Hims & Hers Health reported a remarkable fourth-quarter performance that surpassed analysts' expectations, showcasing significant growth and expansion. The telehealth company, renowned for its diverse range of treatments, revealed a 95% increase in revenue from the previous year's $246.6 million to a staggering $481 million. This figure exceeded the anticipated $470 million by LSEG, underscoring the company's growing market presence.
The company's gross margin stood at 77%, slightly below the 78.4% expected by analysts polled by StreetAccount. Despite this minor shortfall, Hims & Hers Health reported adjusted earnings of $54.1 million, aligning perfectly with analyst estimates. Net income also saw a significant rise, climbing to $26.01 million, or 11 cents per share, compared to $1.25 million, or 1 cent per share, a year earlier. These earnings per share figures surpassed LSEG's forecast of 10 cents.
Hims & Hers Health provides treatments for various health concerns, including skin care, mental health, sexual health, and hair care. In May, the company expanded its offerings by prescribing compounded semaglutide, the active ingredient in Novo Nordisk's GLP-1 medications Ozempic and Wegovy. Excluding its GLP-1 offerings, the company's revenue rose by 43% to $1.2 billion for the full year, meeting its previous 2025 revenue target a year ahead of schedule.
Yemi Okupe, a spokesperson for the company, attributed this success to their commitment to accessible care.
"The success we are experiencing is a direct reflection of our improving ability to democratize access to high quality, personalized care across each of our specialties," – Yemi Okupe
Looking ahead, Hims & Hers Health anticipates reporting revenue between $520 million and $540 million for the first quarter, surpassing analysts' expectations of $497 million. The company's stock has experienced a remarkable surge, climbing about 200% over the year.
The company plans to host its quarterly call with investors at 5:00 p.m. ET, where further insights into its strategic growth and future plans are expected to be discussed.