Hims & Hers Health, Inc. · NYSE:HIMS
Hims & Hers Health — Q1 2024 Earnings Presentation
37 slides from Hims & Hers Health's earnings presentation, May 6, 2024
Slide 1: Investor Presentation May 2024
S u p p l e m e n ta l P r e s e n tat i o n Investor Presentation May 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 or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and Se
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 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, 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 Andrew Yemi Melissa Soleil Mike Dr. Pat Khobi Dan Dudum Okupe Baird Boughton Chi Carroll Brooklyn Kenger Chief Executive Officer Chief Financial Chief Operating Chief Legal Chi
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 Sexual Health Dermatology Mental Heal
Slide 9: 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 Share of Total Subscribers1 Opting June ‘21 June ‘23 for a Personalized Product 1,107 Hims Topical Hair Blends Finasteride & by Hers Minoxidil Spray 1,078 Non-Perso
Slide 10: Our Strategy
Our Strategy
Slide 11: Success derived from 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 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 W e ans er burning questions and w personalized care and enable educate in engaging a s. It s h w y ’ w y access to c
Slide 15: Clinical excellence drives high quality outcomes
STRATEGY 15 Clinical excellence drives high quality outcomes & reinforces trust in our brand Access 100% board- Quality f ffi Sa ety & e cacy certified 1 24/7 44k+ Clinical standards platform uptime charts audited for quality in the last year realtime monitoring of clinical standards Fast & convenie
Slide 16: Four pillars come together to create a powerful flywheel
STRATEGY 16 Trusted Leading These four pillars Brand o mer Dema Technology come together to Attract & retain s t Leverage feedback Cu nd customers & providers to generate insights create a powerful flywheel ume r trust Insi ghts Clinical C o n s Be tt Innovative e r o u tc om e s Excellence Products
Slide 17: Key Highlights
Key Highlights
Slide 18: Launching innovative products and services to drive adoption and retention
Key Highlights 18 We continue to launch innovative products and services to drive higher adoption and retention Feb ’23 june ’23 J u ly ’ 2 3 Hard Mints Hair Blends ED + Heart Support by Hims by Hers by Hims Chewable ED solution initially Custom vitamin, biotin, Multi-action solution for launched in
Slide 19: Our weight management solution
Key Highlights 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 Disorders
Slide 20: Users rapidly adopting personalized solutions
Key Highlights 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 35%+ 75%+ MedMatch by Hims & Hers ~100% Women’s Der
Slide 21: Consumers increasingly drawn to our platform, higher market share
Key Highlights 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 Providers Betwe
Slide 22: Evolution of services expected to drive continued growth
Key Highlights 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 tremendously,
Slide 23: Our recurring revenue model sets a foundation for growth
Key Highlights 23 41% 1.2M 1.7M Our recurring revenue Subscriber Q1’23 Q1’24 model sets a foundation Growth 3 for strong revenue growth and margin expansion 46% $190.8M $278.2M Q1’24 Revenue Q1’23 Growth 90%+ recurring revenue1 8.4% Adjusted 11.6% Q1’24 75%+ gross margin profile EBITDA Margin Growth
Slide 24: Three key priorities in 2024
Key Highlights 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 Personal
Slide 25: Financials
Financials
Slide 26: Subscriber count and engagement drive revenue growth
Financials 26 Our subscriber count and 1 customer engagement drive revenue growth Number of subscribers1 Revenue per subscriber1 Acquisition Retention Engagement Multi-channel Customer Multi-month brand development experience adoption Brand High clinical Proprietary ambassadors excellence product ad
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 1,709 Revenue $56 $55 $55 $53 $54 $53 $55 End of quarter single-30 day $51 296 subscribers (’000) 1,537 1,426 $278 End of quarter multi-30 day 295 Monthly online re
Slide 28: Scaling platform at an attractive margin profile
Financials 28 This has translated in an ability to scale our platform at an attractive margin profile Quarterly revenue ($ millions) 82% 83% 83% $278 Gross margin (percentage) 82% $247 80% $227 $208 79% 79% $191 $167 77% $145 $114 Q2 ’22 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Q1 ’24
Slide 29: Scalability driving continued margin expansion
Financials 29 Scalability of model is driving continued margin expansion as topline momentum remains strong Adjusted EBITDA ($ m ll ons) 1 ii $32.3 8.4% Adjusted EBITDA Adjusted EBITDA marg n (percentage) i 1 margin1 improvement YoY >400 basis points of Marketing leverage YoY Strong cash position $2
Slide 30: Capital allocation principles remain consistent
Financials 30 Our capital allocation principles remain consistent, and will guide future investment 1 2 3 4 5 Organic growth Maintain a Focus on Invest in Opportunistic expected to be payback period 1 investments that durable long- share repurchases the primary across our portfolio drive long-term t
Slide 31: 2024 outlook anticipates strong top line growth and continued leverage
Financials 31 2024 outlook anticipates strong top line growth and continued leverage ($ millions) Q2 2024 FY 2024 2024 underlying themes 85%+ long-term retention2 Revenue $292 - $297 $1,200 - $1,230 1 YoY growth 40% - 43% 38% - 41% 2 Expanding portfolio of personalized offerings 3 Strong unit econom
Slide 32: Path to attractive long-term economics
Financials 32 Disciplined approach to investment and scaling provides a path to attractive long-term economics Long-term Expected margin profitability targets improvement areas 1 Leverage on G&A Expense Benefits from scaling platform and efficiency 2 Operations and Support Increased operational effi
Slide 33: Non-GAAP Financial Measures
Financials 33 Non-GAAP Financial Measures In addition to our financial results determined in accordance with U.S. GAAP, we present Adjusted EBITDA (which is a non-GAAP Some of the limitations of Adjusted EBITDA include (i) Adjusted EBITDA does not properly reflect capital commitments to be paid fina
Slide 34: Appendix
Appendix
Slide 35: Net Income (Loss) to Adjusted EBITDA Reconciliation
Financials 35 Net Income (Loss) to Adjusted EBITDA Reconciliation (Quarterly) ($ millions, unaudited) Revenue $113.6 $144.8 $167.2 $190.8 $207.9 $226.7 $246.6 $278.2 Net income (loss) ($19.7) ($18.8) ($10.9) ($10.1) ($7.2) ($7.6) $1.2 $11.1 Stock-based compensation $10.6 $11.0 $12.4 $14.2 $16.8 $17.
Slide 36: Operating Cash Flow to Free Cash Flow Reconciliation
Financials 36 Net Cash Provided By (Used In) Operating Activities to Free Cash Flow Reconciliation (Quarterly) ($ millions, unaudited) Net cash provided by (used in) ($6.4) $6.0 ($6.7) $9.5 $16.8 $25.2 $22.0 $25.8 operating activities Less: purchases of property, equipment, and intangible assets in
Slide 37: Sources
APPENDIX 37 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