Q1 2025 Hims & Hers Health Inc Earnings Call

May 5, 2025

<unk> earnings call.

Today after the market closed we released this quarter's shareholder letter a copy of which you can find on our website at investors <unk> Dot com.

Speaker Change: On the call with me today is Andrew <unk>, our co founder and Chief Executive Officer, Andy <unk>, Our Chief Financial Officer.

Speaker Change: Before I hand, it over to Andrew I need to remind you of legal safe Harbor and cautionary declarations.

Speaker Change: Certain statements and projections of future results made in this presentation constitute forward looking statements that are based on among other things our current market competitors and regulatory expectations and are subject to risks and uncertainties that could cause actual results to vary materially we take no obligation to update publicly any forward looking statements. After this call whether as a result of new <unk>.

Speaker Change: Information future events changes in assumptions or otherwise.

Speaker Change: Our most recently filed 10-K and 10-Q reports for a discussion of risk factors as they relate to forward looking statements.

Speaker Change: In today's presentation. We also have certain non-GAAP financial measures. We refer you to the reconciliation tables to the most directly comparable GAAP financial measures contained in today's press release and shareholder letter.

Speaker Change: You can find this information as well as a link to today's webcast at investors Dot hands Dot com.

Speaker Change: After the call of this webcast will be archived on the website for 12 months.

Andrew: And with that I'll turn the call over to Andrew.

Andrew: Thanks, Phil.

Phil: 2025 is already shaping up to be a landmark year for him and her.

Andrew: We're delivering on our long held vision health care, that's convenient affordable transparent and deeply personalized.

Andrew: And we continue to execute we see clear signs that our vision is resonating with more people than ever around the world.

Andrew: This has been our plan from day one.

Andrew: To build a global platform centered around the individual and to combine technology with data to re imagine how care is delivered.

Andrew: We're proving it can be done and more importantly that we can scale it.

Andrew: We have a solid foundation strong confidence in our ability to deliver long term growth and with new expansions and new partnerships. We're excited for what's next.

Andrew: While this may feel like a new story in healthcare, we've seen this kind of transformation across several other industries.

Andrew: Netflix transformed the way we consume media through an initial focus on building a broad subscriber base by leveraging convenience and then utilize data and insights to elevate the experience for their subscribers. We are embarking on a similar journey as we increasingly leverage a rich set of structured and proprietary data.

Andrew: To bring precision medicine to a broadening subscriber base.

Andrew: Consistent execution is allowing us to confidently outline new long term financial objectives.

Andrew: By 2030, we expect to generate at least $6 5 billion in revenue and $1 3 billion in adjusted EBITDA.

Andrew: That's not just a vision, it's the foundation for a robust roadmap to one day reached tens of millions of users.

Andrew: Our team's track record of delivering against ambitious goals quarter after quarter gives us the confidence to share these targets.

Andrew: We built a platform for the future of health care, one that's acceptable affordable transparent and personalized we scaled it we've strengthened it and now we are accelerating it.

Andrew: Over the next five years will focus on five core drivers of growth that we believe will help bring this new vision of healthcare to tens of millions of customers.

First we will deepen personalization capabilities, enabling access to a more precise level of care. Our vision involves expanding from hundreds of personalized treatments today to potentially thousands powered by richer insights from lab diagnostics growing subscriber datasets and eventually.

Andrew: Daily tracking from wearable devices.

Andrew: This will unlock faster feedback loops and intervention, resulting in greater optimize care.

Andrew: Next we will continue expanding into new specialties that deeply impact People's lives.

Andrew: Building on our success in weight loss, we're launching new offerings and low testosterone in menopausal important this year with longer term opportunities emerging in longevity sleep and preventative care as we expand lab testing and peptide capabilities.

Andrew: Third we will elevate precision care without sacrificing convenience.

Andrew: With nearly $2 4 million subscribers, we are uniquely positioned to deliver access to personalized end to end care at scale.

Andrew: Our technologies like Med match are already reinventing initial care interactions and we expect to AI driven tools, including access to coaches therapeutic tools and nutrition invites to deepen engagement and outcomes over time.

Andrew: Fourth we will continue building strategic partnerships to expand our ecosystem over time, we aim to create a curated health care ecosystem, bringing together best in class solutions anchored by better data personalized experiences and trusted clinical support.

Andrew: And lastly, we will scale the benefits of our platform globally.

Andrew: Demand for convenient customized transparent high quality health care is universal early traction in the UK and gives us confidence that we can scale our platform globally and extend our mission to help people around the world feel great through the power of better health.

Andrew: Now, let's talk about this quarter.

Andrew: We kicked off 2025 with strong momentum delivering first quarter results that demonstrate significant progress against our 2025 priorities.

Andrew: Revenue more than doubled year over year, and adjusted EBITDA nearly tripled our subscriber base grew to nearly $2 4 million with over $1 4 million subscribers now using personalized solutions.

Andrew: We're not just offering access to treatment, we're helping people live better for the long term, we're connecting the dots between cardiovascular health hormone support her health and more all in one place.

Andrew: You can see this clearly resonating with customers and specialties, such as men's and women's dermatology.

Andrew: Over 80% of subscribers in our dermatology specialty are benefiting from a personalized solution as of the end of the first quarter, which was a critical part in driving nearly 50% year over year subscriber growth across those specialties.

Sexual health is following a similar path, we believe that our ability to grow with our customers evolving needs is a critical driver of both long term retention and long term growth.

Andrew: Weight loss is another example that demonstrates how execution of our vision can translate into rapid scale in just 18 months. It has become one of our largest specialties.

Andrew: We've added layer of glue tied earlier this year and now through our new collaboration with Novo Nordisk, we're expanding access to branded with <unk> to bring subscribers on our platform, an even broader range of choice.

Speaker Change: Brandon will <unk> will be an additional option for subscribers and will complement our oral kit offering liraglutide and personalized semi glu tight options.

Speaker Change: Teaming up with Novo Nordisk is a pivotal milestone we are pairing our customer first platform with novo as medicines, reaching more people and helping them stay on track with their goals.

Speaker Change: This collaboration also signaled something important trust from our major pharmaceutical leader.

Speaker Change: And it sets the blueprint for future partnerships that can expand both our reach and our relevance.

Speaker Change: Over time, we expect wider collaboration across the industry from pharmaceutical players innovative leaders in diagnostic and preventative testing to world class providers.

Speaker Change: This will strengthen our ecosystem and position us to curate a best in class offering that can reach tens of millions of people.

Speaker Change: This is the future of our platform, allowing our historically disjointed industry to reach more consumers for the benefit of those customers.

Speaker Change: We look forward to providing future updates as this collaboration and others like it continued to evolve.

Speaker Change: When we look towards the future. It is clear we are just getting started on the realm of what's possible within health care.

Speaker Change: In addition to evolving our existing specialties, we plan to unlock value for customers in new ways. Later this year.

Speaker Change: Earlier this year, we acquired an innovative at home lab testing provider as we integrate those capabilities into our platform. We're excited to make blood testing easier and more accessible giving customers access to testing for key biomarkers tied to heart hormone liver thyroid and prostate health.

Speaker Change: These tools will support our current specialties and unlock entirely new ones they'll also help customers better understand their health and track their progress, enabling more proactive informed decisions for both patients and providers.

Speaker Change: This lower friction approach to diagnostics is especially important as we expand into hormone driven conditions like low testosterone in menopause.

Speaker Change: There are over 50 million people in the United States navigating symptoms tied to these conditions and many of them are already on our platform. We believe our model with its high touch personalized care is uniquely positioned to meet these needs.

Speaker Change: We expect to launch both a low testosterone in menopause support offering before the end of this year.

Speaker Change: As we look ahead everything we're doing from expanding into new specialties deepening personalization to forging new partnerships and ultimately broadening our global reach ties back to the core priorities, we laid out at the start of this year.

Speaker Change: We took another huge step along this path earlier this morning with the announcement of Notter Kabbani as our new Chief operating officer.

Speaker Change: <unk> was an operations leader at Amazon for nearly 20 years and has experienced scaling operations at the highest level makes him uniquely qualified to help us build the future of health care.

Speaker Change: Im thrilled to formally welcome him to the company today.

Speaker Change: In addition, I'd like to thank Melissa Baird for over seven years of friendship and dedicated efforts and bring him and her to the place we are today.

Speaker Change: She will be deeply missed but we are so excited for her and her next phase of life.

Speaker Change: In closing we have a clear roadmap built on our strong foundation and underpinned by innovation and a deep belief in putting the customer at the center of everything we do the momentum is real and we're just getting started with that I'll pass it over to Jeremy to talk through our financial performance and updated.

Jeremy: Outlook for 2025.

Jeremy: Thanks, Andrew.

Jeremy: I'll walk through our financial results for the first quarter before going deeper into our updated outlook for the rest of the year.

Jeremy: As Andrew mentioned, we've built a strong foundation and have real conviction in our ability to drive long term growth.

Jeremy: With new partnerships and investments in deeper personalization capabilities and expansion into new specialties were preparing for the next phase of Hampton Hurst.

Jeremy: We're seeing early proof points that this next chapter is already underway from a strong start in 2025.

Jeremy: We're continuing to build what we believe is a first of its kind health care platform. One that is more personalized more accessible and affordable that we already see resonating with a growing number of consumers each day.

Jeremy: The strength of our platform is clear in the first quarter.

Jeremy: Revenue grew 111% year over year to $586 million.

Jeremy: That momentum is the result of our ability to execute on our strategy that is able to bring a greater precision of care to more people.

Jeremy: As our platform expands we're serving a broader set of customers across our existing specialties and starting to provide value within new specialties. We.

Jeremy: We ended the quarter with nearly $2 4 million subscribers, reflecting a year over year increase of 38%.

Jeremy: Data and insights on our platform are serving as a foundational element in identifying solutions that resonate with a broad base of consumers.

Jeremy: In the first quarter over 70% of new subscribers partner, what they provider to obtain access to a personalized solution.

Jeremy: Results like this gives us strong conviction that we are not simply gaining market share through consumer rotation.

Jeremy: Rather we believe that our strengths inclusive of our brand personalized solutions and technology platform are allowing us to expand the overall market by democratizing access to higher quality treatment across the country.

Jeremy: Over the last several quarters, we've leveraged innovation and personalized solutions star's transformation within our central specialty.

Jeremy: Historically, our subscriber base of mirrored the broader industry with respect to an overwhelming majority of consumers utilizing on demand offerings.

Jeremy: Launches of multi condition treatments, but for the additional benefits in areas like vitamin support hair loss prevention testosterone support and cardiovascular health are allowing us to elevate the experience for our sexual subscribers, we're increasingly using our daily offerings.

Jeremy: The number of subscribers utilizing daily offering has more than doubled year over year and now represents nearly 40% of sexual health subscribers.

Jeremy: We are already seeing benefits there are signs of stronger retention with subscribers of spectrum up daily offerings, demonstrating a nearly 10 point improvement in retention in their first year relative to on demand users with evidence of even stronger retention benefits overtime.

Jeremy: Our focus remains on driving long term growth, even if at times that results in near term temporary headwinds are.

Jeremy: As we transition our subscriber base towards more premium daily products, we expect some volatility in sexual op growth as we recalibrate our approach to messaging and invest in consumer education around the benefits of our offerings provide.

Jeremy: Over the mid to long term horizon. We believe this transition will drive durable growth within our sexual health specialty as a result of increased retention and acquisition efficiency.

Jeremy: Despite a significant shift in marketing spend towards the weight loss and dynamics from the previously mentioned transition year over year revenue growth outside of our GOP when offering remained robust at nearly 30% year over year.

Jeremy: That's an important proof point that demonstrates the underlying ability to drive robust growth across our broader business even in the presence of fewer dollars to drive top of funnel demand.

Jeremy: Growth in the first quarter benefited from a unique opportunity to extend the reach of our platform to even more than 100 million Americans impacted by obesity.

Jeremy: Our platform empowered our subscribers to pursue their goals with access to personalized solutions and towards customized for their unique journeys.

Jeremy: We are excited to offer a weight loss subscribers access to an expanding portfolio of solutions that have started a long term collaboration with Novo Nordics one of the most respected companies in medical innovation.

Jeremy: This collaboration combines our proven treatments with our ability to deliver personalized tech enabled care and services at scale.

Jeremy: In the near term, there's been lots of another compelling option for subscribers a commercially available messages of semi grow tighter transition too.

Jeremy: It's a meaningful validation of our model and a powerful first step in expanding access to effective obesity care across the country.

Together these drivers the momentum of our weight loss specialty and the continued adoption of premium personalized solutions are creating tailwind to subscriber engagement.

Jeremy: In the first quarter monthly online revenue per average subscriber climbed to $84 up more than 50% year over year.

Jeremy: We expect this to moderate as we move through the year driven by subscriber transitions off of commercially available semi quicktime and typical seasonality in our weight offering.

Jeremy: Now shifting to investment efficiency and profitability.

Jeremy: We have upheld our rigorous capital allocation standards inclusive of a payback period of less than a year and marketing investments, while concurrently elevating our brands reach with consumers.

Jeremy: As a result of this and prior investments in platform infrastructure, we're seeing real operating leverage as revenue scales.

Jeremy: In the first quarter adjusted EBIT increased to $91 million nearly triple what we delivered in the same quarter last year.

Jeremy: Adjusted EBITDA margins expanded by over four points quarter over quarter to nearly 16%.

Jeremy: Gross margins declined approximately three points quarter over quarter as <unk> revenue scaled.

Jeremy: We expect improvement in the second quarter as we benefit from economies of scale across our ecosystem to continue augmenting our internal fulfillment capabilities.

Jeremy: The first quarter was a significant moment for our marketing efforts on multiple fronts, we lean into upper funnel awareness through our Super Bowl campaign, and also invested heavily in specialty specific marketing campaigns within wave.

Jeremy: Despite this we achieved record level of efficiency on our marketing spend.

Jeremy: Marketing spend in the first quarter was 39% of revenue, reflecting an improvement of eight points year over year and over six point improvement from last quarter.

Jeremy: These efficiency gains were driven by a few factors.

Jeremy: First we saw reached hedging gains may shift with personalized solutions and our subscriber base as well as benefits from the shift toward more premium daily options, our sexual health offering.

Jeremy: Second we dramatically raised the bar for marketing and investment across our non weight specialties. This.

Jeremy: This gave us the ability to support a one minute Super Bowl campaign, and specialty specific marketing our way offering.

Jeremy: Rotation takes time to do efficiently. So we chose to reduce overall spend as opposed to recalibrate weight related spend to other categories. After the end of the semi tight shortage in February.

Jeremy: Lastly, we're seeing more subscribers come to our platform through organic and other lower cost channels. We believe this is a reflection of investments that are extending the reach of our brand as well as benefits stemming from high advocacy from subscribers are more visible specialties.

Jeremy: Leverage further down the P&L continues to increase as we thoughtfully scale operations.

Jeremy: G&A as a percentage of revenue improved four points year over year to 8%.

Jeremy: Operations and support improved three points year over year to 11%.

Jeremy: Those gains reflected ongoing automation vertical <unk> and improve efficiency across the business.

Jeremy: Fiscal discipline is driving significant cash flow generation.

