Hims & Hers plummets 16% after first-quarter loss, weak earnings guidance

Telehealth company Hims & Hers' stock plummeted in early trading Tuesday after posting a first-quarter loss and weak earnings guidance for the year ahead.

The digital health firm reported a net loss of $92 million in its first quarter earnings on Monday, compared with roughly $50 million for the same period the prior year. Its adjusted Ebitda was $44 million, down from $91 million last year. Meanwhile, revenue was up 4% to $608 million. Average monthly revenue per subscriber was $80, down from $85 last year.  

Hims is expecting revenue in a range between $680 million and $700 million for the second quarter, and is forecasting up to $3 billion in revenue for the full year.

It forecast adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) up to $55 million for the second quarter, and up to $350 million for the full year.

The company's stock was last trading down 15.7% in premarket trading.

Hims & Hers shares year to date.

Citi analysts described the forecast as "mixed" and noted that Hims & Hers second-quarter outlook came in below Citi's estimates.

The analysts also flagged that the first quarter marks a "transition" phase for the company as it reduces its reliance on compounded GLP-1s.

Hims reached a deal with Novo Nordisk in March to sell its GLP-1 weight loss drug Wegovy on its platform while committing to stop advertising cheaper copycat versions of the drug known as compounding drugs.

Hims stock has often reacted strongly to any news that may affect its ability to sell weight loss drugs to consumers, which has been a highly profitable business for the telehealth company.