Good afternoon, everyone, and welcome to our next session. For those of you who are just joining us, I'm Maria Ripps, Internet Analyst here at Canaccord Genuity, and it's my pleasure to introduce Yemi Okupe, Hims & Hers CFO. Yemi, thank you so much for joining us today.
Really excited to be here. Thanks for having me, Maria.
Great. So just to start off, it's been an impressive run for Hims & Hers since its founding in late 2017. The company has built a well-known, trustworthy brand in a short period of time, greatly expanded its range of addressable conditions, navigated the pandemic, gone public, and scaled rapidly. Could you maybe talk about how the company has been able to accomplish so much in such a short period of time, and then also maybe touch on the broader industry dynamics and how you see sort of telehealth fitting into their healthcare ecosystem over the near term?
Yeah, it's a really great question. I think we were very excited by our performance in 2023. We accomplished so much. We saw revenue grow 65% year-over-year, ended 2023 with over 1.5 million subscribers. We're really excited for 2024 and what's ahead. This year we see a path to our first year of net income profitability. We also are on track to deliver north of $1 billion of scale. Really, the culmination of success that we saw in 2023, as well as the success that we were anticipating in 2024 and beyond, is a function of the fact that our strategy, which is around providing high-quality, personalized solutions through an experience that's delightful end-to-end to consumers, is really working.
Our focus historically has been around how do we remove some of the barriers that are preventing consumers from accessing treatment across the five core specialties that we operate in today, which are mental health, sexual health, weight loss, and men and women's dermatology. We're confident that as we continue to remove these barriers, we will continue to see strong growth remain. Historically, those barriers have been around removing things such as lack of awareness around the ability to have medical solutions for a condition, making conditions more approachable through having a consumer-oriented brand. As we look at the next evolution in the company, we're very excited to bring a broader set of personalized solutions backed by data-driven insights from hundreds of thousands of interactions across medical providers on the platform.
Really just to sum it all up, the focus around removing barriers for consumers is at the forefront of our success. We view, while 2023 was a phenomenal year, we're really just at the beginning of the story of how the platform could evolve.
That's great. So let's dive into the business. So you mentioned five core specialties. How do your sort of solutions compare to other options that consumers might have if they opted for a traditional in-person doctor's visit?
Yeah, so I think that we are offering consumers, as I mentioned, access to personalized solutions and treatments. That in and of itself is fairly unique. But when you also pair that with the experience that is phenomenal, what you get is an experience that is, in our view, superior to any alternative out there. And consumers have come to expect these types of aspects, which I'll go into in a minute, across pretty much every aspect of their life, with the exception of healthcare. So whether it's you think around how people move around today, how people consume media, no one's necessarily going to drive into a movie rental store. You're able to consume it from the comfort of your own home with transparency around pricing, or even just the delivery of e-commerce goods.
And so we're taking many of those concepts around how do you enable access to a broader set of users? How do you incorporate convenience so there's the ability to get care for these specialties from the comfort of your own home very quickly without delay? How do you have transparent pricing where a consumer knows what they're going to pay upfront on our model via subscription? And you start to fold that in with clinical excellence where when a consumer comes to our platform, they're able to get the expertise of hundreds of thousands of interactions from consumers before them that lead to better-informed decisions, in our opinion.
And so I think that really the culmination of being able to have fast access, where consumers are getting access to our treatments in days or even hours as opposed to needing to wait weeks, they're able to have the convenience to do it from their own home, and they get that in a transparent and delightful experience. We view that as a superior alternative to what's currently in market for the specialties that we serve. And we're seeing the results now of north of 1.5 million subscribers or members on our platform opting for that.
One of the things that sort of stands out about your website and mobile app is just how easy and intuitive it is to use it. You just sort of touched on a lot of these points. But could you maybe spend a few minutes talking about how the company sort of has designed the platform and the offering to remove barriers and sort of friction points such as lack of awareness and accessibility?