Jeremy: <unk> from operations was $109 million, which translated into free cash flow of $50 million.

Jeremy: At quarter end, we had $323 million in cash and short term investments on the balance sheet.

Jeremy: Strong free cash flow is enabling us to expand capabilities across our operation.

Jeremy: In the first quarter, we invested $59 million into capex to augment our operations across a few areas.

Jeremy: First we continued investment to expand capacity for personalized offerings setting the stage to be able to offer our subscribers access to more precise care by unlocking capacity for thousands of Skus.

Jeremy: We recently signed a lease for a larger facility in Arizona that expands our nationwide internal fulfillment footprint for approximately 400000 square feet to nearly 700000 square feet.

Jeremy: Second we made investments to efficiently unlock scale through greater automation.

Jeremy: While we are still early in our journey automation provides a path to unlocking thousands of choices for our subscribers in an efficient matter.

Jeremy: We upgraded equipment in the first quarter across several of our facilities further enabling us to make the vision of precision medicine a reality.

Jeremy: Finally, we invested in infrastructure to unlock sterile fulfillment capacity across our facilities.

Jeremy: Provides a platform for more efficient fulfillment of specialties. We are in today, such as weight and those that we expect to be in the future such as low testosterone to require sterile capabilities.

Jeremy: In the coming quarters, we will also invest to expand our lab diagnostic capabilities. This.

Jeremy: This capability and lock several benefits such as reduced consumer areas with the new specialties greater health related insights for our subscriber base and a wider assortment of more precise personalized solutions.

Jeremy: This combined with our other investments will serve as a critical component for the next phase of growth, enabling us to more efficiently provide access to precision medicine to a broader population.

Jeremy: With that I will now walk through our guidance and longer term outlook.

Jeremy: In the second quarter, we expect revenue between $530 million to $550 million representing year over year growth of between 68% to 74%.

Jeremy: We are anticipating adjusted EBITDA in the range of $65 million to $75 million, reflecting a 13% margin at the midpoint.

Jeremy: For the full year, we expect revenue between two three and $2 4 billion up 56% to 63% year over year.

Jeremy: We are anticipating adjusted EBITDA in the range of $295 million to $335 million, reflecting a 13% margin at the midpoint.

Jeremy: Embedded in our outlook are a few key assumptions that reflect the intentional evolution of our platform and how we're setting ourselves up for long term success.

Jeremy: First we expect continued strong growth across many of our most tenured offerings, including mental health as well as men's and women's dermatology all of which are benefiting from years of investment in brand retention and personalized offerings.

Jeremy: That said, while sequential and year over year growth is expected to continue we do expect uneven trends in sexual health as we navigate transitions in the treatment mix, which we believe is temporary as new daily personalize solutions gain traction.

Jeremy: We're already starting to see encouraging signs of momentum that we believe was strengthened with the addition of new offerings over the course of the year.

Second we expect to complete the transition of subscribers previously on commercially available dosages of semi glu tied to either appropriate alternatives on our platform or other platforms entirely by the end of the second quarter.

Jeremy: This transition is expected to result in a one time quarter over quarter revenue drop in the second quarter from which we are confident we can continue to build upon through the remainder of the year.

Jeremy: Third we expect gross margins to expand in the second quarter.

Jeremy: Based on the information that we see today, our expectation is that operational efficiency gains and growth from more tenured specialties can offset potential headwinds from macroeconomic factors such as tariffs.

Jeremy: Fourth we expect some volatility market inefficiency from quarter to quarter.

Jeremy: In the second quarter, we expect to lean into specialty specific marketing across a broader set of specialties, which may result in some deleveraging.

Jeremy: We remain committed to our capital allocation framework, which calls for a payback period of less than a year.

Jeremy: Rigorous adherence to this framework combined with evolving dynamics, such as increased acquisition would be a lower cost channels stronger retention from personalized products and the continued maturation of our subscriber base provide us with confidence in our ability to continue driving one to three points of marketing leverage per annum.

Jeremy: Lastly, we expect long term revenue retention to remain above 85% as more subscribers engage with personalized solutions across multiple specialties.

Jeremy: Before going to Q&A I'll take a moment to provide additional color on our long term targets.

Jeremy: When we closed out our 2022 fiscal year momentum allowed us to paint a picture of what we thought our financial profile in 2025 could look like at least $1 2 billion in revenue and $100 million of adjusted EBITDA.

Exceptional execution enabled us to achieve those targets a year early as well as potentially deliver revenue and adjusted EBITDA in 2025 that could be almost two times and three times higher than the original floors respectively.

Jeremy: More importantly, these execution patterns and the growth levers ahead positioning us to update our longer term perspective on what we believe the financial profile of him centers can look like in the coming years.

Jeremy: We believe that we can achieve at least $6 5 billion in annual revenue and $1 3 billion and adjusted EBITDA by 2030.

Jeremy: Our ability to deliver these targets is predicated on continued execution across our levers outlined by Andrew that further solidify our strategic advantages.

Jeremy: <unk> personalization specialty expansion elevating the subscriber experience fostering innovative partnerships and lastly geographic expansion.

Jeremy: We expect the majority of our investment in the coming years to be organic but will continue to ensure that our financial position affords us the flexibility to opportunistically accelerate our roadmap is strategic acquisitions.

Jeremy: 2025 is off to a great start and we are excited by the momentum we continue to see across the business.

Jeremy: Consumers continue to turn to us as a solution for a better and more precise health care experience and we believe this will accelerate as we continue to build upon the already strong foundation that we built.

Operator: Health First Quarter 2025 Earnings Call. Today, after the market closed, we released this quarter's shareholder letter, a copy of which you can find on our website at investors.hens.com.

Almost two times and three times higher than the original floors, respectively.

More importantly, these execution patterns and the growth levers ahead position us to update our longer term perspective on what we believe the financial profile of him centers can look like in the coming years.

Jeremy: Data enriched by each additional user on the platform will enable us to further refine our personalized offerings elevating the experience for our subscribers and taking US one step further for the reality of him and her is becoming synonymous with high quality personalized care.

Operator: On the call with me today is Andrew Dudum, our co-founder and chief executive officer, and Yemi Okupe, our chief financial officer.

We believe that we can achieve at least $6 5 billion in annual revenue and $1 3 billion and adjusted EBITDA by 2030.

Operator: Before I hand it over to Andrew, I need to remind you of legal safe harbor and cautionary declarations. Certain statements and projections of future results made in this presentation constitute forward-looking statements that are based on, among other things, our current market, competitors, and regulatory expectations, and are subject to risks and uncertainties that could cause actual results to vary materially. We take no obligation to update publicly any forward-looking statement after this call, whether as a result of new information, future events, changes in assumptions, or otherwise.

Bill: I'd like to thank our customers partners and employees for helping US deliver these outstanding results and we look forward to continuing to update you on our progress with that I will turn it back to bill to kick off Q&A with two questions from our retail community.

Our ability to deliver these targets is predicated on continued execution across our levers outlined by Andrew that further solidify our strategic advantages.

Keeping a personalization specialty expansion elevating the subscriber experience fostering innovative partnerships and lastly geographic expansion.

Bill: Thanks, Amy and thank you. Thank you to all the investments and set of questions over the weekend. We're very excited to continue engaging with this growing part of our investor base.

We expect the majority of our investment in the coming years to be organic but will continue to ensure that our financial position affords us the flexibility to opportunistically accelerate our roadmap is strategic acquisitions.

Bill: We received quite a few questions on our recently announced collaboration with Novartis.

Operator: BCR most recently filed 10-K and 10-Q reports for a discussion of risk factors as they relate to forward-looking states.

Speaker Change: This is a multi part question from both the <unk> and Pirate's booty.

Bill: Can you elaborate on the future roadmap hands in hers.

25 is off to a great start and we are excited by the momentum we continue to see across the business consumers.

Operator: In today's presentation, we also have certain non-GAAP finances. We refer you to the reconciliation tables to the most directly comparable GAAP financial measures contained in today's press release and shareholder You can find this information as well as a link to today's webcast at investors.hims.com.

Bill: And nobody noticed noticed are developing together and what do you see as the next possible Stefan this roadmap over time continuum.

Continue to turn to us as a solution for a better and more precise health care experience and we believe this will accelerate as we continue to build upon the already strong foundation that we built.

Bill: Form play a role in partnering with companies with newly approved drugs for the sake of post approval monitoring of side effects and efficacy.

Data enriched by each additional user on the platform will enable us to further refine our personalized offerings elevating the experience for our subscribers and taking US one step further for the reality of hands in hers, becoming synonymous with high quality personalized care.

Operator: After the call, this webcast will be archived on the website for 12 months.

Bill: Thanks Bill.

Andrew Dudum: And with that, I will turn the call over to. Thanks, Phil. 2025 is already shaping up to be a landmark year for Hims & Hers. We're delivering on our long-held vision, healthcare that's convenient, affordable, transparent, and deeply personalized. As we continue to execute, we see clear signs that our vision is resonating with more people than ever around the world. This has been our plan from day one. to build a global platform centered around the individual and to combine technology with data to reimagine how care is delivered. We're proving it can be done, and more importantly, that we can scale it.

Bill: On the Novo side. This is a collaboration we are excited by the teams.

Bill: Across both organizations have been spending quite a bit of time together sharing meals and really.

I'd like to thank our customers partners and employees for helping US deliver these outstanding results and we look forward to continuing to update you on our progress with that I'll turn it back to bill to kick off Q&A with two questions from our retail community.

Bill: Aligning on what we think the future of health care, it looks like and I think there's real excitement around that shared vision. So.

Bill: When I step back I think theres, a real set of opportunities hopefully across categories across novo product lines potentially across geographies.

Bill: Thanks, Amy and thank you. Thank you to all the investments and ask questions of the weekend very excited to continue engaging with this growing part of our investor base.

Bill: That we are brainstorming and hopefully in the coming quarters Ken.

Bill: We received quite a few questions on our recently announced collaboration with Novo Nordisk.

Bill: Give a little bit more precise roadmap with regard to what some of those offerings can be.

Bill: Multi part question from both the empower community and Pirate's booty.

Andrew Dudum: We have a solid foundation, strong confidence in our ability to deliver long-term growth, and with new expansions and new partnerships, we're excited for what's next.

Bill: Generally I think.

Bill: Can you elaborate on the future roadmap hasnt hers.

This type of a partnership though as a blueprint for what.

Bill: And nobody noticed nordisk are developing together and what do you see as the next possible Stefan this roadmap over time continues.

Bill:

Bill: Well, we think the next five and 10 years could look like a cross category spread there are incredible innovations happening in biotech.

Andrew Dudum: While this may feel like a new story in healthcare, we've seen this kind of transformation across several other industries. Netflix transformed the way we consume media through an initial focus on building a broad subscriber base by leveraging convenience and then utilize data and insights to elevate the experience for their subscribers. We are embarking on a similar journey as we increasingly leverage a rich set of structured and proprietary data to bring precision medicine to a broadening subscriber base. Consistent execution is allowing us to confidently outline new long-term financial objectives. By 2030, we expect to generate at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA.

Bill: Form play a role in partnering with companies with newly approved drugs for the sake of post approval monitoring of side effects and efficacy.

Bill: There are incredible innovations happening around diagnostic testing and preventative testing.

Bill: Thanks Bill.

Bill: And when we think about the platform that we have in the growing consumers that we are carrying for our ability to bring together a very disjointed set of players and broaden the ecosystem in a way where everybody is really wins I think is something that is uniquely his and hers can do in <unk>.

Bill: On the Novo side. This is a collaboration we are excited by the teams across both.

Bill: The organizations have been spending quite a bit of time together sharing meals and really.

Bill: Aligning on what we think the future of health care, it looks like and I think there's real excitement around that shared vision. So.

Bill: So.

Bill: When I step back I think theres, a real set of opportunities hopefully across categories across novo product lines potentially across geographies.

Bill: This is <unk>.

Bill: Citing first step with with Novo and I think we're really looking forward to what can be possible in the next few years.

Bill: There's also I think.

Bill: That we are brainstorming and hopefully in the coming quarters can give.

Bill: A whole new avenue of opportunities across.

Bill: Treatment types across testing capabilities across clinical providers, where we can bring our ecosystem and theres together on behalf of the consumer to ultimately be the curator of what we believe to be world class Health care.

Bill: Give a little bit more a precise road map with regard to what some of those offerings can be.

Andrew Dudum: That's not just a vision. It's the foundation for a robust roadmap to one day reach tens of millions of users. Our team's track record of delivering against ambitious goals quarter after quarter gives us the confidence to share these targets. We've built a platform for the future of healthcare, one that's accessible, affordable, transparent, and personalized. We've scaled it, we've strengthened it, and now we are accelerating.

Bill: Generally I think this type of a partnership though as a blueprint for what.

Bill: <unk>.

Bill: Well, we think for the next five and 10 years could look like across categories spread there are incredible innovations happening in biotech.

Speaker Change: Thanks, Andrew.

Speaker Change: We also received a number of questions on the recently announced.

Speaker Change: <unk> peptide and lab testing facilities. This one comes from Nick <unk> with him about longevity product as a team looking to build for our customers with the recent acquisition of the peptide facility and how does this facility fit in with the plan to rollout lab testing and grow your ability to offer precise and more targeted treatments.

Bill: There are incredible innovations happening around diagnostic testing and preventative testing.

Bill: And when we think about the platform that we have in the growing consumers that we are carrying for our ability to bring together a very disjointed set of players and brought in the ecosystem in a way where everybody is really wins I think is something that is uniquely him his and hers can do and.

Andrew Dudum: Over the next five years, we'll focus on five core drivers of growth that we believe will help bring this new vision of health care to tens of millions of customers. First, we will deepen personalization capabilities, enabling access to a more precise level of care. Our vision involves expanding from hundreds of personalized treatments today to potentially thousands, powered by richer insights from lab diagnostics, growing subscriber data sets, and eventually daily tracking from wearable devices. This will unlock faster feedback loops and interventions, resulting in greater optimized care. Next, we will continue expanding into new specialties that deeply impact people's lives.

Speaker Change: Yes, it's a great question. Thank you for asking that we are continuing to invest across the stack in innovative operations and capabilities that can deliver really cutting edge care for patients peptide.

Bill: So.

Bill: This is an exciting first step with with Novo and I think we're really looking forward to what can be possible in the next few years and there is also I think.

Speaker Change: Peptide innovation is expanding very very rapidly. This is something our team is.

Speaker Change: Really paying attention to that I am paying attention too deeply and this is across a lot of different areas its across pain management I think.

Bill: A whole new avenue of opportunity to cross.

Speaker Change: Cost recovery.

Speaker Change: Crop generalized longevity.

Speaker Change: And when I think of those types of categories.

Speaker Change: The innovation happening in peptide is generally.

Speaker Change: Innovation is accessible really to only the extreme wealthy subset of the population and I think like all hands in hers approaches we aim to invest in the innovative infrastructure for these cutting edge areas of therapeutics can be brought in.

Andrew: Thanks, Andrew.

Andrew: We also received a number of questions on the recently announced acquired peptide and lab testing facilities. This one comes from Nicky to us what type of longevity product as a team looking to build for its customers with the recent acquisition of the peptide facility and how does this facility fit in with the plan to rollout lab testing and grow your ability to offer precise.

