Hims & Hers Health (HIMS) 5 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Hims & Hers Second Quarter 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. ahead. go Please

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

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

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

refer certain reconciliation Please financial financial filed letter. directly measures today's XX-Q discussion press a and presentation, for today's statements. as release XX-K also GAAP to risk see shareholder tables factors we to have recently the reports of they We In the and measures. relate most you comparable our to forward-looking non-GAAP most contained in

at investors.hims.com. to And now website call, will find as the with call link the You today's well After information the over I this webcast webcast a turn that, can months. archived will as this XX for on Andrew. be to

Bill. Thanks,

affordable The has consumerization company's of the of will rapidly the continued great to unlocked of this health technology the our accelerate the platform our across world experience. long that the better data speed, quarter term are delivering our in care marked lives. The and most service consumers and in needs, on long-term capabilities transparency, same conditions quality these where level and is in accelerate. momentum exciting broader and preference the for made of is trend health. We fulfillment only of of progress areas and of one new health expecting This unlocking to power set our the believe their convenience, points to of trend and help of belief capable excited care. includes feel that mission to a toward type a of the the continues offerings, consumer across a the as I'm second platform a and personalized treatments we by foundation specialties. history Consumers other of that set insights pricing have increasingly in personalized hyper care

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over Second, we value the particularly to Weight comes launch with management category personalized expanded strategic that GLP-Xs. the from us us scale that our consumers. offering solutions of weight enables million and is for to potential a XXX

operations ML COO President of DoorDash, broader scale helping recently further increasingly to Lastly, and and globally. scale across refine the served organizations leaders to the will capabilities organization multiple of levels Christopher Payne, our we brought us a world-class on great of depth to as brings enable from who experience that talent audiences. Board their most them

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of capabilities as scaled appropriate, and care. Our improve comes We to with from to platform our data refine greater off leverage our personalized experience ability interactions on thousands the our further kicked millions to customers' recently the has platform. rapidly and will structured with us search put incredible the business opportunities can machine across performance. many believe AI in exciting Strong of translating CTO and a We for areas in these are the bring help forefront expertise learning. at this health AI into progress hire

$XX of nearly XX% X.X to the driver users the subscriber million, primary year-over-year more of the million of The XXX,XXX EBITDA. expansion continues During $XXX our ended with growth be adding our new subscribers million to net base. the increased than adjusted quarter platform. revenue We yielding quarter, to

Our access focus personalized consumers. resonate with solutions at continues on to affordable providing to high-quality an price

increase of needs subscribers portfolio development evolving can of of by X XX% to with informed that unique in Over XX-point catalyst through this feedback individual occurs part were a An innovation expansion. is This collaboration from in internal personalized quarter personalized meet close specialists, advisers. years. our key and consumers the medical a utilizing solution, was our behind organization utilize leading in a external providers to just representing the second offerings users and

our address solution. shows target across specialties. cardiovascular specialties simplified concerns popular to the to concerns, exciting, within a health resoundingly driving launched more as This in solutions broader Consumer support health that has have span across feedback set even in routine we more address specialty that positive ability Increasingly, we its been across sexual now through value one of multiple a most and for multiple are up treatments access we've concurrently consumers specialties daily concerns or

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As a quarter. specialties new second XX% result, solution dermatology personalized subscribers in in our the utilizing were of more than a

extends impact consumer The personalization of of ultimately customer addressing for to beyond preference. stronger remove treatment a to yielding By we of able acquisition. simply profiles, individuals, are the user broader set needs barriers different

these the we price at second the will points. Additionally, these as of on offerings continue increase they the mass in in placed to of offerings market retention more expansion stronger especially be expect consumers year. half of Investment

launch multi-condition treatments particular markets. or inter-specialty a to expansion new with that those focus enable on to We access expect are adjacent into

this specialties form across even our longest will tenured new second Additionally, our new while allow factors expected us our even half. scale to also maintaining growth faster We specialties. in believe verticals the a for are robust

an capitalize provided XXX(b) facility. signed Our personalized to as us excited for an the an expertise that to registered unique order position financial acquisition This enabled profile serve compounding in recently has we our strong capabilities to and purchase agreement foundation acquired for offerings Arizona-based have In We're platform Apostrophe, many on our opportunities XXX(a) growth. FDA XXXX, to future facility. today. of

the therapy present near compounded across further as In verticalize positions term, durability such treatments accessibility Over the additional for the specialties improve acquisition us medications. GLP-Xs will supply this hormonal these this opportunities of enhances term, chain to other as sterile that operations. and long we our and compounded require

access Since the acquisition, in compounded this weight quarter We our impact more before offering was second signing GLP-Xs society helping states partnership an we having of platform XX% then, states, loss access nationwide to a to the emotionally capabilities that the launch Prior expanded a the across across we over we resonant FDA with of anticipate to the to believe than XX population, XXX(b) XX most prior of covering close launch have to expanded treatment for and facility. our meaningful of specialty million conditions. registered with U.S. X the through many this already by availability consumers year-end.

us weight impact have will that bring consumers on to the expect transformative our a society. of We within specialty further value loss enable to

XXX Over conditions, and and lead cardiovascular These including health-related challenges also cancer. impact erode can individual's U.S. with challenges challenges don't in and simply diabetes weight-related million to serious the confidence those suffer disease, individuals an alone, appearance.

