1. Male and Female Health Since 2024, Hims & Hers Health (NYSE: HIMS) has gained 58%. The company has grown as its virtual care platform expands to serve consumers with various healthcare needs. Starting with erectile dysfunction and hair loss treatments in 2017, the telehealth company extended to birth control tablets and grew.
Today, Hims & Hers Health distributes prescriptions, OTC medications, cosmetics, supplements, and other wellness, skincare, sexual health, and hair care goods. End of last year, the corporation added weight loss items. These products are available via the company's website or mobile app for subscriptions. Partners' licensed pharmacies fulfill prescription orders.
Customers choose how often they want product delivery and are invoiced depending on that subscription duration, which can range from 30 to 360 days for some products. Hims & Hers helps patients identify items and schedule telemedicine consultations with doctors.
Company revenue rose 65% to $872 million in 2023. After 12 months, the site had 1.5 million subscribers, up 48%, and 8.7 million net orders, up 42%. Hims & Hers Health lost $23.5 million in the full year, although it made a GAAP profit in the final three months of 2023. The year-ago quarter lost $10.9 million, but this quarter brought in $1.2 million.
This business is less than a decade old, which explains its above-average growth. A sticky but asset-light methodology is helping it grow quickly and profitably. Management expects Hims & Hers Health to reach $1 billion in revenue in 2024. At 3.7 price-to-sales, even a little piece of this business may be worth adding to a diversified portfolio.
2. Toast (NYSE: TOST) stock has risen over 30% since the start of the year. The company helps food sector establishments run more efficiently using its hardware and software solutions. The startup has largely focused on smaller restaurants, but larger companies are taking note.
Toast offers software and hardware for all restaurant needs in a seasonal sector. These include point-of-sale solutions, digital ordering and delivery apps, payroll and workforce management tools, supply chain management tools, and fintech solutions including payment processing and loan origination.
Toast's main revenue source is restaurant subscriptions for its software products. The subscription term might be 12–36 months. The company makes money from fintech solutions through transaction fees and hardware fees including terminals, tablets, and accessories.
While not yet profitable under GAAP, revenue is growing rapidly, gross profits are improving, and the company was free-cash-flow-positive in 2023. Revenue was slightly about $4 billion last year, up 42% from 2022. Gross payment volume rose 38% to $126 billion in the 12-month period. Toast reported $834 million in gross earnings, up 63% from 2022. After a $189 million loss in 2022, the corporation earned $93 million in 2023. Toast has been layoffs and a CEO change in the past year or so.
However, the firm is developing and the top and bottom lines are improving. Further macro headwinds may slow growth in the medium term, but this business appears to be growing steadily. We provide critical services and products to the restaurant sector, and most of our business is recurring. Innovative investors may wish to get involved.
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