Our popular Hims & Hers ($HIMS (+4.16%) ) reported recent insights from the Morgan Stanley analyst conference.
I listened to the conversation between Morgan Stanley analyst Craig Hettenbach and Hims & Hers CFO Yemi Okupe and was able to gain insights into the company's strategies and future plans.
The conversation began with a look at the founding of Hims & Hers about a decade ago and how the platform has developed since then. Okupe emphasized that the company set out to transform the healthcare experience experience through technology. Traditionally, this has often been associated with friction and stigma, particularly around issues such as sexual health and hair loss. Hims & Hers has made it its mission to raise awareness of treatment options and facilitate access.
An important point was the transparency of the platform. Okupe explained that Hims & Hers relies on a subscription model where customers receive not just medication, but an entire ecosystem that allows them to communicate with providers and receive follow-up care - all at a transparent price. This avoids the usual headaches in the healthcare system, such as what is and isn't covered by insurance.
In the course of the discussion parallels were drawn with other industries were drawn, particularly to Netflix. Similar to how Netflix once started as a pure mail-order media content company, Hims & Hers initially focused on raising awareness and accessibility. The next step was to make the user experience more convenient and finally to achieve greater personalization through the use of data. Today, over 55% of subscribers on the platform have already switched to a personalized product, underlining the effectiveness of this approach.
A central aspect of Hims & Hers' strategy is the personalization. By collecting data and using feedback, the company aims to continuously improve the experience for its customers. Laboratory diagnostics and precision medicine are also set to play a greater role in the future. To improve the treatment of mental illness, for example, the MedMatch product was introduced, which identifies the most likely successful treatment based on the user's profile.
Another important point is the expansion into new categories. Although in the past Hims & Hers was primarily known for sexual health and dermatology, the company has continuously expanded its offering to include mental health and weight loss, for example. Okupe emphasized that great care is taken when selecting new categories, making sure that they are chronic and close to customers' hearts.
A major topic was the weight losswhich has become very important due to GLP-1 drugs such as semaglutide. Okupe explained that in the long term, Hims & Hers will focus on personalized semaglutide and oral treatment in order to meet the individual needs of customers and minimize side effects.
The vertical integration was also discussed in detail. Okupe emphasized that control over the entire value chain - from the brand to the platform to the connected pharmacy - allows Hims & Hers to better shape the customer experience and respond more quickly to changes. The expansion of production capacity, including a new peptide plant, underlines this approach.
Looking to the future Okupe sees great potential in the use of artificial intelligence and data. For example, chatbots could support customers in adhering to nutrition plans or proactively show them how they can optimize their health.
The final topic was the demographics of the subscriber base and the company's long-term financial goals. Okupe expressed confidence that Hims & Hers will be able to increase its user base from the current 2.2 million to ten million in the long term, while achieving an EBITDA margin of over 20%. Organic growth should also play an increasingly important role in this, as satisfied customers recommend the brand to others.
For me, the conversation had a lot of interesting content and it is fun to follow the company.
What do you think? Is there an opportunity to get back in after losing almost 30% in the last month?
