy marketing And campaigns.

out with some be there partnership that Kristen how new XXXX? that if are in you're launching any should we large see you line other we Curious going Should campaigns had lumpiness or getting to and spend you Bell. mentioned your of XXXX? more about leverage item You marketing think marketing in

there I think to we flexibility for open opportunistic investment. want leave the

as bit lean last now us opportunity and definitely a others we've an nature strength Dan, the the of and right space fairly the little recurring playing where retrenching I we're I the model the to that think confidence ability union And underlying think seeing think in gives the the are call. in unique of this take to I said of continue strength more a share conservative. there's economics are in market energy to business that and improving and in. disproportionate

valuable think has dollars we that to into sense similar a based shift there there and that likely vein. said, we think Bell performance flexibility so, more we to on I more line I item. make But expect maintain that initiatives we Kristen away proven that And and that meaningful work and be really to in pretty partners think with channels, from leverage want be other continue building as brand definitely to are

the color. Yes. for Thanks

Yes. Dan. Thanks,

next one from with Wallace Jack Guggenheim. Thank is you. The

questions my set questions taking going to quarter the another to congrats of targets. close on and big ask XXXX I'm for thanks fantastic around Hi, and XXXX. another a

associated with have we any providers? to gross on capital side. outsized In patients Just of care or you. competitors And terms be your some in thinking more recently margin growth second verticals, the we in terms say any read that contribution, of new the of time and there? contributors? it categories of seems two of are there entered, hot of is is Should Thank reignited into to thinking growth more one human are some that, costs there have being that then

that. I can Thanks, take the part Jack. of beginning probably

side year] Hers as new on [tenure the side. category as the of the the the a On both we're lot the traditionally well of side, very [ph] seeing categories on early health house, categories men's robust from growth

with digit I maintain at categories number a digit growth point rates. this think So, mid-triple of – still triple

then the relationship better in And a even of those just else. add better stickier they proprietary understanding so, have increased this really can't anywhere innovative be personalization to that them, segmenting of on focus lot to level way outcomes continues products that and delivering a and and a of year a and those roadmap an customers, customers that make get experience

there's So, a effort of experiences also the know, there's for a I here core and what improving to rapid I have, else getting lot. categories think you quite form scale really and are balanced continuing your customer you know, while looking about, that unlock. those to and grow can plot excited think pretty point, serve robustly, to And

the the released cardiovascular, prostate time materials I of such in health women's categories health think diabetes. experience think making men's being are These in I that we in health, that across testosterone, will us in. pain growing the all a general presence have we as balanced health, core then some categories just digestion, we're strong are believe today, I be But fertility, continuously and and menopause, management there's we the over today. today are sure of improving people to recent in coming are very that segments

a much more categories said, roll-out continue we kind to which act in can us rapid to categories Xx timeline. on to while a within of those new to meaningfully year basis, have Yemi And Xx the per expect you as past, as on innovating is

get Jack, and structure continue hit time. actually cost more to more our of your we to see second the then And efficient part question, over

of we margin. to opposed in to products, new improve is see what And for gross that's which offering, of so, movement is new the mentioned, more in evolving as more structure. our in whether services more again drive showing would the form of the and up overall We're as personalized efficiency do to really what actually evolving look that expect form our experience, to the more margin overall to getting expected ways gross we that look we customer cost comes Andrew higher

trying just opportunities helpful. quick processes of really there then the a the at what And you're the you. that certain idea I'm budget Got or follow-up the looking couple is years? next looking to an on maybe an That's or incremental that Are that expansion for at be get just CapEx. to the you're robotic to going are

pipeline I Yes, experience know, the just centered we a know, of products to, are at on a augment things. you few It's think that's have to it unique high customers. that for creating do level personal the, that a is you given

Some of [those elements] driving the investment well of the to increasing that, of it combination a is towards that the going efficiency just incremental since overall of as centers – as fulfillment our affiliated relates towards are the [ph] investment.