Yeah, so I think there's a couple of unique aspects to the way that the technology stack for Hims & Hers has been built. One is that the consumer was built front and center. The way that the platform was built has historically been around consumers, and we've been able to incorporate feedback from providers to help them provide better and better consumer care. Foundationally, what we've also done with the technology stack, both for the things that consumers do see and the ones that they don't see, which I'll go into in a minute, is we've built it in a way that it can iterate and evolve over time. So the technology stack from end to end across Hims & Hers is homegrown. So everything from, as you mentioned, the app, the websites, the consumers directly interface.
But there's also an electronic medical record system that pairs providers with consumers that was uniquely homegrown built by Hims & Hers. And that's really the foundation that matches providers with the consumers on the platform and enables us, through building that from the ground up, to connect that with the front-facing consumer experience, also connect it with our affiliated pharmacies. And this verticalized experience enables greater approachability, greater features, and an overall more seamless experience for the consumers.
What it also sets the foundation for is, again, given that we've built both the consumer front-facing aspects as well as the electronic EMR system that pairs the consumers with the providers, that enables us to have structured data and power insights across AI tools and provide solutions like the one that we just recently talked around in the third quarter of last year, such as MedMatch, that we view, when paired with personalized solutions, will enable consumers to get access to better and better care.
Yeah. So let's talk about personalized treatments and compounding. So sort of one major growth factor that you have invested a lot more recently has been personalized treatments and sort of compounding capabilities. Could you maybe spend a few moments talking about how you identified this opportunity, what investments you had to make to get the necessary sort of infrastructure in place, and why the offering is resonating so well with consumers?
Yeah, so I think if you take a step back and think around some of the most amazing experiences that technology has impacted, those have oftentimes started in a relatively niche area, most oftentimes the wealthiest parts of societies. And when you look at how some of the institutions, the most valuable institutions, frankly, across the world that have been created, many of them have done that by democratizing some of those experiences. And so we're effectively doing that.
When you think around the ability to quickly move courier services from point A to point B, or the ability to evolve from a black card service that was historically only available to the wealthiest corner of society to one where now the masses are able to order a phone for the app and get better safety features and so forth, or have people shop for their groceries, we took many of those same concepts with the personalizing solutions that many of the offerings that we have have historically been offered to be at very specialist clinics and high-end clinics to corners and segments of the population.
The vision was to figure out mechanisms to make that more approachable where if a consumer had unique dosage needs or unique form factor needs or increasingly the ability to get treated with multiple conditions, we were able to bring that in a very approachable and affordable way to the masses. We saw that resonating in the wealthiest corners of society. For the last couple of years, we've been making the investments to fundamentally bring that in a way that's safe, effective, and approachable to a greater portion of the society. Some of the investments that we've invested in has been the technology stack that we kind of talked around before.
We also invested pretty heavily through the acquisition of Apostrophe into the affiliated pharmacies to be able to take some of the feedback of the things that were preventing consumers from adhering to treatment or seeking treatment and fundamentally address those needs through the affiliated pharmacy facilities that we have. So when you kind of bring this together and you look at now, what does a consumer get on our platform that is really resonating? It's the ability to get access to a provider and service that's measured in hours and days as opposed to weeks or months. It's the ability to get that treatment from their own home via a very seamless and clean technology stack.
Then lastly, I think that, as you mentioned, the personalized solutions that are inherently based upon the input from leading medical specialists as well as the insights on the platform, that is going to enable us to provide consumers with very unique solutions that address some of the fundamental barriers that have prevented or impeded successful treatment. And so as a result of bringing all those things together, we're really seeing that resonate across a larger and larger set of consumers.
Yeah. So an additional benefit of this emphasis on personalized treatments is that it has enabled you to increase the amount of orders fulfilled by your affiliated pharmacies. So maybe talk about how affiliated pharmacies have enabled you to unlock efficiencies across key cost items and how that has sort of translated to the P&L.
Yeah, I think what I would say is affiliated pharmacies represent a very critical part of our ecosystem. And when you think around the four pillars that we oftentimes speak around, which are the trusted brand, the innovative products and services, the innovative technology platform, and then lastly, just wrapping that into a high degree of clinical excellence, the affiliated pharmacies are a critical part in bringing all of that together. The P&L savings are exciting in that we're able to reap the benefits from economies of scale through having a more vertically integrated platform. But what really excites us even more is the fact that increasingly, we're seeing greater and greater network effects across the platform. And so what I mean by that is when you look at the trusted brand, that makes treatments more approachable.
