Hims & Hers stock surges on higher revenue, GLP-1 generic reveal

Hims & Hers Health, a direct-to-consumer virtual care company, experienced a significant revenue growth of 77% from $226.7 million in the third quarter of 2023 to $401.6 million in the third quarter of 2024. The San Francisco-based company also reported a notable shift in its financial performance, achieving a net income of $75.6 million in Q3 2024, compared to a net loss of $7.6 million during the same period the previous year. This turnaround is largely credited to a $60.8 million tax benefit associated with the release of a tax valuation allowance.

The company’s adjusted EBITDA rose substantially to $51.1 million in Q3 2024, up from $12.3 million in the third quarter of the last year. Free cash flow similarly increased to $79.4 million in Q3 2024, compared to $19.3 million in Q3 2023. Additionally, net cash provided by operating activities totaled $85.3 million in the third quarter of 2024, improving from $25.2 million in the same quarter of 2023.

Hims & Hers Health has revised its full-year 2024 revenue forecast, now expecting it to fall within the range of $1.46 billion to $1.465 billion. It also adjusted its EBITDA guidance to between $173 million and $178 million, equating to a margin of approximately 12%.

Yemi Okupe, the Chief Financial Officer of Hims & Hers Health, emphasized the company's rapid scaling, which is driving top-line growth, profitability, and strong cash flow. Okupe highlighted that the new weight loss initiative is gaining traction, enhancing an already strong growth trajectory. He noted that subscriber growth, excluding the contributions from compounded GLP-1 solutions, increased by 40% year-over-year, driven by improved brand awareness, expanded personalization efforts, and new customers seeking treatment for multiple conditions.

Following the announcement, Hims & Hers Health's stock saw a positive reaction, rising by as much as 12% in premarket trading. Currently, the stock is trading on the New York Stock Exchange (NYSE: HIMS) at approximately $21.50 per share.

In addition to its financial achievements, Hims & Hers Health revealed plans to introduce a generic version of Novo Nordisk's GLP-1 diabetes drug liraglutide on its platform in 2025. Liraglutide, known by the brand name Victoza, is used for treating type 2 diabetes and belongs to the GLP-1 agonists category, which aids in weight loss by suppressing appetite and controlling blood sugar levels. The company has confirmed a core supplier for liraglutide and anticipates completing test and batch validation, as well as certificates of analysis, over the forthcoming months.