Hims & Hers Health (HIMS) 7 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Hims & Hers Second Quarter 2023 Earnings Conference Call. Please note that this call is being recorded. All lines have been placed on listen-only mode. After the speakers' remarks, there will be a question-and-answer session. Instructions]. [Operator

like of call ahead. Investor now Lopatto, to turn President Vice Relations. to would over today's Alice I Please go

afternoon, call. to second welcome everyone, & Good Health Hers the quarter Hims earnings XXXX and

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

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

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

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

link After for a XX the the find months. be to Relations on investors.forhims.com. Investor website the You'll call, webcast will website at and archived this webcast

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

Alice. you Thank

in the second results both with Growth excellent top drove million. up exceptionally we on $XXX.X quarter revenue the bottom quarter, year-over-year and strong This remained to XX% line.

the foundation state's the diversity robust lay continues for growth helping Our of from platform to categories of benefit many years ahead. brand

leadership saturation, landscape. scale brand the within continued a increasing competitive of little expand clear position to build benefits and of via offerings the market of gain the share sign we capture to mature within more as with continue Hims Our market

unit mid strong affiliated digits to in categories and Newer million our operations quarter. U.K. our and operations our in as us growing and efforts optimize $XX.X our quarter-over-quarter which mental meaningful million verticalize economic lockstep EBITDA adjusted efficiency allowed second processes, to to we markets and the in continue pharmacies cash improvement. flow from $XX.X are triple drive such in from generate In demonstrating health gains

we're increasingly the reassured ability towards This and over provides flywheel achieve many model growth at $X.X overarching XXXX EBITDA. pointing in years billion surpass us model profitability strength in the our target of composition powerful our $XXX is to increased adjusted and revenue confidence we durability building million least of believe and robust Indeed revenue in and ahead. of of and

believe of accelerate of has proud today like quarterly to hood believe I'm of soon-to-launch with what's long-standing categories I'd trajectory under & and the , most financial spend I While to already exciting happening outperformance, the capabilities some sharing company's initiatives, meaningfully Hims the potential Hers.

in advantage. afraid believe challenges. and I management shared unique Hers past, the think horizons Hims & I've to the As are the of Myself a and team multi-year not complex rest tackle in is competitive

of our most we from team the a benefit platform deliver is so nearly valuable this the can This orientation its and that many in While company. household management that belief long-term believe will long-term, existence. not upon country so the retire ahead, years foundational for over will wholeheartedly differentiated I with every based

to to what's through personalized where most bring the of acquires our that to across today consumers to of in Our from orientation enabled And market. get we channels the a to some categories, the DNA long-term it's services multiple are some foundation company and build products innovative us most a from creative and the customers start. has has been which

evaluate of is a a will in our we long-term of progress derivative believe the how Looking celebrate we value successes. gains next and that the over benchmark impact be ahead, lives years positively shareholder this. our change the number XX that course for We of step key

business. the taking under hood, our shifts look a to I'd To like few walk you in place through transformative

I'll For group buckets. into them four simplicity,

mix in is first to generic material moving consumer preference a treatments. personalized from shift The

accelerating the The second enabling and of AI of is our providers hundreds precision are the on applications leverage trademark filed of MEDMATCH showcasing data these historical plan support this multiple specifically to it's rapidly decisions collective AI next and more individual strength knowledge quarter. of delivering that capabilities the and platform treatments. and to the millions name clinical recently clinical for providers benefit technology We

single we treatment have to enable lastly, frontiers to and soon. recently And conditions. the capabilities multi-category providers exciting launching fill new will launched multi-action new for our offerings customize Third, and be

been delivered the Today beginning earliest to issue years in to appropriate years, solutions access. more initiatives come wildly its with. provider, clinically access in and have & exciting, story become are access on treatment for a that Hers Access to singular generic patients challenged as to development form Hims simplest From market. were has for to

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Our was mission never system to to existing help healthcare. of the providing access the just world about feel great

for While this to improve capabilities where and that intelligence began all providers. we the of purpose has better. along We been true to the is our system transform want

sole hundreds rather clinical and who customer's provider on dependent outcome or knowledge clinical an encounters. collective thousands not of of millions the the of even individual derived experience a experience that are So from

trust personalized, concern, to experience And rather that to we multi-treatment to treatment limited human to the provide pharmacy of with clip health such that customized into new ultimately build expand across a to is a their access never their medications but we patient's life. our a ambition Our excellence solutions. never issues, singular could relationships tackles of impact for only but and enabling on conditions not underlying patient that key patient and commonly overall initial lastly, was establish to prescribed and build mission capabilities just standard entirely

patient personalizing been business that transformation on From are we a the of treatment outcomes. deliver to to. to results that experience alone witnessed and order now opportunities I in access on a better have most that industry one delivers meaningful and business propelling the is

believe massive has future improved market, offering deep growth, for implications lifetime an can truly enduring Hims longer competitive be something extensive from moats, We customer to and no differentiation the to unique. in that and Hers transformation values, of & those compared this

personalized base To dig bucket. treatments shift that within opportunities. let's with mix that treatment generic our first in material of further, from start to The product customer

in delivering confirming customer on Feedback need front of that our platform. insights our unmet of hundreds that feedback thousands confidence belief based on customers and personalized changes high, an is relationship radically Our with platform. is our and solutions this are upon our on the from of appreciation innovations

and of from personalization of need has customized patients. quarter the personalized rocketed Over XX% the for in reflecting providers by revenue Category-wide desire treatment treatments. online second from came customers of patient treatment the acquired

patients report. tenured providers ED, increasingly personalized and made categories most to our like solutions hard From multi-action through are available turning and HARP min

to adhering to of willing Hair, platform customers are treatment. with even in Hims tailor that They and customers world have for form, more, of opted ability to over indicating no to takeaway and In quarter many more, treatment the experience medicine. The is our generic more, first to personalized subscribers the loving get with The providers treatment they engaging XX% to more, pay of it. simple giving select their treatment. new return real dose, and precision composition in the desire

drive by expect differentiation treatment personalized We coming of personalized and have of categories and experiences each anticipate the across our curated, of increasingly this will to offerings main business the year the our in end that years.

