Hims & Hers Health (HIMS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 52% year-over-year to $315.6 million, driven by rapid expansion in personalized healthcare, weight management with GLP-1s, and strong consumer demand for accessible, tailored solutions.

• Net income reached $13.3 million, reversing a prior year loss, with Adjusted EBITDA of $39.3 million and a subscriber base scaling to 1.9 million, up 43% year-over-year.

• Broadened personalized offerings across four out of five specialties, expanded weight management, and added experienced leadership to support scaling and innovation.

• Launched new multi-condition treatments, expanded compounded GLP-1s to over 30 states, and announced acquisition of a 503B compounding facility for $31 million.

• Completed $50 million share repurchase program and launched a new $100 million buyback authorization.

Financial highlights

• Q2 2024 revenue: $315.6 million, up 52% year-over-year; Adjusted EBITDA: $39.3 million (12% margin); net income: $13.3 million; gross margin: 81%.

• Free cash flow reached $47.6 million in Q2, with cash and investments totaling $227 million as of June 30, 2024.

• Marketing spend as a percentage of revenue dropped to a historic low of 46%.

• Average order value increased 27% to $121 in Q2 2024; monthly online revenue per average subscriber rose to $57.

Outlook and guidance

• Q3 2024 revenue expected between $375M-$380M (65%-68% YoY growth), Adjusted EBITDA $35M-$40M (9-11% margin).

• Full-year 2024 revenue guidance raised to $1.37B-$1.4B (57%-61% YoY growth), Adjusted EBITDA $140M-$155M (10-11% margin).

• Strategic marketing investments planned for H2 2024, maintaining a one-year payback period.

• Expectation of over 1 million personalized subscribers by year-end and continued rapid growth in weight loss specialty.

• Anticipate near-term gross margin erosion of 3-4 points, expected to revert midterm; long-term revenue retention projected above 85%.