Andrew Dudum: Building on our success in weight loss, we're launching new offerings in low testosterone and menopause support this year, with longer-term opportunities emerging in longevity, sleep, and preventative care as we expand lab testing and peptide capability. Third, we'll elevate precision care without sacrificing convenience. With nearly 2.4 million subscribers, we are uniquely positioned to deliver access to personalized end-to-end care at scale. Our technologies, like MedMatch, are already reinventing initial care interactions, and we expect AI-driven tools, including access to coaches, therapeutic tools, and nutrition advice, to deepen engagement and outcomes over time. Fourth, we will continue building strategic partnerships to expand our ecosystem.

Speaker Change: A small subset of the population has to the masses at affordable and hyper personalized scale. So the peptide facility I think it's going to be a really vital component.

Andrew: It's a more targeted treatments.

Andrew: Yes, it's a great question. Thank you for asking that we are continuing to invest across the stack in innovative operations and capabilities that can deliver really cutting edge care for patients peptide.

Speaker Change: This future platform and I think youll see with the intersection of lab testing and.

Speaker Change: And longevity us taking a more proactive and preventative care model on the platform, making some of these more diagnostic.

Andrew: Peptide innovation is expanding very very rapidly. This is something our team is.

Speaker Change: And action based cares just easier for people and so on.

Andrew: Really paying attention to that I am paying attention too deeply and this is across a lot of different areas its across pain management.

People coming to <unk> for a very specific conditions, such as hair loss sexual health mental health et cetera, I also things youre going to start seeing offerings. In the next couple of years that are more about gaining understanding of your health and taking that for staff to be the most optimized you can for not only yourself, but also your family.

Andrew: Cross recovery.

Andrew: Cross generalized longevity.

Andrew: And when I think of those types of categories.

Andrew Dudum: Over time, we aim to create a curated healthcare ecosystem, bringing together best-in-class solutions anchored by better data, personalized experiences, and trusted clinical support.

Andrew: The innovation happening in peptides is generally.

Andrew: Innovation is accessible really to only the extreme wealthy subset of the population and I think like all his and hers approaches we aim to invest in the innovative infrastructure for these cutting edge areas of therapeutics to broaden what a.

Speaker Change: Great. Thanks, Andrew and thanks again to all of the same questions over the weekend with that I will pass the call back to the operator to begin the analyst Q&A.

Andrew Dudum: And lastly, we'll scale the benefits of our platform globally. Demand for convenient, customized, transparent, high-quality healthcare is universal. Early traction in the UK gives us confidence that we can scale our platform globally and extend our mission to help people around the world feel great through the power of better health.

Speaker Change: Thank you Sarah and just a reminder, it is star one to ask a question on the phone we will go first to Craig heading back Morgan Stanley.

Andrew: A small subset of the population have to the masses at affordable and hyper personalized scale. So the peptide facility I think it's going to be a really vital component of this future platform and I think youll see with the intersection of lab testing and.

Speaker Change: Great. Thank you.

Craig: On the weight loss category and the target for $725 million revenue. This year can you just touch on what you see as the key drivers and just looking for color across how the personalized offerings are going I saw some commentary in the letter about the oral offerings very strong ingalls have liraglutide.

Andrew Dudum: Now, let's talk about this quarter. We kicked off 2025 with strong momentum, delivering first-quarter results that demonstrate significant progress against our 2025 priorities. Revenue more than doubled year over year, and adjusted EBITDA nearly tripled. Our subscriber base grew to nearly 2.4 million, with over 1.4 million subscribers now using personalized solutions. We're not just offering access to treatment. We're helping people live better for the long We're connecting the dots between cardiovascular health, hormone support, hair health and more all in one place. You can see this clearly resonating with customers and specialties such as men's and women's dermatology.

Andrew: And longevity of taking a more proactive and preventative care model on the platform, making some of these more diagnostic.

Andrew: And action based care is just easier for people.

Speaker Change: Kind of how you see the buildup to weight loss this year and how you're tracking to that target.

Andrew: People coming to <unk> for a very specific conditions, such as hair loss sexual health mental health et cetera, I also things youre going to start seeing offerings. In the next couple of years that are more about gaining understanding of your health and taking that first step to be the most optimized you can for not only yourself, but also your family.

Craig: Yes, thanks for the question Craig.

Craig: When we laid out the targets for 2025.

Craig: We were aware of it before it was coming to turn items, So we kind of outlined.

Craig: Last quarter.

Craig: That effectively we would assume that.

Craig: All of the wrong commercially available deficit with semi grade type would be off the platform by by Q2.

Speaker Change: Great. Thanks, Andrew and thanks again to all of the same questions over the weekend with that I will pass the call back to the operator to begin the analyst Q&A.

Largely albeit hope.

Craig: Holding in line with our expectations across all of our specialty <unk>, historically really leaned into or to have some SaaS is really offering our subscribers a breath of number of different options and so I think we're very pleased in the weight loss specialty too.

Speaker Change: Thank you Sir and just a reminder, it is star one to ask a question on the phone we will go first to Craig heading back Morgan Stanley.

Andrew Dudum: Over 80% of subscribers in our dermatology specialty are benefiting from a personalized solution as of the end of the first quarter, which was a critical part in driving nearly 50% year over year subscriber growth across those specialties. Sexual health is following a similar path. We believe that our ability to grow with our customers' evolving needs is a critical driver of both long-term retention and long-term growth. Weight loss is another example that demonstrates how execution of our vision can translate into rapid scale. In just 18 months, it has become one of our largest specialties. We've added liraglutide earlier this year, and now through our new collaboration with Novo Nordisk, we're expanding access to branded Wogovi to bring subscribers on our platform an even broader range of choice.

Speaker Change: Great. Thank you.

Speaker Change: <unk> category and the target for $725 million revenue. This year can you just touch on what you see as the key drivers and just looking for color across how the personalized offerings are going.

Craig: Recently in the past quarter launched several additions to the specialty that we believe will give us.

Craig: The ability to meet or exceed the seven five target and so we recently launched <unk> as well as.

Speaker Change: Some commentary in the letter about the oral offerings very strong Ingalls have liraglutide. So just kind of how you see the buildup to weight loss this year and how you're tracking to that target.

Craig: Through the part of the collaboration we spoke around with Novo.

Craig: The nordics to bring a branded pins on.

Craig: As well as the.

Craig: <unk>.

Craig: Product, we got to meet with them within the weight specialties such as personalized.

Speaker Change: Yeah. Thanks for the question Craig.

Speaker Change: When we laid out the targets for 2025.

Craig: So Mike with tight and the oral offer and so we're seeing continued strength across all of those.

Speaker Change: We were aware that the shortage coming to turn items, so we kind of outlined.

Craig: That gives us the conviction to reiterate.

Speaker Change: Last quarter.

Craig: Top line revenue guidance as well as with the adjusted EBITDA guidance.

Speaker Change: We effectively would assume that.

Speaker Change: All of the wrong commercially available semi grade type would be off the platform by Q2, and that's largely all been.

Questioner: Great. Thanks, and then just a follow up question for Andrew when I think about the 2030 targets can you just touch on just kind of the core business as it stands today like just that the runway for growth that you're still seeing some of the core categories. And then also just the importance of newer categories that come in.

Andrew Dudum: Branded Wigovi will be an additional option for subscribers and will complement our Oral Kit offering, Lyra Glutide, and Personalized Semi-Glutide options. Teaming up with Nova Nordisk is a pivotal milestone. We are pairing our customer-first platform with Novo's medicines, reaching more people and helping them stay on track with their goals. This collaboration also signals something important, trust from a major pharmaceutical leader. And it sets the blueprint for future partnerships that can expand both our reach and our relevance. Over time, we expect wider collaboration across the industry, from pharmaceutical players, innovative leaders in diagnostic and preventative testing, to world-class providers.

Speaker Change: Holding in line with our expectations across all of our specialty <unk> historically really leaned into or to have success is really all three of our subscribers a breath of numerous different options and so I think we're very pleased in the weight loss specialty too.

Craig: To track to that $6 5 billion.

Speaker Change: Recently in the past quarter launched several additions to the specialty that we believe will give us.

Andrew: Yes, it's a great question Gregg.

Andrew: I think what gives us confidence is that you are seeing incredible robustness in both of those segments.

Speaker Change: The ability to meet or exceed the seven <unk>, we recently launched <unk> as well as.

Andrew: Some of the new innovative categories like.

Andrew: The metabolic health obesity care across <unk>, obviously, a big accelerant, we believe those businesses will be very very important businesses just get into pure population.

Speaker Change: Through the part of the collaboration we spoke about with Novo Nordisk.

Speaker Change: <unk> to bring a branded pins on.

Speaker Change: As well as the existing.

Speaker Change: Product, we got to meet with them within the weight specialty such as personalized.

Andrew: Is really struggling but then when you actually look under the Hood at what we consider some of the more legacy category.

Andrew Dudum: This will strengthen our ecosystem and position us to curate a best-in-class offering that can reach tens of millions of people. This is the future of our platform, allowing a historically disjointed industry to reach more consumers for the benefit of those customers. We look forward to providing future updates as this collaboration and others like it continue to evolve.

Speaker Change: Somebody with tight and the oral offering and so we're seeing continued strength across all of those.

Speaker Change: That gives us the conviction to reiterate.

Andrew: Those are growing incredibly robustly right, you've got to her and her dermatology businesses growing 50% plus year over year those businesses have really been transformed with personalization, we're north of 80% of those businesses are now with personalized proprietary skus, having driven a 20 point retention.

Speaker Change: The top line revenue guidance as well as with the adjusted EBITDA guidance.

Great. Thanks, and then just a follow up question for Andrew when I think about the 2030 targets can you just touch on just kind of the core business as it stands today like just that the runway for growth that you're still seeing some of the core categories. And then also just the importance of newer categories that come in to track to.

Andrew Dudum: When we look towards the future, it's clear we are just getting started on the realm of what's possible within healthcare. In addition to evolving our existing specialties, we plan to unlock value for customers in new ways later this year.

Andrew: And again it is just the last couple of years you see the same kind of things happening across the sexual health business as we really transform that business to one with dual action treatment hyper personalization daily.

Speaker Change: Of that $6 5 billion.

Andrew: Yes, it's a great question Greg.

Andrew Dudum: Earlier this year, we acquired an innovative at-home lab testing provider. As we integrate those capabilities into our platform, we're excited to make blood testing easier and more accessible, giving customers access to testing for key biomarkers tied to heart, hormone, liver, thyroid, and prostate health. These tools will support our current specialties and unlock entirely new ones. They'll also help customers better understand their health and track their progress, enabling more proactive, informed decisions for both patients and providers. This lower friction approach to diagnostics is especially important as we expand into hormone-driven conditions like low testosterone and menopause.

Daily benefit so the penetration rates of the core categories. We're in are still very very low I mean, youre talking low single digits, given the town and so I think it's going to be a really nice composition of revenue across his and hers across categories across new and all that is.

Andrew: I think what gives us confidence is that you are seeing incredible robustness in both of those segments.

Speaker Change: Some of the new innovative categories like.

Speaker Change: The metabolic health obesity care across things that hurt obviously big Accelerant, we believe those businesses will be very very important businesses just get into pure population.

Andrew: Coming together to deliver on that 2030, but ultimately I think that's the strength of this business right. As you have a unified brand for men and a unified brand for women under which you have the opportunity to build probably dozens of completely different businesses under the hood with completely different care different treatment.

Speaker Change: Is really struggling but then when you actually look under the Hood at what we consider some of the more legacy categories.

Speaker Change: Those are growing incredibly robustly right, you've got to her and her dermatology businesses growing 50% plus year over year those businesses have really been transformed with personalization, we're north of 80% of those businesses are now with personalized proprietary skus, having driven a 20 point retention.

Andrew: Current customers different marketing channels, and it's that diversity.

Andrew Dudum: There are over 50 million people in the United States navigating symptoms tied to these conditions, and many of them are already on our platform. We believe our model, with its high-touch, personalized care, is uniquely positioned to meet these needs.

Andrew: That I think is what really gives us the business.

Andrew: Strength long term.

Speaker Change: Gain is just the last couple of years you see the same kind of things happening across the sexual health business as we really transform that business to one with dual action treatment hyper personalization daily.

Got it thanks for that.

Speaker Change: We'll take the next question from Maria reps Canaccord Genuity.

Andrew: Great. Thanks, so much for taking my questions.

Andrew Dudum: We expect to launch both a low testosterone and menopause support offering before the end of this year. As we look ahead, everything we're doing, from expanding into new specialties, deepening personalization, to forging new partnerships, and ultimately broadening our global reach, ties back to the core priorities we laid out at the start of this year.

Speaker Change: Chris I appreciate all the color on the transition within the sexual health vertical can you maybe just talk about sort of some of the initiatives to reaccelerate growth in that vertical I think you mentioned some of the products kind of launching later this year.

Speaker Change: Daily benefit so the penetration rates of the core categories. We're in are still very very low I mean, youre talking low single digit given the town and so I think it's going to be a really nice composition of revenue across his and hers across categories across new and all that is.

Andrew: <unk>.

Some level last personalized solution stack.

Andrew: Understanding that a low from a near term volatility how should we think about the timing of subscriber level more normalized in that vertical.

Speaker Change: Coming together to deliver on that 2030, but ultimately I think that's the strength of this business right. As you have a unified brand for men and a unified brand for women under which you have the opportunity to build probably dozens of completely different businesses under the hood with completely different care different treatments.

Andrew Dudum: We took another huge step along this path earlier this morning with the announcement of Nader Kabbani as our new Chief Operating Officer. Nader was an operations leader at Amazon for nearly 20 years, and his experience scaling operations at the highest level makes him uniquely qualified to help us build the future of healthcare. I'm thrilled to formally welcome him to the company today.

Andrew: Maybe I can speak just a sense of a high level about that business unless your guidance. Some of the details I think maria to be.

Andrew: The willingness.

Speaker Change: Current customers different marketing channels, and it's that diversity.

Andrew: <unk>.

Andrew: From our standpoint with that business to take our time and have a long term orientation is really what's happening under the hood.

Speaker Change: And that I think is what really get this business the strength long term.

Andrew Dudum: In addition, I'd like to thank Melissa Baird for over seven years of friendship and dedicated efforts in bringing Hims & Hers to the place we are today. She will be deeply missed, but we are so excited for her in her next phase of life.

Andrew: There is a historical business within sexual health that is really.

Speaker Change: Got it thanks for that.

Maria ribs: We'll take the next question from Maria ribs Canaccord Genuity.

Andrew: Demand business spread.

Andrew: Our heavy viagra based business its a low sticky low attach rate business.

Maria: Oh, great. Thanks, so much for taking my questions.

Andrew Dudum: In closing, we have a clear roadmap, built on a strong foundation and underpinned by innovation and a deep belief in putting the customer at the center of everything we do. The momentum is real and we're just getting started.

Maria ribs: Chris I appreciate all the color on the transition within the sexual health vertical can you maybe just talk about sort of some of the initiatives to reaccelerate growth in that vertical I think you mentioned some of the products kind of launching later this year.

