The news: Direct-to-consumer (D2C) healthcare player Hims & Hers Health continued along its path of revenue and membership growth in Q4 2022.
Highlights from the company’s Q4 and full-year 2022 earnings report:
What’s driving the growth? Company execs attributed Hims & Hers’ impressive progress to brand awareness and customer loyalty.
Attracting new members—and keeping them engaged—was a huge catalyst for online revenue growth.
No market downturn here: Most publicly traded health tech companies experienced massive decreases in their market value last year after coming off the pandemic high. These include prominent digital health companies such as Teladoc (stock down 65% in the past year) and GoodRx (down 81%).
But Hims & Hers’ stock is up 116% over that same timeframe. It struck the right balance between substantial marketing and advertising spend and retaining members on its platform.
Our take: Hims & Hers is becoming the model D2C healthcare brand to emulate. The company can afford to keep raising its marketing and advertising budget to acquire customers because of its engagement and retention rates. It doesn’t pose a threat to incumbent health systems, but new D2C healthcare entrants (we’re eyeing you, Amazon Clinic) will need to play catch up.
This article originally appeared in Insider Intelligence's Digital Health Briefing—a daily recap of top stories reshaping the healthcare industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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