Hims & Hers Health, Inc.

please press star 1 a second time. I would now like to turn today's call over to Bill Newby, Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to the Hims and Herself first quarter 2024 earnings call. Today, after the market closed, we released this quarter's shareholder letter, a copy of which you can find on our website at investors.hims.com. 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 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. CCR 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 tables to the most directly comparable GAAP financial measures contained in today's press release and shoulder letter. You can find this information as well as the link to today's webcast 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.

Thanks, Bill. Our first quarter results mark an outstanding beginning to the year. The momentum we built in 2023 is continuing as we further advance our mission to help the world feel great through the power of better health. The underlying strength of our business is propelled by an unwavering dedication to delivering the highest quality personalized care possible across each of our five core specialties, men's and women's dermatology, mental health, sexual health, and weight loss. Strong execution of our strategy is drawing more consumers to our platform than ever before, translating into robust financial performance. In the first quarter, subscribers grew by a record 172,000 quarter over quarter to over 1.7 million. Personalization continues to resonate with users. The number of subscribers opting for personalized subscription has nearly tripled over the course of the last year to north of 600,000 subscribers, representing just over 35% of subscribers on the platform. Our ability to efficiently acquire and retain users resulted in revenue increasing 46% year over year to $278 million, while also generating $32 million of adjusted EBITDA. We believe that our expanding portfolio of personalized solutions combined with the ability of our brand to reach and resonate with consumers at multiple stages of their health and wellness journeys are driving forces behind our continued success. I'd like to start by providing additional insight into how we see each of these evolving across the year. Starting with our portfolio of personalized solutions, we leverage hundreds of thousands of interactions on our platform to facilitate an understanding of key consumer concerns and challenges that may prevent individuals from reaching optimal outcomes. Partnerships with leading medical institutions and experts within each of our specialties then enable us to provide access to tailored clinical solutions that are crafted with a focus on safety, efficacy, and top concerns identified by our customers. This allows providers on our platform to meet their patients' clinical needs at an individual level, targeting things like side effects and adherence through personalized dosages, a variety of product form factors to drive adherence, and the ability to address multiple health conditions with one solution. Our infrastructure and scale provide us the ability to equip providers with a breadth of personalized treatment options at mass market prices. Continued expansion and refinement of our personalized portfolio will be a critical component behind our success in 2024 and beyond. In areas like weight loss and dermatology, We'll aim to improve the customer experience with more user-friendly form factors and eventually a broader selection of multi-action offerings. Just as with hard mints and heart health, our upcoming offerings will be focused on various customer needs and use cases across demographics through tailored treatments. Our recent launch of SexRx plus Climax Control is a great example of this type of innovation. A two-in-one offering designed to help men address multiple aspects of their sexual health without the need to take multiple pills. In the coming years, we expect the vast majority of our subscribers will be utilizing one or more of our personalized offerings. Our brand has historically played a critical role in our success. And early on in our company's lifecycle, we built trust and awareness with our customers by making conditions more approachable and driving awareness of these solutions. Traditionally, these efforts were targeted at consumers that were already being impacted by a condition within one of our specialties. Our aspiration is to make Hems and Errs synonymous with high-quality, personalized, affordable solutions. And as part of that ambition, we started to focus efforts on reaching consumers earlier in their journey with a narrative that resonates. In recent years, we have significantly increased our investments in channels that enable us to reach a broader set of consumers at different phases of their journey with a condition. This includes TV and other brand campaigns aimed at consumers during the most culturally relevant moments across society. These efforts are not aimed at immediate user acquisition. Rather, they are centered on raising awareness of our brand and platform capabilities early in an individual's journey with a condition, sometimes even before those journeys formally begin. A multi-specialty platform enables us to do this in an efficient manner, as we're able to speak to consumers broadly about a platform of capabilities versus an individual condition. It is clear to us that these efforts are starting to compound. We're seeing users actively seek us out, either by visiting our website directly or through other cost-effective channels. We believe this is happening as users associate the HIMSS and HERS brand with the treatment of a breadth of conditions and are seeking treatment on our platform, either the result of recalling prior messaging that they saw or increasingly through word of mouth from friends and associates. The growth and efficiency gains we saw in the first quarter are a direct result of these improving dynamics. and solidify our conviction in our ability to achieve our long-term adjusted EBITDA margin targets of 20 to 30%, while simultaneously maintaining an attractive growth profile. This is an incredibly exciting time for our business. In a very short period, I believe we have established him and hers as the clear leader for accessing high-quality personalized care and the efficiency gains we are seeing throughout our model ensure we can continue to build upon that position for years to come. There are three underlying components of this model that allow us to bring this differentiated value proposition to market. First, our technology platform, which serves as the backbone of our innovation process and allows us to seamlessly integrate structured data and direct feedback from both consumers and providers, offering invaluable insights into our user preferences and needs. This provides us with critical insights into customer behaviors, why users adopt certain solutions, why they may switch to another, and why they adhere to particular products. Importantly, we also recognize the sensitivity of this data, and we take significant steps to prioritize customer trust and safety through our commitment to data privacy and security, compliance with ethical privacy laws, and transparency about how we use data. Second, our team of internal medical experts oversee this entire process. With expertise across each of our core specialties, these individuals help ensure that each offering aligns with the highest standards of clinical excellence. And finally, our affiliated pharmacies help ensure that every step of production, from formulation to packaging, upholds the integrity of our brand and meets the exacting standards of our customers. This enables us to offer access to a wide array of personalized solutions. solutions that historically were only available to the wealthiest segments of society at truly accessible prices. Investments across these key pillars are fundamental to our ability to meet growing demand we're experiencing and fuel future growth. In the near term, this means additional investments in our affiliated pharmacies. Enhancements in both breadth and capacity will position us to further accelerate market penetration while ensuring a best in class experience for our customers. Through the integration of robotics and specialized software, we aim to build the necessary infrastructure to bring our unique offering to tens of millions of individuals. These investments will allow us to continue deploying a strategy that focuses on offering a diverse range of solutions that our providers can use to effectively meet individual needs. As we expand these capabilities, We are thrilled to announce that several new and exciting solutions will be launching on our platform in the coming weeks. I look forward to sharing more details as these solutions become available later this quarter. Before I close, I want to thank our teams for their outstanding levels of execution to start the year. We have created a platform that delivers a seamless and comprehensive customer experience by providing an expanding portfolio of personalized solutions at compelling prices. I take extreme pride in how we serve our customers and I look forward to extending this experience to an ever-growing audience in 2024. Before passing to Yemi, I'd like to reiterate a clarification I shared yesterday. The last few days have been a disheartening reflection of just how divisive a time we live in, and my words have been misconstrued by some. I in no way condone nor support acts or threats of violence, anti-Semitism, or intimidation, and there's absolutely no justification for violence on our campuses. Every student deserves to feel safe without fear of harm or being targeted for who they are. I am deeply saddened that my support for peaceful protest has been interpreted by some as encouraging violence, intimidation, or bigotry of any kind. I do believe deeply in the right for people to use their voices in peaceful protests to drive change. This right is critical to our democracy and must be protected. Our world today is more just because students throughout history have courageously taken to their campuses and used their voices to force change. Generations of Americans have engaged in nonviolent protests, and these movements have led to some of the most important changes in our country's history. As a father whose children are both the descendants of Palestinian refugees who fled the Nakba in 1948 and the descendants of Holocaust survivors from Poland, as I've previously shared, I have a personal appreciation for the different perspectives people have, which I live with daily at my dinner table. I hope and pray for peace and for an end to violence everywhere. With that, I will pass it over to Yemi to walk through our financials in greater detail.