Investing.com — Hims & Hers Health (NYSE:) reported third-quarter results that beat analysts’ expectations and raised its full-year forecast, driven by strong growth in the number of subscribers and improved profitability.

Shares of the health and wellness platform jumped more than 11% in U.S. pre-market trading following the release.

Adjusted earnings per share came in at $0.32, beating analysts’ estimate of $0.10. Revenue for the quarter was $401.6 million, up 77% from the year-ago period and beating the consensus estimate of $382.2 million.

Hims & Hers saw its subscriber base reach 2.0 million, an increase of 44% year-over-year. The company noted that more than 1 million subscribers now use custom solutions.

“Our execution of a strategy that provides customers with convenient, transparent and affordable access to care designed specifically for them allows us to reach millions of people across the country,” said Andrew Dudum, co-founder and CEO .

For the fourth quarter, Hims & Hers expects revenue between $465 million and $470 million, above the consensus of $421.1 million. The company raised its full-year 2024 revenue forecast to a range of $1.460 billion to $1.465 billion, up from the previous analyst consensus of $1.4 billion.

Chief Financial Officer Yemi Okupe highlighted the company’s improving profitability, saying: “(o)ur model is rapidly gaining momentum, leading to accelerated revenue growth, improved profitability and strong cash flow. »

Baird analysts noted that the company benefits from GLP-1 drugs, a class of drugs for weight loss and diabetes that has seen a resurgence in popularity. However, Hims & Hers executives have not explicitly quantified GLP-1’s contribution to the company.

Hims & Hers stock price fell recently after federal drug regulators said Eli Lilly’s (NYSE:) blockbuster drugs for weight loss and diabetes are no longer considered to be in shortage .

Big pharmaceutical companies, including Eli Lilly and rival Novo Nordisk (NYSE:), have struggled to meet growing demand for GLP-1 drugs, which have been shown to help patients lose up to 20% of their weight on average.

Because of the shortage, U.S. regulators have allowed other companies to make compounded versions or shut down recreations of brand-name drugs.

Hims & Hers is one such compound, offering an injection of semaglutide — the key ingredient in Novo Nordisk’s popular drug Wegovy — for $199 per month to patients on a 12-month plan, according to its website.

However, the Food and Drug Administration said tirzepatide – the drug marketed by Eli Lilly as Zepbound for weight loss and Mounjaro for diabetes – was no longer in shortage in the United States, ending a shortage classification that it had implemented for the first time in 2022. .

Analysts noted that Hims & Hers will not be directly impacted by the FDA’s decision because it contains semaglutide, which remains on the FDA’s shortage list. But they reported that the announcement limited Hims & Hers’ future total addressable market and “portended a quicker-than-expected resolution to shortages.”

(Senad Karaahmetovic contributed reporting.)