The Hims app fixed on a smartphone in New York, SH.BA, on Wednesday, February 12, 2025.
Gabby Jones | Bloomberg | Getty Images
Shares of Hims & Health Health It fell 28% on Tuesday, the day after the Telehealth company issued the fourth trimester results that disappointed the gross margin and sparked concerns about the future of its business loss.
Hims & Hers reported $ 481 million in revenue for the quarter, with 95% of $ 246.6 million during the same period last year. Net revenue ranged to $ 26.01 million, or 11 cents per share, from $ 1.25 million, or 1 cent per share, a year ago.
But the company’s gross margin, or the remaining profit after calculating the cost of goods sold, was 77%, disappointing analysts waiting 78.4%, according to Streetaccount.
In the company’s three-month call with investors on Monday, CFO Yemi Okupe said the company’s GLP-1 supply and its strategic price options were to blame.
Hims & hers in May began to prescribe the complex semaglutides, the active ingredient in the NOGO Ozepic Nordisk and Wegovy weight loss drugs. Complicated medicines can be produced when brand name treatments are in absentia, but the US food and drug administration announced on Friday that the lack of semaglutide injection products has been resolved.
As a result, Hims & Hers said on Monday that it is likely to stop offing complicated semaglutides on its platform after its first trimester, although some customers may still be able to use personalized doses if they are clinically applicable . The GLP-1 offer generated more than $ 225 million in revenue for the company in 2024.
“We will have to start notifying customers in the month or next month that they will have to start looking for alternative trade dosage options,” CEO Hims & Hersrew Dudum said.
Speaking forward, the company said its weight loss offers will consist mainly of its oral medicines and injectable lyricized drugs, which it plans to present on its platform this year.
Analysts in Morgan Stanley said in a note on Tuesday, the company’s report was “too much to be wasted”. They maintained their equitable weight evaluation in stock and said they were surprised by the size of the 2025 company instructions.
Hims & Hers said it expects between $ 2.3 billion to $ 2.4 billion in revenue this year. The company added that it expects its weight loss offers to generate at least $ 725 million in revenue, excluding contributions from the composite semaglutide.
“We remain positive in the long -term opportunity, highlighting the company’s attractive platform and the rigid record of the part that distinguishes it about digital health and DTC companies,” Morgan Stanley analysts said.
The American Bank analysts said that while the company may have some success in the transition of patients to other weight loss offers such as its oral medicines, it will face an “important execution risk” while the brand supply with the name GLP-1 increases.
Moreover, analysts said Hims & Hers competitors are likely to shift marketing dollars back to other products such as erectile dysfunction and hair loss, which can pressure its advertising costs. They repeated their low rating in shares.
“Overall, we do not see head -in -head instructions in 2025 and we think the story of beatings and uplifting is likely to be in the nearby time,” the Bank of America analysts wrote in a note on Tuesday.
Meanwhile, analysts say that they think that guidance of revenue of Hims & Hers is “aspirating”, as it would require “significant acceleration” in the use of other weight loss products. They said they are less confident about the success of these offers.
Even so, analysts increased their target of $ 27 by $ 27.
“We expect a more convincing and more detail entry point on Ex-GlP-1 growth before we become more constructive,” they wrote in a Monday note.
-Michael Bloom of CNBC contributed to this report