Hims & Hers Health, Inc.

please stand by we're about to begin good afternoon ladies and gentlemen welcome to the hens and hers health fourth quarter 2022 earnings call my name is beau and i will be your operator today at this time all participants are in a listen-only mode and please be advised that this call is being recorded after the speakers prepare to march there will be a question and answer session if you would like to ask a question during this time simply press star 1 on your telephone keypad And if you would like to withdraw your question, simply press star 1 again. And at this time, I'll turn the call over to Ms. Alice Lopato, Vice President of Investor Relations. Please go ahead, Ms. Lopato.

Good afternoon, everyone, and welcome to the Hims and Hers Health Fourth Quarter and Full Year 2022 Earnings Call. On the call with me today is Andrew Dudum, Co-Founder and Chief Executive Officer, as well as Yami Okupe, our Chief Financial Officer. Before I hand it over to Andrew, I need to remind you of legal safe harbor and cautionary declarations. Certain statements and projections of future results made in this presentation constitute forward-looking statements that are based on, among other things, our current market, competitors, and regulatory expectations, and are subject to risk uncertainties and that could cause actual results to vary materially. We take no obligation to update publicly any forward-looking statement after this call, whether as a result of new information, future events, changes in assumptions or otherwise. Please see our most recently filed 10-K and 10-Q reports for discussion of risk factors as they relate to forward-looking statements. In today's presentation, we have 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'll find a link to the webcast and Investor Relations website at investors.forhim.com. Please also note, we have created a new investor presentation that we hope will serve as a useful resource for both new and existing investors. You can find this on our investor relations website under events and presentations. After the call, this webcast will be archived on the website for 12 months. And with that, I'll now turn the call over to Andrew.

Thanks, Alice. Welcome to everyone joining us. 2022 was a transformative year for hims and hers, and I'm happy to be with you all today to review our performance and share our perspectives on the future. We're pleased to report an exceptional finish to a record year. Headlines by annual revenue of 527 million, more than 1 million subscribers, and over 10 million cumulative medical visits since inception, and importantly, the transition to adjusted EBITDA profitability in the fourth quarter for the first time in our company's history. This is an incredible moment for us all that serves as a testament to the strength of our company and approach. We find ourselves at an inflection point in which we're reaping the benefits of our size and scale. We believe our brand awareness and customer loyalty have never been stronger. Our product offerings have never been more expansive and personalized, and our platform's scale and insights are enabling clinical excellence and efficiency unlike anything in the market today. Even after this quarter of record-breaking growth, we have significant aspirations for our company's future. In commitment to these aspirations, we set an extremely high bar for disciplined execution across all teams within the organization. This approach is driven by the fact that our mission to help the world feel great through the power of better health is more relevant and essential for customers than ever before. By delivering on this at every level, we can continue taking leaps towards our goal of being a fundamental and beloved part of every household in the country. This mission is deeply personal because we, too, are customers. This is the enduring power of HIMS and HERS. We're experiencing a truly unique moment in history, a moment where customers expect hyper-personalization, on-demand access, and price transparency. A moment where technology and AI are capable of helping deliver both speed and accuracy in a complex analysis. And lastly, a moment where trust is a driver of consumer purchase behavior and where authentic brands are expected to reach out and build deep and enduring relationships with customers. As a company and as a team, we have never been more confident in our ability to capture this energy and seize this historic moment. with all of the tools and experience required to lead in this new world. We ended 2022 with the strongest quarter in our company's history, delivering not only continued momentum, but accelerating growth since going public over two years ago. Revenue, which was predominantly driven by recurring online subscriptions, grew 97% year over year, reaching a record 167 million in the fourth quarter. Efficiency and a disciplined approach toward investments have been crucial to our strategy and have enabled us to achieve our first quarter of adjusted EBITDA profitability, which was approximately $4 million in the fourth quarter. The underlying strength of our model, combined with ongoing velocity across the business, gives us a unique opportunity to operate profitably on a go-forward basis while continuing to scale our platform.