Direct-to-consumer virtual care company Hims & Hers Health reported a 77% year-over-year increase in revenue from $226.7 million in the third quarter of 2023 to $401.6 million in Q3 2024.
The San Francisco-based company reported a net income for the third quarter of $75.6 million compared to a net loss of $7.6 million in the same period last year. It attributes the net income in Q3 to a $60.8 million tax benefit pertaining to the release of a tax valuation allowance.
Adjusted EBITDA was $51.1 million for Q3 2024 compared to $12.3 million for the third quarter last year, and free cash flow was $79.4 million in Q3 2024 compared to $19.3 million in Q3 2023.
Net cash provided by operating activities in the third quarter of this year was $85.3 million compared to 425.2 million for the same period last year.
The company raised its full-year 2024 revenue guidance to range between $1.46 billion to $1.465 billion and its adjusted EBITDA to $173 million to $178 million, a margin of 12%.
“Our model is rapidly gaining scale, driving accelerating top-line growth, improving profitability and strong cash flow. We are seeing this strength across our business. Our new weight loss offering is helping a growing number of people and providing an accelerant to what was already a robust trajectory,” Yemi Okupe, chief financial officer of Hims & Hers Health, said in a statement.
“These strong underlying trends continued as subscriber growth excluding contributions from our compounded GLP-1 solutions increased 40% year-over-year, benefiting from improving brand awareness, broader personalization initiatives, and new customers accessing care for multiple conditions.”
THE LARGER TREND
Hims & Hers stock rallied after hours on Monday, gaining as much as 12% in premarket trading.
Its stock is currently trading on the New York Stock Exchange (NYSE: HIMS) at around $21.50 per share.
The company also announced plans to launch a generic version of Novo Nordisk’s GLP-1 diabetes drug liraglutide on its platform in 2025.
Liraglutide, brand name Victoza, is used to treat type 2 diabetes and is part of the GLP-1 agonists category, which can help with weight loss by curbing one’s appetite and controlling blood sugar.
According to Reuters, the company has already confirmed a core supplier and expects to finish completing test and batch validation and certificates of analysis over the next few months.
