Hims & Hers Well being, Inc. Experiences First Quarter 2021 Monetary Outcomes


SAN FRANCISCO–()–Hims & Hers Well being, Inc. (“Hims & Hers”, NYSE: HIMS), a multi-specialty telehealth platform that connects shoppers to licensed healthcare professionals, as we speak reported monetary outcomes for the primary quarter ending March 31, 2021.

“Constructing on our momentum from final 12 months, Hims & Hers kicked off 2021 with a really sturdy first quarter, delivering sturdy income development of 74%, gross revenue development of 95%, and ending the quarter with 391,000 subscriptions on our platform, up practically 80% year-over-year,” stated Andrew Dudum, CEO and co-founder of Hims & Hers. “We made important headway on our mission of constructing the best high quality, personalised healthcare accessible to everybody, and we continued to set ourselves aside within the trade with our unified and totally verticalized entrance door to care.”

Mr. Dudum continued, “It’s our distinctive potential to anticipate what’s subsequent, to fulfill our goal shoppers the place they’re, and to ship a wonderful, digital expertise that retains us on the forefront of the transformation of healthcare.”

Key Enterprise Metrics

(In Hundreds, Besides AOV)

 

Three Months Ended

 

March 31, 2021

 

December 31, 2020

 

September 30, 2020

 

June 30, 2020

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

AOV

$

74

 

 

$

69

 

 

$

67

 

 

$

58

 

 

$

52

 

Internet Orders

687

 

 

579

 

 

582

 

 

572

 

 

546

 

Income

(In Hundreds, Unaudited)

 

Three Months Ended

 

March 31, 2021

 

December 31, 2020

 

September 30, 2020

 

June 30, 2020

 

March 31, 2020

 

 

 

 

 

 

 

 

 

 

On-line Income

$

50,680

 

 

$

40,091

 

 

$

38,829

 

 

$

33,284

 

 

$

28,524

 

Wholesale Income

1,634

 

 

1,375

 

 

2,495

 

 

2,620

 

 

1,539

 

Whole income

$

52,314

 

 

$

41,466

 

 

$

41,324

 

 

$

35,904

 

 

$

30,063

 

Whole income year-over-year development

74

%

 

67

%

 

91

%

 

76

%

 

91

%

  • Income was $52.Three million for the primary quarter 2021 in comparison with $30.1 million for the primary quarter 2020, a rise of 74% year-over-year.
  • Internet loss was $(51.4) million for the primary quarter 2021 in comparison with $(6.0) million for the primary quarter 2020. The year-over-year improve in internet loss was primarily pushed by one-time stock-based compensation and transaction bonus bills associated to the merger with Oaktree Acquisition Corp.
  • Gross margin was 77% for the primary quarter 2021 in comparison with 69% for the primary quarter 2020.
  • Adjusted EBITDA was $(8.6) million for the primary quarter 2021 in comparison with $(4.6) million for the primary quarter 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 US (“U.S. GAAP”), has been offered on this press launch within the accompanying tables. Extra details about Adjusted EBITDA can also be included under below the heading “Non-GAAP Monetary Measures”.

Monetary Outlook

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

For the second quarter 2021, we anticipate:

  • Income to be within the vary of $55 million to $57 million.
  • Adjusted EBITDA to be within the vary of $(10) million to $(12) million.

For the complete 12 months 2021, we anticipate:

  • Income to be within the vary of $221 million to $227 million.
  • Adjusted EBITDA to be within the vary of $(35) million to $(45) million.

The steering offered above constitutes forward-looking statements and precise outcomes might differ materially. Discuss with the “Cautionary Observe Concerning Ahead-Wanting Statements” protected harbor part under for data on the components that might trigger our precise outcomes to vary materially from these forward-looking statements.

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

Convention Name

Hims & Hers will host a convention name to evaluation the primary quarter 2021 outcomes on Might 18, 2021, at 2:00 p.m. PT. The convention name may be accessed by dialing (833) 900-2256 for U.S. members and (236) 714-2727 for worldwide members, and referencing convention ID #8982901. A stay audio webcast will likely be out there on-line at https://investors.forhims.com/. A replay of the decision will likely be out there through webcast for on-demand listening shortly after the completion of the decision on the identical hyperlink.

