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Hims & Hers First Quarter Results Highlight Benefits of Increased Marketing Spend and Online/In-Store Presence

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The news: Hims & Hers reported positive growth in its first quarter earnings report.

Key statistics:

  • First quarter revenue increased 94% year-over-year, from $52.3 million to $101.3 million. This marked the first time His & Hers Quarterly Revenue exceeded $100 million.
  • Hims & Hers witnessed it largest ever increase in membership this last quarter. Its subscriptions grew to 710,000 (an 82% year-over-year increase).
  • Its massive subscription growth has been attributed in part to its new mobile platform, that drove organic adoption, according to CEO Andrew Dudum.
  • Him and her spent $823,000 on marketing in the first quarter – less than half of what it spent in the first quarter of 2021 ($1.85 million).

How we got here: Hims & Hers increased its marketing spend and diversified its healthcare offerings after its public debut in 2021.

Its membership spike shows that its significant marketing investment in 2021 has paid off.

  • It increased its marketing investment from $20 million in the first quarter of 2021 to $28 million in the third and fourth quarters of 2021.

And it has expanded its footprint and product lines.

  • It has expanded its online and in-person sales to more than 20,000 outlets through partnerships with SVC, Walgreens, walmart, CGN, Bed bath and beyond, Amazonand fashion retailers Turn and Urban Outfitters.
  • This acquired virtual dermatology startup Apostrophe and virtual hair loss clinic based in the UK honest health in June 2021.
  • And that extended its digital mental health offerings in July 2021.

And after? Rising inflation and slowing economic growth in the pandemic era could make it harder for Hims & Hers to meet sales expectations and membership growth milestones.

The company’s omnichannel presence, however, could protect it from a drop in sales.

  • 80% of consumers prefer to use digital channels (such as online messaging and virtual appointments) when communicating with their healthcare providers at least some of the time. 44% prefer it most of the time, by December 2021 research from Redpoint Global.
  • Most of Hims & Hers’ revenue in the first quarter came from its online sales ($94.1 million) compared to its retail sales ($7.2 million).