Hims & Hers Well being, Inc. Stories Fourth Quarter and Full Yr 2021 Monetary Outcomes and Gives First Quarter and Full Yr 2022 Outlook

Exceeded This fall 2021 and full yr 2021 income and Adjusted EBITDA steerage

Full yr income grew 83% year-over-year to $271.9 million. This fall 2021 income elevated from Q3 2021 and grew 104% year-over-year to $84.7 million

This fall 2021 ending member subscriptions grew 95% year-over-year to 609,000

Gives Q1 and full yr 2022 steerage, with full yr 2022 income within the vary of $365 million to $380 million and Adjusted EBITDA within the vary of $(30) million to $(20) million

SAN FRANCISCO, February 22, 2022–(BUSINESS WIRE)–Hims & Hers Well being, Inc. (“Hims & Hers”, NYSE: HIMS), a multi-specialty telehealth platform that connects shoppers to licensed healthcare professionals and gives entry to associated prescription achievement, right this moment reported monetary outcomes for the fourth quarter and full yr ending December 31, 2021.

“We completed our first yr as a public firm with our greatest quarter but, as soon as once more surpassing income and Adjusted EBITDA expectations that we set getting into the yr, whereas sustaining an environment friendly capital allocation philosophy. We consider these outcomes showcase that our mission to supply top quality, handy, and reasonably priced care by a extra fashionable, customized platform is being adopted right this moment as extra sufferers than ever, throughout a number of age and demographic teams, are participating with Hims & Hers of their well being and wellness journey by way of a number of channels,” mentioned Andrew Dudum, CEO and co-founder of Hims & Hers. “I wish to thank the tireless effort made by the wonderful Hims & Hers crew. With out them, the astonishing progress that we made this yr, paving the way in which for long-term sustainable success, wouldn’t have been doable.”

Key Enterprise Metrics

(In 1000’s, Besides AOV, Unaudited)

Three Months Ended
December 31,

Yr Ended
December 31,

2021

2020

Change

2021

2020

Change

AOV

$

74

$

69

$

5

$

74

$

62

$

12

Internet Orders

1,063

579

484

3,504

2,279

1,225

As of December 31,

2021

2020

Change

Subscriptions

609

312

297

Income

(In 1000’s, Unaudited)

Three Months Ended
December 31,

Yr Ended
December 31,

2021

2020

Change

2021

2020

Change

On-line Income

$

78,312

$

40,091

$

38,221

$

259,170

$

140,728

$

118,442

Wholesale Income

6,387

1,375

5,012

12,708

8,029

4,679

Complete income

$

84,699

$

41,466

$

43,233

$

271,878

$

148,757

$

123,121

Complete income year-over-year progress

104

%

67

%

83

%

80

%

Fourth Quarter 2021 Monetary Highlights

  • Income was $84.7 million for the fourth quarter 2021 in comparison with $41.5 million for the fourth quarter 2020, a rise of 104% year-over-year.

  • Internet loss was $(31.2) million for the fourth quarter 2021 in comparison with $(5.2) million for the fourth quarter 2020.

  • Gross margin was 73% for the fourth quarter 2021 in comparison with 77% for the fourth quarter 2020.

  • Adjusted EBITDA was $(7.1) million for the fourth quarter 2021 in comparison with $(3.1) million for the fourth quarter 2020.

Full Yr 2021 Monetary Highlights

  • Income was $271.9 million for the yr ended December 31, 2021 in comparison with $148.8 million for the yr ended December 31, 2020, a rise of 83% year-over-year.

  • Internet loss was $(107.7) million for the yr ended December 31, 2021 in comparison with $(18.1) million for the yr ended December 31, 2020.

  • Gross margin was 75% for the yr ended December 31, 2021 in comparison with 74% for the yr ended December 31, 2020.

  • Adjusted EBITDA was $(30.1) million for the yr ended December 31, 2021 in comparison with $(8.1) million for the yr ended December 31, 2020.

A reconciliation of Adjusted EBITDA, a non-GAAP measure, to internet loss, its most comparable monetary measure below typically accepted accounting ideas in the USA (“U.S. GAAP”), has been offered on this press launch within the accompanying tables. Further details about Adjusted EBITDA can also be included beneath below the heading “Non-GAAP Monetary Measures”.

