How Hims Marketing Built a $4B Telehealth Brand
Telehealth
Startups

How Hims Marketing Built a $4B Telehealth Brand

 

Bask Health Team
Bask Health Team
03/12/2025

Hims' marketing experience stands out as one of the most remarkable success stories in telehealth. The company grew from $148 million in 2020 to an expected $1.465 billion revenue powerhouse by 2024. Hims & Hers has built an impressive base of 1.9 million subscribers since its 2017 launch and processes over 10,000 visits daily across its platform.

The company's rapid rise concluded with a 2021 public debut through a SPAC merger valued at $1.6 billion. Their valuation grew impressively to $4 billion by 2024. Hims & Hers has positioned itself at the vanguard of the booming telehealth market, which is valued at $101.2 billion. Their success partly stems from 30% of customers choosing tailored healthcare solutions.

This detailed analysis will get into how Hims & Hers built its multi-billion dollar telehealth empire through innovative marketing strategies, technological advancement, and a laser focus on customer experience.

Key Takeaways

  • Market Gap & Founding Vision: Hims & Hers was created to address a real need in accessible healthcare for stigmatized conditions.
  • Innovative Marketing: The brand built trust with creative ads, influencer partnerships, and high-profile placements like a Super Bowl ad.
  • Tech-Driven Personalization: Advanced AI tools and a secure EMR system enable fast, tailored care, setting the platform apart.
  • Robust Growth & Financial Success: A strong subscription model and rapid revenue gains propelled the company to a $4B valuation.

The Birth Of The Hims & Hers Brand

Andrew Dudum spotted a big problem in healthcare access back in 2016. People stayed away from doctors when they had stigmatized conditions. High copays, expensive medicines, and long wait times kept them away. Patients wasted 37 minutes traveling just to spend 20 minutes with their doctor. The wait time for first appointments in major US cities stretched to 24 days - a 30% jump from 18.5 days in 2014.

Identifying the market gap in 2017

Dudum's time at Atomic Labs showed him how men avoided help for sensitive health issues. This led him to team up with Jack Abraham and Hilary Coles to start Hims Inc. in 2017. Their goal was simple: they wanted to make healthcare more available and affordable. The team knew people needed proven medical solutions instead of the questionable wellness products flooding the market.

The founders saw how people with stigmatized conditions couldn't find care that fit their needs, schedule, or budget. This pushed them to build a platform where qualified medical professionals could deliver digital health services.

Original focus on men's health

Hims targeted common conditions that triggered social anxiety, especially:

  • Hair loss treatments, including minoxidil, biotin vitamins, and DHT-blocking shampoo
  • Sexual health solutions, specifically erectile dysfunction medication and sildenafil

These conditions topped their list because people often searched for them online, suggesting they wanted private treatment options. The company worked with prominent figures to show that sexual performance issues were more common than people noticed.

Early platform development

Hims needed an expandable telehealth infrastructure to become a complete source for medical advice and treatment in 2018. Their development team created a strong platform with three key parts:

  • Detailed medical screening through dynamic questionnaires
  • Secure provider-patient communication channels
  • Integration of privacy and regulatory compliance features

Engineers worked with expert physician advisors to build the platform. It created customized question sets based on patient responses. This innovative system helped patients connect with healthcare providers faster than traditional visits, which led to better treatment outcomes.

The company grew by a lot in 2018. They launched ForHers.com in just 20 days and upgraded their main site ForHims.com. Their network expanded to include over 400 healthcare providers. They offered well-laid-out health and wellness products.

Monthly subscriptions started at $20 and proved to be a soaring win. The company achieved an impressive 50% retention rate over 18 months. Industry experts called this remarkably high for these types of treatments. This early success verified their approach to fixing healthcare access and affordability through telehealth solutions.

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Building Trust Through Marketing

Trust is the life-blood of Hims & Hers' remarkable growth story. The company has broken down barriers around sensitive health topics through innovative marketing and mutually beneficial alliances.

Creative advertising approach

The brand makes health discussions more normal through content people can relate to. Their ads blend humor with medical expertise perfectly. To name just one example, they used cacti imagery to talk about erectile dysfunction, which made uncomfortable topics easier to discuss.

Hims & Hers took a bold step by booking their first Super Bowl ad spot in 2024.

Their minute-long commercial will run in the third quarter to spotlight America's obesity crisis. This prime placement will give them massive exposure since Super Bowl ads typically reach more than 125 million viewers.

Their marketing reaches people on many different channels. The company places ads during major cultural events like NFL playoff games and March Madness. They also appear on popular shows like "Keeping Up with the Kardashians" and "The Bachelorette".

Influencer partnership strategy

The company uses a sophisticated three-tier influencer approach that goes beyond celebrity endorsements. They found that shared missions and goals matter more than follower counts.

