What happened: Hims & Hers Health (HIMS) shares fell as much as 19% on Tuesday after the telehealth company reported third quarter results and issued a weaker-than-expected revenue forecast for the fourth quarter.
What’s behind the move: third quarter revenue rose 49% year over year to $890.4 million, roughly in line with estimates according to Bloomberg data. Gross margin dropped to 57% from 74% a year earlier, while subscriber growth also missed expectations.
The company forecast fourth quarter revenue in a range of $875 million to $895 million, below the $955.1 million analysts expected. Analysts pointed to the weaker outlook and mounting uncertainty around the company’s margins as key concerns.
19.13 -3.81 (-16.61%)
At close: November 10 at 4:00:02 PM EST
19.33 +0.20 (+1.05%)
What else you need to know: Hims & Hers Health stock has been volatile this year, falling after a period of recovery as regulatory and legal challenges surrounding its compounded GLP-1 weight-loss drugs weighed on shares.
The company has since shifted away from copycat weight-loss medications and instead pursued partnerships with pharmaceutical manufacturers.
In late July, the company faced another challenge when the FTC filed a lawsuit against it, alleging that it shared private health data with advertisers Meta (META) and Snap (SNAP) and made subscription cancellations difficult. Hims & Hers has rejected the claim and vowed to fight it.
Year to date, the stock is down roughly 38%.
Source: finance.yahoo.com