Latest Enterprise Highlights

  • Launched Hims & Hers cell platform on the iOS app retailer, taking the following step in our plan to basically reshape what it means to entry and expertise nice fashionable healthcare.

  • Launched new Hers prescription dermatology choices, Topical Finasteride and Minoxidil Spray and Oral Spironolactone, rising help for girls experiencing hair loss.

  • Introduced further strategic nationwide omnichannel retail collaborations to supply shoppers broader entry to Hims & Hers well being and wellness merchandise by the brand new official Hims & Hers retailer on Amazon.com, in +7,800 CVS places and on cvs.com, in choose GNC places and on GNC.com, in +7,000 Walgreens places and on walgreens.com, in addition to in +1,400 Walmart places and on walmart.com.

  • Partnered with Uber to create on-demand supply in 12 markets, offering prospects with a fast and handy choice to have Hims & Hers nonprescription merchandise delivered by way of the Uber Eats platform.

Monetary Outlook

Hims & Hers gives steerage based mostly on present market circumstances and expectations for income and Adjusted EBITDA, which is a non-GAAP monetary measure.

For the primary quarter 2022, we anticipate:

For the total yr 2022, we anticipate:

The steerage offered above constitutes forward-looking statements and precise outcomes could differ materially. Seek advice from the “Cautionary Observe Relating to Ahead-Trying Statements” protected harbor part beneath for data on the elements that would trigger our precise outcomes to vary materially from these forward-looking statements.

We’ve got not reconciled forward-looking Adjusted EBITDA to its most straight comparable U.S. GAAP measure, internet loss, as a result of we can’t predict with cheap certainty the last word final result of sure parts of such reconciliations, together with market-related assumptions that aren’t inside our management, or others that will come up, with out unreasonable effort. For these causes, we’re unable to evaluate the possible significance of the unavailable data, which may materially influence the quantity of future internet loss. See “Non-GAAP Monetary Measures” for extra vital data relating to Adjusted EBITDA.

Convention Name

Hims & Hers will host a convention name to overview the fourth quarter and full yr 2021 outcomes on February 22, 2022, at 5:00 p.m. ET. The convention name might be accessed by dialing +1 (888) 510-2630 for U.S. contributors and +1 (646) 960-0137 for worldwide contributors, and referencing convention ID #1704296. A reside audio webcast can be accessible on-line at https://buyers.forhims.com/. A replay of the decision can be accessible by way of webcast for on-demand listening for 12 months on the similar hyperlink.

About Hims & Hers Well being, Inc.

Hims & Hers is a multi-specialty telehealth platform remodeling the way in which healthcare is delivered. Its digital platform permits entry to remedies for a broad vary circumstances, together with these associated to sexual well being, hair loss, dermatology, psychological well being and first care. Hims & Hers connects sufferers to licensed healthcare professionals who can prescribe medicines when acceptable. Prescriptions are fulfilled on-line by licensed pharmacies on a subscription foundation, making accessing remedies easy, reasonably priced, and simple. By means of the Hims & Hers cell app, shoppers can entry an ever-expanding vary of academic packages, wellness content material, neighborhood help, and different providers that promote lifelong well being and wellness. Hims & Hers merchandise will also be present in tens of 1000’s of high retail places in the USA. Launched in November 2017, Hims & Hers serves all the United States and choose places in the UK. The corporate is publicly traded on the New York Inventory Change. For extra details about Hims & Hers, please go to forhims.com and forhers.com.

