Hims & Hers Health's stock price is up Tuesday after the direct-to-consumer virtual care company reported nearly doubling its revenue in 2022.

The company posted revenue of $526.9 million for the year compared with $271.9 million in 2021. Hims & Hers still posted a net loss of $65.7 million, but it narrowed from a loss of $107.7 million in the prior year.

In the fourth quarter, Hims & Hers brought in $167.2 million in revenue compared with $84.7 million for the fourth quarter of 2021. Net loss was $10.9 million, while it reached $31.2 million in the prior-year quarter. The company said it had reached profitability as measured by adjusted EBITDA, which was $3.9 million in the fourth quarter, compared with a loss of $7.1 million in Q4 2021. 

During an earnings call, CEO and cofounder Andrew Dudum said revenue was driven by recurring subscriptions. He outlined four strategic pillars for future growth:

• building a trusted brand
• developing a technology platform that can offer recommendations
• providing new products and personalized services
• focusing on clinical excellence 

"These four pillars create a powerful flywheel that underpins our growth engine. It starts with our trusted brand, which drives customer demand and scale," he said. "The growth in our consumer base fuels the rate of customer insights, feedback and learnings we can utilize. This allows us to garner better personalized understandings and customer segment preferences. These insights feed into our technology platform to better train, refine and deliver great care. In addition, this trove of customer insights helps shape the innovation roadmap and ultimately the products and services delivered."

For the first quarter, Hims & Hers expects $175 million to $180 million in revenue, with adjusted EBITDA between $3 million and $6 million. For the full year, the company is targeting revenue of $735 million to $755 million, with adjusted EBITDA of $20 million to $30 million.

THE LARGER TREND

Hims & Hers provides virtual consultations and medications for sexual health, hair loss, mental health and skin care. The company also works with retailers like Walgreens, CVS and Walmart to sell its health and wellness products.

Founded in 2017, the company hit the public markets two years ago after closing a merger with a special purpose acquisition company. In 2022, Hims & Hers announced partnerships with hybrid provider Carbon Health and Delaware-based health system ChristianaCare.

Other competitors in the direct-to-consumer telehealth space include Ro, Thirty Madison and Amazon with its newly launched Amazon Clinic.