What is the core business model of Hims & Hers according to the deck?

Hims & Hers operates as a digitally native, fully verticalized telehealth platform. It connects consumers with a distributed provider network for consultations, uses a proprietary EMR for diagnosis, and fulfills orders through its own cloud pharmacy. This end-to-end control allows them to capture high margins and maintain a consistent brand experience across multiple health conditions.

How does Hims & Hers justify its valuation compared to traditional healthcare?

The deck uses 'comparable company benchmarking' to align Hims & Hers with high-growth digital health peers like Livongo and Teladoc rather than traditional providers. It highlights its 70%+ gross margins and 100%+ revenue growth rates, arguing that its tech-enabled, direct-to-consumer approach warrants a multiple closer to SaaS or high-end e-commerce than legacy medical services.

What are the primary growth drivers mentioned in the financials?

Growth is driven by two main factors: increasing the number of online orders and significantly raising the Average Order Value (AOV). AOV grew at a 59% CAGR between 2018 and 2020. Additionally, the shift toward multi-month orders (increasing from 0% to 17% of orders in one year) improved revenue predictability and retention.

What is the significance of the Ohio pharmacy facility?

The 300,000 sq. ft. Columbus, Ohio facility is described as a strategic asset that allows the company to accept insurance. By moving beyond a cash-pay-only model, Hims & Hers aims to access a $408 billion market of branded drug spend and increase its drug coverage by 400%, serving as a 'top of funnel accelerant' for customer acquisition.

How does the company plan to expand its target demographic?

While the company started with a focus on the 18-40 age demographic (hair loss, birth control), the deck outlines a roadmap to target older populations. This includes moving into chronic conditions like hypertension, cholesterol, and diabetes, which represent a combined TAM of nearly $1 trillion for the 40-60 and 60+ age brackets.

Hims & Hers Pitch Deck: Slide-by-Slide Breakdown

Hims & Hers used this investor presentation to secure its public listing via a SPAC merger in 2021. The deck is a masterclass in brand-led healthcare disruption, moving from its origins in erectile dysfunction and hair loss into a 'multi-condition health platform.' Key to the narrative is the company's vertical integration, encompassing a distributed provider network, a proprietary EMR, and a 300,000 sq. ft. pharmacy in Ohio. Financially, the company demonstrated hyper-growth, with revenue jumping from $27 million in 2018 to an estimated $138 million in 2020. By positioning itself against tra…

Key takeaways

The company estimates the US healthcare market at $4 trillion, positioning it as one of the last industries yet to be disrupted (Slide 7).
Hims & Hers claims a Net Promoter Score (NPS) of 65, significantly higher than the health provider industry average of 9 (Slide 17).
Revenue grew at a 128% CAGR from 2018 to 2020, reaching an estimated $138 million (Slide 31).
Gross margins expanded from 29% in 2018 to an estimated 71% in 2020 (Slide 31).
The platform is fully verticalized, including a proprietary EMR, digital prescriptions, and a cloud pharmacy (Slide 11).
The company is expanding its TAM by moving from 'Today' (ages 18-40, $350bn TAM) to 'Tomorrow' (ages 60+, $500bn TAM) (Slide 19).
Average Order Value (AOV) increased from $23 in Q2 2018 to $59 in Q2 2020 (Slide 33).
A 300,000 sq. ft. facility in Columbus, Ohio is highlighted as the key to unlocking insurance reimbursement (Slide 27).

The Hims & Hers Public Debut: A Vertical Integration Masterclass

The Hims & Hers investor presentation, used for its 2021 SPAC merger with Oaktree Acquisition Corp., is a comprehensive look at how a direct-to-consumer (DTC) brand evolves into a systemic healthcare player. With 43 slides in total (22 of which are analyzed here), the deck moves quickly from brand aesthetics to deep infrastructure and aggressive financial projections.

The Opening: Brand and Backing

Slide 1 sets the tone with high-quality lifestyle photography, emphasizing the 'Hers' side of the brand as much as the 'Hims' side. This is a deliberate move to show the company has transcended its origins as a men's health startup. Slide 3 provides the necessary legal disclaimers for a public transaction, specifically mentioning non-GAAP financial measures like EBITDA.

