The New York Stock Exchange with the banner Hims & Hers Health is pictured in the Manhattan borough of New York on January 21, 2021.

Carlo Allegri | Reuters

His and her healththe online provider of erectile dysfunction and hair loss treatments, had its best stock market day since its debut three years ago after quarterly results beat forecasts and the company said it expects to achieve its first full year of profitability in 2024.

Shares of Hims & Hers closed up 31% at $13.43 on Tuesday afternoon. They are now up more than 50% for the year after climbing 39% in 2023.

Hims & Hers is an online platform where patients can meet providers and receive personalized support for skin care, mental health, sexual health, weight loss and hair care. Revenue jumped 47% to $246.6 million, beating analysts’ expectations of $246 million, according to LSEG, formerly Refinitiv.

Founded in 2017, the company went public through a special purpose vehicle in January 2021. Hims & Hers generated fourth-quarter net income of $1.2 million, or 1 cent per share, compared with a net loss of 10 .9 million dollars, or 5 cents a share, a year ago.

For the first quarter, Hims & Hers expects revenue to grow at least 40% from a year earlier to between $267 million and $272 million. Analysts had expected sales of $253 million. Full-year revenue will fall between $1.17 billion and $1.2 billion.

During the company’s quarterly call with investors on Monday, CEO Andrew Dudum said that customized solutions have helped attract new users and increased the longevity of its platform. He said newer specialties such as weight loss, mental health and Hers Dermatology are gaining traction and could each generate more than $100 million in revenue by 2025.

On mental health, Dudum said the company’s use of artificial intelligence has helped predict how an individual patient will respond to medication, which can mean avoiding a “brutal” trial-and-error process.

Dudum said the category is expanding by triple digits and “continues to be one of our fastest growing specialties.”

Analysts at Jefferies described the results as “better than Thanksgiving dinner” due to higher-than-expected revenue, profitability and guidance.

Hims & Hers estimates adjusted earnings of $22 million to $27 million in the first quarter, compared with the $14 million expected by analysts, according to StreetAccount.

“While we believe turnover was largely expected to be strong, we expect the market to be quite comfortable with margin leverage in the quarter and the leverage implied in guidance,” Jefferies analysts wrote, recommending a buy on the stock.

Analysts at Deutsche Bank, who have a hold rating on the stock, wrote Monday that Hims & Hers finished the year strong, with “significantly better than expected” guidance for 2024. They raised their price target to $14 from $8.

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