Hims & Hers Health, Inc.

If you would like to withdraw your question, again, press star one. I would now like to turn today's call over to Alice Lopato, Vice President of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to the Hims and Hers Health Third Quarter 2023 Earnings Call. On the call with me today is Andrew Dudum, our co-founder and chief executive officer, as well as Yemi 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 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.hims.com. 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.

Thank you, Alice. At HIMS and HERS, our mission is to make the world feel great through the power of better health. This quarter, we delivered on this mission across the board. Execution in the third quarter was exceptional. Our unique offering of personalized solutions at compelling price points resulted in increased market share across categories, such as sexual health, care for both men and women, and mental health. Our mental health offerings surpassed 125,000 subscribers in the third quarter, while maintaining triple digit growth. Our execution translated into outstanding financial performance in the third quarter, Revenue was up 57% year over year in the third quarter to $226.7 million. And our brand and expanding offering of personalized solutions continued to resonate with more and more consumers, enabling us to surpass 1.4 million subscribers. In the third quarter, we generated 12.3 million of adjusted EBITDA, up over 18 million relative to the third quarter of last year. while simultaneously delivering strong growth. Our ability to grow both quickly and efficiently while consistently delivering improved profitability is a testament to the team's outstanding execution and demonstrates the strength of our underlying model and the size of our expanding addressable markets. Continued progress across strategic initiatives essential to our long-term strategy of delivering unmatched personalized care, provides us with conviction in our ability to continue to drive higher market share and robust financial performance. In the third quarter, we achieved a number of key milestones. First, her subscribers nearly doubled year over year in the third quarter. The expansion of personalized solutions earlier this year within our women's hair and dermatology offering Combined with continued strength and mental health were key contributors to our success in the third quarter. With improved economics quarter over quarter, these offerings are pacing towards achieving the high quality efficiency metrics of our most optimized business lines. Next, we drove meaningful gains from our efforts to verticalize our affiliated pharmacies. Nearly 80% of orders in the third quarter were filled through our affiliated pharmacies. And it is our expectation that nearly all orders will be filled via affiliated facilities by year end. The successful completion of this effort is years in the making, and we have strong conviction that it will unlock further differentiation in pharmaceutical capabilities unmatched by the majority of offerings in the market. Lastly, we neared completion on our weight management offering. Rolling out in the coming weeks, this offering will deliver a comprehensive portfolio of generic pharmaceutical treatments at mass market pricing. Leveraging widely studied treatment compounds and sophisticated pharmacy capabilities, we believe weight management will deliver exciting treatment efficacy by helping curb cravings, reduce binge eating, and supporting healthy metabolism. In addition to the ongoing execution across key strategic initiatives, Innovation in the third quarter brought the exciting expansion of capabilities within our technology stack. We believe that key to our mission is building a foundation of innovative technologies that deliver unmatched clinical care. Since our inception, we've invested in our proprietary platform that sits at the center of all provider and consumer interactions, and today powers over 14,000 visits per day. Our platform has undergone nearly seven years of development, and with the breadth of services, personalized solutions, and capabilities we now offer, it is meaningfully accelerating the quality of care the providers on our platform can deliver. Last quarter marked the beta launch of a significant evolution of our technology platform, MedMatch. MedMatch is a proprietary service that deploys artificial intelligence and machine learning against the expansive data set at the core of the HIMSS and HERS platform. MedMatch is trained on millions of anonymized historical clinical visits, demographics, treatment types, and patient outcomes, and is being developed to identify the most optimal treatment for a particular person, from medication formulary to dosage to form factor. With MedMatch, clinical decisions and treatment recommendations will be supported and informed by the collective knowledge of thousands of providers and millions of data points. We believe connecting the right patient with the right personalized treatment will result in better clinical outcomes and greater likelihood of long-term patient happiness. Our expanding portfolio of personalized solutions opens the door to more choices of treatments for consumers. MedMatch provides the ability to leverage thousands of interactions to help providers more quickly identify treatments, as well as inspire confidence with consumers that a specific treatment has worked for patients like them. This robust technology is continuously learning, which we believe will result in increased effectiveness with each incremental customer, all while maintaining the highest standard of safety and privacy. We are initially deploying MedMatch for customers seeking support for mental health. Psychiatric conditions result in some of the most frustrating patient experiences. With a wide range of pharmaceutical formularies and dosages, along with varying degrees of provider experience and expertise, treatment for mental health disorders can be long, burdensome, full of side effects, and often feel like a process oriented around trial and error. With MedMatch, we aim to alleviate months of trial and error with clinical insights that leverage the collective knowledge of the entire HIMSS and HERS platform. In this initial psychiatric beta, MedMatch improved remission rates, time to remission, and customer satisfaction. Within this initial cohort, providers are overwhelmingly utilizing the insights and recommendations MedMatch is delivering. helping providers improve their speed to decision for patients, which we believe will ultimately increase the likelihood of a better patient outcome. At the heart of our business is patient trust, trust in their provider, in their care plan, and in their treatment to work. We believe the application of MedMatch will be transformative for healthcare and will usher in an unprecedented level of patient confidence in the care they receive. I could not be more excited to bring an innovative solution that has the capability to improve patient outcomes for a condition that impacts almost 1 billion people around the globe. Capabilities like MedMatch have the ability to amplify the impact of personalized solutions on our platform, and as mentioned earlier, are a critical component of the transition to a truly personalized centric platform. As I've long said from the beginning, Tims and Hers has leveraged technology to empower both providers and patients with more accessible and personalized treatments. With today's advances in AI and machine learning, our technology is accelerating at an unparalleled pace. As our customer population grows, every new customer is helping us to deliver transformative care into the future by enriching and expanding our proprietary data stack and accelerating the impact MedMatch can deliver on better outcomes. More details around the inner workings of MedMatch are available on our website. Before I close, I wanted to reassert that our outstanding levels of execution give us tremendous confidence in our ability to bring innovation to our customers for the long term. Today, we're capturing market share at a rapid pace across categories, which will further grow our position as a trusted brand for the overall health and wellness market. With customers adopting personalized treatments at rapid levels and our ability to leverage our affiliated pharmacies to bring innovative products at mass market pricing, our market leadership position will only get stronger. And we are excited to see increased value per customer already as a result. And as we enter a new age in which AI will become more widespread, our ability to bring technology breakthroughs like MedMatch to market brings us closer to recognizing our vision of providing quality clinical care well beyond traditional approaches. These accomplishments have enabled us to deliver high revenue growth and healthy cash flows, strengthening an already stellar balance sheet. In light of our performance and our conviction for the strong trajectory we have ahead, we will be taking on the opportunity to repurchase our shares well below what we consider to be their intrinsic value. To give ourselves the flexibility to act opportunistically, we are implementing a program that allows us to purchase up to $50 million of stock over the next two years. The durability of our business and solid balance sheet will allow us to act on this opportunity without the need to sacrifice on either the current momentum of innovation or wealth of growth prospects in front of us. With that, I'd like to thank our team for the exceptional execution and focus, our shareholders and partners for their trust, and we'll turn the conversation over to Yemi to discuss further financials.