What happened
Shares of Hims & Hers Health (HIMS 1.87%) popped 19% on Tuesday after the personalized health and wellness company issued an upbeat financial forecast.
So what
Hims & Hers Health added more than 170,000 net new subscriptions in the third quarter, marking an all-time high and its third consecutive quarter of over 100,000 customer additions. The company ended September with a total of 991,000 subscriptions, representing year-over-year growth of 80%.
Hims & Hers Health's revenue, in turn, soared 95% to $144.8 million.
"Our ability to create a trusted brand, build best-in-class capabilities and deliver a seamless experience to consumers is enabling us to drive robust and consistent growth, while also investing in the business," co-founder and CEO Andrew Dudum said in a press release.
Moreover, Hims & Hers Health's gross margin improved to 79% from 74% in the third quarter of 2021. In turn, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss narrowed to $6.1 million from $9.8 million in the year-ago period.
Now what
Management guided for revenue of $159 million to $162 million. That was nicely above Wall Street's expectations of $143.7 million.
Better still, Hims & Hers Health is enjoying economies of scale as it expands its subscriber base. The company expects these efficiencies to help it achieve adjusted EBITDA profitability in the fourth quarter.
"Given the underlying strength of our model and ongoing momentum across the business, we are confident in our ability to operate profitably going forward while continuing to invest for growth," Dudum said.