years of excellence, of clinical business and a innovation This is in technology. result platform transformation pharmacy,

continues lifting is for of the As the where customer platform to personalized capabilities, and our flow enter business, world we to shift new a & Hims appreciation these value. through Hers known will levels

that improved is possible AI which Personalization background. we've is and massively the the in second spent our building bucket, not data years capabilities without

we As it's mentioned a trademark the benefits showcasing more recently specifically application on plan quarter. previously and Match for next clinical name delivering the Med AI technology and this filed

which medicine capabilities the personalized to single treatments is move to dramatically intrinsic to for customize providers multi-action new enable are our pill conditions. capabilities The data multi-category to third improved bucket and

launched and This the XX% risk combine in least which formulas of one it. X%. factor upwards the one care, and offering ingredients ED approximately developing is like by since the the attack compounded men customers of cardiovascular worldwide is number Our was our disease Heart just death first cause generics found one having states and founding. preventive prescribe extension XX% risk Health for and by enables launches a our of Health into male week reduce newest by foray medications the heart Heart of can last meaningful for most Heart Him. of at debt providers our Crestor, to active that of have Lipitor

that we nearly Hims XXX In products, is technology experience partnership heart the on together and curve does best, of in with The by clinical our College what disease. Cardiology people massive the cardiovascular caused LabCorp, excellence with few patients. market to defending support States together disease capabilities building what And the couldn't work patient is innovative million deliver the will the death the years American of leading in suffering brought and for our of I proud we this And heart do foundational strategic from able last United in be launch. anticipation this alone. more of for over team to just the being be in of beginning for and

from come to us to address patients areas struggling a treatment, while clinical treat with providers & to in other a single capability have For actually the single clinical demand the Hers solve many categories patients support. many. conditions offers now years, to for issue, Hims need which leveraging interest high multiple

and this powerful It's in the providers anyone ultimately Multi-action and our platform, a menopause In such the clinical deepen supporting could disease capabilities customers. customized our is offerings where issues mental across allows the to like of to of issues insulin more or beneficial, more and between a a resistance chronic increasing meaningful we categories comprehensively, patients and to treatments value, stubborn more heart to to address inevitable metabolic help as gain. many the interested weight that management, interrelated our and e-commerce personalized, be strategy. regimens health, as care, sometimes access the disease bundle diabetes to even cosmetic simpler In from easy challenging this the simultaneously, addressing it's customers. are cross-sell capabilities and imagine capability world, delivering for multitude health, avenues defensibility become treatment further and world, more dynamics

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orient better at health. said of mission construct efficiency pill-based to through underappreciated with ensuring is people value start, us versus aspect at to we level is as users I as a the can of pharmacies scale possible. them. treatment-based the great make the necessity to The our enables feel world the often to of Like platform a mission that this many power the our have exceptional our with construct An a reach of of affiliated combined model

meaningful, away as multi-category move will one This with become continue subscribers with further we to more to from treatment treatment. subscribers

this of to market that share reach many months more subscriptions to even many duration and prices excited our part systematically past As mission ambition longer few personalized we're more offerings as we've begun people to our in possible, as make our mass lower of to the accessible. for

The adjusted pricing expanding share and market on and rollout gross the basis we scale allows in process and in access. also while an have expect continue as accelerate operational profitability months which our us coming simultaneously expand XX% efficiency margins and to to to EBITDA been

Hims strategic having the personalized offering that new course are are of market quarter. the already Hers of the loss pricing a five signs the the a impact. with duration strong adjustment over or We seeing After months more, of these XX increased implementation of & subscribers during the points ratio selected strategic actions that second

a that for belief is decades. Our the users unique on is to making that an platform provides for path effective upfront products for and commitments longer is equation remain consumer

of shareholders. reflects uniquely right have commitment and of work the horizon for confident team years the team This building platform will our and a our their our I'm this customers nature ultimately investments time I'm to for impact methodical quarter's the from hard announcement their meaningful and way. thankful to

conversation financials. over discuss further Yemi With to that I'll the turn to

and for behind expectations I'll by today. the start you joining performance remainder our the provide second of year. overview everyone us Andrew. Thanks, our an financial providing and then thank additional quarter's of Hello, details for

through love which momentum reflects across We that strong the are products technology brand trust. & we Hims centers world-class to pleased and Hers, innovative consumers access to continued execution enabling with the see on sound strategy of believe our that

performance quarter subscribers channel. the platform subscribers the The driven million year-over-year in XX% million primarily onto online of by in grew a $XXX.X Revenue $XXX.X online in to of the growth. platform revenue million. to the on year-over-year increased subscribers. Online second revenue quarter. The second to robust XX% was the was growth Revenue our addition continued increased X.X of driver XX% primary number year-over-year

efficiency feedback rollout of additional hair-loss the expanded quarter, launch the This reactions, accessible Notable as and of Hims a for Hims the well include Heart into personalized indicate of of offerings. Hers user marketing across Historically, the the the development Early portfolio, preference we platform. this portfolio consumer & research personalized strong solutions within Health. examples Hers solutions. of these the & offering, gains national we Hers have and new as reinvested solutions

of a platform. decision efficiency pricing We level execution of a offerings record much strategic us, more strong this and opportunities on differentiated combined of attractive portfolio into made the gross subset and expensive our have that margins, more with scale personalized With have expanded. offerings, for to provided investment the reinvest portion gains the

