The HIMS application is scheduled on a smartphone in New York, USA on Wednesday, February 12, 2025.
Gabby Jones | Bloomberg | Getty Images
Shares Hims & Her Health The day after the telemedicine company was released, it fell 28% on Tuesday Fourth quarter results This was disappointed with gross margins and raised concerns about the future of the weight loss business.
Hims & Hers reported $481 million in revenue for the quarter, up 95% from $246.6 million in the same period last year. Net income climbed to $1.25 million a year ago, or 1% per share, to 11 cents a share, or 11 cents a share.
However, the company’s gross margin or profit remaining after selling goods is 77%, with disappointing analysts expecting 78.4%.
CFO Yemi Okupe said in a quarterly call with investors on Monday that the company’s expansion of the company’s GLP-1 product and its strategic pricing options should be blamed on the company.
Hims & she started prescribing more complex Semaglutide, an active ingredient Novo NordiskS GLP-1 weight loss pills Ozempic and Wegovy. Complex drugs can be produced in brand therapy shortagebut the U.S. Food and Drug Administration Announce On Friday, the shortage of Semaglutide injection products has been addressed.
As a result, Hims & hers said Monday that after the first quarter, it may offer more complex Semaglutides on its platform, although some may still be able to get personalized doses if some consumers are clinically applicable. GLP-1 generates more than $225 million in revenue for the company in 2024.
“We will have to start notifying customers within the next month or two and they need to start looking for other options for commercial doses,” Hims & Hers CEO Andrew Dudum said on the phone.
Going forward, the company said its weight loss products consist mainly of oral and injectable Liraglutide, a drug plan introduced on its platform this year.
Analysts at Morgan Stanley said Tuesday that the company’s report is “largely digestible”. They maintained an equivalent weight rating for the stock and said they were surprised by the size of the company’s guidance in 2025.
Hims & Hers said revenue is expected to be between $2.3 billion and $2.4 billion this year. The company added that it expects its weight loss products to generate at least $725 million in revenue, excluding donations from compound Semaglutide.
“We remain positive about long-term opportunities, highlighting the company’s attractive platform and solid track record that stands out against digital health and DTC Comps,” Morgan Stanley analysts said.
Bank of America analysts said that while the company may successfully transition to its other weight loss products, such as oral medications, it will face “significant execution risks” as the supply of famous brand GLP-1 increases.
Additionally, analysts say Hims & her competitors may shift marketing dollars to other products to address conditions like erectile dysfunction and hair loss, which may put pressure on their advertising costs. They reiterated their underperforming ratings on the stock.
“Overall, we don’t see any upside for revenue guidance in 2025 and think the recent beat and uptrend story may be over,” Bank of America analysts wrote in a note Tuesday.
Meanwhile, Citi analysts believe that his and her income guidance is “aspiring” because it requires “significant acceleration” when using other weight loss products. They say they are not very confident about the success of these products.
Even so, analysts’ stock price target increased from $25 to $27.
“We are waiting for a more attractive entry point before we become more constructive and provide more details about pre-growth GLP-1,” they wrote in a note on Monday.
– Michael Bloom of CNBC contributed to this report
