Hims & Hers Health (HIMS) Q3 2024 earnings summary

Executive summary

• Achieved 77% year-over-year revenue growth in Q3 2024, reaching $401.6 million, with net income of $75.6 million and Adjusted EBITDA of $51.1 million, driven by new offerings and subscriber growth.

• Subscriber base grew 44% year-over-year to 2.0 million, with over 1 million using personalized solutions and strong momentum in health personalization.

• Net income included a $60.8 million tax benefit from the release of a deferred tax asset valuation allowance.

• Completed acquisition of MedisourceRx, a 503B compounding pharmacy, for $31 million to expand GLP-1 production and automation.

• Launched new offerings, including personalized titration for semaglutide in weight loss and a Service Appreciation Initiative for key workers.

Financial highlights

• Q3 2024 revenue was $401.6 million (+77% year-over-year); online revenue up 79% to $392.6 million; wholesale revenue $9.0 million (+28%).

• Adjusted EBITDA was $51.1 million (13% margin), up 4x year-over-year; net income was $75.6 million, including a $60.8 million tax benefit.

• Gross margin was 79%, down from 83% in Q3 2023, reflecting product mix changes.

• Free cash flow for Q3 was $79.4 million; for nine months ended September 30, 2024, it was $138.8 million.

• Net cash from operating activities was $85.3 million, up from $25.2 million in Q3 2023.

Outlook and guidance

• Q4 2024 revenue expected at $465–$470 million, up 89%–91% year-over-year; full-year 2024 revenue guidance raised to $1.46–$1.465 billion, up 67%–68%.

• Q4 adjusted EBITDA expected at $50–$55 million; full-year adjusted EBITDA at $173–$178 million.

• Adjusted EBITDA margin targeted at 12% for 2024, with a long-term goal of 20% by 2030.

• Management expects continued investment in marketing, fulfillment, and technology to drive long-term growth.

• Company believes current cash resources are sufficient to support operations for at least the next 12 months.