Hims low effect for changes their declined $XX month to than changes estimated $XX. personalized in in These monthly circumstances. subscriber as as online second per Hers resulted plans. across and The access more customers headwind, revenue as have quarter, longer is the of X% subscription health, average that meaningful and some loss $X made per daily sexual to duration online million revenue quarter-over-quarter in an health net & to solutions were improve Specifically, ever

XX,XXX received longer potential platform. our value for Already, enable adoption users existing our quarter. duration across personalized overall strong combined, several decades. our set changes us personalized solutions broader we have proposition, users have believe retain second or on these a will offering the of a to subscribers, solutions, to that accelerate of to We switched with the strong signals in Over personalized

can on At the our This total second signal consumers prescribe. providers across end that solutions that subscribers and personalized of personalized clear XX% all the to, quarter, are were of of over offerings is solution. appreciate our a a drawn

We healthy us while a that gains. operation, combination do market attractive as positions can to in solutions price in believe for at maintaining margins share significant Economies offering that scale few us this enable way powerful match. of points, a unique our

quarter economies margin example quarter-over-quarter, execution basis was combined trajectory quarter. the in pharmacies. than XXX more the result These is, margin textbook the XX% of expanded strategic from move product points sound the our expansion second increased of across lower efficiency base, gross affiliated to degradation efficiency over Our offset Gross power costs, of with Gross subscriptions migration toward scale. a to our second longer in a duration provider a margins improved pricing from actions dynamics and of

margins prices is adjust advantage. simultaneously strategically truly and to a expand ability The unique

is that currently the positions can and Our belief uniquely differentiated to solutions. products, from leading us scale, offer platform personalized for the benefit helping capability this become on to

transition by made Over the pharmacies meaningful the from provides second our the second toward a affiliated personalized affiliated a orders progress in to business of centric XX% We quarter. systemically transition platform in fulfilled robust on were offerings. quarter. This pharmacies

our flat of more new timing the of Marketing Turning toward launches, as was were back pricing at a and a weighted investments Marketing, actions heavily structure. the toward product the end large of of And cost revenue elements brand of campaigns. quarter, percentage result as strategic XX%. quarter-over-quarter

at quarter, environment, the dynamics those as a relative of first start Customer quarter. of marketing the a result somewhat in was to acquisition more slower the challenging

will end that the expect the tailwind provide second customer We meaningful the quarter. at in quarter, acquisition of investments made third

personalized maintaining we Similar marketing, period. do payback throughout for investment launched while is to periods, year. to in so continued as one-year offerings Our new a intend the expectation we prior

the came modest in gains quarter, area potential as and compensation on of cost a quarter. benefit for at the from economies this revenue, XX% percentage as scale year, to personalized costs the in of and gains we support products. stock-based continuing continue see through make efficiency with stable We structure the second first in Operations for excluding

of Technology in in stock-based the at first and the X% product revenue, came second percentage compensation development quarter. costs as excluding stable to a quarter

Continued on capabilities the capabilities platform. investment we science is in upon through and expected this expand augment data providers XXXX, as available to area

and and quarter. representing of the General quarter, to second point a percentage improvement the administrative relative second in revenue to the one costs improvement first of XXXX a quarter X-point as was relative XX% a

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

in scale estimated I EBITDA Adjusted million the million economies earlier. strategic to improvements XX% offset from from $X headwind pricing of $XX.X increased and quarter-over-quarter efficiency Gains second the discussed quarter. actions

investment In considerable the will expenditures we for purchase quarter. greater affiliated personalization that related to future. the of the second million made the and intangibles quarter, into the set property, plant, equipment the Capital in $X.X second pharmacies were capabilities foundation in

second to see generated while pleased are capabilities. quarter, $XXX.X Cash strengthen, to as $X.X cash to to sheet investments quarter-over-quarter future can We capital in we continue short-term the build and million currently exceed our continued expenditures. increased million balance from operations flow

as level that Momentum breadth our is remained rapidly unmatched. of across we has depth strong platform's we and a in XXXX, evolve currently feel capabilities

significant We make in adherence to platform outcomes. access-oriented transformation toward with for offers better the are and an from strides personalized continue potential our excited to solutions that one

access compelling which Equally at to to at which the allows solutions prices. drive efficiency and exciting we pace enable across the continue is platform, affordable unique personalized us

lives. We to improve are more as market ability of will the as feel confident leadership this well millions importantly, a position,

revenue reflects between the of year-over-year the million for Our of million, XX%. remainder In which dynamics. $XXX between these updated $XXX we to to represents are XXXX a outlook quarter, of increase XX% expecting third

million, X% ranges. million EBITDA line between expect midpoint On EBITDA of an both the we $XX margin adjusted the $XX representing at bottom to adjusted of of

increase million range. we year, revenue to range XX%. XX% for million translating $XXX than to a $XXX is updated The between our our full outlook year-over-year of are higher the million prior of to midpoint For $XX raising to our

at $XX EBITDA resulted are an our outlook X% ranges. adjusted These and across efficiency XXXX $XX ranges adjusted for We the the also in increasing continued adjusted revenue million both to reflecting EBITDA margin midpoint to gains business. EBITDA of of million,

half Generally, XX launch from before material expect to contributions Cardiovascular guidance Reflected new XX extremely the does the in categories to that business. not in take from of we No are in XXXX. contribute in back to half repeat our that XXXX. at an XXXX emerged months they marketing the Health least or assumed Weight Management meaningfully is assumption back of the favorable environment

both negative changes revenue of these the impact $XX of Additionally, million and standard the platform drive as both dynamics and customers ability a and discussed. our readily pricing result of access will that generic between the on previously believe second the half solutions differentiated our in have set retention We in year and guidance to moves incorporates future the strategic million with of stronger $XX unique a solutions. acquisition are a less available adjusted as for EBITDA, strategic

in from gains margins efficiency execution adjusted that scale conviction expand of over our us high have enable continue will time. strong and We EBITDA to to economies

better results to result the of Our of as customers to great of ability to as world day our in that support them work the efforts mission. partners strong thank health. deliver through that across and Hims is like all go us hard each our these employees of power Hers well help I'd & of hundreds the

turn for With it now that, I over to questions. the will operator

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

now is Your line open.

