Q1 2022 Hims & Hers Health Inc Earnings Call
Weeks, our mobile platform is already showing signs of increased customer stickiness improved engagement retention cross sale into organic adoption.
We remain ruthlessly focused on investing in this platform and believe our team's ability to build true consumer experiences customers, who love and organically adopt to be a unique differentiator in the traditional health care landscape. In addition to deep investments in technology and platform, we focused a great deal this quarter on broadening awareness.
This is a key strategic asset our brand.
We believe our brand is one of the most important long term differentiators in this past quarter. It delivered meaningful tailwind as we continued to focus on our Omnichannel presence at my core lines of belief that deep customer awareness and trust will accelerate organic adoption rates allow us to continue to scale affordably and becoming.
Less dependent over the years on incremental marketing investments.
This quarter, we saw exactly those benefits play out as our substantial top line beat and subscriber growth coupled with maintained efficiency and robust organic adoption.
This quarter, we announced a partnership with Walmart one of the leading retailers in the nation and began to see rollout across nearly 1900 store locations.
<unk> now over 20000 retail locations Kimpton hers is becoming synonymous with health and wellness.
Our brand has seen and experienced by millions of People's daily helping to deepen our relationship with prospective customers and drive unique long term flywheel dynamics.
In addition to expansion on retail shelves, we also broadened our provider and educational partnerships deepening the value added services for our members. These partnerships included carbon health, which expands our California retail clinic footprint for higher acuity patient cases, as well as good path.
<unk> provider of educational and medical content for conditions related to MSA issues pain management insomnia GERD in Ibs D.
These partnerships accelerate our ability to deepen our relationship with customers by strengthening the breadth and comprehensive nature of our platform.
This business was founded to solve what I believe to be one of the largest challenges this country faces.
Access to affordable and excellent health care.
As prices continue to soar in the traditional health care system and as axis convenience and choice continue to remain limited we believe that more customers will only increase their demand for alternative solutions.
This wave is growing and we see it in our business and our metrics weekly.
Growth has been stronger than at any point pre and during COVID-19.
Hunting towards the structural change in customer expectations.
Seamlessness of our offering our breadth of value added services and our trusted brand are resonating deeply with new and existing customers driving unique flywheel dynamics, Unlike anything I've seen.
It is an exciting year for him and her as our mission to empower us all to live healthier happier lives. It is more relevant and more attainable than ever before and now I will pass the call to <unk> to further discuss last quarter's performance.
Thanks, Andrew.
I will now take the time to walk through our first quarter results as well as provide further insight into our outlook for the second quarter and the remainder of the year. The first quarter of 2022 marks another quarter of outstanding performance in the first quarter that we surpassed $100 million of revenue.
Revenue was $101 $3 million, which reflects a year over year increase of 94%.
We've achieved a level of scale and growth that has enabled us to start realizing benefits from economies of scale provides the flexibility to establish the next wave of protocols that will drive continued long term growth.
The underlying factors that we saw in the back half of 2021 have continued to drive strong performance in early 2022.
Online revenue growth remained strong increasing 86% year over year to $94 1 million.
Wireline growth was driven by expansion of our subscription base, which grew 82% year over year to 710000.
Quarterly online revenue per subscription increased slightly year over year to $133.
There was a benefit this quarter from a 2 million dollar reduction in deferred revenue primarily related to orders placed in the fourth quarter of 2021 that shipped in the first quarter of 2022.
We continue to see our newer categories gain traction.
Publishing a strong foundation and these new categories provides us with greater flexibility to deliver increased value to our overall customer base opening the opportunity to foster longer and deeper relationships.
Solid growth in our wholesale channel continued with wholesale revenue, increasing 341% year over year to $7 2 million.
Demand for our products remains high with existing partners, such as target Walgreens and Cvs.
Additionally, we welcome new partners, such as Wal Mart, HEB and GNC they place their initial orders during this quarter.
As a reminder, we feel that our wholesale channel as a foundational role in helping drive consumer awareness and trust for our brands, which in turn provides benefits to our higher margin online business.
Gross margin was 74% a slight increase of the fourth quarter of last year.
We continue to closely monitor the macro economy for elements that may impact our supply chain our cost structure to date, we have not seen any material degradation in our margin structure and remain confident in our ability to continue to navigate through potential challenges.
Opportunities to increase efficiency across our operations provide the ability to offset potential pressure that may emerge the current trends change.
