Hims & Hers stock falls after first-quarter loss and mixed annual outlook
Telehealth company reported a wider net loss, lower adjusted EBITDA and guidance that analysts said came in below expectations
L'essentiel
- Hims & Hers shares fell in premarket trading after the company reported a $92 million first-quarter net loss and issued guidance that Citi described as mixed.
- Investors also focused on the firm's transition away from compounded GLP-1 sales.
Résumé généré par IA
Pourquoi c'est important
The article says Hims & Hers has been highly profitable in selling weight loss drugs to consumers and that its stock often reacts strongly to news affecting that business. It also notes the company is reducing its reliance on compounded GLP-1s after a March deal with Novo Nordisk involving Wegovy.
Hims & Hers stock fell in early trading Tuesday after the telehealth company reported a first-quarter loss and issued weak guidance for the year ahead.
The company reported a net loss of $92 million in the first quarter on Monday, compared with roughly $50 million in the same period a year earlier. Adjusted EBITDA fell to $44 million from $91 million last year. Revenue rose 4% to $608 million, while average monthly revenue per subscriber declined to $80 from $85.
Hims expects second-quarter revenue between $680 million and $700 million and forecasts as much as $3 billion in revenue for the full year.
It forecast adjusted earnings before interest, taxes, depreciation and amortization of up to $55 million for the second quarter and up to $350 million for the full year.
The stock was last down 15.7% in premarket trading.
Citi analysts described the forecast as "mixed" and said Hims & Hers' second-quarter outlook came in below Citi's estimates.
The analysts also said the first quarter marked a "transition" phase for the company as it reduces its reliance on compounded GLP-1s.
Hims reached a deal with Novo Nordisk in March to sell its GLP-1 weight loss drug Wegovy on its platform while committing to stop advertising cheaper copycat versions known as compounding drugs.
Hims stock has often reacted strongly to news that could affect its ability to sell weight loss drugs to consumers, which has been a highly profitable business for the company.
À surveiller
Perspective IA — des possibilités, pas des certitudes
Analysts are likely to continue revising their expectations for Hims & Hers after the weaker-than-expected second-quarter outlook.
Probable · En quelques jours
Investor attention will remain focused on how the company replaces revenue tied to compounded GLP-1 products.
Très probable · En quelques semaines
Hims & Hers shares may remain volatile on further updates related to weight loss drug sales.
Très probable · En quelques semaines
Questions ouvertes
- Why did Hims & Hers' net loss widen so sharply from the prior year?
- How much of future revenue is expected to come from Wegovy versus other offerings?
- How quickly will the company reduce its reliance on compounded GLP-1s?
- What specific factors caused second-quarter guidance to fall below Citi's estimates?
