Hims & Hers Health (HIMS) 6 Nov 232023 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Hims & Hers Third Quarter 2023 Earnings Conference Call. Please note that this call is being recorded. [Operator Instructions] I would now like to turn today's call over to Alice Lopatto, Vice President of Investor Relations. Please go ahead.

welcome Earnings Hims Call. and Third Hers everyone, XXXX Quarter afternoon, to & the Health Good

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

current that regulatory are that I other to We and made it could legal competitors assumptions of update after you risks constitute cause in obligation market, result information, and declarations. this materially. Andrew, harbor things, a statement publicly projections and new statements no to Certain in remind presentation expectations Before or vary I statements to this future subject otherwise. are and as changes of uncertainties need among hand call, any forward-looking cautionary over our based actual of on, safe and future and results forward-looking take whether to to results events

and risk table forward-looking our the comparable for today's measures. website most today's see Relations reports certain non-GAAP reconciliation you a filed We to available release press to relate in XX-Q Investor for they financial GAAP refer of information. most XX-K to discussion financial statements. and we measures related reconciliations as have the Please recently contained directly presentation, our on In factors

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

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

our & At to Alice. you, to Hers, power Hims is health. the world make better Thank great mission the of feel

exceptional. mission the we Execution quarter on was in this quarter, board. the delivered This across third

across sexual women care points compelling resulted for of both offering health. in categories, and increased mental at unique and Our share health market men solutions as such price personalized

the offering health subscribers Our triple-digit maintaining mental XXX,XXX growth. third quarter, in while surpassed

in resonate more personalized to expanding consumers, quarter. third and continue performance to enabling us our third Our was million. year-over-year X.X XX% the with million $XXX.X solutions financial and offering the Revenue of quarter in to surpass up into And outstanding execution translated brand more subscribers.

million $XX.X while adjusted third $XX delivering quarter relative In million the last year, strong to growth. up over of EBITDA, simultaneously generated quarter, third the we of

Our efficiently the model testament of while profitability outstanding and our the a execution improved strength size is to ability demonstrates of and markets. team's our both to consistently and expanding the grow quickly delivering underlying addressable

number unmatched across Continued provides quarter, essential us to performance. third progress ability strategic milestones. conviction share financial robust a the continue long-term personalized market in with delivering key our to drive of In strategy of initiatives to higher our and achieved we care

nearly expansion contributors third earlier and year-over-year our subscribers the hair dermatology mental health in to within third doubled success our were combined quarter. per key quarter, in the the continued in First, solutions with this of offering, strength women's personalized year

towards of are quarter-over-quarter, these With high-quality most business lines. efficiency our pacing offerings metrics improved economics optimized the achieving

effort expectation we affiliated Next, filled third Nearly affiliated is pharmacies. orders it XX% verticalize our of and our meaningful through pharmacies, all the gains drove is this the in offerings from in of it we further majority strong that pharmaceutical by via have years in conviction of by affiliated unlock the unmatched making, The year-end. in were our filled our quarter that differentiation facilities capabilities the be to will completion market. orders nearly successful and efforts will

healthy pharmaceutical deliver management pricing. treatment market and binge we will out of deliver will generic metabolism. the a treatments Lastly, mass eating believe in at Leveraging on widely treatment cravings, studied and comprehensive sophisticated weight portfolio coming this by offering. we helping exciting curb completion efficacy wave weeks, Rolling pharmacy reduce neared management compounds our supporting capabilities, offering

today clinical of the we've and foundation to in in XX,XXX across our brought center key capabilities interactions, that building our Since all technology of of our stack. believe sits strategic and initiatives, per within execution In that a the addition We quarter innovative over innovation to that expansion provider inception, at third consumer deliver care. the mission key proprietary technologies ongoing is unmatched powers platform invested the visits our exciting day.

Our nearly with and personalized platform now deliver. accelerating And X the meaningfully development. on it providers the of solutions undergone of breadth platform has services, quality the years care is offer, we of can capabilities our

the personalized anonymized of form marked treatment of clinical Last data outcomes a patient points. deploys in quarter historical medication service treatment of launch of most We MedMatch is and developed machine that to proprietary platform. factor. from decisions MedMatch. the and identify and learning and our at technology outcomes With will informed be the formulary of patient providers and treatment person collective intelligence treatment evolution optimal better core visits, for demographics, MedMatch & to MedMatch thousands Hers result the of the connecting knowledge clinical millions the is and on types long-term with the right millions beta against a happiness. clinical a is of recommendations and expansive right by significant greater dataset will dosage artificial of patient Hims to likelihood the supported particular platform, trained being believe

