On February 24, 2025, Hims & Hers Health Inc (HIMS, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. Hims & Hers Health Inc, a multi-specialty telehealth platform, connects consumers to licensed healthcare professionals, offering high-quality medical care across various specialties including mental health, sexual health, and dermatology.
Performance Overview and Challenges
Hims & Hers Health Inc reported a significant revenue increase of 69% year-over-year, reaching $1.5 billion in 2024. This growth was driven by a 45% increase in subscribers, totaling 2.2 million by the end of the year. The company's net income stood at $126 million, a substantial improvement from a net loss of $23.5 million in 2023. However, the gross margin decreased slightly from 82% in 2023 to 79% in 2024, indicating potential cost management challenges as the company scales.
Financial Achievements and Industry Impact
The company's financial achievements underscore its growing influence in the Consumer Packaged Goods sector, particularly in telehealth services. The adjusted EBITDA reached $177 million, up from $49.5 million in the previous year, highlighting improved operational efficiency. This financial performance is crucial as it demonstrates the company's ability to scale its platform and enter new specialties, thereby enhancing its market position.
Key Financial Metrics
Hims & Hers Health Inc's income statement revealed a 95% increase in fourth-quarter revenue to $481.1 million, surpassing the estimated revenue of $470.31 million. The net income for the fourth quarter was $26 million, compared to $1.2 million in the same period last year. The balance sheet showed total assets of $707.5 million, up from $441.2 million in 2023, with cash and cash equivalents increasing to $220.6 million.
“2024 was a fantastic year at Hims and Hers as we continue to build a platform that leverages personalization and technology unlike any traditional healthcare system,” said Andrew Dudum, co-founder and CEO.
Analysis of Financial Performance
The company's robust revenue growth and subscriber expansion are indicative of its successful market penetration and consumer acceptance of telehealth services. The increase in adjusted EBITDA and net income reflects effective cost management and operational scalability. However, the slight decline in gross margin suggests that maintaining cost efficiency will be crucial as the company continues to expand.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Revenue | $1,476.5 million | $872.0 million | 69% |
| Net Income | $126 million | $(23.5) million | N/A |
| Subscribers | 2.2 million | 1.5 million | 45% |
| Adjusted EBITDA | $177 million | $49.5 million | 257% |
Overall, Hims & Hers Health Inc's 2024 financial results highlight its strong growth trajectory and the increasing demand for telehealth services. The company's ability to scale efficiently while expanding its subscriber base positions it well for future growth in the evolving healthcare landscape.
Explore the complete 8-K earnings release (here) from Hims & Hers Health Inc for further details.
