Slide 1: Q4 and Full Year 2024 Earnings Presentation
Q4 and Full Year 2024 Earnings Presentation RENATA L., MD
Slide 2: Disclaimer and Forward-Looking Statements
DISCLAIMER Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by FIGS, Inc. (the “Company”) or any officer, director, employee, agent or advisor of the Company. This presentation does not purport to be all inclusive or to contain all of
Slide 3: Our Mission
OUR MISSION To celebrate, empower, & serve those who serve others EARNINGS 3 PRESENTATION
Slide 4: Why FIGS?
WHY FIGS? • Large, replenishment-driven sector with strong long-term growth fundamentals • Disrupting the healthcare apparel industry globally with best- in-class product and storytelling that centers around an underserved community • Sustainable brand differentiators within marketing, product innov
Slide 5: FY 2024 at a Glance
FY 2024 at a Glance NET REVENUES $555.6M • Delivered year-over-year net revenues growth of 2% in FY 2024, exceeding our most recent outlook and supported by net revenues growth of 5% in Q4 2024 o Categories: Scrubwear grew 1%; non-scrubwear grew 5% GROSS MARGIN 67.6% o Geographies: the U.S. declined
Slide 6: Key Operating Metrics: Active Customers and Net Revenues per Active Customer
KEY OPERATING METRICS (1) (1) Active Customers Net Revenues Per Active Customer ( T RA I LI N G T W ELV E M O N T H S , I N T H O U S A N DS ) ( T RA I LI N G T W ELV E M O N T H S ) +3% 3, 00 0 YOY $25 0 -1% $224 YOY 2,670 $221 2,593 $210 $208 2, 50 0 $202 2,294 $20 0 $185 2, 00 0 1,872 $15 0 1, 50
Slide 7: Key Operating Metrics: Average Order Value
KEY OPERATING METRICS (1) Average Order Value (AOV) -1% $12 0 YOY -2% $117 YOY $116 $115 $11 5 $113 $112 $11 0 $105 $10 5 $10 0 $95 $95 $94 $90 $85 $80 2019 2020 2021 2022 2023 2024 Q4'23 Q4'24 (1) AOV is a key operational and business metrics that is important to understanding our performance. See
Slide 8: Diversified Growth Strategy
DIVERSIFIED GROWTH STRATEGY Product Innovation Deep Connection with Purpose with the Healthcare Community Continued disruption and technical innovation Drive awareness and engagement through across styles, categories, and fabrications to powerful, purposeful storytelling, and unwavering better serve
Slide 9: Product Innovation
Product Innovation We introduced new products across the layering system designed for maximum comfort, versatility, and durability, including: • On-Shift Float Bomber Jacket & Vest™ is our newest, lightweight outerwear fabrication engineered to keep AC out and flow state in. • On-Shift High Pile Fle
Slide 10: Build and Deepen Connection with Community
Build and Deepen Connection with Community • We continued to inspire the next generation by spotlighting Awesome Humans who push boundaries in their field. Our 2024 EXTREMES campaign culminated with our All Altitude launch featuring Dr. Renata L., Mountain Rescue Flight Physician. • Our whimsical ho
Slide 11: Impact
Impact We believe that supporting healthcare professionals means recognizing the mental health challenges they face every day — and showing up with the support they deserve. In Q4 2024, FIGS furthered our efforts to build a better healthcare culture via: SPARKREACH INNOVATIVE LEADERSHIP Donating $10
Slide 12: International: Expanding Global Presence
INTERNATIONAL Expanding Global Presence Disrupting global healthcare apparel with product innovation and powerful top of funnel marketing campaigns • Experienced record net revenues in International with 45% year- over-year growth in Q4 2024 and 31% year-over-year growth in FY 2024. • Growth attribu
Slide 13: TEAMS: Serving Healthcare Institutions
TEAMS Serving Healthcare Institutions Serving hospitals, medical offices, and concierge clinics to professionalize and standardize their teams • Achieved record FY 2024 net revenues in TEAMS, growing over 20% vs. FY 2023. • Hired dedicated leader to drive our existing inbound efforts and build our o
Slide 14: Retail: Creating Community Presence
RETAIL Creating Community Presence Executing a retail strategy that enables healthcare professionals to connect with FIGS and their peers • Continue to employ a thoughtful and disciplined “Test, Learn, Apply and Win” rollout strategy. • Operate two existing Community Hubs with Century City opened in
Slide 15: Why FIGS?
