The New York Stock Exchange with a Hims & Hers Health, Inc banner is pictured as a person runs past in the Manhattan borough of New York City, New York, January 21, 2021.
Carlo Allegri | Reuters
Hims & Hers Health, the online provider of treatments for erectile dysfunction and hair loss, had its best day on the stock market since its debut three years ago after quarterly results beat estimates and the company said it expects to deliver its first full year of profitability in 2024.
Shares of Hims & Hers soared 32% to $13.48 as of Tuesday afternoon. They’re now up more than 50% for the year after climbing 39% in 2023.
Hims & Hers is an online platform where patients can meet with providers and get personalized support for skincare, mental health, sexual health, weight loss and hair care. Revenue jumped 47% to $246.6 million, topping the $246 million expected by analysts, according to LSEG, formerly Refinitiv.
Founded in 2017, the company went public through a special purpose acquisition company (SPAC) in January 2021. Hims & Hers generated net income in the fourth quarter of $1.2 million, or 1 cent per share, compared with a net loss of $10.9 million, or 5 cents a share, a year ago.
For the first quarter, Hims & Hers expects revenue growth of at least 40% from a year earlier to between $267 and $272 million. Analysts were expecting sales of $253 million. Revenue for the full year will fall between $1.17 billion and $1.2 billion.
During the company’s quarterly call with investors on Monday, CEO Andrew Dudum said personalized solutions have helped attract new users and drive increased longevity on its platform. He said newer specialties like weight loss, mental health and Hers Dermatology are seeing increased adoption, and could each deliver more than $100 million in revenue in 2025.
With mental health, Dudum said the company’s use of artificial intelligence has helped predict how an individual patient will respond to medication, which can mean avoiding a “brutal” trial and error process.
Dudum said the category is expanding in the triple digits and “continues to be one of our highest growing specialties.”
Analysts at Jefferies described the results as “more satisfying than Thanksgiving dinner” due to stronger-than-expected revenue, profitability and guidance.
Hims & Hers forecasts adjusted earnings of $22 million to $27 million in the first quarter, compared to $14 million expected by analysts, according to StreetAccount.
“While we believe it was largely expected that revs would be strong, we expect the market will be quite pleased with the margin leverage in the quarter, and the leverage implied in the guide,” wrote the Jefferies analysts, who recommend buying the shares.
Deutsche Bank analysts, who have a hold rating on the stock, wrote on Monday that Hims & Hers finished the year strong, with “meaningfully better-than-expected” 2024 guidance. They raised their price target from $8 to $14.
WATCH: Ro CEO on telehealth and the impact of weight loss drugs
