What happened
Shares of Hims & Hers Health (HIMS -2.31%) were climbing today after the consumer-facing healthcare company delivered a strong second-quarter earnings report last night.
As a result, the stock was up 9.1% as of 12:05 p.m. EDT after gaining as much as 19.9% earlier in the session.
Image source: Hims & Hers.
So what
The telehealth company posted 69% revenue growth to $60.7 million in the quarter, ahead of estimates at $56.5 million. Online revenue, which makes up the vast majority of the business, was up 75% to $58.1 million, and the company saw strong growth in key metrics like subscriptions, net orders, and average order value, which increased from $58 to $74. Gross margin also improved from 71% to 78%, showing the company gaining scale.
On the bottom line, an adjusted EBITDA profit of $1.2 million in the year-ago quarter flipped to a $4.7 million loss as overhead expenses like marketing and general and administrative more than doubled in the period. On a generally accepted accounting principles (GAAP) basis, the company reported a per-share loss of $0.05, which beat expectations at $0.10.
CEO Andrew Dudum said, "This was a quarter of very strong execution, as we continued to drive consistent organic revenue growth across our business, from our core categories to the newer mental health services."
Now what
Hims & Hers also closed on two acquisitions in the quarter: Apostrophe, a teledermatology company, and Honest Health, a British vertical health platform. Those moves reflect the company's intentions to grow both organically and through acquisitions as it aims to become a "new front door to healthcare," in the words of Dudum.
Looking ahead, Hims & Hers expects revenue of $251 million to $255 million for the full year, or 70% growth at the midpoint, well ahead of the analyst consensus at $226.3 million. It also called for an adjusted EBITDA loss of $35 million to $40 million.
Considering the better-than-expected numbers both in the second quarter and for its full-year guidance, it's not a surprising to see Hims & Hers shares moving higher today.
