Hims & Hers Health, Inc.

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the HIMSS and HERS first quarter 2023 earnings 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 at that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. It is now my pleasure to turn today's call over to Alice Lopato, Vice President of Interest Relations. Ma'am, please go ahead.

Good afternoon, everyone, and welcome to the Hinson-Harris Health First Quarter 2023 Earnings Call. On the call today, our prepared remarks will be presented by Andrew Duda, co-founder and chief executive officer, as well as Yamil Kupe, our chief financial officer. Before I hand it over to Andrew, I need to remind you of legal safe harbor and cautionary declaration. 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 risks and 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 a 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.4hims.com. After the call, this webcast will be archived on the website for 12 months. Before jumping into our results, I wanted to know that Andrew is currently on paternity leave and our prepared remarks are being recorded. Following these remarks, Yemi will host the live Q&A. And with that, I'll now turn the call over to Andrew.

Thanks, Alice. Welcome, everyone, and thank you for joining us. 2023 is off to an incredible start as we made significant progress towards our mission of helping the world feel great through the power of better health. The momentum of our business model is stronger than ever. Strong execution across our four strategic pillars, trusted brand, leading technology, innovative products and services, and clinical excellence is enabling us to draw in more consumers and emerge as a leader at the forefront of an immense opportunity. When we look at our market opportunity, there are more than 100 million Americans suffering from a chronic condition. And in some cases, as high as 90% of the population have yet to be treated. These statistics are staggering, and they highlight why our mission is so crucial. Therefore, we're not just focused on providing access to treatments. We're also dedicated to empowering people to take charge of their own health and well-being through a trusted and beloved brand. We believe that by helping people make positive changes in their lives, we can make a meaningful impact on the health and happiness of millions of people across the world. Now diving into the details, of our first quarter results. In the first quarter, we generated revenue of $190.8 million, up 88% year over year, driven by our growing subscriber base of over 1.2 million subscribers, up 87% year over year. We achieved these strong growth rates all while increasing adjusted EBITDA $2.2 million over the fourth quarter to $6.1 million in Q1. These results are in large part due to over 90% of our Q1 revenue coming from online recurring subscriptions. Our ability to execute on our mission is powered by our four strategic pillars. These pillars create a powerful network effect that starts with our trusted brand, which drives consumer demand. Through the growth of our consumer base, we're able to gather insights and feedback to garner better personalized customer care and preferences. that help us refine our technology platform, which then informs our product roadmap to deliver access to more personalized products and treatments. All of this done in partnership and collaboration with leading clinical and pharmaceutical specialists enables an experience which we believe is unlike anything available in the market. The development of our trusted brand is critical to our ability to drive and retain consumers on our platform through increased awareness and deep relationships. It allows us to secure strategic partnerships with leading retailers and celebrities. These partnerships enable us to deploy a powerful omnichannel approach, reaching consumers at multiple stages and in multiple forums during their journey towards improving their health and wellness. In the first quarter, we partnered with Kristen Bell as our mental health ambassador for the Hearst platform. Kristen's reputation as a trusted figure and her ability to authentically talk about her mental health struggles resonated with customers and made dealing with mental health challenges more approachable for thousands of people. This, paired with our multi-platform marketing approach, resulted in record-level acquisition in our HERS mental health offering for the first quarter. Our platform has enabled the HIMS and HERS brands to scale across numerous offerings, including men's health, women's health, dermatology, and now mental health. With our diverse offerings, we're able to speak to a broader set of consumers earlier in their health and wellness journey in an efficient manner. Our multi-category campaigns have been instrumental in building awareness of the wide array of solutions on our platform. We're excited to continue this momentum and to create more engaging content that speaks to the needs of our customers across different conditions. As our platform continues to scale, we will deploy our leading technology to leverage unique insights, delivering access to world-class care for our customers and best-in-class tools for our providers. In the first quarter, we made a number of updates for our platform to ensure customers have an easy-to-use, educational, and personalized experience. The rollout of account management tools made it more seamless for our consumers to get the treatments that they need at the cadence they desire, and in a broader variety of form factors to meet their needs. Additionally, we were pleased to see conversion across several offerings increase as consumers experience more personalized and specialized onboarding experiences. Through the power of scale, our platform generates insights that are enabling us to deliver an expanding number of innovative products and services that customers love. Our over-the-counter products are a great example of this and has become increasingly popular. especially our hair care products. In the first quarter, we added a new anti-dandruff shampoo for HEMS customers, which expands our existing line of men's hair care products and can be bundled with our prescription offerings. Moving to our more personalized products, we strive to provide customers with access to treatments that fit in their diverse needs. In February, we launched Hard Mints by HEMS, a personalized men's sexual health solution which was met with tremendous consumer response. The ability to obtain a customized treatment, beautiful and discreet packaging, and best-in-class provider services are resonating with our consumers. We feel that personalization of products and services is the way of the future, and you can expect more launches from us throughout the year. In the second quarter, we expect to expand access to personalized solutions for hair regrowth on the HRS side of the business. It's often believed that hair loss is caused simply by factors like aging or stress and is not necessarily understood as a medical condition that can be treated. From our customers' feedback, we've learned that this can lead to women feeling anxious and ashamed. We're incredibly proud to be working on future offerings that provide a more personalized treatment to help remove barriers around season health. Finally, we view the integrity of clinical excellence on the platform as critical to every decision we make. In the first quarter, we deepened our medical bench with the addition of Dr. Dan Lieberman as our SVP of mental health. Dr. Lieberman will oversee our psychiatry and mental wellness strategy, working to ensure this offering continues to maintain high clinical excellence as we work towards more innovative solutions for customers. We are confident in our platform's ability to help users access treatment across a broader set of conditions. Medical expertise to ensure both efficacy and safety is central to our ability to do that effectively. That is why we've added five new experts to our medical advisory board that bring expertise across conditions such as weight management, menopause, and cardiometabolic health. We are proud of the execution at the start of this year across our four strategic pillars and the strong performance that has come as a result. This has enabled us to attract talent at all levels of the organization. In our first quarter, we welcomed a new SVP of product and continue to further augment leaders across each of our functions. Additionally, Christiane Pendarvis joined our board of directors. Christiane brings over 25 years of experience leading global consumer and retail brands, including Old Navy and Victoria's Secret. and is a proven customer-centric leader with a track record in helping brands drive growth. She's currently the co-president and chief merchandising and design officer for Rihanna's Savage Fenty, a revolutionary intimate apparel brand known for its focus on inclusivity. In just a short period, Christiane's expertise has added significant value as we work to help the world feel great through the power of BetterHelp. We made significant progress in Q1 across all facets of the business and have tremendous confidence in our ability to continue to expand our market leadership position and drive long-term growth. Given the strong customer demand we're seeing and the scale that we are generating in our model, we are raising our 2023 guidance and now expect to achieve revenue growth of 54% to 58% and adjusted EBITDA profitability of between 25 and 30 million. Our platform is scaling in a unique way that is enabling us to leverage economies of scale that we believe few others can. Over 60% of our orders are fulfilled through affiliated pharmacies, and we expect that number to continue to increase as we progress throughout the year. We're excited to reinvest back into the customer experience in a way that drives more value to a broader consumer base in a way that is truly unique. I want to especially thank our teams throughout the organization for their passion and hard work, which is helping us drive robust and consistent results across the business. Equally important, we greatly appreciate the continued support of our customers and shareholders. We look forward to delivering strong growth and profitability and building increased shareholder value for all of our stakeholders over the long term. Now, I'll turn the call over to Yemi to discuss the financials and provide more detail on our increased outlook for 2023.