Hims & Hers Health Inc

Hims & Hers Health, Inc. (NYSE: HIMS) provides a consumer-first platform, which helps customers to fulfill their health and wellness needs. The Company’s digital platform offers access to a provider network, a clinically focused electronic medical record system, digital prescriptions and cloud pharmacy fulfilment.

Recent Business and Financial Updates:

• Financial Performance Overview: In the first quarter of 2024, Hims & Hers experienced significant growth across critical financial indicators compared to the corresponding period in 2023. Revenue surged by 46% to USD 278.2 million, surpassing the USD 190.8 million reported in the first quarter of 2023. The gross margin expanded to 82%, up from 80% year-over-year. Particularly noteworthy is the company's attainment of a net income of USD 11.1 million in the quarter, a marked improvement from the net loss of USD (10.1) million incurred in the first quarter of 2023. Adjusted EBITDA demonstrated remarkable growth, reaching USD 32.3 million compared to USD 6.1 million in the prior year's first quarter. Additionally, net cash provided by operating activities increased to USD 25.8 million from USD 9.5 million, while Free Cash Flow rose to USD 11.9 million from USD 7.0 million in the same period.
• Moving forward, Hims & Hers delineates its financial projections for the ensuing quarters and the entirety of 2024: For the second quarter of 2024, the company anticipates Revenue to range between USD 292 million and USD 297 million. Adjusted EBITDA to be in the range of USD 30 million to USD 35 million, reflecting an Adjusted EBITDA margin of 10% to 12%. For the entirety of 2024, Hims & Hers foresees, Revenue to fall within the range of USD 1.20 billion to USD 1.23 billion. Adjusted EBITDA projected to be between USD 120 million and USD 135 million, corresponding to an Adjusted EBITDA margin of 10% to 11%. These projections underscore the company's sanguine outlook and strategic planning endeavors aimed at fostering sustained growth and profitability throughout 2024 and beyond.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands upward trending with a value of 51.20, with expectations of a consolidation or an upward momentum in the stock price. Additionally, the stock's current positioning is between the 21-period SMA and 50-period SMA, which may serve as dynamic short to medium-term support and resistance levels respectively. The price is currently near important support levels of USD 12 - USD 12.50, with expectations of an upside from these levels incase these levels hold.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to Hims & Hers Health, Inc. (NYSE: HIMS) at the current market price of USD 12.92 as of May 13, 2024, at 07:55 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 13, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.