individual loss lives the way we a as challenges empowered weight of impact have the severity actively driven have the GLP-Xs over awareness can matter are be in a also health more weight-related even lead consumers expect the Hims simply that the issues can seek This right of Given not the to way fit. an lifestyle of in the care the medical a on treatment and specialty foundational weight-related as industry. Hers GLP-Xs decade conditions obesity impacts our when of we to it condition. to, can have been Historically, influence preference. coming broader has consumers be viewed &

of becoming launched including fourth clinically oral-based quarter metabolic In last underlying we personalized to personalized loss specialty address conditions solutions. obesity, offering to tied less overeating annual $XXX our compounds of disorders, different ever utilizes been the to combinations a This with our year, specialty the habits. do weight and of incredibly depression has revenue, run to fastest year, scaled in It has million than so. Within successful. it a rate

formulations expect loss access on will personalize personalized equipping the central offering and continue evolve. centers breadth approach consumers our we a weight to offer and with to to ability the of Our oral to providers remain solutions, ability to

path ability approach meaningful believe experience Scottsdale segments Primack, our have have a and GLP-X Clinic, to available will in alongside informed side solutions of to consumers This who firsthand access cost spectrum offer misalignment and reach Loss, most is is to on desired of seen issues like solutions the outcome. The that reduction by care adherence provide Weight personalized only an wider for for the of providing expectations could and accessibility. drive also the the these our Dr. a of SVP level society. privileged Craig We more to impact of a effects our consumers model of today with sustainable personalized in service

providers be receive supported personalized expectations, timely medications adherence manner effect to for dosing end GLP-X believe these Each to all our solutions concerns. no ability licensed schedules manage a by in improved communication components. X and through for consistent mitigate and of a response titration Personalization be will We today. and personalized have to charge provider extra communicate consumers side the can specialties our fundamental of considerably to subscribers a to across concerns between

personalized the concerns the launched platform. The loss. breadth offered in prescribe of effect response semaglutide. on Recently, is desired weight side and first The levels of we dosages for to compounded products can providers

inform Patient state dose for titration feedback provider the appropriate end can the during their process to users.

in the will offerings expand of on and compounded platform we're the tozepatide future. scope existing available offering near Additionally, [indiscernible] add to the the excited to and semaglutide to look

solutions allows. We expect when of branded supply offerings inclusive this portfolio of will be

second specialty. for is providers to been learning component Hers preferences investments by prior scale technology weight anchored Hims in activating and network built provider consumer models The our continuing Machine loss, and experiences this on AI for MEDMATCH our by loss. across & have weight across

integrating groundbreaking further into moving explainability the also toward are EMR, with tools. providers We these empowering

and this quarters. these With scale, desired approach, optimize vital continue program continuously outcome. time. and loss the leveraging value are improve we be to providers options The solutions, help continue over medication over technology this schedules weight as titration reach to can we of expect dosages will treatment coming of each expand models improve, end will initial to a their helping range to the state user providing that selection, dosing By

GLP-X we pounds, weeks [indiscernible] customers kits subscribed pounds on weight & based a average approximately said approximately XX.X their X check data while in holistic have weight customers medication started having X.X Hers from while and oral injections XX,XXX Hims their offering, initial that, self-reported report compounded first on lost compounded loss upon loss and consultation on between later. Having already

period, diet, includes same and medications personalized XX% approach This compounded reported pattern, counseling feel history to than our progress support. of they weight holistic each less on they customers that as can't based addition loss of lifestyle, to GLP-X side and goals using underlines of offering our the During importance weight loss tolerate. a exercise have effects in treatment access and and eating have subscribers plans health the

digital for refining and technological what can better approach, help We deliver continuing outcomes believe the these our our further we long access other point provider can figures in-person customers achieve. invest in the are than a starting to we we our any infrastructure over strategically believe to By or just term.

like consumers audience what the moment to standard a look XXXX. We over in can for and the for country, are that transformative to health every pass Hers with their truly will United to delivery we that, health second positioned ever-growing to With & are set the detail. that care in to uniquely this in moment and household I and engage financials it We an greater through States. that care this personalized experience look Hims meet believe of extending is forward transforming I our way the in half Yemi walk in in

will women's our for performance Andrew. providing dermatology then In mental Thanks, continue I our XXXX. we outlook an and the health, by of start updated second weight loss. health, sexual our financial and quarter our second leadership position across overview men's and specialties: discuss to strengthen quarter,

individuals solutions strategy evolving accelerant phenomenal in an is to resonate compounded continues GLP-X high-quality affordable weight challenges what price, was at to consumers, inclusive the an personalized launched underlying specialty our is oral Our the platform access personalized loss that weight drivers to of recently democratizing on rapidly a as a offering and serving solutions already tailored to trajectory. with of

quarter. quarter, the X-point representing behind revenue from of north the year-over-year $XXX in In growth to continues the base to our our prior XX% Totally second online to a revenue grew be the in subscriber year-over-year of we acceleration GLP-Xs. able catalyst growth. Expansion to $XXX.X quarter primary million, second of drive of incredible our consolidated of relative were outside million offerings suite

that year-over-year Our the consumers first subscriber to to unique being our subscriber personalized XX% by The base as existing $X.X base platform propositions base drivers: Growth a of grew an attract primary in X evolution offer well broader our of base. as consumer to powered solutions is is to value million. continues

to offerings are encompass a expand our solution. broader we our solutions, factors of seeing increasing number As more subscribers a dosages, form switch multi-condition of and set an personalized existing customized to

more enabled also subscribing retention platform of solutions across are were seeing quarter, the higher personalized in others. personalized than but an overwhelmingly several of options Prior XX% solution of new specialties over and new of This has stronger only engagement reflective to broader dynamics. customers these the with in launch market a has we than sexual health, not to using levels consumers on-demand the solution. users Additionally, XX% utilize second driven

over During daily XX% second [indiscernible] building the stronger value quarter, around subscribing in new propositions in of oriented solutions habit. resulted to users

durable the even specialties. long a continue year, us in innovation the that half Continued there growth capabilities and conviction across launches our tenured second of that new will gives is of most runway of

learnings second personalized breadth primary driver new of more our A is rapidly ability combine specialties. to growth our brand, of capabilities to and scale past