Their influencer strategy works on three levels:

  • Nano and micro-influencers who connect better with audiences
  • Mid-tier content creators who boost larger campaigns
  • Celebrity partnerships that add credibility to specific conditions

Jennifer Lopez and Alex Rodriguez showcase their successful celebrity partnerships. Lopez spoke authentically about her hair care challenges. "When I was coming up, I didn't have access to high-quality products," Lopez said, highlighting the brand's mission to make healthcare more accessible.

The company shows its dedication to inclusive representation through unique partnerships. They teamed up with drag superstars Violet Chachki and Gottmik for a Pride Tour in 2022 to help destigmatize conversations about mental health and hair loss.

Their influencer compensation strategy breaks new ground. Rather than standard product-for-post deals, influencers earn based on their actual results. This approach leads to authentic content since influencers keep creative control while sharing real experiences.

The numbers prove their strategy works. By early 2024, more than 2 million customers used their platform. Over 400,000 subscribers came from ZIP codes where households earn less than $50,000 annually. These figures show how their marketing builds trust with people from all walks of life.

Technology-Driven Growth Strategy

Sophisticated technology infrastructure powers Hims & Hers' exponential growth. The company handles over 10,000 visits each day, which demonstrates its ability to manage large-scale healthcare operations.

AI-powered personalization system

Hims & Hers revealed MedMatch in late 2023, their innovative AI-powered solution to improve personalized care delivery. This system examines millions of anonymized data points from customer interactions and recommends optimal treatments immediately.

MedMatch helps providers select the most effective treatment formulations, dosage strengths, and delivery methods that match each patient's needs during its beta testing phase for mental health services.

The platform's proprietary Electronic Medical Record (EMR) system compiles medical charts and highlights critical findings for healthcare providers. The system creates customized question sets based on previous responses through intelligent screening, which ensures complete patient interactions.

Data-driven decision making

The company's focus on data-driven operations shows remarkable results. Their personalized solutions now reach 42% of subscribers, a 19-percentage point increase from last year.

Their weight loss program demonstrates this success:

  • 85% of GLP-1 customers maintain their subscription after four weeks
  • 90% express satisfaction with customized dosing plans
  • 87% report progress toward their weight loss goals

Provider support tools on the platform enable a detailed review of over 50,000 patient encounters, which maintains consistent quality across interactions. Weight Loss specialty customers now wait 40% less time than before.

Platform scalability

The reliable technological infrastructure shows remarkable growth potential. Affiliated pharmacies now fulfill nearly 80% of orders, which optimizes the supply chain process. Patients connect with an extensive network of over 600 providers across all 50 states.

Patient information stays encrypted both in motion and at rest under SOC2 compliance standards. Lab results combine smoothly with patient records through strategic collaborations with diagnostic providers.

Hims & Hers wants to expand its technological capabilities to support 20,000-40,000 daily visits. The company invests in decision-making tools and AI capabilities to deliver more precise and customized healthcare experiences. This technology-driven growth places Hims & Hers at the vanguard of modern healthcare delivery, where data analytics and artificial intelligence join to create more effective, available, and customized patient care solutions.

Customer Experience Evolution

Personalized healthcare has become the cornerstone of Hims & Hers' remarkable development. The platform now serves 2.2 million subscribers. Their steadfast dedication to tailored care has altered the map of how patients access and experience healthcare services.

Subscription model success

The subscription-based approach shows exceptional results and strong customer loyalty. Their data reveals that 82% of subscribers stay beyond their original three-month period. Subscribers can choose from flexible monthly rates:

  • Simple plans range from $20 to $40
  • Premium services between $50 to $75

Hims & Hers processes prescriptions quickly through their affiliated pharmacies. Nearly 90% of orders flow through their network. This efficiency lets them offer competitive prices. Their weight management programs showcase this with compounded GLP-1 medications at $165 monthly, while branded alternatives start at $1,800.

Treatment personalization

The platform's focus on tailored care has sparked remarkable growth. More than 1 million subscribers now use customized solutions—a 175% increase from last year. Several factors drive this success:

The platform's proprietary Electronic Medical Record (EMR) system acts as the central hub. It automates administrative tasks and provides uninterrupted care transitions between providers. The system uses structured data to highlight potential risks and guide providers during consultations.

MedMatch has transformed treatment customization. This innovative tool analyzes millions of de-identified data points to help providers find the best treatments for each patient. Specialized care areas show impressive results:

  • More than 80% of dermatology subscribers choose tailored solutions
  • Weight management programs achieve 90% customer satisfaction with personalized dosing plans
  • Weight management customers report 87% progress toward their goals

Subscribers get unlimited provider messaging and round-the-clock access to educational content. This integrated approach yields impressive satisfaction metrics. The average response time reaches 17 minutes, with an 88% overall satisfaction rate.

