Some general Info about HIMS-
Hims & Hers ($HIMS) is a telemedicine company which allows anybody across the continental United States(and soon to be UK and Europe) to purchase medicine discreetly, safely, quickly, and inexpensively straight to your door. For prescription medicine, Hims & Hers employs hundreds of specialized doctors, which can prescribe medicine through call, text, or video chat. Hims & Hers offers a wide variety of products which continues to expand, such as:
-Hair Loss and Care
-Sex products (ED, PE, Birth Control)
-Skin Care/Acne products
So I wanted to do some DD because Earnings should be coming out sometime early-mid august and I expect this to be the first quarter where they can show positive EBITDA, I would expect nothing less than absolutely stellar numbers across the board, with a highlight on YoY revenue growth.
Customer acquisition, expanding their base of users and subscriptions by expanding into multiple sectors of mens, womens and even mental health
Bridging the gap between being a telehealth provider and the standard retail brick and mortar model, by establishing partnerships with companies like Target and Urban outfitters putting their products in these big box stores that we all shop at.
Acquiring companies like Apostrophe, which is a multi-specialty telehealth platform, it was also a competitor, well not anymore now HIMS is the parent company. (Remember how FB liked to buy out all of their competition until they became the biggest platform on the planet… ya HIMS is taking a page straight out of the Zuck's playbook)
Future Growth prospects; HIMS is expanding into the UK and Europe giving them access to a greater reach of customers, and as we all know, balding, ED, Acne, etc… is not something there is a permanent cure for and something a lot of people suffer from, with a subscription based model they're basically able to lock in long time recurring customers, so you put 2 and 2 together, you put the product in more countries, you get more subscribers.
Before you tell me that HIMS hasn't turned a profit BLA BLA BLA, Let's look at their last earnings report.
Financially stable – over 90 Million in cash on hand + short term investments, with 0 short/long term debt Gross Margin of 77% last Quarter, 74% for 2020 (54% in 2019) 2.6B Market Cap Negative (but improving) Cash Flow Q4 EPS of -.07 (Beat by .09) Revenue of $148.8 MM for 2020, 80% yoy growth 2020 Q4 Revenue of $41.5 MM (Beat by $4.47 MM) Q1 2021 Revenue expects $48 – $50 MM $195 – $205 MM overall 2021 Revenue estimate Over 3 Million consultations 91% Recurring Revenue
Simply put, Hims & Hers has consistent, growing revenue and gross margin growth, and the driving factor for their negative EBITDA are their investments into furthering expansion, customer acquisition/company acquisitions that will only help solidify their cash flow and subscription services on the back end in the future.
Last point, just from a trading perspective, HIMS is down thirty percent the last month, and went down 8 percent today, Now is the time to buy a few weeks before a potentially huge earnings report, and with 52 wk low of 8.09, It's definitely at or near the bottom right now. Please note, this isn't a fucking short squeeze BUT the short interest 13% which is kind of high…
TL;DR I've got a boner for HIMS, Jacked to the Dick, YOLO, 8/20 10c all in
Jump To The Original Source