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  "documentTitle": "Hims & Hers Health, Inc. (HIMS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-07-13 00:00:00",
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      "text": "We see 25% - 40% downside in HIMS shares, and perhaps more should regulators take actions that could impair its business model.",
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      "text": "We believe HIMS is an e-commerce business selling generic products and services and currently trades at a large premium to peers as a result of its high revenue growth. However, given the emergence of new OTC ED medications, and the large marketing expenditure (and high churn) necessary to sustain its revenue growth, we believe its growth rate will materially decline.\nWe believe there are numerous reasons why HIMS revenue multiple is likely to contract closer to its e-commerce peer group and see potential for 25% - 40% downside risk ($5.20 - $6.50), and more if regulators were to take issue with HIMS operating model.",
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      "text": "HIMS' core products are highly commoditized, and HIMS is a premium priced supplier while large entrants are gaining momentum.\nNew FDA approved ED treatment available OTC called Eroxon (i.e. without the need for a HIMS prescription) could thwart a sizeable portion of its revenue (estimated >50% of revenue).\nState and/or Federal regulatory action against HIMS for CPoM violations would have grave consequences.\nHIMS is structured to generate high-volume prescriptions for a limited set of conditions, not to provide a broad set of credible healthcare services.\nHIMS lacks real healthcare expertise and, at its core, is an e-commerce company.\nCustomers can game the HIMS system to obtain access to prescriptions and then purchase products elsewhere.\nThe HIMS care model and current infrastructure cannot support the requirements of new care areas such as mental health, cardiovascular health, and weight loss.\nThe HIMS platform is particularly ill-suited and positioned for women's conditions, as evidenced by poor reviews.\nAll the major growth opportunities highlighted by management have failed to materialize.\nHIMS is seemingly unable to grow revenue without massive customer acquisition costs.\nHIMS' customer churn appears to be much worse than the Company represents.",
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      "text": "downside risk: 25% - 40%",
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      "text": "HIMS' Premium Multiple Is Likely To Compress; We See Substantial Downside Risk",
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