Two examples that we have observed thus far include the realization of lower product cost as a result of greater economies of scale and lower fulfillment costs from the utilization of our internal distribution facilities.
The share of online orders fulfilled through our internal fulfillment centers with over 50% in the first quarter.
We are excited to complete the build out of our new Arizona facility. Later this quarter and are confident will provide additional efficiency opportunities later this year.
Adjusted EBITDA loss for the quarter was $6 $1 million adjusted EBITDA margins improved 230 basis points quarter on quarter to negative 6%.
SG&A as a percentage of revenue declined five percentage points quarter over quarter to 43%.
When excluding stock based compensation SG&A as a percentage of revenue declined five percentage points quarter over quarter to 35%.
This reflects leverage that we continue to receive from initiatives driving our current growth trajectory.
Marketing as a percentage of revenue declined from 50% to 47% quarter over quarter.
When excluding stock based compensation marketing as a percentage of revenue increased from 45% to 47%.
Diversified online acquisition channels combined with our Omnichannel strategy have enabled us to hold customer acquisition cost per subscriber relatively steady quarter on quarter as we continue to see attractive payback periods and attractive customer acquisition costs. We have continued to reinvest a portion of efficiency gains and driving greater scale.
We felt this will benefit us in the long term as a result of strengthening our position across categories and realizing further benefits from economies of scale.
Several expected activity that took place this quarter that influenced our cash position.
Our cash flow from operations. This quarter was negative $19 4 million fair enough payout of $30 million related to prior M&A activity of about $7 million hit cash flow from operations or paid off this quarter.
Additionally, we prepaid our insurance for our directors and officers, which also negatively impacted cash flow from operations by $7 million.
A liability of $13 million related to the apostrophe earn out remains outstanding which will be paid in the fourth quarter.
These pay ups reflect the fact that our acquisitions have delivered against our strategic objectives, we exited the first quarter without any debt and a balance of $203 million of unrestricted cash and short term investments.
2022 is off to an incredible start.
We have observed several positive trends continue from last year, some of which include attractive payback periods of newly acquired customer cohorts, which remain at less than a year.
85% year over year online revenue retention from customers, who have maintain a subscription for at least two years strong interest from retailers providers other prospective partners.
<unk> operational efficiency gains with line of sight to additional future games.
And ability to maintain overall market inefficiency in a volatile environment and a healthy cash position that provides us the flexibility to invest in longer internationally.
We are increasing our topline revenue guidance for the full year to reflect these factors driven largely by strong execution across the organization.
Starting with our outlook for the second quarter.
We are anticipating revenue of between $103 million to $106 million, representing a year over year increase of between 70% to 75%.
We are expecting adjusted EBITDA losses of between negative $9 million to negative $7 million, which would reflect an adjusted EBIT margin of slightly below negative 8% at the midpoint of the adjusted EBITDA and revenue ranges.
For the full year, we are raising our prior revenue outlook of $365 million to $380 million to $410 million to $425 million or.
Our new guidance range represents an increase over 2021 revenue of 51% to 56%.
Our outlook for adjusted EBIT losses remains negative $30 million to negative $20 million, which represented an adjusted EBITDA margin of negative 6% at the midpoint of both ranges.
I'd like to take a moment to provide additional color on our assumptions across the year behind these results.
We expect to retain at least 85% of online revenue from customers that have been on the platform for at least two years.
Early signals from our App and the higher customer engagement, which we saw may facilitate higher retention over time.
We believe that we can maintain an overall payback period on our marketing investments of last night here.
Higher marketing and investment is expected in the second quarter as we start to scale emerging categories that have been pretty clear you're going to economic profiles.
We expect to gain leverage on our marketing investment as a percentage of revenue in the back half of the year.
This is the result of seeing the benefits from investments made in the second half of 2021, and the first half of 2022 compounds.
Lastly, we expect continued improvement to adjusted EBITDA margins in the back half of 2022, as we continue to gain operating leverage on our cost structure.
'twenty two is shaping up to be an exciting year for us.
We've seen success in our investments across each of our three foundational pillars.
Our brand, our technology and our ability to delight consumers with a seamless experience.
A few examples include early successful leading indicators related to engagement with our mobile app.
The launch of new partnerships that continue to power, our flywheel of increasing customer awareness and trust, which then in turn powers more interest from partners driving further consumer awareness and trust.
And lastly progress toward the rollout of our new Arizona fulfillment facility.
The previously mentioned examples enable us to continue to delight, our customer base, which we're confident will result in continued shrimp and topline revenue growth.