Cautionary Observe Relating to Ahead-Trying Statements

This press launch consists of forward-looking statements throughout the that means of Part 27A of the Securities Act of 1933, as amended and Part 21E of the Securities Change Act of 1934, as amended. These forward-looking statements might be recognized by means of forward-looking terminology, together with the phrases “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “could,” “will,” “potential,” “initiatives,” “predicts,” “proceed,” or “ought to,” or, in every case, their adverse or different variations or comparable terminology. There might be no assurance that precise outcomes won’t materially differ from expectations. Such statements embody, however aren’t restricted to, any statements regarding our monetary outlook and steerage, our anticipated future monetary and enterprise efficiency together with with respect to our Hims & Hers cell platform, the assumptions underlying such statements, statements about occasions and tendencies together with occasions and tendencies that we consider could have an effect on our monetary situation, outcomes of operations, short- and long-term enterprise operations and targets, and monetary wants, our expectations relating to market acceptance, person expertise, the success of our enterprise mannequin, the expansion of sure of our classes and the influence of our latest acquisitions, our potential to increase the scope of our choices, and our potential to adjust to the intensive, advanced and evolving regulatory necessities relevant to the healthcare trade. These statements are based mostly on administration’s present expectations, however precise outcomes could differ materially attributable to varied elements.

The forward-looking statements contained on this press launch are based mostly on our present expectations and beliefs regarding future developments and their potential results on us. Future developments affecting us is probably not those who we have now anticipated. These forward-looking statements contain a variety of dangers, uncertainties (a few of that are past our management) and different assumptions that will trigger precise outcomes or efficiency to be materially totally different from these expressed or implied by these forward-looking statements. These dangers and uncertainties embody, however aren’t restricted to, these elements described within the “Danger Components” part of our most not too long ago filed Annual Report on Kind 10-Okay, our most not too long ago filed Quarterly Report on Kind 10-Q, and our subsequent filings with the Securities and Change Fee (the “Fee”).

Ought to a number of of those dangers or uncertainties materialize, or ought to any of our assumptions show incorrect, precise outcomes could fluctuate in materials respects from these projected in these forward-looking statements. We undertake no obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, besides as could also be required below relevant securities legal guidelines.

By their nature, forward-looking statements contain dangers and uncertainties as a result of they relate to occasions and rely upon circumstances that will or could not happen sooner or later. We warning you that forward-looking statements aren’t ensures of future efficiency and that our precise outcomes of operations, monetary situation and liquidity, and developments within the trade wherein we function could differ materially from these made in or prompt by the forward-looking statements contained in experiences we have now filed or will file with the Fee, together with our most not too long ago filed Annual Report on Kind 10-Okay, our most not too long ago filed Quarterly Report on Kind 10-Q, and our subsequent filings with the Fee. As well as, even when our outcomes of operations, monetary situation and liquidity, and developments within the trade wherein we function are according to the forward-looking statements contained in such experiences, these outcomes or developments is probably not indicative of outcomes or developments in subsequent durations.

Key Enterprise Metrics

Common Order Worth (“AOV”) is outlined as On-line Income divided by Internet Orders (every as outlined beneath).

“Internet Orders” are outlined because the variety of on-line buyer orders minus transactions associated to refunds, credit, chargebacks, and different adverse changes. Internet Orders signify transactions made on our platform throughout an outlined time period and exclude income recognition changes recorded pursuant to U.S. GAAP.

“On-line Income” represents the gross sales of services on our platform, internet of refunds, credit, and chargebacks, and consists of income recognition changes recorded pursuant to U.S. GAAP, primarily regarding deferred income and returns reserve. On-line Income is generated by promoting on to shoppers by our web sites. Our On-line Income consists of services bought by prospects straight by our on-line platform. The vast majority of our On-line Income is subscription-based, the place prospects conform to be billed on a recurring foundation to have services mechanically delivered to them.

“Subscriptions” are outlined because the variety of buyer agreements the place the client has agreed to be mechanically billed on a recurring foundation at an outlined cadence. The billing cadence is often outlined as a variety of months (for instance, billed each month or each three months). Subscriptions are excluded from our reporting when fee has not occurred on the contracted billing cadence. Subscription billing is most popular by lots of our prospects as a result of a lot of the services we make accessible deal with continual circumstances and these product and repair choices are only when taken persistently and repeatedly. Prospects can cancel subscriptions in between billing durations to cease receiving further services and may reactivate subscriptions to proceed receiving further services.

