Hims & Hers Health (HIMS) 6 May 242024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Hims & Hers First Quarter 2024 Earnings Conference Call. Please note that this call is being recorded. [Operator Instructions] I would now like to turn today's call over to Bill Newby, Head of Investor Relations. Please go ahead.

welcome Earnings Hims Call. and First Hers everyone, XXXX Quarter afternoon, to & the Health Good can website Today, this a you quarter's the shareholder on after market letter, copy closed, of investors.hims.com. at We released find our which .

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

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

as webcast investors.hims.com. at find this today's information You as well to late can

turn Andrew. And be XX the with now archived I'll call, on will the months. After to the call over for this that, webcast website

Thanks, Bill.

in continuing. outstanding an The the year. first momentum we results XXXX built Our to quarter beginning is marked

and financial women's delivering of sexual dermatology, underlying personalized quality and opting to to our more before, subscribers our quarter-over-quarter we to million. of platform than . In Personalization over XXX,XXX grew into the of feel our help an subscribers with quarter, X.X strength subscription X over a men's specialties, health subscribers by care for weight the just better mission over our of mental The execution health. highest performance. great XXX,XXX our users. The loss. for record continues As strategy drawing translating tripled unwavering core health, world is dedication first business resonate representing possible to Strong personalized last course the number north of year ever on the to is nearly has the by power robust of subscribers, of propelled advance the further XX% platform. to the of across each consumers

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seek our users channels. actively by either cost-effective visiting seeing are directly out, us through website or other We

saw treatment We on believe Hims and result this a is with either our of associate word to recalling improving platform, that saw brand treatment efficiency gains of friends the quarter increasingly the associates. and of dynamics. result breadth Hers users seeking or conditions growth happening we from of are mouth in the as messaging these first and The they the direct are prior of & a

of ability This business. XX%, for achieve conviction our growth long-term to our is adjusted margin exciting XX% solidify simultaneously our EBITDA maintaining time while target an And profile. attractive to incredibly in an our

I leader for underlying continue components this and as ensure position clear to that we build accessing model efficiency are this have very There a throughout can to bring come. we allow differentiated short personalized to gains us proposition care years of believe upon high-quality value to for Hers In period, Hims are model the seeing established we & the our that market. X

technology solutions why our our this compliance feedback innovation serves particular with customer and and backbone transparency products? both sensitivity may user and which providers we and First, offering insights into significant invaluable to SERD another? take switch to integrate us consumers ] us our customer platform, of adopt of data provides privacy data into allows security, data, behaviors, steps and trust insights process the users with [ our direct adhere about Importantly, data. and we and seamlessly commitment from as privacy they to they structured recognize critical optical prioritize also needs. safety This we to why why to laws, And how through the and use preferences

of help oversee ensure this aligns medical our internal experts our the standards of exacting every across our our standards This to clinical entire brand packaging of from offer the excellence. our solutions. each personalized access Second, upholds enables to that step And finally, us help integrity team of the offering and of each ensure With production these expertise specialties, wide with that a to pharmacies individuals highest process. affiliated customers. formulation of core of meets array

prices. were at truly of Solutions wealthy segments society historically that to available only accessible the

build to of key accelerate individuals. penetration millions Through the capacity this use near robotics that the our focuses diverse to investments we infrastructure meet Investments specialized while of experiencing. growth. and Enhancements experience our to additional of term, that effectively to a to ensuring offering across us further providers continue And strategy pillars solutions of position can means future investments allow for software, to In necessary to affiliated customers. are the will bring individual best-in-class growing and aim breadth demand both integration these fundamental us fuel These tens our we're our on in our a to market ability range will pharmacies. a needs. meet deploying offering in unique

on launching quarter. I to several are solutions details thrilled we coming As as and we will the expand available to more platform these exciting look new solutions be this that later announce become weeks. in forward sharing these capabilities our

want teams close, to I Before to our execution outstanding levels start year. I the of for thank their

how a I compelling extending at take comprehensive ever-growing We prices. an pride platform I a have experience that solutions our this and an customer serve audience in portfolio experience and to personalized by to expanding XXXX. seamless customers, we of created providing extreme look delivers in forward

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by quarter and outlook XXXX. is start updated XXXX first will an off start. I our our Andrew. overview exceptional then Thanks, to an discuss for of providing financial performance

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first serves the year-over-year Continued million. was XX% our robust in that. driven Revenue of expansion grew as the confirmation This of momentum by base. to growth subscriber quarter $XXX.X ongoing

grew year-over-year to million. XX% Subscribers X.X

record we additions of represented subscribers. level quarter-over-quarter net XXX,XXX quarter a first subscriber new platform added our The as on

of success. north behind our Xx prices strategy of X subscription Our high-quality equipping solutions subscribers. number to significant the mass is personalized market over at personalized force increased opted subscribers for years, with In that a a have just of XXX,XXX providers has driving

believe continued With several future. transition, emerge we the benefits will in this

The is improved first retention.