<unk>, we anticipate that these doctors when combined with our disciplined approach to growth and continued efficiency improvements will enable us to improve 2022, adjusted EBIT margins by 4% to six points relative to 2021.
I'd like to thank our customers partners and employees for helping US continue to deliver such strong results with that I will turn it over to the operator to begin the Q&A portion of the call.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Ask that you limit yourself to one question and one follow up thank you.
Your first question today comes from the line of Daniel <unk> with Citigroup. Your line is now open hi.
Guys. Thanks for taking my question and congrats on a strong quarter here.
I want to stick with that 2022 guidance for a second given the significant outperformance both on the top and bottom line this quarter.
And then the raise the guidance range on revenue.
Just want to dig into why Youre in Youre, keeping that adjusted EBITDA guidance constant how much conservatism is built in there I mean, I think you mentioned youre going to increase marketing expenses next quarter and then you should get some operating leverage after that.
But I'm curious on the marketing expenses, how much of that is due to a newer initiatives versus higher.
<unk> that youre seeing.
Segments like mental health and others that you are growing rapidly.
Sure Danielle Thanks, a lot for the question.
I think what I would say is we've actually seen cash remained relatively stable quarter on quarter relative to the prior quarter.
What we do see in terms of like the investments that we're making some of that is going towards the enhancement of newer categories that we do see as well as other investments I think for us.
We're spending a couple minutes around how we think around the allocation of capital as we make these decisions on whether or not to invest and where to invest.
But I think we see right now we do have line of sight to adjusted EBITDA profitability and so given this much of a focus is shifting toward how do we position ourselves in a strong in a strong manner for both.
Healthy long term economics, as well as long term sustainable growth and so when we think about how to deploy capital. We're not just looking at the revenue that's going to be delivering a profit quarter or even two quarters.
But really we basically zoom out and look at how the investments with perform across several criteria three of which being do they have the attractive or do they have an attractive ROI on our high profile payback period.
<unk> positioned the company well for long term growth and then lastly, they position us for healthy long term EBIT margin given that we do not have the ability to you.
Benefit from economies of scale with some of the internal fulfillment capabilities that we do have though we have seen thus far as many of the investments that we have in front of us have the ability to deliver across all of those things.
Additionally, helped us expand our category footprint.
So thats. Another reason why you don't see the EBITDA, we expect to continue to be able to seize opportunities to again power that long term long term growth profile as well position us for a healthy economic background.
Got it okay, and just to confirm that.
The increase in marketing expense isn't coming from an increase in mental health.
Sequentially.
No we've actually seen capture overall across the portfolio remain relatively stable is that truly is to power and position ourselves for long term growth and again, just the long term.
Yeah makes sense, Okay, and then just I'll just add.
I think I think the flywheel dynamic is a pretty unique element taking shape for us right.
<unk> channel presence, the retail distribution and partnerships I think that brand awareness that brand trust that is growing nationwide.
<unk>.
It's really providing the tailwind that we believed it would.
Which given the competitive landscape and market and I think a lot of the headwinds that people are facing in the social channels, whether that because of iOS or a dependency on Facebook or whatever it might be those are tail wins, we've been able to really meaningfully overcome and continue to deliver on and it really stable manner as Jimmy said, keeping <unk> relatively flat as we've expanded into these categories.
So I think that's something that we're very proud of it but very much focused on the brand and the distribution of those partnerships is a big part of that element, allowing us to achieve that.
Yeah makes sense okay.
And then on wholesale revenue can you help us think through the cadence of that this year as Walmart and some of those other partnerships come online and how that may impact the sequential.
Gross margins, if we're going to see some degradation in gross margins or will you be able to offset some of that wholesale pressure as your own pharmacy comes it comes online in Arizona.
Yes, so we did see many of our large partners come on board this quarter in place large large orders, we do expect some of that to normalize as we start to go into the back half of the year.
We're not necessarily giving explicit guidance around the gross margins, but we do expect those to hold relatively steady and the effects of what we would see would be primarily from.
Overall revenue mix immediacy, but we do just again given the.
Operational efficiency improvements that I mentioned earlier.
And the ability to return to healthy growth.
Yes very helpful. Thanks, guys.
Thanks, guys.
Your next question comes from Michael Cherny with Bank of America. Your line is now open.
Hi, This is Charlie on for Mike. Thanks for taking my question you mentioned the platform infrastructure investments that you made is could you just share more on the returns that you're expecting there and how theyre going to enhance the consumer experience on the platform.