for the on taking and thanks the congrats question here. guys, quarter, Hi,

the expanding into. quick on weight Just new ones of that a couple loss you're category

behavior it. sounds as to be But like with to like first. or at it as the going maybe prescription it nutritional seems fitness going GLP-Xs modification of a well at aren't it type these be supplement some there's aspect nutrition coaching, along coaching, like also So to available either

kind of So what behavior new I a dig and more provide nutrition. loss category? this to you're little if wondering in kind treatment going with can and from just on away was weight of treatment fitness modification What the you

Andrew. Dan. Thanks, Yeah. It's

wide options of of to is going treatments some after think and generic with that range likely weight are So gain. I of personalized start what the underlying we're a going factors

what director this Dr. management wide eating our as a of specifically think weight think Craig joined be. hormonal as decades depression is for couple resistance, be approach of mental issues, health that's metabolic unhealthy be leveraging, concerns has going what often experience Primack offerings issue habits. to medical could go weight after this or the multipronged to I is such And could range of treatment So a who I underlying gain.

phenotype It's archetype patient understanding we built advisors leverage well of I the of those action going launched lot some category. same with data to this wave really partnership the that in and be Heart abilities capabilities on, management multi-action leverage of we that in think the those can way a with dual recently clinical and treatment a Health launch and with

highly So and really from go great efficacy, underlying simple standpoint, and a affordable protocols. ultimately options. but But to well-tested patient have of after with a personalized lot and hoping safe conditions and those

Yeah, the makes or And growth fastest which so around growth year-over-year AOV quarter XX% quarter It then since XXXX. really this strong. was came in be would this sense.

a Just little given treatments is curious some AOV dropping that and driving what's per growth your bit? revenue this prices quarter subscriber on lowering

the is there's this for question. Yemi. a Thanks factors. Really Dan, Yeah, few

for why reasons the made really the And the strategic both subscription to as to make attractive so of well I attractive think to one longer-duration is behind products actions as proprietary start users users. we pricing

upfront. what longer with larger commitment products is well as duration coming to users come started existing both so as made as to those we saw we a users And switch in proprietary that

proprietary AOV driving the a mentioned through also to have are long you people That and more as switching for the they are on Andrew that duration fact plans products previously that which of really pay the so customers the… as bit premium a factor those And still at come more is upfront.

make Thanks Yeah, for color. sense. the

comes question from next Wallace Jack Guggenheim. Your with

line open. Your is

Hey, entry. here. on two congrats got of congrats on We've on second the your the cardiovascular One the child. quarter. questions And birth Andrew

part just this the would so Is older that that well in. maybe So, you thought some we And is or product? demo you even demographic outside then pricing target combined think of help we attractive placed of with Thank are this -- the is process? an that about should we how a think any the pricing younger millennial second maybe that with statin, kind is you. expecting this, TAM expansion that of

Jack. Thanks

on it a platform about, think is does that differentiation and think One, the So of overlap with to this excited demographic, cardiovascular does point side older one and we're it I erectile your of tremendous disease. the the right? really I expand because value There's massively a things. cardio dysfunction for couple

last of we've erectile an indicator week, disease. early cardiovascular dysfunction In often is fact, release as the shared in

in something the we're to of men audience general, So of at ability of the also expand thousands today, thrilled we of disease. seeing is risk those shared by. tens which older XX% But heart that really are platform men are we've of in on

be could a of years they so completely And of it. are unaware most a or stroke them couple and away from heart attack of

allows LabCorp best are our think treatment this this personalize to these capability, is innovation together with do tested dual so really incredibly that And and Cardiology well base launch, medications. statins safe great partnering the EV which we what providers and brings I which with clinical excellence American with of with College

And health you meaningfully or ultimately, added from to And support women's on attacks hopefully risk. or think ultimately thousands be mental happening could well people and to eventually I eventually products as this preventative heart and lives. imagine of can that, this other of heart I at tens save hair increase categories for thousands adherence think actually tens treatment of adhere of care

round as possible. so this out pricing to aim And as standpoint is this of to accessible our kind a from make

to so and able still in gross months continue higher some aim I of think our value Yemi maintaining to last product XX% as we've bundles, to high do while shared, prices the margins. record for of couple lower meaningfully to expanding been and

lot us back efficiency excellence innovation capture way and operational more that's us way the a it the humming competitive well allowing business pipe in market share. allows and and that within a So and the into this really to customers take of value is in to a more right

with very that at so accessible. health still will the that that little for is why this be a but such at are you're our a be make premium. that mass a cheaper. priced is market never you heart the right by truly There'll And slight be that very And from it versus aim price hand, the might a premium choosing treatment one base personalized, treatments core is the reason to bit

simply When to, Got was -- of you. pickup and in the the for responding the environment back? that mentioned difficult And a -- Yemi, got churn to play investments That's was dollars so key the back of half and with a Thanks. helpful. in the any little let's trying of also areas there just expensive it marketing some the was this quarter some the you're context changes, you front call the pulling environment understanding in price or in marketing environment get the mentioned difficult it was half. an you dynamics. about consumer thinking elevation then Thanks. you -- the or of the just marketing Just better rates is that more in the there

