Shares of Hims & Hers Health (HIMS) plunged in late tr꧋ading Monday after the company reported falling margins as costs rose, overshadowing better-than-expected sales.

The online healthcare provider’s fourth-quarter revenue nearly doubled year-over-year to $481.14 million, while earnings per share rose to 11 cents from 1 cent a year ago. Both figures topped analysts’ mean estimates compiled by Visible Alpha. 

Hims & Hers shares were down nearly 20% in extended trading Monday following the release. They had roughly quintupled in value over the past year through Monday's close.

However, the company’s gross margin fell to 77% from 83% as costs surged. Hims & Hers said the higher costs related to the rollout of new weight-loss offerings, that it said were “strategically priced to attract new customers.”

Looking ahead, the company s﷽ai♉d it anticipates first-quarter revenue of $520 million to $540 million, above the analyst consensus.

The report comes days after shares of Hims & Hers 澳洲幸运5官方开奖结果体彩网:took a hit after the 澳洲幸运5官方开奖结果体彩网:Food & Drug Administration said the active ingredient in Novo Nordisk’s (NVO) Wegovy and Ozempic is no longer in short supply, raising worries about the strength of weight-loss offerings from Hims & Hers, which makes copycat drugs and has benefited from the limited availability of some obesity medicines.

CORRECTION—Feb. 25, 2025: This article has been corrected since it was first published to reflect Wegovy is produced by Novo Nordisk.