Hims & Hers Health, Inc. · NYSE:HIMS
Hims & Hers Health — Investor Presentation (March 2021)
33 slides from Hims & Hers Health's investor presentation, March 2021
Slide 1: hims & hers
Slide 2: Disclaimer
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Slide 3: Led by a visionary founder and veteran leadership
led by a visionary founder and veteran leadership with the most relevant healthcare, technology & consumer experience 832e20066 Andrew Dudum Spencer Lee Patrick Carroll Melissa Baird Soleil Boughton Leah Millheiser Lori Jackson Julian Cohen Chiet Executive Officer Chief Financial Officer «Chief Medi
Slide 4: The US healthcare system is one of the last multi-trillion dollar markets yet to be disrupted
the US healthcare system is one of the last multi-trillion dollar markets yet to be disrupted Healthcare® Financial » , neti Transportation! Soon SA tn with 330mm people's $5 tn $2 ~ $1 Sin health at risk, improving . the status quo is arguably the most impactful ° e . opportunity of our lifetime hi
Slide 5: For the average American the healthcare system is broken and disjointed
for the average American the healthcare system is broken and disjointed, and the statistics are staggeringly sad Per capita spend in the United States has doubled in the last 20 years, however, U.S. life expectancy & health indicators are falling behind peers in the global landscape Our platform add
Slide 6: Now is the time for the modern digitization of the healthcare industry
now is the time for the modern digitization of the healthcare industry 1994 2006 2009 amazon @®spotify | Wscuare Retail / Commerce Radio / Music Payments 1997 TV/Video 2008 Q) airbnb Hotels 2012 2015 Wear Lemonade Sports Betting | Insurance 00 . Today e ee é- 2012 himszhers lyf Healthcare : 2009 | T
Slide 7: Business overview
Slide 8: The first digitally native, fully verticalized multi-condition health platform
the first digitally native, fully verticalized ulti-condition health platform—providing access to high quality, integrated care from start-to-finish... hims «hers Consumer Brand Distributed Provider Network Clinically Focused EMR Digital Native Telehealth Platform Digital Prescriptions Cloud Pharmac
Slide 9: Enabling the health experience of the future that modern consumers expect
..enabling the health experience of the future that modern consumers expect hers Dr. Amedeo my chin and on my. a what issue can we : Cnet } help with today? options but am lecking P ¥ to really tackle this Skincare Symptom Review Hers Hello Anna, thank you fer sending these ‘Your shipment is on its
Slide 10: The new front door to healthcare
1 Meritt Hawkins this is the new front door to healthcare—where the patient is our consumer and the experience is frictionless hims zhers . ° ° . ° Fast & Comprehensive —_ Ubiquitous Stigma Personalized Efficient & Affordable Access Free for You average patient primary care visit on 24/7 access safe
Slide 11: Rigorous, evidence-based guidelines and comprehensive provider training
all made possible by rigorous, evidence-based guidelines and comprehensive provider training 220' USS. licensed providers => => 94%, Board Certification Verification average provider quality score We require all applicants to be Detailed credentials, licenses, and for reviewed encounters board-certi
Slide 12: High scale seamless patient and clinician experience facilitated by proprietary tech
and a high scale seamless patient & clinician experience facilitated by proprietary, purposeful tech Meet just some of the technology helping our customers receive high-quality care faster and with more precision a i verify /> Multiple system teels to validate patient data to confirm verification an
Slide 13: This new paradigm of healthcare has unlocked patient growth
this new paradigm of healthcare has unlocked patient growth 2mm+ H&H telehealth consultations since launch 431k 2018 2.0mm 10mm+ Cumulative patient touchpoints' H&H telehealth consultations since launch 2019 Q2 2020
Slide 14: Delivering a consumer experience unlike anything in the industry
delivering a consumer experience unlike anything in the industry NPS scores by industry — © © © Gap GD a i il Wirele: Utilitis Cable Lodging Banking Retail Electronics weless insurance Provider == Insurance res Line hims & hers’ ‘Source: Company internal data, Acenture Consulting Note Net Prometer S
Slide 15: Adopted and championed by our customers
adopted and championed by our Customers who represent the future of the healthcare system &) of our Customers are first time buyers 312k 190k by 64% subscription’ growth YoY 2) of US population is Gen X or younger Millennials make up the majority of our Customers Customer driven organic growth our C
Slide 16: Customers whose lifetime value is just beginning
whose pre-existing health system loyalty is limited and whose lifetime value is just beginning GoF Tomorrow sore Age 60+ ~$500bn Tomorrow Menopause TAM age 40-60 Diabetes Control ~$ 400bn Hypertension aw) Cholesterol age 18-40 Fertility 53” ~$350bn _ Erectile Dysfunction of people would prefer Derma