It elevates awareness with users across the ability to identify solutions for these specialties. When you think around the users that come onto the platform, they experience the seamless technology platform end to end, but they're also providing those insights around what are the things that are working, what are the things that are not working, that they do want to see in the solutions in a very structured way. And so that feeds into being able to innovate and inform an effective set of solutions in conjunction with consultation from leading medical experts to produce the personalized products that are safe, effective, and typically are in immediate demand because they're informed by feedback from the users. As consumers see the unique personalized solutions, they generally adhere to the personalized solutions in a greater capacity. That enhances the results that they see, and the loop reinforces itself.
And so the affiliated pharmacies is a very critical way that enables us to directly respond to the feedback and the advice that we're receiving from our medical experts. But what's even more exciting is how it enables that ecosystem where effectively, the platform gets better and better with each user that comes onto the platform.
Yeah, that makes sense. So another core growth factor for the business is newer verticals like Hers dermatology, mental health, and weight loss. You've indicated that each of these verticals can deliver more than $100 million of revenue in 2025. What is sort of underpinning your visibility into this outlook? And is there anything you can share with regards to how much of that sort of contribution you expect to come from new customers versus cross-selling?
Yeah, I think it's a really quick question, Maria. I think across all the specialties that we're in, there is a very large market. And so anytime that we go into a specialty, we look at what is the total addressable market. What we also look for is, are there fundamental barriers that are preventing people from seeking treatment? And so for some of the specialties that we operate in, oftentimes less than 20% of people are actually seeking treatment because there is some type of fundamental barrier, whether it's awareness, approachability, convenience, or education requirements. There's a whole host of reasons why people may not be seeking treatment. What we've seen across some of our historical categories that are more tenured is that as we're able to break down those barriers, more and more consumers come to the platform.
So to use an example, at the company's inception, we were able to break down barriers around things like awareness, approachability, education, having a consumer-oriented brand that really resonated. Now when we basically start to fold that into more personalized solutions and a better experience, we're seeing in the newer categories, more and more users adopt those personalized solutions upfront and a ton of demand for them. So as a result of that and some of the learnings that we've historically gotten, as well as the large addressable markets that we're going after, that's what gives us the confidence and the ability to scale some of the newer offerings north of $100 million. We've effectively been through the story before, but now we have even more tools and resources at our disposal to get more efficient and scale categories in a faster and more efficient way.
When we fast forward and think about around where is the growth likely to come from in the future, the most critical element over the next couple of years for our growth equation is going to be growing the number of new subscribers. And there's two vehicles that we do do that through. One is through continuing to evolve and make the offering better and better, give more value to consumers, which inherently drives higher retention. But also what that does is, as we're evolving the offering, enables us to more efficiently draw more and more consumers to the platform. And so the focus for us primarily is around how do we identify ways to bring more consumers onto the platform? As previously mentioned, our aspiration is not to go from 1.5 million to three million consumers.
The executive team, as well as the rest of the leadership team at Hims & Hers is spending time thinking through what is the evolution that will take us from 1.5 million subscribers to tens of millions of subscribers. In the near term, I think the primary vehicle is going to be just around evolving the offering and ensuring that consumers have a best-in-class experience. That said, I think that the ability to cross-sell or increasingly even offer solutions that are multi-conditioned to consumer's nature remains an opportunity that we're very excited by. The focus right now is primarily around growing the subscription footprint.
Okay. That makes sense. So let's dive maybe a little bit deeper into the weight loss specialty, which is a massive opportunity. DataHorizzon Research estimates the weight loss drugs market will increase from about $2 billion in 2022 to nearly $83 billion by 2032. So competition likely going to be intense. So could you maybe talk about your strategy for differentiating sort of and capturing share within this sort of part of the market?
