Hims & Hers Health Shares Surge Following Strong Earnings Report

San Francisco, CA – Hims & Hers Health saw its shares rise 8% on Tuesday after posting stronger-than-expected earnings results due to soaring sales and subscriber growth. The health and wellness platform reported first-quarter earnings per share of $0.20 with revenue skyrocketing 111% year-over-year to $586 million, surpassing analysts’ estimates by Visible Alpha.

Total subscribers grew by 38%, reaching 2.37 million, while the monthly revenue per average subscriber increased by 53% to $84. Despite the positive earnings, the stock initially dipped when the company announced its revenue forecast for the current quarter would be between $530 million and $550 million, trailing the $564.3 million expected by analysts.

The disappointing guidance coincided with Hims & Hers’ strategic shift away from offering semaglutide, the active ingredient in Novo Nordisk‘s weight-loss drugs, Wegovy and Ozempic. In February, the company announced it would stop providing compounded treatments containing semaglutide due to supply shortages.

Andrew Dudum, co-founder and CEO, stated in a letter to shareholders that the changes within the company’s Sexual Health specialty aim to focus on long-term value creation, acknowledging that this might lead to temporary setbacks in the business.

Additionally, Hims & Hers disclosed that Nader Kabbani, a former Amazon executive, has joined the company as Chief Operations Officer. Kabbani brings nearly 20 years of experience from Amazon, where he managed various operations including the launch of Amazon Pharmacy and the company’s Covid-19 Vaccination Task Force.

Notably, shares of Hims & Hers have surged nearly 90% this year amid these developments.