Digital pharmacy Hims & Hers has reported 91% year-over-year growth during the third quarter of this year.
This comes just weeks after the company announced a merger agreement with Oaktree Capital Management-sponsored special purpose acquisition company (SPAC) Oaktree Acquisition. The public can expect the reverse merger to close at the end of the fourth quarter of 2020.
Hims made a name for itself by combing telemedicine and mail-order wellness products. Originally starting in men’s sexual health and wellness, it has expanded into products for both genders.
In general, as lockdown and quarantine measures continue to play a part in consumer activity, telemedicine and digital pharmacies are seeing a surge in use.
Along with the Q3 results, the company highlighted a new partnership with Privia Health. As part of the deal, Hims & Hers patients will get direct access to Privia Health’s providers in specific states.
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Hims & Hers reported $44.13 million in Q3 revenue, up from Q2’s $35.9 million. The company has seen rapid growth this year in all three quarters – in both Q1 and Q3 it experienced a 91% year-over-year increase, and in its second quarter a 76% increase.
The company also noted that the average customer order increased by more than 16% from Q2 2020 to $67 in Q3, up from $58 last quarter.
Even before news of the merger and IPO broke, Hims & Hers was having a busy year. In April, the company rolled out a new mental health wellness program, which included therapy sessions led by a mental health practitioner.
Then, in May the company landed FDA authorization for a mail-order self-collected saliva sample kit for COVID-19 testing.
“We know that people have questions about COVID-19, including possible symptoms and how to get tested if they are concerned about their health,” Andrew Dudum, founder and CEO of Hims & Hers, said in a statement. At Hims & Hers, we want to serve as a resource, offering access to results as quickly as possible and bringing relief and answers to as many Americans as we can.”
Next up, Hims & Hers is looking to go public and toward its merger agreement. After the deal, Hims’ current equity holders will have about 84% of the combined company, with Oaktree Acquisition holding 12% and private investors having the remaining 4%.