effectiveness Our treatments with expanding the a them. choices confidence opens more as which leverage for incremental providers customer, maintaining of as help to the identify consumers specific interactions worked robust while will well portfolio quickly inspired to of of highest the increased patients provides for standard door in continuously all believe and like we ability treatments This consumers. technology to is with solutions safety treatment privacy. personalized has each more result thousands of learning, that MedMatch

are for Psychiatric and the for a of be side of and range along with provider of patient frustrating health. wide around conditions customers varying most degrees We a and dosages, process-oriented mental pharmaceutical support experiences some full can disorders feel trial for error. expertise, and treatment of in experience long, burdensome, effects often mental like formularies with seeking deploying result initially MedMatch health

aim recommendations providers providers Hims improve & this alleviate cohort, increase the better entire utilizing the In knowledge MedMatch error to platform. overwhelmingly improved remission insights psychiatric for clinical the MedMatch to remission beta, we and of Hers helping months time and with collective trial and that initial customer of of MedMatch, this decision patients, rates, leverage patient to With the are ultimately outcome. will delivering, satisfaction. likelihood initial believe their speed a is we which insights Within

that provider, work. more in patient At the not be to excited care MedMatch our in ability patient improve X trust, for a their to solutions like and transition of critical business care for component of the to believe personalized heart that transformative the amplify in innovative application impact usher they receive. is solution of their has the trust in platform, will the platform. a patient health confidence truly earlier, level as have plan treatment bring their the be and of of the personalized-centric are a will billion care condition could around to capability on Capabilities our the MedMatch to We an unprecedented an people mentioned I globe. outcomes in almost impacts and

With technology long accelerating I've and and technology As more learning, with AI said & empower personalized leveraged Hims is and beginning, accessible patients Hers machine our unparalleled advances treatments. in today's to from at an pace. providers both the has

can care proprietary data around us impact is website. every workings deliver new expanding future available population accelerating customer details transformative are As of our and the the outcomes. grows, deliver to on MedMatch our More helping MedMatch on the into by customer better our inner and enriching

a stronger, levels our customers to reassert pharmacies wellness Before treatments to ability at ability our pace position grow to to close, at rapid a see that of increased market. market adopting to I levels capturing we result. and excited wanted innovation which value at leadership customer are our innovative our mass-market to confidence in rapid position give categories, trusted bring the term. pricing, health brand bring outstanding we're and long will as already affiliated execution leverage for a I our customers Today, overall us for only per and share across will as tremendous our products personalized market further With the our get

and to in accomplishments beyond age already These what value. will sheet. high growth an enabled we more to balance strong have the will And for ahead, to quality deliver In conviction healthy to AI clinical which our technology us approaches. repurchase MedMatch widespread, providing closer their and cash become below be like our intrinsic to of well stellar as our be flows, a trajectory the breakthroughs we market strengthening us shares performance opportunity light recognizing revenue we brings consider to ability we enter well traditional on bring of care have new our taking vision our

years. innovation up of The without allows and to the act opportunistically, we on will are stock of ourselves us the prospects wealth a of on next over X the to allow the momentum to to in act business opportunity need sacrifice give us front our program to million $XX solid purchase To flexibility durability of that of or either growth us. sheet balance this current implementing

execution to our will turn shareholders I'd and further and the focus, for exceptional their that, and to With over for like trust conversation thank our partners discuss financials. team Yemi the to

and our personalized start for robust such by of you health such sexual Hers year. into health, dermatology solutions continue I our scale. in & as health, remained longest successfully our subsequently today. see brand. third and and strategy backed enabling Thank rapidly remainder remains details newer world-class to and by execute third and Hers will tenured strong Hair we quarter platform quarter expectations a through to performance offerings across and personalized everyone, the of as across Andrew. Hi, continue unique solutions excited Hims trusted our providing across us for joining to additional Performance a to Momentum the offerings, and you, are the thank delve incredibly as we technology mental access regarding cardiovascular

market to the with third world continued our We XXXX. base of and of growth team our points is the online Expansion XX% Online consumers at online have strong XX% the subscriber revenue significant that price channel. $XXX.X personalized increased was solutions Revenue of unique to equipping million quarter our top year-over-year strength provider primary of driving to attractive out conviction share to gains. quarter with in driver up ability remain high offer the continues coming million, $XXX.X the from platform. third across

million X.X to of over subscribers. Our quarter-over-quarter grew XXX,XXX subscribers subscriber net by north base

to the revenue increased in quarter-over-quarter and taken personalized quarter. strategic adoption Monthly as longer-duration slightly a result of pricing average online subscriptions per we saw the $XX second as greater subscriber actions of

centers XX% with acquired prices. of in strategy for offer at online the as products to robust enabling Demand care compelling to provide across effective Our platform treatments. the personalized third around customers unique personalized from over quarter be from and high-quality providers well continues revenue products as coming

over Hers increase across to mentioned, which as of efficiency to that This of the previously continue end of affiliated by the for across our time believe we As through, that expectation number is strategy XX% personalized few ecosystem, that September in this strength breadth the Over in the Andrew brands year. offerings the of match. significant enables is via walked orders our engine were Hims the we & can bringing the market our was technology a facilities. the a greater milestone platform. our the target fulfilled it accomplishment leverage capabilities and ever-evolving of of underpinned continue affiliated will in facilities, This expand that is level

redundancy. small At percentage our orders affiliated facilities to of all of expect the we XXXX, for a third-party fulfill with of through orders nearly only conclusion

