Hims & Hers Health, Inc. · NYSE:HIMS
Hims & Hers Health — Q4 2023 Earnings Presentation
41 slides from Hims & Hers Health's earnings presentation, Feb 26, 2024
Slide 1: Investor Presentation February 2024
S u p p l e m e n ta l P r e s e n tat i o n Investor Presentation February 2024
Slide 2: Safe Harbor Statement
Introduction 2 Safe Harbor Statement This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and performance to be materially different from those expressed or implied by these forward-looking statements. These risks and Secti
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 consumer brands, technology companies and healthcare
Introduction 4 Remember to take your medication at... Bringing together the most 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, 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 team is led by a visionary founder
STRATEGY 6 Our team is led by a visionary founder, with support from a leadership team that has scaled disruptive companies
Slide 7: Internal clinical advisory board and healthcare partnerships drive clinical excellence
STRATEGY 7 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 fac
Slide 8: We continue to address a large, unmet market opportunity
INTRODUCTION 8 We continue to address a 90% as much as 90% of applicable population yet to seek treatment in some conditions large, unmet market opportunity Through normalizing and innovating, our platform can unlock solutions for millions of potential customers Note: See page 41 for source
Slide 9: Our approach is to remove barriers and provide access to better health
INTRODUCTION 9 Our approach is to remove barriers and provide access to better health that is approachable, personalized and convenient June ‘21 Total Subscribers,1 at FYE June ‘23 Hims Topical Hair Blends Finasteride & by Hers Subscribers (’000) Minoxidil Spray % of subscribers using a personalized
Slide 10: Our Strategy
Our Strategy
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 on
Slide 13: Our leading technology platform enables bilateral insights
STRATEGY 13 Our leading technology platform enables a customer & provider experience where bilateral insights drive continuous improvements Proprietary Insights driven Seamless AI powered technology stack platform customer access provider tools Our technology stack operates as With millions of medic
Slide 14: Innovative products and services 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 access to customizabl
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 1 24/7 44k+ Clinical standards platform uptime charts audited for quality in 2023 realtime monitoring of clinical standards Fast & convenient Provider s
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 s t o mer Dema Technology Leverage feedback come together to Cu n d customers & providers to generate insights create a powerful flywheel me r trust Insi ghts o n su Clinical C te r o u tc o m e s Be t Innovative Excellence Pr
Slide 17: Key Highlights for 2023
Key Highlights for 2023
Slide 18: Throughout 2023, we launched innovative products and services
Key Highlights for 2023 18 Throughout 2023, we launched innovative products and services to drive higher adoption and retention Q1 ’23 Q2 ’23 Q3 ’23 Hard Mints Hair Blends ED + Heart Support by Hims by Hers by Hims Chewable ED solution initially Custom vitamin, biotin, Multi-action solution for laun
Slide 19: Our weight management solution treats underlying factors of weight gain
Key Highlights for 2023 19 Our weight management solution aims to treat the underlying factors of weight gain, aligning with our personalized approach Weight gain is a function of various Holistic clinical solutions physical and mental factors for weight loss management starting at $79/mo Metabolic
Slide 20: Users are rapidly adopting personalized solutions across our platform
Key Highlights for 2023 20 Users are rapidly adopting personalized solutions across our platform as a result of access to unique and effective solutions at compelling price points Sexual Men’s Women’s Mental Weight Health Dermatology Dermatology Health Loss 30% 75%+ MedMatch by Hims & Hers ~100% Wom
Slide 21: Consumers increasingly drawn to our platform, higher market share
Key Highlights for 2023 21 Consumers are increasingly drawn to our platform resulting in higher market share, as we break down barriers with high quality personalized solutions that are cost effective Share of Observed Total Customers Share of New Observed Customers Between Primary Telehealth Provid
Slide 22: Evolution of services expected to drive continued growth
Key Highlights for 2023 22 Evolution of services in our platform is expected to drive continued growth in tenured categories, while also enable newer categories to achieve scale Sexual Men’s Women’s Mental Weight Health Dermatology Dermatology Health Loss Longest tenured specialties have grown treme
Slide 23: Our recurring revenue model sets a foundation for strong revenue growth
Key Highlights for 2023 23 48% 1.0M 1.5M Our recurring revenue Subscriber Q4’22 Q4’23 model sets a foundation Growth 3 for strong revenue growth and margin expansion 47% $247M Q4’23 Revenue $167M Q4’22 Growth 90%+ recurring revenue1 6% Adjusted 8% Q4’23 75%+ gross margin profile EBITDA Margin Growth
