Connect with us

Published

on

The Hims app arranged on a smartphone in New York, US, on Wednesday, Feb. 12, 2025. 

Gabby Jones | Bloomberg | Getty Images

Shares of Hims & Hers Health fell 28% on Tuesday, a day after the telehealth company released fourth-quarter results that disappointed on gross margin and sparked concerns about the future of its weight loss business.

Hims & Hers reported $481 million in revenue for the quarter, up 95% from $246.6 million during the same period last year. Net income climbed to $26.01 million, or 11 cents per share, from $1.25 million, or 1 cent per share, a year prior. 

But the company’s gross margin, or the profit left after accounting for the cost of goods sold, was 77%, disappointing analysts who were expecting 78.4%, according to StreetAccount.

In the company’s quarterly call with investors on Monday, CFO Yemi Okupe said the scaling of the company’s GLP-1 offering and its strategic pricing options were to blame.

Hims & Hers in May started prescribing compounded semaglutide, the active ingredient in Novo Nordisk‘s GLP-1 weight loss medications Ozempic and Wegovy. Compounded drugs can be produced when brand-name treatments are in shortage, but the U.S. Food and Drug Administration announced Friday that the shortage of semaglutide injection products has been resolved.

As a result, Hims & Hers said Monday it will likely stop offering compounded semaglutide on its platform after its first quarter, though some consumers may still be able to access personalized doses if clinically applicable. The GLP-1 offering generated more than $225 million in revenue for the company in 2024.

“We will have to start notifying customers in the coming month or two that they will need to start looking for alternative options on the commercial dosing,” Hims & Hers CEO Andrew Dudum said on the call. 

Going forward, the company said its weight loss offerings will primarily consist of its oral medications and the injectable medication liraglutide, which it plans to introduce on its platform this year.

Analysts at Morgan Stanley said in a note Tuesday the company’s report was “a lot to digest.” They maintained their equal weight rating on the stock and said they were surprised by the magnitude of the company’s 2025 guidance.

Hims & Hers said it expects between $2.3 billion to $2.4 billion in revenue this year. The company added that it expects its weight loss offerings to generate at least $725 million in revenue, excluding contributions from compounded semaglutide.

“We remain positive on the long-term opportunity, highlighting the company’s attractive platform and solid track record that differentiate it relative to digital health and DTC comps,” the Morgan Stanley analysts said.

Bank of America analysts said that while the company might have some success transitioning patients to its other weight loss offerings like its oral medications, it will face a “significant execution risk” as supply of brand-name GLP-1s increases.

Additionally, the analysts said Hims & Hers’ competitors will likely shift marketing dollars back to other products for conditions like erectile dysfunction and hair loss, which could put pressure on its advertising costs. They reiterated their underperform rating on the stock.

“Overall, we do not see upside to 2025 revenue guidance and think the beat and raise story is likely over in the near-term,” the Bank of America analysts wrote in a note Tuesday.

Citi analysts meanwhile said they think Hims & Hers revenue guidance is “aspirational,” as it would require “significant acceleration” in the use of its other weight loss products. They said they are less confident about the success of these offerings.

Even so, the analysts increased their price target on the stock to $27 from $25.

“We await a more compelling entry point and more details on growth ex-GLP-1s before we become more constructive,” they wrote in a Monday note.

–CNBC’s Michael Bloom contributed to this report

Continue Reading

Technology

Register now: Applications open for the world’s top fintech companies of 2025 list

Published

on

By

Register now: Applications open for the world's top fintech companies of 2025 list

For the third year in a row, CNBC is working with market research firm Statista to list the world’s top financial technology companies.

Including startups, scaleups and established tech players, the top global fintech list aims to assess companies using an objective, key performance indicator-based methodology.

You can find out more information on the research project and methodology by clicking here.

Woman using digital tablet and credit card to do shopping.

John Lamb | Digital Vision | Getty Images

Applications are now open for companies to register their information for consideration by Statista’s researchers. To qualify, a company must focus primarily on developing innovative, technology-based financial products and services.

This year, we’re also digging deeper into the research to name the standout companies operating in the U.K. — the largest fintech market in Europe, as measured by the amount of funding raised.

Applications from companies headquartered in the U.K. will — in addition to being considered for the global fintech list — also be considered for a separate list of the U.K.’s top fintech companies. Firms do not need to fill in a separate application to be considered for the U.K. ranking.

Last year, fintech startups in the U.K. raised $3.6 billion in venture capital, ranking second worldwide and first in Europe for funding, according to industry trade body Innovate Finance. The country is also home to Revolut, Europe’s biggest fintech unicorn with a $45 billion valuation.

How to apply

Companies can submit their information for consideration by clicking here. The form, hosted by Statista, includes questions about a company’s business model and certain key performance indicators, including revenue growth and employee headcount.

The deadline for submissions is April 25, 2025.

If you have any questions about the lists or need assistance filling out the form, please reach out to Statista: topfintechs@statista.com.

Successful companies will be listed in the category that most closely reflects their business model. This year, insurance technology will be included as a category in the global fintech list. The other categories are payments, neobanking, digital assets, alternative financing, wealth technology, and enterprise fintech.

You can check out last year’s list here, which included well-known brands such as Mastercard and China’s Ant Group, global unicorns such as Brazilian digital lender Nubank and buy now, pay later firm Klarna, as well as smaller disruptors including payments platform Primer and investing app Stash.