Slide 5 establishes immediate credibility by listing a 'world class suite of committed shareholders.' The logos include heavyweights such as Founders Fund, Forerunner Ventures, IVP, Redpoint, Thrive Capital, and McKesson Ventures. This slide serves to de-risk the investment by showing that top-tier institutional capital has already vetted the business model.

The Macro Opportunity: Disrupting a $4 Trillion Market

Slide 7 frames the problem and opportunity. It identifies US healthcare as a $4 trillion market, comparing it to Retail ($5tn), Transportation ($2tn), and Financial Services ($1.5tn). The core argument is that healthcare is 'one of the last multi-trillion dollar markets yet to be disrupted.' Slide 9 reinforces this with a timeline of 'modern digitization,' placing Hims & Hers alongside transformative companies like Amazon, Netflix, Uber, and Airbnb. It suggests that telemedicine deregulation is the current catalyst for this shift.

The Solution: A Fully Verticalized Platform

Slide 11 is perhaps the most important strategic slide in the deck. It defines Hims & Hers as a 'fully verticalized multi-condition health platform.' It lists six pillars: Consumer Brand, Distributed Provider Network, Clinically Focused EMR, Digital Native Telemedicine Platform, Digital Prescriptions, and Cloud Pharmacy. By owning the entire stack, the company argues it can provide a 'frictionless' experience.

Slide 13 quantifies this friction reduction. It claims an average patient consultation submission happens within one hour, compared to the 24-day average for a traditional appointment. It also highlights price transparency, noting a $39 primary care visit versus the $200-$300 cost of an in-person visit. Slide 15 touches on the 'proprietary, purposeful tech' behind the scenes, mentioning tools for verification, consultation, diagnosis, and continuity of care.

Customer Sentiment and Market Expansion

Slide 17 uses Net Promoter Score (NPS) to differentiate the company from legacy players. Hims & Hers claims an NPS of 65, which dwarfs the 'Health Provider' industry average of 9. This is used to prove that their consumer-first approach creates a level of loyalty unknown in traditional healthcare.

Slide 19 and Slide 21 detail the roadmap for expansion. The company currently dominates the 18-40 age bracket ($350bn TAM) with products for hair loss and birth control. However, it points toward future opportunities in the 40-60 ($400bn TAM) and 60+ ($500bn TAM) demographics. Slide 21 shows a matrix of existing and future categories, including Anxiety & Depression, Dermatology, Sleep, Fertility, Diabetes, and Cholesterol. It notes that many of these are 'stigma' categories where a discreet, digital-first approach is a competitive advantage.

Infrastructure and the Insurance Pivot

Slide 23 and Slide 25 transition into 'future opportunities.' Slide 25 highlights early partnerships with entrenched stakeholders like Ochsner and Mount Sinai, suggesting that Hims & Hers can act as a bridge for traditional health systems looking for consumer-friendly platforms.

Slide 27 reveals a major shift in the business model. The company highlights its 300,000 sq. ft. pharmacy in Columbus, Ohio. This facility is described as the key to 'accepting insurance.' By enabling insurance reimbursement, the company believes it can access an incremental $408 billion in branded drug spend, which is 4x the value of the generic drug market they currently serve.

The Financials: Hyper-Growth and Margin Expansion

Slide 29 introduces the 'financials & transaction' section. Slide 31 shows explosive growth: annual revenue grew from $27 million in 2018 to an estimated $138 million in 2020 (a 128% CAGR). Even more impressive is the gross margin expansion, which grew from 29% to 71% in the same period. This margin profile is what allows the company to trade at tech-like multiples rather than healthcare-like multiples.

Slide 33 breaks down the unit economics. Quarterly revenue reached $36 million in Q2 2020, driven by a 59% CAGR in Average Order Value (AOV), which rose to $59. The slide also notes that multi-month orders grew to 17% of the total, indicating better retention and higher lifetime value. Slide 35 provides a summary table, projecting revenue to reach $233 million by 2022 and Adjusted EBITDA to approach break-even (-$9 million) in the same year.

