Hims & Hers Health, Inc. Q2 FY2025 earnings call

• Andrew Dudum highlighted the platform's success in providing personalized care, with over 2.4 million subscribers and nearly 1.5 million collaborating with providers. Weight loss data showed customers on a personalized plan lost an average of 10.3% of body weight at 6 months with 25% discontinuation, attributed to provider access, white glove customization, and app-based tools.
• The company acquired ZAVA to expand in the U.K. and other markets, plans to launch hormonal health offerings, and recently acquired a blood testing lab for verticalizing testing capabilities, with plans to offer lab testing as a standalone service.
• Mo Elshenawy discussed the technology vision, focusing on a unified data and intelligence platform, AI-powered personalized agents, global-ready architecture, and AI governance, safety, and ethics to reinvent healthcare.

In the second quarter, revenue grew 73% year-over-year to $545 million, with adjusted EBITDA margin north of 15%. Subscribers increased 73,000 quarter-over-quarter to over 2.4 million, a year-over-year growth rate of 31%. Dermatology, oral weight loss, and daily sexual health offerings sustained year-over-year subscriber growth rates above 55% in the second quarter. Strong performance in these offerings helped offset headwinds from offboarding GLP-1 subscribers and a decline in on-demand sexual health subscribers.

• Third quarter revenue expected between $570 million to $590 million, year-over-year growth 42%-47%; adjusted EBITDA $60 million to $70 million, 11% margin at midpoint.
• Full year 2025 revenue expected $2.3 billion to $2.4 billion, year-over-year growth 56%-63%; adjusted EBITDA $295 million to $335 million, 13% margin at midpoint.
• ZAVA expected to deliver at least $50 million net incremental revenue for remainder of 2025. Investment in marketing and technology, transition to personalized offerings key for long-term revenue retention.

• Volatility in marketing efficiency due to onboarding/offboarding of previous collaborations.
• Rotation of sexual health subscribers toward daily offerings causing short-term headwinds.
• Regulatory challenges and tariff uncertainties in international expansion.

Q: Why was now the right time to expand internationally and what made ZAVA the right company to acquire?

A: Andrew Dudum stated it's a powerful opportunity to lead in personalized care globally; ZAVA's team and ability to scale in unique markets with regulatory challenges made it the right acquisition.

Q: How does the launch of at-home lab testing improve the business and support the broader mission?

A: Andrew Dudum said at-home lab testing is foundational for transitioning to preventive care, educating patients on tests, making them affordable and accessible, and enabling next steps for treatment optimization.

Q: Are there cross-border dynamics for Canadian expansion with generic semaglutide?

A: Andrew Dudum stated shipments to Canadian addresses will be through partnerships with generic manufacturers, no cross-border dynamics expected.

Q: How big could the international business be in the long term?

A: Oluyemi Okupe said international is a component, but immense opportunity remains in U.S. with new specialties and personalization, each growth lever a $1B+ opportunity.