of has the middle launch the over platform. In GLP-X individual's compounded for scale treatments this a weight frame XXX,XXX of offering time an the consumers category designed with we new expanded years. reach quarter the to oral-based historical launch. on loss X.X our in we to gain. Our address of set cause weight last specialty year, just the second rate personalized launched In offering weight of fourth been a Almost quarter, with months loss of subscribed underlying has since our meaningful to the X X to injections

some entire of We consumers personal we a oral-based as platform of expect meaningful impact as suite way from contributions of believe receive for the resonate offering. the on lines continue as that we in well We treatment solutions conditions. this emotionally have our to the to are GLP-X transformative the our most early utilizing innings solutions evolve

to term. to expanding allocation enable invest scale our growth our over the continue We in adhering platform will adherence that committed while As to this a also framework result, believe margins long we continue of to remain rigorous we framework. but to capital us

so. in of our is demonstration performance to ability do a sound second quarter the Our

life a second expected cycle, growth new adjusted X broader second margin XX% quarter. profile. EBITDA Adjusted expanded were the margins points in loss the our The to $XX.X operating of quarter, state efficiency offerings degradation. as typically margin. year-over-year was slight favorable in gains the in million. GLP-Xs in of steady Early XX% and gross degradation of slight less margin are EBITDA expenses than margin addition margins in resulted north a weight Gross In offset specialty

we X in to to on point and XX%. see X scale, to support structure. and XX% operations year-over-year improved year-over-year we continue our points improved G&A costs cost gains As efficiency costs

continued long mid- gains the over expect areas to term. We efficiency these in

on nearly yielding revenue point a lowest public XX%, the mix as stronger marking X Marketing toward newer in points percentage history retention. the of favorable is to improved personalized as combined of a a solutions shifting year-over-year cohorts our [indiscernible] with pricing company,

continue customer continues return from about. across resulting in strong shareholders. and also speak and the our lower others open to is flow. strategically Outstanding free benefit invest our has scale strengthen we in categories us as capital are acquisition to This We with organization sheet balance cost consumers through simultaneously to that more allowed to strengthen cash execution to channels brand

Free cash free of in quarter-over-quarter cash flow quarter exceeding Cash and second million $XX result. a million million, the $XXX to amount as investments in flow $XX.X expanded XXXX. short-term was generated the entire

for reiterate outlook insight the and our we into to additional to capital going how give the into I'd balance remainder intend utilize our priorities of like Before sheet. year, allocation our

As market million curve innings are alone. the previously the over U.S. mentioned, of believe adoption we potential early users of in XXX a in with we the

our priority users insuring ability the that serve across set has our on will of first platform specialties. tens to remain of an As of such, expanding millions

that journey capacity, In on factors, us capabilities personalized the Scale can to excited embark in with platform. form affiliated allows to half. many are we addition to as the affiliated this and of next second of set broader Investments dosages a the investments. and to additional facilities, automate complexity ability on take can phase of the pharmacies enable manufacturing the treatments in scaling multi-condition form overall unlock such greater

value competitive our for strengthen the unlock greater platform in further efficiency, and drives position. more enabling consumers Automation us to

we unlock for the corporate to broader our Lastly, strategy. that and The capabilities means. deploy specialties balance through platform us accelerate we and are for we execution both M&A high-value our will will new of organic willing on high assets towards bar remain feel inorganic will sheet

acquire agreement for and compounded mentioned, Andrew while optionality structure cost As new to This require medications an FDA have us for efficiency to an specialties efficiently for enter also increased foundation XXX(b) injectable providing we into that the sterile entered GLP-Xs. registered the facility. compounded in oral sets

this free In last will shareholders. of to million expectation expanding program. year. year, enabled X.X Our we average of under of rapidly $XX program. us flow deal a million the end November $XX the return the of announced to to enable the repurchase profile close capital efficiently A price dynamics is that repurchase by an inception will share Market shares us just at since cash

course to In the has the fully shares us program. of second price share the to The us value. from disconnected be utilized moments enabled quarter, momentum believe a X.X of average program from over the to $XXX repurchase we will enable an take advantage million its is when offset at completing million as to of share business as program purchased intrinsic the X our of the of next stock-based continue effect partially we years. price This dilution $XX.XX, compensation establish of new well

each to We objectives we deliver can confident balance strengthen sheet. that also while of are our continuing these across

representing million XX% year-over-year for backdrop, of updated third detail to that outlook like XX%. XXXX. quarter, increase we With of are In $XXX the a to anticipating million, the range in revenue I'd $XXX our to

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

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

margin expect million. and will ranges adjusted the revenue imply ranges. of $XXX be midpoint adjusted adjusted both EBIT and an of between XX% we at EBITDA million $XXX EBITDA Lastly, These

capabilities our second broader have personalized specialties. we the across In to expect set a half, of

more payback the a still anticipate As a a weight will result period. this investment of X-year and of more typical loss standard maintain strategic in in This of investment comprehensive marketing offering, back we our half the year.