Andrew: Where our patients are coming to you for singularly.

Andrew: Well, we're seeing more and more is that the opportunity to help a growing number of the sexual health patients with a broader set of care things like cardio metabolic care or preventative care or testosterone support or vitamin support.

Maria ribs: Are you planning to move closer a little some level last personalized solutions that understanding.

Yemi Okupe: With that, I'll pass it over to Yemi to talk through our financial performance and updated outlook for 2025. Thanks, Andrew. I'll walk through our financial results for the first quarter before going deeper into our updated outlook for the rest of the year. As Andrew mentioned, we've built a strong foundation and have real conviction in our ability to drive long-term growth. With new partnerships, investments in deeper personalization capabilities, and expansion into new specialties, we're preparing for the next phase of Hims & Hers. We're seeing early proof points that this next chapter is already underway from the strong start in 2025.

Maria ribs: Understanding that.

Maria ribs: So from a near term volatility how should we think about the timing of subscriber reservoir normalizing in that vertical.

Andrew: It's really quite robust.

Andrew: And so what we're doing under the Hood is really accelerating the R&D road map the formularies the form factors to expand into a new set of breadth of services and care within sexual health that not only takes care of the core issue that it came for but also likely some of the contributing elements of their health.

Maria ribs: Maybe I can speak just a high level about that business unless your guidance some of the details I think for it to be.

Maria ribs: The willingness.

Maria ribs: <unk>.

Maria ribs: From our standpoint with that business to take our time and have a long term orientation is really what's happening under the hood.

Andrew: That are driving those side effects. So these types of daily solution.

Andrew: We have more than doubled year over year and they now account for almost 40% of that entire business that trajectory is only only growing and so.

Yemi Okupe: We're continuing to build what we believe is a first-of-its-kind health care platform, one that's more personalized, more accessible, and affordable, that we already see resonating with a growing number of consumers each day. The strength of our platform is clear in the first quarter. Revenue grew 111% year-over-year to $586 million. That momentum is the result of our ability to execute on a strategy that is able to bring a greater precision of care to more people. As our platform expands, we're serving a broader set of customers across our existing specialties and starting to provide value within new specialties.

Maria ribs: There is a historical business within sexual health that is really.

Maria ribs: On demand business spread it's a heavy viagra based business its a low sticky low attach rate business.

We believe it's going to happen over the next couple of years is a continued transition to hyper personalized care.

Maria ribs: Where our patients are coming to you for a singular needs.

Andrew: Continued transition to more daily multi action care and ultimately really are much stickier higher retentive customer that allows us to expand with them as they age.

Maria ribs: Well, we're seeing more and more is that the opportunity to help a growing number of these sexual health patients with a broader set of care things like cardio metabolic care or preventative care or testosterone support vitamin support.

Andrew: I think it was really some of the dynamics taking shape is really unique to the sexual health business, given that's really the only business where the core habit.

Yemi Okupe: We entered the quarter with nearly 2.4 million subscribers, reflecting a year-over-year increase of 38%. Data and insights on our platform are serving as a foundational element in identifying solutions that resonate with a broad base of In the first quarter, over 70% of new subscribers partnered with a provider to obtain access to a personalized solution. Results like this give a strong conviction that we are not simply gaining market share through consumer rotation. Rather, we believe that our strengths, inclusive of our brand, personalized solutions, and technology platform, are allowing us to expand the overall market by democratizing access to higher quality treatment across the country.

Maria ribs: It's really quite robust.

And so what we're doing under the Hood is really accelerating the R&D roadmap to formularies the form factors to expand into a new set of breadth of services and care within sexual health that not only takes care of the core issue that came for but also likely some of the contributing elements of that.

Andrew: Is more of an on demand as needed have it versus the other categories. We operate in that have more of a daily behavior.

Eric: We'll take the next question from Eric.

Speaker Change: I'm sorry, Sir go ahead.

Speaker Change: Now going to temporary I think there's a what I would add to that is as Andrew mentioned over the last two years, we've gone from less than 10% of users, they're receiving the benefit of a daily option that has multiple benefits.

Maria ribs: That are driving those side effects. So these types of daily solutions.

Maria ribs: I have more than doubled year over year and they now account for almost 40% of that entire business that trajectory is only only growing and so what we believe is going to happen over the next couple of years. The continued transition to hyper personalized care.

Speaker Change: I think a daily option provides the ability to do multi condition or also uniquely positioned to do so with our with our internal fulfillment capabilities.

Yemi Okupe: Over the last several quarters, we've leveraged innovation and personalized solutions to start a transformation within our sexual health specialists. Historically, our subscriber base has mirrored the broader industry with respect to an overwhelming majority of consumers utilizing on-demand offerings. Launches of multi-conditioned treatments that fold additional benefits in areas like vitamin support, hair loss prevention, testosterone support, and cardiovascular health are allowing us to elevate the experience for our sexual health subscribers who are increasingly using our daily office. The number of subscribers utilizing a daily offering has more than doubled year-over-year and now represents nearly 40% of sexual health subscribers.

Speaker Change: And so like our belief is as we make that transition and we're already seeing the signs of <unk>.

Speaker Change: Much stronger retention both at the one year Mark them. It also have to kind of get to the two three year Mark.

<unk> transitioned to more daily multi action care and ultimately really are much stickier higher attentive customer that allows us to expand with them as they age. So that I think is really some of the dynamics taking shape is really unique to the sexual health business, given that's really the only business where.

Speaker Change: The way to get to perpetuate that is something that we're very excited by and we've gone from less than 10% of users.

Speaker Change: Those types of solutions to now roughly 40%.

Speaker Change: And given what we've seen we're going to continue to lean into that over the coming years.

Maria ribs: The core habit.

Eric Percher: And the next question is Eric Percher Nephron research.

Maria ribs: Is more of an on demand as needed have it versus the other categories. We operate in that have more of a daily behavior.

Eric Percher: Thank you I appreciate the commentary on the brand opportunity at the top end and maybe I'd ask a bit more tactically. It seems like very clear near term opportunity for you to shift subscribers to commercial dosage is.

Eric: We'll take the next question from Eric.

Yemi Okupe: We are already seeing benefits through signs of stronger retention, with subscribers of Sexual Health Daily offerings demonstrating a nearly 10-point improvement in retention in their first year, relative to on-demand users, with evidence of even stronger retention benefits over time. Our focus remains on driving long-term growth, even if at times that results in near-term temporary headwinds. As we transition our subscriber base toward more premium daily products, we expect some volatility in sex health growth as we recalibrate our approach to messaging and invest in consumer education around the benefits our offerings provide. Over the mid- to long-term horizon, we believe this transition will drive durable growth within our sexual health specialty as a result of increased retention and acquisition efficiency.

Speaker Change: I'm sorry, Sir go ahead.

Speaker Change: Theyre going to memory I think what I would add to that is as Andrew mentioned over the last two years, we've gone from less than 10% of users.

Eric Percher: But it's also pretty clear that the manufacturers will be watching your positioning on personalized <unk> closely. So how do you approach the opportunity for growth in personal lines is that a growth opportunity versus the opportunity to grow via brand partnership.

Speaker Change: They are receiving the benefit of a daily option that has multiple benefits.

Speaker Change: I think a daily option provides the ability to do multi condition or also uniquely positioned to do so with our with our internal fulfillment capabilities.

Eric Percher: Yes, Thats a great question I think we've said this from the beginning.

Speaker Change: So like our belief is as we make that transition and we're already seeing the signs of much stronger retention, but the one year mark but it also has to kind of get to the two three year Mark.

Eric Percher: We aim in all of our adventures to be extremely blue chip.

Speaker Change: We did get to perpetuate that it's something that we're very excited by it.

Eric Percher: And play by the rules and with regard to compounding and the personalization personalization exemption. The rules are extremely straightforward and clear.

Speaker Change: Gone from less than 10% of either.

Yemi Okupe: Despite a significant shift in marketing spend towards weight loss and dynamics from the previously mentioned transition, year-over-year revenue growth outside of our GLP-1 offering remained robust at nearly 30% year-over-year. That's an important proof point. It demonstrates the underlying ability to drive robust growth across our broader business, even in the presence of fewer dollars to drive top of the funnel demand. Growth in the first quarter benefited from a unique opportunity to extend the reach of our platform to aid the more than 100 million Americans impacted by obesity. Our platform empowered our subscribers to pursue their goals with access to personalized solutions and tools customized for their unique journey.

Speaker Change: Those types of situations to now roughly 40%.

Speaker Change: And given what we've seen we're going to continue to I pointed it out over the coming years.

Eric Percher: So we continue to expect the personalized somebody who tied to exist on platform. That's something we've shared as of last call and that's something we shared early with novo but.

Eric Percher: And the next question is Eric Percher Nephron research.

Thank you I appreciate the commentary on the brand opportunity at the top end and maybe I'll ask a bit more tactically. It seems like very clear near term opportunity for you to shift.

Eric Percher: But we also believe that the necessity of that should be limited to women providers feel it is clinically needed.

Eric Percher: So the ability to do hyper personalization for side effects mitigation, whether this is nausea, vomiting muscle loss et cetera.

Eric Percher: Scribe barriers to commercial dosages.

Eric Percher: It's something that we continue to allow on the platform.

Yemi Okupe: We are excited to offer our weight loss subscribers access to an expanding portfolio of solutions through the start of a long-term collaboration with Nova Nordics, one of the most respected companies in medical innovation. This collaboration combines our proven treatments with our ability to deliver personalized, tech-enabled care and services at scale. In the near term, this unlocks another compelling option for subscribers of commercially available dosages of semi-glutide to transition. It's a meaningful validation of our model and a powerful first step in expanding access to effective obesity care across the country. Together, these drivers, the momentum of our weight loss specialty, and the continued adoption of premium personalized solutions are creating tailwinds in subscriber engagement.

Eric Percher: Yes, that's a great question I think we've said this from the beginning.

Eric Percher: Not used commercial doses or or a lot of them have actually tried to commercial dose and that have churned off due to the high side effects right and so we think it's really additive as part of the mix.

Eric Percher: We aim in all of our adventures to be extremely blue chip.

Eric Percher: And play by the rules and with regard to compounding and the personalization personalization exemption. The rules are extremely straightforward and clear.

Eric Percher: And then when we step back as Jimmy said earlier choice.

Eric Percher: Choice and selection on behalf of consumers.

Eric Percher: All with regard to what they are clinically eligible for as well as from a regulatory perspective eligible for is what we believe is our duty to push to give them choice and options that that work and ultimately to the providers to achieve the best outcomes.

Eric Percher: So we continue to expect the personalized somebody who tied to exist on platform. That's something we've shared as of last call. That's something we shared early with novo but.

Eric Percher: But we also believe that the necessity of that should be limited to win providers feel it is clinically needed.

Yemi Okupe: In the first quarter, monthly online revenue per average subscriber climbed to $84, up more than 50% year-over-year. We expect this to moderate as we move through the year, driven by subscriber transitions off of commercially available semi-glutide and typical seasonality in our wait office.

Eric Percher: Thank you.

Eric Percher: And so the ability to do hyper personalization for side effects mitigation, whether this is nausea, vomiting muscle loss et cetera.

Ryan Macdonald: The next question is Ryan Macdonald Needham <unk> company.

Hi, Thanks for taking my question and congrats on a great quarter as we think about.

Eric Percher: It's something that we continue to allow on the platform.

Eric Percher: We continue to give providers that flexibility and the tools to make that type of personalization, but generally we think of it as relatively additive to the ecosystem because for the most part. These are patients that frankly, just cannot use commercial doses or or a lot of them have actually tried to commercial dose and that have churned off due to the <unk>.

The shortage ending here and sort of that transition hurry period for the commercial commercially dosing customers can you talk about what retentions looked like.

Yemi Okupe: Now shifting to investment efficiency and profitability. We have upheld our rigorous capital allocation standards, inclusive of a payback period of less than a year on marketing investments, while concurrently elevating our brand's reach with consumers. As a result of this and prior investments in platform infrastructure, we're seeing real operating leverage as revenues scale. In the first quarter, adjusted EBIT increased to $91 million, nearly triple what we delivered in the same quarter last year. Adjusted EBITDA margins expanded by over four points quarter over quarter to nearly 16%. Gross margins declined approximately 3 points quarter over quarter as GLP-1 revenues scaled.

Ryan Macdonald: On the base and then.

Ryan Macdonald: As you are offering this portfolio approach, where youre seeing sort of those commercial dosage customer shifting into was on the <unk> platform, whether it be personalized.

Eric Percher: Side effects right and so we think it's really additive as part of the mix.

Eric Percher: And then when we step back as Jimmy said earlier choice and selection on behalf of consumers.

<unk> tied oral et cetera.

Ryan Macdonald: Yeah.

Ryan Macdonald: Yes, Brian Great question.

Eric Percher: All with regard to what they are clinically.

Ryan Macdonald: I think on the <unk>.

Ryan Macdonald: The transition we started to communicate this to the patients I think maybe two months ago, when we have visibility of the shortage ending.

Eric Percher: Eligible for as well as from a regulatory perspective eligible for is what we believe is our duty to push to give them choice and options that that work and ultimately to them and the providers to achieve the best outcomes.

Yemi Okupe: We expect improvement in the second quarter as we benefit from economies of scale across our ecosystem and continue augmenting our internal fulfillment capability.

Ryan Macdonald: Most of these patients that are on commercial available doses.

Ryan Macdonald: We're able to qualify for commercial doses that doesn't mean they were qualified for personalized. So you don't see many of US then qualify on the personal personalized side, you see them going to either branded options branded tours appetite.

Yemi Okupe: The first quarter was a significant moment for our marketing efforts on multiple fronts. We lean into upper funnel awareness through our Super Bowl campaign and also invested heavily in specialty-specific marketing campaigns within WAVE. Despite this, we achieve record level efficiency on our marketing. Marketing spent in the first quarter was 39% of revenue, reflecting an improvement of 8 points year-over-year and over 6 point improvement from last quarter. These efficiency gains were driven by a few factors. First, we saw retention gains from a shift toward personalized solutions in our subscriber base, as well as benefits from a shift toward more premium daily options in our sexual health office.

Eric Percher: Thank you.

Ryan Macdonald: The next question is Ryan Macdonald Needham <unk> company.

Ryan Macdonald: Hi, Thanks for taking my questions and congrats on a great quarter.

Speaker Change: We think about the shortage ending here and sort of that transition hurry period for the commercial commercially dosing customers can you talk about what retentions looked like on the base and then.

Ryan Macdonald: Or majority branded will go away now.

Ryan Macdonald: Well as the generic options such as layer glu tied injections or in the oral compounds.

Ryan Macdonald: The oral compounds all kind of say this because I think are often overlooked.

As you are offering this portfolio approach, where you're seeing sort of those commercial dosage customers shifting into was on the <unk> platform, whether it be personalized.

Ryan Macdonald: This is a real.

Ryan Macdonald: Really compelling offering for consumers.

Ryan Macdonald: That is.

Ryan Macdonald: In high demand across the platform, both pretty shortage shortage didn't matter and when you really think about why.