Thanks it. Got again quarter year. and on great and great another congrats

Jack. Thanks,

Jack. Thanks,

Thank next now go you. Jefferies. with We'll Santangelo to Glen

follow-up Thanks question. some Andrew, to I Hey, competitive landscape. for comments want of just taking my just on the you were making regarding the

of how those, right? I'm you long-term sort right, of at margin sitting to people at, And just trying category wondering that's to think what expansion the of sort landscape understand competitive still, these noticed, not is view I Roman. looking obviously because you targets, of are Amazon investors As sort days kind had

this right, looking clearly at more about CAC thinking but of year expense It SG&A competitive vis marketing acquisition customer leverage the costs the happening kind over people à vis what and, that are, time? with seems you're of maybe like getting is landscape. sort And

for Yes. question. that Thanks

market competitors very very and think aggressive competitors and to right found for take I in quarter where share to paybacks, opportunities well now level, taking lean the you've from really are that And advantageous think funded be before, right. a market I QX I at [have] are the the we be and that in think right? seen high meaningful [ph] strong we us, really

a doing investing in brand. maintaining sub capital the asset the which always business, framework, is allocation Within in our a that's payback but that trusted way long-term of one-year period,

they right? continue think would, I the as to competitors you expect move

the of of industry. believe in, think most that will world between the I eventually some the I generate world the this not in if the mix valuable this largest genuinely country, industry healthcare will consumer kind and likely and in of businesses business end up and in industries we're likely the one largest

And and But investing what's holistic I very that the the really think technology, leading that that prior to products believe excellence, bread to forward. services was talking four market. that as brand and innovative experience that unlike I those butter it's start to only delivering unexpected on the in about think, continue working long be and thing that one. pillars anything with taking to is in that path finish those leader I And four focus are reinforcing of so, on truly think trusted we'll really and probably pillars I as we blazing I continuing as we the innovate clinical to think a are delivering whole and what's clearly then

that's so, really bit seeing team think more turbulent dynamics great be our little take to to the focused, we're where a in that rest aggressive allow and for the but of it's And I share market industry. in time we're a where

multi-month issue know getting price, we're up mix to out because is XX%, value, I I and that price, better which driving of we're Maybe is of you in of health that the comments. the figure $XX little and follow-up. order called some therapy just think, average appreciate might to be I could quick areas is subscription. those a if ask to some that out Yemi, maybe growth. a you trying sexual year-over-year of one remarks that your as prepared questions get men’s And around or bit a some understanding a Trying sort

AOV us coming So, the where maybe what's can Thanks. as any strength and much from color about is is? give it as driving that you

first standpoint, I half. Yes, growth provide can strong a seeing thanks. little color we're the growth. Maybe on a From

men's well tenured health, Hers. of lot between businesses as which older dermatology kind think, & we've find got on across the I the businesses of We've maintaining still of the mid-triple-digits in in like that is as both businesses and health, newer sexual a quite Hers things itself original, growth few business. usually more now side Hims a equally said the

very customers is who are needs you we're really really this this. there's no servicing single layering treatment relationships. to the of patients scaling. business, this different I and businesses different very very And of so, is think driving multiple with those coming have with And plans that's which and us different are This different point really defensible nature here accumulation

business. Hims, last one and older that is think coming the have months. it XX businesses lot XX so, newer guys months innovation the as the from as in that the But a aspects of well a And tenured core of us from really defensibility of is in to seen combination traditional the you I

AOV, And upon know not of Glen, around, we the Yes. your particularly, for like habit AOVs. in what's touch to you optimizing directly then, driving generally question

revenue subscription the our really primarily customers. that more relationships Just given the lasting based, around driving strategy with model is longer, centers durable fact

And has so as a result, that in few things. resulted focus a

mentioned, strong is, continue see as multi-month adoption. One we to

and users opening conditions. see themselves set engage more to across being receptive of broader also We us the

to is around to be those strategy building continue going focusing Our on relationships.

subscriber. And so, subscribers well that's new draw as what subscribers, that the as the we retain on as well to just in per as existing generate revenue platform expand the

much. very you Thank Okay.

