Slide 1: Q1 2023 Earnings Presentation
Q1 2023 Earnings Presentation 1 Natalie C., MD & Jonathan K., MD
Slide 2: Disclaimer
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 t
Slide 3: Our Mission: To celebrate, empower & serve those who serve others
Manraj B., Dental Student Danielle M., RN, BSN Bri T., DDS & Hamza G., DMD OUR MISSION To celebrate, empower & serve those who serve others Lauren A., DVM, DACVIM Dion T., PharmD Hana Z., RDH Wilson C., MD Asia S., PA-C, MPH Leslie B., PharmD
Slide 4: Q1 2023 Financial Performance at a Glance
Financial Performance at a Glance NET REVENUES GROSS MARGIN NET INCOME ADJ. EBITDA MARGIN(1) $120.2M 71.3% $1.9M 13.4% Q1 2023 +9% YoY +10 bps YoY (79%) YoY (9) ppts YoY (1) Adjusted EBITDA margin is a non-GAAP financial measure. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appe
Slide 5: Key Operating Metrics
Key Operating Metrics Active Customers(1) Average Order Value Net Revenues Per Active (Trailing Twelve Months, in thousands) (AOV)(1) Customer(1) (Trailing Twelve Months) +22% YoY (2%) YoY (4%) YoY (unaudited) 2023 2023 2023 2022 2022 2022 Investing strategically in marketing drove strong active cus
Slide 6: Product Innovation
Product Innovation BEST ONSHIFT OUTERWEAR STYLE EVER! Debuted a new jacket in the On Shift™ franchise with technical properties constructed in a brand new, super soft, extra mobile proprietary fabrication On Shift™ ContourKnit Jacket is the lightest outer layer in our layering system, with pocketing
Slide 7: Product Innovation
Product Innovation Delivering a layering system to expand reach and drive 7 higher net revenues per active customer
Slide 8: Build and Deepen Connection with Community
Build and Deepen Connection with Community Engaging continuously with new customers and our existing community through impactful marketing
Slide 9: Expand Presence: International
Expand Presence International ● International net revenues grew 45% YoY in Q1 2023 2019 / 2020 2022 ● Canada ● Germany ● Italy ● Performance led by demand in Canada, our most ● Australia ● France ● Spain penetrated international market ● United Kingdom ● Ireland ● New Zealand ● Belgium ● UAE ● Nethe
Slide 10: Expand Presence: TEAMS
Expand Presence TEAMS ● Opportunity to access the 15% of healthcare professionals who receive scrubs through their institutions ● Platform enables institutions to standardize and professionalize their teams with FIGS ● Partnering with a number of associations to bring FIGS to their teams ● On track
Slide 11: Expand Presence: Retail
Expand Presence Retail ● First store on track to open in Los Angeles’ popular Century City Mall in Q3 2023 ● The store will provide unique customer experience where HCPs will be able to: ○ Experience FIGS product in-person with the assistance of knowledgeable staff ○ Gather as a community and meet w
Slide 12: Advancing Strategic Priorities
Advancing Strategic Priorities ● Product Innovation ○ Expand and evolve the FIGS layering system with new innovation, including technical features, fabrications, styles and categories ● Build and Deepen Connection with Community ○ Drive awareness and engagement through brand and performance marketin
Slide 13: Advocacy and Giving Back
Advocacy and Giving Back Released our 2022 Impact Report to demonstrate all the ways we give back to the healthcare community and show up for them every day The Dr. Lorna Breen Heroes’ Foundation Donated $100k to ALL IN: WellBeing First For Healthcare, an initiative co-founded by #FirstRespondersFir
Slide 14: Financials
OFIGS Financials
Slide 15: 1Q 2023 Revenues Results
1Q 2023 Revenues Results Net Revenues Q1 2023 Net Revenues Mix ($ in millions) (% of total revenues) SCRUBWEAR / US / NON-SCRUBWEAR INTERNATIONAL +9% +45% YoY +14% YoY YoY Net revenues growth was primarily driven by an increase in orders
Slide 16: Q1 2023 Gross Margin
Q1 2023 Gross Margin ● Gross margin increase in Q1 was primarily related to lower air freight utilization partially offset by a higher mix of promotions Strong gross margin sustained despite headwinds
Slide 17: Q1 2023 Operating Expense
Q1 2023 Operating Expense ● The increase in selling expense as a percentage of net revenues was primarily driven by higher fulfillment 68.5% expenses, including increased storage costs and, to a 58.7% lesser extent, the impact from international duty subsidies ● The increase in marketing expense as a
Slide 18: Q1 2023 Profitability
Q1 2023 Profitability Net Income (Loss) Margin (% of total revenues) Adjusted EBITDA Margin(1) (% of total revenues) (1) Adjusted EBITDA margin is a non-GAAP financial measure. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on non-GAAP financial m
Slide 19: Q1 2023 Balance Sheet / Cash Flow Results
Q1 2023 Balance Sheet / Cash Flow Results Cash & Cash Equivalents Cash Flow Changes Q1 2023 (as of March 31, 2023) (for the quarter ended March 31, 2023) ($ in millions, unaudited) Free Cash Flow(1) ($3.7) Strong debt-free balance sheet (1) Free cash flow is a non-GAAP financial measure. See “Non-GAAP
Slide 20: 2023 Full Year Outlook
2023 Full Year Outlook Net Revenues growth vs 2022: 5.5% to 7.5% Adjusted EBITDA Margin(1): 12% to 13% (1) Adjusted EBITDA margin is a non-GAAP metric. We have not provided a quantitative reconciliation of our adjusted EBITDA margin outlook to a GAAP net income margin outlook because we are unable,
Slide 21: Appendix
OFIGS Appendix
Slide 22: 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 financia
Slide 23: Non-GAAP Financial Measures and Key Operating Metrics (cont.)
Non-GAAP Financial Measures and Key Operating Metrics (cont.) The following table reflects 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 is
Slide 24: 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 number of a