“Wholesale Income” represents non-prescription product gross sales to retailers by wholesale buying agreements. Along with being income generative and worthwhile, wholesale partnerships have the additional benefit of producing model consciousness with new prospects in bodily environments.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In 1000’s, Besides Share and Per Share Knowledge, Unaudited)

December 31,

2021

2020

Belongings

Present property:

Money and money equivalents

$

71,784

$

27,344

Quick-term investments

175,490

72,864

Stock

13,558

3,543

Pay as you go bills and different present property

9,073

5,404

Deferred transaction prices

3,929

Complete present property

269,905

113,084

Restricted money

856

1,006

Goodwill

110,881

Intangibles, internet

25,890

59

Working lease right-of-use property

5,111

Different long-term property

7,942

4,548

Complete property

$

420,585

$

118,697

Liabilities, mezzanine fairness, and stockholders’ fairness (deficit)

Present liabilities:

Accounts payable

$

19,640

$

8,066

Accrued liabilities

12,194

4,984

Deferred income

3,188

1,272

Earn-out payable

42,834

Working lease liabilities

1,365

Warrant liabilities

906

Complete present liabilities

79,221

15,228

Working lease liabilities

4,117

Earn-out liabilities

1,999

Different long-term liabilities

629

381

Complete liabilities

85,966

15,609

Commitments and contingencies

Mezzanine fairness:

Redeemable convertible most popular inventory par worth $0.0001, 275,000,000 and 95,997,674 shares licensed and nil and 93,328,118 shares issued and excellent as of December 31, 2021 and December 31, 2020, respectively; liquidation choice of nil and $268,452 as of December 31, 2021 and December 31, 2020, respectively

249,962

Complete mezzanine fairness

249,962

Stockholders’ fairness (deficit):

Frequent inventory – Class A shares, par worth $0.0001, 2,750,000,000 and 166,696,759 shares licensed and 196,414,363 and 46,025,754 shares issued and excellent as of December 31, 2021 and December 31, 2020, respectively; Class V shares, par worth $0.0001, 10,000,000 shares licensed and eight,377,623 shares issued and excellent as of December 31, 2021; Class F shares, par worth $0.0001, 6,941,352 shares licensed, issued, and excellent as of December 31, 2020

20

5

Further paid-in capital

613,687

24,424

Accrued different complete loss

(137

)

(11

)

Accrued deficit

(278,951

)

(171,292

)

Complete stockholders’ fairness (deficit)

334,619

(146,874

)

Complete liabilities, mezzanine fairness, and stockholders’ fairness (deficit)

$

420,585

$

118,697

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In 1000’s, Besides Share and Per Share Knowledge, Unaudited)

Three Months Ended

December 31,

Yr Ended

December 31,

2021

2020

2021

2020

Income

$

84,699

$

41,466

$

271,878

$

148,757

Price of income

22,601

9,574

67,384

39,307

Gross revenue

62,098

31,892

204,494

109,450

Working bills:(1)

Advertising

42,707

19,314

135,902

58,989

Promoting, common, and administrative

40,956

17,204

183,634

65,605

Complete working bills

83,663

36,518

319,536

124,594

Loss from operations

(21,565

)

(4,626

)

(115,042

)

(15,144

)

Different earnings (expense):

Change in truthful worth of liabilities

(9,808

)

(624

)

3,802

(3,101

)

Curiosity expense

(10

)

Different earnings, internet

125

45

445

268

Complete different earnings (expense), internet

(9,683

)

(579

)

4,247

(2,843

)

Loss earlier than earnings taxes

(31,248

)

(5,205

)

(110,795

)

(17,987

)

Profit (provision) for earnings taxes

87

(24

)

3,136

(127

)

Internet loss

(31,161

)

(5,229

)

(107,659

)

(18,114

)

Different complete (loss) earnings

(85

)

(1

)

(126

)

(13

)

Complete complete loss

$

(31,246

)

$

(5,230

)

$

(107,785

)

$

(18,127

)

Internet loss per share attributable to widespread stockholders:

Primary and diluted

$

(0.15

)

$

(0.15

)

$

(0.58

)

$

(0.51

)

Weighted common shares excellent:

Primary and diluted

201,363,338

35,926,748

186,781,537

35,353,809

______________

(1) Contains stock-based compensation expense as follows (in 1000’s):