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market options mass personalized increasingly of We benefit. placement expect compound treatment prices continued this at to

with operation improved our expected, areas we opportunities are efficiency. in past. other we see scale to offerings of what observed from Secondarily, the have similar our economies in personalized for Benefits of

We portfolio compound these benefits continue that extend the offerings of are over we of confident course our personalize as will to XXXX.

relatively flat as execution margins the points first the expanded quarter in of over scale. Margins with remain Gross when economies X compared we year-over-year continue with strong leverage quarter. XX%, prior to to robust the

in our of drive areas Our such to pharmacies key across affiliated to as team logistics, efficiencies ingredients other costs raw and support. leverage continues network customer

the enhance value future. continue excited with ] is experiment the this pass in to to are receive We [ our consumers, we to to value value and the to continue they highest

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attracting currently and covers personalized Secondarily, within the a seeking increased on their the experience of of cycle increasingly users reaching in end-end and users with lastly, invest treatment has with compelling a a in longevity unique specialties to greater confidence & users Hers share life platform Hims journey. provided multi-specialty us platform, early offerings

Marketing to audience aim we is personalized Hers saw compelling and meaningful a a more basis The of retention, & stronger users Hims a in time solutions. quarter than channels suite a combined over from basis revenue drove make As with first of Andrew first on with quarter, with through cost both sequential to and mentioned, points percentage leverage. the the high-quality experience increased year-over-year reaching benefit offerings. a lower acquisition XX%. as broader XXX our of In improved

net We subscribers see are of point pleased a strong because robust our as this it to amount additions record driving while proof of a new maintain ] time ability leverage leverage. growth [ of growth during of and level serves to

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to fluctuation in as quarter-to-quarter as some marketing a there utilize basis discretionary levels expect the be drive lever marketing we the result, to a a on As goals. we aforementioned

leverage more, principles and ability the than our framework execution allocation achieve Strong capital are Star However, drive profitability annum behind high levels. to of later record conviction we have in or to no EBITDA XX% points and our per North to margins X adjusted driving X adherence XXXX. our of

million almost X XXx Adjusted our be margins last close GAAP EBITDA was adjusted EBITDA up will that to first as in in elevating over XXXX first the first income Net quarter our the profitability. year XX%. to was quarter-over-quarter expanded million $XX.X $XX.X quarter, from conviction of points quarter,

of drill remainder outlook the of insight Before are I'd how into year. the allocated first our principles additional remainder capital providing we year, the into for Free the quarter to and the in guiding like for quarter cash flow million in continues in cash investment to from assets flow our We operations generation million. cash generated of strong. flow affiliated remain within fixed exceeded $XX.X of free first $XX.X the as pharmacies

general be of pre-IPO primarily market course to we we meaningful shareholder well quarter, first value. our the Over a the to the of as saw was natural what our rotation, believe by of this relative result in believe intrinsic shareholder volatility. driven base We value disconnect a market as our members

X first these program. approximately We first of the repurchase our quarter repurchased shares $XX million the million of as million a end At in quarter, result remain within the $XX share dynamics.

by and actions, these of the in cash result approximately short-term million a As first $XX quarter. investments decreased

end $XXX first of million balance investments our quarter, of short-term remain cash of sheet. the and on As the

for Looking forward, are capital as follows. our priority deployment

for Our remains highest around priority business positioning growth. our

specialties. Lines capital expanding meaningful investment in and ] pharmacies We of continue we next us expect Consumer capacity each has deployment been will of X the [ across our Personal resoundingly years. course of our affiliated the future to the positive, feedback X of expect and breadth enable over offerings

to platform, Our expect subscribe majority have personalized subscribers a aspiration on is of to our solution. will millions we the and tens of

