2024-06-10 15:47:28 ET
Summary
- Hims & Hers has rallied substantially this year as it started to show its profitability chops.
- Despite guiding for a >$1 billion annualized revenue scale in 2024, the company is still expected to grow revenue north of 40%+ and have 80%+ pro forma gross margins.
- The company believes it can expand its adjusted EBITDA margins to a steady rate of 20-30% (versus low teens today).
- Its personalization capabilities allow people to take fewer pills for multiple conditions, and creates the moat for the company's subscription base.
- The stock is still trading at a relatively modest ~3.5x current-year revenue.
With a good chunk of this year's rally being driven by tech stocks, and in particular AI, it's often necessary for us to dig into other sectors for growth....
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Hims & Hers: Ready For Takeoff