Hims & Hers Health, Inc.

Human capital and workforce · Skills shortage and training requirements

Competition for these resources, particularly for engineers with expertise in areas like machine learning and artificial intelligence, is intense.

Supply chain and procurement · Supplier operation and dependance

Disruption to our global supply chain, including as a result of evolving laws and regulations, can impact our operations in ways that may be difficult to predict or control, may require us to modify or discontinue certain supplier relationships, sourcing strategies, or operational processes, and may result in delays in product availability, increased costs for compliance or alternative sourcing, or the need to shift to different third-party partners.

Core operations · Operational disruption and business continuity

We have experienced rapid growth in recent fiscal years and expect to continue to invest in our growth for the foreseeable future. High levels of growth may not be achieved in future periods and may not generate a corresponding improvement in our results of operations.

Supply chain and procurement · Supplier financial distress and capability

If we were to lose our relationship with one of our Partner Pharmacies or Manufacturing Suppliers, are unable to obtain access for customers to low cost pharmaceutical products through our Partner Pharmacies, Facilities, or Manufacturing Suppliers, or one of our Partner Pharmacies, Facilities or Manufacturing Suppliers was subject to regulatory or legal enforcement, we cannot guarantee that we will be able to find replacement partners in a timely manner.

Technology infrastructure · Network connectivity and telecommunications

Our business depends on continued and unimpeded access to the internet and mobile networks.

Digital transformation and innovation · Artificial intelligence and automation

The information that we provide to Providers, customers, and our partners could be inaccurate or incomplete, which could harm our business, financial condition, and results of operations.

Information management · Data quality and integrity

Incorrect identity verification data with respect to our current or potential customers received from third-party service providers may result in us inadvertently allowing access to our offerings to individuals who should not be permitted to access them.

Information management · Technology vendor dependence

We depend on a number of third parties to perform functions critical to our ability to operate our platform, generate revenue from customers, and to perform many of the related functions.

Cybersecurity and data protection · Data breaches and cyber attacks

Security breaches, loss of data, and other disruptions could compromise sensitive information related to our business or customers, or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation.

Tax and financial reporting · Financial reporting and accounting standards

Changes in accounting rules, assumptions, or judgments could materially and adversely affect us.

Industry regulation · Licensing and permits

If any of our Facilities are unable to obtain and/or maintain necessary licenses and permits, or if any of the Facilities or our operations fail to comply with applicable laws and regulatory requirements, our business, financial condition, and results of operations may be materially and adversely affected.

Legal and litigation · Product liability and warranty claims

The activities and quality of Providers treating our customers and Facilities performing fulfillment and distribution, including any potentially unethical or illegal practices, could damage our brand, subject us to liability, and harm our business and financial results.

Legal and litigation · Litigation and legal proceedings

From time to time we are subject to legal and regulatory proceedings and inquiries in the ordinary course of business, which can include intellectual property disputes or claims relating to our marketing or sale of products, any of which may be costly to defend and could materially harm our business and results of operations.

Social and demographic · Public perception and reputation

Perceptions regarding the safety, efficacy, and quality of compounded drugs may significantly harm our business, financial condition, and results of operations.

Natural and catastrophic events · Force majeure and business interruption

Our business could be disrupted by catastrophic events and man-made problems, such as power disruptions, data security breaches, and terrorism.

Customer and revenue · Revenue concentration in specific products or segments

In the United States, we derive a substantial majority of our revenue from customers' subscription-based purchases of prescription products made available through our platform.

Strategic execution · Merger acquisition and divestiture risks

Acquisitions and investments could result in operating difficulties, dilution, and other harmful consequences that may adversely impact our business, financial condition, and results of operations. Additionally, if we are not able to identify and successfully acquire suitable businesses, our results of operations and prospects could be harmed.

Market position and competition · Disruptive competitors and new market entrants

Competitive platforms or other technological breakthroughs for the monitoring, management, treatment, or prevention of medical conditions may adversely affect demand for our offerings.

Innovation and product development · Intellectual property protection and infringement

Failure to protect or enforce our intellectual property rights could harm our business and results of operations.

Organizational and management · Leadership and management changes

Our success depends on the continuing and collaborative efforts of our management team, and our business may be severely disrupted if we lose their services.