Hims slips after market despite earnings, revenue beat

Hims & Hers whipsawed in after-hours trading despite reporting earnings results for the first three months of the year that blew Wall Street expectations out of the park.

It reported earnings per share of $0.20, compared to the $0.12 analysts polled by FactSet were expecting. The company also reported $586 million in sales, up 111% year over year, far higher than the $538.6 million analysts polled by FactSet were penciling in. Hims & Hers reiterated its full-year revenue guidance of $2.3 billion to $2.4 billion, which is in line with analysts’ consensus.

The company did report that it has 2.37 million subscribers, up 38% year over year but less than the 2.42 million analysts expected. It also said it expects to make between $530 million to $550 million in revenue in the second quarter of this year, less than the $564 million the Street was hoping for.

Both estimates would mark a quarter-over-quarter decline in revenue, a first for Hims since it went public in 2020.

Hims did not specify in the report how much revenue it made from its weight-loss segment. This is the last full quarter where the company will be able to continue selling compounded semaglutide, the active ingredient in Novo Nordisk’s blockbuster weight-loss drugs, Ozempic and Wegovy. The FDA declared in February that semaglutide is no longer in shortage, and the deadline for Hims to stop selling copies of the drug is May 22.

Investors have been hungry for details on what Hims’ weight-loss business will look like moving forward. Novo Nordisk announced a partnership Hims and two other telehealth companies last week. Hims users will now be able to access branded semaglutide through the platform, though it’s unclear what kind of margins that gives the company.

Hims has said that it will continue offering personalized GLP-1 drugs, which it says doesn’t skirt the FDA’s regulations. According to the company, more than half of its total subscribers are on some form of personalized medication, though it’s unclear what the figure is for those on semaglutide specifically.

In its shareholder letter, Hims said that it would expand into hormone-related categories like low testosterone and menopause by the end of the year. Hims, which currently also said it would pursue international expansion through “organic growth and opportunistic M&A over the course of the next five years.”

Hims announced earlier on Monday that Nader Kabbani, a longtime Amazon executive who most recently worked at the robotics company Symbiotic, would serve as its next chief operating officer. He is replacing Melissa Baird, a longtime executive who joined Hims shortly after it was founded.