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  "documentTitle": "Hims & Hers Health, Inc. (HIMS)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-07-13 00:00:00",
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  "notes": "Includes a table of financial metrics from Q1 2020 to Q1 2023 and a quote from the CEO.",
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      "text": "HIMS has highlighted its crossover into positive adjusted EBITDA. However, even taking the adjusted metric at face value, we find that net income from its VIE entities (affiliated medical groups and pharmacies) rather than core operations accounted for over 100% of Q4 2022 and nearly 50% of Q1 2023 adjusted EBITDA.",
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      "text": "Adjusted EBITDA: $6",
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      "text": "We believe HIMS' impressive revenue ramp is simply the result of massive marketing expenditure. Inclusive of stock-based compensation, HIMS is still far from profitability. HIMS' predicament is only made more problematic by the fact that HIMS' customer base is a very leaky bucket. We suspect that, unlike a SaaS company, HIMS' business would deteriorate rapidly if marketing expenses were curtailed.",
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      "kind": "quote",
      "text": "You need to build a really good company. But instead, you hear a lot of this: Raise a ton of money, spend it on marketing, get a bunch of customers and build really fast. I'm not convinced that that's the best way to build a long-lasting business. So if you want to build a long-term brand, you have to have incredible financials very early.",
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      "text": "You need to build a really good company. But instead, you hear a lot of this: Raise a ton of money, spend it on marketing, get a bunch of customers and build really fast. I’m not convinced that that’s the best way to build a long-lasting business. So if you want to build a long-term brand, you have to have incredible financials very early. — CEO Dudum in December 2018 Digiday Interview",
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      "text": "HIMS' Lack of Operating Leverage table",
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      "kind": "title",
      "text": "Andrew Dudum might want to listen to Andrew Dudum.",
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