1、 BofA Securities does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making the

2、ir investment decision.Refer to important disclosures on page 17 to 19.Analyst Certification on page 15.Price Objective Basis/Risk on page 15.12852557 Hims&Hers June data:GLP-1 sales surge as core sales dip month over month Reiterate Rating:UNDERPERFORM|PO:28.00 USD|Price:51.85 USD 2Q tracking to a

3、slight beat w/some swing factors We estimate 2Q Online revenue in the range of$533-$559M(Exhibit 1)with the midpoint of our estimates 1%ahead of VA consensus at$540MM.GLP-1 contributions reaccelerated in June,up 35%m/m as HIMS leaned into marketing compounded semaglutide(Exhibit 3).We are raising ou

4、r 2Q Online revenue estimates to$546MM to account for higher GLP-1 contributions.Core sales growth declined 4%m/m,likely driven by rising competition,seasonality,and shifting of marketing dollars.Wegovy sales and reaccelerating GLP-1 contributions make estimating recognized revenue more challenging.

5、As such,deferred revenue contributions could be a swing factor that drive revenue higher or results closer to in-line with ST.As was the case in May,KPIs continued to weaken in June with order growth declining 5%y/y and 6%m/m with app downloads and MAUs declining meaningfully as well(Exhibit 8).Step

6、ping back,the important trend is that core growth is slowing(from 40%in 4Q to mid-20%in 2Q)as we highlighted in our recent note(link to note).This creates a challenging setup into 2H with FY25 guidance reliant on compounded semaglutide contributions accelerating and new product sales to offset a wea