Yeah, absolutely. I think we're very excited by the weight category. Our view is that it is going to be a very large category with multiple players. There are a few things that give us conviction around our ability to establish a leadership position in this category. If you fast forward several years ago, many of the same kind of talking points or concerns around competition were also made in the dermatology and the sexual health space. The reality of those, what we've seen is when you take a consumer-first-oriented strategy that combines the innovative solutions and the holistic offering that we bring with an exceptional end-to-end user experience that is delightful, that yields great outcomes. In the weight management category, similar to what we've done for other categories, we're working very hard and being very thoughtful around how we're evolving the offering.
We've brought on leading specialists like Dr. Craig Primack that is an expert in the space, ran his own weight management clinic for over a decade that's helping to guide how do we evolve the solution in a way that resonates with consumers. We think through holding true to our principles of offering consumers an immense amount of value that is easy to access, transparent, safe, effective, and has them front and center in mind will fundamentally be a competitive advantage that we've seen in other categories that will be very translatable in the weight management category.
Got it. So let's touch briefly on your pricing strategy. You've long communicated that offering attractive and compelling pricing is a key part of your value proposition, and you lowered prices most recently in Q2 of last year. Where would you say your prices are today relative to the competition? And what are sort of some of the inputs and areas that you need to execute on to continue to drive prices down over time?
Yeah, so I think our belief is that the holistic value that we provide to consumers is exceptionally well positioned to almost any alternative out there, right? So when you think around what a consumer gets from coming to the Hims & Hers platform, it's not just the medical solution. It's the ability to engage with the provider, iterate, and have the provider fundamentally work with them on their journey through a given specialty to find the right solution, do that all from the convenience of their own home, and then have the medical solutions delivered, and continue to iterate on that process to get better and better. And so our focus is primarily around how do we remove barriers that are preventing consumers from seeking treatment or adhering to treatment versus centering it around what any individual competitor is doing?
We've seen a lot of success with that as a result. Historically, the execution has remained incredibly strong. I think that the affiliated pharmacies and that loop that we talked around where the platform is getting better and better with each user that's coming onto the platform is going to be something that will increasingly be a fundamental competitive advantage, both in terms of the scale that we get. Given the affiliated pharmacies, as we get more and more scale, the overall efficiencies of those pharmacies inherently increases, but also the platform and the insights that providers are equipped with to provide expertise to consumers, in our view, will get better and better.
The path to go from 1.5 million to tens of millions of subscribers will necessitate the removal of some of the barriers that we talked around, continuing to get better around generating awareness, get better at around making conditions approachable, enhancing the personalized solutions. But really, a meaningful barrier for a large portion of the country is centered around cost. We have the economics and the rigor, the structural setup to fundamentally make the value equation more attractive to consumers over time. Just to kind of specify that, the value equation may not necessarily always be price. It may also be the ability to get treated for multiple conditions. It may be the ability to get elevated service or the ability to receive other value-added services. We're constantly experimenting with all of those different touchpoints to identify what resonates with consumers more.
And so I think just at the scale that we're at, we'll be able to identify those quickly and pass that value on to consumers, which we think will enable us to hang on to our users for decades, but then also draw an increasing number of users to the platform.
Great. So we must, of course, ask you about AI. And you sort of touched on this in the beginning of our conversation. So late last year, you beta and launched MedMatch, a service for providers on the platform that helps them more effectively deliver personalized care. Maybe talk to us about some of the ways in which MedMatch can improve the quality of care offered. And what has sort of the earlier sort of perception from physicians been like so far?
Yeah, so I think just as we mentioned, I think technology, innovation, and having a tech stack that can evolve and iterate has been at the front and center of the ambition for Hims & Hers from the beginning, which is one of the reasons why we opted to build the EMR system as opposed to looking for an off-the-shelf solution on that dimension. What that has enabled us to do, as you mentioned, is start to offer products like MedMatch. So one of the barriers, in addition to consumers that are seeking new treatment, is the ability to fundamentally address the question of, has this solution worked for users that are like me? Maybe have the same height, weight, side effect concerns, potential comorbidities, ethnicity, geography, and so forth.