Yes Jack.

great a think I it's question.

was definitely favorability it And surprising the line that environment unanticipated. with in some for was QX. -- QX think I we in we was what saw expected

and changes, do we pricing experimentation. lot research Before a make we of

conservative more making, of do so, [ph]. to effectively just we prices changes want versus because a months use precise tool were lots those of And in the

consumers what of do look likely very to for basically like platform we time. changes. very We’re longer we when much pricing to few a the a those on changes institute as effectively value period disconnected retain They're

different users we're products, are are we cohorts really products. LTV able in because what the to different highest dial selecting many that lastly, then have so And of

additional to see some scale the we and started As of customer margin started benefits made we our to from the back expand, decision that into to put value. gross

really objective before, products period mass our the first to looking for we're have because mentioned Andrew really users market, to make decades. the a of is As lot

Yes. Awesome. guys. you, Thank

Jack. Thanks

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

Your line is open.

not focused as as storage, as taking cold weight given about the Good demand afternoon. you to available be Thanks management high are Maybe help that off characterization such an with you you can for about area of today? may thinking the as example, X.X, not products the come go weight for the being the GLP-Xs on products But if the bat. I for well I on maybe that GLP-X question. of logistics talked the back how management. know

Thanks Michael. Yes, question. great a

relating tremendous that market today and excitement a as trials dozen there's the the might are well have products frankly to bring market hopefully to think ones likely I an as and that amount both or think GLP-Xs. finishing clinical dozen some in improved up in [ph] existing ties the two And that will are blue of efficacy. pipeline I oral, internally that

mentioned the stay a built storage So in That's that affiliated be these being we to a is concern that something necessity. the will enables side without the as such are feel don't including cold question our it, operational pharmacy operational platform you way and here side. with

fact this just of able that the and last customers couple there I just patients our new is or real And or deliver seeing in doesn't X% profiles coming of issues fact consistency out. are or chain this all X% in to peers reason on supply inconsistent of achieving our a that The get there's or offering those think pulling think result being actually to the a just really you're being it's amount tremendous experience the as back that transparent months, the the eligible with that of world-class are from effect I offering. off reimbursed actually market, quite reimbursement. side individuals feel to I yet who it think turning

that to and months nine only only medicines are is reality that the old XX The for studied duration. been have

the and safe that's going right offering now, in that company, we and market that bring sure in for long kind don't And haul so everything greatest is make to brand we the just want And to patients. asset a have seamless, excellence we and I effective confidence. the the hold here think of regard to deliver our trusted clinical pillars highest over

So we're hopefully are some this they up generations available these to evolving. the likely things but in future part advisers it. will as well, year. our lot form Without are staying We're next out close to the on working there a end with the that we and how to by speed of in be make platform worked of launch of a issues question, on won't sure be the as get clinical

you $X.X presentation, on question hard if it's the fully was year gave that. targets, to get perspective I I $XXX XXXX as second billion, I at bolded revenue. then in Understood, the the which understand of think beginning one maybe appreciate there, And of appreciate But and a I that's answer. least underlined your the so And million very emphasis much I Andrew.

And expansion. that on market well the there of before said, you're this is tracking that's being pacing ahead a second of straight quarter and raised being perspective,

of based you're further when or one TAM? also guess expanding or the about discuss should fact in think plan update I other we you the on that now what near-term terms way to changes your So, that

Thanks so for Mike. the question. Yes much

what were that set $X.X of set the I many the were at that last really $XXX end floors conviction when seeing year. we we us the million of had to different of the compelling in We EBITDA. that line given think so revenue, that business targets things XXXX sight for of around of billion the gave was

give just going a exciting we range off. or on there's the launch We've surprised categories. offerings the business deliberately of taking now new selling the been so by of not with newer in think personalized because I did set some pleasantly the right of much

time, point the as this at But in for XXXX. those floors leave still we

see look we potential closer to get call this clearly update. some our we'll we the As matters going. at these we full for not floors again to of are those XXXX, But can time that then

Kevin. Thanks

comes question Jefferies. with from Santangelo Your Glen next

open. is line Your

just kind that investments you questions. prepared was in on my that It I sounds pricing. your like want taking for thanks to decided make right some of some Andrew follow-up of to remarks. move Yes, it the

to back in you correctly, sounds to million it EBITDA and Yemi that's heard of the revenue like in just going $XX $XX kind alone. I half cost if both And million

kind doesn't related significant to an it like that was your seems like So, of like but it a sounds you're sound it duration increased average now investment, it of of kind customer. seeing you're doing And churn.

