• by Les Luchter , November 7, 2023

Hims & Hers, the D2C health company whose key products target men’s sexual health and mental health, spent $116.1 million on marketing during Q3 2023, an increase of 48% over the $78.5 million it spent in 2022.

The marketing spend represented 51% of Hims and Hers’ Q3 revenues, which came in at $226.7 million, a 57% jump year-over-year from $144.9 million.

The number of subscribers -- or those getting their prescriptions or treatments through H&H -- grew at nearly the same rate, 56%, to 1.4 million consumers, with each subscriber contributing an average of $54 in monthly revenue.

Hers subscribers alone doubled year-over-over, Andrew Dudum, H&H co-founder and chief executive officer, told analysts on Monday afternoon’s Q3 earnings call, although he did not provide specific numbers.

Dudum attributed the Hers growth to “investment in a lot of the personalized products that we’ve rolled out across dermatology, across women’s hair care, as well as a lot of underlying efficiency and customer improvements in the mental health businesses.” Women’s mental health and dermatology, he noted, are among the company’s “fastest-growing categories.”

Indeed, Dudum emphasized, increased product personalization is driving Hims & Hers’ overall growth.

“Patients are coming to us...to tailor the treatment either in form factor, in dosage, in composition, in different supplements or ingredients, or in some situations, treating multiple categories,” he explained. On the latter front, for instance, Hims & Hers entered the heart health arena this past summer with a combo cholesterol/erectile dysfunction pill.

Another new category -- weight management -- will be launched in the “next couple of weeks,” Dudum said.

Yemi Okupe, H&H’s chief financial officer, told analysts that increased “lifetime value per customer and the breadth of our multi-condition offering”will give the company “the flexibility to invest in longer-duration channels such as TV sporting events, reality TV and streaming media. We have high conviction that we will get leverage on this investment over the mid- to long term as the awareness of our brands and platform capabilities continues to increase across a broader set of consumers, and revenue begins to scale faster than investment levels.”

He added, “We’re putting more and more investment into building our brand to capture consumers at earlier stages in their life cycle journey."

Earlier on Monday, Hims & Hers announced the beta launch of MedMatch, a technology that the company says uses AI and machine learning to help healthcare providers prescribe personalized treatments and medications.

For now, the beta test is limited to support for anxiety and depression. “Leveraging millions of anonymized data points from millions of customers, MedMatch models can identify treatments in real-time that may be best suited for a patient’s unique need,” the company said.

H&H currently has over 125,000 mental health subscribers, Dudum told analysts.