$XXX to of million view quarter was last billion already guidance XXXX, million in our $X.XX revenue Our billion EBITDA ambitious. adjusted and $X.X $XXX in to of

the I outlook. anticipate adoption the that, from revision We moment underlying meaningful will brief of a of is personalized a revised assumptions outlining this year. our some spend behind through the consumer continued solutions of Given remainder

more the just is personalized a of years X expectation X the we that subscribers to the subscribers with close than by total number million ago. we have Our end the of year, have platform will subscription on

to year to Our throughout weight personal specialty our leverage and evolve lines technology will loss continue capabilities. both the

specialty. durability are expected As Utilization this over happens, X we north erosion dynamics across platform. entire and revenue to expect XX%, ensuring scale the of in the X margin of of near-term that revert we is points portfolio growth of remain we parties third to to rapid the the expect result expected offerings to other gross midterm. Long-term retention within while

of full income first Line profitability clear. sight of increasingly year is toward our net becoming

a our foundation longer-term mission. to margins XX%, transformative that our us achieve ability of strong millions increases consumers. goals midterm Investments and have society of to the of no we tens is for profitability a deferred in the of More the As of discussed certainty ability of tax is our the in by extraordinary that value least at more tax and we onetime this result this conviction later this drive momentum had setting of financial is XXXX, will This EBITDA million. vast will today on utilize income when than of a adjusted to any ranges. If increase bringing likely need goal platform $XX.X our it the get they XXXX. allowance of has impact allowance attainment for of XXXX our apt to to the exciting impact not around later our of This is trajectory significant of valuation end majority allowance. holds, reversal year. of our give a a this previously net our fulfillment assets

helping better as turn power Hims without for the this fulfill All like health. work possible hard shareholders great across world the operator that, questions. well the of dedication & helping our to and would our the us to thank I'd employees Hers. them With call of over I'd to for mission as through of feel the of be not like our

[Operator Instructions]

question the Canaccord. Ripps from comes from first Your line Maria of

here. Congrats strong on performance the

I appreciate color any the share year GLP color half the your that's continues business well. secondly, the And core to outsourcing of of year all guidance. you So sounds projected able us can revenue in really Is like do there It with to around your terms in economics of gross and for the sort your second full how embedded acquisition your contribution term? outlook? of longer then impact this facility margins would unit

Thanks as delivered This business. for the continue quarter, mentioned, is of business second core Overall, north expecting I core by the performing. we're on the the revenue. Yemi. of the of offerings Maria. in of how is year GLP-Xs, $XXX very question, the across the In excluding excited suite as innovate What business, think the we're half personalized second to million we'll core

very days X so early And think we're respect than in we With out to the launch. to much contributions, remain less do specific momentum I launch the GLP-X from of months there. expect being the the strong GLP-X from

second the see did quarter, very In momentum. strong we

confidence out nationally. specific I to around the launch strong is definitive that we this think pleased too or product, the very point initial product in vertical the specific and guidance for early off we're roll it's provide a momentum of at but specialty as very the

mentioned specialties, we We for With that that or that be respect across a few products I increasingly, processes things. I to historically of facility form the so you look question that we for think specialties can we optimize change verticalization, typically, your the specialty and do the around will that margins, gross to scale. in those as the acquisition the other as see and think XXX(b) margin within that opportunities do around second products see

unlock on will compounded for I it cost enter future. the think offering. us to provide the to ability also, GLP-X But the within the optimize specialties it structure I does additional think opportunity

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

for One Yemi.

mentioned total about talked You about more potential you investment we generally the the states? talk should the marketing And the year. are today breakdown you about about we going Can expect the marketing second the understand year, XX of year. much for GLP-Xs of election, your is as as are core. dollars end of half we just months, How Just from the the get in the to impacts where of live next think the marketing then spend the back that towards really investment in the half think by incremental in how XX about versus trying new also to states GLP-X are business? going dollars the much you GLP-X, those think of to marketing strategic to how going

for the Yes. Thanks question, Allen.

a I think it's really good question.

fact specific I the the multi-specialty with the offering, of a think are in GLP-X can specialties. of few a to beauties is & across a way users is, that there that's have channels. Hims I is think component think back, the platform the that be we marketing are think There we the dimensions. that Hers of one pay ability we I a have stepping form just traditional connect of But multitude

We've even aperture start come personalized broaden a a of as the so And will we of you'll the as the in portion that capabilities that towards new, this go flexibility of dimension. ] that & is Hers. given left see room also fact you we that some have set well across number some meaningful to ourselves here of I auction we solutions in our the weight speaking in the across Hims [ an see specialties loss of the and a just lot investment spend are think to offering. multi-condition as core Increasingly,

more inclusive of the weight of around broader ] spend the a speaking in portion GLPX We of capabilities consumers the that. to meaningful do platform, anticipate come form to [ of the in

I kind think provide around how for of of think to we a firm it. reference that just

with think payback overall period. We'll X-year of we to ourselves be position structure. look also I spend the the maintain will disciplined economies still very will It from scale.

capabilities And we XXXX it's in the leaned back channels. see and the different similar what of of variety half we we saw dynamic new front in the a XXXX, as started so to to I scale, in of half platform a think to

half in basis points I leverage to per X expecting annum see years. a think then that expect X marketing second on and the we mentioned we're that to on the next the couple of of for

are How broader where Great. just list. strategy? about lot think GLP-X Can stay in in the obvious talk this taken of about Andrew. these a should we've And durability scenario the we to of around for it's market drugs gotten one shortage I then a Hims questions ability think opportunity. off the GLP-X you the

I'd expect currently Allen. access to we're called of couple us the to [indiscernible] days. seeing and day, I last to a of coming including by get still change us every these GLP-Xs, lot start patients to thousands saying in which struggling Thanks, tirzepatide, of Yes. me wouldn't

we think the durable. alone. breadth are for $XXX allows in as as has and really think we off-patent the that of million robust that have inclusive need in the the compounds, doses, oral the believe the the well portfolio customers and I it given compound, shared grown that But of is run portfolio I we specialty rate personalized this our branded to the business, GLP-X commercially the dosages which very fastest in remarks, oral providers GLP-Xs augment like we medications, of patients of offerings personalized that as think available is which range lierglutide, combination addition

personalization well the the with and level no clear patients we which necessity these shortage know, allows regard that I platform this think we've that really I of think I But side there a And of clinical be exist for established to really expand one-size-fits-all robust extends are there's expect that the would real medications dynamics that effects. it. shortage really will the precedent exception, number avenues. will of need that There are spoken for across as a with think about compounding this beyond dynamic. there's these really people beyond