Our XX%. gross were third the ability expanded scale and seen power basis margin over Efficiency a and in as model. such our shipping of to areas quarter expenses. product harness gross operational our to reflection the economies XX the performance capture quarter, margins gains of points quarter-over-quarter third is In across of cost

pass stated, these XX% similar of done we target experimentation what form This product extensive to can over come gains back price by EBITDA was we reductions, assumes quarter. add-ons, time. all a As to that the have informed long-term of targeted the consumers previously margin in adjusted value-added second services in our to XX% portion of and

extend of that provide will us this the to that each confident across are conditions our continue market We for. leadership to position enable solutions we

at structure. momentum saw Shifting the continued revenue, the XX% across XXX subscriber quarter-over-quarter base. gears basis last points flat solid percentage which from toward throughout year. a compensation, Marketing quarter quarter our and of excluding our as third cost exiting second third down of We quarter, the stock-based was

moments multi-condition Increasing and across becoming of society. relevant The a our third and than while elevates per provides and reality to period payback of TV investment media, our fourth increasingly most us sporting a stream in XX still successfully are as desire of quarters educate offering the value lifetime TV when and channels capabilities some on users moments such of invest the our longer-duration maintaining all customer brand breadth during flexibility events, to the result culturally months. brand as less

will affiliated support fourth as high revenue of awareness investment increased compensation, was as have capabilities that begins in over of and get than quarter. area broader investment our to at percentage revenue, to were well across XX%. to as volume volume and a mid- Operations of facilities conviction the expected We platform as to Staffing the increased continues to leverage excluding we and stock-based through increase this term long this faster consumers flat a on levels the levels. our quarter-over-quarter accommodate accommodate in increases scale brands set

was percentage the at costs and as flat compensation, quarter. Technology development third quarter-over-quarter stock-based of revenue, in excluding X% product a

We areas: first, machine pair and X second, organizations to will required continue with data consumers learning personalized in providers personalized tools that investment and on efficiently evolve Investment offerings. this concentrated key to are equip our continued right with expect focused the enhancing ability expanding area. the science talent to in be offerings; our who

stock-based XX% as the and compensation G&A quarter, excluding third stock-based including in sales of percentage was XX% a compensation.

While G&A we of contributed the area to over see gains time. expect disciplined leverage Efficiency quarter-to-quarter, million to this toward generate EBITDA is quarter. costs fluctuate ability an $XX.X growth adjusted our continued may in third and where

to strengthened our balance fashion, a strategy. invest acceleration growth sheet, the drive in growth substantial ability are our in profitable unlocking further We pleased of has to continue which including areas, opportunities our with to personalization meaningful

on million believe of quarter-over-quarter to we scale $XX and excess quarter. increased from of potential $XXX flow result the a position well $XX a through for property, and are was short-term unlocks operations that As gains spent of drive we our the investments rapidly ability the approaching of in purchase third quarter, in in $X.X strong million growth, to the intangibles equipment quarter. We the third cash over over efficiency profitable million our Cash million further and in level third automation.

cash of capabilities, opportunities provide consistently while share. market believe enables even personalization automation take us extending ability flow Our to greater strengthen drive moat we and a to these also will which advantage to our strong further our path

earnings our on on an priorities will out be as shaping year. provide We call. up strategy XXXX is XXXX we clarity exceptional to lay additional investment our next quarter's

trust. We underpinned our a are the personalized care. forefront consumerization at places toward and around transforming of a platform-oriented capabilities consumers us rapidly brand and that differentiated love unique brand offerings and that believe of and by the health world-class offering, increasingly We operational technology

the be EBITDA X% the of at midpoint XXXX. expected to outlook to from million of our XXXX fourth representing between We is to million, $XXX are an XX% In are between revenue $XX fourth XX% quarter the adjusted EBIT raising these representing and increase expecting ranges. for Adjusted a million dynamics. margin $XXX we $XX to of million, of year-over-year quarter, reflect both