About Hims & Hers Well being, Inc.

Hims & Hers is a multi-specialty telehealth platform that connects shoppers to licensed healthcare professionals, enabling them to entry high-quality medical look after quite a few circumstances associated to main care, psychological well being, sexual well being, dermatology, and extra. Launched in November 2017, the corporate additionally provides thoughtfully created and curated well being and wellness merchandise. With services and products out there throughout all 50 states and Washington, D.C., Hims & Hers is ready to present entry to high quality, handy and inexpensive look after all People. Hims & Hers was based by CEO Andrew Dudum, Hilary Coles, Jack Abraham and Joe Spector at enterprise studio Atomic in San Francisco, California. For extra details about Hims & Hers, please go to forhims.com and forhers.com.

Cautionary Observe Concerning Ahead-Wanting Statements

This press launch consists of forward-looking statements throughout the which means of Part 27A of the Securities Act of 1933, as amended and Part 21E of the Securities Trade Act of 1934, as amended. These forward-looking statements may be recognized by means of forward-looking terminology, together with the phrases “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “might,” “will,” “potential,” “initiatives,” “predicts,” “proceed,” or “ought to,” or, in every case, their destructive or different variations or comparable terminology. There may be no assurance that precise outcomes is not going to materially differ from expectations. Such statements embody, however should not restricted to, any statements referring to our monetary outlook and steering, monetary and enterprise efficiency, the underlying assumptions, and statements about occasions and developments together with occasions and developments that we consider might have an effect on our monetary situation, outcomes of operations, short- and long-term enterprise operations and aims, and monetary wants, market acceptance and success of our enterprise mannequin, our potential to increase the scope of our choices, and our potential to adjust to the intensive, complicated and evolving regulatory necessities relevant to the healthcare trade. These statements are primarily based on administration’s present expectations, however precise outcomes might differ materially because of varied components.

The forward-looking statements contained on this press launch are primarily based on our present expectations and beliefs regarding future developments and their potential results on us. Future developments affecting us will not be those who we have now anticipated. These forward-looking statements contain plenty of dangers, uncertainties (a few of that are past our management) and different assumptions which 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 should not restricted to, these components described within the “Danger Components” part of our most just lately filed Annual Report on Kind 10-Okay for the 12 months ended December 31, 2020, as amended, and our subsequent filings with the Securities and Trade 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 might differ 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 depend upon circumstances which will or might not happen sooner or later. We warning you that forward-looking statements should not ensures of future efficiency and that our precise outcomes of operations, monetary situation and liquidity, and developments within the trade through which we function might differ materially from these made in or recommended by the forward-looking statements contained in experiences we have now filed or will file with the Fee, together with our annual report on Kind 10-Okay for the 12 months ended December 31, 2020, as amended 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 through which we function are per the forward-looking statements contained in such experiences, these outcomes or developments will not be indicative of outcomes or developments in subsequent intervals.

Key Enterprise Metrics

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

“Internet Orders” are outlined because the variety of on-line buyer orders minus transactions associated to refunds, credit, chargebacks, and different destructive 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 and products on our platform, internet of refunds, credit, chargebacks and consists of income recognition changes recorded pursuant to U.S. GAAP, primarily referring to deferred income and returns reserve.

“Wholesale Income” represents non-prescription product gross sales to retailers by wholesale buying agreements.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Hundreds, Besides Share and Per Share Knowledge)

 

 

March 31,

2021

 

December 31,

2020

 

(Unaudited)

 

 

Property

 

 

 

Present belongings:

 

 

 

Money and money equivalents

$

88,169

 

 

$

27,344

 

Quick-term investments

235,097

 

 

72,864

 

Stock

4,523

 

 

3,543

 

Pay as you go bills and different present belongings

12,407

 

 

5,404

 

Deferred transaction prices

 

 

3,929

Whole present belongings

340,196

 

 

113,084

 

Restricted money, noncurrent

856

 

 