to form locations. mass These consumers of can expect in automation operations in our prices. market come incremental positive make us in solutions our at that Additionally, well our scale we will increase ROI facilities the logistically as ability as to advantageous to investments offer allows investments

and between the Our there disconnects is with shares. on value our next of capitalizing a and market priority moment, we feel are value meaningful repurchase intrinsic

provide for believe future. in will additional cash this we the We generation continue Lastly, to balance opportunities will strengthen to opportunity value the further our sheet. utilize our to option take flow profile

that concurrently. the our in profile XXXX. things strength grateful outlook for and confident cash backdrop, will updated do our like of years sheet are these to coming and to us I'd each of We flow detail enable that With balance generation the

of In of revenue a to year-over-year range in the the to second $XXX quarter, anticipating XX% $XXX representing XX%. are increase we million, million

representing EBITDA to between We million, at adjusted EBITDA to XX% expect adjusted be $XX both an million ranges. margin $XX of midpoint of the

year-over-year For $X.X the representing billion, XX% anticipating are a full to $X.XX increase to XX%. year, we between revenue of billion of

adjusted EBITDA imply EBITDA Strong the be our our our we strengthened of between margin $XXX ranges. but midpoint exceed the conviction momentum well. and has quarter that revenue million These will line as only year first of XXXX and we EBITDA Lastly, ranges both adjusted a expect bottom $XXX XX% will million. an early, targets revenue in at XXXX adjusted targets not

concurrently ability leverage, meaningful our XX% reinforce drive to in our conviction goal north of levels Our XXXX. by adjusted EBITDA achieving reaching record margins long-term while of growth of marketing

ability drive as possible it employees support through helping them With Our the our like great support in mission power without that, and questions. updated keeping results would thank over progress. of us appreciate will you & be health. shareholders better to I incredible as world of We customers look on across dedication I'd our the hundreds fell of these not operator our for the to forward of our of to to Hers. partners now the the and turn well Hims that

Allen Lutz Bank [Operator with America. of Instructions] Your comes first question from

I What XXXX about guidance, context gains. it the significant in you that of this? do surprise it step nice as was really time mentioned such come a Andrew, guess it as as think the Hims. is there that first the to did made you're to like a the is down quarter? consumers the that happening of this then marketing way framed why revenue, now? And think this guess think the And you driving this you And seeing I efficiency are we you seeking is a seem out about we in clearly, percent there.

through saw trying in sustainable? quarter to what we think Just the first is

and Thanks, Allen. the expanded in of products been a couple the we've as the weight barriers We across and offering and of more just of That's hit second of products both and the of last first quarters, the and much what's bringing otherwise set categories historical company, countering Great quarter treatment. the women's others. past part a I let these happening otherwise they maybe some and question. for are that people continuation right? portfolio ones categories to customers were dermatology at Maybe getting of and like adopting newer I'll loss segmentating within is is them suite the categories, diverse take types each that which the think live the personalized Yemi of had better core concerns are

think of going And so to as I see a to platform. you're of we breadth people increase choices, to the continue coming the continuation

of we've These strategically. We're price often top products, to essentially of attractive leverage, has dropping extra to traditional which very prices the that, right? on are the continued compared added products are prices and increase treatments generic think that accessibility personalized those side market to I side. attractive mass

from marketing the can back. that to the generally, standpoint to because we a of to we those and bit continue are so I think, portfolio. combination leverage push when that's expected, think, point, think expand speak attractive And I price little just heavier be there been trends growing Yemi with and also are continuation regard dynamics to -- pull when something standpoint, the we But Allen, a from the is personalization a I

the for Allen. Thanks question, Yes.

will the the time. we discretionary is way different any think time from products, of a consumers we of there prepared where initiatives, for course as more result consumers it's use do platform, staying the more into a of see continue to it new as periods the or on to product. the over be period ability us more mentioned time time coming remarks, personalized marketing to organically. fluctuate lean I to We'll in platform leverage variety of just an lever as as as, to think gain on But coming and whether launch launch as basis, annual a a of like to will category well the the loving Andrew the we it that of longer around a mentioned,

currently over -- year the And maintain ability us each course leverage years, the at have that of so we the to and same the that confidence coming gives we get growth. the time

the should you subscribers retention personalized the then there we the of was maybe helpful. a How ago the solutions currently? And think I Is personalized taking solutions, now the solutions improvement of improvement of on years follow-up way just today. are size about quantitatively? Very from what to doing mentioned Yemi, think, versus XX% company quick where couple are a any frame personalized

