Hims & Hers Health, Inc.

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Him and Hers First Quarter 2022 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. Jay Spitzer, Senior Vice President of Investor Relations. You may begin your conference.

Good afternoon, ladies and gentlemen. Welcome to the Hims and Hers Health first quarter 2022 earnings call. On the call with me today is Andrew Budum, co-founder and our chief executive officer, as well as Yemi Okupe, our chief financial officer. Before I hand you over to Andrew, I will, as usual, take you through the legal safe harbor and cost share declarations. Certain statements and projections of future results made on this presentation constitute as forward-looking statements that are based on current market, competitive, and regulatory expectations and are subject to risks and uncertainties that could cause actual results to vary materially. We take no obligation to update publicly any forward-looking statement after this call, whether a result of new information, future events, changes in assumptions, or otherwise. Please see our most recently filed 10-K and 10-Q for discussions of risk factors as it relates to forward-looking statements. In today's presentation, we will use certain non-GAAP financial measures. We refer you to the reconciliation table contained in today's press release available on our Investor Relations website for reconciliations to the most directly comparable GAAP financial measures and related information. You will find a link to the webcast on our Investor Relations website at investors.fordhems.com. After the call, this webcast we archived on the website for 12 months. And with that, I'll turn this call over to Andrew.

Good afternoon, and thank you all for joining us today. I'm thrilled to share that we kicked off 2022 with breakout performance across all facets of our long-term strategy and financial goals, resulting in a substantially stronger outlook for 2022. Our mission at Hims and Hers is to empower us all to live healthier and happier lives, Today, that mission is more relevant, and we believe more attainable than ever before. This past quarter's financial performance highlights our company's growing ability to break away from the competitive pack with our unique consumer-centric model. All working in unison, our brand, technology, platform, and team are delivering on a differentiated offering customers love. People are voting with their wallets. and we believe the results we will share today are strong proof for the future of our brand and platform. Revenue this quarter grew almost $17 million quarter-on-quarter, surpassing $100 million for the first time in our company's history. This represents a growth rate of 94% year-over-year. Membership subscriptions, the core driver of our recurring revenue model, achieved the largest increase in quarterly growth to date. adding over 100,000 new membership subscriptions, ending the quarter at 710,000. Our operational efficiencies, powered by continued investments in our platform and technology, enabled us to improve adjusted EBITDA margins over 200 BIPs relative to Q4 of last year. As our core flywheel continues to scale, we believe this operational leverage will continue to allow us to invest in long-term growth while marching towards near-term profitability. With the turbulent market conditions we find ourselves in, I want to stop and truly acknowledge our team. Growing at this pace in and of itself is something to be proud of, but doing so while in parallel maintaining costs, improving operational leverage, and investing in defensible future-facing technologies is outstanding. Thank you all for the continued dedication and extraordinary focus. This quarter, we invested heavily in platform infrastructure and technology capabilities. These initiatives are critical for differentiation at the customer experience level, as well as the foundation for continued operational leverage and efficiency in the years to come. One of the largest areas of focus was our verticalization efforts in Ohio and Arizona, our affiliated pharmacy compounding and fulfillment centers. These facilities are now filling the majority of our monthly treatment orders, both pharmaceutical and over-the-counter. This transition away from third-party pharmacy fulfillment centers has taken years of rigorous focus and is now helping to deliver improved operational efficiencies and a major beat to adjusted EBITDA. Our march towards near 100% oral fulfillment verticalization is well on track. One of our most exciting technology initiatives this quarter was the full launch of our new mobile platform, with a broad range of value-added services for our customers. For me, this is one of the most meaningful advancements in the HIMS and HERS platform since we founded the company, as it dramatically expands the value we deliver to our members every day. This platform saw robust organic adoption rates in our rollout test, with nearly 60% of all new patients downloading and engaging with our concierge services provider messaging, and branded content. This contributed to Q1's breakout growth, adding more subscribers than ever before. I believe this platform to be the future of Hens and Herbs. And with such incredibly early adoption rates, over 500 plus five-star reviews, and within days of launch breaking the top 100 medical apps on iOS, it is clear that customers agree. In just a matter of weeks, our mobile platform is already showing signs of increased customer stickiness, improved engagement, retention, cross-sale, and organic adoption. We remain ruthlessly focused on investing in this platform and believe our team's ability to build true consumer experiences customers love and organically adopt to be a unique differentiator in the traditional healthcare landscape. In addition to deep investments in technology and platform, We focused a great deal this quarter on broadening awareness of a key strategic asset, our brand. We believe our brand is one of the most important long-term differentiators. In this past quarter, it delivered meaningful tailwinds as we continue to focus on our omnichannel presence. At my core lies a belief that deep customer awareness and trust will accelerate our organic adoption rates, allow us to continue to scale affordably, and become less dependent over the years on incremental marketing investments. This quarter, we saw exactly those benefits play out as our substantial top-line beat and subscriber growth were coupled with maintained efficiency and robust organic adoption. This quarter, we announced a partnership with Walmart, one of the leading retailers in the nation, and began to see rollout across nearly 1,900 store locations. Across now over 20,000 retail locations, Hims and Hers is becoming synonymous with health and wellness. Our brand is seen and experienced by millions of people daily, helping to deepen our relationship with prospective customers and drive unique long-term flywheel dynamics. In addition to expansion on retail shelves, we also broadened our provider and educational partnerships, deepening the value-added services for our members. These partnerships included Carbon Health, which expands our California retail clinic footprint for higher acuity patient cases, as well as GoodPath, an exclusive provider of educational and medical content for conditions related to MSK issues, pain management, insomnia, GERD, and IBS. These partnerships accelerate our ability to deepen our relationship with customers by strengthening the breadth and comprehensive nature of our platform. This business was founded to solve what I believe to be one of the largest challenges this country faces, access to affordable and excellent healthcare. As prices continue to soar in the traditional healthcare system and as access, convenience, and choice continue to remain limited, we believe that more customers will only increase their demand for alternative solutions. This wave is growing, and we see it in our business and our metrics weekly. Growth has been stronger than at any point pre and during COVID, pointing towards a structural change in customer expectations. The seamlessness of our offering, our breadth of value-added services, and our trusted brand are resonating deeply with new and existing customers, driving unique flywheel dynamics unlike anything I've seen. It is an exciting year for hims and hers, as our mission to empower us all to live healthier and happier lives feels more relevant and more attainable than ever before. And now, I will pass the call to Yemi to further discuss last quarter's performance.