Through looking at how the technology stack has been built and evolved, the ability to fundamentally equip providers with insights to address those questions, in our view, will over time continue to elevate the confidence that providers have in providing solutions, as well as reinforce greater confidence from consumers in the ability to address that question. In MedMatch, in particular complex specialties like mental health, where there is a variety of different medical solutions, there's a variety of different dosages that you can take, what we are seeing is that the MedMatch concept is resonating incredibly well with providers. It's also resonating very well with consumers in that it's almost acting as a co-pilot to the providers. The providers have the ability to use it as an input in the treatment to consumers.
And so effectively, we're very excited, I think, particularly as we start to evolve the personalized offerings across other categories or as we go into categories such as weight management that also come with numerous solutions that are complex in nature, continuing to have the platform evolve with each user, each interaction, and enable that feedback loop to providers, in our view, will be a structural advantage for Hims & Hers and will only make the confidence that consumers have in our platform greater, as well as the confidence that providers have in the solutions that they're prescribing greater as well.
That's great. So let's switch gears and talk a little bit about your brand and marketing. So you've talked in the past about the importance of developing a trusted brand given the nature of your industry. What are some of the ways in which the company has been able to develop that trust with consumers?
Yeah, I think it boils down to we can go into some of the tactics that we do around our campaigns. But fundamentally, I think that the consumer-first mentality that permeates the DNA across Hims & Hers Health and is core to every leader and the ability for how that also is embedded into the decision-making process where the consumer is always at the forefront, I think, has enabled us to build that trust over time. And so yes, we do have consumer ads that make the brand more approachable and drive awareness. We also have partnerships that have elevated the awareness to consumers, whether that's through celebrities or partnering with leading research institutions or brick-and-mortar providers and partnerships.
But fundamentally, I think what's at the core in building the trusted brand is having the consumer first in the nuts and bolts of how we make decisions and embedding that in the overall culture across the organization. And so you can see some examples of that around how we opted to not bring controlled substances on the platform years ago while that could have been a meaningful revenue driver because our perception was, taking a consumer-first lens, the platform, as well as potentially the industry, was not effectively ready for that. You also see that in how we reject a meaningful portion of consumers if we're not able to care for them appropriately.
But as opposed to rejecting the consumers that we're not able to treat, we proactively have gone out there and looked for third-party brick-and-mortar providers that do have the ability to treat those consumers that we can hand them off to. And lastly, I would say even just the approach of how we approach and are very thoughtful around entering a product and category, there's a lot of demand around the GLP-1 solutions that we're excited to bring that onto the platform at some point. We're very methodical and deliberate in the decision-making process around those things because we always put the consumer at the front and center. And we spent years building that trust.
And so I think there's a tactics, but I think it's also just a cultural element across Hims & Hers that I think has enabled us to have a robust decision-making process that also translates into the trust that consumers have for us.
I cannot attest to that. I was one of those consumers who got rejected. So your marketing expense as a percent of revenue has been around 50% over the last couple of years. How should investors think about your ability to drive leverage in that line item over time? And maybe could you comment on your broader LTV to CAC framework?
Yeah, so I would zoom back into if you kind of rewind to 2022 or leaving 2021. I think that there was a lot of fundamental change in the marketing environment. There was economic concerns. There was also a lot of privacy changes that fundamentally changed the CAC contract for many companies across the ecosystem. What we saw, particularly in 2022, is that our strong unit economic setup that we spent years conducting upfront, the structural setup of our ecosystem, having the affiliated pharmacies, being thoughtful around negotiating volume-driven discount, and just the overall confidence in our experience and products enabled us to lean in at that time and had a louder voice when others potentially needed to pull back. And so one of the many elements that are driving. That's one of the many elements that are driving some of the share gains highlighted in the investor letter.
Dileveraging was more of a discretionary decision. I think what we're seeing right now from the growth and how consumers are drawn to the platform was the right long-term move. We have a ton of confidence in our ability to get leverage even as early as this year and the ability to deliver one to three points of leverage in the subsequent years between now and the end of the decade. I think one of the elements that is foundational to the ability to have strong conviction or unit economics is having the payback period remain below one year. Given that the company is so young, that is a metric that we look at because it effectively ensures that we're able to continuously self-fund new initiatives if the consumer is able to or if consumer cohort is able to pay back within a year.
