Hims & Hers Health, Inc. (NYSE:HIMS) Q2 2023 Earnings Call Transcript

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Jungwon Kim: All right. Thank you.

Operator: Your next question comes from Jonathan Young with Credit Suisse. Your line is open.

Jonathan Young: Hi. Thanks for taking the question. Just on the cardiovascular expansion, I imagine most consumers on ED are utilizing hence for some level of privacy away from their traditional PCP, but stepping into cardiovascular, it may bring the traditional PCP in. So I guess, how are you thinking about this aspect that there is some friction if any from your perspective?

Andrew Dudum: Thanks, Jon. It’s a great question. One of the unique things that we’ve noticed about this business and it continues to be true is overwhelmingly, the patients that come to the platform every day, our first-time customers. And what that means is they often do not actually have a primary physician for which they know the name and have a relationship with. This is overwhelmingly the case for people in their 20s, 30s, 40s and even 50s. And so in many ways, what we are doing is bringing individuals that are outside of the health system today into the health system for the first time. And so we believe we can be that first point of contact in partnership with these organizations, such as the American College of Cardiology and building great clinical protocols into the platform.

And then as – we continue to expand through a lot of the brick-and-mortar partnerships we’ve had such as Ochsner and Carbon Health and Sinai continue to expand that network. So that from a geographical footprint standpoint, we can hand off patients that are necessary to be seen in the brick-and-mortar and in person. And so in a lot of ways that issue doesn’t come up for us and it’s because those that are coming to us for the most part do not have a deep relationship with an individual provider and are having their first major relationship with Hims & Hers directly. So I think it’s a real opportunity actually to expand market share of those engaging with the system and ultimately get those people to the right outcome.

Jonathan Young: Okay. I appreciate the answer there. And then just on the pricing headwinds that you talked about the $12 million to $18 million. Is there a disproportionate impact on 4Q because it looks like based on your guidance, 4Q revenue could actually be down sequentially from 3Q? And then as we think about 2024, should we think of the lingering impact is maybe one to two-point headwind to growth. Thanks.

Yemi Okupe: Yes, Jonathan, I think that’s a great question. I think that really the impact will be spread across Q3, Q4 – our guide anticipating as Andrew mentioned, we’re going to be very precise with these changes. We still do want to retain the flexibility to potentially as newer categories roll out and if we see more efficiency only into those. Again, I don’t think we’re going to use pricing as a blunt tool. We use this as a very precise tool of all the data that we collect. Really, what we expect to see is as the marketing teams continue to their acquisition message as well as we start to head into kind of the Q2 time frame of 2024, you’ll start to get the benefit on both acquisition as well as we feel all signals point to even higher retention, that we’ll have across our base. And so there might be some pressure in early 2024. But really, we expect to start to lock that in Q2 and then kind of see the full strength of the effects in Q3, Q4.

Jonathan Young: Thanks.

Operator: Your next question comes from Jailendra Singh with Truist Securities. Your line is open.

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