Hims stock after Hims & Hers earnings: Shares of Hims & Hers Health fell more than 9% in after-hours trading on Monday after the company reported weaker-than-expected first-quarter results and posted a surprise loss, even as it raised its full-year revenue outlook.
Hims & Hers Health Stock Falls After Hims Earnings Today
The telehealth company said first-quarter revenue reached $608.1 million, missing Wall Street expectations of $616.85 million, as per a report. It also reported a loss of 40 cents per share, compared with analysts’ expectations for a profit of 4 cents per share.
How GLP-1 Weight-Loss Drugs Are Reshaping Hims & Hers Strategy
The results came as the company continues shifting toward more personalized treatments while navigating tighter regulatory scrutiny around GLP-1 weight-loss drugs in the United States, as reported by Reuters.
Hims & Hers Health's Chief Financial Officer Yemi Okupe said that, "In the first quarter, we made a strategic pivot that expanded our assortment of branded GLP-1 products, and early demand signals show our consumer reach broadening meaningfully," as quoted by Reuters. However, monthly revenue per average subscriber fell to $80 from $85 a year earlier, reflecting lower spending per subscriber.
FDA Scrutiny Adds New Pressure on Hims & Hers Health
The company has also faced pressure after the US Food and Drug Administration moved to restrict compounded copycat versions of GLP-1 drugs. Earlier, the FDA referred Hims to the Department of Justice over potential violations, adding to investor concerns.
Hims & Hers Raises Full-Year Revenue Forecast Despite Weak Quarter
Despite the weak quarter, Hims raised its full-year revenue forecast to between $2.8 billion and $3 billion, up from its previous outlook of $2.7 billion to $2.9 billion.
The company also projected stronger-than-expected second-quarter revenue between $680 million and $700 million, ahead of analysts’ estimates of $642.95 million.
Hims & Hers Ends Compounded Wegovy Alternative Amid Legal Scrutiny
In March, Novo Nordisk partnered with Hims to offer its blockbuster weight-loss drug Wegovy on the platform, resolving a legal dispute that followed Hims’ earlier launch of a lower-cost compounded alternative to the drug, which has since been discontinued.
FAQs
Why did Hims stock fall?The stock fell after the company reported weaker-than-expected revenue and a surprise quarterly loss.
How much revenue did Hims & Hers report?
The company reported first-quarter revenue of $608.1 million.
