Hims & Hers Health saw its stock decline in after-hours trading on Monday after reporting first-quarter earnings that exceeded analysts’ expectations but provided weaker-than-expected guidance for the upcoming quarter. The telehealth company posted earnings per share of 20 cents, surpassing the analysts’ estimate of 12 cents. Revenue for the quarter reached $586 million, beating expectations of $538 million, and reflecting a 111% year-over-year increase from $278.2 million in the same period last year. Net income for the quarter was $49.5 million, or 20 cents per share, compared to $11.1 million, or 5 cents per share, in the first quarter of 2023.
Despite the strong earnings, Hims & Hers provided cautious guidance for the second quarter. The company expects revenue to range between $530 million and $550 million, falling short of analysts’ expectations, which had forecasted $564.6 million. Additionally, the company projected adjusted EBITDA for the quarter to be between $65 million and $75 million, while analysts had anticipated $70.4 million. This outlook prompted a decline in the company’s stock price after hours.
Hims & Hers’ stock has had a volatile start to the year, experiencing several double-digit moves in recent months. On April 29, shares surged by 20% after pharmaceutical giant Novo Nordisk announced that it would offer its weight-loss drug Wegovy through telehealth providers like Hims & Hers. The company noted that further collaborations are expected in the future, including with pharmaceutical players and leaders in diagnostic and preventative testing. Hims & Hers CEO Andrew Dudum expressed optimism about these partnerships, stating that they would strengthen the company’s ecosystem and help it reach tens of millions of people.
For the first quarter, Hims & Hers reported adjusted EBITDA of $91.1 million, significantly up from $32.3 million during the same period last year and well above the $61.3 million expected by analysts. In a move to strengthen its leadership team, the company also announced that Nader Kabbani will join as chief operations officer. Kabbani previously spent nearly 20 years at Amazon, where he played a key role in the launch of Amazon Pharmacy, the acquisition of PillPack, and overseeing the global Covid-19 Vaccination Task Force.
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