Hims & Hers Health, Inc. · NYSE:HIMS
Hims & Hers Health — Q3 2023 Earnings Presentation
29 slides from Hims & Hers Health's earnings presentation, Nov 6, 2023
Slide 1: Supplemental Presentation Third Quarter 2023 Financial Results
Supplemental Presentation Third Quarter2023 Financial Results
Slide 2: Disclaimer
Introduction 2 Disclaimer This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of and beliefs concerning future developments and their potential effects on us. Future developments affecting us 1933, as amended and Section 21E of the Securities
Slide 3: Mission: help the world feel great through better health
Introduction 3 Feeling good in your body & mind transforms how you show up in life That’s why we’re on a mission to help the world feel great through the power of better health
Slide 4: Combining consumer brands, technology and healthcare
Introduction 4 Bringing together the most Remember to take your medication at... valuable elements of consumer brands, technology companies and healthcare to deliver an experience unlike anything in market
Slide 5: A platform that makes feeling great personalized, accessible, affordable
Introduction 5 The result— an entirely new platform that makes feeling great personalized, accessible, and affordable Hi Malcolm, how can we help? Is it safe to take with my daily multivitamin? Welcome to your Anxiety Guided Start Chapter 1 2 mins
Slide 6: Our unique approach is rapidly scaling with a strong margin profile
Introduction 6 56% Our unique approach is 916K 1.4M Subscriber Q3’22 Q3’23 Growth rapidly scaling with a 3 strong margin profile 57% $226.7M Q3’23 Revenue $144.8M Growth Q3’22 90%+ recurring revenue1 9% Adjusted 5% Q3’23 75%+ gross margin profile EBITDA Margin Growth 4 <1 year (4%) Q3’22 pay back pe
Slide 7: We continue to unlock growth in our immediate markets
INTRODUCTION 7 Men’s Health est. US population 30M+ We continue to unlock growth ED PE Cardio Testosterone Prostate in our immediate markets and are primed to capture Women’s Health est. US population 50M+ future, underpenetrated Birth Control STDs Libido Menopause Digestion opportunities Dermatolog
Slide 8: Our Strategy
Our Strategy
Slide 9: Team led by a visionary founder with a scaled leadership team
STRATEGY 9 Ourteam is led byavisionaryfounder,with supportfrom a leadership team thathas scaled disruptive companies Andrew Yemi Melissa Soleil Mike Dr. Pat Khobi Dudum Okupe Baird Boughton Chi Carroll Brooklyn Chief Executive Officer Chief Financial Chief Operating Chief Legal Chief Marketing Chief
Slide 10: Internal clinical advisory board and healthcare partnerships
STRATEGY 10 An internal clinical advisory board and a breadth of healthcare partnerships drive clinical excellence Medical review Partnerships & affiliations 15+ leading experts High confidence provider recommendations Treatment plan excellence 5+ health partners Access to best-in-class in-person fa
Slide 11: Success derived from execution across four strategic pillars
STRATEGY 11 Success is derived from sound execution across fourstrategic pillars 1 2 3 4 Trusted Leading Innovative Clinical brand technology products excellence
Slide 12: Building the most trusted health & wellness brand
STRATEGY 12 Building theworld’s mosttrusted health &wellness brand is keyto attracting & retaining customers Trusted Trusted brand brand Consumer Partnerships & Multi-channel Data, security, centricity ambassadors development & privacy We measure oursuccess bytheir From Target, Walgreens, orone of W
Slide 13: Our leading technology platform enables bilateral insights
STRATEGY 13 Ourleading technologyplatform enables a customer & providerexperiencewhere bilateral insights drive continuous improvements Proprietary Insights driven Seamless AI powered tech stack platform customeraccess providertools Ourtech stack operates as a secure With millions ofmedical consulta
Slide 14: Innovative offerings and services treat each customer differently
STRATEGY 14 Innovative offerings and services enable us to treat each customerdifferently— because theyare different Innovative Innovative offerings services We pursue innovation in W e ans erburning questions and w personalized care and enable educate in engaging ays. It s hy w ’ w access to custom
Slide 15: Mix-shift in preferences toward personalized treatments
STRATEGY 15 At the forefront of a material mix-shift in 20%+ preferences toward personalized treatments Subscribers using 1 personalized solutions at Q3 ’23 end Prior years Q1 ’23 Q2 ’23 Q3 ’23 Truste Truste d d brand brand Hims and Hers Hims and Hers Hard Mints Hair Blends Sex Rx + Heart Hair Loss