Yes, it's a great question. Thank you.
Predominantly what we're speaking about is the Ohio, Arizona pharmacy fulfillment centers as well as the compounding capabilities and what these do as really allow us to control fully to speed quality and experience to the customer right and so in a world where we are operating a full breadth of medications and pharmaceuticals as well.
As over the counter combinations of products and merchandise kits and bundle that degree of flexibility and ownership really allows us a speed.
Ah.
And curation to the customer right you can imagine for example, the ability for a patient to open up the mobile App say they want to add something to the next shipment that's being delivered or just to medication or.
Introduce a new offering into their existing membership right all of that customization level and personalized experiences is really only capable with of our realized a center that we can oversee and self manage and so that's a really key differentiator for us as we continue to expand the breadth of offerings.
Allows us to drive that transparency back to the customer and give them that empowerment and that choice.
So we're very focused on continuing that rollout.
This quarter, we are north of 50% of all orders pharmaceutical and OTC rolling through those Ohio, and Arizona centers.
But continuing to push on getting to near 100% as quickly as we can.
Great. That's really helpful. Thanks, and then just a follow up.
When youre thinking about the competitive landscape right now could you just provide more color on what you view as the key areas, where and create value for us.
Hi, there.
I think there's really three different elements the brand the technology platform and ultimately how that delivers into the experience.
Built him and hurt us from the very beginning to be synonymous with health and wellness a broad breadth of conditions a message that resonates best in some situations provocative that starts conversations and bill it's really deep trusted relationships with people.
And really focuses on emotionally resident.
<unk> right. So that we can have that depth of relationship I think that brand has a very unique strategic asset and so you see us spending a lot of time with with partnerships and distribution to build that brand awareness and build that trust.
I think the platform secondly.
A tremendous asset and a key differentiator you have mobile application platform that went live this quarter, that's seeing 60% organic adoption of all new customers coming onto the platform and this platform allows you to have 24, seven concierge services encrypted and safe ability to accessing.
Discussed with your provider and physician adjust your treatment watch.
Hundreds of videos of original content that help onboard and activate U.
Relating to whatever treatment or services you might be interested in this level of breath as a platform.
Delivering I think a very unique.
Kind of a portfolio of value added services that is really different from what you can get in market and so I think customers know that I think in combination with the brand that technology platform. The capabilities, we were talking about on the pharmacy and the fulfillment side is actually allowing us to deliver a customer experience that is that is incredible right. It's just lighting customer.
And I think that flywheel is really what we're seeing with continuation of.
The acceleration of adoption of new customers and word of mouth.
So.
I kind of thing its across all of those axes right. The brand the technology of the platform and ultimately how that manifest itself into a very seamless and unique customer experience.
Great. Thank you and congrats again on the quarter.
Thank you.
Your next question comes from the line of Jack Wallace with Guggenheim. Your line is now open.
Hey, guys. Thanks for taking the questions and great job on the quarter.
Wanted to touch a little bit on the gross in the quarter.
If we think of the what's called the core therapeutic areas.
Sexual health in hair loss, how are those growth rates relative to some of the emerging categories and then.
Part two is we're thinking about the investments being made in the second quarter how.
How should we think about the split between incremental CAC spend versus let's call it incremental infrastructure associated with team creating content.
And new programs.
Thanks, Jack maybe I'll take the first half of that.
Take the second.
I think one of the things Thats really energizing us and giving us confidence to very materially raise guidance for the full year is that we're seeing incredibly robust growth both from the core as well as the emerging categories. We're seeing improving unit economics on the emerging categories as Jimmy talked about which is giving us that confidence to invest further there, but youre seeing.
<unk> robust growth in our core and Youre seeing continued triple digit growth on the emerging and so.
The team I think has a wealth of opportunity in front of us.
As charging really hard at both of those but I think it's that diversity in revenue and a breadth of services that is giving us the strong conviction really in raising that guidance for the rest of the year.
Yeah, and I think relative to the questions around cat, we've actually seen cost be able to be held relatively steady over the past.
Previous previous quarters.
A lot of expression that we're expecting in terms of the investment that we referred to earlier are just primarily we do put case around.
When we will invest in the category as it expands and as those get to primarily around what is the unit economic profile for different categories.
We are seeing and we're very pleased to see is that many of our newer categories have started to improve the unit economics as Andrew mentioned.
That provides us the ability to unlock investment for those and so much of the investment that we referred to in Q2 would be primarily related to the extension of that as I mentioned in earlier in the prepared remarks, we do expect to.
