Hims & Hers Health, Inc. Q4 FY2024 earnings call

• Andrew introduced Hims & Hers as a next - generation health care platform leveraging personalization and technology. Highlights included acquisition of whole body lab testing facilities and Menlo Park peptide facility, Super Bowl ad, and growing talent bench. - Investment areas included leveraging AI for diagnostic tools, expanding personalized treatments with data - rich integrations, focusing on long - term consumer journey, and exporting capabilities. - In 2025, priorities were integrating whole body lab testing, investing in pharmacies and infrastructure, broadening and deepening technology stack, conducting R&D for new specialties, and addressing obesity epidemic.

Fourth quarter revenue was $481 million, with full year 2024 revenue at $1.5 billion. Year - over - year revenue growth was 95% for the fourth quarter and 69% for 2024. Revenue outside of GLP - 1 offering increased 43% year - over - year to $1.2 billion in 2024. Total subscribers on the platform increased 45% to over 2.2 million in the fourth quarter, with monthly online average revenue per subscriber increasing 38% year - over - year to $73 in the fourth quarter. Adjusted EBITDA in the fourth quarter increased over 160% year - over - year to $54 million, and for the full year 2024, adjusted EBITDA was $177 million with margins more than doubling to 12%. Gross margins declined approximately two points quarter - over - quarter, driven by scaling of GLP - 1 offering and strategic pricing actions, but expected to recover in the second quarter.

• First quarter revenue expected in the range of $520 million to $540 million, representing a year - over - year increase of 87% to 94%; adjusted EBITDA between $55 million to $65 million. - Full year 2025 revenue anticipated between $2.3 billion to $2.4 billion, year - over - year increase of 56% to 63%; adjusted EBITDA between $270 million and $320 million. - Anticipated weight loss specialty revenue contribution in 2025 of at least $725 million. - First quarter is an investment quarter with expected pressure on margins, but improvement expected from the second quarter as volume driven discounts and sterile fulfillment capacity come online. - Expect marketing leverage of one to three points per annum and maintain one year payback period on marketing investments. - Long - term revenue retention expected above 85%.

• Big pharma's reaction to compounded solutions, questioning the need for affordable compounded solutions and inciting fear in consumers about compounded medication safety. - Regulatory risks related to GLP - 1 shortages and compliance with regulatory requirements for compounding.

Q: What are the top three to four strategies that will allow Hims to reach tens of millions of subscribers on this platform and what is the rough time frame?

A: Andrew said strategies include expanding categories and specialties, broadening personalized treatments, and investing in technology. Ambitious hope is to achieve in the next five to six years.

Q: How is Hims leveraging AI and data analytics to enhance telehealth offerings and personalized treatments and drive efficiency? Are there plans for AI - driven diagnostics or automation?

A: Andrew said AI is at the core, the platform has a powerful data set, with investments in MedMatch for diagnostics and long - term patient outcome management, and plans for AI - driven capabilities.

Q: Can you talk about the mechanics around assessing new patients for personalized semaglutide dosing?

A: Andrew said they look at existing situation, side effect sensitivities, goal weight loss, and use EMR and MedMatch to make decisions between patient and provider.

Q: How does the short ending impact the competitive setup and dynamics among platforms offering compounded semaglutide?

A: Andrew said most parties offering commercial available doses of semaglutide will seek alternatives, and outside the next quarter, with commercial doses coming out, fewer players will be in the market.

Q: Rough expectations for liraglutide launch timing and pricing strategy?

A: Andrew said liraglutide expected midyear or early second half; pricing ambition is to make it affordable, but liraglutide has higher costs due to more medication and needles, likely in couple of hundred buck range initially.

Q: Any thoughts on timing for menopause testing and growth versus revenue per sub?

A: Andrew said hope to get whole body testing in the first half of the year; Yemi said expected continued expansion of revenue per sub with multi - condition treatments and adoption of oral and liraglutide.