$Hims & Hers Health Inc.(HIMS)$ $HIMS is a company with 100x potential.
$HIMS is a tele-health company that connects patients with physicians via an app and fulfills medication via automated pharmacy facilities.
These are the 6 core value drivers of the company:
1. A cost advantage: $HIMS can treat a growing range of conditions at a cost below what patients would pay out-of-pocket via their insurance. This is a strong moat in an industry that is otherwise an inflationary hamster wheel.
2. Expanding verticals: Every quarter $HIMS is treats more and more conditions. Management has demonstrated great discipline in picking new verticals, with the company increasing its cash from operations.
3. Extraordinary organizational properties: $HIMS has succeeded in orchestrating from scratch an operation based on software (app), hardware (pharmacies) amidst a hellish landscape (healthcare industry). For instance, the $HIMS iOS app is ranked #16 in healthcare in the US just 2 years after its launch. Only a great organization can do this.
4. AI-driven Insights: $HIMS is the world's first AI closed loop in healthcare, meaning that it is the only company that can directly leverage the insights its data generates to iterate the underlying healthcare infrastructure. This sets $HIMS up to compound faster than other players over time.
5. Personalization: The combination of more conditions treated over time will decrease CAC and increase LTV, as users shift towards personalized treatments. This will make $HIMS more irreplaceable for customers and will make them stick around longer on the platform.
6. Operating Leverage: As $HIMS deploys more verticals and fine tunes its automated pharmacies, its level of personalization will become increasingly harder to imitate at scale. This should yield improved unit economics over time, which are thus far translating into an improved cash flow profile 👇
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