Hims & Hers Health After investors saw it past better revenue and earnings than expected, the stock plummeted 18% in extended trading on Monday, focusing instead on disappointing gross profits.
Compared to the analyst consensus estimates from LSEG, the company’s method is as follows:
Earnings per share: 11 cents vs 10 cents expected revaluation: $481 million vs 470 million
Telehealth Company’s revenues rose 95% from $246.6 million in the same period last year, according to the release.
However, while the company’s remaining profits after accounting for the company’s gross profit or the cost of the goods sold was 77%, the analyst voted on by StreetAccount expected 78.4%.
That’s the second biggest stock decline for HIMS & her in a few days. Shares fell 26% on Friday after the US Food and Drug Administration announced that a shortage of semaglutide injected products had been resolved.
In May, HIMS & HERS began prescribing complex Semaglutide, the active ingredient in Novo Nordisk’s hit GLP-1 drugs, Ozempic and Wegovy. The company was a breakout star within the digital health sector in 2024. This is due to the success of the popular new weight loss offering.
The company said it generated more than $225 million in revenue in 2024 through its GLP-1 offering. The stock rose approximately 200% a year.
Combined drugs are custom-made alternatives to branded drugs designed to meet the needs of specific patients, and when there is a lack of treatment for the brand, the compounds are permitted to produce them. The FDA said Friday that it will begin taking action against compartmers for violations in the next 60-90 days.
Hims & Hers said in a revenue call that, as a result, compounded semaglutide is likely not available on the platform after the first quarter.
“We need to start notifying customers next month or two months. We need to start looking for alternative options for commercial administration,” Hims & her CEO Andrew Dudum said over the phone. “I’m very direct and I doubt that many of these patients will enter the open market and try to secure brand options in some form factor.”
Some patients may have access to formulated semaglutide if clinically necessary, the company added.
The company’s weight loss offering consists primarily of its oral drugs and generic drug liraglutide, which will be implemented on the platform this year. Excluding the contributions from combined semaglutide, HIMS & HERS said it expects weight loss provision to generate at least $725 million in revenue in 2025.
Hims & Hers also offers skincare, mental health, sexual health and hair care treatments.
Non-GLP-1 products revenues rose 43% over the course of a year to $1.2 billion.
“The success we are experiencing directly reflects our ability to democratize access to high quality, personalized care across our specialties,” Okupe said.
Net income rose to $26.01 million, or 11 cents per share, from $1.25 million a year ago, or 1 cents per share. According to StreetAccount, the company reported an adjusted profit of $54.1 million, according to analyst estimates.
In the first quarter, HIMS & HERS expects to report revenues of between $520 million and $540 million, while analysts were hoping for $497 million. The company said its adjusted revenues would range from $55 million to $65 million.
HIMS & HERS will hold quarterly calls with investors at 5pm ET.
– CNBC’s Brandon Gomez contributed to this report.