Let me start to get leverage on marketing as a percentage of revenue in the back half of the year really just because.
The recurring nature of the business.
We're not just necessarily invest in them and receiving a transaction, but we foster a relationship with customers over many quarters.
That's our second time, we continue to get leverage and so that's what gives us the conviction to make some of the investments we made in Q2 with the conviction that it will deliver.
A meaningful benefit in the future horse.
Got you that's helpful. Thank you and again congrats on the quarter.
Thank you.
Your next question comes from the line of George Hill with Deutsche Bank. Your line is now open.
Yeah, Hi, Nexium for George Congrats on a great quarter.
There has been an increased focus on combining behavioral and dispensing in the space with companies like <unk>.
So ray burrow gathering a lot of.
Does it make you rethink our approach to behavioral and when should we expect that you're going to be a material contributor to revenue.
Thank you so much for the question.
I can't really speak to what <unk> is doing in specific I don't have insight into that business.
That recently, there's quite a lot of attention relating to controlled substances in particular and the dispensing prescribing of those controlled substances, that's something just to be clear that we explicitly do not have on the platform.
And don't intend to have on the platform.
And so when it comes to the fulfillment side I actually think the ability to kind of verticalizing. The experience from the provider down to the delivery is an incredible way to drive real value and speed and price transparency to the customer. So we're really energized by the efforts there in Ohio.
In Arizona and are really going to continue to drive that mental health continues to be.
Huge need in this country right Theres more and more reports every single every single week coming out, particularly with patients in our focused age demographic great people in their <unk> and <unk> that have some of the highest brand awareness metrics when it comes to HIMSS and hers nationwide and so I think we have a very special and unique.
The opportunity in front of us to help a lot of those people we continue to see that being one of the strong contributors of the emerging category category growth as I mentioned growing over 300% and so it was a it was a very big contributor.
To breakout performance in the beating of the top line this quarter and we think it will continue to be a large contributor going forward. So I think we're already seeing the early signals that that category is.
Not only very much in need from a from a market standpoint, but also that what we're delivering in particular with the access to a psychiatrist the access to therapists and mobile platform with original content 24, southern access to these providers.
And concierge services this whole breadth of portfolio relating to mental health I think is very much delivering on helping people.
Feel better and hopefully improve that condition.
Okay.
Thanks, that's very helpful. I just have a quick follow up.
You talked about the plan to add one to two major categories. Every couple of quarters are we still looking at the target and your outlook to improve margins in the second half of the year.
Is it already accounting for potential category launching or no.
I'll take the first half so absolutely can continue to expect that cadence we have historically for the four to five years since we founded the business been on that cadence of one to two major new categories Youll see from Q1, we announced a number of new partnerships. One of them was with good path, which is an incredible company.
Focused on educational specialty for SK pain management, and some Knickered ibs.
So we continue to build out the robust partnerships provider excellence and then the technology as well to build a platform, which on top of which we can continue to release. These wanted to yours. So I believe you can expect that from us on a on a similar cadence to what <unk> seen from us in the last couple of years.
Yes, and then with respect to your second question.
The short answer is we do have a high degree of confidence in the ability to improve EBITDA margins in the back half of the year. So.
It gives us that conviction and confidence is.
First the.
Allocation model that I mentioned earlier, where we really do hold new categories to our high bar before we start to really lean in investment.
<unk> in a very fast payback periods, we generally see typically less than.
The other element is the recurring nature of the business, 90% of the revenue is recurring and so what effectively happened is while.
While we may invest in one quarter.
In the subsequent quarters.
As of users start to mature and deliver value we.
We see the continued benefit for us.
The future and so despite the fact that we've made.
<unk> over the last 12 months, what you actually do see between now and relative to Q1 of last year, a 10 point improvement in the EBIT margins and so if.
If we do continue to be able to hold in new categories to that high bar, but we're confident we can.
We expect to be able to continue to improve EBITDA margins. Despite the fact that we might need to invest.
Thanks, Congrats again.
Thank you so much.
Your next question comes from the line of Jonathan Young with Credit Suisse. Your line is now open.
Hey, guys. This is Nate on for Jonathan Thanks for taking my question.
I guess one question I had was advertising spend has spiked from some of your larger peers, causing them pull back have you seen this in your channels and any thoughts on the outlook on this and I guess as a follow up to that.
To the extent that you are able to see this houses to relationship with Cvs and Walgreens gone and have you seen it driving subscriber volume or other benefits.