you. Thank

with Yong Credit Jonathan We'll now go Suisse. to next

on Hi, thanks a my quarter strong for and here. congrats taking question

XXXX retrenchment XXXX that, competitors. more How of do flavor to going or some the or EBITDA some perhaps the by and about through categories maybe Just to get your growth accelerating year points as you you Just pulling growth your you of through the maybe represents think to versus think comments how side, possibly two? about balancing profitability itself want on about targets, next you're thinking XXXX? in the launching back if a or about opportunity revenue

on the much be able very would to of acquiring I say to tenants able said, benefit demonstrate across we we've more are history, think unlocking scale as I and ability do throughout I to new that oftentimes that, been That from front in uniqueness Yes. the we economies given optimizing we really efficiencies continue we the us. given model, of of have of as think our the focused to both the scale. business

leverage do as see variable G&A, that is both areas, you What get certain in across as our well we expenses.

a but just or able to both. a revenue the EBITDA an in what not really just if for target us little think I that be gives more that's conviction mid-to-long to term bit It's nature, target. not do it's

that Just to the areas. both because have we do the across see expansion model affords the ability conviction

to continue ability That where it So, identifying said in drive and platform well. confident continue the us categories makes investing to as more expect to lean in also EBITDA to the you onto sense. more are we though, can to and

just that of you're of from? drive, maybe then going And benefits combination a about really experience about kind or retention is of thinking customer come to to how those you're the Thanks. the where investments think it doing. that or will growth line you Great. is When both investments, it's to to top just it improve

great Yes, it's a question.

that with to at you have share they and have you the experiences providing better right? a that as part frankly we of friends adherence, on efficacy, through deliver look family stick meaningful of think that their the know, I know, result, that products increase treating right, it outcomes, really as love, and, their and and that And patients that and patients deliver services platform, a and more really lives. lens

don't of driving outcomes? we can up think over simpler [LTV rates like And I and dynamics at improve are aggregate I improved the do that Currently, the through it, looking ends really lens it is of are how time. retention of patients patients and we But are so, improvements, improved how a we how long-term what but customer struggling? those? lot as think [ph] their that improve are and that do the a activation What cohort] what preferences make reasons lot

customer, asking and tenure a a we're longer much much outcomes to options happier profiles? drive think on better results customer customer questions valuable I customer. long-term lot just are clinical side we are a the have do side those What support that a more the in of much or effect ultimately that

Thank Great. you.

to Securities. now Singh go Jaialendra next Thank at you. Truist We

on Thanks Hi. question. for [Julian] This is taking [ph] for my Jaialendra.

for understand specific you're figures So, providing multi-month no longer I [insurance] [ph].

So, mid-single just to orders percentage improved think, quarter has upwards XX% monthly? percent I what that churn of continuing to are and trend wanted digits above, from each know the like multi-month

Yes.

question. of we to a And subscribers want second are we have have one? north the Andrew, users Currently, do – that of to those then of are the to have what month-to-month month-to-month. ratio disclosed is in you materials a on that more take our a or your multi-month on on XX% our think I that So, model. relative multi-month relationship us with

Sure.

I'm that Sorry, of that, I – the mind it? Do repeating didn't for get of sorry. second the first part part you

has improved churn percentage the from Whether mid-single-digit monthly?

Yes.

retention We strong haven't the reported on the see which XX%, monthly long-term side, to but quarter. rates what of we north in reiterated this is really continue

patients a what just would see before in Okay. getting are proposal sides your [indiscernible]. doc the to disorder last week, person administration's on thoughts And of deficit which or require then medication quickly, attention

Just kind of your of wondering today what to of tied kind is kind of prescriptions? business percentage those

We great any do a not capacity. on substances permitted type in controlled currently offer that's platform. question. not the They're any of Yes,

business there's of part that the administration's be week. so, by the Biden And would affected no that last proposal came today out

Alright. you. Thank

Kim now We'll Jonna Cowen. go to next at

Thank a Congratulations you questions. quarter. for taking on my nice

Thank Just to on to retention thoughts month retention were have talking higher in the some And are multi-month? that maybe across cohorts? differ key you by wanted How much. the you place what different does rate you rate get about. strategies more drive single very versus retention

Yes.

for So, multi-month, are rates higher. the retention we see generally

nature, the see show but using of as in take some are results to example, many does loss these them, instance, chronic of for it time hair an For for conditions, up. they

We so, of experience. multi-month. evolving those retention centered customer initiatives around that users we have And have really generally just stickier. committing are they're Many the around see that to had the

instance, end-to-end the different the or the able So, ways to solicit on and experience it where to looking continuously the that making your just evolve to easier we're overall cadence on platform. remarks, further increase in experience as a having to platform, a mentioned have timely treatment. to help response. for you're prepared And Also the customer switch, for stickiness

you. Thank Alright.

