Hims & Hers Health at 52-week high after strong Q4 - 2024 delivers milestones with net profit and $1 billion in revenue!

For telemedicine provider Hims & Hers Health (HIMS), personalized and affordable virtual care is the key to solving challenges 100 million people face in the US alone. Long waiting times for appointments at doctors' surgeries should be a thing of the past with virtual access to medical professionals and medication. Five core areas are now covered, including sexual health for men and women, mental health, dermatology and heart health, and a dedicated weight loss program was launched in December. According to co-founder and CEO Andrew Dudum, this approach should help to bring the "unique offerings to tens of millions of subscribers over time." There has now been an increase of 48% to around 1.5 million members.

GLP-1 active ingredients, such as the weight loss injections Wegovy and Ozempic, could make a "significant contribution to sales" on the platform in the coming years. Until then, Hims & Hers wants to focus on sustainable weight loss with its clinically based weight loss program and also solve basic problems of excessive weight with access to obesity specialists, trackers for exercise, food intake and sleep as well as prescriptions, instructions and medication. Dudum emphasizes that "often, five or six components are needed to put the puzzle together". The still young division could generate $100 million in revenue by 2025.

The 4th quarter impressed investors with a 48% increase in turnover. At $0.01 per share (consensus: $ -0.03), the company reported its First net profit. A number of milestones were announced for the 2024 financial year. At $1.17-1.20 billion (consensus: $1.1 billion), revenue is set to exceed the billion mark for the first time. Adjusted EBITDA of $100-120 million with a margin of 9-10% is also expected, meaning that the $100 million target will be reached one year earlier than planned. First net profit is also expected. The sales target of $1.2 billion by 2025 remains unchanged. The share is still interesting due to its attractive valuation with a P/S ratio of just around 2.2.

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