Hims & Hers Health, Inc. (NYSE:HIMS) Q4 2022 Earnings Call Transcript

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Currently, how do we make that simpler what are the dynamics that patients don’t like and what are their preferences and how can we improve those? What are the clinical options we have to drive better outcomes or do side effect profiles? I think those are a lot of questions that we’re asking on the customer support side that ultimately just results in a much happier customer, a much longer tenure customer and long-term a much more valuable customer.

Jonathan Yong: Great. Thank you.

Operator: Thank you. We go next now to Jaialendra Singh at Truist Securities.

Unidentified Analyst: Hi. This is on for Jaialendra. Thanks for taking my question. So, I understand you’re no longer providing specific figures for multi-month . So, just wanted to know like what are the percentage of multi-month orders continuing to trend upwards each quarter above, I think, 36% and that churn has improved from mid-single digits percent monthly?

Yemi Okupe: Yes. So, I think what we have disclosed in our materials is the ratio of subscribers that have a multi-month relationship with us relative to those that are more on a month-to-month. Currently, we have north of 70% of our users are on the multi-month €“ or on a month-to-month model. And then to your second question. Andrew, do you want to take that one?

Andrew Dudum : Sure. Sorry, I didn’t get the first part of that €“ for the second part of that, I’m sorry. Do you mind repeating it?

Unidentified Analyst: Whether churn has improved from the mid-single-digit percentage monthly?

Andrew Dudum: Yes. We haven’t reported on the monthly side, but continue to see really strong long-term retention rates in the north of 85%, which is what we reiterated this quarter.

Unidentified Analyst: Okay. And then just quickly, what are your thoughts on the sides of administration’s proposal last week, which would require patients to see a doc in person before getting attention deficit disorder medication or . Just kind of wondering what kind of percentage of your business today is tied to those kind of prescriptions?

Andrew Dudum: Yes, that’s a great question. We currently do not offer any type of controlled substances on the platform. They’re not permitted in any capacity. And so, there’s no part of the business today that would be affected by the Biden administration’s proposal that came out last week.

Unidentified Analyst: Alright. Thank you.

Operator: We’ll go next now to Jonna Kim at Cowen.

Jonna Kim: Thank you for taking my questions. Congratulations on a nice quarter. Just wanted to maybe get more thoughts on the retention rate you were talking about. How does the retention rate differ by single month versus multi-month? And what are some key strategies that you have in place to drive higher retention across different cohorts? Thank you very much.

Yemi Okupe: Yes. So, we generally see for multi-month, the retention rates are higher. For many of these conditions, they are chronic in nature, but for some of them, for instance, using hair loss as an example, it does take time to see the results show up. And so, they’re committing to multi-month. We generally see that those users are stickier. Many of the initiatives that we have had around retention have really just centered around evolving the customer experience. So, making it easier to switch, for instance, to a different cadence or your treatment. Also just having on the platform, the end-to-end experience where you’re able to solicit help and have a timely response. And as mentioned in the prepared remarks, we’re continuously looking for ways to evolve that customer experience to further increase the overall stickiness on the platform.

Jonna Kim: Alright. Thank you.

Operator: Thank you. We go next now to George Hill at Deutsche Bank.

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