On August 5, 2024, Hims & Hers Health Inc (HIMS, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Hims & Hers Health Inc is a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals, enabling them to access high-quality medical care for numerous conditions related to mental health, sexual health, dermatology, primary care, and more.
Performance Overview
Hims & Hers Health Inc reported a revenue of $315.6 million for Q2 2024, marking a 52% increase year-over-year from $207.9 million in Q2 2023. This figure significantly surpassed the analyst estimate of $299.94 million. The company also reported a net income of $13.3 million, a notable improvement from the net loss of $7.2 million in the same quarter last year. Adjusted EBITDA came in at $39.3 million, up from $10.6 million in Q2 2023.
Key Financial Achievements
The company’s gross margin remained robust at 81%, slightly down from 82% in the previous year. Net cash provided by operating activities was $53.6 million, a substantial increase from $16.8 million in Q2 2023. Free Cash Flow also saw a significant rise to $47.6 million from $10.0 million in the same period last year.
Subscriber Growth and Revenue Metrics
Subscribers grew to 1.9 million, up 43% year-over-year. Monthly online revenue per average subscriber increased by 8% to $57. The average order value (AOV) also saw a 27% increase to $121, reflecting the company's ability to attract higher-value transactions.
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $315.6 million | $207.9 million | 52% |
| Net Income | $13.3 million | $(7.2) million | N/A |
| Adjusted EBITDA | $39.3 million | $10.6 million | 271% |
| Subscribers | 1.9 million | 1.3 million | 43% |
| Monthly Online Revenue per Average Subscriber | $57 | $53 | 8% |
| AOV | $121 | $95 | 27% |
Financial Statements and Metrics
From the balance sheet, Hims & Hers Health Inc reported total assets of $480.5 million as of June 30, 2024, up from $441.2 million at the end of 2023. Current assets stood at $290.9 million, while total liabilities were $118.5 million. The company’s stockholders' equity increased to $362.0 million from $344.0 million at the end of 2023.
Commentary and Future Outlook
Our second quarter results mark an acceleration in what was already an incredible trajectory. During the quarter, subscribers on our platform approached 1.9 million, increasing 43% year-over-year," said Andrew Dudum, co-founder and CEO.
An approach to democratizing access to high-quality personalized solutions on our platform at an affordable price continues to resonate with consumers. We are seeing this improve our ability to attract new users to longer-tenured specialties, while also allowing us to more rapidly scale new specialties," stated Yemi Okupe, CFO.
Analysis
Hims & Hers Health Inc's strong financial performance in Q2 2024 underscores its successful strategy in expanding its subscriber base and increasing revenue per user. The significant growth in revenue and net income, along with the raised full-year guidance, indicates a positive outlook for the company. However, maintaining high growth rates and managing operational costs will be crucial for sustaining profitability in the long term.
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Explore the complete 8-K earnings release (here) from Hims & Hers Health Inc for further details.
