Hims Shares Drop After Quarterly Sales Miss Wall Street’s Estimates

Hims & Hers Health Inc.’s shares dropped in premarket trading on Tuesday after the telehealth company missed second-quarter revenue estimates.

The San Francisco-based company recorded sales of $545 million for the three months ended June 30, according to a statement, below Wall Street’s average estimate of $552 million. Hims reaffirmed its full-year revenue guidance of $2.3 billion to $2.4 billion.

The company’s shares were down 15% in premarket trading on Tuesday. They were up more than 160% this year through Monday’s close.

Hims has long offered a suite of treatments for hair loss and erectile dysfunction, but it has recently gotten a boost from selling cheaper versions of popular weight-loss drugs. That business, however, has been in peril since earlier this year when the US Food and Drug Administration ordered companies to stop selling copies of name-brand shots made by Eli Lilly and Novo-Nordisk A/S.

Hims said in a filing that sales from GLP-1 weight-loss drugs were $190 million in the second quarter. That’s compared with $230 million in the first quarter. The number of subscribers ticked up slightly compared with the previous quarter.

The telehealth company had a short-lived partnership with Novo to sell its weight-loss shot, Wegovy, at a discount. But that relationship fell apart after Novo accused Hims of “illegal mass compounding” and “deceptive marketing.”