Hims & Hers experiences stock drop after Q2 earnings report

Hims & Hers faces scrutiny as second-quarter results miss expectations.

Hims & Hers reports disappointing second-quarter earnings

Shares of Hims & Hers Health dropped 9% in after-hours trading after the company reported second-quarter earnings that fell short of Wall Street's expectations. The telehealth provider posted revenue of $544.8 million, lower than the anticipated $552 million. However, the company did see a significant year-over-year revenue increase of 73% from $315.6 million. Net income also rose to $42.5 million, or 17 cents per share, compared to $13.3 million, or 6 cents per share, in the same period last year. Looking ahead, Hims & Hers forecasts third-quarter revenues between $570 million and $590 million; analysts had projected $583 million. Additionally, the company expects adjusted EBITDA of $60 million to $70 million, significantly below the $77.1 million expected by analysts.

The earnings report for Hims & Hers raises red flags for investors. Despite strong year-over-year growth, the failure to meet revenue expectations signals potential operational challenges. This setback could diminish investor confidence after their recent collaboration with Novo Nordisk fell through. As Hims & Hers attempts to position itself in the burgeoning telehealth market, maintaining consistent earnings and growth will be crucial for its future viability. The disappointing forecasts for both revenue and EBITDA suggest that the company needs to reassess its strategies moving forward, particularly in a competitive industry ripe with opportunity but also rife with risk.

Highlights

As Hims & Hers navigates this setback, the attention will be on their ability to recover and deliver on future promises.