the all guidance context you -- well. as just putting raised wondering and of that the fact was I So, this I'm in

little if could more was the that you've I as you So, investment a wondering bit result just what and flesh ramifications seen of out in that of a price. decision

let to lot, the numbers. Yemi seeing and of leverage really it of moving take a because some things add a maybe now. question. at where was right is quantifiable half some great the That's is first the It business been of the I'll those really strategy we've a strength that’s

saw you in As gross record margins. this quarter, we of hit kind XX%

that's the the an incredible which efficiency is very there's on and to excellence the right? deliver think mass hood help market, amount I to taking under operational mission allowing us place of

we've satisfied real past, this in build value country such is a can is household believe a value. the we -- and said We in member every have love and the brand and this we and prop that it's getting and platform where a business is

we the And very much individual aggressive right? find accretive to and go the and we can to an customers' with in note to market a to I think as sticky and so us That that business as within be we for bring back doing a in want meaningful life. clear pocket, way share be is efficiency take that know into offering very

the be of it's be caused behind big the do powerful strategy the investment opportunity. range might one of this like really market to was be opportunity after continues strategy. that so go that feel to the think of to a a chunk able but outside big so, I an given the brand And to I and otherwise

objective said that the as make mean -- for easy upon how it really I to on to decades. is platform just Yes, as Glen as building I for think Andrew stay possible many add possible users what the do as we to that

scale just construct ways really we're we access, that Given we an the longer the faster also where started but how in to we for competing benefits gains products. look seeing no the have through on efficiency personalized out anticipated. we're than on of really come different competing that market are We and have additional given entirely

combine more and to get that more basically be to efficiency it is really more really that powerful also the more come. and as generally what we've When start things those well to you bring our becomes into prices powerful. consumers us into that so we benefits in way market lean scale those really the that to observed increasingly really we a mass think as being able and we flywheel going I get it's And as

Okay. for comments. the Thanks

Glen. Thanks,

Your next Cowen. question comes Kim from Jungwon with

open. Your line is

for my Thanks questions. taking

on? you you I another behavior Just And from the have there around any quarter-to-date marketing uncertainty question are is so the the strategies that any different maybe launches. consumer of, And currently kind there as macro provide and a market forward? will marketing behind sort in Thank you if colors of, that more marketing can, How just strategy. going color you're, what had changes can like you in can seen around versus you changes looks investing much. have? standpoint notable was It around new more be you curious give

Yes.

and So I Jungwon then for it can take the Andrew second the off to first hand one one.

any I the think we've seen pressure really not consumer. on

consumer many income how environments. from really different multiple but across the in gender, I spoken success is think diversified so to aspects overall leasing you age, set we've

of saw saw as we new really take as the This pricing also as construct from quite future. is we then really is actually retention, started the some coming in lean LTVs think what take we consumers actions, to everything consumers behavior signals early the The I of the products, we longer-duration personalized well stronger and from out are those selecting actions start selecting personalized in both products. feel and to strong. that roll feedback stronger includes the strategic existing on

And have as that stronger as attractions taken. we've in of the the so consumer pricing if terms actions generally well anything assortment the a seen result product we of -- both a as

both the TV really a streaming in seen years than marketing. social, on similar today side very the strategy consumers and omnichannel with where they their which you've diverse John last I what are four, comfort right very five really think authentic be strategy in talk is set then of straight to leveraging straightforward And across go-to-market it marketing will channels educate out-of-home, campaigns home destigmatizing of from us the a Yes.

the and I resonates think going what have that the really come this is It's really with audience with value after. people to we're brand. something appreciate

looks think be it so And what like. will I that

And incredibly the of leverage kind on as the or Her. and of health I that's the think mental in in whether been prevalence these lot will tactics of with us you'll these powerful it those have partnerships of also a the historical influencers Kristen see of Bell building aspects include best-in-breed such conditions future. think well Those as also campaigns the campaign I for celebrity conditions. awareness same

you. Thank right. All

Your next question comes Suisse. from Jonathan Young with Credit

line is open. Your

Thanks question. Hi. taking for the

some cardiovascular, hence for cardiovascular most on Just traditional on are but may traditional utilizing from level it into ED away I expansion, stepping bring PCP, of the their PCP imagine privacy in. consumers the

any how about there is you if are friction thinking that perspective? this So your aspect guess, from some I

question. It's a great Jon. Thanks,

do not and the XXs, often the for which relationship XXs, they know the name XXs. primary be of day, that that XXs people that come this to actually with. their overwhelmingly about continues the to every what it and means true noticed This and they case is things even have a have is overwhelmingly, in patients first-time physician platform business a unique is for we've One our And customers. the

many what the for system first the outside in into so bringing are health that today ways, we are And system health doing of the is individuals time.

a with first of through we the brick-and-mortar in had great partnership organizations, that of lot and Sinai we've College network. expand partnerships into that the to point such as building as contact Ochsner be and clinical expand continue American as platform. Cardiology these such Health then and continue Carbon can we believe And of protocols we so the to And –

geographical standpoint, to necessary seen off patients the a from hand that So in in and footprint we be can that brick-and-mortar are person.

first those Hers a & with part do provider an most us us that and coming are Hims doesn't the deep because individual with are relationship issue it's so having and come And a ways directly. for major up of their in not relationship have to lot for that

right people So to those actually expand the market it's the real I opportunity of outcome. get think engaging with ultimately system to those a and share

the we the answer as the on you appreciate one think guidance, your the from And sequentially disproportionate it two-point XXXX, because to should we lingering there million impact headwind on And then could there. be of million. then like about just maybe growth. revenue XQ? down based actually talked about I headwinds to is XQ XQ Okay. $XX think on Thanks. Is a impact $XX that looks pricing to

Jonathan, question. think great a Yes, I that's

and going I Andrew the precise efficiency the we're with to spread across be want these as QX more out QX, still mentioned, as guide anticipating very – impact into to categories We be changes. if potentially really retain will to roll do see think we flexibility that newer our those. only

as as even this what point to all that as Again, a QX a see you'll across blunt start we'll use the the we to we as their collect. start XXXX, pricing well is as feel as higher the signals the use as we're to well message our have time to think acquisition we kind retention, base. continue into of we teams on I acquisition frame to data don't to tool. expect of going head precise Really, We very of tool all get that marketing benefit both

full pressure might to And lock QX. some of the really, see start we kind early But of in so the in QX effects that XXXX. expect in QX, be and there strength to then