Slide 17: Our immediately addressable markets are massive and underpenetrated
our immediately addressable markets are massive and underpenetrated ; Erectile . Hair Loss ~~ Dysfunction chat Al : x (“ED”) P' ~$3bn ~SAbn ~$14bn ~$44bn market size’ market size? fi market size? market size* 430 _* ahers™
Slide 18: Key underlying fundamentals making for logical expansion
Spend Chronic Generic Medication Specialty Focus Stigma Telehealth Enabled all with key underlying fundamentals making for logical expansion (Ez) Hair Loss ED $3bn $4bn Lv iv tv iv tv iv Lv iv tv iv Anxiety & Recently Launched Depression Dermatology $14bn $44bn Primary Care $280bn Sleep $15bn Fertil
Slide 19: We own the trusted consumer relationship
we own the trusted consumer relationship and are uniquely positioned in the rapidly-emerging landscape Telehealth Capability We have a defensible model, engaging directly with consumers, and thus are indifferent to future system evolutions B2c Focused hims shers Good +one medical iin L Livongo O teL
Slide 20: Future opportunities
Slide 21: Secular tailwinds are radically accelerating the shift towards digital care
secular tailwinds are radically accelerating the shift towards digital care Market Forces Rise in high deductible health plans (HDHPs) shifting risk to consumers. Consumer adoption of technology driving preference for change in healthcare Rapidly increasing medical costs driving need for price trans
Slide 22: Platform strength enabling transformation for entrenched stakeholders
the strength of our platform is also (GaN) partnerships wth enabling transformation for @ clinically focused telehealth platform VOchsner entrenched stakeholders @ nationwide prescription drug delivery @ synergistic continuity of care WSINAT @ screened and trained telehealth provider As customers' p
Slide 23: Meet hims & hers for enterprise
for enterprise ~500 100 + high utilization, specialty affordable specialty Meet hims & hers for categories medications’ categories’ organizations, a new kind of . consumer friendly ° °o ‘ platform & brand ila esa © cost, chron, 24/7 50 ° ° employer benefit that covers reventative care Pp in-house st
Slide 24: Ohio pharmacy unlocks future ability to accept insurance
our 300,000 sq. ft. Ohio pharmacy unlocks our future ability to accept insurance location: Columbus, OH features: ¥ 300k sq. ft. floor v Secure regulation standard drug storage cage v Full automation packaging machinery Source: Company internal data LMS, 2019 increasing our drug coverage by 400% wit
Slide 25: The rise of digital health is not limited to the United States
the rise of digital health is not limited to the United States... USA UK 330mm 66mm population population e e Source: World Bank, United States Census Bureau, Eurostat StatCan EU 446mm population 1. Bain & Company 2020, Covid-18 Accelerales the Adoption of Telemedicine in Asia-Pacific Countries; 2.
Slide 26: Ce ee
Ce ee eae! PIRI S FDS - —, ‘ad oO Sen a Pe a -
Slide 27: Attractive historical revenue growth and significant gross margin expansion
attractive historical revenue growth and significant gross margin expansion Year-over-Year Growth % — 4 209% 4 80% md Annual revenue $149 (S millions) a 136% CAGR $83 $27 2018A 2019A 2020A % Gross Margin 29% 54% TA% Annual gross profit ($ millions) 2018A 2019A 2020A hims «hers 27
Slide 28: Strong revenue growth since inception
strong revenue growth since inception Quarterly revenue (S$ millions) $41 $36 $30 $25 22 $20 $ $16 Q119 Q2119 Q319 Q419 Qr20 Q2’20 Q3’20 Q4'20 1.QYZIE based on midpoint of $48M - $50M guidance range Q1’21E' hims «hers 28
Slide 29: Consistent AOV and gross margin % expansion
consistent AOV and gross margin % expansion 76%, 77% Quarterly AOV' Quarterly gross margin % $67 $69 oy, 7% 61% $58 56% $52 53% $43 At iil Q11I9) Q2'19 Q319 Q4’19-Q1’20 Q2’20 Q3’20 Q4’20 QI19) -Q219 Q319 Q4’19.-Q1’20 Q2’20 Q3’20 Q4’20 ‘Source: Company internal det. 1 Average Order Value (ADV is defi
Slide 30: Historical and projected financial summary
historical and projected financial summary (millions) 2018A 20194 2020A 2021E Revenue $27 $83 $149 $195 - $205 YeY % Growth - 209% 80% 31% - 38% Gross Profit $38 $45 $109 = YoY % Growth - % Margin 29% 54% 7A Adjusted EBITDA’ ($68) ($66) ($8) ($35) A ($45) himszhers 30 1. This i @ non-GAAP financial
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures ‘measur, provides mecningul supplemental information regeraing our performance by excluding certain ams that may no! be indicative f our business revs of apetations, or eullack We consider Adjusted EBITD/1o be an important measure because helps iusrate underlying rend n o
Slide 32: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ millions) Net Loss (+) Depreciation and Amortization (+) Provision for Income Taxes (-) Interest Income (+) Interest Expense (+) Amortization of Debt Issuance Costs (+) Stock-based Compensation (+) Change in Fair Value of Warrant Liability Adjusted EBITDA 2018A ($75
Slide 33: Slide 33
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