Since we founded Hims & Hers more than six years ago, our goal has been bold: to make the world feel great through the power of better health. On February 26, we announced Hims & Hers had our first quarter of net income profitability and we expect to surpass $1 billion in revenue and deliver our first full year of net income profitability this year. We’ll make that happen by continuing to build personalized and accessible treatments in each of our core specialties.
I am more confident than ever in our future and that our approach can enable every household in the nation to find a level of personalized care that has historically only been available to the wealthiest people.
Here’s how we’re thinking about the year we’ve had and what we think is ahead:
With a strong focus on personalization, we’ve seen financial success on both the top and bottom line. Revenue increased 65% year over year to $872 million, and more importantly, we’re still drawing and retaining users on our platform and over 1.5 million subscribers were on the platform at the end of 2023—a year over year increase of 48%. We’re continuing to take a disciplined approach to scaling our platform, and that is translating to meaningful success on our bottom line as well: we achieved our first quarter of positive net income on the one-year anniversary of our first quarter of positive adjusted EBITDA.
Today, we are focused on ensuring that our customers have an outstanding personalized experience across five core specialties: Sexual Health, Men's and Women's Dermatology, Mental Health, and Weight Loss. These are some of the most emotionally resonant challenges across society today, and impact over 100 million people in the US alone. Throughout 2023, we consistently provided better access to personalized solutions for our customers, with access to providers and diagnosis happening in days (or sometimes hours!) through Hims & Hers, as opposed to weeks or months through traditional settings.
In 2023, three key elements have placed us in a leadership position in the industry:
ztq MedMatch by Hims & Hers, introduced late last year, is powering efficient and effective experiences for the user and providers who come to Hims & Hers. Through ztq MedMatch by Hims & Hers, we are enabling providers to leverage learnings from hundreds of thousands of interactions across our platform to more efficiently match users with the right treatment, and we are uncovering effective and safe solutions that we believe resonate with our users.
In the fourth quarter, we completed our transition to affiliated pharmacies, which sets the stage to eliminate a substantial barrier for users across our specialties today: cost. Close to 90% of orders on our platform are going through affiliated pharmacies, which allows us to more efficiently scale and ultimately pass value back to customers who have previously been spending too much on—or haven’t been able to afford— the treatments and solutions that we believe can have an outsize impact on their health.
By continuing to strengthen our five key specialties and taking a disciplined approach to scale, we expect to achieve our 2025 EBITDA target of $100 million and have direct line of sight to our revenue target of $1.2 billion. We are also tracking toward our first year of positive net income in 2024. Since the beginning, we’ve excelled at removing barriers and friction points such as lack of awareness, accessibility, and affordability. Our ability to achieve these milestones will be dictated by how we remove points of friction for not only users already seeking treatment today, but those who may be suffering but not seeking treatment.
In 2024, we expect personalization will be foundational to unlocking new ways to reach users with more unique needs, like alternative form factors and unique dosages. ztq Medmatch by Hims & Hers will be a critical tool in giving both providers and consumers the confidence that a treatment can work for them, as the tool evolves to address one of the questions most top of mind for consumers: “has this solution worked for people like me?”
All of these results to date and goals are important benchmarks, but they are truly just the beginning. My goal is to bring tens of millions of users to our platform because we know the huge scale—in the hundreds of millions in the US alone—of people who are suffering with the conditions we serve. I’m so proud of what we’re delivering at Hims & Hers and the positive outcomes we’re bringing to our customers, but more than that, I’m energized by the opportunity to bring this incredible experience to even more people in 2024.
1. This is a non-GAAP financial measure. Please refer GAAP Net Income for the most closely related GAAP financial metric. We have relied upon the exception in Item 10(e)(1)(i)(B) of Regulation S-K and have not reconciled forward-looking Adjusted EBITDA to its most directly comparable U.S. GAAP measure, net loss, because we cannot predict with reasonable certainty the ultimate outcome of certain components of such reconciliations, including market-related assumptions that are not within our control, or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of future net loss. See “Non-GAAP Financial Measures” for additional important information regarding Adjusted EBITDA.
Cautionary Note Regarding Forward-Looking Statements
This post includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believe,” “estimate,” “anticipate,” “expect,” “assume,” “imply,” “intend,” “plan,” “may,” “will,” “potential,” “project,” “predict,” “continue,” “could,” or “should,” or, in each case, their plural, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include, but are not limited to, any statements relating to our financial outlook and guidance, including our mission to drive top-line growth and profitability and our ability to attain our medium- and long-term financial targets; our expected future financial and business performance, including with respect to the Hims & Hers platform, our marketing campaigns, investments in innovation, and our infrastructure, and the underlying assumptions with respect to the foregoing; statements relating to events and trends relevant to us, including with respect to our financial condition, results of operations, short- and long-term business operations, objectives, and financial needs; expectations regarding our mobile applications, market acceptance, user experience, customer retention, brand development, our ability to invest and generate a return on any such investment, customer acquisition costs, operating efficiencies and leverage (including our fulfillment capabilities), the effect of any pricing decisions, changes in our product or offering mix, the timing and market acceptance of any new products or offerings, the success of our business model, our market opportunity, our ability to scale our business, the growth of certain of our specialties, our ability to innovate on and expand the scope of our offerings and experiences, our ability to reinvest into the customer experience, and our ability to comply with the extensive, complex and evolving regulatory requirements applicable to our business, including without limitation state and federal healthcare, privacy and consumer protection laws and regulations. These statements are based on management’s current expectations, but actual results may differ materially due to various factors. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the “Risk Factors” section of each of our most recently filed Quarterly Report on Form 10-Q, our most recently filed Annual Report on Form 10-K, and any of our subsequent filings with the Securities and Exchange Commission (the “Commission”). Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in reports we have filed or will file with the Commission, including our most recently filed Annual Report on Form 10-K, our most recently filed Quarterly Report on Form 10-Q, and any of our subsequent filings with the Commission. In addition, even if our results of operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in such reports, those results or developments may not be indicative of results or developments in subsequent periods.
