How has HIMS's cost structure evolved since 2022?

HIMS & Hers Health's cost structure has shown fluctuations with a significant increase in the fourth quarter of 2024, primarily driven by higher Cost of Goods Sold (COGS) and Research and Development (R&D) expenses: 1. **Cost of Goods Sold (COGS)**: HIMS's COGS has experienced a notable rise, from $26.56 million on March 31, 2022, to $303.38 million on December 31, 2024, with the highest amount recorded on September 30, 2023, at $114.49 million. This indicates a substantial increase in the cost of goods sold over the year, which could be due to factors such as increased production costs, higher raw material prices, or changes in the cost of services provided. 2. **Research and Development (R&D) Expenses**: The R&D expenses have also shown a significant upward trend, starting at $29.14 million on March 31, 2022, and increasing to $78.82 million on December 31, 2024. The highest amount was recorded on September 30, 2023, at $34.82 million. This suggests that HIMS has been investing more in research and development activities, which could be a strategic move to innovate and expand its product offerings or improve existing services. 3. **Selling, General, and Administrative (SG&A) Expenses**: The data for SG&A expenses is not available, but the total other operating expenses, which likely include SG&A, show a general upward trend, starting at $15.68 million on March 31, 2022, and increasing to $185.8 million on December 31, 2024. This indicates that HIMS's administrative and selling expenses have also been on the rise, which could be due to factors such as increased marketing efforts, higher salaries, or more significant overhead costs. |code|Ticker|Name|Date|Cost of Goods Sold|R&D Expenses|Total Other Operating Expenses|market_code| |---|---|---|---|---|---|---|---| |HIMS|HIMS.N|Hims & Hers Health|2022 Q1|2.6558E7|6088000|1.5683E7|169| |HIMS|HIMS.N|Hims & Hers Health|2022 Q2|2.6387E7|6861000|1.7448E7|169| |HIMS|HIMS.N|Hims & Hers Health|2022 Q3|3.0383E7|7977000|2.1751E7|169| |HIMS|HIMS.N|Hims & Hers Health|2022 Q4|3.4866E7|8311000|2.2521E7|169| |HIMS|HIMS.N|Hims & Hers Health|2023 Q1|3.7345E7|1.0748E7|2.6182E7|169| |HIMS|HIMS.N|Hims & Hers Health|2023 Q2|3.7754E7|1.1804E7|2.9227E7|169| |HIMS|HIMS.N|Hims & Hers Health|2023 Q3|3.9391E7|1.227E7|3.1609E7|169| |HIMS|HIMS.N|Hims & Hers Health|2023 Q4|4.2561E7|1.3405E7|3.2839E7|169| |HIMS|HIMS.N|Hims & Hers Health|2024 Q1|4.9076E7|1.5324E7|3.8747E7|169| |HIMS|HIMS.N|Hims & Hers Health|2024 Q2|5.9035E7|1.8654E7|4.1453E7|169| In conclusion, HIMS & Hers Health's cost structure has evolved significantly since 2022, with COGS and R&D expenses experiencing substantial increases. These changes could be indicative of strategic initiatives to expand operations, innovate products, and improve services, which may have a positive impact on the company's long-term growth and competitiveness. However, the increase in costs could also lead to short-term challenges in managing profitability and cash flow.