In episode 8 of Hims House, Jonathan Stern and Louis Stevens discuss the financial health of Hims & Hers. The episode highlights the company's steady subscriber growth, noting sequential fluctuations, with a focus on personalized medications driving retention. The discussion also centers around Hims' customer acquisition costs (CAC) and its relation to free cash flow, emphasizing the growing difference between gross profit and marketing spend as a key indicator of business health. While concerns are raised about rising CAC, the overall takeaway is that Hims is generating strong cash flows, making it a promising long-term investment.
(00:00) - Introduction and Overview of Episode
(00:29) - Hims & Hers Financial Situation Overview
(02:47) - Sequential Subscriber Growth
(05:33) - Personalized Medication Segment Growth
(07:59) - Revenue per Subscriber and Gross Profit
(11:36) - Hims’ North Star - Gross Profit vs. Sales and Marketing
(13:56) - Marketing Spend vs. Customer Acquisition Costs
(17:20) - Discussion on Payback Periods and Unit Economics
(21:10) - Retention and Churn
(22:43) - Hims Expenses
(29:30) - Churn Concerns and Business Model Differences
(33:27) - Revisiting Hims’ North Star Discussion
Website: https://himshouse.com
Twitter/X: @himshouse
Discord: https://discord.gg/WPzMX448V8
Jonathan Stern - @jonathanrstern
Louis Stevens - @LA_stevens_
Dr. H - @stayathomedoc
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