By Connor Hart

Hims & Hers Health raised its full-year outlook after it swung to a profit in the third quarter boosted by a tax benefit and consumer demand for weight-loss drugs.

The telehealth-consultation platform on Monday reported net income of $76 million, or 32 cents a share, compared with a loss of $7.4 million, or 4 cents a share, in the same quarter last year.

The recent quarter's profit included a $60.8 million tax benefit related to the release of a tax valuation allowance, which was partially offset by current period tax expense, the company said.

Revenue surged 77% to $401.6 million. Analysts polled by FactSet were expecting $382.2 million.

The San Francisco-based company now has more than 2 million subscribers, up from about 1.4 million at the end of the year-ago quarter. Average monthly online revenue per subscriber rose to $67 from $54.

Chief Financial Officer Yemi Okupe said subscriber growth, excluding contributions from the company's weight-loss solutions, increased 40% from last year on improved brand awareness and broader personalization initiatives.

"Our new weight loss offering is helping a growing number of people and providing an accelerant to what was already a robust trajectory," he said.

For the fourth quarter, Hims & Hers forecast revenue between $465 million and $470 million, ahead of the $421.1 million that analysts are looking for, according to FactSet.

For the year, the company expects revenue between $1.46 billion and $1.47 billion, up from its prior projection for between $1.37 billion and $1.4 billion. Analysts surveyed by FactSet are expecting $1.4 billion.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 04, 2024 16:27 ET (21:27 GMT)

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