Hims & Hers Health shares declined in extended trading on Monday, despite the telehealth company reporting first-quarter earnings that surpassed analyst expectations. Investors reacted negatively to the company’s weaker-than-anticipated guidance for the second quarter.
Key first-quarter results versus average analyst estimates (LSEG):
Earnings per share: 20 cents (beat 12 cents)
Revenue: $586 million (beat $538 million)
Hims & Hers demonstrated impressive growth, with first-quarter revenue increasing by 111% year-over-year to $586 million from $278.2 million. Net income also saw a substantial rise, reaching $49.5 million (20 cents per share) compared to $11.1 million (5 cents per share) in the same period last year.
However, the company’s outlook for the second quarter disappointed analysts. Hims & Hers projects second-quarter revenue between $530 million and $550 million, falling short of the $564.6 million expected by StreetAccount analysts. Their adjusted EBITDA forecast of $65 million to $75 million was in line with the $70.4 million anticipated by StreetAccount.
Hims & Hers’ stock has experienced a turbulent year, with significant price swings. Notably, shares surged 20% on April 29 following the announcement that Novo Nordisk would offer its weight loss drug Wegovy through telehealth providers including Hims & Hers. The company indicated on Monday that additional collaborations are planned.