Hims Hers Health Inc (HIMS)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -23,546 | -65,678 | -107,659 | -18,114 | -72,064 |
| Revenue | US$ in thousands | 872,000 | 526,916 | 271,878 | 148,757 | 82,558 |
| Net profit margin | -2.70% | -12.46% | -39.60% | -12.18% | -87.29% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-23,546K ÷ $872,000K
= -2.70%
The net profit margin of Hims Hers Health Inc has shown a mixed performance over the past five years. In 2019, the company had a significantly low net profit margin of -87.29%, indicating that the company's profitability was severely impacted by high expenses relative to its revenue.
Over the next few years, there was some improvement in the net profit margin, although it remained negative. By 2021, the net profit margin improved to -39.60%, suggesting that the company was able to better control its costs or increase its revenue to reduce the proportion of losses relative to revenue.
However, in 2022, there was a decline in the net profit margin to -12.46%, indicating a setback in profitability compared to the previous year. This could be attributed to various factors such as increased expenses, economic conditions, or changes in revenue streams.
In the most recent year of 2023, the net profit margin further decreased to -2.70%. While this improvement is a positive sign compared to the previous year, the company is still operating at a loss when considering net income as a percentage of revenue.
Overall, the trend in the net profit margin of Hims Hers Health Inc shows fluctuations, with the company experiencing challenges in achieving profitability over the past five years. Maintaining a sustainable positive net profit margin will be crucial for the company's long-term financial health and stability.