Q2 2024 Hims & Hers Health Inc Earnings Call Transcript
Key Points
- Revenue increased 52% year over year to $316 million, demonstrating strong business performance.
- The subscriber base grew to nearly 1.9 million, with over 155,000 net new users added in the quarter.
- Expansion of personalized offerings across specialties, with 4 out of 5 specialties now carrying at least 10 personalized solutions.
- Launch of GLP-1s in the weight management category, scaling to a run rate of $100 million in annual revenue within less than a year.
- Strong financial profile with $39 million of adjusted EBITDA and free cash flow of $47.6 million in the second quarter.
- Gross margins saw slight degradation, dropping to 81% due to the addition of GLP-1s and growth in the weight loss specialty.
- Marketing as a percentage of revenue remains high at 46%, despite improvements.
- Near-term gross margin erosion expected to continue due to the scaling of new offerings like GLP-1s.
- Dependence on third-party partnerships for supply chain and compounding capabilities, which may impact cost structure and margins.
- Potential challenges in maintaining the rapid growth and scaling of new specialties while ensuring high-quality personalized solutions.
Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Hims & Hers second quarter 2024 earnings conference call. Please note that this call is being recorded. (Operator Instructions) I would now like to turn today's call over to Bill Newby, Head of Investor Relations. Please go ahead.
Good afternoon, everyone, and welcome to the Hims & Hers Health second quarter 2024 earnings call. Today after the market closed, we released this quarter's shareholder letter, a copy of which you can find on our website at investors.hims.com.
On the call with me today is Andrew Dudum, our Co-Founder and Chief Executive Officer; as well as Yemi Okupe, our Chief Financial Officer.
Before I hand it over to Andrew, I need to remind you of legal, Safe Harbor and cautionary declarations. Certain statements and projections of future results made in this presentation constitute forward-looking statements that are based on among other things, our
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