Yes.

think can guided you principles some what give I been categories. seeing around we've we across

stages us are categories do see cases out a enable products, there various -- the at life in just personalization are market think I we that is things. to them. given similar personalized that often solutions their is One what not few there to different cycle. in Broadly, do

are do the the needs, and that many that for heart fundamentally consumer seen sign the generic be And specialties more even on also sign not of platform enable stronger Andrew, there's you sure or alternatives. stay consumers see catalysts only retention starting wanted anything durations. in up of go that with years many across consumer show We the that the to there we've more that not much at form well. our that And products, as to these decades. add up will products to if of to . We're is the fact up the but these belief longer them personalized and given for preferences for consumers seeing

this love color it's plays a Maybe is cancel to makes sticky. using, overwhelmingly them, form and right, form it the maybe itself some treatment topical Yes, spray Allen, thing, just not out. of a that hair right? on they other maybe their customers factor lot A is the to perfectly the because give factor not will you personalized how

or be treatments effect common trying an is prefer oral vice Or is side versa. they customer which so there And solution. the balance. a component, that maybe might to among different

so why them the level the that deep the address canceling customers best to with into dive of next of personalization you think are I like directly it And launches. we and data our can about think way is to understanding try

And so factor attacking we are side very et often, we they directly the that or see of concerns form effect cetera. some some the concerns of see

to something And the so would can't we've I probably that magnitude, but speak to expect definitely seen pretty consistently continue. and

question next Your Ripps Canaccord. with comes from Maria

quarter. the strong On

First more sort ask philosophy. like elasticity? any prices. since of your sort of been specialties little you've to a seen sort And color It's us bit to near-term of year on there I a particularly maybe here? higher sort where give refining from pricing your introduced would are or you about about approach products of pricing Can lower price

Yes. Thanks for the question, Maria.

forward on of scale, I just running -- for from to see value we're feel we consumers approach we increase to some respect with our how platform. as which longevity is consistently the fundamental experiments that the pass benefits continue to we think will do back

price. the some I quarter, said, and think respect in that's way not think to benefit consumers form is the of that the that we'll lack to to we expect second pass But we value see quarter. dynamics, from so with would the of I that in QX of those in pricing the just the many

other additional we're expect that experimenting. solutions can features or creative You

the to of to embedded think or it's incremental do is And guidance year, pricing so flexibility their consumers an in that, keeping over platform on the our course really eye I that features with towards get longer. with for the respect addressing the needs and whether

to Maria, where add, & country. tens suite believe as build Hims offer just think across maybe expand think I Hers customers we millions there nearly categories that of as categories are we that the we'll affect specialties and platform household into the of of our And every in to today ones well aim I continue a to philosophically, the and

order automation tens way to efficiency millions in leverage throughout multi accessible that and can find philosophy back that to those of you is target business, price continuing or make so operational the that the continue the or a points in to And core give customers customers. of truly in to

Got That's you then and automation capabilities can on your helpful. targeted more sort very in give maybe bit talked you of a us through about robotics it. little investments affiliated color software. And pharmacies expanding

sort on more then additional we color going share? affiliated to of And CapEx your locations is any of capabilities how are through flowing this add able to operating this you P&L? see then how sort you're are this going And this to planning lastly, of sort So to pharmacy at -- expenses? or more largely point? Is

Yes. Thanks for the question, Maria.

I there's think work of like that areas strategy And clear overwhelmingly we what's a that invest. personalization the would is to few becoming think that that I fundamentally in.

offer specialties. is And breadth of the few so our of solutions there just One we invest each fundamentally that across are a areas where we around will

we'll we next the the concerns form that the continue can consumers make SKUs. number so expand address we the And of sure invest for over different conditions course of that and year, in more of to to

increase but like positioned -- to efficiently year that, those. run first of today, really, expenditures. the watch of this investing as The our can uniquely far and too to capacity will we'll We be capacity year, into from expect kind it starting of this capital our be those to greater there's ahead of you scale, year to part growth expect back solutions As the next also primarily progressively respect the of with to don't half to meet to up, then just continue early we'll and where facilities SKUs automation half facilities. and of get in And to of that show the early fundamentally so half incredibly dependent. deeper it the those With want much next breadth needs. ensure will we're year, we're the

we start year. philosophically consumers. and expect drive ROI expect the have those which in we CapEx, to that many before, process that of to through of that higher of up do the to initiatives And form the passed incrementally but so mentioned the margins back as to, half be we positive ability again, in