benefit year share between representing switching we an EBITDA a and These the completely the pricing greater XX% toward of switching more million SKUs million, increased year-over-year are hair, net of be representing of of ranges. revenue conviction $XX well For premium SKUs second accretive taken quarter full third a saw strategic is and $XXX the XX% headwinds XXXX. and dynamics EBITDA products. period. million And provide In increase million, a we to XX-month expecting from across midpoint within with quarter, margin in X% sexual users in actions and $XX XXXX, from to existing adjusted pricing be both at adjusted we expected quarter conversion $XXX longer to between offset to the of a in and expected will resounding users almost the a that the of us health duration personalized the third premium the of

quarter. performance the experimentation guidance sustain implementation actions. diligence before exceptional Embedded in course the is that Strength and pricing of measures solid. in rigorous be result strategic the remains continues and the momentum dynamics area over across several fourth months assumption the Financial of this all in of to these was our the

we first quarter momentum fourth the of result within quarter could As trends, net as a income expect early positive of attainment XXXX. Accelerating the these of half generate as of our first this to of XXXX. bring milestone

platform, position strengthening cash continued and While this firstly, exceptional in generation. our an balance through provided our retention; our on so life expect which is milestone acquisition our sheet early and we of our more market to through value customers achieve secondarily leadership cycle, on will remains, company's the of flow drive stronger the extending on focus elevating

net as approach input following an be output opposed positive our generating to of positive will priorities of strategic EBITDA. income of Attainment these adjusted an

of that drive them of day and We the efforts health. all look the of world I'd to support our to culmination ability customers and partners of exceptional such power mission. you work thank the to Our feel Hims on our is each as across in as that keeping employees performance of well hundreds our better updated for to great forward of progress. support our shareholders Hers the like us & help appreciate the hard

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

comes the of question of line Santangelo Glen first Instructions] Your from [Operator Jefferies.

quarter. was longer-term got making investors impact price, traded it And way Andrew, intra I couple. that operating leverage. let some mean the quarter. a me the the saw margin announced Just on out the stock concerned you obviously, obviously on start investments company essentially, very last with when about the it

now said he -- XX% Now us you've in personalized personalized you give of treatments. the prepared and your this And gross about impact on products the defensibility solutions. I lot from these most talked on these Yemi. call some remarks, are some having question specific revenues follow-up a coming the and for maybe Could and Yemi's think which all that's margin? pricing pricing we have just a can of you're gross And assess the then personalizing margin so the examples of your I

with in really situations, the out talked in think patients able predispose take form at disease. us for cardiovascular first and treatment the category. I'll that composition treatment back, the either is being in We're supplements let in we rolling part we're coming dysfunction a are tailor dosage, to quarter about product in or of generally the Glen. I Yemi Yes, some seeing what the to personalized or across categories erectile ingredients risk last material factor, treat also treating multiple men different like And

doing because what treatments as is So steady get the is to actually happening to much we're systematically board. seeing that to this state people This happening the just we're make custom faster. get making remission across or ability those of is a

is So as really hair in an in of hair men's and some as and menopause strength couple last compound. newer our pharmaceutical supplements categories health the hair of last women's are we new serums as happening well which or for as of highly as men's even released custom launched The for on the or side, just same hair example, regrowth the situations quarters, for which sexual great are that across side topical thing such postpartum. ingredients well we week, oral in-demand the combinations blends, women

really usually generic customers, what a deliver in base we're just the what base even to Xx in and most would flexibility overwhelmingly therapies generic to is able market or right? that and being is the X So valuable choice combination for same really or these that is at price than are cost. of cost Because unique customization just is better situations, itself seeing in and that

personalized model underlying into overwhelmingly, strategy is stickiness it's I of in our but really this somewhere as flexibility, on the on dynamics ultimately value that much else. treatments, the can think focused we And deliver can the changing our quarter care given high, an all of as is for those of much great care, products. those to products more that you saw so the as importantly, quality these demand quite unmatched And platform bundle we get

of second started rapidly the to way greater we us to structure hit certainly moving your efficiency And I'll orders from and of part well we then And the learnings before. to of that's affiliated we cost additional had have that start that more margin Glen. now the personalized we that rapidly for scale products continue get that many as the to gain structure gives XX% is And to that to scale products north start comparable personalized think the the efficient. the the we in around scale, Yes. pretty as pharmacies, as see those more a as of of product, that

back what products result create gross to match those effectively, through towards earlier, generics. so in realizing doing price and just but we're cost the you're for a the even eye those consumers, try more the we those able mass efficiencies continuously games as also that pharmacy others very and those leadership -- market to I to And traditional the And more won't value to the expand to are because back from margins and see structure, affiliated pass consumers, us with able setup. levels concurrently of capabilities got to go our even of at that, cost is of given efficiency it's really put points enforcement the mentioned hard

if quick on follow-up those Yemi, could I details. I you appreciate all that. just X ask

on of then And to less you line? does get remarks, leverage And those better And there. have a a mid- adjusted start XX% cost the marketing what the mean? If quarters reducing EBITDA for we percentage to able expect in X So to it stop I you'll term. revenues, row. been over continue that should in for your margin. than that sounds exactly of over leverage long at, expand period by I'll products with to line? about to a the like expenses prepared on maybe think personalized a they've you strategy What and when the you year, though on said look But marketing be just the example, get investments gross your that as payback the