Yemi Okupe: Second, we dramatically raised the bar for marketing and investment across our non-weight special. This gave us the ability to support a one-minute Super Bowl campaign in specialty-specific marketing our way off. Rotation takes time to do efficiently, so we chose to reduce overall spend as opposed to recalibrate weight-related spend to other categories after the end of the semiglutide shortage in February. Lastly, we're seeing more subscribers come to our platform through organic and other lower cost We believe this is a reflection of investments that are extending the reach of our brand as well as benefits stemming from high advocacy from subscribers in our more visible special.

Speaker Change: <unk> oral et cetera.

Speaker Change: Okay.

Speaker Change: Yes, Brian Great question.

Ryan Macdonald: It would be as you were getting about two thirds of the weight loss as brands will go over for one third of the cost.

Speaker Change: I think on the <unk>.

Speaker Change: The transition we started to communicate this to patients I think maybe two months ago, when we have visibility of the shortage ending.

Ryan Macdonald: So when we think about even the future of the next year in Q1, you see on brand oral <unk> coming to market.

Speaker Change: Most of these patients that are on commercial available doses.

Ryan Macdonald: Those expensive medicines are also going to compete with our oral treatments, which are again two thirds of the weight loss for one third of the cost and so we have I think a really nice set of variety for patients, but generally youre seeing them.

Speaker Change: We're able to qualify for commercial dose, but that doesn't mean they were qualified for personalized. So you don't see many of US then qualify on the personal personalized side do you see them going to either branded option branded tours appetite.

Yemi Okupe: Leverage further down the P&L continues to increase as we thoughtfully scale operations. GNA as a percentage of revenue improved 4 points year over year to 8%. Operations and support improved three points year-over-year to 11%. Those games reflected ongoing automation, verticalization, and improved efficiency across Fiscal discipline is driving significant cash flow generation. Cash flow from operations was $109 million, which translated into free cash flow of $50 million. At quarter end, we had $323 million in cash and short-term investments on the balance. Strong free cash flow is enabling us to expand capabilities across our operations.

Flip between the generics of treatments like the oral is in <unk> and then also those that are capable of paying for the branded options as well.

Speaker Change: Our <unk> brand and will go away now as well as the generic options such as layer glu tied injections or in the oral compounds.

Ryan Macdonald: Yeah.

Speaker Change: The oral compounds.

Daniel: We'll take the next question today from Daniel growth slight city.

All I can say this because I think are often overlooked.

Daniel: Hi, Thanks for taking the question.

Speaker Change: This is a really compelling offering for consumers.

Speaker Change: Andrew I have a similar question, but I'm curious if you can provide what percent of folks who are on commercially available doses transition to personalized doses and when you were inking. The partnership with Novo was there any discussion around limiting.

Speaker Change: As.

Speaker Change: In high demand across the platform, both pretty shortage post shortage it didn't matter and when you really think about why it's.

Speaker Change: It's because you are getting about two thirds of the weight loss as brands will go for one third of the cost and so when we think about even the future of the next year in Q1, you see on brand oral <unk> ones coming to market.

Daniel: Yes.

Daniel: The uptake of personalized doses that you're offering and then finally just given some recent lawsuits that were filed against competitors of yours can you just put a finer point.

Yemi Okupe: In the first quarter, we invested $59 million into CapEx to augment our operations across a few areas. First, we continued investment to expand capacity for personalized offerings, setting the stage to be able to offer our subscribers access to more precise care by unlocking capacity for thousands of We recently signed a lease for a larger facility in Arizona that expands our nationwide internal fulfillment footprint from approximately 400,000 square feet to nearly 700,000 square feet. Second, we made investments to efficiently unlock scale through greater automation. While we are still early in our journey, automation provides a path to unlocking thousands of choices for our subscribers in an efficient manner.

Speaker Change: Those expensive medicines are also going to compete with our oral treatments, which are again two thirds of the weight loss for one third of the cost and so we have I think a really nice set of variety for patients, but generally youre seeing them.

Daniel: For us on our hands as a corporate entity interacts with its affiliated provider groups.

Daniel: When making medical decisions.

Speaker Change: Great great questions in there.

Speaker Change: On the commercial doses that transitioned to noncommercial I don't think Thats something we disclose unfortunately Daniel.

Speaker Change: Between the generics of treatments like the oral is in <unk> and then also those that are capable of paying for the branded options as well.

Speaker Change: On the personalized stomach flu type standpoint.

Speaker Change: One of the things that we did talk about with Novo early is just what we believe is appropriate use of personalization.

Speaker Change: Yeah.

Daniel Gross: We'll take the next question today from Daniel gross like city.

Yemi Okupe: We upgraded equipment in the first quarter across several of our facilities, further enabling us to make the vision of precision medicine a reality. Finally, we invested in infrastructure to unlock sterile fulfillment capacity across our facilities. This provides a platform for more efficient fulfillment of specialties we are in today, such as weight, and those that we expect to be in the future, such as low testosterone, that require sterile capability.

Speaker Change: And online.

Speaker Change: Hi, Thanks for taking the question.

Speaker Change: Philosophically with with what our providers believe is that clinical necessity.

Speaker Change: Andrew I have a similar question, but I'm curious if you can provide what percent of folks who are on commercially available doses transition to personalized doses and when you were thinking the partnership with Novo was there any discussion around <unk>.

Speaker Change: There is an alignment.

Speaker Change: For what we believe to be blue chip use of that compounding exemption.

Speaker Change: Again, it is for patients that are suffering from.

Speaker Change: Some type of intolerable dynamic where our commercial available dose is not actually an option for them. So this is side effect sensitivities nausea, vomiting muscle loss et cetera. These are all this is all super well documented I think.

Speaker Change: Yes.

Speaker Change: The uptake of personalized doses that you're offering and then finally just given some recent lawsuits that were filed against competitors of yours can you just put a finer point.

Yemi Okupe: In the coming quarters, we will also invest to expand our lab diagnostic capability. This capability unlocks several benefits, such as reduced consumer barriers within new specialties, greater health-related insights for a subscriber base, and a wider assortment of more precise personalized This, combined with our other investments, will serve as a critical component for the next phase of growth, enabling us to more efficiently provide access to precision medicine to a broader population.

Speaker Change: For us an hour and a corporate entity interacts with its affiliated provider groups.

Speaker Change: Patients notice providers know this and giving them the opportunity to have those discussions and see what is right for them is really where we lead it.

Speaker Change: Making medical decisions.

Speaker Change: Great great questions in there.

Speaker Change: When you ask about and this goes to your third point was there any conversation about limiting the type of behavior and then how do our providers interact with us as a corporate entity.

Speaker Change: On the commercial doses that transition to non commercial I don't think thats something we disclose unfortunately Daniel.

Yemi Okupe: With that, I will now walk through our guidance in longer term. In the second quarter, we expect revenue between $530 million to $550 million, representing year-over-year growth of between $68 million to $74 million. We are anticipating an adjusted EBITDA in the range of $65 to $75 million, reflecting a 13% margin at the mid-term.

Speaker Change: On the personalized somewhat guotai standpoint.

Speaker Change: As a corporate entities do not do anything.

Speaker Change: One of the things that we did talk about with Novo early is just what we believe is appropriate use of personalization.

Speaker Change: It's very hard to not engage with provider group when it comes to clinical decision, making right. There is a very.

Speaker Change: And online.

Speaker Change: Philosophically with with what our providers believe is that clinical necessity.

Speaker Change: Three strong wall, there where providers have independent judgment in collaboration with their patients to figure out what is best and so.

Yemi Okupe: For the full year, we expect revenue between $2.3 and $2.4 billion, up 56 to 63% year-over-year. We are anticipating adjusted EBITDA in the range of $295 to $335 million, reflecting a 13% margin at the mid-term.

Speaker Change: So there is an alignment.

Speaker Change: What we believe to be blue chip use of that compounding exemption.

Speaker Change: No organizations have asked us to alter that nor.

Speaker Change: Again, it is for patients that are suffering from.

Speaker Change: Nor would we ever alter that.

Speaker Change: Because again, our role is simply to be the mediator, but our role is to bring together patients providers and great treatments, let those providers and patients and it was great treatments to do the rest of the world.

Some type of intolerable dynamic where a commercial available dose is not actually an option for them. So this is side effects sensitivities nausea, vomiting muscle loss et cetera. These are all this is all super well documented I think.

Yemi Okupe: Embedded in our outlook are a few key assumptions that reflect the intentional evolution of our platform and how we're setting ourselves up for long term success. First, we expect continued strong growth across many of our most tenured offerings, including mental health, as well as men's and women's dermatology, all of which are benefiting from years of investment in brand, retention, and personalized offers. That said, while sequential and year-over-year growth is expected to continue, we do expect uneven trends in sexual health as we navigate transitions in the treatment system. which we believe is temporary as new daily personalized solutions gain traction.

Speaker Change: Next step we'll take a question from John Kim TD Cowen.

Speaker Change: Patients notice providers know this and giving them the opportunity to have those discussions and see what is right for them is really where we leave it.

John Kim: Thank you for taking my question I wanted to get further color on the monthly event in line, obviously grew nicely quarter over you mentioned moderating throughout the year, how should we just think about the put that and take there.

Speaker Change: When when you ask about and this goes to your third point was there any conversation about limiting the type of behavior.

John Kim: And would love additional color on the oral medication you mentioned.

Speaker Change: And then how do our providers interact with us as a corporate entity.

John Kim: So any more people opting into that any color on how youre thinking about that opportunity within this year and going forward would be helpful. Thank you so much.

Yemi Okupe: We're already starting to see encouraging signs of momentum that we believe will strengthen with the addition of new offerings over the course of the year.

Speaker Change: Corporate entities do not do anything and.

Speaker Change: And tried very hard to not engage with provider group when it comes to clinical decision, making right. There is a very strong wall, there where providers have independent judgment in collaboration with their patients to figure out what is best and so.

Yemi Okupe: Second, we expect to complete the transition of subscribers previously on commercially available dosages of semi-glutide to either appropriate alternatives on our platform or other platforms entirely by the end of the second quarter. This transition is expected to result in a one-time quarter-over-quarter revenue drop in the second quarter from which we are confident we can continue to build upon through the remainder of the year. Third, we expect gross margins to expand in the second quarter. Based on the information that we see today, our expectation is that operational efficiency gains and growth from more tenured specialties can offset potential headwinds from macroeconomic factors such as tariffs.

John Kim: Yeah. Thanks for thanks for the question Gena I think with respect to the monthly online average revenue per subscriber.

Speaker Change: No organizations have asked us to alter that.

John Kim: And I think that we do.

John Kim: Do you expect to see some headwinds in the second quarter as they start to pull off users that were on.

Speaker Change: Nor would we ever alter that.

Speaker Change: Because again, our role is simply to be the mediator right. Our role is to bring together patients providers and Gregory treatments, let those providers and patients and it was great treatments to do the rest of the world.

John Kim: Commercially at all because it is a semi grade time.

John Kim: There will be a headwind I think the <unk> will be things such as the branded partnerships.

John Kim: From.

John Kim: Yeah.

Speaker Change: Next step we'll take a question from Jon Atkin TD Cowen.

John Kim: As well as more and more users continue to begin to adopt the premium premium products across our other specialties, but tend to be.

Yemi Okupe: Fourth, we expect some volatility in marketing efficiency from quarter to quarter. In the second quarter, we expect to lean into specialty-specific marketing across a broader set of specialties, which may result in some deleverage.

Jon Atkin: Thank you for taking my question I wanted to get further color on the monthly event in line. Obviously grew nicely. This quarter. When you mentioned moderating throughout the year, how should we just think about to put that and take there.

John Kim: And our sexual health more daily in nature.

John Kim: They come at a premium relative to the.

Yemi Okupe: We remain committed to our capital allocation framework, which calls for a payback period of less than a year. Rigorous adherence to this framework, combined with evolving dynamics, such as increased acquisition via lower cost channels, stronger retention from personalized products, and the continued maturation of our subscriber base, provide us with confidence in our ability to continue driving one to three points of marketing leverage per annum. Lastly, we expect long-term revenue retention to remain above 85% as more subscribers engage with personalized solutions across multiple specialties.

John Kim: The generics I think with respect to the.

Jon Atkin: And would love additional color on the oral medication, you mentioned potentially more people opting into that any color on how you're thinking about that opportunity within this year and going forward would be helpful. Thank you so much.

John Kim: The oral medication I think in order to stay on it if you take a step back.

John Kim: Across all of our specialty breadth of choice is a key tenet.

John Kim: We fundamentally believe into topics that's when it gets what's driven success across.

John Kim: All of our historical specialty such as men's and women's dermatology sexual health amongst others and so when we think around the weight category and how there is a 100 million Americans across the country that are that are suffering.

Speaker Change: Yes, thanks, and thanks for the question John I think with respect to the monthly online average revenue.

Per subscriber.

Speaker Change: And I think that we know.

Speaker Change: Do you expect to see some headwinds.

John Kim: From obesity related challenges I think that they're in that specialty more than ever having a breadth of choice will be absolutely critical and so across each of the elements that we've launched we've seen a lot of traction a lot of added to your Tam I think the oral medications of engine mentioned are at very attractive.

Yemi Okupe: Before going to Q&A, I'll take a moment to provide additional color on our long-term target. When we close out our 2022 fiscal year, momentum allowed us to paint a picture of what we thought our financial profile in 2025 could look like. At least $1.2 billion in revenue and $100 million of adjusted EBIT. Exceptional execution enabled us to achieve those targets a year early, as well as potentially deliver revenue and adjusted EBIT in 2025 that could be almost two times and three times higher than the original floor's receipts.

Speaker Change: Second quarter as we start to pull off.

Speaker Change: Users that were on.

Speaker Change: Commercially at all because it is a semi grade time.

Speaker Change: That will be a headwind I think the <unk> will be things such as the branded partnerships.

Speaker Change: From.

Speaker Change: I forgot what it is.

John Kim: The price points as low as $60 million a month.

Speaker Change: As well as more and more users continue to weigh into your adopt the premier premium products across our other specialties that tend to be.

John Kim: They also carry.

John Kim: Do not carry the same eligibility requirements.

John Kim: The other.

Speaker Change: So it's been our sexual health more daily in nature.

John Kim: Anyone oriented medications and so as a result.

Speaker Change: I can come at a premium relative to the.

Yemi Okupe: More importantly, these execution patterns and the growth levers ahead position us to update our longer-term perspective on what we believe the financial profile of Hims & Hers can look like in the coming years. We believe that we can achieve at least $6.5 billion in annual revenue and $1.3 billion in adjusted EBITDA by 2030. Our ability to deliver these targets is predicated on continued execution across the levers outlined by Andrew that further solidify our strategic advantage. Deepening of Personalization, Specialty Expansion, Elevating the Subscriber Experience, Fostering Innovative Partnerships, and lastly, Geographic.

John Kim: Seems very robust growth in the subscriber count growing north of three.

Speaker Change: The generics I think.

Speaker Change: With respect to the.

John Kim: 300% year over year.

Speaker Change: The oral medication I think order to a standard that can take a step back.

We would expect to continue to see strong growth as a result of those dynamics.

Speaker Change: Across all of our specialty is the breadth of choice is a key tenet.

George Hill: George Hill from Deutsche Bank has the next question.

