Although the telemedicine company showed a glittering growth and issued strong guidelines, shares HIMS & HERS(Nyse: Hims) He stood after his earning report in the fourth quarter. The shares were rocketry at about $ 24 at over $ 70 at the beginning of the year before he retired.
Investors became excited about the outcomes of the company, while its super bowl ad and acquiring a laboratory facility at home helped to increase supplies. However, the stock reciprocated a lot of gains after semaglutides, an active ingredient in the GLP-1 weight loss drug, was demolished from the list of lack of food and medication administration. Hims & Hers sold medicines with a complex GLP-1 based in the FDA because the drug was in the absence. The FDA has given the compounds 90 days to stop selling these medicines or will take measures.
Let’s take a closer look at the latest report and forecasts, to determine if sale is an opportunity to buy.
Hims & Hers once again achieved remarkable growth in the Q4, and revenue increased by 95% to $ 481.1 million. This was prior to the prognosis of revenue in the amount of $ 465 to $ 470 million, which he gave earlier. Net orders climbed to 22% to 2.81 million, while the average order value (AOV) jumped to $ 63% to $ 168.
The number of subscribers increased 45% compared to the year to 2.23 million. The company said 55% of its subscribers now have at least one personalized subscription. He emphasized the strength in dermatology, and the male subscribers doubled 50%and doubled women.
GLP-1 drug-free revenues rose to $ 43% to $ 1.2 billion in 2024, and GLP-1 drug added an additional $ 225 million in revenue for a year.
HIMS & HERS increased their marketing costs in the quarter, but managed to show marketing influence, with marketing costs as a percentage of revenue falling from year to year. Marketing consumption increased by 76% compared to the year to $ 221 million, but was 46% as a percentage of revenue compared to 51% a year ago. The gross margin arrived with 77%, but that was below 78.4% of analysts, Streetaccount said.
Operational cash flow He almost doubled at $ 86.4 million with $ 22 million a year ago, with free cash over more than $ 450% to $ 59.5 million.
Metric
Q4 results
Growth (yoy)
Income
$ 481.1 million
95%
Net orders
2.81 million
22%
Aov
$ 168
63%
Subscribers
2.23 million
45%
Adjusted eBitda
$ 54.1 million
163%
Custom EPS
0.11 USD
1,000%
Operational cash flow
86.4 USD
293%
Free cash flow
$ 59.5 million
452%
Data Source: Hims & Hers. Yoy = year after year.
Looking in advance, Hims & Hers predict 2025. A revenue that will come between $ 2.3 billion and $ 2.4 billion, for a growth of 56% and 63%. He designed the custom EBITDA to raise from $ 270 million to $ 320 million.
In the first quarter, Hims & Hers were guided for the revenue of between $ 520 and $ 540 million, for a growth of 87% to 94% compared to $ 278.2 million, which it reported a year ago. Search EB1 Adapted Q1 between $ 55 and $ 65 million. He noted that he would see some pressure on the gross margin in Q1, but expected to improve throughout the year.
The company is expecting to be revenue of weight loss will be $ 725 million for 2025, but said it excludes semaglutide, which will not be offered on his platform after the first quarter. Seeks the growth that comes from the weight loss drugs of oral weight and GLP-1 Liraglutide drug, which recently went generic.
Picture source: Getty Images.
The Hims & Hers turned in a large quarter and issued exciting guidelines, but the supplies were still tank. The shares were in high rides, but some investment hopes were abolished when the company said she would no longer offer weight loss medicines based on semaglutide after Q1. In addition, gross margin has been a little missing expectations, and this pressure is expected to withstand the Q1.
With the exception of weight loss medication, Hims & Herst still seems strongly growing job. She said her revenue from weight loss drugs was at the rate of over $ 100 million in 2024, in seven months in which he was available. With the exception of the GLP-1 job, the total revenue increased by 43% to $ 1.2 billion last year. It’s impressive growth.
However, its prediction of $ 725 million in revenue from weight loss, excluding semaglutide -based drugs, could be overly ambitious. It is a large growth category of weight loss and will no longer be able to agree on semaglutide. GLP-1 drugs contributed $ 225 million in $ 2024, but were introduced in Q2, while oral drugs were at a ranking rate of $ 100 million.
Annual weight loss revenue increases to over 30% growth in the 2025 category with loss of semaglutide medication. Hims and her will have to convince a lot of patients to switch recipes to achieve this growth.
Turning on the assessment, the section trades according to the forward price and earnings (P/e) of 37 times based on an assessment of analysts 2025:
Because of its projected growth, this is not incredible. However, there will be questions about his ambitious guidelines for drug revenue with weight loss-barn until he reports his Q2 results, as this will be the first quarter without selling medicines based in semaglutide.
Personally, I moved to the side before making money (after I originally bought supplies under $ 7 per share), because of Hype and the risk for Hims & Hers’ GLP-1. Although I think the job remains a solid, aggressive guidelines will keep me for now.
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Geoffrey Seiler There is no position in any of the shares mentioned. Motley Fool has no position in any of the shares mentioned. Motley Fool has disclosure rules.