Yes, question, Glen. a good

currently putting our So investment at just more started we way that consumers cycle in marketing the strategies, that capture and the I their around we're life journey. to to stages think brand more increasingly, earlier think into building

And of scale as more and learning midpoint so journey that we've efficient started as we've to last started we kind the to those. really more continue gotten of year, and in gotten

start As think to points what's you similar of generate were to awareness, we around the need each don't to point as get year we last look that to required degree a where to when of year like XXX levels just brand. to that hit you the year, necessarily able at starting continue we're leverage year-over-year spend same this result on

for And so how very we're continue I think that aggressive be choose invest to still with we to going to growth.

mid- not making aware line our the we that needing amount marketing value of some branded over really capabilities. long get start same on expect to of just year the dollars to over But consumers in from to [indiscernible] do term, leverage of the result generate midterm, to each

from the Grosslight of comes Daniel question next Citi. Your line of

on frame. I'll And marketing weight that's loss can January December, here. to question. on a more ramp marketing around the provide I'm details the time specifically. on quarter Congrats strategy another especially up program in the it's going strong market, very you the stick the [indiscernible]. crowded some if I with assume curious

bit to maybe high. tax that are be a assume going I So

And categories? impact is financials? you think So the I your begin weight marketing current strategy to nascent will different when your that of how loss for do versus question guess your more some is,

half. maybe the first take me Let

we're version a the next price remarks, with in that going a to in we're we have mentioned buy. which very results, compelling yes, excited out to We offering which consistent the prepared weight So market management it's of really fantastic. think at really weeks, mass as pretty point couple of first is hoping get to

focus marketing last had, had the think it, a of health expansions is gold I couple ruthless right? of we all stage it's standard the to across women's gate what which unit would are. a have approach to that's whether say the standpoint, or years, We From similar dermatology mental we've category economics on fairly we've in

X those a at is We have of launching test levers improve gold need the really that into to to a order categories understand the scale line what category, the looks of growth to that ultimately unit in the are And category of the like. first that lot legacy the to at trend driving optimizations for like experience we months X see business, customer economics. do to robust the standard towards we to to what

a cap period about marketing. but kind value look of look of talked ratio. payback over We Yemi long kind term on as lifetime we obviously at type that, also a

And different expect gate we And of amounts to built X more in small and as those months, the X would fairly to understand optimizations first that we as so I met. unlock stage spend need unit current will and economic the the then ecosystem we've profile, be capital come.

time that typically to impact. To the the second likely it part of just financial the takes the question

XX that around launches category categories the That's mentioned, is impact. result generally XX process the to expect for to months. accelerate new some pull safety stage assumption show the the typically for that assumption months is significant but sometimes default gating XX we to XX the and think a seen forward that Andrew I of we've

on pricing sense. Makes strategic X maybe another the you then, headwind. Yemi, And for Okay. adjustment

million quarter, $XX kind expect to $XX to $XX still to we million of the was about $XX rate quarter? think run the that think should heading the What I in XXXX? said headwind into last that how second million? And be you Do headwind half. million this you of

great a question. it's Yes,

few behavioral base fairly headwinds. the minimal patterns of we result I think user across a a run saw that just different

that outlook of rest year. able was behind for reasons of And why so the the were to one we and the the raise guidance the

that quarter, degree a also anticipated I factors was had And to when that so not few some guidance, but think we they that into of occurred. we there which provided this played the

product, premium we less actually thing existing product given One as see we opt a starting duration for but users more lot again, premiums we the longer the to a as share generics greater on personalized saw just well premium we the users that, a a personalized to the those that that that from are to price points and And subscriptions. that skewed a of of were put at. the of thought SKUs, carry benefit as still subscription select switched result

renewal And rates. rates at many for are some of the the then legacy renewing of lastly, cohorts, them actually the cohort, greater

of X expecting the embedded headwinds we then likely combination dynamic retention I think and you in largely of hit, the And the be revenue guidance just that tailwind we're start lapping as very into that dynamic. that to offset that on our average factors in second after a those monthly half is QX to so see longer-term the full pricing sustains it's the subscriber And QX the benefit well. that, XXXX, per of get

