Here’s something every $HIMS investor should understand: 👇🏻

This effectively summarizes the key drivers of the company’s growth.

• Customer acquisition – $HIMS excels at marketing, achieving a payback period of less than one year across its portfolio.

• Retention rates – Last quarter, $HIMS confirmed that retention rates have been improving across most of its specialties. This is crucial in a sector often plagued by high churn.

The company is strengthening its business model by improving customer retention through:

1) Personalized solutions to enhance outcomes and mitigate side effects (in the past two years, the % of personalized subscribers increased from 14.5% to 50.5%);
2) Passing gradual cost efficiencies to customers with more affordable long-term solutions (in the past two years, the % of multi-30 day subscribers increased from 70.6% to 86.8%);
3) Launching multi-condition offerings, such as single pills that treat multiple conditions.

Together with $HIMS' above-average customer experience, these initiatives make subscribers more likely to stay on the platform instead of switching to another provider.

• Subscriber engagement – Besides retaining customers, it’s also important for these customers to become more valuable over time. The strategies designed to improve retention also drive higher engagement. Easier cross-selling, supported by more affordable solutions and multi-condition offerings, further contributes to this dynamic.

While $HIMS' business model can theoretically be replicated to some extent, no other company has come close to executing it as effectively across these three core drivers.

This is what sets $HIMS apart – execution.