We go Deutsche Bank. Hill George to now Thank next at you.

the spectrum we're question. and there, Andrew, guys the my of other evening, And comments in given you your the start end how in. thanks environment I'd Yemi a general, one guess, interested think long-term for your I visibility aspirational? it guys with on guide? characterize you and of is in the the the just kind that I the do And of to end thoughts off of Good taking conservative, it would putting uncertainty guess, of spectrum – putting of I'd it out be is as

Yes. would business for as is George reasonable think what to trajectory what see we reflective of of it for given Thanks, current question. we the the characterize the achieve I today.

XXX X.X there out of intentionally least an think adjusted number – And and this a think million. EBITDA so, least we I we at revenue billion that put is of at number

business that this. So, do the can think achieve

hood quite customer new both year representative that, that pipeline for categories this and growth innovation on next it. have see year and segments the a the product today new we we are think lot the, also and the fairly engagement proprietary in of and think powerfully. across of We business side really retention drive pretty think unlock going can But categories to hopefully, we it's I under the works, robust the of and surpass representative that also

know, don't And [ph]. add? so, Yemi, [provide little color there's like I to bit over] maybe of to that's a if you'd anything

end. from Nothing my further Yes. No.

would call product – product maybe kind expansion? the dilutive? talk ED accretive I the to guess, about XXXX, like that product know couple as margin And And of the erosion of I about in over that on lot way opportunities margin launched. men's you gross see to I can standard use follow-up or you what generic as the out categories new Mints the a a is product do hop then talked look that pricing you we years margin a if could I other product, Okay. compare you formulation with we to drive guys gross next if in of gross to,

maybe first that part second to it the hand I'll take take over the question and Andrew part. to of

on generic were time, the offer really having products. we do sight about more that we the that capabilities gross The flexibility similar around onto more margins line into based ability personalized for of products talked gross just we expect over that think more and to margin the do I consumers the achieve to the platform. have of dynamics we

some the of to is earlier flexibility where we margin really think – And referenced gross that things we dynamics I as are come evolve, so, see just how likely the at having from. that we look around

And your Yes. formulation George, opportunities. to about question,

think, ago. of I and in key compounding pharmacy answer strategic I to think couple purchase of the is This, Apostrophe the years was large absolutely. infrastructure that a

makes that of optimizing preference. will effects could believed for formulation way sense. factor dynamics outcomes clinical personalized through of much could side It dose combinations or it be the optimizing deliver by better could always form be the that it outcomes where way way medicine And be have of in in different in improving We patients. different

think platform businesses I factor that to in increased the opportunity. our future solutions formulation and the providers in the them, across going platform huge means so, giving the and And form we're lot of a across situations optimize and into on capabilities to and personalized on we're for launch is a our patients businesses

to the get just get care, that and also stack a clinical best this to such and to think but come I to been making market. unavailable are going they are and other experience only platform to in going truly really services improve not reinforces places proprietary lot at that our the we've they're products unique the can customer in the where again, know across really of us And and a investments patients way

helpful. a That's quick Maybe follow-up. just Okay. really

comment Just kind – been of I it's Has can of kind on uptake met mix? the but expectations? know surpassed it early, of you expectations,

last getting meeting they're And adoption I think and think weeks those strong in we been out. have few strong just engagement them. I very the high There's expectations. since

forward. energy the given has pushing excitement to of a team keep and lot So,

Okay. Thank you.