WHY FIGS? Large Industry Sector with Strong Long Sustainable Differentiators Term Growth Fundamentals • Largely non-discretionary, replenishment-driven industry with approximately • Authentic, category-defining brand with deeply passionate, loyal community 23 million workers in the U.S.(1) • Industr
Slide 16: Financials
Financials EARNINGS 16 PRESENTATION
Slide 17: Q4 and FY 2024 Net Revenues
Q4 AND FY 2024 NET REVENUES (IN M IL L ION S ) Q4 2024 SCRUBWEAR / NON-SCRUBWEAR NET REVENUES MIX AND YOY GROWTH +1.8% YOY $60 0 $555.6 24%, $545.6 +13% YOY $505.8 $50 0 76%, $419.6 +2% YOY $40 0 Scrubwear Non-Scrubwear $30 0 $263.1 Q4 2024 US / INTERNATIONAL NET REVENUES MIX AND YOY GROWTH +4.8% $2
Slide 18: Q4 and FY 2024 Gross Margin
Q4 AND FY 2024 GROSS MARGIN 73% 72.3% 71.8% The modest decline in gross 71% margin compared to Q4 2023 primarily reflected several mix 70.1% headwinds, including the higher sales mix of non-scrubwear, as 69% 69.1% well as product mixes within both the scrubwear and non- scrubwear categories. This 67
Slide 19: Q4 and FY 2024 Operating Expense
Q4 AND FY 2024 OPERATING EXPENSE 70 % 67.2% 70 % 62.8% The increase in selling expense in 61.4% Q4 2024 as a percentage of net 60 % 60 % 57.7% revenues primarily reflects the impact of lapping an outsized 25.5% favorable duty reclassification, 22.9% 50 % 50 % 25.0% higher fulfillment expenses as we
Slide 20: Q4 and FY 2024 Profitability
Q4 AND FY 2024 PROFITABILITY Net Income (Loss) Margin ( % O F N ET REV EN U ES ) 9% 6% 6.9% 3% 4.2% 4.1% 1.2% 0.5% 0% -2.3% -3% FY'21 FY'22 FY'23 FY'24 Q4'23 Q4'24 Adjusted EBITDA Margin (1) ( % O F N ET REV EN U ES ) 30% 25.1% 20% 18.4% 17.2% 15.8% 13.9% 10% 9.3% 0% FY'21 FY'22 FY'23 FY'24 Q4'23 Q4
Slide 21: 2024 Balance Sheet and Cash Flow Results
2024 BALANCE SHEET AND CASH FLOW RESULTS Cash, Cash Equivalents & Short-Term Investments Cash Flow Changes ( F O R T H E Y T D P ERI O D EN D ED DEC EM B ER 3 1 , 2 0 2 4 ) 350 $75.1 $3.3 -$17.0 -$27.5 300 -$45.5 $246.7 $245.1 $246.7 $2.7 $7.3 $245.1 250 ( $ IN M ILLION S , U N A U D ITE D ) ( $ IN
Slide 22: Full Year 2025 Outlook
Full Year 2025 Outlook “ We ended 2024 in a strong financial position that will support our efforts to NET REVENUES GROWTH VS. 2024 take decisive actions across a number of measures in 2025. This includes investing with conviction and speed into our emerging channels to accelerate Down low-single-di
Slide 23: Appendix
Appendix EARNINGS 23 PRESENTATION
Slide 24: Non-GAAP Financial Measures and Key Operating Metrics
NON-GAAP FINANCIAL MEASURES AND KEY OPERATING METRICS Included in this presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) and which are designed to supplement, and not as a substitute for, the Company’s financ
Slide 25: Non-GAAP Financial Measures and Key Operating Metrics (Cont.)
NON-GAAP FINANCIAL MEASURES AND KEY OPERATING METRICS (CONT.) The following table presents a reconciliation of adjusted EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with GAAP, and presents adjusted EBITDA margin with net income margin, which
Slide 26: Non-GAAP Financial Measures and Key Operating Metrics (Cont.)
NON-GAAP FINANCIAL MEASURES AND KEY OPERATING METRICS (CONT.) The Company has also included herein “active customers,” “net revenues per active customer” and “average order value,” which are key operational and business metrics that are important to understanding Company performance. The Company bel