Hims & Hers keeps expanding its tailored treatment options. They currently offer 300 customized choices and want to reach thousands of treatment variations. This growth focuses on solutions that tackle multiple conditions at once. Providers can adjust dosages and help patients stick to their treatments better.

Revenue Growth and Market Impact

Hims & Hers's innovative approach to telehealth shows in its financial performance. The company's growth story reveals unique gains in revenue and market presence.

Key financial milestones

The fourth quarter of 2024 became a turning point as revenue soared to $481.1 million. This represents a 95% increase from the previous year. The full-year revenue reached $1.476 billion with a 69% year-over-year growth.

The profitability metrics paint an impressive picture. The company achieved:

  • Net income of $126 million in 2024, a dramatic turnaround from a $23.5 million loss in 2023
  • Adjusted EBITDA of $177 million, surpassing the previous year's $49.5 million
  • Average Order Value (AOV) increase of $168, up 63%

The subscriber base grew substantially by 45% year-over-year to reach 2.2 million. Of course, the weight management segment became a major revenue driver, bringing in over $225 million in 2024.

Hims & Hers projects strong growth for 2025:

  • Revenue forecast between $2.30 billion to $2.40 billion
  • Adjusted EBITDA projection of $270 million to $320 million
  • First quarter 2025 revenue target of $520 million to $540 million

Market valuation growth

The company's market capitalization shows investor confidence in its business model. Hims & Hers currently maintains:

  • Market capitalization of $7.71 billion
  • Enterprise value of $7.42 billion
  • The price-to-sales ratio of 5.57

These financial metrics highlight the company's operational efficiency:

  • Profit margin of 8.54%
  • Return on equity of 30.71%
  • Total cash holdings of $300.25 million

The valuation metrics point to strong market positioning:

  • Forward P/E ratio of 58.48
  • Enterprise value to revenue ratio of 5.03
  • Levered free cash flow of $178.69 million

Some challenges exist. Amazon's entry into the telehealth space led to a 15% drop in share price. But Hims & Hers keeps its competitive edge through unique offerings and its 3-year-old market presence.

The company's future looks promising. Analysts project a 26.1% compound annual growth rate over the next three years. This forecast and the company's proven growth strategy put Hims & Hers in a strong position within the expanding telehealth market.

Conclusion

Hims & Hers has transformed from a niche telehealth provider into a $4 billion industry leader by combining groundbreaking healthcare solutions with intuitive approaches. The company's success comes from creative marketing that removes the stigma around sensitive health topics, AI-powered customized solutions through MedMatch, and a resilient subscription model that keeps 82% of users beyond three months.

The company's financial performance proves their strategic choices work well. They project revenue of $2.3-2.4 billion for 2025 and have grown their subscriber base to 2.2 million users, making them a dominant force in telehealth. Their focus on customized care shows in the numbers - 42% of subscribers receive tailored solutions, setting new benchmarks in digital healthcare delivery.

Hims & Hers's story reveals crucial insights about modern healthcare innovation. The company shows that making healthcare accessible, affordable, and customized while using advanced technology leads to lasting growth. The future of healthcare delivery will belong to companies that put patients first, just as Hims & Hers has done.

References

  1. Hims & Hers Health Inc. Hims & Hers Health Inc. reports fourth-quarter and full-year 2024 financial results. Hims & Hers Investor Relations. https://investors.hims.com/news/news-details/2025/Hims--Hers-Health-Inc.-Reports-Fourth-Quarter-and-Full-Year-2024-Financial-Results/. Accessed February 13, 2025.
  2. Fierce Healthcare. Hims & Hers boosts 2023 revenue forecast, expects to be profitable early 2024. Fierce Healthcare Health Tech. https://www.fiercehealthcare.com/health-tech/hims-hers-boosts-2023-revenue-forecast-expects-be-profitable-early-2024. Accessed February 13, 2025.
  3. Hims & Hers Health Inc. How we’re making personalized healthcare the new standard. Hims & Hers Newsroom. https://news.hims.com/newsroom/how-were-making-personalized-healthcare-the-new-standard. Accessed February 13, 2025.
  4. Forbes. Hims & Hers set to run impactful Super Bowl ad. Forbes Business. https://www.forbes.com/sites/charlesrtaylor/2025/02/03/hims--hers-set-to-run-impactful-super-bowl-ad/. Accessed February 13, 2025.
  5. CNBC. Hims aims to raise $200 million as sales of men’s health products grow. CNBC Business. https://www.cnbc.com/2019/11/17/hims-aims-to-raise-200-million-as-sales-of-mens-health-products-grow.html. Accessed February 13, 2025.
  6. Healthcare IT News. How Hims & Hers built a business entirely centered on telehealth. Healthcare IT News. https://www.healthcareitnews.com/news/how-hims-hers-built-business-entirely-centered-telehealth. Accessed February 13, 2025.
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