As we fast-forward and we look at, we've now established a very strong presence in the market. We are driving greater and greater awareness through doing unique things such as TV ads and partnerships that are all speaking with one another. Our confidence in driving greater leverage in the future is centered around a couple of things. One is, throughout 2022, we spent a lot of time just really thinking through, how do we drive greater brand awareness and capture users earlier in their life cycle across whatever specialty they're potentially considering? And so I remember at the end of 2022, my mom would call me once a month and say, "Hey, I saw your company on TV." By 2023, it was almost more of a routine thing for her that I stopped receiving those phone calls.
And so I think that that's a testament of how we've invested and evolved the brand really over the last two and a half years. That spend is more semi-fixed in nature. So it's not as if it needs to continue to scale at the same rate that we've scaled it. And so there's structural leverage that's embedded in that even as early as this year. What we also are seeing is that we've seen early signs that the personalized products across many specialties are actually driving higher retention. And there are some conversion benefits that come with that. And so as we see the mix of personalized products continue to evolve across the platform and as that number goes up, we spend the majority of our spend in the acquisition of new users. It's a recurring revenue model as opposed to continuously trying to acquire a transaction.
So as a result of that structural recurring revenue model, as retention and conversion continue to evolve and drift up as a result of the personalized products, there's inherent leverage that comes with that. And then lastly, I think that there's just the overall maturation of the subscriber base. Again, just given that we spend the majority of marketing on new user acquisition, each cohort that's added and as the longevity of the subscriber base increases, that inherently drives greater leverage. And so we're very excited by the early signals that we've seen across each of those areas. I think the company will still continue to invest, but I think that we have great confidence that we have the ability to now leverage or get leverage in the coming years.
Great. So that segues nicely into a few questions on your operating model before we wrap up. So first, sort of on the revenue model, is there sort of any framework you can share in terms of how we should think about the components of revenue growth in 2024 and beyond? And I know we talked about sort of some of the drivers here, but how would you maybe rank order the importance of new customer acquisitions, which seems pretty important for the company at this point, then cross-selling, and then average revenue per user?
Yeah, I would say that the most important concept and what we spend a lot of time focused on is around, how do we grow the subscriber footprint? How do we go from 1.5 million subscribers at the end of 2023 to tens of millions of subscribers in the future? That is a function of both identifying ways to acquire new users more efficiently, whether it's organic means or continuing to refine some of the brand investments that we talked around earlier, as well as through continuing to evolve the overall experience, continuing to evolve the overall products across the ecosystem to increase the overall longevity of consumers on the platform. And so I would say the number one thing is the subscriber footprint, both new as well as hanging on, increasing the duration of users on the platform.
I think the concept of cross-selling and ARPU is an interesting one. I think what I would say is our approach there has been around, how do we bring as much value to consumers as possible? I think as a result of that, we've seen consumers that start to adopt multiple products. I think that what you are likely to see is in terms of the cross-sell dynamic, I don't think it's necessarily in the near term going to be an immediate focus for the company. But when you think around what are the components of personalization, unique dosages, unique form factors, the third element of that is the ability to treat multiple conditions or multiple concerns for a user. That is very much a focus for the overall company. I think it's something that with our scale and the technology platform, we're uniquely equipped to address.
But that is going to be more around driving the subscriber footprint. I think a side effect is we might see benefits around consumers taking multiple conditions as well as ARPU going up. But the focus is going to be really around driving the value to consumers. And as that value increases, we're confident that the overall subscriber base will grow.
Great. I think we have time maybe for one or two more questions. So sticking with your operating model, you have a long-term Adjusted EBITDA margin target of 20%-30%. And we've already talked about sort of driving further efficiencies from affiliated pharmacies and marketing leverage, which sort of sounds like will be offset by kind of pricing over time. So is reaching that target largely a function of growing topline and sort of gaining overall operating leverage, or are there any other considerations that investors should be aware of?
