Hims & Hers Health, Inc. · NYSE:HIMS
Hims & Hers Health — Q1 2023 Earnings Presentation
28 slides from Hims & Hers Health's earnings presentation, May 8, 2023
Slide 1: First Quarter 2023 Financial Results
S u p p l e m e n ta l P r e s e n tat i o n First Quarter 2023 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: Feeling good in your body & mind transforms how you show up in life
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: Bringing together the most valuable elements of consumer brands, technology companies 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: An entirely new platform that makes feeling great personalized, accessible, and 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 87% Our unique approach is 1.2M Subscriber 646K Q1’22 Q1’23 Growth rapidly scaling with a 3 strong margin profile 88% $190.8M Q1’23 Revenue Growth $101.3M Q1’22 90%+ recurring revenue1 9% Adjusted 75%+ gross margin profile EBITDA Margin Growth 4 3% Q1’23 <1 year (6%) pay back period2
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 STDs 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 Dermatology
Slide 8: Our Strategy
Our Strategy
Slide 9: Our team is led by a visionary founder
STRATEGY 9 Our team is led by a visionary founder, with support from a leadership team that has scaled disruptive companies Andrew Yemi Melissa Soleil Mike Dr. Pat Brian Dudum Okupe Baird Boughton Chi Carroll O’Shaughnessy Chief Executive Officer Chief Financial Chief Operating Chief Legal Chief Mar
Slide 10: An internal clinical advisory board and a breadth of 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 is derived from sound execution across four strategic pillars
STRATEGY 11 Success is derived from sound execution across four strategic pillars 1 2 3 4 Trusted Leading Innovative Clinical brand technology products excellence
Slide 12: Building the world's most trusted health & wellness brand
STRATEGY 12 Building the world’s most trusted health & wellness brand is key to attracting & retaining customers Trusted Trusted brand brand Consumer Partnerships & Multi-channel Data, security, centricity ambassadors development & privacy We measure our success by their From Target, Walgreens, or o
Slide 13: Our leading technology platform enables a customer & provider experience
S T R AT E GY 13 Our leading technology platform enables a customer & provider experience where bilateral insights drive continuous improvements Proprietary Insights driven Seamless tech stack platform customer access Our tech stack operates as a secure buffer With millions of medical consultations
Slide 14: Innovative products and services enable us to treat each customer differently
STRATEGY 14 Innovative products and services enable us to treat each customer differently — because they are different Innovative Innovative products services We pursue innovation in We answer burning questions and personalized care and enable educate in engaging ways. It’s why customizable treatmen
Slide 15: Clinical excellence drives high quality outcomes & reinforces trust
STRATEGY 15 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 16: These four pillars come together to create a powerful flywheel
S T R AT EGY 16 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 17: Financials
Financials
Slide 18: Our subscriber count and customer engagement drive revenue growth
Financials 18 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 19: Subscriber expansion driving strong revenue growth
Financials 19 Subscriber expansion driving strong revenue growth1 Subscribers 1209 Revenue $53 $56 $55 $55 $50 $50 $52 $51 302 $191 1040 $7 EOQ single-month subscribers (’000) Monthly online rev. per avg. subscriber2 285 $167 916 $6 $184 EOQ multi-month subscribers (’000) Online revenue ($ millions)
Slide 20: Continued strong growth momentum, while generating positive Adjusted EBITDA
Financials 20 Continued strong growth momentum, while generating positive Adjusted EBITDA Adjusted EBITDA ($ millions) 1 $6.1 Adjusted EBITDA margin (percentage) 1 $3.9 3.2% 2.3% (4.2%) +9.2% Adjusted EBITDA (6.0%) (6.6%) year over year ($4.7) (8.3%) Strong cash position ($6.1) ($6.1) and no debt2 p
Slide 21: 2023 outlook anticipates strong growth and continued Adjusted EBITDA profitability
Financials 21 2023 outlook anticipates strong growth and continued Adjusted EBITDA profitability ($ millions) Q2 2023 FY 2023 2023 underlying themes Revenue $200 - $205 $810 - $830 1 85%+ long-term retention2 YoY growth 76% - 81% 54% - 58% 2 Expanding portfolio of personalized products Adj. EBITDA 1
Slide 22: Three key components are expected to drive future growth
Financials 22 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 23: Capital allocation principles will guide future investment
Financials 23 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 24: Non-GAAP Financial Measures
Financials 24 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 is a non-GAAP measure) and Adjusted
Slide 25: Appendix
Appendix
Slide 26: Our long-term guiding financial principles
APPENDIX 26 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+ $100M+ Note: 2025 financial targets provided as of Hims & Hers Health
Slide 27: Reconciliation of non-GAAP financial measures
Financials 27 Reconciliation of non-GAAP financial measures ($ millions, unaudited) Revenue $60.7 $74.2 $84.7 $101.3 $113.6 $144.8 $167.2 $190.8 Net Loss ($9.2) ($15.9) ($31.2) ($16.3) ($19.7) ($18.8) ($10.9) ($10.1) Stock-based compensation $9.2 $11.9 $12.0 $8.9 $10.6 $11.0 $12.4 $14.2 Depreciation
Slide 28: Sources
APPENDIX 28 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