The news: Direct-to-consumer (D2C) telehealth firm Hims & Hers reported strong growth in revenues and users for 2021 and the last quarter in its recently released Q4 2021 earnings.
How we got here: Hims & Hers was busy scaling in 2021, and it’s reaping the benefits of its banner expansion year.
Hims & Hers has also been spending time to verticalize its business:
Trendspotting: D2C healthcare companies are on a growth tear—Hims & Hers is just one of the most notable key players.
The appeal of D2C healthcare: For consumers, subscription-based healthcare can be a more affordable option than the traditional care funnel. Meanwhile, D2C companies and investors can quickly reap returns without dealing with administrative hoops of the traditional healthcare chain (involving insurers/employers, for instance).
The challenge: While the D2C healthcare model can ease access to healthcare for consumers, it also creates unique challenges.