Continue Reading

Technology

Super Micro files financials just ahead of Nasdaq deadline and says it’s ‘regained compliance,’ stock pops 22%

Published

on

By

Super Micro files financials just ahead of Nasdaq deadline and says it's 'regained compliance,' stock pops 22%

Charles Liang, CEO of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on June 5, 2024.

Annabelle Chih | Bloomberg | Getty Images

Super Micro Computer reported its delayed financial results on Tuesday just in time to meet the Nasdaq’s listing deadline. Shares of the server maker popped 22% in extended trading after the filing.

“In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at June 30, 2024,” BDO, the company’s auditor, wrote in the filing, adding that the results are “in conformity with accounting principles generally accepted” in the U.S.

Super Micro filed updated and audited financials with the U.S. Securities and Exchange Commission for its fiscal 2024, ending in June, and the first two quarters of the company’s fiscal 2025. The filing reduces any near-term possibility that the server maker could be delisted from the Nasdaq, an overhang that had weighed on Super Micro’s stock price.

“The Company has received correspondence from the Nasdaq staff that the Company has regained compliance with the filing requirements, and the matter is now closed,” Super Micro said in a press release.

Last year, after the company delayed its annual report, it lost its auditor, Ernst & Young, citing governance issues. Super Micro had until Tuesday to become current and file audited financials with the SEC.

Read more CNBC tech news

Super Micro said in a note from management as part of the filing that it had identified material weaknesses in internal controls over financial reporting, including IT issues, a lack of documentation over manual journal entries and insufficient controls to address segregation of staff duties. Super Micro said that it is hiring additional accounting and audit employees, as well as upgrading its IT systems.

Super Micro also said in Tuesday’s filing that a special committee of its Board overseeing its financial statements did not believe that EY’s resignation was “supported by the facts” examined by the committee.

In December, Super Micro said a review found “no evidence of misconduct.” At the same time, it removed its former chief financial officer, David Weigand. The company has not named a new CFO.

Still, the business has been growing rapidly because of soaring demand for Nvidia’s graphics processing units, or GPUs, which are used to develop artificial intelligence. Super Micro builds systems around Nvidia’s GPUs, and Elon Musk’s xAI is a customer.

According to the company’s updated and audited financials, Super Micro’s sales more than doubled in its fiscal 2024 to $14.99 billion.

Super Micro said it still faces risks related to its late financial reports, including litigation, reputational harm, and potentially lower credit ratings.

The stock has rebounded so far this year from a brutal last nine months of 2023. Before Tuesday’s postmarket surge, it was up 52% so far in 2025.

Continue Reading

Technology

Workday beats estimates for revenue and profit, stock jumps

Published

on

By

Workday beats estimates for revenue and profit, stock jumps

Carl Eschenbach, CEO of Workday, speaks on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on Jan. 23, 2025.

Gerry Miller | CNBC

Workday, a maker of human resources and finance software, reported better-than-expected quarterly results on Tuesday. The shares popped more than 10% in extended trading.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: $1.92 adjusted vs. $1.78 expected
  • Revenue: $2.21 billion vs. $2.18 billion expected

Revenue increased 15% year over year in the quarter that ended on Jan. 31, according to a statement. Net income fell to $94 million, or 35 cents per share, from $1.19 billion, or $4.52 per share, in the same quarter a year earlier.

“The prior year period benefited from a $1.1 billion release of the valuation allowance related to U.S. federal and state deferred tax assets,” Workday said.

The company is seeing greater demand for artificial intelligence tools.

“In fact, AI is front and center in every conversation I have with customers, prospects and partners. They want to move beyond incremental productivity gains,” CEO Carl Eschenbach said on a conference call with analysts. “They’re also looking for ROI that helps them drive growth back into their business,” Eschenbach added.

Read more CNBC tech news

Around 30% of Workday’s expansions with existing clients drew on at least one AI product, in line with the previous quarter, Eschenbach said. Additional AI products will become available over the next year, he said.

The rise of the Department of Government Efficiency creates opportunity for Workday, which has focused more on federal sales over the past year and a half, Eschenbach said.

“The systems they have, specifically ERP, HCM, or financial systems, are very antiquated,” he said. “In fact, the majority of them are still on premises, which means they’re inefficient. And as we think about DOGE and what that could potentially do going forward, if you want to drive efficiency in the government, you have to upgrade your systems,” the CEO added.

After becoming Workday’s sole CEO last year, he said the company has hired Google Cloud executive Gerrit Kazmaier to be president of products and technology. Sayan Chakraborty, who currently holds that title, will retire after being at Workday for about a decade.

During the quarter, Workday announced the hiring of former UiPath CEO Rob Enslin as its new president and chief commercial officer. Workday also said it would use AI to summarize employee feedback in its Peakon product.

The company called for a 28% adjusted operating margin on $2.05 billion in subscription revenue for the fiscal first quarter. Analysts polled by StreetAccount had expected an adjusted margin of 26.7% and $2.06 billion in revenue.

For fiscal 2026, Workday now sees an adjusted margin of 28%, with $8.8 billion in subscription revenue, implying 14% growth. That is slightly higher than the forecast management gave in November.

As of Tuesday’s close, Workday shares were flat year over year, while the S&P 500 index was up 1%.

WATCH: Workday CEO on the future of work: Will depend on both human and digital labor going forward

Workday CEO on the future of work: Will depend on both human and digital labor going forward

Continue Reading

Trending