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

the Congrats quarter. on

wanted of little changes reaching Just dive rates. there spend, was thinking channel I Anything benefits fourth quarter there customers that a different marketing strategy. was if of ton wondering of we development more to across and It like categories. testing that in there bit and if, implied the was in through different pricing to aside channels new just terms second it's guide, from the and higher they all messages quarter, sounds the subscribers a the you saw coming of whether and retention where any it's in are. whether in would on there be the indicative saw better additional messaging are that yield are the

I'll type Andrew. broader maybe around Yes, think pass then some the over strategy. dynamics I can just marketing Jack, question it with start of and I the the to

of changed. products I is just seeing are think mix users things that the are selecting we one has of fundamentally that the

months point, at with And as and are that than what conviction. so while price pricing around are reasons points the more the users that's the price more up. user course of we the over historically And per seen is lower longer that. towards for more selected as several well personalized one behind users are of more going them We've putting average duration so with inherently product they were, revenue the changes going attractive the

we I've longer half changes, of of the ability as sustain we the those we think in view in and fourth the benefit And will question, do. just a patterns benefits then XXXX, hit back so from quarter And course the the retention start when that we to do beyond. to mentioned the that prior of result really to that

in a substantially products, which thing from standpoint, other think from up quarter shared quarter. I from we're mentioned, -- remarks for I last is new coming Jack, The Yemi quite efficiency the personalized marketing orders

efficiency We there see in that get with really a products types also large to to and of chunk of just majority unlock what and else products that deliver and the marketing than value personalize interest impact spend. are the a would a know large And but and provider, otherwise ability the -- from does pretty of we business you the expect in the and capabilities meaningful of be have standpoint, year. intrigue these is coming efficiency demand more these on somewhere types a can conversation the have actually a

of cross-category intriguing level And allowing more treatment, are visualization you compounding single and trust just the can is hood this flexibility factors form and capabilities customization to you the under or doses that individuals. interesting the that TV when built story imagine and of that in are and see the into the commercial,

into definitely And spend incremental that couple adds in and we've addition to kind noticed think so customer stickiness as in customer the is of continue the we a something of that tailwind quarters. next retention happiness, we

meaningful a demographics for specifically demo a from explicit And products customers on Excellent. seen follow couple that. interested prior that, being That's aside target you in your returning helpful. amount products any years ago. these or even up that weren't of then and personalized maybe just different maybe of Have

Yes.

the hitting I you're on think Jack. head, it right

a both is individuals off. may recapture churned it mechanism have think great that for I

We've attractive share the as of think in selection catch the I seen another. more And the that those also shift, grows, competitors. eye also We X seen substantially pretty might an in really each track a we've to I as X individual because our right, really share. powerful. category we've X couple capture of think across quite strategic combination and big top mix it mechanism over quarters. compounds reduction, accelerate across is really the the continued kind As last cross-category is of or market of capture together X price categories with

getting right, to combination prop facilities, facility are the delivering, bread capabilities that And wide and and in portfolio made really mass personalized are them of and market our compelling I to a for pricing that in time of think our of really like kind butter this only consider I and second think, the back come either come customers a pretty first time. or unique value for to

next Bank Allen line America. of ] [ of of Your the question comes from Lutz

X Congrats for nice on guess you. a Andrew, I quarter.

way top with things guess we're loans, quarter-over-quarter we consumer platform. September, maybe share at Is your taking impacting November, competitors you? you're mentioned Do heading into now? of October, those on interest any impacting on you some platform? the than consumer look what in gauge going student on the just Just seeing the behavior any I are competitors. is November changes among things that's observable as what's your your what's as You going of or if on curious you're like more market consumer the think month-over-month in rates,

dynamics Great been of have historical question, any with last there's fairly that not. that behavior. been material knowledge, shock the anything not unique are competitive Allen. It type way. The short behavioral the market rest market But of in influencing answer that's consistent of seem couple us been hasn't The or of we've is to speak does can't a landscape. my quarters there disruption. I thought to any

X been to gross I And at a come angle. for it. bit, already know margin from want on Got that different but has then a Yemi. it the touched I

curious subscriptions. even the about balancing these about growth curious, you're getting benefits and the gross is about Just seen? further pharmacies margin, in think it's I'm offsetting we you the just investments to gross stability any price, you that margins as to you price the think here there in given as from have longer-duration invest heading balance not guys affiliated in are comfortable opportunity Or with XXXX? we've that with the into move

Thanks Yes, the Allen. great for question, question.

