Reaching $872 million in sales, Hims & Hers telehealth has doubled its customer base to 1.9 million subscribers in two years. The U.S. wellness market typically grows 5-10% each year, but Hims & Hers Health has achieved a remarkable 43% subscriber growth compared to last year.
Hims & Hers operates as a subscription-based telehealth platform that connects patients with licensed physicians. Doctors provide consultations, create treatment plans, and prescribe medications. Their customized healthcare solutions have become popular, with 30% of customers choosing personalized treatment options.
Let's get into the innovative business model that drives Hims & Hers' success. We'll explore their revenue structure, reliable technology, and performance metrics that helped them grab a large chunk of the $101.2 billion global telehealth market.
Key Takeaways
- Hims & Hers Grew Rapidly with Digital-First Healthcare – With 1.9 million subscribers and $872M in revenue, the platform’s subscription-based model and custom treatment plans fuel success.
- Subscription Model Drives Recurring Revenue – 82% of customers stay longer than three months, with subscriptions for consultations, medications, and treatments across five core specialties.
- AI-Powered Personalization Enhances Care – The MedMatch system analyzes millions of data points to optimize treatment plans, medication dosages, and health outcomes.
- Affordable & Transparent Pricing – Plans range from $20 to $75 per month, with weight management programs generating $200M+ in sales through compounded GLP-1 medications.
- Scalable Technology Supports Growth – With over 10,000 visits daily, Hims & Hers integrates secure video consults, EHR, and automated documentation into a HIPAA-compliant system.
- Subscriber Base & Revenue Keep Climbing – 2.2 million subscribers by 2024, 45% YoY growth, and $1.48B total revenue, fueled by higher per-customer spending and improved retention.
- Customer Acquisition Remains Cost-Effective – Despite rising CAC to $929, 85% retention rates and free cash flow surging to $198M indicate long-term profitability.
- Future Plans Include AI & Scaling to 40,000 Daily Visits – Investing in decision-making tools, automation, and expanded provider support to handle more patients efficiently.
- Hims & Hers Shows How Telehealth Can Disrupt Traditional Care – Their growth, innovation, and customer-first approach prove digital healthcare can be profitable and accessible.
How Hims & Hers Revolutionized Telehealth
Andrew Dudum wanted to connect people with professional healthcare for sensitive health issues, which led him to create Hims & Hers in 2016. The company started as "Hims" to help men overcome barriers in getting healthcare services.
The founding story
The idea took shape at Atomic Labs, where Dudum noticed men's reluctance to seek help for stigmatized health conditions. Jack Abraham, Andrew Dudum, and Hilary Coles founded Hims Inc. in 2017. They saw that people didn't deal very well with unproven health products, so they built a platform where qualified medical professionals could provide digital health services.
Initial focus areas
The team first tackled common conditions that caused social anxiety, like hair loss and sexual health. People often searched these topics online, suggesting they wanted private and available treatment options. The company's original products included erectile dysfunction medication, sildenafil, and hair loss treatments such as minoxidil, biotin vitamins, and DHT-blocking shampoo.
Progress into multi-specialty platform
The company became a detailed healthcare provider after launching Hers in 2018, which added birth control pills and flibanserin to its services. The platform grew substantially and has helped more than two million telehealth consultations across all 50 states.
The COVID-19 pandemic sped up the company's growth into new specialties. Primary care services expanded faster, with consultations in both English and Spanish. On top of that, mental health services started in 2020, including anonymous group therapy. The platform now serves five specialty areas: mental health, sexual health, hair care, skin care, and weight loss.
About 30% of customers now choose healthcare solutions based on analytical insights. The company's platform connects thousands of patients to hundreds of providers every day. Customers use the mobile app to access growing educational programs, wellness content, and community support.
This progress ended in January 2021 when the company, now called Hims & Hers Health, Inc., began trading on the New York Stock Exchange. A merger with Oaktree Acquisition Corp valued at $1.6 billion made this possible. The platform continues to expand with 1.7 million subscribers while working to remove stigmas around health and wellness issues.