Our comes next line of Guggenheim from question Jack Securities. the from Wallace

Congrats On quarter. a great

the existing enough to to in different or maybe enough product and possible. need a to the shortage the going and enhancements be collecting follow last MEDMATCH personalization personalization personalized medication. factor, up how off you're follow-up enhancements platform make empowering that element is is And as -- do to there is the that, the operate list? a much to wanted are on through data way. be Is drugs the question or to regimen be after exemption Just capability to the personalized Or to further personalization personalization a the a in dosing existing personalized a it that those form the that to ask under market they

experiencing Yes. that of or compounded form qualifies the is not and a this Thanks, to decades exemption, getting intolerable. with [indiscernible] often there's of And you relatively hoping established regard are they're short clear, effects a what as is for, patient question. that be it the is dynamics been Jack, outcome for side answer factor, personalized. dosing as The the could they outlined are it's that

what compounding customizations of types of these established, is clinical overwhelmingly and is the But clinical ways, personalized case. the well the met really available. necessity dosages necessity well in So are is commercially not on of think relatively and medication I established right? personalizing you This many

that offering dosages fantastic really GLP-X. patients personalization care our are think otherwise of the high-touch I exist experience that wouldn't able so be today on to to the benefits And platform

medications of world, what half the I an avenues. year a With medications that in branded next happening right the options combination shortage like is the second in post future now there's of is for and oral to is and to continues This is point. therapies on the available expect of, in would patients bringing side. a also this expansion new to regard breadth that an market across this compounds year are oral This as [indiscernible]. MEDMATCH, we think exist I And when access all the

expanding But not experiences. provider. And be when that via any We patients level that penetration that combination is critical. today the providers only gives suggests really, far a result of platform, also right hopefully than we of really in you can believe already we nuance patients able is term, incredibly but the breadth are together telemedicine MEDMATCH Long outcomes only and honestly, strong. brick-and-mortar, get And portfolio superior think breadth right as which help for and only really the the the online-type is MEDMATCH in will to that the is think dose, of the data that And necessary of right world-class to adjustments you clinical of the combination are dosages having it, the expanding patient. range identify that so on match capabilities

Yemi, Got X-parter just a you. quick guide. And on the then helpful. That's

heard the Just full erosion Or from the a the that wanted in a it of it year leave launch half And margin to I'll there. correctly. year make comparison? half sure that I gross The Is back categories. is versus in second comparison? first half

a versus it's for question, first half half Jack. Yes, second comparison. Yes. the Thanks

we some expect optimize investments start structure think look category, near mentioned revert once we to I we the term, so cost overall midterm expect that but do I earlier that to that the for of weight GLP-Xs, specifically in do come online. compression, we And some in while think to the the

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

this in recession, I today, this economy everyone like it a thinking of know probably if but question kind I'm a in. curious gotten now, you at of any you year demand? if out where haven't signs slacking weakening describe might stock a so, in can that consumer is least a potential about about seems coming And seen be if and there you've

this question. the for Thanks Yemi. Dan, is

overall, from we've seen the not I second quarter, meaningful degradation think any in consumer. the

other to during to periods economic similar we continue of that uncertainty, the durable. see think remain do I consumer

is geographic behind consumers I end locations think diversity there's different levels serve ranges, One we this. the that the and a income is just broad. reasons the breadth of few pretty across

resonant of impact The day. emotionally second consumers variety every that each conditions how we they and across is they a fill of look, serve the wide some most how that

these reticent economic that that during moments observed very of uncertainty are so to go. And is consumers we've historically let

leverage more our around by even able and of to continuously are the with access We able more collection point price with solution transparent at are excited of attractive to providers, that to optimization is the attractive and do for personalized a match the get cost a that the of oftentimes holistic able across place products an so. being solution matched structure, some most provide consumers them their with points some price to at being to been technology to from the deductibles platform to less than

slowdown. the a in based to uncertainty, to during And to the these high platform seen we've we've seen do And for of consumers economic we upon so periods think ability conviction ultimately historically platform and the I have continue come for grow. to what not overall, very continue to

it. Got

more update that Okay. mentioned can if curious across to categories. provide And taking Andrew products product on a categories? product single both or you taking across you multiple platform, as any folks folks a GLPs, in are other cuts across across of I'm well, that an cuts who categories have or single how drug drugs folks coming converted And other for in have the to then many categories categories? come them the of

off. Thanks, kick can it Daniel. I

speed last On acceleration the the the of I personalization we don't This XX% pretty ], side but we now and entire the year. would personalized and to astronomical of point rapid relative is cross-category specialty personal [ specifically side, products and crops are XX% subscribers new to mixes how the disclose shared [indiscernible]. the pretty adoption, those acceleration of and planned

acceleration across of [indiscernible] of So the aggregation which I back there's going year and specialty of think specialties. case to half customization the many be

patents weight that specifically on these these the complex of think really issues. mix have I category,

for to category just will person frankly, expect patient, the the holistically oral would there combination through treat cross whereby scaled metabolic both more and cross ability dynamics, I resistance, specialty category binge oral because compounding obesity had there therapies in It's significant options, so disorders, to because right? depressive it count concerns we bundling think underlying quickly is think be the general, eating, as that think well have a it's so and us treating success. insulin And very I had I conditions, as I the be many the for [indiscernible] it. eating great category really such have could

these seen think company compounds you more on be and maybe see any more a then than will many the and in market. patients I bring we've reflected which approach, offerings platform bundles is to I than more requiring holistic will patient that the think the