various consumers. that we value give explore back think will continue ways to I to to

our there approach is deliberate. very and thoughtful think I that

it's those several the backed do consumers, take the whether to when other take happen typically, course experience months. decision of are we by so to that And to over going to typically or make value back strategies adjustments pricing

be consumers in the around back going And how how thoughtful of to very think so form think to value I we get that. around to we're

into Constantly, various we around from that do are put the feedback market. experimenting consumers receiving offerings we

our long mid-XXs. margin I to been the think in over the target gross term, mid- has

think is unlocked reality I than likely there's be likely mentioned, scale efficiency pharmacies so to probably where that from the we're affiliated hitting value of a consumers a level more likely accretive and further most to multiyear the to we've to identify going for hit that of us the predicted. give way to be the kind period back on to target as mid-XXs

Your next Instructions] Truist Singh Securities. [Operator question line of Jailendra the comes from of

quarter. strong Congrats up discussion. on the follow I to management weight on a offering want

slightly your offering differently, incremental in this revenues? your context describe represents plus of Or $X.X to outlook? the say? early how say asking Would Is this it offering outlook? Just goal just would supporting billion of like in you to more that your long-term to XXXX it growth long-term too you is

'XX this will thinking Considering launching offerings your can space? long-term for and update opportunities this programs of pick mean, that on in DTC I that, expectations kind for area clearly, that, you in to of in area and XXXX. And employers several are seen it related up us we've

the just and Andrew Maybe Yes. around then Thanks with a part issued around I weight question first can to the the targets, can start product for handle XXXX question. impact management.

were set our a the it very confident ability XXXX we hit of on. the we're short the I think floor at in think is, I time targets. given to Those that

seeing with categories what men's we these in dermatology, well present just even alone, hair, start the the in, I performance hair categories current as we're as to women's strong were alone. categories new even health, the think those has chance sexual such as we that with on on

the is targets in consumers dimensions set to to in in products. shift of if provided surpass weight new lot our broader our ability ability And those think around our personalized the so of to we capabilities moment at at to earlier. in launch those the we least not time management. target, hit I of aware of even with execute that around hit, a absence the a even continuing spoken to primarily have products XXXX inclusion continuing categories this across the conviction The and we've And that make embedded of of

that those that. would Andrew, the so second take want if you And part And accretive to be targets. of to

Thanks, for question. Yes. Jailendra, the

think be It chunk category, weight the valuable category, the very to going Regarding right? honest, it's affects be a to we management extraordinarily of large an population.

is done the have that coming are there educated pharmaceutical have year last treatments population of GLP-Xs are them effective, reality, I think what really are more right? the and that highly in medications are the next that in and profiles the profiles currently under showing that couple might in live different review years There XX to be XX clinical will safety the of data good incredibly market. be the

this top this is a for be big anything And forward so of to we on be really point, To accretive believe going category. Yemi's will XXXX. put we

this insulin a the So will of gaining of curve the directly weight. thresholds after platform dynamics, underlying approach resistance what that kind those come equipped GLP-X we some of hit those affect market, of when a such is the as all to we're is coming mass so consistency. in well-studied that with, to safe goes being consistency But I in the be craving, appetite such think, of metabolism of portfolio very starting others that and as manner market we to chain built supply bring of can reimbursement years, safety market, dynamics

category. on So excited really this top we're this really category, of by

very I it's as the talked believe this will that business I deliver in at and be we're the representative years. tailwind we we in consumer coming like about for are we've we're the to feel prudent But a that. think large past, And that can launching market safely. is really with maintain what of believe bringing and where we only this consistently point, the trust we --

your technical health business. follow-up on my around details mental more is And some Okay.

time, and the in I is first that. count. might the on that AOV My think get XXX,XXX this you calculation? this subscriber be is these sessions. -- understanding for therapy members Help captured counseling How for disclosed platform orders me understand does your and net of some

provider overwhelming treated The subscribers holistically for psychiatric the getting with within care. XXX,XXX are

treatment chronic medications. anxiety a the like of adjusting for things or care provider of that, So depression that includes ongoing these with

think And the overwhelmingly, management. just subscribers a color those context, and traditional little into more psychiatric bit source medication so for the I of fits of

question Cowen. comes TD Jonna from Kim line the next Your of of

if so far so was over How on Katie is that's any X successful could a that just catalysts do to far. for any from years sounds key the provide on of you platform? wondering think platform update very learnings about sort This Jonna. for the Hers, And year you it QX? next I like

women's lot exciting of a of for out for investment efficiency we've Hers the dermatology, subscribers is of lot doubled across expansion business the parts third health the as as of mental year-over-year, businesses. probably more improvements all coming in the quarter. the in that and a personalized rolled number products one is of well It's Thanks the And hair really the Yes. the care question. across The underlying from the customer in us.

the approaching as the gold really the women was for mental fastest-growing health those economics. categories, they're some So And unit close of delivering kind I as in where categories of mentioning well as standard the company. to earlier, dermatology categories are of kind point