Your Grosslight from next Daniel Citi. question with comes

weight it first. your bringing ability with particular, hoping of and potentially facilities? those that on and compounded Have update your kind are to get coming GLP-Xs platform, great was you rather then therefore, I about to get the do of an platform? your little the curious demographics And wary on thinking on be we trying to bit they go a And Really the your GLP-Xs an loss there? as Or the of think within GLP-Xs they we'd in update are and around GLP-X? program. to folks your that would to tried

Thanks, question. Dan. Great

really overwhelmingly, about people you're XXX excited loss million we've what talking think I seen over by on So weight suffering.

I I safe have excessively expand $XXX and we affordable, to think the offering has and as GLP-X XXXX we've that portfolio put launch about the will it hit million to to -- in talked soon that on as think said, target we expect priced, in continue well past. is we

come future. Regarding more compounding, I think in . the probably to

able perspectives on team heads on not something it that, carefully really too the the and around and are solidifying clinical that and our So shortly. some today, is to watching but we probably should much be pharmaceutical to we're share share that wrapping team

versus goals any details how of those mentioned that folks, you to can personalized your product. Andrew, kind And than no -- product one qualitative maybe or on of hoping one more versus on quantitative -- than no on are benefit more getting of have have and who get as folks people your some right many you -- one just one was one one folks you personalized now it. provide products? Got on I maybe more more than

Yes, question. it's great a

about thinking category. cross concept the right, one, we're means is really is of when because this more, really as customer cross-sell, this And behavior, of a e-commerce in non-personalized often and you think I it's think focusing more more situations, think clear more versus think lot than we right? personalized we're I what's concept. because watch personalized where becoming I

pill. health right, and both heart So sexual when single that a that's single you treatment as treating cardiovascular disease, our is think a about category, personalized health in as dysfunction our personalized category well sexual

health business, individual a as focused categories personalized, as of start treating think really And These category, holistically. same thing, for you loss overlap, mental health depressive see as with to weight think not conversion cross-category ] categories mental and the overlap a are not I our we're siloed. example, on overlap of much with so eating the as on some obesity. I an [ category, human-centric lot And on

And treats underlying focus. all or so the a factors is having concerns patient the is really personalized symptoms predominant that of think that trying to solution a of

has And seen treatment. what are to do if you continue a reasons really multiple that well, is that patient we've overwhelmingly there

the some the of reasons the of out the more more retention themselves those be it and of pull and the kind clinical reasons build some surely reasons cosmetic be And those and and increasing that people stickiness and the off of cabinet might might to or is combination serious but remind habit. shelf

Your next question Guggenheim comes . Securities. Wallace with from Jack

excuse reaction for attrition -- business more well response some addressing -- to and thank your public around your how idea Congrats thinking comments the I and the and and customer attention great observable weekend. year. an give me, inbound retention, the you a as new acquisition the to opportunity to you wanted and employee from comments just specifically opportunity had an give for attention impact to start week or attrition to as on us just to to just over any give and I you resumes? last Andrew, wanted

Jack. Thanks, great Yes, question.

of we latest all the we expect guidance So in no the shared material business. that reflects thinking. impact The that today

that don't going so all concern be forward. big And expect to we at a

Great. year CapEx question? well other there. preparation prior it we investments, sounds of a a for category, with as being think jumping attention point fair then new off second a getting in just half the into the number some expanded weight any of existing quarter's capabilities the of Yemi. wanted And your more additional the as get first Should terms the getting color to categories? of And on kind be the maybe loss and attention might to little categories some I like the appreciate that is therapeutic CapEx then response I extra second, But

Yes, Andrew second I of maybe throw the half. over the question, can start for to it with part first the I'll

growth prior the we'll is, mentioned, really look what in calibrate that see, to the think of Jack, relative are as expenditures kind to seeing. I the question, capital we we

or more intensity in capabilities the those I it the invest levels start but were next just low for think . historically, expanding we the minimal CapEx. if million to We will expect capital we as years, fairly facilities. $X to don't expect over $X ago, X to you in do the were the return like in the of relying in next fluctuate range machinery years, expenditures to X course million years X

quarter. in expect to of hard to we to be of to like last it's seen it year we've number, do latter last similar what give kind So elevated, exact quarter-to-quarter but an the part