Thank Korinne We Wolfmeyer at you. to Sandler. go next now Piper

Congrats great the questions. afternoon. and taking on a good thanks quarter Hey, for

the seeing into I would Thank other you like the you. as viewing there as been but So these you tap existing address that so kind orders? such of conditioners. products on market to these products piggyback Any customers some first, are that more into on color their I'd the like be that tacking launching, being helpful. to, guess, last shampoo Are and or you've of, base question, and broader a able launching you're start expansive customer current newer

Yes, a question. great that's

breadth continue customers it's both. shelves strategic initiatives channels, in which are the an Being in brand OTC product accessible similarly and intimidating start retail omnichannel I for most on these the with and less the ability & and to think an have see invest have relationship for allows to of a we more I and those sometimes having introductory first We patients, and Hims with partners. mix And as to Hers. of ways in products a in relationships building invest think we products. touch and lot deep presence them

are definitely Often with regiment. And that So, are patients weighted that ask part coming I it. think with and work that getting the equally for and desire that products think getting specific products of that's a then and issues. I to us to treated prescription, it's probably personalized pharmaceutical platform complementary

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to think, assortment, drive the and it assortment that way ability incrementally value that average in size breadth ultimately increased order the I the so, business. pretty bundled products, meaningful a that does And of to have is proprietary and

$XXX least down margin if are far just targets, XX% think there, EBITDA XX%? million you. that? us road the can quite to helpful. some guide Thank you how at far going gave we And that I the do how just those is? to but really more XXXX And you. you although you out but get I we're Thank down talk seems XX% mean to that to really not XX% you put like are EBITDA, the a bit on push that longer-term, just the you how That's is road little could then about for

Yes, of think to to for sure. that continue seen question. of I'd we leverage I sight the that already. direct leverage say the line items on Thanks get line on have we've many

disciplined very to expect footprint. do our that we G&A we So, grow continue in be to the way

years leverage coming you the to expect So, on side. that get can us over

support. lot up We primarily things and costs of on are exciting show see that very operations that variable in our a

is, but that also breadth more we investing investing see that the years, of over existing we'd growing. so, more the of also acquiring have Then categories, the continue expect now, right do there. time leverage also get in a we'll see to and the customers platform, what base coming rapidly customers And to we're is across onto is over currently we

and also As that efficiency across business. just drives ton a a of the result, leverage

versus would so horizon, X see as off to get over really, looking continue probably to probably XX I'd that years years expect how evolve to what at plus And start and how X-year we straight between a the well. probably Realistically, going But the it’s our type is, the we investments least we time, of would leverage base truly a mature. say, make line on we hit we're concept. be to to marketing at,

Thank you. Fair enough.

next to we'll Tigress now And go Financial. Feinseth Ivan at

on to congratulations in if another be projections In include to I Thank going that? huge possible billion two you questions acquisition year. any XXXX, questions. into you have that does for would taking my and were X.X M&A or your that make an be additional

Thanks, for Ivan, of representative really trajectory of the question. This is the business. organic the

does any of M&A consideration years. opportunities couple the the on might in side take So, into not it that next pop-up

of Are say, like that areas would say, into? they but the expand be, other some not let's specifics, would what you let's to giving

couple presentation outlined of that the From we is released, on team that the standpoint, I investor the by. up prospective energized on that's think a really a right website We investor markets category now.

testosterone. health, is prostate On the men's health like side, things this

to menopause health in customers mental bit with and the you're On unlock insomnia, struggling side, quite women's On there's things like digestion. in a – PTSD. about talking still health,

of then health, and a a just for of women, It's launch spending is, metabolic lot but and fertility management, us, going and that's the those health, we're when I right. weight men know cardiovascular, are a at question of in. not and if a categories. lot, looking team these more answer in in categories diabetes. And think to any general of is for really concerns And it's pain I honest all how, really time the question

bring we are to I and have truly a think products desire services and market innovative truly personalized. to that

been it's patients thinking their new rushing that's with means have improving about necessarily a in the their And with so to that approved, how them. actually a once deliver preferences outcomes door way we not ultimately, and and it relationship medicine that means the out we

and a the bring those much in a them. question but feel And I & very launching categories, of lot them Hims us so, is it's are it's And matter of just think Hers we that a between a into representative approach. how we just market time of of way

types And Okay. kind my of you as areas types what what Bell similar question you into? spokesperson, people seen other you were in And other expand on how that bringing some look of like Kristen roles measure to then, since like of would is, impact do have like or – that?

