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

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Jailendra Singh: Yes, thank you and thanks for taking my questions. I just want to stay with this last topic about pricing changes impacting in the quarter and the year guidance. Just trying to reconcile that with strong trends in AOV. You talked about it earlier. Are you saying that just because you lower the prices and longer duration offering you saw more adoption and that drove AOV higher, and if that’s the case then are you – $5 million headwind in the quarter and $12 million to $18 million headwinds for the year is that before that benefit on AOV, or is it net of AOV benefit?

Yemi Okupe: Yes. Thanks for the question Jailendra. I would reiterate that while we provide AOV statistics, management is definitely not optimizing on AOV. I think we’re really optimizing for the total share of the customer which comes in the form of the monthly average online revenue as well as basically what the total LTV for a cumulative customer look like. That said, the AOV dynamic is when a customer makes a commitment upfront, their monthly rate what they pay per month may be lower, but because they’re committing to you more months upfront. That in essence starts to drive the AOV higher. And so I think that the guidance that we gave in the $12 million to $18 million range is fully comprehensive of all of the different puts and takes on that.

Jailendra Singh: Okay. And then, my follow-up on all this focus on personalized treatment. Maybe talk a lot — a little bit more about the investments you’re doing not only technology and platform point of view, but also in terms of provider training or new providers you’re bringing on your platform. And related to that, I was wondering, if you can spend some time on your relationship structure with the affiliated medical groups given all the recent confusion and concerns, on that partnership has been?

Andrew Dudum: Thanks Jailendra. There’s a lot of education that goes into this platform across the bar. So we leverage a lot of the kind of best-in-class clinical and academic partnerships outside of our walls as well as our medical directors to bring together what those protocols should be, because a lot of this is truly innovative. And for heart health as an example, partnering with the American Cardiology was critical in an underlying or identifying the underlying risk factors that these patients are having. So there’s a big coalition building aspect of this, that then gets consolidated down and actually built into the EMR and into trading programs. So the teams are able to get fully informed about these guidelines, and the providers are able to make those independent choices and clinical best practices that they feel are appropriate for the patient.

And generally this is how the platform has always worked. And as we expand these capabilities and expand the pharmacy relationships and the treatment ranges, it allows providers to go after treating patients more holistically.

Jailendra Singh: All right. Thanks guys.

Operator: Your next question comes from George Hill with Deutsche Bank. Your line is open.

George Hill: Yeah. Good evening guys and thanks for taking my questions. I have one for Andrew and one for Yemi. And I guess Andrew, first, I’m going to kind of take the opposite tack on the new cardio product with the launch of the cardio product and the behavioral initiatives, you guys are getting into more disease states that are not self-diagnosable or not typically considered self-diagnosable, so I’d love to hear how you think about like what other disease states that the company feels like it can go into for market growth. And then Yemi this is just kind of a housekeeping question. Is the 12 — I want to parse pieces here is the $12 million to $18 million headwind in the back half of the year, solely the headwind from the repricing initiatives, or is there a way to parse out the repricing from the expectations on a tough comp in the back half of the year? And kind of like I know that’s kind of splitting out the a little bit, but would appreciate any color.

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