I are these complexities. pharmaceutical centered capabilities lot think a both of around

factor imagine market. but form of ingredient that more There's number can complexity variation. bringing got of in you and few So form We there's specialties a portfolio specific factors the can breadth on today, we to be compounding. a quite

opportunity menopause, more So are balance, in are a there to And then more in struggling these and that Sanya people ], form and believe always by past. about talked there's actually prices. the talked categories [ excited an [indiscernible] obviously, for that affordable and treatments Hormonal that together complex necessary ingredients processes lot challenging we've into about are put we to categories at deliver of factors. there's pain these we've hyperpersonalized very believe management are

be near-term but from only so of going investment years the And what's not necessary towards couple for going CapEx that categories, some now. a lot the of of to a building foundation is

comes question from next Kim Your with Jonna Cowen. TD

second will your also in be consumer is, And seen color income changed expectations? different curious versus expectations? deliver of the just of fourth year first what Any quarter categories? Just full wanted original terms terms changed you of the question in better change guidance guided And by behavior in cohorts quarter. in any sort areas the your what half to your versus which offside another just And across in have a you there. how of understanding get helpful

the start Maybe I consumer. guide with around over it with Andrew can what can first turn the broader and the part I of to clarity the we're then on for seeing question

quarter were Jonna, the momentum, the is level expecting of consumers personalized were as I first magnitude coming in just we in they're the Relative that both see record what think frequency, platform. was as for which really, opting of on the terms to we to what well did products.

As we mentioned, those levels. typically do retention carry higher

that And guidance specialties. embedded pretty momentum so much in our we're is all the seeing our what's just that across And we've seen. of really strong

health each innovated it's very new category, dermatology products, the to the attractive our of suite specialties. expect those continue with pipeline on the of or of we're seeing specialties, we've we fact whether to Given across weight sexual strength that continued each and a innovate

so of And is uptick of just in the the pipeline adoption acquisition a embedded in personalized in and the first come. the guide to that's strong consumer things really, strong what's then products. very quarter

Yes. And we then the confidence, to think see demographics regarding levels. strength of income consumer I continue across

and think remained probably couple struggled historically happened things and others and dropped our consumer I business consumer of of channels has because have in confidence has a has resilient. this when traditional

morning emotionally customer of they highly consumer, up how right? up about resonant and in talking the you're that in that how look mirror to well-being the and world. the day when the think the and to categories wakes impactful are products are show I that the and They're products in incredibly core goes

of so any consumer have in make strategic whatsoever. year affordable, the have those very we further of in think from strength not such think that pricing seen very, initiatives last I concerns types that, that And I sticky way. continued even On to the top

comes next Aaron Kessler Global. with Your question from Seaport

then kind update mental on A performance. or maybe an in the the strong update the last I just quarter, couple just maybe performance you growth on side, there. health pretty a One, can of Hers the you women's questions. of us think noted And quarter.

was our depression, showing think survey younger rates pretty adults. of high among recent particularly I

curious Just seeing kind well. there you're as what of

and you. Aaron, to great Thanks, have

On the the is and to business, dermatology category health growing, as of continuing fastest fastest loss the this the growing parts of it her Hers business. see the weight side of as Her of well mental one the if business. the be hair, versus not comprised

look in I those When are way. dramatic pulling of we the a of All quite that rates It's has the growing in ahead business those think some and very robustly small. categories. at really penetration company the

talking in markets. You're massive penetration very X%, X% very, rates

the that And so and the last in to X suspect brand are unlock really making the taking or massive been that the we start levels year necessary in we've investments awareness the starting brand just share.

the rapidly. what can got categories. very the those product or from quarter to will we've tell, that X rate fit in next offerings that come X in is of and be the confidence products But we believe strong expanding be gives for way of market that, portfolio a that last in to quite in growth able sustained many breadth time. couple we Many some us strongly

with Santangelo Your next question comes Glen from Jefferies.

peel that per back the mean sort subscriber the some monthly average like that, were I quarter of here, But with financial equivalent if numbers in wanted XX% of of looks revenue growth subscriber I when continuing sort little up but I sort just a sales was drove. the which your -- I of of it to Because was of some the almost layers yet more flat, bit, to bit lot. churn little a growth I give couple could. the was are have unpack the subscriptions. multi-month may the maybe a the numbers? questions, booking we average a be what a order if XX%, little us more could think just you're you wondering I value meat both success well some assess bit as on to those trying X as get question suggest

off make how trying understand I'm play all these And another? sort to I metrics sure one so just of

