NEW YORK, Aug 10 (Reuters) – Hims & Hers Health on Monday raised its annual revenue forecast and said it beat second-quarter revenue estimates, as the telehealth company benefited from an increase in subscribers and expanding its personalized healthcare offerings.
The company has said that its pivot to FDA-approved treatments such as Novo Nordisk’s Wegovy helped drive engagement and traffic across its platform, although it weighed on its margins.
Hims reported second-quarter gross margin of 64%, down from 76% a year ago.
Shares of the company were down 1.3% in volatile aftermarket trading.
In May, Hims said it would pivot to offering branded weight-loss drugs, moving away from lower-cost compounded GLP-1 treatments that had helped drive growth to branded versions.
The company also announced a partnership with Novo Nordisk in March to offer its blockbuster weight-loss drug, Wegovy, on its platform after the FDA moved to restrict copycat weight-loss drugs, ending a legal dispute between the companies.
The company previously said that the transition to branded GLP-1 weight-loss drugs introduced restructuring costs of about $33 million, and that it expects to return to profits in 2027.
“We expect our domestic business to continue accelerating through the second half of the year,” said Yemi Okupe, chief financial officer.
The company also raised its full-year revenue guidance to $3.1 billion to $3.3 billion from $2.8 billion to $3 billion previously.
Hims has a goal of reaching $6.5 billion in revenue by 2030.
The company’s subscriber base increased to nearly 2.9 million in the second quarter, up 19% from a year earlier, while monthly online revenue per average subscriber climbed 21% to $92.
Hims, which sells treatments including weight-loss drugs and hormone therapies, has also been shifting its strategy toward personalized treatments, amid tightening regulatory scrutiny.
(Reporting by Amina Niasse in New York and Sneha S K in Bengaluru; Editing by Shinjini Ganguli)
Comments