Slide 24: Three key priorities in 2024
Key Highlights for 2023 24 We are confident in our ability to execute across three key priorities in 2024 to drive future growth and market share gains Evolve and expand personalized solutions Leverage AI capabilities Exceptional operational and treatments across structured data excellence and scale
Slide 25: Financials
Financials
Slide 26: Subscriber count and customer engagement drive revenue growth
Financials 26 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 27: Subscriber expansion driving strong revenue growth
Financials 27 Subscriber expansion driving strong revenue growth, 1 while maintaining strong revenue per average subscriber Subscribers Revenue $56 $55 $55 $53 $54 $53 $52 $51 End of quarter single-30 day 1,537 subscribers (’000) 1,426 End of quarter multi-30 day 295 $247 1,300 Monthly online rev. p
Slide 28: Both new and repeat usage power online revenue growth
Financials 28 Both new and repeat usage power online revenue growth $842 New customer online revenue1 ($ millions) 84%+ CAGR 2019 - 2023 Repeat customer online revenue2 ($ millions) 74%+ $503 CAGR 2019 - 2023 $259 $141 $82 $27 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 (1) Represents total Hims
Slide 29: Ability to scale platform at an attractive margin profile
Financials 29 This has translated in an ability to scale our platform at an attractive margin profile Quarterly revenue 83% 83% ($ millions) 82% $247 Gross margin 80% $227 (percentage) $208 79% 79% $191 $167 77% $145 74% $114 $101 Q1 ’22 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23
Slide 30: Strong unit economics provide a foundation to scale
Financials 30 Strong unit economics have provided a foundation to scale with confidence Q1 ’19 Cohort < 1yr Q1 ‘23 Cohort less than one year payback period1 $122 $102 $77 $6 $8 $47 $1 $4 ($12) Cumulative Online Gross Profit ($84) Cumulative Online Gross Profit Paid Marketing Expense2 Paid Marketing
Slide 31: Scalability driving continued margin expansion
Financials 31 Scalability of model is driving continued margin expansion as topline momentum remains strong Adjusted EBITDA ($ millions) 1 $20.6 6.0% Adjusted EBITDA margin improvement YoY Adjusted EBITDA margin (percentage) 1 First full year of positive Adjusted EBITDA; $12.3 generating $47M in FCF
Slide 32: Our capital allocation principles remain consistent
Financials 32 Our capital allocation principles remain consistent, and will guide future investment 1 2 3 4 5 Organic growth Maintain a Focus on Invest in Opportunistic expected to be payback period 1 investments that durable long- share repurchases the primary across our portfolio drive long-term t
Slide 33: 2024 outlook anticipates strong top line growth and continued leverage
Financials 33 0 4 outlook anticipates strong top line growth 2 2 and continued leverage ($ millions) Q1 2024 FY 2024 2024 underlying themes Revenue $267 - $272 $1,170 - $1,200 1 85%+ long-term retention2 YoY growth 40% - 43% 34% - 38% 2 Expanding portfolio of personalized offerings 3 Strong unit eco
Slide 34: Disciplined approach provides path to attractive long-term economics
Financials 34 Disciplined approach to investment and scaling provides a path to attractive long-term economics Long-term Expected margin profitability targets improved areas 1 Leverage on G&A Expense Benefits from scaling platform and efficiency 2 Operations and Support Increased operational efficie
Slide 35: Non-GAAP Financial Measures
Financials 35 Non-GAAP Financial Measures In addition to our financial results determined in accordance with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid fina
Slide 36: Appendix
Appendix
Slide 37: Net Loss to Adjusted EBITDA Reconciliation
Financials 37 Net Loss to Adjusted EBITDA Reconciliation ($ millions, unaudited) 2019A 2020A 2021A 2022A 2023A Revenue $82.6 $148.8 $271.9 $526.9 $872.0 Net Loss ($72.1) ($18.1) ($107.7) ($65.7) ($23.5) Stock-based compensation $8.0 $5.8 $67.2 $42.8 $66.1 Depreciation and amortization $0.3 $1.1 $4.1
Slide 38: Net Income (Loss) to Adjusted EBITDA Reconciliation (Quarterly)
Financials 38 Net Income (Loss) to Adjusted EBITDA Reconciliation (Quarterly) ($ millions, unaudited) Revenue $101.3 $113.6 $144.8 $167.2 $190.8 $207.9 $226.7 $246.6 Net Loss ($16.3) ($19.7) ($18.8) ($10.9) ($10.1) ($7.2) ($7.6) $1.2 Stock-based compensation $8.9 $10.6 $11.0 $12.4 $14.2 $16.8 $17.3
Slide 39: Operating Activities to Free Cash Flow Reconciliation
Financials 39 Net Cash Provided By (Used In) Operating Activities to Free Cash Flow Reconciliation ($ millions, unaudited) 2019A 2020A 2021A 2022A 2023A Net cash provided by (used in) ($74.9) ($2.5) ($34.4) ($26.5) $73.5 operating activities Less: purchases of property, equipment, and intangible ass
Slide 40: Operating Activities to Free Cash Flow Reconciliation (Quarterly)
Financials 40 Net Cash Provided By (Used In) Operating Activities to Free Cash Flow Reconciliation (Quarterly) ($ millions, unaudited) Net cash provided by (used in) ($19.4) ($6.4) $6.0 ($6.7) $9.5 $16.8 $25.2 $22.0 operating activities Less: purchases of property, equipment, and intangible assets i
Slide 41: Sources
APPENDIX 41 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