Glen. question, Yes, sure. the for Thanks

that the around think subscriber I company on in growth. that growth past as stated a we're primary focused is we the

the elements platform to Those come And platform geared pricing as consumers past. of so around multiple consumers on strategic the towards personalization as or to decades. a some we've the both the to to lot not of attractive keeping whether even making in the it's are the years, if initiatives, historically for well it talked

as so And growth, mentioned. the our this quarter was of performance driven largely primarily off you subscriber

as revenue average is, the continuing case. monthly we with and per Really, bundles some continue product we're continued that you coming success it well is as the the sure well to that to attractive, to our driven to in subscriber, way as expect the the respect online. some mentioned, by of as mix with see And multi-month respect be make of primarily movement AOV, We the there. that with that see focus are to you dynamics

of you're Yemi, the sort suggest are the conservatism question year you up be in in I to adjusted of a talked sort that full some the ultimately guidance. maybe wondering, in? one reasonable down XQ guidance. for year. of on made. quick your and may at is back step level EBITDA just on of If there building the what sort investments seems implying And it look margin the to more I XQ, Or of you're with planned be some that was you've call consistent half this about some -- put

to go in to So the sense back I'm make of of some just margin half should expect trying the we the year why down.

great think it's question. I a Yes,

is QX we're a to flexibility. what Really are leaving we excited was year I and quarter come. are the definitely phenomenal ourselves very think of remainder for by the us, we doing

we sorry, look that's the to online. online of pass new continue -- back leaning products new to as to do we've consumers. As Whether value marketing back for come into we case come start mentioned, have ways to categories

mentioned excited there. will to identifying We're the the And course experiments, experiments of most consumers. several those. do invest then as accretive quarters, look flexibility what to to finalizing some and we before, close the back to pass opportunistically ways those have run We value of over to by very we are

the want in And flexibility leave the to to guy you capability so ourselves [indiscernible]. do have to

with Securities. from Singh Your Jailendra next comes question Truist

strong quarter. a on Congrats

figure personalized subscribers question this second is of end and part on the added terms of year? the personalized of was clarification among What solution the XX%. using is of -- using in XQ new in by questions solution XQ what figure couple you terms the outlook First members in like reflecting of your at a this

Yes.

users. the didn't of granular guide personalized with maybe subscribers number of adoption questions. so What We new to higher of identifying in users is And just personalized disproportionately the some add user solutions quite a just adoption the to Andrew are to over that for I is is start attractiveness because I details. can the the because to is specifically. the can do the for some think many that the be those the first new many of rate they when of explicitly oriented new more we come products. see we newer strong is the I towards to platform what base also then think of majority do time categories, Tends vast products see of basically

quarter it. And We're that that, so And retention. number creep each by potential we basically to do excited up alongside the expect [indiscernible]. then means that for Andre

customization we Yes. on a The vast to treated And years offering. personalized in majority of business Jailendra, coming maybe level, just the think with -- I a the customers the the be being I expect that high generic underlying with mean, at these platform, than degree meaningfully have treatment. tools and just of relationship they choice a that provided traditional flexibility have stickiness, the are they're more the powerful the

the majority vast the business the expect those we treatments. of to towards types coming years So move in of

better around been to changes drive change And there watching flexibility focused adjustments, about comment kind just which the these those getting in trying competitive or decision in on, with data will environment of of follow-up, what will your my you've to what learned the behavior year? so you year given make terms more process be pricing aggressive in adjustments? -- less points thought or has quick understand consumer in then your And any your in far the

can bit what Yes, approach of into the philosophical a we behind the changes some make. like if just is go we that

think a company, happening management team, so think as on focused And what's less that as I a we're quarter-to-quarter. I

nature. of just to conditions we've tend consumer resilient As very the types resilient Andrew mentioned, remain serving. seen more given the in be They oftentimes are

of to will categories, around around those vehicles primarily will do mechanisms highest when receive consumers, areas think decision which pricing use just in pass really, we in that to the data that to it's so the types what and or other we in the back ROI. which identifying which And value whether drive be we experiments results

of be will that quarter. any opportunity [ factor gaiting the or given ] in so concern And more a versus

Wolfmier next Sandler. with question comes Your Korinne from Piper

touch of mean To on the different it changed all kind question think what and very what's churn clearly is been in quantified churn I retention selling hasn't way. a like with I of levels. we're

us after doing off? are initial you are is detail better So subscribers like reorders and give many I other can their color how any first multi-month order then you can your many falling ending there? there guess any how way give of us And on up

Yes.