Three Months Ended

December 31,

Yr Ended

December 31,

2021

2020

2021

2020

Advertising

$

4,718

$

253

$

9,664

$

1,172

Promoting, common, and administrative

7,234

835

57,547

4,659

Complete stock-based compensation expense

$

11,952

$

1,088

$

67,211

$

5,831

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In 1000’s, Unaudited)

Yr Ended December 31,

2021

2020

Working actions

Internet loss

$

(107,659

)

$

(18,114

)

Changes to reconcile internet loss to internet money utilized in working actions:

Depreciation and amortization

4,075

1,057

Inventory-based compensation

67,211

5,831

Change in truthful worth of liabilities

(3,802

)

3,101

Warrant expense in reference to Merger

154

Lease termination expense

754

Amortization of debt issuance prices

144

322

Internet amortization on securities

2,166

325

Profit for deferred taxes

(3,388

)

Non-cash working lease value

1,510

Non-cash acquisition-related prices

1,182

Non-cash different

540

59

Adjustments in working property and liabilities:

Stock

(9,628

)

674

Pay as you go bills and different present property

3,200

(645

)

Different long-term property

(58

)

8

Accounts payable

9,853

826

Accrued liabilities

197

2,423

Deferred income

1,412

519

Working lease liabilities

(1,521

)

Different long-term liabilities

381

Internet money utilized in working actions

(34,412

)

(2,479

)

Investing actions

Purchases of investments

(266,633

)

(95,008

)

Maturities of investments

158,375

47,990

Proceeds from gross sales of investments

3,465

11,550

Acquisition of companies, internet of money acquired

(46,468

)

Funding in web site growth and internal-use software program

(4,175

)

(2,496

)

Purchases of property, gear, and intangible property

(832

)

(1,737

)

Internet money utilized in investing actions

(156,268

)

(39,701

)

Financing actions

Proceeds from issuance of redeemable convertible most popular inventory, internet of issuance prices

51,900

Pre-closing inventory repurchase

(22,027

)

Proceeds from issuance of widespread inventory upon Merger

197,686

Proceeds from PIPE

75,000

Funds for transaction prices associated to securities issuances

(12,851

)

(3,356

)

Proceeds from reimbursement of promissory notes related to vested and unvested shares

1,193

Proceeds from train of Collection C most popular inventory warrants

29

Proceeds from train of Class A typical inventory warrants, internet of redemption funds

787

561

Proceeds from train of vested and unvested inventory choices, internet of repurchases and cancelations

1,253

123

Repayments of principal on time period mortgage

(1,515

)

Funds for taxes associated to internet share settlement of fairness awards

(5,998

)

Internet money offered by financing actions

235,043

47,742

Overseas foreign money impact on money and money equivalents

(73

)

(9

)

Enhance (lower) in money, money equivalents, and restricted money

44,290

5,553

Money, money equivalents, and restricted money at starting of interval

28,350

22,797

Money, money equivalents, and restricted money at finish of interval

$

72,640

$

28,350

Supplemental disclosures of money circulation data

Money paid for taxes

$

338

$

221

Money paid for curiosity

10

Non-cash investing and financing actions

Expiration of Class A typical inventory redemption proper

4,500

Train of convertible most popular inventory warrants

11,292

Recapitalization of redeemable convertible most popular inventory from pre-closing inventory repurchase

125

Conversion of redeemable convertible most popular inventory to widespread inventory

249,837

Assumption of Merger warrants legal responsibility

51,814

Redemption/train of Class A typical inventory warrants

37,834

Conversion of Collection D most popular inventory warrants to Class A typical warrants

1,160

Vesting of early-exercised inventory choices, internet of cancelations

227

31

Frequent inventory issued, contingent consideration, and liabilities assumed in acquisition of companies

99,958

Non-GAAP Monetary Measures

Along with our monetary outcomes decided in accordance with U.S. GAAP, we current Adjusted EBITDA (as outlined beneath), a non-GAAP monetary measure. We use Adjusted EBITDA to guage our ongoing operations and for inside planning and forecasting functions. We consider that Adjusted EBITDA, when taken along with the corresponding U.S. GAAP monetary measure, gives significant supplemental data relating to our efficiency by excluding sure objects that is probably not indicative of our enterprise, outcomes of operations, or outlook. We think about Adjusted EBITDA to be an vital measure as a result of it helps illustrate underlying tendencies in our enterprise and our historic working efficiency on a extra constant foundation. We consider that using Adjusted EBITDA is useful to our buyers as it’s a metric utilized by administration in assessing the well being of our enterprise and our working efficiency.