Yep, I think it's a really great question. Our focus is, as it has been, establishing a platform and our capital allocation framework where fundamentally the ecosystem gets more and more efficient with scale. We have a high degree of confidence in our ability to get marketing leverage. Our ability to hit those margin targets will be a large function of that. We still do see benefits around continuing to get more efficient around G&A, continuing to get more efficient around operations and support. The intent is to leverage some of those efficiencies to pass value back to consumers, which we believe, in turn, will do a couple of things. One is it will enable us the pathway to grow the subscriber footprint meaningfully from where it's at today.
But the second element is the structural advantages will inherently enable us to get greater and greater leverage on marketing that we talked around, such as having the brand spend be more semi-fixed in nature, increasing the overall longevity of users on the platform. And so what I would say is a critical part to hitting those targets is going to be centered around driving marketing leverage. But we're also actively taking decisions in a way that we can drive that leverage but still hit our aspiration of growing the subscriber footprint into the tens of millions.
Got it. So you have a very strong balance sheet with, I think, over $200 million in cash, no debt, and you are generating free cash flow. Obviously, there are a lot of areas you are investing in currently. But given your sort of financial profile, how should we think about sort of your broader capital allocation framework? And are there any areas of the business where you might be able to accelerate growth via M&A?
Yeah, it's a really great question. So I would say I think that, as mentioned, I think 2023 was a very exciting year for us, but we are very much at just the beginning of the Hims & Hers story, and the platform has so much runway ahead of it. Based upon the execution of the team and some of the unique structural advantages that we've talked around earlier, organic growth is going to be the main priority. And so I think we're going to continue to invest in different facets of the business, whether it's evolving the capabilities around broadening the number of personalized conditions that we're able to offer via the affiliated pharmacies or even starting to think through automation capabilities to make the pharmacies more efficient and pass some of those value back to consumers.
In the coming years, I think that that's something that you can expect us to meaningfully invest in. We are interested in M&A. I think there's a very high bar for it, given the organic growth profile has been incredibly strong, also given the fact that we've built and invested in leaders that are building incredibly strong teams to go address what are fundamentally very difficult problems in the health and wellness ecosystem to go figure out. And so I think we're going to continue to do that. It's not to say that we would not do any M&A, but there's a very high bar, and it's likely to be more oriented around adding an additional capability similar to the Apostrophe acquisition as opposed to looking to consolidate a revenue footprint. Just, I think our view is we're doing some fundamentally fairly unique things.
And so as a result, the bias is to invest towards that, but we still are keeping an open lens given the amount of deal flow that we see.
Great. Well, that was a great discussion. Just to maybe wrap up our session, and this is something we're asking all our panelists today, what is your one prediction about the e-commerce space as it relates to health and wellness that you think might surprise people over the next couple of years?
Yeah, so I think Andrew had a great letter that he wrote around a few themes he'd expect this year, such as the tele from telehealth with start to disappear, AI is becoming meaningfully noticeable, weight loss will grow, and so forth. But I think that what that boils down to is I think that the current experience that we offer today is viewed as something that is phenomenal and a novelty that drives a lot of delight. I think that consumers are going to expect that in the health and wellness place. And you've seen that across other industries, whether it's shipping speed now, a week before it was acceptable, and now people are expecting more two-day shipping or being able to consume media from the comfort of your own home.
I think today, what's likely to become less of a luxury and more of an expectation from consumers is the model that we're positioned to deliver very well. That is the ability to get care from the specialties of your own home in a time frame that's measured in hours as opposed to weeks or months, having data-driven recommendations and tools that are equipping providers to enable better care. Lastly, the concept of personalized treatments backed by those data recommendations, the ability to fundamentally listen to unique consumer needs and customize treatments for those consumers. I think Hims & Hers is positioned to deliver all of those things exceptionally well. I think that increasingly, when you kind of fast forward three years out, that will move from less of a luxury into more of an expectation for consumers.
We're very excited to be at the forefront of that.
That's great. Well, we're going to leave it there. Yemi, thank you so much for joining us today.
Thanks so much, Maria.