I'd think a think question. to, I I great point it's what Korinne,

If XX%. that around you like levels the more I Andrew retention think is on. [ previous One of add given ] long-term we've guidance

be just whole but we And fact, function across of really that, of think and think and gets some pull-through. addition I did that's just is of that us this see longevity. record would the level of net the benefits QX on stronger, anything, in a if hope subscribers, I a new for efficiency acquisition, also

pass As the the we but value-added very exact of expect in quantification to in coming experiments other give continue that. difficult retention to form to or improve pricing We the ads quarters, it's numbers consumers. around consumers to value back do to

is give in you coming thing? extra how you a improvement I potentially think the I guidance, timing then forward year detail us of is or you an that maybe it. pulled is When think, And anything it. And any you this guidance launches? hinted then getting from Andrew, new anticipated? product can the said Really of out launches. guys thing the laid on than appreciate And GLP-Xs? new And kind towards sooner soon. of Got product much some And

Yes.

definitely On talked we Regard this would side, the expect as GLP-X about. I tackle. soon the yes, them to sieve Yemi so year,

But to we that products. strong categorical it's around a we and guidance what function continued was I question by guidance, philosophy, more a function visibility a expect launch of certainty have of really what that's consumers roll launch relates into. to with of less respect of specific we to it And the Korinne, we product think similar portfolio Yes. the and the We're first demand expect And or as generally forward what a come. historically, our continued do to excited very quarter. with uptick in that saw personalized in we from

that guidance imminently the have have we around can we what already in coming. impacts reflected the so based And and some products see that the today launched or upon of is

Hill Your next Deutsche Bank. comes question George with from

guess see I opinion inflect what for space. do And discounting Andrew one, of you X picture ask Yemi. in an picture X small side, and volume that guys have chain have significant from and drug kind from kind of competition supply big space pretty and picture the X the at a X GLP-Xs perspective? and is, as we small price I that in you subscription I somebody price that point

are for you you that prices is most are to question states about coming subscribers, and my that So to when follow-up to business to And kind has think that tens important which disease then your down talked product millions do categories a of goal? wanting pretty getting comments, Yemi grow of of significantly.

George.

On the point, GLP-X question side, probably sure, changing agree right, that this interesting and not share have perspective dynamic, pretty we I on at I'm but time. to a near definitely very

to second the Yes, don't share So you more I that be able we'll Yemi, take shortly. think half? on

very for think focused tens core there's of millions millions, not of Yes. at And of Within with go George, to our that the it's is each we think X hundreds both specialties, comprehensive us categories, time, in. the the respect that platform on but these operate of I specialties we're to I same if of the subscribers benefit after.

confident innovation we dollar just points, were in continued to each broaden the personalization the more in Even we well surface million least continuing in next at by these do ability, scratching many we the that the specialties. as year. at the to think suite as be mentioned across very or million price And confident ability businesses. that past, our these so $XXX the through of feel I I to on of of are side said, each of think as They have revenue have product multi-hundred different

quick ask brand you brand, X category I important very kind you aspect category name how your where or that of have important the impolite, Is very that that know your seems is kind I view Hers & time but less name what of is different like marketing total as something you would different cover? a brand in guys I Okay. you in name address kind Or more and about of there's category, can of where how Hims don't from know brand if important follow-up, done assets. in be that is to for if don't it's that talk historically? something about can GLP-Xs and you

Yes. the that. wide being highest I to best offering things probably and of we know unmatched in excellence right? may clinical there's clinical I that's don't safety of we need to that market we the kind we degree think of approach and GLP-X around too launch but its think are you're that customers of past, be market, think should a Dan's as range safety have and this and there, highest and best quality, think offerings I but practices excellence the or can't the probably critical, and bring and ever that should much category way I market. first wide the I to able of when in a really And we'd the in the I a the And when the -- talking it's to compounded believe about range with question give do said we've in products necessarily specifically market, GLP-Xs, is ensure testing be think clinical those earlier profile the around and to

time. questions Thank no participation. you for conference at This your are this will all today's further call. conclude There

disconnect. now may You