Shares of Hims & Hers Health 22% closed on Tuesday, the day after the Telemealth Company published the results of the fourth quarter, which was disappointed by the gross margin and triggered concerns about the future of its weight loss transaction.
HIMS & HER has achieved sales of $ 481 million for the quarter, which rose to an increase of 95% compared to USD August 246 million in the same period last year. The net profit rose to $ 26.01 million or 11 cents per share of USD 1.25 million or 1 cents per share in the previous year.
The company's gross margin or the profit that was left behind after taking the costs of the goods sold was 77%, disappointing analysts, which, according to StreetCcount, expected 78.4%.
In the quarterly call of the company with investors on Monday, Yemi Okupe Chief Financial Officer said the scaling of the GLP 1 offer of the company and its strategic price options are to blame.
Hims & Her In May the tightened Semaglutide began, the active ingredient in Novo Nordisks GLP-1 weight loss medication Ozempic and Wegovy. Lawying medication can be produced if the brand treatments are defective, but the US Food and Drug Administration announced on Friday that the lack of SEMAGLUTID injection products was solved.
As a result, Hims & Hus said on Monday that after the first quarter it will probably stop to offer Semaglutid on his platform, although some consumers may continue to be able to access personalized cans if they are clinically applicable. The GLP-1 offer generated sales of more than $ 225 million for the company in 2024.
“We have to notify customers in the coming one or two months that they have to look for alternative options for commercial doses,” said Andrew Dudum, CEO from HIMS & HERS, when calling.
In the future, the company said that its weight loss offer will mainly consist of its oral drugs and the injectable drug Liraglutid, which it wants to introduce on its platform this year.
Morgan Stanley analysts said on Tuesday in an indication that the company's report was “a lot to digest”. They kept their same weight rating for the share and said they were surprised by the extent of the company's instructions in 2025.
HIMS & HERS expects sales of 2.3 billion US dollars and 2.4 billion US dollars this year. The company added that it would expect its weight loss offer to generate at least 725 million US dollars, except contributions from Compound Semaglutid.
“We remain positive about the long-term opportunities and underline the attractive platform of the company and the solid track record that you differentiate between digital health and DTC compenses,” said Morgan Stanley's analysts.
The analysts of the Bank of America said that the company could have some success in the transition from patients to its other weight loss offerings such as its oral medication, but it increases with a “considerable explanation risk” with increasing supply of brand names.
In addition, the analysts said that the competitors of HIMS & HERS are probably moving the marketing dollar to other products such as erectile dysfunction and hair loss, which could put pressure on advertising costs. They repeated their underperform -Rating for the share.
“Overall, we do not see the sales advice from 2025 on our head and think that the Beat and considerable story is likely to be over at short notice,” wrote the analysts of the Bank of America in a message on Tuesday.
Citi -analysts have now said that it was “exhausting” to “exhausting” the instruction manual of HIMS & HERS, since it would require a “considerable acceleration” when using its other weight loss products. They said they were less confident about the success of these offers.
Nevertheless, the analysts increased their price target for $ 25 to $ 27.
“We are waiting for a more convincing starting point and further details on growth points EX-GLP-1S before we become more constructive,” they wrote in a Monday note.
– Michael Bloom from CNBC contributed to this report.
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