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

below get the additional economics are GLP-Xs to how offer Could way the in additional And GLP-Xs subscriber you in revenues adds how and guide. market? and around to just your of pipeline -- that around love around able the me provide the unit color you're assuming color at monthly others current a what you're would

structure benefits from I that are -- pricing that structure today, of to these negotiate to that points. on number able platform, price are GLP-X chain, to is just reflection the that cost enables the how supply at third offer that we our when consumers we the scale us place us really the partnerships how around we with we think the a what we do just a parties across enables given we're it or the have of

with investments economics. provide I our increasingly think sheet, make of more unit an of with line future our the even is balance able what's scale, exciting we're in that to strong set to sight

think think stands what to as they economics mature. processes, observed to the other season opportunities specialties margins margin as across basis, on we today, we're and on a to dilutive started will gross do optimizing And optimization continuing verticalization, in you logistics, the gross have the structure look so continue I I for the GLP-Xs, effect a confident only cost we've investments that as make bid in the

subscriber revenue of subscriber. and we of do the that so And half at past. themes trends put year necessarily the I that around guidance broad points reflection the GLP-Xs the in muscle give respect the don't gross to expect. a of this that and the price can some think we With of back the being per some what specific We monthly in historically us but average to able speak adds I dynamics per there, are are utilize to

a subscriber. a I That overall average will that and on per set levels. to point the basis, to do resonantly growth of a as we GLP-X in the The few month the and revenue lead roughly come dynamics offering. weight to for of per $XXX as oral on the low compounds different month monthly category monthly $XX to price are majority increasingly stronger to the Overall, vast stronger from do think coming there growth subscribers expect continue the in, we platform on expect

the accretive attractive that very offered at. the it for business of is is market, the overall that points While price is the to core rest

the continues offering the year. the on dynamics scale, And we average upward expect of so in as weight per monthly subscriber half revenue to would back the

and opting the do those quarter opt users offered to switch users are that see for value solutions we consumers. existing solutions. our coming more users well increasingly and making That's more more more as each from Additionally, new as for there's as personalized

launch lead across unique would also form to back that more continue the average as to on more that monthly the accelerate revenue of the year, conditions. And so multiple cut we to we offerings launch per tailwinds We some again which as to to factors in personalized subscriber. expect look look half would trend

element vast do that monthly an platform. the that So in back of do majority average year, come elevate new we on half is we the from the to the to growth revenue additions subscriber per still but expect onto and expect of increase subscriber

Seaport. comes Your next of Aaron question from from Kessler line the

kind updates in any the heard questions. revenue. of of personalized you just guidance. solutions of on first key including across well. Or categories, your couple Maybe And health and health increased other then on well? really of A weight categories? Is loss? some as any mostly terms the I as sexual to just it categories mental dermatology, a attribute Would is it maybe

I then Andrew and can of into more dynamics let to speak broader the nuances detailed maybe there. Well, like the some cut

the thanks question. Great. Yes. for Aaron,

We really now personalized it's across actually particular, more side domestic just but the with offering and is what's categories, health talked it's think Xx I not year-over-year. [indiscernible] about been product interesting engaging behavior. it's up engaged personalized, on offerings. is In

multi-specialty business, leading now the that population engagement outcome, for a business transform the if in personalized [indiscernible] you one-off on about personalized is to value personal outcome, [indiscernible] think the solution. XX% of And is open this [indiscernible] one-off multi-cap which in think [indiscernible] the we on high demand So much or spectrum daily were powerful. side business efficacy across but of in place that is and really any [indiscernible] taking [indiscernible] XX%,

that weight in new adoption where think function the you sub have the aggregate, categories. seeing think [indiscernible] robust categories robust on really of in of [indiscernible] already we're is unlocking very the top what some [indiscernible] I health a loss set I business, mental other of

Yes.

a I that was Andrew on because breaking I Aaron, think up bit. just follow-up a think

the do specialties. products elevate or innovation more across of that of I of what consumers as in offer do of both we specialty. half multiple of of our think adoption switch the We the and in is sources offering we more will terms personalization What value to continue the choices we those, seen have factors breadth most to that the new conditions cut to specialties. back form within to across within expect opt see a also the we year, multiple expect accelerate is of

of back specialties popular we solutions the expect year bring half cut the is for ability across concurrently. in do Additionally, to the that

solutions for switch. And so or greater are with that's expect whether users the frequency existing that, revert we of do new and users to that our to more either that, more opting more consumers with

seen health the we've we seen uptick what rapid Andrew of as is the personalized in business, a like solutions the brought mentioned sexual such multi-condition in example health products heart an on so as of products. adoption the Hardeman his we've or in remarks solutions that And the prepared

to folks more been of result more of and more that's opt a to we've habit historically and a switch an daily As that, of type especially seen dynamic. on-demand

specialties the set of assist matching with providers a successful to solutions likely that that effects. things. We personalized generally can less you're results few yields to in a yield side to ability potentially broad consumers to our In in that users more will the And so year. think weight our very value of And But and health so. we're when similar across to that. as mental we're excited continues of management confident category, back with technology very that our is see the to half broaden combine by the I solution category, more able that, to all do offer

side being the the as One is consumer of well mitigate or trust. as of as the as greater effect Also value it able see meet what acquisition. that generally as both preference well just retention is, that we stronger build do their result consumers stronger proposition dynamics concerns is of to a fosters retention a yields to

the that's portfolio by year. second very so And the the in we're come of half excited to

line question Leerink Partners. from Your of comes Michael next from the Cherny

it, come about of to the, the management. been you this some I back I your GLP-X sit. and components weight questions to long-term within guess, I business multiyear patent want protection know call dynamic where asked have of

If mean, have evolving ability some dynamics given give you the these examples, to But is I of clearly think Novo have. over where market place? and put you scale I in out I an some the on have to you seen components maybe this protect going offer that well. are obviously you've to they branded can like way us of obviously also, go Lilly the also know still the And franchises to time. ability companies

of all your So the time lines, of relative I the guess and to all marketplace, compounded versus product those how around availability, some on to brand mix over where patent you their this of we along their traditional dynamic develop in tickets? dynamics expect sit knowing should the focus