Thanks.

comes Your next Securities. from question Truist Singh with Jailendra

open. is line Your

taking just about year I changes topic quarter stay to for my thanks and this last want you thank with and guidance. the Yes, the questions. pricing in impacting

AOV. trends that Just trying strong in reconcile with to

the that's more offering duration that You on headwind and $XX adoption – are it of benefit? talked if year is higher, case it AOV prices saying is earlier. AOV, because you before $XX and you headwinds AOV lower benefit you that for about net longer $X Are the that in million you drove and then the that to or and the million quarter just million saw

the would optimizing I on is that reiterate for provide AOV Jailendra. Thanks question management we while Yes. definitely AOV. statistics, not

as comes of look basically in monthly the we're share LTV total for a cumulative think optimizing total which as I average what for really of customer the the revenue customer well online the like. form the

rate makes essence upfront. AOV you pay to a lower, they to a in when but customer per what month because higher. That they're dynamic monthly That be drive their committing said, upfront, starts AOV the the may commitment is more months

to that range all million in the fully think I takes so comprehensive $XX the And and different we million that. $XX that puts is the of on of gave guidance

then, on bit little my all -- also you're And a personalized Okay. follow-up but of investments platform view, focus on not your providers only training about platform. a bringing lot of on doing you're or in provider the and talk new Maybe point treatment. more technology this terms

confusion some medical you that, groups been? recent structure was spend can and on to all the given has concerns, your I related And that the affiliated on with if time partnership relationship wondering,

Thanks of this goes across lot Jailendra. that platform the There's into a education bar.

because kind and bring lot of a clinical a protocols So as well best-in-class lot we as be, together innovative. should directors walls truly of leverage this our of the those to academic outside is our what medical of partnerships

that health an are heart example, for critical underlying partnering or identifying was having. American as factors And the with risk in these an the Cardiology patients underlying

and gets So there's into built trading a into actually EMR big coalition building aspect this, of and that then the consolidated programs. down

clinical for patient. are So able about are the choices the best guidelines, providers the informed feel teams these fully are and and able to appropriate get those practices they independent that to make

more pharmacy the And treating capabilities expand And relationships and always ranges, expand how patients this generally worked. has as the after to platform and providers is it treatment the we holistically. allows these go

right. All Thanks guys.

George from Hill Bank. Deutsche comes question with next Your

is open. line Your

Andrew and tack guess self-diagnosable more new I'd first, the like one product of for other are for of considered disease market self-diagnosable, on so and company think I states into cardio I growth. the taking or initiatives, for Yeah. the Good with you about states questions. one getting how that take thanks the and the And I'm go not have hear launch typically to opposite into that evening what feels the you Andrew, guys cardio behavioral disease for product going guys like to kind are Yemi. not can it love my

the I the like on this would kind expectations in pieces that's kind question. or year? of in here the $XX but any the color. repricing the headwind just Is want a from And the million housekeeping parse out the back appreciate bit, to $XX to from a of solely half And half the year, parse to is way is of of a there little then the initiatives, tough headwind back Yemi XX I kind is -- comp splitting of million know the repricing out the a

Thanks George, great question.

gather exactly right. first requires it with patients involves at collaboration. analysis requires of in able actually consultation launching I one deep a that such the the you're risk. to can It able allow of to of then into partnerships completely them. we where think predictive categories be integration providers third-party a This more that kind these identify flow It data I identify risk outside is the and patients way at one in Labcorp we're to that coalition as of to be think treat set announced to

a system from easily replicated think care that the that categories replicated this play infrastructure think country is I And we not can most of I remaining health that in launch place put with the we one in. that standpoint be in quite actually. in the are

This be could this like could and be menopause So diabetes. metabolic could This This hormonal could insulin-resistant things disorders. disorders. be balancing. be

patients conditions launch a weight We've relationship bit as that similarities management. diagnosis already launch validation the the by lot the the with a the ongoing treatment chronic have then of about yet spoken Heart the business Hims. But obviously and Health of I quite in to think has into

And the truly were of. with treatment patients pill personalized even for that multi-category engagement benefit. improve given coming We that's that and the can single retention possibly side be think learning conditions think even customers those more in We other unaware the it, of situation it's ultimately and on a leveraging innovation a going patient is then and a to I think but value in for treat patients. be adherence we then years pharmacy they to And that these and might for replicated. of believe and this a in treatment about, really massively so a riskier the deliver for ease us diagnose simplicity interested platform that categories template the ability to a innovative the

this XX% upwards said think, of or I business I've of of So the traditional the health attacking is capable from the XX% system. care beginning,

you'll capabilities platform and prescribe more or be treat I whether and best-in-class then and these and and to ML third-party through individuals. Labcorp, diagnostic tracking through individual, cetera, patients the on at-home, as these testing systems et and better integrations the or a more think truly sophisticatedly data-oriented clinical able guidelines level, more offer it's through leveraging or the on treat watches, these go at to diagnose Apple really

next make mentioned we filed I the is appropriate So of But and We around the the we're appropriate to big part to lot AI where of that the this be quarter. informed more and decisions. number name in trademarks predict going think MEDMATCH the treatment that's sharing running provisional and technology a diagnosis of a providers to help towards. ability are a clinically

new in get year. impact $XX at different base solutions back And updated majority million from back that question of the exclusively There they expect skew is some will the million existing the that select we well mitigation those of existing folks the some the to personalized start shorter from mix on the of those just to and and offering the will duration upgrades already as half Effectively some of pricing. as be of products are switching of that for solutions or range the more your that a $XX then correlates users of the renew, George updated SKUs to as longer half the continued are pricing. generic with users towards to duration starting pricing will the the repricing

the guys here. kind Like to markdown a are of just percentage price Yemi hair quick follow-up on did the communicate willing Maybe price -- the what's net what's like of you impact Okay. perspective? the products? customer you

Yes.

