Hims & Hers Health, Inc. (HIMS Quick QuoteHIMS - Free Report) delivered an earnings per share (EPS) of 11 cents in fourth-quarter 2024, compared with the year-ago period’s EPS of a penny. However, the metric missed the Zacks Consensus Estimate by a penny.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Full-year 2024 EPS was 53 cents against the comparable year-ago period’s loss of 11 cents per share. However, the metric lagged the Zacks Consensus Estimate by 3.6%.

HIMS’ Revenues in Detail

Hims & Hers registered revenues of $481.1 million in the fourth quarter, up 95.1% year over year. The figure beat the Zacks Consensus Estimate by 2.1%.

Solid revenues from both Online and Wholesale channels drove the top line.

Full-year 2024 revenues were $1.48 billion, reflecting a 69.3% increase from the comparable 2023 figure. The metric beat the Zacks Consensus Estimate by 0.7%.

Shares of this company lost nearly 18.5% in today’s pre-market trading.

Hims & Hers’ Segment Details

Hims & Hers’ operations consist of two channels — Online Revenues and Wholesale Revenues.

In the quarter under review, Online Revenues of $470.8 million reflected an increase of 98.3% year over year on a reported basis.

During the reported quarter, subscribers were 2.2 million (up 45% year over year).

Monthly online revenue per average subscriber increased 37.7% year over year to $73 for the fourth quarter, primarily resulting from scaling of GLP-1s and subscribers shifting to more premium personalized offerings.

As a result of growth in subscribers, Hims & Hers generated 2.8 million net orders for the reported quarter (up 22.1% year over year). For the fourth quarter of 2024, average order value (AOV) was $168 (up 63.1% year over year).

Wholesale Revenues totaled $10.4 million, up 12.1% year over year.

HIMS’ Margin Analysis

In the fourth quarter, Hims & Hers’ gross profit increased 81.1% to $369.5 million. However, the gross margin contracted 594 basis points to 76.8%.

Marketing expenses jumped 75.6% year over year to $221.1 million, while technology and development expenses increased 77.2% year over year to $23.7 million. General and administrative expenses rose 48.6% year over year to $48 million, while operations and support expenses increased 76.9% year over year to $58.1 million. Operating expenses of $350.9 million increased 71.6% year over year.

Operating profit totaled $18.6 million against the prior-year quarter’s operating loss of $0.4 million.

Hims & Hers’ Financial Position

Hims & Hers exited 2024 with cash and cash equivalents and short-term investments of $300.3 million compared with $220.9 million at 2023-end.

Cumulative net cash provided by operating activities at the end of 2024 was $251.1 million compared with $73.5 million a year ago.

HIMS’ Outlook

Hims & Hers has provided its revenue outlook for the first quarter and initiated the same for 2025.

The company projects revenues for the first quarter of 2025 in the range of $520 million to $540 million, reflecting an uptick of 87-94% year over year. The Zacks Consensus Estimate is pegged at $497.8 million.

For the full year, the company projects revenues in the range of $2.3 billion to $2.4 billion (representing growth of 56-63% from 2024 levels). The Zacks Consensus Estimate is pegged at $2.07 billion.

Our Take

Hims & Hers exited the fourth quarter of 2024 with better-than-expected revenues. The robust improvement in the top and bottom lines was impressive. Strength in both Online and Wholesale revenue channels was promising. The increase in subscribers, monthly online revenue per average subscriber, AOV and net orders during the quarter was encouraging.

In February, HIMS acquired a U.S.-based peptide facility based in California, which will likely enable it to strengthen the long-term durability of its domestic supply chain to meet the growing demand from Americans for personalized healthcare and treatment options. The same month, the company announced its plans to introduce at-home lab testing through its platform. Hims & Hers has acquired an at-home lab testing facility, Sigmund NJ LLC, marketed as Trybe Labs, which will likely allow it to support at-home blood draws and more comprehensive whole-body testing. These raise our optimism about the stock.

However, the quarter's lower-than-expected earnings were disappointing. The gross margin contracted due to rising product costs, which do not bode well for the stock.

Hims & Hers’ Zacks Rank and Key Picks

HIMS currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Cardinal Health, Inc. (CAH Quick QuoteCAH - Free Report) , ResMed Inc. (RMD Quick QuoteRMD - Free Report) and Boston Scientific Corporation (BSX Quick QuoteBSX - Free Report) .

Cardinal Health, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2025 adjusted EPS of $1.93, beating the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion outpaced the consensus mark by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health has a long-term estimated growth rate of 10.7%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, beating the Zacks Consensus Estimate by 5.7%. Revenues of $1.28 billion surpassed the Zacks Consensus Estimate by 1.6%. It currently carries a Zacks Rank #2.

ResMed has a long-term estimated growth rate of 16%. RMD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Boston Scientific reported fourth-quarter 2024 adjusted EPS of 70 cents, beating the Zacks Consensus Estimate by 7.7%. Revenues of $4.56 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.