1,006

Different long-term belongings

4,848

 

 

4,607

 

Whole belongings

$

345,900

 

 

$

118,697

 

 

 

 

 

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

 

 

 

Present liabilities:

 

 

 

Accounts payable

$

13,233

 

 

$

8,066

 

Accrued liabilities

5,823

 

 

4,984

 

Deferred income

624

 

 

1,272

Warrant liabilities

 

906

 

Whole present liabilities

19,680

 

 

15,228

 

Warrant liabilities

33,370

 

Deferred hire, noncurrent

384

 

381

Whole liabilities

53,434

 

 

15,609

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Mezzanine fairness:

 

 

 

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

 

249,962

 

Whole 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 approved and 182,973,780 and 46,025,754 shares issued and excellent as of March 31, 2021 and December 31, 2020, respectively; Class V shares, par worth $0.0001, 10,000,000 shares approved and eight,377,623 shares issued, and excellent as of March 31, 2021; Class F shares, par worth $0.0001, 6,941,352 shares approved, issued, and excellent as of December 31, 2020

18

 

Extra paid-in capital

515,216

 

 

24,429

 

Collected different complete loss

(72)

 

 

(11)

Collected deficit

(222,696)

 

 

(171,292)

 

Whole stockholders’ fairness (deficit)

292,466

 

 

(146,874)

 

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

$

345,900

 

 

$

118,697

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In Hundreds, Besides Share and Per Share Knowledge, Unaudited)

 

 

Three Months Ended

March 31,

 

2021

 

2020

 

 

 

 

Income

$

52,314

 

$

30,063

 

Price of income

12,067

 

9,444

 

Gross revenue

40,247

 

20,619

 

Gross margin %

77

%

69

%

 

 

 

Working bills:(1)

 

 

Advertising and marketing

26,958

 

12,773

 

Promoting, basic, and administrative

61,698

 

14,064

 

Whole working bills

88,656

 

26,837

 

Loss from operations

(48,409)

 

(6,218)

 

 

 

 

Different earnings (expense):

 

 

Curiosity expense

 

(10)

 

Different (expense) earnings, internet

(2,905)

 

230

 

Loss earlier than provision for earnings taxes

(51,314)

 

(5,998)

 

Provision for earnings taxes

(90)

 

(35)

 

Internet loss

(51,404)

 

(6,033)

 

Different complete loss

(61)

 

(42)

 

Whole complete loss

$

(51,465)

 

$

(6,075)

 

 

 

 

Internet loss per share attributable to widespread stockholders:

 

 

Fundamental and diluted

$

(0.34)

 

$

(0.17)

 

Weighted common shares excellent:

 

 

Fundamental and diluted

153,080,538

34,610,061

______________

(1)

Consists of stock-based compensation expense as follows (in 1000’s):

 

Three Months Ended

March 31,

 

2021

2020

Advertising and marketing

$

1,846

 

$

291

 

Promoting, basic, and administrative

32,384

 

1,113

 

Whole stock-based compensation expense

$

34,230

 

$

1,404

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Hundreds, Unaudited)

 

 

Three Months Ended

March 31,

 

2021

 

2020

Working actions

 

 

 

Internet loss

$

(51,404)

 

 

$

(6,033)

 

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

 

 

 

Depreciation and amortization

394

 

 

180

 

Inventory-based compensation

34,230

 

 

1,404

 

Change in honest worth of warrant liabilities

2,681

 

 

(71)

 

Warrant expense in reference to Merger

154

 

 

 

Amortization of debt issuance prices

144

 

 

84

 

Noncash different

452

 

 

(16)

 

Modifications in working belongings and liabilities:

 

 

 

Stock

(980)

 

 

(2,000)

 

Pay as you go bills and different present belongings

(7,147)

 

 

(471)

 

Different long-term belongings

(58)

 

 

733

 

Accounts payable

5,117

 

 

674

 

Accrued liabilities

1,114

 

 

199

 

Deferred income

(648)

 

 

126

 

Deferred hire

3

 

 

 

Internet money utilized in working actions

(15,948)

 

 

(5,191)

