Hims & Hers gives weak outlook but says more collaborations are coming

Shares of Hims & Hers Health fell in extended trading on Monday after the company reported first-quarter earnings that beat analysts’ expectations but offered weaker-than-expected guidance.

Here’s how the company did based on average analysts’ estimates compiled by LSEG:

• Earnings per share: 20 cents vs. 12 cents
• Revenue: $586 million vs. $538 million

Revenue at the telehealth company increased 111% in the first quarter from $278.2 million during the same period last year, according to a release. Hims & Hers reported a net income of $49.5 million, or 20 cents per share, compared to $11.1 million, or 5 cents per share, during the same period a year earlier.

For its second quarter, Hims & Hers said it expected to report revenue between $530 million and $550 million, short of the $564.6 million expected by analysts polled by StreetAccount. The company said its adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, for the quarter will be between the range of $65 million and $75 million, while StreetAccount analysts were expecting $70.4 million.

Hims & Hers’ stock has had a turbulent start to the year, notching several double-digit moves over the past few months. On April 29, shares rocketed up 20% after Novo Nordisk said it would offer its weight loss drug Wegovy through telehealth providers such as Hims & Hers.

The company said Monday that more collaborations are coming.

“Over time, we expect wider collaboration across the industry, inclusive of pharmaceutical players, innovative leaders in diagnostic and preventative testing, and world class providers,” Hims & Hers CEO Andrew Dudum said in the release. “We believe this will strengthen our ecosystem and position us to curate a best-in-class offering that can reach tens of millions of people.” 

Hims & Hers reported adjusted EBITDA of $91.1 million for its first quarter, up from $32.3 million last year and above the $61.3 million expected by StreetAccount.

Earlier on Monday, Hims & Hers announced Nader Kabbani will join the company as its chief operations officer. Kabbani spent nearly 20 years at Amazon, where he oversaw the launch of Amazon Pharmacy, the company’s acquisition of PillPack and its global Covid-19 Vaccination Task Force. 

Hims & Hers will hold its quarterly call with investors at 5:00 p.m. ET.