Slide 1: Q2 2023 Financial Highlights
REVOLVE Q2 2023 Financial Highlights August 2, 2023
Slide 2: Note on Forward-Looking Statements
PAGE 2 Note on Forward-Looking Statements This presentation contains forward-looking statements as defined within the meaning of U.S. federal securities laws. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe
Slide 3: Q2 2023 Summary
PAGE Q2 2023 SUMMARY 3 NET SALES GROSS MARGIN ($MM) $290.1 $273.7 $228.6 55.8% 55.6% 55.9% 54.0% 50.5% $161.9 $142.8 (6%) YoY (198) BPs YoY 14% 4-Year (189) BPs CAGR Vs. Q2 2019 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 NET INCOME ADJUSTED EBITDA(1) ($MM) ($MM) $31.5 $35.4 $16.3 $2
Slide 4: Net Sales by Segment and Geography
PAGE NET SALES BY SEGMENT AND GEOGRAPHY 4 YoY DECLINE IN YoY INCREASE (DECLINE) IN NET SALES BY GEOGRAPHY Q2 2023 NET SALES Q2 2023 NET SALES IN Q2 2023 BY SEGMENT BY GEOGRAPHY 4% 19% 81% (4%) (7%) (15%) U.S. REVOLVE FWRD U.S. INTERNATIONAL INTERNATIONAL
Slide 5: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 5 ACTIVE CUSTOMERS(1) TOTAL ORDERS PLACED(1) AVERAGE ORDER VALUE(1) (TRAILING 12 MONTHS, in 000s) (000s) +14% YoY 2,458 2,268 2,243 2,165 $303 $301 1,769 $275 $255 1,533 1,554 1,294 1,163 $204 1,359 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 19 Q
Slide 6: Segment Results
PAGE SEGMENT RESULTS 6 SEGMENT NET SALES SEGMENT GROSS PROFIT ($MM) ($MM) (4%) YoY (15%) YoY $250 (7%) YoY 80% (23%) YoY 90% $244.7 $240 $150 $235.1 $230 $140 70% $220 80% % of segment net sales $130 $210 $200 58% $120 $188.8 $190 57% 56% 60% $180 52% $110 70% $170 58% 57% $160 53% 50% $100 $143.9 $
Slide 7: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 7 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 15.5% 13.2% 14.4% 14.6% 11.0% 11.7% 9.3% 6.6% 2.7% 3.8% Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 AS A % OF NET SALES Q2 23 Q2 22 CHANGE OBSERVATIONS Primarily reflects a lower mix of net sales
Slide 8: Earnings Per Share
PAGE EARNINGS PER SHARE 8 THE EPS MATH (000s, except per share figures and percentages) Q2 23 Q2 22 YoY Q2 DILUTED EPS(1) Income before income taxes $9,736 $21,093 (54%) $0.42 Provision for income taxes (2,433) (4,820) (50%) $0.20 $0.22 Effective tax rate (25%) (23%) (2 PTs) $0.10 Net income (GAAP)
Slide 9: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 9 NET CASH PROVIDED BY FREE CASH FLOW(1) CASH & CASH EQUIVALENTS, NET(2) OPERATING ACTIVITIES ($MM) ($MM) ($MM) +$31M, ($14M), 42% YoY 49% YoY or +13% YoY or (5%) QoQ $283.3 11% 4-Year CAGR 26% 4-Year CAGR $269.3 $269.3 $237.9 $66.6 $65.3 $219.6 $61.9 $60.
Slide 10: Balance Sheet Highlights
PAGE BALANCE SHEET HIGHLIGHTS 10 INVENTORY YoY SALES GROWTH % MINUS YoY INVENTORY GROWTH % ($MM) Inventory Declined 2% YoY Spread reduced 45 pts in 4 quarters $208.5 $213.3 $215.2 $205.3 $190.2 $179.2 (4%) $171.3 (7%) (9%) $141.8 (18%) $118.8 (20%) $100.5 (40%) (49%) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2
Slide 11: Build Up of Free Cash Flow in 1H 2023
PAGE BUILD UP OF FREE CASH FLOW IN 1H 2023 11 + $9.9 $32.6 $ Millions ($2.1 ) + $3.3 $21.5 Net Income Other Working Capital Decrease in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 12: Appendix: Definitions and Reconciliations
PAGE PAGE 12 12 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 13: Upcoming Investor Conferences
UPCOMING INVESTOR CONFERENCES BTIG CONSUMER TECHNOLOGY CONFERENCE • AUGUST 16, 2023 PIPER SANDLER GROWTH FRONTIERS CONFERENCE • SEPTEMBER 12, 2023
Slide 14: GAAP to Non-GAAP Reconciliation
PAGE GAAP TO NON-GAAP RECONCILIATION 14 ADJUSTED EBITDA ($MM) (1) Q2 2019 Q2 2020 Q2 2021 Q2 2022 Q2 2023 NET INCOME $12.7 $14.2 $31.5 $16.3 $7.3 (+) OTHER EXPENSE (INCOME), NET 0.4 0.2 0.3 (1.8) (2.4) (+) PROVISION FOR (BENEFIT FROM) INCOME 4.5 4.4 1.1 4.8 2.4 TAXES (+) DEPRECIATION AND AMORTIZATIO
Slide 15: Metrics Definitions
PAGE METRICS DEFINITIONS 15 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other (income) expense, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense and certain non-r