Core Business Model Components
The subscription-based telehealth platform has evolved into a healthcare powerhouse that serves over 2 million subscribers. Three fundamental pillars support the company's business model and power its remarkable growth.
Subscription-based revenue structure
Subscription-based services generate most of the revenue through automatic product deliveries and ongoing care. Customers can pause, cancel between billing periods, and reactivate their subscriptions when needed. This approach has yielded excellent results, with 82% of subscribers staying active beyond their original 3-month period.
Product and service offerings
The platform delivers complete healthcare solutions across five core specialties:
- Sexual health treatments and medications
- Men's and women's dermatology services
- Mental health support and therapy
- Weight management programs
- Primary care consultations
Affiliated pharmacies handle almost 90% of order fulfillment. Subscribers enjoy unlimited provider messaging and free prescription shipping. The mobile app gives customers access to educational programs, wellness content, and community support.
Pricing strategy
The company maintains transparent pricing without hidden fees. Monthly subscription rates vary by treatment plan:
- Simple plans range from $20 to $40
- Premium plans cost between $50 and $75
Specialized services come at different price points:
- Primary care consultations: $39-$59
- Mental health sessions: $60-$85
- Sexual health consultations: $30-$45
Weight management offerings demonstrate the company's competitive edge. Branded medications like Wegovy and Ozempic subscriptions start at $1,800 monthly, while compounded GLP-1 medications cost $165 monthly. This pricing strategy helped generate approximately $200 million in compounded GLP-1 drug sales last year.
Financial results prove the business model's success. Revenue excluding GLP-1 offerings grew 43% year-over-year to over $1.20 billion in 2024. The company projects revenue between $2.30-$2.40 billion for 2025.
Technology Infrastructure Powering Growth
Hims & Hers's quick growth comes from its advanced technology that delivers personalized healthcare. The platform processes over 10,000 visits daily, showing its reliable ability to handle large-scale healthcare operations.
AI-driven personalization
The MedMatch system was launched recently and marks the most important step forward in AI-powered healthcare delivery. This innovative solution looks at millions of anonymous data points from customer interactions to suggest the best treatments using up-to-the-minute data analysis. MedMatch is now in beta testing for mental health services and helps providers pick the best treatment formulations, dosage strengths, and delivery methods for each patient.
The platform's own Electronic Medical Record (EMR) system puts medical charts together and flags critical findings automatically for providers. Healthcare professionals can spot concerns like high blood pressure or areas that need specific counseling quickly.
Digital health platform features
The company's digital setup has several key parts that boost both patient and provider experiences:
- Intelligent Screening: The platform creates tailored question sets based on previous answers, which makes each patient interaction quick and thorough.
- Provider Support Tools: The system has built-in guidelines and quality monitoring features that enable a detailed review of over 50,000 patient encounters.
- Uninterrupted Communication: Patients can reach medical providers through mobile devices or computers anytime to discuss medication effectiveness and side effects.
The platform's security setup will give complete protection of patient data. All information stays encrypted both in motion and at rest under SOC2 compliance standards. The system blends lab results into patient records through strategic collaborations with diagnostic providers like Labcorp.
The company wants to expand its technological capabilities to support 20,000-40,000 daily visits. They plan to invest in decision-making tools and AI capabilities to provide healthcare experiences that are more precise and tailored.
Key Performance Metrics
Hims & Hers Health's financial metrics reveal an impressive growth story. Their performance indicators demonstrate strong market positioning and streamlined processes.
Subscriber growth trends
The platform's subscriber count has substantially expanded to 2.2 million by the end of 2024, showing a 45% increase year-over-year. Q2 2024 brought 155,000 new users to the platform. The data shows that 55% of subscribers have at least one personalized subscription.
Revenue per customer
The monthly subscriber revenue showed consistent gains throughout 2024. Subscribers generated an average monthly online revenue of $73 in 2024, a 38% jump from $53 in the previous year. The Average Order Value (AOV) jumped 63% to $168.
