ED and hair loss startup turned multi-specialty telehealth platform, hims & hers outpaced expectations in its Q1 results.
From birth control to sexual wellness, group therapy to skin care, hims & hers has big plans to become the consumer healthcare platform of the future. Its Q1 bolsters its lofty goals:
- Logging 94% YoY growth, the telehealth startup brought in $100M in quarterly revenue for the first time in company history.
- Online revenue growth increased 86% YoY to $94M while wholesale revenue soared 341% to $7.2M.
- Its largest membership increase to date, subscriptions grew from 391K to 710K in a year’s time.
- Net losses came in at $16.3M, down from $51.4M in the prior year period.
Another milestone, hims & hers took 1.2M net orders during the quarter, a 520K YoY increase.
Building. Though still unprofitable, hims & hers has beaten analyst revenue estimates every quarter since going public in a $1.6B SPAC deal last January. Expanding rapidly, the company has had a busy quarter:
- Teaming up with Walmart to scale its retail presence, its products are now available on shelves in 20,000+ locations across CVS, Walgreens, Amazon, and more.
- Diversifying its product offerings, it doubled its skincare suite and partnered with Goodpath to provide educational content on MSK issues, IBS, insomnia, and more.
- In partnership with primary care provider Carbon Health, the company extended care options for California patients, providing in-person care at brick-and-mortar clinics.
Telehealth blues. Zooming out, telehealth is on a downturn. Teladoc Health saw shares plunge 40% after reporting a $6.6B impairment charge while mental health platform Cerebral has been embroiled in controversy.
Facing a complex landscape, hims & hers CEO Andrew Dudum underlined verticalization efforts as key, from launching its mobile app to building out pharmacy fulfillment centers. The brand’s connection with consumers, Dudum added, is a key differentiator:
“We built hims & hers from the very beginning to be synonymous with health and wellness… [focusing on] emotionally resonating conditions, so that we can have that depth of relationship.”
2022 outlook. Riding a strong start, hims & hers upped revenue guidance from $365–380M to $410M–425M. Still, it’s not completely immune to telehealth’s woes: shares are down 75% from early 2021 highs.