Today, we announced that we’re making progress on that mission with an outstanding start to 2024.
More customers are coming to Hims & Hers than ever: in Q1, we added 172,000 net new subscribers1, bringing our total to 1.7 million – a quarter-over-quarter record for the company. Based on this quarter’s strong results and the momentum across the business, we’re increasing our outlook for the year, with an expected $1.2-1.23 billion in revenue and $120-135 million in Adjusted EBITDA2.
We are confident we’re on our way to making every household in the US a Hims & Hers household, and I’m more energized than I’ve ever been about our ability to help more people find a level of personalized care that has historically only been available to those who can afford it, those who live close to it, and those who have time to jump through the hoops of the traditional system.
Here’s more on the progress we made this quarter and what our next steps look like:
Personalization is resonating with our customers, with more than 600,000 subscribers1 on a personalized solution, a number that has nearly tripled over the course of the year and represents just over 35% of all subscribers1 on the platform. Even with that growth, we’re continuing to demonstrate our ability to efficiently acquire and retain users and seeing the effects in revenue, which increased 46% year-over-year to $278 million, while also generating $32 million of Adjusted EBITDA2.
As we think about the coming years, we’re making strategic investments in expanding our portfolio of personalized solutions at attractive price points. Our offerings tackle common consumer challenges by allowing providers to adjust dosages to help mitigate side effects, using unique form factors to improve adherence, and offering solutions that address multiple conditions simultaneously. By continuing to innovate here, like with the recent launch of Sex Rx + Climax Control, we’ll be able to improve the upward trend of customer satisfaction and retention by catering to diverse customer needs through multi-action treatments.
In 2024, we will continue to expand our range of personalized solutions in both established and newer specialties. Just as with Hard Mints and Heart Health, we’re focused on offering solutions that address a variety of customer needs, use cases, and demographics through truly personalized offerings.
Equally as important to our growth has been the reach and resonance of our brand – and it truly feels like we’re at the beginning of what we can achieve here. The goal is that, over the next few years, Hims & Hers becomes synonymous with high-quality, personalized solutions.
We’ve started to pursue this goal by increasing awareness through multiple channels that aren’t solely focused on immediate user acquisition: instead, we’re looking to raise awareness of our brands and capabilities early in an individual’s journey, sometimes even before those journeys formally begin. This quarter, a significant part of this work has been in scaling our presence across TV. We’ve carefully designed campaigns that raise awareness in key cultural moments – you’ve likely seen Hims & Hers during NFL primetime and playoff games, March Madness, "Keeping Up with the Kardashians," and "The Bachelorette.” This work is starting to compound and I expect we’ll see the impact of it in quarters to come.
All of this growth – and more importantly, the way in which we are growing – is happening while gaining leverage on each dollar spent. More and more customers are actively seeking us out, visiting hims.com and forhers.com directly to take the next step in finding care. These trends allowed us to drive more than 400 basis points of marketing leverage during the quarter relative to the prior year. The growth and efficiency gains we saw in the first quarter serve as an important proof point that we can achieve our long-term Adjusted EBITDA margin2 targets of 20%-30%, without sacrificing growth.
Currently, 35% of all subscribers1 at Hims & Hers are using a personalized solution – and we expect that in the coming years, the majority of our customers will use one or more personalized offerings, and we’re built to answer to that demand:
Based on the results of the last quarter and the tremendous momentum happening across our business, we’re increasing our outlook for the year. We now expect to achieve $1.2-1.23 billion in revenue and $120-135 million in Adjusted EBITDA2, as well as still generate our first full year of positive net income. We’re also on pace to surpass the targets we had set for full year 2025 revenue ($1.2 billion) and Adjusted EBITDA2 ($100 million). We’re confident we will make that happen by:
Continuing to surpass the expectations of what Hims & Hers can deliver is not something I take lightly – and I know we still have so much more to achieve. Winning the opportunity to have tens of millions of customers on our platform means staying committed to the work of developing cutting-edge technology, refining operations, fostering clinical excellence, and building a trusted brand. I’m proud of how we show up for customers today, and I can’t wait to show up for even more customers in the coming quarters.
Note: 2024 financial targets are provided as of the Hims & Hers Health, Inc. earnings release dated May 6, 2024.
(1) Please refer to pages 17 and 18 of our shareholder letter for the definitions of our Key Business Metrics, including the definition of “subscriber.”
(2) This is a non-GAAP financial measure. Please refer to Appendix A of our shareholder letter for definitions of Adjusted EBITDA and Adjusted EBITDA margin. 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” in Appendix A of our shareholder letter for additional important information regarding Adjusted EBITDA and Adjusted EBITDA margin.
Cautionary Note Regarding Forward-Looking Statements
This newsroom 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,” “confident,” 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.
