Strong financial performance and outlook enables capital allocation flexibility to invest for growth and return value to shareholders through opportunistic repurchase program
Hims & Hers Health, Inc. (“Hims & Hers” or the “Company,” NYSE: HIMS), the leading health and wellness platform, today announced that its Board of Directors has authorized a share repurchase program of up to $50 million of outstanding Class A common stock over the next two years. Hims & Hers intends to use the program to repurchase shares on a discretionary basis from time to time, subject to general business and market conditions and other investment opportunities, through open market purchases, privately negotiated transactions or other means, including through 10b5-1 trading plans. This repurchase program may be commenced, suspended or discontinued at any time.
“Given the growing strength of our financial profile and strong cash flow position, we are excited to announce we are implementing a share repurchase program to take advantage of an attractive opportunity and return value to shareholders. While we’ve seen substantial volatility in the capital markets impact our share price in the short-term, this new repurchase program reflects our deep confidence in the intrinsic value of our business,” said Co-Founder and CEO, Andrew Dudum.
The decision to implement a repurchase program is driven by the Company’s strong business performance, demonstrated by record adoption of personalized solutions and services by customers, expanding market leadership, and consistent financial outperformance, and the belief that its shares are trading well below their intrinsic value. Hims & Hers has consistently delivered high revenue growth and healthy cash flows alongside a strong balance sheet and the repurchase program gives the Company the flexibility to act opportunistically while continuing to invest in innovation and growth.
Today, the Company also announced financial results for the third quarter 2023, showing that execution across the business continues to deliver strong financial performance. Revenue was up 57% year-over-year in the third quarter to $226.7 million, and the Company surpassed 1.4 million subscribers. For the full year, revenue is expected to be between $868 and $873 million, up 65% to 66% year-over-year. With cash and short-term investments growing to over $212 million as of the quarter end, and strong cash flow from operations of over $25 million in the third quarter, the Company is well-capitalized to make strategic investments to drive growth and implement this program.
About Hims & Hers Health, Inc.
Hims & Hers is the leading health and wellness platform on a mission to help the world feel great through the power of better health.
We believe how you feel in your body and mind transforms how you show up in life. That’s why we’re building a future where nothing stands in the way of harnessing this power. Hims & Hers normalizes health & wellness challenges—and innovates on their solutions—to make feeling happy and healthy easy to achieve. No two people are the same, so the Company provides access to personalized care designed for results.
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