Speaker Change: We fundamentally believe into topics. That's I think that's what's driven success across.

John Kim: Yes.

Speaker Change: Noon guys and thanks for taking the question I wanted to come back to Daniel's question about the relationship between Novo and hams and I guess like.

Speaker Change: All of our historical specialty such as men's and women's dermatology sexual health amongst others and so when we think around the weight category and how there is a 100 million Americans across the country that are that are suffering.

Speaker Change: Like there's kind of this natural tension between the dispensing of the personalized product and the <unk>.

Speaker Change: Commercial will go with you guys are selling so was there any like.

Speaker Change: From obesity related challenges I think that they're in that specialty more than ever having a breadth of choice will be absolutely critical and so across each of the elements that we've launched we've seen a lot of traction a lot of attitude to your Tam I think the oral medications with venture mentioned are at very attractive.

Speaker Change: Action or any discussion around.

Speaker Change: Like a ratio of the dispensing of the personalized products versus the commercial product and just Andrew I would just be I really shouldn't it back and like is there any risk that like novo whatever poll. The commercial relationship with you guys. If personalized kind of sold to well do we just kind of love the background of the discussions around that.

Yemi Okupe: We expect the majority of our investment in the coming years to be organic, but we'll continue to ensure that our financial position affords us the flexibility to opportunistically accelerate our roadmap to strategic acquisition. 2025 is off to a great start, and we are excited by the momentum we continue to see across the business. Consumers continue to turn to us as a solution for a better and more precise health care experience, and we believe this will accelerate as we continue to build upon the already strong foundation that we've built. Data enriched by each additional user on the platform will enable us to further refine our personalized offerings, elevating the experience for our subscribers, and taking us one step further toward the reality of Hims & Hers becoming synonymous with high-quality personalized content.

Speaker Change: The price points as low as $60 million a month.

Speaker Change: They also carry.

George Hill: Yes, Thanks George.

Speaker Change: We do not carry the same eligibility requirements.

Speaker Change: Again, I think there is within both organizations.

Speaker Change: The other.

Speaker Change: Anyone oriented medications and so as a result.

George Hill: A found.

George Hill: Foundational appreciation for the fact that clinical decision, making is truly independent.

Speaker Change: Seems very robust growth in the subscriber count growing north of 300% year over year, and so I think we would expect to continue to see strong growth as a result of those dynamics.

George Hill: And as you cite I truly cannot emphasize that enough.

George Hill: Yes.

George Hill: Providers make decisions on our platform.

Speaker Change: George Hill from Deutsche Bank has the next question.

George Hill: We give providers and patients choices of treatments and.

Speaker Change: Yes.

Yemi Okupe: I'd like to thank our customers, partners, and employees for helping us deliver these outstanding results, and we look forward to continuing to update you on our progress.

George Hill: Hey, guys and thanks for taking the question I wanted to come back to Daniel's question about the relationship between Novo and him and I guess like.

George Hill: And ultimately what it is right for them as their own discretion.

George Hill: I think.

George Hill: We strongly believe that it's really important that we maintain that independence. So this idea even of ratios.

Operator: With that, I'll turn it back to Bill to kick off Q&A with two questions from our retail. Thanks, Yemi. And thank you. Thank you to all the investors that have questions over the weekend.

George Hill: Like there's kind of this natural tension between the dispensing of the personalized product.

Speaker Change: Can the commercial will go with you guys are selling so was there any.

George Hill: I think things of that sort of like that as business impacting clinical decision, making in a way that is something we're definitely not comfortable with nor do I think frankly any organization will be comfortable with because it's stepping on the toes as provider discretion. So well we agreed to philosophically was what the regulation along.

George Hill: Like interaction or any discussion around.

Operator: We're very excited to continue engaging with this growing part of our investor We received quite a few questions on the recently announced collaboration with Novo Nord. This is a multi-part question from both the Hemp House community and Pyrus. Can you elaborate on the future roadmap Hims & Hers and Novo Nordisk are developing together, and what do you see as the next possible steps on this roadmap? Over time, could Hims platform play a role in partnering with companies with newly approved drugs for the sake of post-approval monitoring of side effects and efficacy?

George Hill: Like a ratio of the dispensing of the personalized product versus the commercial product and just Andrew I would just be I really be shouldn't it back and like is there any risk that like novo whatever pull the commercial relationship with you guys. If personalized kind of sold to well do we just kind of love the background of the discussions around that.

Speaker Change: <unk> right and we made it very clear, we believe that personalized and my Blue tide is both clinically necessary for some patients.

George Hill: Yes, Thanks George.

George Hill: Again, I think there is within both organizations.

George Hill: A.

Speaker Change: Because of the side effects that are very widespread and well known and that the regulation under the compounding exemption specifically under the personalized 503 A's right. We're not talking about bulk manufacturing during the shortage. We are talking about personalization of the facilities that is regulatory lease protected. So I think there is an alignment depo.

George Hill: Foundational appreciation for the fact that clinical decision, making is truly independent.

Andrew Dudum: Thanks, Bill. So on the Novo side, this is a collaboration we're excited by. The teams across both organizations have been spending quite a bit of time together sharing meals and really aligning on what we think the future of health care looks like. And I think there's real excitement around that shared vision. So, you know, when I step back, I think there's a real set of opportunities, hopefully across categories, across Novo product lines, potentially across geographies that we are brainstorming and, you know, hopefully in the coming quarters can give a little bit more precise roadmap with regard to what some of those offerings can be.

Speaker Change: And as you say.

George Hill: Truly cannot emphasize that.

George Hill: <unk>.

George Hill: Providers make decisions on our platform.

George Hill: We give providers and patients choices of treatments and.

And ultimately what is right for them as their own discretion.

Speaker Change: With the regulation.

Speaker Change: Allows for it and we believe there is a need whether or not there is total agreement with regard to how much of that.

George Hill: I think.

Speaker Change: We strongly believe that it's really important that we maintain that independence. So this idea even of ratios.

Speaker Change: Should be available to what types of consumers.

Speaker Change: Things of that sort of like that as business impacting clinical decision, making in a way that is something we're definitely not comfortable with nor do I think frankly any organization would be comfortable with because of stepping on the toes as provider discretion. So well we agreed to philosophically was what the regulation allow.

Speaker Change: Although it will our organization's ever align on that perfectly probably not.

Speaker Change: But I think the reality is and I think everybody is stepping back and realizing this reality.

We have millions of patients on <unk> platform, we have 10% to 15000.

Andrew Dudum: Generally, I think this type of a partnership, though, is a blueprint for what what we think the next five and 10 years could look like across categories, right? There are incredible innovations happening in biotech. There are incredible innovations happening around diagnostic testing, preventative testing. And when we think about the platform that we have and the growing consumers that we are caring for, our ability to bring together a very disjointed set of players and broaden the ecosystem in a way where everybody really wins, I think it's something that uniquely Hims & Hers can do. And so, you know, this is an exciting first step with Novo.

Speaker Change: Patients, we're treating every single day.

Speaker Change: <unk> right and we made it very clear we believe that personalized semi blue tide is both clinically necessary for some patients.

Speaker Change: And they are looking for options.

Speaker Change: And so in a world where.

Speaker Change: Great Medicine is trying to find the patient that needs their option. It makes sense to work with him and her and I think we have a responsibility to do that in the right way to do it in a respectful way to play by the book and to respect all parties, but I think that's where we as a <unk>.

Speaker Change: Cause of the side effects that are very widespread and well known.

Thats the regulation under the compounding exemption specifically under the personalized 503 A's right, we're not talking about bulk manufacturing during the shortage, we are talking about personalization of the facilities.

Speaker Change: Distribution platform.

Speaker Change: That is regulatory really protected so I think there is an alignment that both the regulation.

Speaker Change: Can really bring the ecosystem together.

Speaker Change: Whether these players traditionally fight each other or compete with each other might not matter is ultimately end of the day, we have millions of patients coming to US every day looking for choice and we want to make sure. They have the broadest choice possible that type of alignment is something that everybody I think can I greet you as something that benefits every.

Speaker Change: Allows for it and we believe there is a need whether or not there is total agreement with regard to how much of that.

Speaker Change: Should be available to what types of consumers.

Andrew Dudum: And I think we're really looking forward to what can be possible in the next few years. And there's also, I think, you know, a whole new avenue of opportunities across treatment types, across testing capabilities, across clinical providers, where we can bring our ecosystem and theirs together on behalf of the consumer to ultimately be the curator of what we believe to be world-class healthcare.

Speaker Change: Well, our organization's ever a line on that perfectly probably not.

Speaker Change: But I think the reality is and I think everybody is stepping back and realizing this reality is that we have millions of patients on <unk> platform, we have 10 to 15000.

Speaker Change: Body.

Speaker Change: And I think as long as there is trust between organizations at the way in which those patients receive care is independent.

Speaker Change: And driven by clinical best practices.

Speaker Change: Patients, we're treating every single day.

Speaker Change: And then I, then I hope that we're able to have a really long tenured relationship with many partners like us.

Speaker Change: And they are looking for options.

Speaker Change: And so in a world where.

Andrew Dudum: Thanks, Andrew.

Operator: We also received a number of questions on the recently announced Acquired Peptide and Lab Testing Facilities.

Speaker Change: And our next question will come from David Larsen BTG.

Speaker Change: Great Medicine is trying to find the patient that needs their option. It makes sense to work with him and her and I think we have a responsibility to do that in the right way to do it in a respectful way to play it by the book and to respect all parties, but I think that's where we as a <unk>.

David Larsen: Hi, congratulations on the good quarter.

Andrew Dudum: This one comes from Nick G., who asks, What type of longevity product is the team looking to build for its customers with the recent acquisition of the peptide facility? And how does this facility fit in with the plan to roll out lab testing and grow your ability to offer precise and more targeted treatment? Yeah, it's a great question. Thank you for asking that. We we are continuing to invest across the stack in innovative operations and capabilities that can deliver really cutting edge care for patients. Peptide innovation is expanding very, very rapidly. This is something our team is really paying attention to that I am paying attention to deeply.

David Larsen: Can you talk about your willingness or ability or desire to at some point in time take insurance. It seems to me like if you were taking insurance you would potentially be more aligned with drug manufacturers when the price of their brand products are fairly high because of the members could then have those products covered by insurance.

Speaker Change: Distribution platform.

Speaker Change: Can really bring the ecosystem together.

Speaker Change: Whether these players traditionally fight each other or compete with each other money not matter is ultimately the end of the day, we have millions of patients coming to US every day looking for choice and we want to make sure. They have the broadest choice possible that type of alignment is something that everybody I think can and greet you as something that benefits every.

David Larsen: Parker costs wouldn't be somehow so can you talk about that please and then also what is your relationship with Lilly.

Speaker Change: Are you connected with Lilly direct and.

Speaker Change: Just any any thoughts around your relationship with Lilly would be very helpful. Thank you.

Andrew Dudum: And this is across a lot of different areas. It's across pain management. It's across recovery. It's across generalized longevity. And when I think of those types of categories, the innovation happening in peptides is generally innovation that's accessible really to only the extreme wealthy subset of the population. And I think, like all Hims & Hers approaches, we aim to invest in the innovative infrastructure for these cutting edge areas of therapeutics to broaden what a small subset of the population has to the masses at affordable and hyper personalized scale. So the peptide facility, I think it's going to be a really vital component of this future platform.

Yes. Thanks.

Speaker Change: And I think as long as Theres trust between organizations at the way in which those patients receive care is independent.

Speaker Change: On the insurance side, no I have very very low interest in figuring out how to integrate insurance.

Speaker Change: And driven by clinical best practices.

Speaker Change: And I think there's a few reasons.

Speaker Change: I hope that we're able to have a really long tenured relationship with many partners like us.

Speaker Change: But mostly it's because it is extremely complicated and extremely inefficient for consumers.

Speaker Change: And our next question will come from David Larsen BTG.

Speaker Change: So today the vast majority of the country has insurance as we know.

David Larsen: Hi, congratulations on a good quarter.

Speaker Change: And the vast majority of those people have high deductible insurance plans and so what that means is on average patients that are coming to his and hers platform are fully covered by insurance, but they have let's say two to $3000 annual deductible that they have to pay in cash before they get the benefit of one dollar of insurance.

Andrew Dudum: And I think you'll see with the intersection of lab testing and longevity, us taking a more proactive and preventative care model on the platform, making some of these more diagnostic and action based cares just easier for people.

Speaker Change: And so everybody is insured in this country almost nobody is actually getting the benefit of insurance is essentially a cash pay system. Today people are just paying very very high co pays.

David Larsen: Pocket costs wouldn't be so high so can you talk about that please and then also what is your relationship with Lilly.

David Larsen: Are you connected with Lilly direct and.

Speaker Change: And very few ever actually get the benefit of insurance and lessens. The two catastrophic situation. So when I think about him his and hers and general health and wellness kind of everyday health care I'm, not talking about catastrophic care, but everyday health care.

David Larsen: Just any any thoughts around your relationship with Lilly would be very helpful. Thank you.

Operator: And so instead of people coming just to Hims & Hers for a very specific condition, such as hair loss, sexual health, mental health, etc., I also think you're going to start seeing offerings in the next couple of years that are more about gaining understandings of your health and taking that first step to be the most optimized you can for not only yourself, but also your family. Great. Thanks, Andrew. And thanks again to all who sent in questions over the weekend.

David Larsen: Yes, Thanks, David.

David Larsen: On the insurance side, no I have very very low interest in figuring out how to integrate insurance.

Speaker Change: Think consumers, having choice selection using their cash where they want on services and providers.

David Larsen: And I think there's a few reasons.

Speaker Change: <unk> delivered a really high NPS experiences that's going to be the gold standard.

David Larsen: But mostly it's because it is extremely complicated.

Speaker Change: Because it's a basic capitalistic environment, where competition will drive great quality experiences will drive the cost down and obviously ultimately drive great.

David Larsen: And extremely inefficient for consumers.

David Larsen: So today the vast majority of the country has insurance as we know.

Operator: With that, I will pass the call back to the operator to begin the analyst Q&A. Thank you, sir. And just a reminder, it is star one to ask a question on the phone.

David Larsen: And the vast majority of those people have high deductible insurance plans and so what that means is on average patients that are coming to the engineers platform are fully covered by insurance, but they have let's say a two to $3000 annual deductible that they have to pay in cash before they get the benefit of one dollar of insurance and <unk>.

Speaker Change: <unk>.

Speaker Change: Places for these people to put their money and I think what's happening right. Now for example in the obesity market as a really great example of that great.

Craig Hettenbach: We'll go first to Craig Hettenbach, Morgan Stanley. Great, thank you. On the weight loss category and the target for $725 million in revenues this year, can you just touch on what you see as the key drivers in just looking for color across how the personalized offerings are going? I saw some commentary in the letter about the oral offerings very strong, and you also have lyriglutide. So just, you know, kind of how you see the buildup to weight loss this year and how you're tracking for that target. Yeah, thanks for the question, Craig. You know, when we when we laid out the targets for 2025, we were aware that the shortage was coming to an end.

Speaker Change: Pressure that hinson hers is putting by aggregating millions of patients who need choice.

