00:00Break us down the earnings number. It seems like it's confusing. And as you can see it from the
00:04stock, which is fluctuating. Yeah, HIMSS is a really volatile stock. So not entirely surprised
00:10that there is some movement here. I think it's taking everyone a bit of time to look through
00:15these results and to sort of parse out what is important here and sort of what the read is.
00:20HIMSS, you know, they beat on revenue for the quarter. They're also increasing their revenue
00:24guidance for the year. But at the same time, they took a bigger profit loss than the street was
00:30expecting. And that's one of the things that investors have really been looking at when it
00:34comes to HIMSS because HIMSS made this switch earlier this year. I don't know. Some people
00:39might remember. They said that they were going to move away from selling the copycat or compounded
00:45weight loss drugs that they had really been known for the last couple of years and that they were
00:50going to go into selling the brand name GLP-1 drugs. And there's a little bit less of a margin
00:56there. They can make less money on selling the brand name drugs because they can't mark them up as
01:01much. And so that's something that people have really been looking at and trying to see how that
01:07will impact HIMSS. And earlier we had a Needham analyst, Ryan McDonald, and he was really betting on
01:12the Novo partnership as the game changer. Are you hearing that from your sources? Like how big of a deal
01:17is that Novo partnership? It's definitely a big deal in terms of it removing this legal overhang
01:24that was really weighing on HIMSS' stock for a while. I mean, people were wondering for a long
01:30time, because this spat between the two companies was really out in the open, they were wondering
01:34whether Novo was going to sue HIMSS. And then Novo came out and basically did that. And so that was
01:41just, you know, a long time sort of question mark concern for investors. And then the two came back
01:47around and said that they were actually going to be partnering. So that was a really important
01:51moment for HIMSS. That's also when they said that they were going to change their strategy and move
01:55away from selling the compounded drugs and to focus on selling the brand name ones. And, you know,
02:02the hope was that that would increase visibility, sort of decrease this legal overhang,
02:06and also maybe bring more people who wanted the legit brand name drugs back to HIMSS' platform.
02:13And so I think that maybe people will be encouraged to see that at least in terms of sales and
02:19in terms
02:19of sales guidance for the rest of the year, it seems like HIMSS is moving in the right direction.
02:23You followed that delicious drama through your reporting here over these last many months.
02:26Let me just ask you about the subscriber numbers that we got in the earnings report today,
02:302.9 million. The estimate was 2.74 million. Talk about prospects for growth for this
02:36company as we see it kind of looking through or beyond, I guess, weight loss drugs. What does
02:40that number tell you just about the growth trajectory of this company?
02:44Yeah, that's a really good point. And I mean, it brings us back to maybe more people are seeking
02:48out the brand name drugs. So they might become more people might be coming to HIMSS for that.
02:52But HIMSS also has a suite of other offerings, lots of different cosmetic or aesthetic treatments,
02:58but also some other treatments for things like heart disease, looking at statins. But they are really
03:03known for their bread and butter, erectile dysfunction, hair loss drugs. That's sort of what they've
03:08always been known for. But they do offer this more personalized treatment, seems like custom
03:15treatments. They're really leaning heavy into AI and really leaning into the app experience and the
03:21user interface. So making it really easy for people to interact with a doctor, ask questions,
03:26things like that through an app, which I think a lot of people are really embracing and really like
03:31because the health care system, as we know, is so fragmented. A lot of doctors, primary care
03:37doctors don't have time to see patients now. And a lot of people are really liking this more
03:41online and sort of at your fingertips model. So we see HIMSS leaning into that. And it seems like
03:46in terms of subscriber growth, that's something that's been popular.
03:50It gets to a question I've had for a long time, which is how do you categorize this company? Do
03:53you see
03:54it as a pharmacy, kind of a new kind of pharmacy? Do you see this as some sort of broader
03:58health care companies? It's something novel? How do you define it?
04:02That is a really good question. That's something like we've actually asked him. That's something
04:06we've been asking as a team for a long time, because they seem to sort of do everything.
04:11I mean, at a certain point, they were also selling these compounded drugs. So we were like,
04:15is this its own pharmaceutical company? I mean, they sort of think of themselves as like a one stop
04:20shop. They want to be the future of the health care system, which is like a vertically integrated
04:25thing where you have the app, the doctors, you know, also potentially the drugs, because they do
04:32make certain compounded products still, even though it's not GLP ones or the weight loss drugs,
04:37they make different gummies. And so they're sort of doing all of this. And I think that might be
04:43where we're going. It's been really popular with consumers. That's for sure. And so we also see
04:49traditional pharmaceutical companies adopting some of the elements that have been really popular from
04:54and other telehealth companies. So definitely continue watching it. I'm sure we'll be talking
05:00about it for a long time.
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