Hims & Hers Stock Jumps as Q1 Sales More Than Double

• Hims & Hers beat first-quarter profit and revenue forecasts as sales more than doubled.

• However, the health and wellness platform missed analysts’ estimates for current-quarter sales on the impact of changes with its weight-loss treatments and sexual health specialty.

• Hims & Hers hired former Amazon executive Nader Kabbani to be COO.

Hims & Hers Health (HIMS) shares surged 8% Tuesday, a day after the health and wellness platform posted better-than-expected results on soaring sales and subscribers.

The company reported first-quarter earnings per share of $0.20, with revenue skyrocketing 111% year-over-year to $586.0 million. Both exceeded Visible Alpha estimates.

Total subscribers grew 38% to 2.37 million, and monthly online revenue per average subscriber increased 53% to $84.

Earlier, shares were trading lower when the company noted it expects current-quarter revenue to be in the range of $530.0 million to $550.0 million, while analysts were looking for $564.3 million, per Visible Alpha. The downbeat outlook came as Hims & Hers moves away from providing a  version of the weight-loss drug in Novo Nordisk’s (NVO) Wegovy and Ozempic and makes changes its plan for sexual health products.

The company announced in February that it would stop offering a compounded treatment containing the obesity drug semaglutide after the first quarter following a Food and Drug Administration (FDA) decision that semaglutide was no longer in short supply.

In addition, in a letter to shareholders, co-founder and CEO Andrew Dudum explained that the transition being made in the firm’s Sexual Health specialty is designed “to align our investments toward long-term value creation, even if that results in temporary near-term headwinds for the business.”

The company separately said former Amazon executive Nader Kabbani would become Chief Operations Officer.

Shares of Hims & Hers are up almost 90% this year.

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