Nonetheless, non-GAAP monetary data is introduced for supplemental informational functions solely, has limitations as an analytical software, and shouldn’t be thought-about in isolation or as an alternative choice to monetary data introduced in accordance with U.S. GAAP. As well as, different corporations, together with corporations in our trade, could calculate similarly-titled non-GAAP monetary measures otherwise or could use different measures to guage their efficiency, all of which may scale back the usefulness of Adjusted EBITDA as a software for comparability. A reconciliation is offered beneath for Adjusted EBITDA to internet loss, essentially the most straight comparable monetary measure acknowledged in accordance with U.S. GAAP. Traders are inspired to overview internet loss and the reconciliation of Adjusted EBITDA to internet loss, and to not depend on any single monetary measure to guage our enterprise.

Adjusted EBITDA is a key efficiency measure that our administration makes use of to evaluate our working efficiency. As a result of Adjusted EBITDA facilitates inside comparisons of our historic working efficiency on a extra constant foundation, we use this measure for enterprise planning functions. Adjusted EBITDA is outlined as internet loss earlier than depreciation and amortization, (profit) provision for earnings taxes, curiosity earnings, curiosity expense, amortization of debt issuance prices, stock-based compensation, change in truthful worth of liabilities, one-time bonuses and warrant expense in reference to the mixture of Hims, Inc. (“Hims”) and Oaktree Acquisition Corp. (“OAC”), with Hims persevering with because the surviving entity and as a wholly-owned subsidiary of OAC, which modified its title to Hims & Hers Well being, Inc. (the “Merger”), and acquisition-related prices, which embody skilled providers and consideration paid for worker fairness with vesting necessities incurred straight because of acquisitions.

Among the limitations of Adjusted EBITDA embody (i) Adjusted EBITDA doesn’t correctly mirror capital commitments to be paid sooner or later, and (ii) though depreciation and amortization are non-cash expenses, the underlying property could should be changed and Adjusted EBITDA doesn’t mirror these capital expenditures. In evaluating Adjusted EBITDA, you need to be conscious that sooner or later we are going to incur bills much like the changes on this presentation. Our presentation of Adjusted EBITDA shouldn’t be construed as an inference that our future outcomes can be unaffected by these bills or any uncommon or non-recurring objects. We compensate for these limitations by offering particular data relating to the U.S. GAAP objects excluded from Adjusted EBITDA. When evaluating our efficiency, you must think about Adjusted EBITDA along with, and never an alternative choice to, different monetary efficiency measures, together with our internet loss and different U.S. GAAP outcomes.

Internet Loss to Adjusted EBITDA Reconciliation

(In 1000’s, Unaudited)

Three Months Ended

December 31,

Yr Ended

December 31,

2021

2020

2021

2020

Internet loss

$

(31,161

)

$

(5,229

)

$

(107,659

)

$

(18,114

)

Depreciation and amortization

1,630

365

4,075

1,057

(Profit) provision for earnings taxes

(87

)

24

(3,136

)

127

Curiosity earnings

(92

)

(50

)

(390

)

(448

)

Curiosity expense

10

Amortization of debt issuance prices

71

144

322

Inventory-based compensation

11,952

1,088

67,211

5,831

Change in truthful worth of liabilities

9,808

624

(3,802

)

3,101

Merger bonuses

5,219

Warrant expense in reference to Merger

154

Acquisition-related prices

891

8,105

Adjusted EBITDA

$

(7,059

)

$

(3,107

)

$

(30,079

)

$

(8,114

)

View supply model on businesswire.com: https://www.businesswire.com/information/house/20220222005980/en/

Contacts

Investor Relations
Jay Spitzer
+1 (415) 598-0718
[email protected]

Media Relations
[email protected]

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