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Telehealth business Him and her The stock fell Tuesday after posting a first-quarter loss and weak profit forecasts for the coming year.
The digital health company reported a net loss of $92 million during trading. first quarter results Monday, compared to about $50 million for the same period the previous year. Its adjusted Ebitda was $44 million, compared to $91 million last year. Meanwhile, revenue rose 4% to $608 million. The average monthly revenue per subscriber was $80, up from $85 last year.
Hims expects revenue of between $680 million and $700 million for the second quarter, and forecasts up to $3 billion in revenue for the full year.
It forecast adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of up to $55 million for the second quarter and up to $350 million for the full year.
The company’s shares were down 15% as of midday.
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Hims & Hers shares the year so far.
Citi analysts called the forecast “mixed” and noted that Hims & Hers’ outlook for the second quarter was lower than Citi’s estimates.
Analysts also pointed out that the first quarter marks a “transition” phase for the company, as it reduces its reliance on GLP-1 compounds.
Sale of GLP-1 brand weight loss drugsHe made an agreement with Novo Nordisk in March to sell his Wegovy, GLP-1 weight loss drug on its platform while pledging to stop advertising cheaper, copied versions of the drug known as compounded drugs.
Novo said in February that it would sue Hims for selling copied versions of the Wegovy pill for $49, $100 less than the price Novo sells it for.
“The action of Hims & Hers constitutes an illegal mass preparation which poses a significant risk to patient safety,” Novo said in a statement at the time. Hims took the pill off shortly after the negative reaction.
Its shares have often reacted strongly to any news that might affect its ability to sell weight-loss drugs to consumers, which has proven very profitable for the telehealth company.
The company has faced controversy over its sale of copied weight-loss drugs through a regulatory loophole that allows companies other than the patent holder to sell a drug during a shortage. Although the shortage was resolved, Hims continued to sell its version of the drug, although it was under patent until 2032.
Novo even partnered with Hims last year to offer discounted treatments, but the deal ended quickly, with Novo accusing Hims of deceptive marketing and raising concerns about patient safety.
“It’s a very different situation than the last time we did this,” Novo CEO Mike Doustdar told CNBC in March. “He and she have agreed that after receiving our products, they will no longer advertise, promote and market compounded products to the general public.”
— Elsa Ohlen contributed to this report