Slide 1: Q2 2024 Earnings Presentation
Q2 2024 Earnings Presentation MOHAMED H., MD SAVANNAH H., ACNP-C
Slide 2: Disclaimer and Forward-Looking Statements
DIS CL AIMER 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 o
Slide 3: Our Mission
OUR M IS S ION To celebrate, empower, & serve those who serve others EARNINGS 3 PRESENTATION
Slide 4: Why FIGS?
W H Y FIG S? • Large, recession-resistant, 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
Slide 5: Q2 at a Glance
Q2 at a N ET REVEN UES (1) Glance $144.2M GR OS S MARG IN • Delivered net revenues and adjusted EBITDA margin(2) that exceeded outlook 67.4% • U.S. net revenues(1) grew 1% over Q2 2023 • International net revenues(1) grew 32% over Q2 2023 N ET IN COME • Non-scrubwear grew 13% over Q2 2023 • Generate
Slide 6: Key Operating Metrics
KEY O PERATI NG M ETRI CS (1) (1)(2) Active Customers Net Revenues Per Active Customer (T R A IL IN G T W E L V E MON T H S , IN T H OU S A N D S ) (T R A IL IN G T W E L V E MON T H S ) +6% (2%) 3,000 $250 Y OY Y OY $224 $221 2,592 2,628 $215 $211 $210 2,476 2,500 $202 2,294 $200 $185 2,000 1,872 $
Slide 7: Average Order Value (AOV)
(1) AVERAG E O RDER VALUE ( AO V) $116 $115 $115 (2%) YOY $113 $112 $112 $108 $105 $104 $100 2021 2022 2023 Q2'23 Q2'24 (1) AOV is a key operational and business metrics that is important to understanding our performance. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix fo
Slide 8: Diversified Growth Strategy
DIV E R SIFIE D G R OW T H ST R A T E G Y Product Innovation with Build and Deepen Connection Purpose with Healthcare Community Continued disruption and technical innovation Drive awareness and engagement through across styles, categories, and fabrications to powerful, purposeful storytelling, and u
Slide 9: Product Innovation
Product Innovation We introduced new products across the layering system designed for maximum comfort, durability, and range of motion, including: • Indestructible Scrubs Capsule provides maximum durability and stretch for healthcare professionals working in extreme environments • High Waisted Sevil
Slide 10: Build and Deepen Connection with Community
Build and Deepen Connection with Community • Our Indestructibles campaign featured Dr. Chloe B., DVM, a wildlife veterinarian working on the frontline of conservation and wildlife protection. • For Nurses Week, we brought 13 nurses from across the country to ring the opening bell at the New York Sto
Slide 11: Impact
Impact FIGS HILL DAY On April 30, we brought 16 healthcare professionals to Washington DC to meet with 28 Congressional and Senate offices on Capitol Hill and with the healthcare policy team from the White House. Our advocacy resulted in several important wins on our Awesome Humans Bill priorities,
Slide 12: International: Expanding Global Presence
I NT ER NAT I ONAL Expanding Global Presence Disrupting global healthcare apparel with product innovation and powerful top of funnel marketing campaigns • Experienced record net revenues in International with 32%(1) year- over-year growth in Q2 2024 (accelerating from 29% year-over- year growth in Q
Slide 13: TEAMS: Serving Healthcare Institutions
T EAM S Serving Healthcare Institutions Serving hospitals, medical offices, and concierge clinics to professionalize and standardize their teams • Achieved record net revenues in TEAMS. • Enabled the full FIGS product assortment for our TEAMS customers, impacting over 2,000 organizations. • Launched
Slide 14: Retail: Creating Community Presence
R ET AI L Creating Community Presence Executing a retail strategy that enables healthcare professionals to connect with FIGS and their peers • Continued strong performance from our Westfield Century City Community Hub with more than 40% of transactions from customers who are new to our brand. • Trac
Slide 15: Why FIGS?
