Hims & Hers: AI for Health Revolution

Last Updated: 16. Februar 2024By

Today, we are focusing on Hims & Hers, a company that operates in the booming market of telemedical consulting. Who is Hims & Hers and why does this company deserve your attention? As a specialist in treating taboo topics such as erectile dysfunction and sexually transmitted diseases, Hims & Hers has established a strong brand presence. With the AI doctor MedMatch, the company is now entering a new chapter of growth.

Revenue growth and increasing profitability As for the financial development, Hims & Hers has significantly increased its revenue in the last three years with an average annual growth rate (CAGR) of 88%. At the same time, the operating result (EBITDA) improved from a deficit of -97.6 million USD to -30 million USD in 2021. When and how was this growth achieved? Through consistent expansion and the clear goal of increasing profitability. Where do we stand today? Analysts predict an EBITDA of 119 million USD for the coming year, which would correspond to a significant margin of around 8%.

Six-month chart of Hims & Hers The stock is climbing along the blue 50-day line. (Source: Stock Screener)

MedMatch: AI innovation as a growth engine Why could Hims & Hers continue to be an interesting investment? The key lies in the innovative use of artificial intelligence through the MedMatch service. Originally developed for anxiety disorders, MedMatch is expected to be expanded to other business areas by 2024, which is likely to further increase the number of subscribers, currently at 1.43 million. Why is this relevant? Because it shows that Hims & Hers not only serves existing markets but also proactively taps into new growth opportunities.

Conclusion With the upcoming fourth quarter report on February 26, we are facing a crucial moment for Hims & Hers. The solid foundation, previous success story, and innovative use of AI promise to further strengthen the company’s market position. The strategic focus on untapped areas such as weight management and positive developments in the competitive environment, especially Amazon’s recent withdrawal from the healthcare sector, could make Hims & Hers a winner in the healthcare sector. I will closely monitor the situation and keep you updated on the latest developments and their impact on the stock and the overall market.