Hims & Hers Health (HIMS) Q4 2024 Earnings Preview: Telehealth Leader Eyes Record Growth

Hims & Hers Health (NYSE: HIMS) stands at a pivotal moment following an exceptional Q3 2024 performance that saw revenue surge 77% year-over-year to $401.6 million.

As the company prepares to release its Q4 2024 earnings on February 24, 2025, Wall Street focuses on whether this telehealth disruptor can maintain its remarkable growth trajectory while navigating regulatory challenges and expanding its market presence in the burgeoning digital health sector.

Financial Performance Highlights

The standout story of Q3 2024 centers on Hims & Hers’ transformation from growth-at-all-costs to profitable expansion. Key financial metrics showcase the company’s impressive performance:

• GAAP Net Income: $75.6 million, compared to a $7.6 million loss in Q3 2023
• Adjusted EBITDA: $51.1 million, quadrupling from $12.3 million year-over-year
• EBITDA Margin: Healthy 13% margin, demonstrating operational leverage
• Free Cash Flow: $79.4 million, up significantly from $19.3 million year-over-year

The company’s subscriber base expansion tells an equally compelling story:

• Active Users: 2.0 million, representing 44% year-over-year growth
• Personalized Treatment Plans: Over 1 million subscribers
• Retention Rate: Exceeding 70% at 12 weeks for weight-loss treatments
• Monthly Revenue Per Subscriber: Increased 24% year-over-year to $67

Revenue Diversification and Market Penetration

Hims & Hers’ revenue structure reveals sophisticated market positioning across multiple channels. The online segment demonstrates particularly strong performance:

• Online Revenue: $392.6 million (97.8% of total)
• Year-over-Year Growth: 79% increase
• Average Order Value: $147, up 48.5% year-over-year
• Order Volume: 2.7 million net orders, 19.9% increase

Wholesale channel operations, while smaller, show promising growth: