Hims & Hers Stock Plummets After Posting Q1 Loss and Weak Guidance

Telehealth company Hims & Hers' stock plummeted on Tuesday after posting a first-quarter loss and weak earnings guidance for the year ahead. The digital health firm reported a net loss of $92 million in its first quarter earnings on Monday, compared with roughly $50 million for the same period the prior year. Its adjusted Ebitda was $44 million, down from $91 million last year. Meanwhile, revenue was up 4% to $608 million. Average monthly revenue per subscriber was $80, down from $85 last year. Hims is expecting revenue in a range between $680 million and $700 million for the second quarter, and is forecasting up to $3 billion in revenue for the full year. It forecast adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up to $55 million for the second quarter, and up to $350 million for the full year. The company's stock was last seen down nearly 13%. 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 of the drug known as compounding drugs. Novo said in February that it would sue Hims for selling copycat versions of the Wegovy pill for $49, $100 less than what Novo sells it for. "The action by Hims & Hers is illegal mass compounding that poses a significant risk to patient safety," Novo said in a statement at the time. Hims pulled the pill shortly after the backlash received. Hims stock has often reacted strongly to any news that may affect its ability to sell weight loss drugs to consumers, which has been highly profitable for the telehealth company. The firm has faced controversy over its selling of copycat weight loss drugs via a regulatory loophole that enables companies other than the patent holder to sell a drug if it's in shortage. Although the shortage was resolved, Hims continued selling its version of the drugs, despite it being patented until 2032. Novo even partnered with Hims last year to offer discounted treatments, but the deal ended quickly, with Novo accusing Hims of deceptive marketing and raising concerns about patient safety. "It's a very different situation than the last time we did this," Novo CEO Mike Doustdar told CNBC in March. "Hims & Hers have agreed that upon receiving our products, they will no longer advertise, promote, market compounded products to the masses." — Elsa Ohlen contributed to this report