Thanks, take Michael. crack. a I'll

a look medications studies But there's fluidity the dynamic of if I to to FDA think that years, new with the are XX and in over probably that you at on or clinical come the high you shortage. going next given years, of expect right a degree X going be the couple few changing to the market also pipeline. next medication think current I just should I market think at level, there's only some not be given just

off think GLP-X the with kind medication innovation, I at of XX out liraglutide looking there all you're now initial coming learning of So time. to off X of that first expanding and years

is can get where the a have what really you the achieving in -- business expect a think set hood that months. growing million durable about question, I or about, talked we that platform, the really and lot combination a the in of that offerings compounds that is X we launched run oral fastest is some there's So I on under is just believe north we launched, think results specialty in fluidity ever rate $XXX we've broad confidence in as we that line without itself X of of

of without to of offerings coming expansion and and outcomes. medications. question, long see be, And of access every think that love on side, the a really having do there's thousands patients I horizon they and injectable given these that going the platform then are off that single in evolutions huge on to We demand. saying there expect can't get great day patients availability, just We

we so able to offer And be extended to form for doses suspect periods. some commercially in available we'll that

you I of we available and to X these not need established are personalized And dosages business the in precedent have and respect last years. market what often is everybody really directly or which where really entire operate large there's clinical X the under for titration that the are personalization augment realizes and pharma. commercially cannibalizing the we and the on personalized The an branded and of top is dosages. customization of that grows think regardless on dose platform compounding as This to operates exemption excited exists shortage. that, bring for -- as medications said, supply an patients well interested as for the as are

combination and the you very necessary for included think our with that about where if that definitely when clinical long for needed will compounding the believe to over medications, large pharma a patients. we're in So what few, legitimate we of is And clinically portfolio, any be comes customization is and rest on of that period examples, seeing patients after time. available platform some these

can how your the shortage? much brand that And Novo. I current for offerings. and one especially given quick with question, products as you ask off your future are day-day if of more like maybe some What So Lilly preparing is offering relationship come

-- probably saw, as We years question. on to great is a you COO. XX, [indiscernible] XX of Board north it's guys as recently the brought President Yes, for and there who we

those branded of of market, application medications. the want are supply almost which think and without to see We They brand in know benefits brand, the as easy the question is trying same I the everybody place will, some they pen. we get that medication customers they and for the self-inject trust and they all sitting the quick medication. in that wants --

our if we, many like to almost source best think, everybody, others, supply. are So not trying I

easy. we what it's you think not can is tell I that

not but some to There's a and volume, try available customers. doing we best our supply really of are aggregate any in our durable have for that to

comes the from Your Truist Jailendra Securities. of Singh next question from line

on gross but One gross the margin follow-up mid-XX% quarter. I here, I'm know I'm some making getting in on margin trends. assumptions to offering GLP-X low

margins offering it kind to Just to confirm seems XXX(b) expect to ballpark, a bring facility the if I'm on board. improve the outsourcing in of this you as on

your and currently you owning that have way lapse, facility on in impact with does shift own Just how trying existing understand the to can with relationship So your facility contractual there to agreement facility. with leverage economics you aggressively on are how you would if any your volume facility? your any partner, any point, BPI quickly restrictions own and put agreements which can that

Yes. the for Thanks question, Jailendra.

products any product. don't specific term, near Like margin the we of gross in we individual on do the think degradation. some margins degree gross other comment see I for most

facilities we've of optimize everything to the cost, Those improve that pull we intelligently the products is in logistics the on to automating able and being to historical season reduce dynamics been that economics. some pulled the levers that service a as of information from able supply different unit chain, to that have levers think I in past. customer This multitude of the the their tend consumer to you've tenure there's have so been product to through adjust verticalization.

GLP-Xs. in confident do those our we're time to over ability think with each I of

In margin to the multiple see the play. as those into gross to next into near some we we do compression, term, of come start but levers out go does start ability to year, deploy expect to

has tend investments, mentioned, look multiple think do have and on angles we Andrew horizons to as make to think I to historically so we them about multiyear the in And as so. past, different

couple optimization the in while this the as there's we're it's levers expecting. of so efficiency And scale do points of lever, the terms of those that individual ability midterm it's there's of in to in half the year near revert We we the term, the But or that. processes. that start inclusive like we verticalization verticalization roughly some degradation to of have expect only only in GLP-X back optimize our no of

the over pull the levers to ability expand multiple and have multiple margins time. We

to your there's any restriction volume, clarify, to right? from pharmacy existing partner Just shift no

happens invest of what for us deal. individual We said, what or also There's able speak a expect do to specific there's around don't that partnership to time like period to looks accordingly arrangement dynamics the is partner. up time to for close I the period the for us think the any appropriately. be scale That what to we of

expect I in those think occur midterm. that to dynamics we more the do

so And we as expand. gross those occur, expect to margins the would

question from comes Santangelo Jefferies. Your from line next of Glen the

quick compounded I Just about buying these And multi-month product. many at like, the subscribers? average, more time? subscriptions. a Anything how the to of help types us about that? advantage want GLP-X on a to months you a give demographic of can they think taking tell follow-up. many on I are couple little us subscribers for And bit have then us me. up Could to a Yemi, of follow you the Are of

get longer-term all commitments multiple across the subscribers see you require price way titration the oral months to weight to schedule make overall for both effects appropriate majority What the of as as just that Glen. I well points for it this of on see of do question, at Thanks We a GLP-Xs, more and the the do months. tend emerge. really as solution, you the do be to see think of attractive. is vast see -- multi inclusive does Yes. commitment GLP-Xs What we also product is through the up oral is the management and

consumers we multi-month, the a solution. of a majority see And do multi-month result opt a that, so of for overwhelmingly as

thought. I what that's Yes,

And X I revenue the works? ship it is, perspective. sort months how lot once. X question you a guess, at months modeling recognition, to sort upfront of from months clarity you the once can would ship So about think semaglutide revenue that, book any I a my compounded I that how of all or the us mean, I of of help think related that then you follow-up when if this on