David Larsen: So everybody is insured in this country almost nobody is actually getting the benefit of insurance is essentially a cash pay system. Today people are just paying with very very high co pays.

Speaker Change: <unk> is a huge component and why.

Speaker Change: Some of the most important Medicaid medicines over the last decade, and probably the next decade are now being priced in the hundreds of dollars not thousands of dollars range. So we want to be a party to everybody in the ecosystem, but we also want to put the consumer first.

David Larsen: And very few ever actually get the benefit of insurance and lessens. The two catastrophic situation. So when I think about him his and hers and general health and wellness kind of everyday health care I'm, not talking about catastrophic care, but everyday health care.

Speaker Change: Ahead of all and when I think about insurance and alignment.

David Larsen: I think consumers, having choice selection using their cash where they want on services and providers.

Speaker Change: I believe we should be able to care for patients.

Andrew Dudum: And so we kind of outlined last quarter that we, you know, effectively would assume that all of the folks that were on commercially available decisions of semi-glutide would be off the platform by Q2. And that's largely holding in line with our expectations. Across all of our specialties, what we've historically really leaned into to have success is really offering our subscribers a breadth of numerous different options. And so I think we're very pleased in the late-loss specialty to, you know, recently and in the past quarter launched several additions to the specialty that we believe will give us the ability to meet or exceed the 725 target.

Speaker Change: On a cash pay price for most of the things that affect us day to day equal to or cheaper than the co pays on their insurance plan and so far we're pretty damn close to pulling that off for most categories, but I think that's kind of the ambition that we want to.

David Larsen: Deliver a really high NPS experiences that's going to be the gold standard.

David Larsen: Because it's a basic capitalistic environment, where competition will drive great quality experiences will drive the cost down and obviously ultimately drive great.

Speaker Change: Keep pushing on for the next five to 10 years.

Speaker Change: With regard to Lilly, we would love to continue to broaden the partnership opportunities on the platform we have branded <unk>.

David Larsen: Valuable.

David Larsen: Places for these people to put their money and I think what's happening right. Now for example in the obesity market as a really great example of that great.

Speaker Change: Zero in that bound.

Speaker Change: Hence on the platform there are thousands of dollars.

David Larsen: Pressure that hinson hers is putting by aggregating millions of patients who need choice.

Speaker Change: Not through a direct partnership integration with Lilly directed just through us going through the pharmaceutical supply chain.

David Larsen: It's a huge component in y.

Andrew Dudum: And so we recently launched Allure Glutide, as well as through the partnership or the collaboration we spoke around with Novo Nordics to bring the branded pens on, as well as, you know, the existing products we had within the weight specialty, such as personalized semi-glutide and the oral offering. And so we're seeing continued strength across all of those. That gives us the conviction to reiterate the top-line revenue guidance, as well as lift the adjusted EBIT guidance.

David Larsen: Some of the most important Medicaid medicines over the last decade, and probably the next decade are now being priced in the hundreds of dollars not thousands of dollars range. So we view one of the parties to everybody in the ecosystem, but we also want to put the consumer first.

Speaker Change: We have had conversations with that organization, we continue to have conversations with the leadership of that organization.

Speaker Change: This point, we've not been able to bring those offerings onto the platform.

Speaker Change: We hope that we can.

Speaker Change: And so we'll continue to push in and fight on behalf of consumers to broaden their reach but as of this point theres nothing yet to disclose with regard to the lead products directly integrated.

David Larsen: Ahead of all and when I think about insurance and alignment.

I believe we should be able to care for patients.

David Larsen: On a cash pay price for most of the things that affect us day to day equal to or cheaper than the co pays on their insurance plan and so far we're pretty damn close to pulling that off for most categories, but I think that kind of the ambition that we want to.

Speaker Change: Next is Aaron Kessler from Seaport global.

Yes, great a couple of questions maybe just on gross margins how to think about that through the remainder of the year and maybe any color on the branded partnerships margin and then just you mentioned kind of longevity sleep and preventative as opportunities how are you thinking about those opportunities specifically thank you.

Andrew Dudum: Thanks.

Andrew Dudum: And then just a follow-up question for Andrew, when I think about the 2030 targets, can you just touch on just kind of the core business as it stands today, like just the runway for growth that you still see in some of the core categories, and then also just the importance of newer categories that come in to track to that $6.5 billion. Yeah, it's a great question, Craig. You know, I think what gives us confidence is that you're seeing incredible robustness in both of those segments. You know, some of the new innovative categories like the metabolic health and the obesity care across Hims & Hers, obviously big accelerant.

David Larsen: Keep pushing on for the next five to 10 years.

David Larsen: With regard to literally we would love to continue to broaden the partnership opportunities on the platform we have branded <unk>.

Speaker Change: Great I'll take the first question and maybe I'll toss it over to Andrew for the second I think on gross margins.

David Larsen: <unk> ends up bound.

David Larsen: Hence on the platform there are thousands of dollars. So this is not through a direct partnership integration with Lilly directed just through us going through the pharmaceutical supply chain.

Speaker Change: We do expect those to sequentially.

Andrew: Increase I think as we look into the ecosystem, we see a couple of things wanted us to benefit from economies of scale.

David Larsen: We have had conversations with that organization, we continue to have conversations with the leadership of that organization.

Speaker Change: The second is we do expect.

Speaker Change: Strength in growth outside of our jumping off grain, which historically have come at different margin profile currently.

Andrew Dudum: We believe those businesses will be very, very important businesses, just given the pure population that is really struggling. But then when you actually look under the hood at some of the more legacy categories, you know, those are growing incredibly robustly, right? You've got the Hims & Hers dermatology businesses growing 50% plus year over year. Those businesses have really been transformed with personalization where, you know, north of 80% of those businesses are now with personalized proprietary SKUs, having driven a 20-point retention gain in just the last couple of years. You see the same kind of things happening across the sexual health business as we really transform that business to one with dual action treatments, hyper-personalization, daily benefits.

David Larsen: This point, we've not been able to bring those offerings onto the platform.

Speaker Change: To also start to elevate the gross margin profile as we progress over the course of the.

David Larsen: And we hope that we can.

David Larsen: And so we will continue to push and fight on behalf of consumers to broaden their reach but as of this point theres nothing yet to disclose with regard to Lilly products directly integrated.

Speaker Change: Most of the year.

Speaker Change: And just to clarify were you asking about the preventative preventative care category. I think you mentioned that kind of longevity leap and preventative kind of opportunities how are you thinking about the potential there.

David Larsen: Next is Aaron Kessler from Seaport global.

Speaker Change: Yes. This is this is a really exciting set of categories. I think generally from a cultural zeitgeist standpoint, all of US are now being awakened and wanting to take more proactive care rate. We have seen parents passed away from preventable disease, we've seen grandparents age.

David Larsen: Yes, great couple of questions, maybe just on gross margins how to think about that through the remainder of the year and maybe any color on the branded partnerships margin and then just you mentioned kind of jeopardy sleep and preventative of opportunities just how are you thinking about those opportunities specifically thank you.

Speaker Change: Data is making this easier testing is making it easier.

David Larsen: Great I'll take the first question and maybe I'll toss it over to Andrew for the second I think on gross margins.

Speaker Change: Practice health is making this easier so I think theres, just a cultural desire to not only treat yourself when you're sick, but actually trying to get ahead of kind of.

David Larsen: We do expect those to sequentially.

Andrew Dudum: So, you know, the penetration rates of the core categories we're in are still very, very low. I mean, you're talking low single digits given the TAM. And so I think it's going to be a really nice composition of revenue across Hims & Hers, across categories, across new and old that is coming together to deliver on that 2030. But ultimately, I think that's the strength of this business, right? If you have a unified brand for men and a unified brand for women under which you have the opportunity to build probably dozens of completely different businesses under the hood with completely different care, different treatments, different customers, different marketing channels.

David Larsen: Increase I think as we look into the ecosystem, we see a couple of things. One is just the benefit from economies of scale.

Speaker Change: Ultimate lifespan and you've got <unk>.

David Larsen: The second is we do expect.

Speaker Change: Huge influencers are making books popular on this front right now I would say this kind of lives in the transformation from a biohacker too early adopter part of kind of phased adoption I would suspect in the next two to five years this growth to be very mass market.

David Larsen: Strengthening growth outside of our jumping off rain, which historically have come at different margin profile currently to.

David Larsen: It's also start to elevate the gross margin profile as we progress over the course of a over the course of Bayer.

David Larsen: Yeah.

David Larsen: And just to clarify were you asking about the preventative preventative care category. I think you mentioned that kind of longevity and preventative kind of opportunities. How are you thinking about the potential there.

Speaker Change: We're four relatively affordable prices, you can get whole body testing other blood diagnostic or physical scans you can get cancer preventative diagnostics, you can get polygenic risk scores for all types of.

David Larsen: Yes. This is this is a really exciting set of categories. I think generally from a cultural zeitgeist standpoint, all of US are now being awakened and wanting to take more proactive.

Andrew Dudum: And it's that diversity that I think is what really gets this business the strength long term. Got it.

Longer term chronic conditions, Alzheimer's and others and you can be able to do this kind of at the same routine that you go to the dentist.

Speaker Change: <unk> right, we have seen parents passed away from preventable disease. We've seen grandparents age data is making this easier testing is making it easier.

Operator: Thanks for that.

Maria Ripps: We'll take the next question from Maria Ripps, Canaccord Genuity. Great, thanks so much for taking my questions. First, I appreciate all the color on the transition within the sexual health vertical. Can you maybe just talk about sort of some of the initiatives to re-accelerate growth in that vertical? I think you mentioned some of the products kind of launching later this year. And are you planning to maintain sort of at least some level of less personalized solutions there? And I guess understanding that sort of we may see some near-term volatility, how should we think about maybe the timing of subscriber and revenue normalizing in that vertical?

Speaker Change: And on an annual basis make sure that your body is operating as it should be and that Youre getting ahead, either through vitamin supplementation through prescription medication.

Speaker Change: <unk> health is making this easier so I think theres, just a cultural desire to not only treat yourself when you're sick, but actually trying to get ahead of kind of.

Speaker Change: The known areas that you have vulnerabilities and lifespan.

Speaker Change: This is something I experiment, a tremendous amount with our management team experienced a tremendous amount with.

Ultimate lifespan, right and you've got.

Speaker Change: Huge influencers that are making books popular on this front.

Speaker Change: And we aimed to figure out what best in class curation of that is.

Speaker Change: Right now I'd say this kind of lives in the transformation from kind of Biohacker too early adopter part of kind of phased adoption I would suspect in the next two years to five years this growth to be very mass market.

Speaker Change: And through partnerships through M&A through building ourselves bring to market very consumer friendly consumer easy to digest offerings that are affordable and can start taking a big chunk out of People's fear right because I think ultimately what this is is getting people power and.

Andrew Dudum: Yeah, maybe I can speak in just kind of a high level about that business and let you dive into some of the details. I think Maria, the willingness from our standpoint with that business to take our time and have a long-term orientation is really what's happening under the hood. There is a historical business within sexual health that is really an on-demand business, right? It's a heavy Viagra-based business. It's a low-sticky, low-tax-rate business where patients are coming to you for singular needs. What we're seeing more and more is that the opportunity to help a growing number of these sexual health patients with a broader set of care, things like cardiometabolic care or preventative care or testosterone support or vitamin support, is really quite robust.

Speaker Change: Giving them control an option and I think his and hers is exceptionally well positioned with the trucks, we have the distribution of the brand the clinical capabilities to then treat to.

Speaker Change: Longer term chronic conditions, Alzheimer's and others and you can be able to do this kind of at the same routine that you go to the dentist.

Speaker Change: To help people identify these areas of risk and get ahead of them and monitor them track them lock them.

Speaker Change: And on an annual basis make sure that your body is operating as it should be and that Youre getting ahead, either through vitamin supplementation through prescription medication.

Speaker Change: And make sure that they are staying on the right course, so I think this is a category probably once we.

Speaker Change: Get out the hormonal balanced category inclusive of Paramount augment a possible testosterone.

Speaker Change: The known areas that you have vulnerabilities and lifespan.

Speaker Change: This is probably an area that will put a lot of focus on.

Speaker Change: This is something I experiment, a tremendous amount with our management team experienced a tremendous amount with.

And ladies and gentlemen that is all the time, we have for questions that does conclude our conference for today, we would like to thank you all for your participation you may now disconnect.

Speaker Change: And we aimed to figure out what best in class curation of that is.

Speaker Change: And through partnerships through M&A through building out ourselves and bring to market very consumer friendly consumer easy to digest offerings that are affordable and can start taking a big chunk out of People's fear right. Because I think ultimately what this is is getting people power and <unk>.

Andrew Dudum: What we're doing under the hood is really accelerating the R&D roadmap, the formularies, the form factors to expand into a new set of breadth of services and care within sexual health that not only takes care of the core issue that it came for, but also likely some of the contributing elements of their health that are driving those side effects. These types of daily solutions have more than doubled year over year, and they now account for almost 40% of that entire business. That trajectory is only growing. What we believe is going to happen over the next couple of years is a continued transition to hyper-personalized care, a continued transition to more daily multi-action care, and ultimately really a much stickier, higher-intentive customer that allows us to expand with them as they age.

Speaker Change: Them control an option.

Speaker Change: And I think his and hers is exceptionally well positioned with the trucks, we have the distribution of the brand the clinical capabilities to then treat to.

Speaker Change: To help people identify these areas of risk and get ahead of them and monitor them track them lock them.

Speaker Change: And make sure that they are staying on the right course, so I think this is a category probably once we.

Speaker Change: Get out the hormonal balanced category inclusive of Paramount of augment a possible testosterone.

Speaker Change: This is probably an area that will put a lot of focus on.

Andrew Dudum: That, I think, is really some of the dynamics taking shape.

Speaker Change: And ladies and gentlemen that is all the time, we have for questions that does conclude our conference for today, we would like to thank you all for your participation you may now disconnect.

Andrew Dudum: It's really unique to the sexual health business, given that's really the only business where the core habit is more of an on-demand, as-needed habit versus the other categories we operate in that have more of a daily behavior.

Speaker Change: Yeah.

Operator: We'll take the next question from Eric.

Speaker Change: Yeah.

Eric Percher: I'm sorry, sir. Go ahead. I was going to say, Maria, I think just what I would add to that is, you know, as Andrew mentioned, over the last, you know, two years, like we've gone from less than 10% of users that are receiving the benefit of a daily option that has multiple benefits, I think a daily option provides the ability to do multi-condition. We're also uniquely positioned to do so with our internal fulfillment capabilities. And so, like, our belief is, as we make that transition, we're already seeing the signs of much stronger retention, both at the one-year mark, but then also as we kind of get to the two-, three-year mark.

Speaker Change: Okay.

Yemi Okupe: The ability to perpetuate that is something that we're very excited by. We've gone from, you know, less than 10% of users utilizing those types of solutions to now roughly 40%. And given what we've seen, we're going to continue to lean into that over the coming years.