XX been optimization. so to X of months And it's

go, we very took to approaching what on still clearly of are to some we but the cusp think excellent. be I more

quite think There's that personalization also I a which exciting there's in come. quite very exciting. of and there, diversity a of to adoption bit is within has the last lot couple more So quarters been

And unique be within of within pharmacy portfolio of not we also experiences comparing to are sophisticated weight to compounds management, coming offerings only taking to some the mental have the customers. at our really into additions we that the going some there's advantage pharmacies year, and but new of affiliated think more treatment capabilities powerful health

shaping high of. to of believe conviction capable what they think are lot I a the up we economics are unit be and So there,

lean And in continue to hope capital stage and to so more we aggressively. more continue those there and scale be gate able to to

implied provide that to there QX that and sounds are a QX assumptions like Okay. Great. and the follow-up, number? what is there deceleration in as And puts slight chance color guidance. revenue of any then takes Is can just some revenue those you sort a on it

Yes.

that's think great a question. I

with are assuming more the more and will really that subscriber continue seen think that to that momentum platform on QX. we've I we throughout coming the ads

our the share headwinds to mitigate I pass that think made new guidance think through in the of the pricing earlier, mentioned basically in second a greater is quarter on also as embedded to or from changes we to starting platform from having to ability any retention well but benefit In will I throughout to continue XXXX. the as product start personalized the stronger perpetuate the come users emerge. the to really as see quarter fourth

in seen would that I of fourth we've momentum. say the so is And what much quarter continued

quarter. I think in few there headwinds very the fourth are anticipating we're that

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

about ramp meaningful 'XX you call don't at And membership as if having I all? quick in guys what about environment you I expect little formal wouldn't just Two the any or is if late. I out then, we next on you economic And guys changing kind think in tailwinds this Did XX, yet. a think I ones want would we for me. as advance. to that Yemi, missed the bit year But towards know comment. I churn? discuss headwinds was churn got of to degree guidance there's give wondering just to

with the We the behavior changes disclosures that difficulties customer really through market churn, that speak about even on we from first structurally our a of but explicitly any didn't fact speak talk there's no in we've walls. been outside did I'll material one. the new to dynamic seen kind

internally, with to have new products, seen seen happier adjust and ultimately and improved fact cause the XX% I haven't products a indications the quarter. in personalize north that them of and and have is that customers We business something deliver and personalized did just underlying ], efficacy. and disclosed adopting believe, and ability we provider to of now their seeing issues resulting speak and customers increased truly personalized as conversations to retention rapid in stickiness is unique the fairly clinical believe adoption to of [ customer's those with those customers so quite those products And We of is we're consistent. come tweak

the really are prior. those So on touched X things that we

outlook time. an what are and XXXX seeing culminate. really in start part it up we're end we But this the give And second we're energized of too for the really to your question, to how early at is seeing year Yes. of XXXX pick the

And later the And our to migration product this capabilities X than just adoption in complete from a think that see mentioned year. trends learnings of of investments more efficiency set the more start pharmacies we'll in out so starting the do likely, to category, brand we broader the roll we then see that many to that to I continue get gains those affiliated marketing. we're personalized as around Andrew across of continuing also that

we culminating positive All are of see XXXX. that those a through continuing into of lot tailwinds

net the And have we as of result the our of reasons things that's to one positive so conviction income first these why generate a all XXXX, of within together. just half in the of starting to really ability come

follow-up of question a have from we line Jack And the Wallace of Guggenheim.

I you results of competitive call let's wondering the there? to could quarters pressures And of would -- last in more it, advertising spend was talked about the favorable quarter environment. year, any it this kind second normal. advertising you prior, competitive the to quarter first X just there comment relative unusually fourth how Just environment, wanted was quarter's through put the then believe if of in you year the ad handicap you the through worth of quarter, on I quarter the maybe an And context. environment. third being in the

Yes. the Thanks Jack. on question,

just normal -- a we or I favorable. environment, think that think onerous particularly don't it's I

what that in QX QX. in of saw consistent the environment think was with I much we

rolling difference many and dermatology as in the dynamics pricing fourth lines half the of well such expanding personalized second act the of towards hair back was it space, any marketing space investment QX. We in out quarter. the was Hers more those skewed the foresee of across the and choppier the don't the in think strategic is I also given as capabilities that set many Hers been we're as quarter

-- that in half so of the normalized over the quarter, course still And of think will I levels fourth by the back that year. more the excited efficiency the be the very we're seeing spend we're in but

be what expectation I And will from in and normalized would say to guidance. this so environment continue QX that we've our what's is embedded our seen in

There call. are This today's at time. concludes no further conference this questions

You may disconnect. now