Slide 1: Q3 2023 Financial Highlights
REVOLVE Q2 2023 Financial Highlights August 2, 2023 Q3 2023 Financial Highlights November 1, 2023
Slide 2: Note on Forward-Looking Statements
PAGE 2 Note on Forward-Looking Statements This presentation contains “forward-looking statements” 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,” “conte
Slide 3: Q3 2023 Summary
PAGE Q3 2023 SUMMARY 3 NET SALES GROSS MARGIN ($MM) $268.7 $257.6 $244.1 53.6% 55.3% 55.1% 53.0% 51.7% $154.2 $151.0 (4%) YoY (127) BPs YoY 14% 4-Year (190) BPs CAGR Vs. Q3 2019 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 NET INCOME ADJUSTED EBITDA(1) ($MM) ($MM) (73%) YoY $19.4 $16.
Slide 4: Net Sales by Segment and Geography
PAGE NET SALES BY SEGMENT AND GEOGRAPHY 4 Q3 2023 NET SALES Q3 2023 NET SALES NET SALES MIX BY SEGMENT AND BY SEGMENT BY GEOGRAPHY GEOGRAPHY IN Q3 2023 ($MM) ($MM) (2%) YoY (5%) YoY 85% 15% $222.1 $217.7 $217.6 $207.2 81% REVOLVE FWRD (14%) YoY (1%) YoY $46.6 $39.9 $51.1 $50.4 20% 80% REVOLVE FWRD U
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) +12% YoY 2,510 2,249 $320 $299 2,133 $275 $276 1,678 1,830 1,951 1,438 1,504 $232 1,194 1,141 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 19 Q
Slide 6: Segment Results
PAGE SEGMENT RESULTS 6 SEGMENT NET SALES SEGMENT GROSS PROFIT ($MM) ($MM) (2%) YoY (14%) YoY $250 (4%) YoY 0.8 $150 (24%) YoY 0.9 $240 $230 $140 $222.1 0.7 $217.7 $220 0.8 % of segment net sales $130 $204.2 $210 57% $200 $120 56% 55% 0.6 56% $190 0.7 $180 $110 $170 55% 56% $100 $160 0.5 $150 51% $90
Slide 7: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 7 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(2) 14.4% 15.9% 8.3% 7.9% 9.4% 8.9% 5.5% 6.6% (1) 3.7% 0.1% Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 AS A % OF NET SALES Q3 23 Q3 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) Q3 23 Q3 22 YoY Q3 DILUTED EPS(1) Income before income taxes $4,308 $16,191 (73%) Provision for income taxes (1,130) (4,203) (73%) Effective tax rate (26%) (26%) -- $0.27 $0.22 Net income (GAAP) $3,178 $11,988 (7
Slide 9: Cash Flow Highlights
PAGE CASH FLOW HIGHLIGHTS 9 NET CASH PROVIDED BY PURCHASE OF FREE CASH FLOW(1) OPERATING ACTIVITIES PROPERTY AND EQUIPMENT ($MM) ($MM) ($MM) 37% YoY 44% YoY 10% 4-Year CAGR 21% 4-Year CAGR $74.4 $76.2 $66.6 $68.4 $47.2 $44.1 $34.5 $31.8 Average of 0.7% of Net Sales $30.5 $20.4 $11.5 $1.8 $1.8 $3.9 $
Slide 10: Stock Repurchase and Balance Sheet Highlights
PAGE STOCK REPURCHASE AND BALANCE SHEET HIGHLIGHTS 10 STOCK REPURCHASE ACTIVITY IN Q3 2023 CASH & CASH EQUIVALENTS, NET(1) ($MM) ($MM) +$23M, +9% YoY ($2M), or (1%) QoQ +$216M, >5X vs. Q3 2019 $87.4 $266.9 $269.3 $266.9 $244.0 $221.6 Repurchased 907,219 shares of Class A common stock during Q3 at an
Slide 11: Balance Sheet Highlights
PAGE BALANCE SHEET HIGHLIGHTS 11 INVENTORY YoY SALES GROWTH % MINUS YoY INVENTORY GROWTH % ($MM) Inventory Declined 5% YoY $208.5 $213.3 $215.2 $205.3 $202.9 $190.2 1% $179.2 $171.3 (4%) $141.8 (7%) (9%) $118.8 $100.5 (20%) (18%) (40%) (49%) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 2
Slide 12: Build Up of Free Cash Flow in 9 Months YTD 2023
PAGE BUILD UP OF FREE CASH FLOW IN 9 MONTHS YTD 2023 12 + $12.3 $44.1 ($3.1 ) $ Millions + $10.2 $24.7 Net Income Other Working Capital Decrease in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 13: Appendix: Definitions and Reconciliations
PAGE PAGE 13 13 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 14: Upcoming Investor Conferences
UPCOMING INVESTOR CONFERENCES RAYMOND JAMES TMT & CONSUMER CONFERENCE • DECEMBER 5, 2023 MORGAN STANLEY GLOBAL CONSUMER & RETAIL CONFERENCE • DECEMBER 6, 2023
Slide 15: GAAP to Non-GAAP Reconciliation
PAGE GAAP TO NON-GAAP RECONCILIATION 15 ADJUSTED EBITDA ($MM) (1) Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 NET INCOME $9.6 $19.4 $16.7 $12.0 $3.2 (+) OTHER EXPENSE (INCOME), NET 0.0 0.3 (0.2) (1.4) (4.0) (+) PROVISION FOR INCOME TAXES 3.3 2.1 2.7 4.2 1.1 (+) DEPRECIATION AND AMORTIZATION 1.1 1.3 1.1
Slide 16: Metrics Definitions
PAGE METRICS DEFINITIONS 16 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