By Kamal Choudhury and Amina Niasse
(Reuters) -Hims and Hers Health beat Wall Street estimates for third-quarter revenue on Monday, as the telehealth company added subscribers and expanded its personalized healthcare offerings.
The company and rivals have launched programs that offer “personalized” versions of semaglutide, the active ingredient in Novo Nordisk’s weight-loss drug Wegovy, at doses not accessible through the branded manufacturers, following the government’s ban on the mass production of copies of those drugs.
Hims and Hers’ subscriber base increased to 2.47 million, up 21% from the prior year, while monthly online revenue per average subscriber climbed 19% to $80.
Keonhee Kim, an analyst at Morningstar, said Hims’ online revenue growth was largely organic, even though the company in June acquired healthcare platform Zava to better reach consumers in the United Kingdom.
“We think HIMS is still very much a fast-growth business that is willing to allocate a lot of capital at the cost of margins to fuel growth,” said Kim.
The San Francisco-based company also said it expected its hormonal therapy and diagnostic testing businesses to grow its revenue.
Accounting for revenue contributed by Zava, Hims core offerings generated an estimated $175 million in quarterly revenue, Kim said.
Shares of the company were up about 6% in after-market trading on Monday.
Its quarterly revenue came in at $600 million, exceeding analysts’ estimates of $580.2 million
The company reported an adjusted profit of 6 cents per share for the quarter ended September 30, lower than the average analyst estimate of 10 cents, according to LSEG data.
(Reporting by Kamal Choudhury in Bengaluru and Amina Niasse in New York; Editing by Sriraj Kalluvila)