Yes.

effect the GLP-X more or short we between the X do and the that of months Typically, ship What that ship the individual well that I to state. of Is start is as that duration across more answer a exceed state do number revenue oral the days, we as on as are depending does result selects the historically. do I sheet opting as that typically increase the see balance that see an it subscriptions months we So months think no on solution. consumers as more vary deferred of the well. think to we duration for component -- X that longer you than as

So cadence. to product type to GLP-Xs, typically X beyond particularly for typically, the that don't X given beyond frame we likely within of be the costs it's going that, time extend months

And would consumers if so effect you deferred continue to is of sheet. from balance take be revenue the expect the see to longer on that would expand cadences, on quarter-to-quarter

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

guys the differentiation like other product, GLP-X how there's what evolve probably it in just And if Yemi And within looking GLP-Xs the there? correct about end want guys then have the right if I First, year. compounded weight injection mix to about people how drugs? the wrong, that many versus a heard guess, of category. of you draw by category, can you I GLP-X on number talk mix. hear bit was. you I then the if have are And you tracking expect million X forward, that talk love that sure But I then towards I'd loss interested you I me just you're you clarification. I'm can said guys or business of make or just subscribers those the versus product the you on a to a Andrew, to little point or in

of can I Maybe that take question. the front half

into it Just was to -- can it personalized go specifics. was clarify, Andrew George, X million I And think way the subscribers.

Okay.

missed. I So

Sorry that. about

George. Thanks, Yes.

of one offering. term, like see within long would almost I I think every we across vast the specialties, suspect diversity pretty our

better talked the north months. very X is that branded into think our we we And variation. further look job You see we've generic of side segments as specialty had X if ] how on growing our in medications the to is within we're run for have as the we is had specialty medication, doing I map Viagra, we've $XXX to liraglutide expanding customers we And no rate because in serve the I see health as themselves branded really on of just there's the let's about side if get each those Viagra, had segment product approach, expand there And mix, really million a [ on think sexual customer. always as that's think compounds our customers. well, road think a fastest that of great compounds. you a very, which we no quickly, of oral are large business, we weight the seen as already And loss historically we about options continue When just I like that well we off-patent concentration back, concentration. example, to really know custom that and ever current

they out have? conditions and further we what even figure struggling are other types adherence do make concerns better, can clinical their we other the of And with, optimize Let's the how or specialties outcomes. experience can how what

suspect, would variation. that is think they get What other all conversation specialties, that I are really clear incredible changed pretty GLP-Xs like I the more wide while incredible obesity what's is So is medications, to abundantly you'll even cultural management. around have

to are and to get have stigma taking really week a think now action because empowers think us I diminished, has that weight losses get thousands that that looking and fantastic treat of is shame tens for care. with people been to every pharmaceutical action I and as really You associated to which just people of disease, obesity treated coming it

so disease in that is driving state and of the tremendous itself of awareness is something exploration. And interest really as treatable the

the them scary loss, with I be many or customer medication a that is want seeing -- that, These I quite and And go people, and or top of we who and bit impressive things something might process, that an something little are as I can come as known think stages slower. a see right, people actually a want possible and highest chew for has I in on more involves every to but a people and of extreme like and we're between of on self-inject, right? not around [indiscernible], that at in then the of right? in their for come be lot dissolve much want weight tongue [ most oral are everything, been that is chance and what means of And of that very have that tried say, Many there's different decades," lot them in have come ]. "hey, to going spectrum. they often something

So takes large it there's really mix customer massive it there's this is represents a not place, really only a product that such category, but because in mix that part so a cycle different of is perspective. everybody very to be the at point of their is and with levels different and caution of looking and aggressive a coming different types in country in

Your of question line the Piper from Korinne next from Wolfmeyer comes Sandler.

for of the how early retention provide still saw you launching, have in right launch? that know far? those of change that since color you after but has the I in patients with any cadence the of seen kind so you sign-ups a sign-ups monthly GLP-Xs little GLP-X Could you're the days, on then bit been And

Yes. Thanks Korinne. question, for the

this of in I take folks think is are majority providers going selecting medications since well do nature the oral across of process over it than vast the of think the a the truly that longer the cadences education what as that and through Consumers an is I saw see or throughout does Oftentimes, seen we from and month. launch, the individual lot as Again, they're the have the majority the to multi-month to we flow benefits medications. journey. from these due with recognize platform.

the dynamic with longer-term consumers the in I as favorable of you duration that more commit longer cadences. with cadences think overwhelmingly an majority the of for that paired economics opting to consumer resulting

days has this at in where every month much been in the little early point. the product market a than for very less We're

giving what providers users as that to is their selecting are as seeing cadence think based the feedback I that upon are and the check in. the well are we users that

months We But are point. X sound. strong than will we very have this retention think confident and of that data that said, be at I less

get it's there. So hard a read to meaningful truly

you last that capacity And related just did that this -- your let I from year alter guidance? Great. kind the both Or expectations, regarding following year for in improvement news could next you of then us Lilly is know and nonevent and the your internal there, a week announcement? to that for guess,

say, on a don't alters Yes. expectations Yemi mute. guidance. But material that, would I be might that I Korinne, there's think

the you offering GLP-Xs can the on [indiscernible] business, only are the current platform today. tell As and from currently

all think forecast. the of into I so existing And was that built

for And there are time. questions call. concludes conference further you no This this today's at Thank your participation.

disconnect. now may You