Benchmarking and Valuation

Slide 37 and Slide 39 focus on 'comparable company benchmarking.' The deck compares Hims & Hers to Livongo, Teladoc, One Medical, and GoodRx. On Slide 39, the company highlights that its Revenue Multiple (8.9x for 2021E) and Gross Profit Multiple (12.2x for 2021E) are significantly lower than the peer group medians (22.4x and 30.0x, respectively). This is a classic SPAC pitch: 'We are growing as fast or faster than the leaders, with similar margins, but you are getting in at a discount.'

The deck concludes with an Appendix (Slide 41) and a final brand image (Slide 43) , maintaining the aesthetic consistency that defined the company's early success.

What Works in This Deck

Vertical Integration Narrative: The deck successfully argues that Hims & Hers is not just a website selling pills, but a complex infrastructure play. Owning the pharmacy and the EMR is presented as a moat. · Margin Expansion Story: Moving from 29% to 71% gross margin in two years is a powerful signal of operational efficiency and the benefits of scale. · TAM Expansion: By mapping out the 40-60 and 60+ age brackets, the company answers the 'what happens when you run out of 25-year-olds with hair loss?' question. · Clear Benchmarking: The comparison to Teladoc and Livongo is essential for justifying a high valuation multiple.

What Is Missing

Customer Acquisition Cost (CAC): While the deck highlights AOV and revenue growth, it is notably silent on the specific cost to acquire a customer. For a DTC-heavy brand, this is a critical metric. · Churn/Retention Rates: The deck mentions 'multi-month orders,' but it does not provide a clear cohort analysis or retention percentage over time. · Regulatory Risks: Given the nature of telemedicine and prescription drugs, the deck glosses over the significant regulatory hurdles and potential changes in state or federal laws that could impact the business. · Detailed Use of Proceeds: As a SPAC presentation, it focuses more on the 'why' of the company than the specific 'how' the new capital will be deployed beyond general expansion.

What a Founder Should Copy

The 'Modern Digitization' Timeline: Using a timeline to place your company in the context of legendary disruptors (Amazon, Uber) is an effective way to frame a 'Why Now' slide. · Visualizing the Stack: Slide 11's breakdown of the vertical stack is a great way to show complexity and defensibility in a simple, digestible format. · NPS as a Weapon: If your industry has terrible customer satisfaction (like healthcare or utilities), using NPS to show your superiority is a high-impact move. · The 'Today vs. Tomorrow' TAM: Showing a clear path from a niche starting point to a massive future market helps investors see both the immediate traction and the long-term upside.

Frequently asked questions

What is the core business model of Hims & Hers according to the deck?: Hims & Hers operates as a digitally native, fully verticalized telehealth platform. It connects consumers with a distributed provider network for consultations, uses a proprietary EMR for diagnosis, and fulfills orders through its own cloud pharmacy. This end-to-end control allows them to capture high margins and maintain a consistent brand experience across multiple health conditions.
How does Hims & Hers justify its valuation compared to traditional healthcare?: The deck uses 'comparable company benchmarking' to align Hims & Hers with high-growth digital health peers like Livongo and Teladoc rather than traditional providers. It highlights its 70%+ gross margins and 100%+ revenue growth rates, arguing that its tech-enabled, direct-to-consumer approach warrants a multiple closer to SaaS or high-end e-commerce than legacy medical services.
What are the primary growth drivers mentioned in the financials?: Growth is driven by two main factors: increasing the number of online orders and significantly raising the Average Order Value (AOV). AOV grew at a 59% CAGR between 2018 and 2020. Additionally, the shift toward multi-month orders (increasing from 0% to 17% of orders in one year) improved revenue predictability and retention.
What is the significance of the Ohio pharmacy facility?: The 300,000 sq. ft. Columbus, Ohio facility is described as a strategic asset that allows the company to accept insurance. By moving beyond a cash-pay-only model, Hims & Hers aims to access a $408 billion market of branded drug spend and increase its drug coverage by 400%, serving as a 'top of funnel accelerant' for customer acquisition.
How does the company plan to expand its target demographic?: While the company started with a focus on the 18-40 age demographic (hair loss, birth control), the deck outlines a roadmap to target older populations. This includes moving into chronic conditions like hypertension, cholesterol, and diabetes, which represent a combined TAM of nearly $1 trillion for the 40-60 and 60+ age brackets.