Hims slides as Q2 revenue undershoots estimates and falls sequentially for the first time
Still, the telehealth company kept its full-year revenue guidance intact.
Hims & Hers dropped 9.5% in after-hours trading after the telehealth company reported quarterly revenue that missed Wall Street’s expectations and fell quarter to quarter for the first time.
Hims posted earnings per share of $0.17, higher than the $0.15 analysts polled by FactSet were expecting. But it also reported $544.8 million in revenue, less than the $552 million the Street was penciling in.
Hims kept its full-year revenue guidance of between $2.3 billion and $2.4 billion intact.
Hims announced in June that it had acquired UK-based peer Zava. The company paid $265.7 million for Zava, it disclosed on Monday. In its shareholder letter, it said it expects Zava to contribute $50 million of revenue through the remainder of the year.
The report gave investors a look at how the company was doing in the months leading up to and the weeks after its very public falling out with Novo Nordisk. The stock took a punch when the deal fell through but has since recovered those losses and then some.
The company had to stop selling exact copies of Novo’s Ozempic and Wegovy on May 22. Hims is still selling “personalized” versions of Novo’s blockbuster drugs, which is why Novo abruptly cut off its deal to offer cash-pay versions of its name-brand drug on the telehealth platform on June 23.
Hims reported that it sold $190 million worth of GLP-1s in the second quarter, compared to $230 million in the first quarter, when it was still allowed to sell exact copies. The company has a goal of making $725 million in revenue from its weight-loss segment, which also includes other drugs besides GLP-1s, this year.
Novo, which reports earnings on Wednesday, also recently cut its guidance, citing competition from compounders like Hims, though its sales are also slumping among insured patients.
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