Yemi Okupe: And the next question is Eric Percher, Nephron Research. Thank you. I appreciate the commentary on the brand opportunity at the top, and maybe I'd ask a bit more tactically. It seems like a very clear near-term opportunity for you to shift subscribers to commercial dosages, but it's also pretty clear that the manufacturers will be watching your positioning on personalized GLP-1s closely, so how do you approach the opportunity for growth in personalized? Is that a growth opportunity versus the opportunity to grow via brand partnership? Yeah, Eric, it's a great question. You know, I think we've said this from the beginning, you know, we aim in all of our adventures to be extremely blue chip and play by the rules.

Speaker Change: Okay.

Eric Percher: And with regard to compounding and the personalization, personalization exemption, the rules are extremely straightforward and clear. So we continue to expect the personalized semi-glutized to exist on the platform. That's something we've shared as of last call. It's something we shared early with Novo. But we also believe that the necessity of that should be limited to when providers feel it is clinically needed. And so the ability to do hyper-personalization for side effects mitigation, whether this is nausea, vomiting, muscle loss, etc., is something that we continue to allow on the platform to continue to give providers that flexibility and the tools to make that type of personalization.

Andrew Dudum: But generally, we think of it as relatively additive to the ecosystem, because for the most part, these are patients that, frankly, just cannot use commercial doses, or a lot of them have actually tried the commercial dose and then have churned off due to the high side effect rate. And so we think it's really additive as part of the mix. And then when we step back, as Yemi said earlier, choice and selection on behalf of consumers, all with regard to what they are clinically eligible for, as well as from a regulatory perspective eligible for, is what we believe is our duty.

Andrew Dudum: To push, to give them choice and options that work, and ultimately to let them and the providers to achieve the best outcomes.

Ryan Macdonald: Thank you. The next question is Ryan MacDonald, Needham & Company. Thanks for taking my question, and congrats on a great quarter.

Yemi Okupe: As we think about the shortage ending here, and sort of that transitionary period for the commercially dosing customers, can you talk about what retentions look like on the base? And then, you know, as you are offering this portfolio approach, where you're seeing sort of those commercial dosage customers shifting into within the HIMSS platform, whether it be personalized, lyriglutide, oral, etc.? Yeah, right. Great question. You know, I think on the the transition, we started to communicate this to patients, you know, I think maybe two months ago, when we had visibility of the shortage ending, you know, most of these patients that that are on commercial available doses, you know, were able to were qualified for commercial doses.

Yemi Okupe: That doesn't mean they were qualified for personalized. So you don't see, you know, many of those then qualifying on the personal personalized side. You see them going to either branded options, branded Trezepatide, or, you know, Zepfoun, or Manjaro, branded Wacobi now, as well as the generic options, such as glutide injections, or the oral compounds. And so when we think about even the future, the next year or two, when you see, you know, on-brand oral GLP-1s coming to market, you know, those expensive medicines are also going to compete with our oral treatments, which are, again, two thirds of weight loss for one third of the cost.

Yemi Okupe: And so we have, I think, a really nice set of variety for patients, but generally you're seeing them, you know, split between the generic sets of treatments, like the orals and Liras, and then also those that are capable of paying for the branded options as well.

Daniel Grosslight: We'll take the next question today from Daniel Grosslight, Citi. Hi, thanks for taking the question. Yeah, Andrew, I have a similar question.

Andrew Dudum: But I'm curious if you can provide what percent of folks who are on commercially available doses transition to personalized doses. And when you were inking the partnership with NOVA, was there any discussion around limiting the uptake of personalized doses that you're offering?

Andrew Dudum: And then finally, just given some recent lawsuits that were filed against competitors of yours, can you just put a finer point for us on how HIMSS, the corporate entity, interacts with its affiliated provider groups when making medical decisions? Thanks. Yeah, great, great questions in there. On the commercial doses that transition to non-commercial, I don't think that's something we disclosed, unfortunately, Daniel. On the personalized stomach glutide standpoint, you know, one of the things that we did talk about with NOVA early is just what we believe is appropriate use of personalization and aligned philosophically with what our providers believe is that clinical necessity.

Andrew Dudum: So there is an alignment for what we believe to be blue chip use of that compounding exemption. And again, it is for patients that are suffering from some type of intolerable dynamic where a commercial available dose is just not actually an option for them. So this is side effect sensitivities, nausea, vomiting, muscle loss, etc. These are all, you know, this is all super well documented. So I think patients know this, providers know this, and giving them the opportunity to have those discussions and see what is right for them is really where we leave it. When you ask about, and this goes to your third point, was there any conversation about limiting this type of behavior?

Andrew Dudum: And then how do our providers interact with us as a corporate entity? We as a corporate entity do not do anything and try very hard to not engage with provider group when it comes to clinical decision making. There is a very strong wall there where providers have independent judgment in collaboration with their patients to figure out what is best. And so, you know, no organizations have asked us to alter that, nor would we ever alter that. Because again, our role is simply to be the mediator, right? Our role is to bring together patients, providers, and great treatments, and let those providers and patients and those great treatments to do the rest of the work.

Jonna Kim: Next up, we'll take a question from Jonna Kim, TD Cowan. Thank you for taking my question. I wanted to get further color on the monthly revenue line. Obviously, it grew nicely this quarter, but you mentioned moderating throughout the year. How should we just think about the put-then-takes there? And would love additional color on the oral medication. You mentioned potentially more people opting into that. Any color on how you're thinking about that opportunity within this year and just going forward would be helpful. Thank you so much.

Yemi Okupe: Yeah, thanks for the question, Jonah. I think with respect to the monthly online average revenue, you know, per subscriber, you know, I think that we, you know, do expect to see some headwinds, you know, in the second quarter, as we start to pull off users that were on the commercially available dosages of semi-gluten. So that will be a headwind. I think the tailwinds will be things such as the branded partnerships from, you know, with, you know, of Adobe. As well as more and more users, you know, continuing to adopt the premium products across our other specialties that tend to be, such as in our sexual health, more daily in nature and come at a premium relative to, you know, to the generics.

Yemi Okupe: I think with respect to the oral medication, I think what we're just seeing is if you take a step back across all of our specialties, breadth of choice is a key tenet that we fundamentally believe in to have success. I think it's what's driven success across all of our historical specialties, such as men's and women's dermatology, you know, sexual health, amongst others. And so when we think around the weight category and how there is 100 million Americans across the country that are suffering from obesity-related challenges, I think that there in that specialty, more than ever, having a breadth of choice will be absolutely critical.

Yemi Okupe: And so as a result, we've seen very robust growth in the subscriber count, growing north of 300% year-over-year. And so I think we would expect to continue to see strong growth as a result of those dynamics.

George Hill: George Hill from Deutsche Bank has the next question. Yeah, good afternoon, guys. And thanks for taking the question. I wanted to come back to Daniel's question about the relationship between Novo and him. And I guess like, like, there's kind of this natural tension between the dispensing of the personalized products. And the commercial will go be that you guys are selling. So was there any like interaction or any discussion around like a ratio of the dispensing of the personalized product versus the commercial product? And just I, Andrew, I'd just be I'd really be in the back.

Andrew Dudum: And like, is there any risk that like Nova would ever pull the commercial relationship with you guys if personalized kind of sold too well? We just kind of love the background of the discussions around that.

Andrew Dudum: Yeah, thanks, George. Yeah, again, I think there's within both organizations, a foundational appreciation for the fact that clinical decision-making is truly independent. And I just, I truly cannot emphasize that enough. You know, providers make decisions on our platform. We give providers and patients choices of treatments, and ultimately what is right for them is their own discretion. I think we strongly believe that it's really important that we maintain that independence. So this idea even of ratios and things of that sort, like that is business-impacting clinical decision-making in a way that is something we're definitely not comfortable with, nor do I think, frankly, any organization would be comfortable with, because it's stepping on the toes of provider discretion.

Andrew Dudum: So what we agreed to philosophically was what the regulation allows for, right? And we've made this very clear. We believe that personalized semi-glutide is both clinically necessary for some patients because of the side effects that are very widespread and well-known, and that the regulation under the compounding exemption, specifically under the personalized 503As, right? We're not talking about bulk manufacturing during a shortage. We're talking about personalization of the A facilities. That is regulatorily protected. So I think there's an alignment that both the regulation allows for it, and we believe there's a need, whether or not there's total agreement with regard to how much of that should be available to what types of consumers.

Andrew Dudum: Will our organizations ever align on that perfectly? Probably not. But I think the reality is, and I think everybody's back and realizing this reality, is that we have millions of patients on HIMS and HERS platform. We have 10,000 to 15,000 patients we're treating every single day, and they are looking for options. And so, in a world where great medicine is trying to find the patient that needs their option, it makes sense to work with Hims & Hers. And I think we have a responsibility to do that in the right way, to do it in a respectful way, to play by the book, and to respect all parties.

Andrew Dudum: But I think that's where we, as a distribution platform, can really bring the ecosystem together, whether these players traditionally fight each other or compete with each other, it might not matter. If ultimately, at the end of the day, we have millions of patients coming to us every day looking for choice, and we want to make sure they have the broadest choice possible. That type of alignment is something that everybody, I think, can agree to. It's something that benefits everybody. And I think as long as there's trust between all organizations that the way in which those patients receive care is independent and driven by clinical best practices, then I hope that we're able to have a really long and tenured relationship with many partners like that.

David Larsen: And our next question will come from David Larsen, BTIG. Hi, congratulations on the good quarter. Can you talk about your willingness or ability or desire to, at some point in time, take insurance? It seems to me like if you were taking insurance, you would potentially be more aligned with drug manufacturers when the price of their brand products are fairly high, because the members could then have those products covered by insurance and the out-of-pocket costs wouldn't be so high. So can you talk about that, please? And then also, what is your relationship with Lilly? Are you connected with Lilly Direct?

Andrew Dudum: And just any thoughts around your relationship with Lilly would be very helpful. Thank you.

Andrew Dudum: Yeah, thanks, David. On the insurance side, no, I have very, very low interest in figuring out how to integrate insurance. And I think there's a few reasons. But mostly, it's because it is extremely complicated, and extremely inefficient for consumers. So today, the vast majority of the country has insurance, as we know, and the vast majority of those people have high-deductible insurance plans. And so what that means is, on average, patients that are coming to Hims & Hers Platform are fully covered by insurance, but they have, let's say, a $2,000 to $3,000 annual deductible that they have to pay in cash before they get the benefit of $1 of insurance.

Andrew Dudum: And so while everybody is insured in this country, almost nobody is actually getting the benefit of insurance. It's essentially a cash pay system today. People are just paying very, very high co-pays, and very few ever actually get the benefit of insurance unless it's a true catastrophic situation. So when I think about Hims & Hers and general health and wellness, kind of everyday health care, I'm not talking about catastrophic care, but everyday health care, I think consumers having choice, selection, using their cash where they want on services and providers that deliver really high MTS experiences, that's going to be the gold standard.

Andrew Dudum: Because it's a basic capitalistic environment where competition will drive great quality experiences, will drive the cost down, and ultimately drive great valuable places for these people to put their money. And I think what's happening right now, for example, in the obesity market is a really great example of that. The pressure that Hims & Hers is putting by aggregating millions of patients who need choice, I think, is a huge component in why some of the most important medicines of the last decade and probably the next decade are now being priced in the hundreds of dollars, not thousands of dollars range.

Andrew Dudum: So we want to be a party to everybody in the ecosystem, but we also want to put the consumer first ahead of all. And when I think about insurance and alignment, I believe we should be able to care for patients at a cash paid price for most of the things that affect us day to day, equal to or cheaper than the co-pays on their insurance plan.

Andrew Dudum: And so far, we're pretty damn close to pulling that off for most categories, but I think that's kind of the ambition that we want to keep pushing on for the next five to 10 years.

Andrew Dudum: With regard to Lilly, we would love to continue to broaden the partnership opportunities on the platform. We have branded Manjaro and ZepFound pens on the platform. They are thousands of dollars. So this is not through a direct partnership integration with Lilly Direct. It's just through us going through the pharmaceutical supply chain. We have had conversations with that organization. We continue to have conversations with the leadership of that organization. At this point, we've not been able to bring those offerings onto the platform, and we hope that we can. And so we'll continue to push and fight on behalf of consumers to broaden their reach.

Andrew Dudum: But as of this point, there's nothing yet to disclose with regard to Lilly products directly integrated.

Aaron Kessler: Up next is Aaron Kessler from Seaport Global. Yes, great. A couple questions.

Yemi Okupe: Maybe just on growth margins, how to think about that through the remainder of the year, maybe any color on the branded partnerships margins. And then just you mentioned kind of longevity, sleep and preventative opportunities. Just how are you thinking about those opportunities specifically?

Andrew Dudum: Thank you.

Yemi Okupe: Great, I'll take the first question and maybe toss it over to Andrew for the second. I think on gross margins, we do expect those to sequentially increase. I think as we look into the ecosystem, we see a couple of things. One is just the benefit from economies of scale. The second is we do expect strength and growth outside of our GLP-1 off-grain, which historically has come at a different margin profile currently, to also start to elevate the gross margin profile as we progress over the course of the year.

Andrew Dudum: And Aaron, just to clarify, were you asking about the preventative care category? Yeah, I think you mentioned the kind of longevity leap in preventative as kind of opportunities. How are you thinking about the potential there? Yeah, yeah, this is a really exciting set of categories. You know, I think generally from a cultural zeitgeist standpoint, all of us are now being awakened and wanting to take more proactive care, right? We have seen parents pass away from preventable disease. We've seen grandparents age. Data is making this easier. Testing is making it easier. Proactive health is making it easier.

Andrew Dudum: So I think there's just a cultural desire to not only treat yourself when you're sick, but actually try to get ahead of kind of an ultimate lifespan, right? And you've got huge influencers that are making books popular on this front. Right now, I would say this kind of lives in the transformation from kind of biohacker to early adopter part of kind of phased adoption. I would suspect in the next two to five years, this grows to be very mass market, where for relatively affordable prices, you can get whole body testing, either blood diagnostic or physical scans.

Andrew Dudum: You can get cancer preventative diagnostics. You can get polygenic risk scores for all types of longer term chronic conditions, Alzheimer's and others. And you can be able to do this kind of at the same routine that you go to the dentist. And on an annual basis, make sure that your body is operating as it should be, and that you're getting ahead either through vitamin supplementation, through prescription medication, on some of the known areas that you have vulnerabilities in lifespan. This is something I experiment a tremendous amount with, our management team experiments a tremendous amount with, and we aim to figure out what best-in-class curation of that is.

Andrew Dudum: And through partnership, through M&A, through building it ourselves, you bring to market very consumer-friendly, consumer-easy-to-digest offerings that are affordable and can start taking a big chunk out of people's fear. Because I think ultimately what this is, is giving people power and giving them control and an option. And I think Hims & Hers is exceptionally well-positioned with the trust we have, the distribution, the brand, the clinical capabilities to then treat, to help people identify these areas of risk, get ahead of them, and monitor them, track them, log them, and make sure that they're staying on the right course.

Andrew Dudum: So I think this is a category probably once we get out the hormonal balance category, inclusive of perimenopause, menopause, low testosterone, that this is probably an area that we'll put a lot of focus on.

Operator: And ladies and gentlemen, that is all the time we have for questions.

Operator: That does conclude our conference for today. We would like to thank you all for your participation. You may now disconnect.

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