The platform's revenue structure demonstrates robust growth:
- Customer annual revenue jumped from $495 to $668
- Total revenue hit $1.48 billion in 2024, a 69% increase from 2023
- Core business revenue grew 43% to $1.2 billion, excluding GLP-1 offerings
Customer acquisition costs
Customer acquisition metrics remain strong as the company grows. The current customer acquisition cost (CAC) is $929, up from $544 in 2021. Notwithstanding that, this investment delivers solid returns:
- Recovery periods stay under one year
- Customer loyalty remains high, with 85% of users keeping subscriptions for at least two years
- Free cash flow reached $198.3 million in 2024, climbing from $47 million in 2023
Marketing efficiency shows continuous improvement. Marketing costs dropped from 51% to 46% of revenue year-over-year, while total marketing spend increased by 76% to $221 million. These numbers highlight growing operational advantages during the company's expansion.
Conclusion
Hims & Hers Health is a shining example of telehealth innovation. The company has grown from a specialized platform to become a detailed healthcare powerhouse. Their success story shows how digital health solutions help people with stigmatized health issues while achieving remarkable growth.
Three main factors drive the company's soaring success. Their subscription model keeps 82% of customers beyond three months, which proves high satisfaction levels. The company's AI-powered technology handles over 10,000 visits each day and provides customized care through tools like MedMatch. They also serve various healthcare needs through five specialty areas.
The numbers tell an impressive story. The company achieved 45% year-over-year subscriber growth and increased revenue by 69% to $1.48 billion in 2024. Better customer acquisition costs and retention rates suggest steady growth ahead.
Telehealth keeps evolving faster, and Hims & Hers looks ready for more expansion. They plan to handle 20,000-40,000 daily visits and develop their AI capabilities further. This points to a future where customized healthcare becomes more available to everyone.
References
- PitchGrade. Hims & Hers Health Inc.: Company profile and market analysis. PitchGrade. https://pitchgrade.com/companies/hims-hers-health-inc. Accessed February 13, 2025.
- Quartr. Hims & Hers: Bridging gaps in telehealth services. Quartr Insights. https://quartr.com/insights/company-research/hims-and-hers-bridging-gaps-in-telehealth. Accessed February 13, 2025.
- Hims & Hers Health Inc. Hims & Hers: A multi-specialty telehealth platform to become publicly traded via merger with Oaktree Acquisition Corp. Hims & Hers Investor Relations. https://investors.hims.com/news/news-details/2020/Hims--Hers-a-Multi-Specialty-Telehealth-Platform-to-Become-Publicly-Traded--via-Merger-with-Oaktree-Acquisition-Corp/default.aspx. Accessed February 13, 2025.
- Fierce Healthcare. Hims & Hers bullish on weight loss business despite GLP-1 market shift. Fierce Healthcare Health Tech. https://www.fiercehealthcare.com/health-tech/hims-hers-bullish-weight-loss-business-despite-glp-1-market-shift. Accessed February 13, 2025.
- Fierce Healthcare. Hims & Hers bullish on weight loss business despite GLP-1 market shift. Fierce Healthcare Health Tech. https://www.fiercehealthcare.com/health-tech/hims-hers-bullish-weight-loss-business-despite-glp-1-market-shift. Accessed February 13, 2025.
- Fierce Healthcare. Hims & Hers bullish on weight loss business despite GLP-1 market shift. Fierce Healthcare Health Tech. https://www.fiercehealthcare.com/health-tech/hims-hers-bullish-weight-loss-business-despite-glp-1-market-shift. Accessed February 13, 2025.
- PitchGrade. Hims & Hers Health Inc.: Company profile and market analysis. PitchGrade. https://pitchgrade.com/companies/hims-hers-health-inc. Accessed February 13, 2025.
- U.S. Securities and Exchange Commission (SEC). Hims & Hers Health Inc. EDGAR filings. SEC EDGAR Database. https://www.sec.gov/edgar/browse/?CIK=1773751. Accessed February 13, 2025.