Yes, I can take the beginning.
It's definitely a tough landscape out there youre seeing a lot of the players in.
Competitive categories really struggle with with headwinds whether it be from iOS privacy changes or the Facebook platform or just purely now dollars deployed into the space I think frankly, we have really felt quite quite well as Jimmy said our efficiency on marketing has continued to remain incredibly strong.
The remaining with payback periods sub one year, which we've been able to keep consistent relative.
Relative to last quarter very much stable.
I think a big part of this is the omnichannel presence the strategy around kind of that retail distribution building brand partnerships brand awareness I think what is very unique about him his and hers as we started as a as a consumer brand right. This is something that has been entrenched in our business and our values and what we believe is a strategic asset from the.
<unk> that we launched this company and.
And so I think a lot of players that may be were initially BTB enterprise business is now coming into the consumer space might not have the same DNA that we do that I think is really a differentiated approach and I think you see that across these dynamics right the retail channels the breadth of offerings.
The original content the mobile platform gathering tremendous amount of organic adoption. All of these things are really contributing to pretty rapid adoption of the platform in a way that really can only be generated with a consumer lens and so I think that's a key part of the strategy here and I think when.
Times get tough in competitive markets, that's really when you see breakout performance and I think this quarter near 100% revenue growth.
90% membership growth maintaining efficiency.
As I think a breakout performance for us and I think it's really very much driven from the flywheel that we've talked about.
Yes, I'm going to answer the second part of your question, we do see continued growth across the board in our wholesale channel.
This quarter, increasing more than 340%.
Year on year and much of that is being driven by the flywheel effect that Andrew had mentioned.
Sure.
As consumers see us in the stores and many of these leading retailers that entering Foster's interest for other products in our online channel moment as we start to build.
Consumer awareness and trust in that channel that only men in turn empowers more interest from our partners and so we continue to be very pleased by the performance crossover.
Across the board in our wholesale channel.
Yeah.
Okay.
Thanks, guys.
Thank you. Your last question. Your last question comes from the line of Jessica <unk> with Piper Sandler Your line is now open.
Hi, Thanks, so much for taking the questions and congrats on a great quarter.
First off there if by that you are.
You don't anticipate any changes in the way the business works.
Long side, the expiry of the PHP.
What seems like it could be the end of July and then just.
Maybe can you talk about the traction of the App, so far and any.
Frank and customer behavior.
In transactions the originate or are ultimately consummated on the app relative or.
Kind of traditional desktop customers.
Thanks Jessica.
For the first question Youre talking about the.
Brian hate laws things of that sort ending with the pandemic is that what what I caught.
So I think.
Ken just on that sort of three <unk>.
Controlled substances com that are cut.
All of those guys are going to have issues.
Turning to in person visits prior to being able to add that's right.
But I'm, just making sure that there's nothing that would change the way your business work.
Yes right.
No Thats correct Thats correct.
We currently operate in a way where when all of those dynamics go back in place and the kind of mid to in July that.
Nothing will change from our side. So a major part of that is controlled substance dynamic, which we don't.
Gauge with but great question and no nothing will change.
Yeah.
On the App side. So we launched yes fully in Q1, and we've had really a couple of months to watch it in a couple of weeks to start tracking retention and stickiness and engagement.
No. The thing I'm. Most excited about here is you really brought in a range of value added services that customers can experience right, they're able to have 27 concierge experiences talks that providers update their medications watch hundreds of videos original content cross sell purchase.
And so within just a couple of weeks of seeing that we are already seeing those dynamics take place right, a stickier customer a higher engaged customer.
With 60 plus percent of all all of our new patient downloading. This application and this is done really organically right. We're not forcing this are pushing it. It's just kind of happening. It's very clear that there is a broad need for a comprehensive set of solutions that we're offering and they are then coming into the app and they're engaging in a very high <unk>.
Right with all of those different offerings and so we really believe that this platform is the future home where patients are going to be spending a lot of time.
I think this was a pretty big contributor as we kind of unpack the stickiness to improve retention dynamics the adoption for the kind of the performance of this quarter I think it will continue to be one.
So we are ruthlessly focused on this this is where a lot of my time is spent where a lot of our teams time is spent and we think it's one of the biggest points of leverage we have for the company in.
And so we plan to continue to remain focused on it.
Got it thank you.
Thank you.
There are no further questions. This concludes today's conference call. Thank you for attending you may now disconnect.
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