And SKU it in I precise Like to did we we're go going it don't think I very way. by think varies. a SKU.

concept like to remove [indiscernible] offering they is particularly number to things the having or package you did, to stronger remove customers dosages But get that one given overall at truly to things need. the that treatment-based relatively get health. many and genesis to your ensure general offering solution we the we able are So just started to start wanted of sexual and as complex we the of to into pill-based premiums SKUs what a the on

the did make Additionally, the just price what also attractive. point is to we started we SKUs for personalized more

XX% duration some XX%. north And so the can a to for instances cuts SKU in of price be of the longer

very much. you, helpful. Thank Very

Sandler. question Piper Your from Wolfmeyer comes next with Korinne

is open. Your line

taking Hey guys of forward. good Thanks I'd quarter kind like margin know to afternoon congrats And start have deck down on question. the to I'll kind At I going little XX% gross had for outlook as break the seeing more bit guys. and quarter. point, and I are for a you're one of it degradation. term question good just the the you on stick taking a the to that know think longer slide pricing what well. talked a plus gross that about we down range margin going I bit.

not going still pressure seeing margins, That's to innovation. more adding but we're about yet. that talked You've

margin you. thinking be going that of into quarters couple gross XXXX? forward we should how the next Thank just about So, over and

Yes.

efficiencies I think, continue unlock board. across to we additional the

And from whether that so things see in think point, shipping. bigger, vantage We'll to in that we'll -- costs, front gains our hold that's us, I the as efficiency we form optimize. lower on there's us that of still continue meaningful of we think of get opportunities I product

around not And investments to bundled pricing, be can just going to loyalty as precise. multitude gross thoughtful. programs, we be points we think category can I run to going the of experiments how for into come that margin do very very be it. think look Like, a We're really up and things going we're we're offerings, assortment. to give the

different quarters start I to to couple least really all those take factors. those a of things. going to identify That's think weigh at we'll

And going so, it's be not to a line midpoint. just the necessarily linear to down

front to As we're think be way steady. there where might periods there do we we'll it of I gaining continue we're look a are remain efficiency also and us. same this the of that testing the somewhere quarter are thoughtful to to But way in definitely things it actually get think very goes customer. as efficiency the value precise up, around gains back time, to is But time in at

Thank you.

Partners. Ivan from with comes question Feinseth Tigress next Financial Your

open. line Your is

said, insurance Thanks for be for looks that's to Like things too, our taking like Can very on opportunity you you modification. heart also platform some of cover the to son lend that do subscription I for ongoing the example, itself traditional a a and of would platforms an a like with would on going for it have And a management need my help track great but product. like like health dysfunction diagnostics, lot go the lot heart what to to get out subscription-based another that, you are products of of track create and subscription rectal great with questions second little envision and and applications kind of partner a great all some you're of indication congratulations kind clean habits to you a there you providers because can And is of for if your times it you and think loss are would and like patterns health. food as eating so and more have are of into of detail news. part that AI weight further a it EKGs that health. diagnostic, then great birth also of your data way to to success things pricey you heart quarter on logs the more kind the of you have your learn

question, Thanks as Ivan congratulations for the and well.

on that by. were were really think both parts of things -- the I the question on excited

pill-based there's pricing changes single to per necessity you point, approach more when calorie be physiological great X,XXX, sleeping offer so how I can from about us here. So, holistic Yemi allows not treatment-based level the a There's XX,XXX construct price these nutrient things, a not And subscription intake, and and membership steps the really level you your to pricing is about value on construct. doing great a weight X,XXX management, side, the offering to right sleep. you do There's pounds. you're right? great get that for spoke There move day. those to shed these right? of think well and move all body And subscription is of what mean, that requirement will if kind for but necessity a

partners of necessity so us And comprehensive. the outside And the think Primark of to to side and the able it us is inform those educate of been house have factors. all Wave Dr. able on management our I of on as kind been

and expand core over weight great that holistically And et gets see such health, these broad you on outcome. set be could increasingly on a for could nutrition, which coming appropriately the that of you'll become management that you tracking dermatology-related cardiovascular be require approaches. mobile the to app that on could cetera that absolutely does expect to So because a issues can has we more the dominant really content, quarters, be of tools, represent destination customers, each should

comprehensiveness really spending the and lot that's subscription the investing on a by time something in. of absolutely we're So and excited

to then outcome. them the And ultimately of This patients opportunity on we personalized specific and as just inform which decisions to house, AI tremendous with talked Match. treatment make are the us better using little side Med of great be we could diagnosis get for in AI going outcomes patients really, the and which house to informed help better that's better there's really result side more of on treatment options expand to of treatment educate specific providers about dose the a and already what a about amount a bit great

outcome best have the and house efficacy adherence we once you side patients predictive inform of the the such and the drive to right that they can lot get the are things patients can can and also build, front currently started in content on treatment post-treatment do that possible. are actually better to you've abilities But the And really building and what outcomes. better help of a ultimately of there's

excited because medical very eventual quite treatment to the diagnostic early it's increase and think business we're overarchingly from most on days as it a but front, things efficacy the dramatically. to it's I ultimately can frankly of improve about So adherence this experience one

-- obviously health go heart weight hand excited heart weight and hand. in and I'm management health you, for management because

a sounds opportunities. like this So like it up goes tremendous of new platform

So congratulations.

Thanks, Ivan.

call. us This conclude today. joining will you conference Thank today's for

may disconnect. now You