The HIMS app was decorated with a smartphone in New York, USA, Wednesday, February 12, 2025.
Gabby Jones | Bloomberg | Getty Images
Stocks Hims & Hjer Health Tuesday fell 28%, the day after the Telehealth company was published The results of the fourth quarter This disappointed the gross margin and caused concern about the future of weight loss business.
Hims & Hers reported $ 481 million in quarter revenue, which is $ 95% compared to $ 246.6 million over the same period last year. The net income climbed to $ 26.01 million or 11 cents per share, with $ 1.25 million or 1 percent per share, one year before.
But the gross margin of the company or profit left after calculating the costs of the goods sold, it was 77%, disappointing analysts who expected 78.4%, Streetaccount said.
In a quarterly call of the company with investors on Monday, CFO Yemi gathered that the scanning of GLP-1 and its strategic price capabilities was wrong.
Hims & Hers in May began to prescribe complex semaglutide, active ingredient in Novo NordiskWith GLP-1 weight loss drugs ground and wegovy. Complex drugs can be produced when treatments with brand brand lackBut the US Directorate and Medicines announced On Friday, the lack of semaglutide injection products was resolved.
As a result, Hims & Hers said on Monday that they would probably stop offering complex semaglutide on their platform after the first quarter, although some consumers will continue to be able to access personalized doses if clinically applied. The GLP-1 offer generated more than $ 225 million in revenue for the company 2024.
“We will have to start informing the customers in the coming months or two that they will have to start looking for alternative options in commercial dosage,” said Hims & Her Andrew Dudum CEO at the invitation.
In Forward, the company said his weight loss offer will primarily consist of his oral drugs and lyraglutide with medicines that can be injected, which plans to introduce on his platform this year.
Analysts Morgan Stanley said on Tuesday that the company’s report was “full for digestion”. They maintained an assessment of the same weight on stock and said they were surprised by the size of the 2025 company guidelines.
Hims & Hers said he expects between $ 2.3 billion and $ 2.4 billion this year. The company added that he expects his weight loss offering to generate at least $ 725 million in revenue, excluding the contributions of complex semaglutides.
“We are still positive on a long -term occasion, emphasizing the attractive platform of the company and solid records that distinguish it in relation to digital health and DTC KOMPS,” said Morgan Stanley analysts.
Bank of America analysts said that although the company may have some success of the switching of patients to other weight loss offers such as his oral drugs, they will face a “significant risk of execution” as the GLP-1 brand supply is increased.
In addition, analysts said that HIMS’s competitors are likely to transfer marketing dollars to other products due to conditions such as erectile dysfunction and loss of hair, which could put pressure on its advertising costs. They repeated the rating of the weaker effect on stock.
“Generally, we do not see the progression from the upward revenue at 2025, and we think that the story of the rhythm and raising is probably over in the short term,” said Bank of America analysts on Tuesday.
Citi analysts, meanwhile, said that they think that Hims and its income are “aspirative” because it would require “significant acceleration” in using other weight loss products. They said they were less sure of the success of these offers.
Nevertheless, analysts have increased their target goal to $ 27 with $ 25.
“We are waiting for a more convincing input place and more details about the EX-GLP-1 growth before we become more constructive,” the note wrote on Monday.
-Cnbc’s Michael Bloom has contributed to this report
