Hims & Hers shares rally as forecast bumped higher and more profitability said to be ahead

By Bill Peters

Wellness company's investments in treatments 'will position us to achieve consistent top- and bottom-line growth for the foreseeable future,' CFO says

Shares of Hims & Hers Health Inc. rose after hours on Monday after the online wellness platform bumped its full-year sales forecast higher, following sharp increases in subscribers and profits during the first quarter, as it tries to provide more personalized treatments.

The company - whose Hims and Hers websites offer telehealth services, products like hair-loss and anxiety treatments, as well as drugs like Viagra - said it expected sales of $1.2 billion to $1.23 billion this year. That's up from a forecast for $1.17 billion to $1.2 billion offered in February.

Shares of Hims & Hers (HIMS) were up 13% after hours on Monday. The stock was still down around 1.7% over the past 12 months, when measured by Monday's closing price.

Hims & Hers reported first-quarter net income of $11.1 million, or 5 cents a share, contrasting with a net loss of $10.1 million, or 5 cents a share, in the same quarter last year. The profit figures announced Monday were above FactSet estimates of 1 cent a share.

Revenue jumped 46% year over year to $278.2 million, above FactSet forecasts for $270 million. Subscribers on the platform were up 41% to around 1.71 million.

"We are confident that ongoing investment in a broad offering of high-quality, personalized solutions at affordable prices, combined with a trusted brand and best-in-class technology platform, will position us to achieve consistent top- and bottom-line growth for the foreseeable future," Chief Financial Officer Yemi Okupe said in a statement.

Hims & Hers has tried to offer a wider variety of treatments - including weight-loss drugs - in different forms and dosages to suit consumers' preferences.

"There are still so many barriers for why people are not getting treated - whether or not that's access, or price, or stigma, or education or a lack of personalized choice," Chief Executive Andrew Dudum said during Hims & Hers' earnings call in February.

-Bill Peters

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05-06-24 2011ET

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