Slide 16: Clinical excellence drives high quality outcomes
STRATEGY 16 Clinical excellence drives high quality outcomes & reinforces trust in our brand Access 100% board- Quality Safety & efficacy certified 24/7 51k+ Clinical standards platform uptime charts audited for quality in 2022 realtime monitoring of clinical standards Fast & convenient Provider sca
Slide 17: Four pillars come together to create a powerful flywheel
S T R AT EGY 17 Trusted Leading These four pillars Brand Attract & retain t o mer Dema Technology Leverage feedback come together to Cu s n d customers & providers to generate insights create a powerful flywheel t e r trus Insi ghts o n s um Clinical C te r o u tc o m e s Be t Innovative Excellence
Slide 18: Financials
Financials
Slide 19: Subscriber count and engagement drive revenue growth
Financials 19 Our subscriber count and customer engagement drive revenue growth Number of subscribers Revenue per subscriber Acquisition Retention Engagement Multi-channel Customer Multi-month brand development experience adoption Brand High clinical Proprietary ambassadors excellence product adopti
Slide 20: Subscriber expansion driving strong revenue growth
Financials 20 Subscriber expansion driving strong revenue growth1 Subscribers Revenue $56 $55 $55 $54 1,426 $50 $52 $51 $53 EOQ single-30 day subscribers (’000) 1,300 EOQ multi-30 day subscribers (’000) 293 $227 1,209 Monthly online rev. per avg. subscriber2 $7 291 $208 302 Online revenue ($ million
Slide 21: Strong top line momentum while expanding Adjusted EBITDA margin
Financials 21 Continued strong top line momentum, while expanding Adjusted EBITDA margin Adjusted EBITDA ($ millions) 1 $12.3 $10.6 Adjusted EBITDA margin (percentage) 1 $6.1 $3.9 5.1% 5.4% 3.2% +9.6% Adjusted EBITDA 2.3% margin improvement YoY Strong cash position and no debt2 provides (4.2%) flexi
Slide 22: 2023 outlook anticipates strong top line growth
Financials 22 2023 outlook anticipates strong top line growth and continued leverage ($ millions) Q4 2023 FY 2023 2023 underlying themes Revenue $243 - $248 $868- $873 1 85%+ long-term retention2 YoY growth 45% - 48% 65% - 66% Expanding portfolio of 2 personalized offerings Strong unit economics wit
Slide 23: Three key components expected to drive future growth
Financials 23 Three key components are expected to drive future growth Sample initiatives Introduction of new products and services Expand proprietary solutions Expand footprint of addressable conditions Continued brand Drive continued Continued Disciplined development adoption of scaling of the cat
Slide 24: Capital allocation principles will guide future investment
Financials 24 Capital allocation principles will guide future investment 1 2 3 4 Organic growth Maintain a payback Focus on investments Invest in durable expected to be the period across our 1 that drive long-term long-term growth primary growth driver portfolio of less than margin expansion 2 chann
Slide 25: Non-GAAP Financial Measures
Financials 25 Non-GAAP Financial Measures In addition to our financial results determined in accordance with U.S. GAAP, we present Adjusted EBITDA (which includes consideration paid for employee compensation with vesting requirements incurred directly as a result of is a non-GAAP measure) and Adjust
Slide 26: Appendix
Appendix
Slide 27: Our long-term guiding financial principles
APPENDIX 27 Our long-term guiding financial principles Long-term 2025 profitability targets trajectory Long-term Adjusted Gross margin Revenue of Adjusted EBITDA of 1 EBITDA margin 1 in the at least at least 20-30% Mid 70’s $1.2B+ $100M+ Note: 2025 financial targets provided as of Hims & Hers Health
Slide 28: Reconciliation of non-GAAP financial measures
Financials 28 Reconciliation of non-GAAP financial measures ($ millions, unaudited) Revenue $84.7 $101.3 $113.6 $144.8 $167.2 $190.8 $207.9 $226.7 Net Loss ($31.2) ($16.3) ($19.7) ($18.8) ($10.9) ($10.1) ($7.2) ($7.6) Stock-based compensation $12.0 $8.9 $10.6 $11.0 $12.4 $14.2 $16.8 $17.3 Depreciati
Slide 29: Sources
APPENDIX 29 Sources In order of appearance B. Kim, S. Lee, M Jun, H. Chung, S. Oh. Perception of Hair Loss and Education Increases the Treatment Willingness in Patients With Androgenetic Alopecica: A Population-Based Study, 2018, Fig. 1B. Based on a research study with 503 patients with AGA, 92% of