W H Y FIG S? Large Industry Sector with Strong Long Sustainable Differentiators Term Growth Fundamentals • Largely non-discretionary, recession-resistant, and replenishment-driven • Authentic, category-defining brand with deeply passionate, loyal community industry with 22 million workers in the U.S
Slide 16: Financials
Financials EARNINGS 16 PRESENTATION
Slide 17: Q2 2024 Net Revenues
Q 2 2024 N E T R E V E N UE S (IN MIL L ION S ) SCRUBWEAR / NON-SCRUBWEAR $600 18% $545.6 $505.8 $500 +13% YOY $419.6 82% $400 Scrubwear Non-Scrubwear $300 $263.1 US / INTERNATIONAL (1) $200 +4.4% YOY 13% $138.1 $144.2 $100 +32% YOY $0 87% FY'20 FY'21 FY'22 FY'23 Q2'23 Q2'24 U.S. International EARNI
Slide 18: Q2 2024 Gross Margin
Q 2 2024 G R OS S M AR G IN 73% 72.3% 71.8% 71% 70.1% The decline in gross margin 69.5% 69.3% compared to Q2 2023 was 69% primarily from product mix shift related to outperformance of limited edition scrubwear and 67.4% limited edition non-scrubwear. 67% 65% FY'20 FY'21 FY'22 FY'23 Q2'23 Q2'24 EARNI
Slide 19: Q2 2024 Operating Expense
Q 2 2024 OPE R A TING E X PE N SE 70% 64.7% 66.4% The increase in selling expense as a percentage of net 60% revenues was primarily due to transitory expenses 25.6% associated with the transition to our new fulfillment 24.4% 50% center. 40% The increase in marketing expenses as a percentage of 15.1%
Slide 20: Q2 2024 Profitability
Q 2 2024 PR OFIT ABIL IT Y Net Income (Loss) Margin (% OF N E T R E V E N U E S ) 6% 4.2% 4.1% 3% 3.4% 0.8% 0% -2.3% -3% FY'21 FY'22 FY'23 Q2'23 Q2'24 Adjusted EBITDA Margin (1) (% OF N E T R E V E N U E S ) 30% 25.1% 20% 17.2% 15.8% 13.7% 10% 9.0% 0% FY'21 FY'22 FY'23 Q2'23 Q2'24 (1) Adjusted EBITD
Slide 21: Q2 2024 Balance Sheet and Cash Flow Results
Q 2 2024 BAL A N C E S H E E T AN D C A SH FL OW R E S UL TS Cash, Cash Equivalents & Short-Term Investments Cash Flow Changes (AS OF J U N E 30, 2024) (FOR T HE YT D P ERI OD EN DED J U N E 3 0 . 2 0 2 4 ) $26.0 -$0.3 -$9.5 $268.5 $3.1 $268.5 $246.7 $2.5 ( $ IN M ILLION S, U N A U D ITED ) ( $ IN M
Slide 22: Full Year 2024 Outlook
Full Year 2024 Outlook N ET REVEN U ES GR OWT H VS . 2 02 3 “ Our strong second quarter performance shows that our investments are paying off. Both net revenues and adjusted EBITDA margin exceeded our outlook, and we saw continued momentum in the business, including a positive year-over-year repeat
Slide 23: Appendix
Appendix EARNINGS 23 PRESENTATION
Slide 24: Non-GAAP Financial Measures and Key Operating Metrics
N ON - GAAP F IN AN CIAL MEAS U RES AN D K EY OP ER AT IN G MET RICS 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 C
Slide 25: Non-GAAP Financial Measures and Key Operating Metrics (cont.)
N ON - GAAP F IN AN CIAL MEAS U RES AN D K EY OP ER AT IN G MET RICS (CON T .) 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 inco
Slide 26: Non-GAAP Financial Measures and Key Operating Metrics (cont.)
N ON - GAAP F IN AN CIAL MEAS U RES AN D K EY OP ER AT IN G MET RICS (CON T .) 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