 

 

 

 

 

Investing actions

 

 

 

Purchases of investments

(172,021)

 

 

(17,642)

 

Maturities of investments

9,500

 

 

19,200

 

Proceeds from gross sales of investments

 

 

6,400

 

Funding in web site improvement and internal-use software program

(740)

 

 

(452)

 

Purchases of property, tools, and intangible belongings

(63)

 

 

(273)

 

Internet money (utilized in)/offered by investing actions

(163,324)

 

 

7,233

 

 

 

 

 

Financing actions

 

 

 

Proceeds from issuance of redeemable convertible most popular inventory

 

 

31,600

 

Funds for issuance prices of convertible most popular inventory

 

 

(89)

 

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

(12,794)

 

 

 

Compensation of promissory notes related to vested and unvested shares

1,193

 

 

 

Proceeds from train of Class A standard inventory warrants

807

 

 

 

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

80

 

 

(18)

 

Repayments of principal on time period mortgage

 

 

(1,158)

 

Internet money offered by financing actions

239,945

 

 

30,335

 

International foreign money impact on money and money equivalents

2

 

 

(9)

 

Enhance in money, money equivalents, and restricted money

60,675

 

 

32,368

 

Money, money equivalents, and restricted money at starting of the 12 months

28,350

 

 

22,797

 

Money, money equivalents, and restricted money at finish of the three-month interval

$

89,025

 

 

$

55,165

 

 

 

 

 

Supplemental disclosures of money circulate data

 

 

 

Money paid for taxes

$

59

 

 

$

69

 

Money paid for curiosity

$

 

 

$

8

 

Noncash investing and financing actions

 

 

 

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

 

 

$

 

Train of Non-public Placement Warrants and Public Warrants

$

20,871

 

 

$

 

Reclassification of deferred transaction prices

$

3,929

 

 

$

 

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

$

1,160

 

 

$

 

Change in transaction prices payable

$

511

 

 

$

 

Vesting of early exercised inventory choices

$

54

 

 

$

11

 

Expiration of Class A standard inventory redemption proper

$

 

 

$

4,500

 

Non-GAAP Monetary Measures:

Along with our monetary outcomes decided in accordance with U.S. GAAP, we current Adjusted EBITDA, a non-GAAP monetary measure. We use Adjusted EBITDA to guage our ongoing operations and for inner 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 gadgets that will not be indicative of our enterprise, outcomes of operations, or outlook. We think about Adjusted EBITDA to be an essential measure as a result of it helps illustrate underlying developments in our enterprise and our historic working efficiency on a extra constant foundation. We consider that the usage of 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 device and shouldn’t be thought-about in isolation or as an alternative to monetary data introduced in accordance with U.S. GAAP. As well as, different corporations, together with corporations in our trade, might calculate equally titled non-GAAP monetary measures in another way or might use different measures to guage their efficiency, all of which might cut back the usefulness of our non-GAAP monetary measures as instruments for comparability. A reconciliation is offered under for Adjusted EBITDA to internet loss, essentially the most straight comparable monetary measure said in accordance with U.S. GAAP. Traders are inspired to evaluation 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 inner 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, provision for earnings taxes, curiosity earnings, curiosity expense, amortization of debt issuance prices, stock-based compensation, change in honest worth of warrant legal responsibility, and one-time Merger bonuses and warrant expense.

 

Internet Loss to Adjusted EBITDA Reconciliation

(In Hundreds, Unaudited)

 

 

Three Months Ended

March 31,

 

2021

 

2020

 

 

 

 

Internet loss

$

(51,404)

$

(6,033)

Depreciation and amortization

394

180

Provision for earnings taxes

90

35

Curiosity earnings

(82)

 

(242)

 

Curiosity expense

10

Amortization of debt issuance prices

144

84

Inventory-based compensation

34,230

 

1,404

 

Change in honest worth of warrant legal responsibility

2,681

 

(71)

 

Merger bonuses

5,219

 

 

Warrant expense in reference to Merger

154

 

 

Adjusted EBITDA

$

(8,574)

$

(4,633)

 

 

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