Hims & Hers Health (HIMS +2.64%) stock tumbled 12% through 11:15 a.m. ET Tuesday after missing badly on Q1 earnings last night.
Heading into the report, analysts forecast the telehealth company, made famous for selling discount GLP-1 weight loss drugs (and getting sued repeatedly for it), would earn a tiny $0.01 per share profit on sales of $616.5 million. In fact, Hims & Hers lost $0.40 per share, and revenue was only $608 million.
Image source: Getty Images.
Hims & Hers Q1 earnings
Sales grew only 4% in the quarter, despite subscriber growth of 9%. (Which is to say, this may be a story of more consumers spending less money at Hims & Hers.)
Accentuating the positive, though, CEO Andrew Dudum insisted Hims & Hers is "not just growing, we're pulling away from the field on our path to becoming the world's largest consumer health platform." More than just adding customers, Hims & Hers is entering new markets, expanding into new drug categories, and focusing on "comprehensive diagnostics" to help differentiate itself as a provider of personalized healthcare.
At the same time, it's not abandoning the GLP-1 market at all. Rather than risk more lawsuits, Hims & Hers is focusing on reselling branded GLP-1 products from the major manufacturers, including Eli Lilly's (LLY 0.34%) Mounjaro and Zepbound and Novo Nordisk's (NVO 2.71%) Wegovy and Ozempic.
NYSE: HIMS
Key Data Points
What's next for Hims & Hers stock?
Turning to guidance, Hims & Hers expects all these efforts to pay off in the form of faster sales growth, projecting $2.8 billion to $3 billion by the end of this year and $6.5 billion in 2030 sales.
GAAP profits remain elusive, but Hims & Hers generated positive free cash flow of $53 million in the quarter -- putting it on course to generate perhaps $200 million this year.