a it's great question. Yes,

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on with seeing it's are Kristen. lot coming so, encouraged the evaluate to brand be them. of we've side and for strong seen results really A message, people solutions for And that and resonating building and them

as competitor so just first And reluctant to our is who I for take that of biggest somebody think step, me, right? really

from information, people seeking they're trying Hims that or opting learn currently It's system. who's options somebody to system come the of about Hers. really now right? and majority of who's competitor to health They're available. with & They're The a are different first-time different in coming buyers, outside us not a

think nudge with people step might encourages take people that athletes ultimately I this have And take influence normalize of be so, then it and go ability of celebrities first struggling and to hopefully feel realities of the better. care and be learn high and they to whatever that and and the

that open So, across dynamics. a looking partnerships We're more have Kristen. like we're categories to at lot of I think those options different definitely

think in it's So, us years expect something come. could the to I definitely you from

Thank again. a you Wishing XXXX. Congratulations you. big

Thanks, Ivan.

now SVB next we Zhang And go Securities. at to Joy

thank [customer guys. on, taking another my Congrats question. of segmenting] in remarks, prepared comments sort quarter In strong the for and you specificity you Hi, had on some your [ph].

at geography, us of past categories? typical give age, has as expanded you can of that update into sort you've customer the the on typical of more profile years customer of you. And So, all gender, an your, terms cetera? et over changed in the profile Thank few

Thanks, good Joy. a It's question.

brand think unique a that part wide customers. really of this attracts of there's very I spectrum a

specificity, which us, very think treatments tough the for that in those and is what those I about, so, coming remarks, customer be and ability patients to specific wide I word, is to groups and a talking spectrum can identify needs And that improved was are within within content how therapies the patient. specific personalized and the patient of

give an example. I'll you So,

are se, and women's the have business teens with XXs. who right, in On their late per mental struggling women early you anxiety are health that

You postpartum. have struggling women with anxiety depression,

as You approaching depression menopause. they're have struggling through anxiety with and and women menopause

different. those very of for those women that's The likely each each appropriate is at of actual care stages

et address, And be treatments, understand completely even that's conditions might And so, of those patients, we big part that being help able like better needs it. could that and helpful. therapeutics, different really could specific a underlying digital that specific to segment cetera, of content, the be

think broad is truly There's people. It of is many, incredibly is of the actually across the now is Hims customer. There most of right no & Hers single resonate spectrum attracting parts wide single women. And There's I so generations. men a that's the no many swaths business across powerful all demographic. brands age. vast one the and And and brand very of no

grow. And so, that's continuing to

expand as a even And better great likely and building, and Hims further could grandparents better think think an customer categories segmentation at household launch be where and place see more entire Hers the eventually we entire in get at brand and of I a & grandparents. that an you'll I family, customer

kind that the and that's far. think I the so, so trends seen ambition And of we've

benefits just update is from of done in-house helpful. maybe fulfillment today forward? And squeeze another super, volume through as much Can in tag question. is sort you Thank follow-up, on, centers? of margin And a going terms percentage on there the super I'll That's you. us gross left juice what your to of how prescription that margin

great Yes, it's a question.

business in XX% think the pharmacies. the north I the we fulfilled that's through of is affiliated latest disclosed presentation being of

still profile that the of And quite so, there's the a margin left of remaining to there is efficiency a and quite go, bit bit are opportunities streamline and to which percentage. great,

but a quite the drive lot still of opportunity a for us bit, improving efficiency. so, quite And on to horizon

Alright. Thank you.

you. Thank

your thank Thank earnings conference you. like conference And ladies day. as to the quarter and Hims wish as us Goodbye. a question-and-answer gentlemen, well we'd the that session for end and XXXX so & all you call today, joining you call. great Health Hers all conclude today's to our fourth bring will remainder Again, much of of