The Recent York Stock Exchange with a Hims & Hers Health banner is pictured within the Manhattan borough of Recent York City on Jan. 21, 2021.
Carlo Allegri | Reuters
Hims & Hers Health, the net provider of treatments for erectile dysfunction and hair loss, had its best day on the stock market since its debut three years ago after quarterly results beat estimates and the corporate said it expects to deliver its first full yr of profitability in 2024.
Shares of Hims & Hers closed up 31% to $13.43 as of Tuesday afternoon. They’re now up greater than 50% for the yr after climbing 39% in 2023.
Hims & Hers is an internet platform where patients can meet with providers and get personalized support for skincare, mental health, sexual health, weight reduction and hair care. Revenue jumped 47% to $246.6 million, topping the $246 million expected by analysts, based on LSEG, formerly generally known as Refinitiv.
Founded in 2017, the corporate went public through a special purpose acquisition company in January 2021. Hims & Hers generated net income within the fourth quarter of $1.2 million, or 1 cent per share, compared with a net lack of $10.9 million, or 5 cents a share, a yr ago.
For the primary quarter, Hims & Hers expects revenue growth of no less than 40% from a yr earlier to between $267 million and $272 million. Analysts were expecting sales of $253 million. Revenue for the total yr will fall between $1.17 billion and $1.2 billion.
In the course of the company’s quarterly call with investors on Monday, CEO Andrew Dudum said personalized solutions have helped attract recent users and drive increased longevity on its platform. He said newer specialties similar to weight reduction, mental health and Hers Dermatology are seeing increased adoption, and will each deliver greater than $100 million in revenue in 2025.
With mental health, Dudum said the corporate’s use of artificial intelligence has helped predict how a person patient will reply to medication, which might mean avoiding a “brutal” trial and error process.
Dudum said the category is expanding within the triple digits and “continues to be one in every of our highest growing specialties.”
Analysts at Jefferies described the outcomes as “more satisfying than Thanksgiving dinner” attributable to stronger-than-expected revenue, profitability and guidance.
Hims & Hers forecasts adjusted earnings of $22 million to $27 million in the primary quarter, in comparison with $14 million expected by analysts, based on StreetAccount.
“While we imagine it was largely expected that revs could be strong, we expect the market will probably be quite pleased with the margin leverage within the quarter, and the leverage implied within the guide,” wrote the Jefferies analysts, who recommend buying the shares.
Deutsche Bank analysts, who’ve a hold rating on the stock, wrote on Monday that Hims & Hers finished the yr strong, with “meaningfully better-than-expected” 2024 guidance. They raised their price goal from $8 to $14.
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