Slide 1: Q2 2023 Earnings Presentation
Q2 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
OUR MISSION To celebrate, empower & DION T., PHARMD SASHA I., FUTURE DENTIST serve those who serve others CARLO C.P., CPO MICHELLE H., BSN, RN
Slide 4: Financial Performance at a Glance
Financial Performance at a Glance NET REVENUES GROSS MARGIN NET INCOME ADJ. EBITDA MARGIN(1) Q2 2023 $138.1M 69.5% $4.6M 13.7% +13% YoY (110 bps) YoY (6%) YoY (3.9) ppts YoY $258.4M 70.3% $6.5M 13.5% H1 2023 +11% YoY (60 bps) YoY (53%) YoY (6.5) ppts YoY (1) Adjusted EBITDA margin is a non-GAAP finan
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) +21% YoY +6% YoY (5%) YoY (unaudited) 2022 2023 2022 2023 2022 2023 Efficient marketing spend drove new customer growth; expansion
Slide 6: Product Innovation
Product Innovation Solutions-based product engineering combines technical functionality with comfort and style Outerwear, our second largest category, expands with the introductions of Page and Reed scrub jackets - featuring interior ribbed cuffs, an adjustable waist bungee and eight pockets FIGS ou
Slide 7: Build and Connect with Healthcare Community
Build and Connect with Healthcare Community Celebrating our healthcare community during another record Nurses Week
Slide 8: Expand Presence: International
Expand Presence International ● International net revenues grew 52% YoY in Q2 2023 ● Localization strategies such as Ambassador events and translations drove strong new customer acquisition ● Made FIGS available in new high-demand markets with no incremental investment where performance far MEXICO P
Slide 9: Expand Presence: TEAMS
Expand Presence TEAMS ● Setting the stage for highly profitable growth opportunity ○ Potential to access the approximately 15% of U.S. healthcare professionals who receive scrubs through their institutions ○ Global opportunity even larger and virtually untapped ● Building on early success with health
Slide 10: Expand Presence: Retail
Expand Presence Retail ● Store in Century City Shopping Center in Los Angeles on track to open September 2023 ● Signed lease for 4,000 square for Philadelphia scheduled to open in the first half of 2024 ○ Located within two miles of five healthcare institutions ○ A leader in healthcare education, one
Slide 11: Advancing Strategic Priorities
Advancing Strategic Priorities ● Product Innovation ○ Expand FIGS layering system with solutions-based innovation across technical features, new fabrications, styles and categories ● Build and Deepen Connection with Community ○ Drive awareness and engagement through brand and performance marketing ○
Slide 12: Advocacy and Giving Back
Advocacy and Giving Back We furthered our commitment to supporting the healthcare community with the launch of our first-of-its-kind FIGS Advocacy Hub – an online experience for our community to learn about the most important policy developments affecting them, and where they can advocate for real ch
Slide 13: Financials
OFIGS Financials
Slide 14: Q2 2023 Revenues Results
Q2 2023 Revenues Results Net Revenues Q2 2023 Net Revenues Mix ($ in millions) (% of total revenues) SCRUBWEAR / US / NON-SCRUBWEAR INTERNATIONAL +13% +52% YoY +25% YoY YoY Net revenues growth was driven by an increase in orders and AOV
Slide 15: Q2 2023 Gross Margin
Q2 2023 Gross Margin ● Gross margin decrease in Q2 was primarily related to product mix shift, and to a lesser extent, increased duties and a higher mix of promotional sales, partially offset by lower air freight utilization and ocean freight rates Strong gross margin sustained despite headwinds
Slide 16: Q2 2023 Operating Expense
Q2 2023 Operating Expense ● The increase in selling expense as a percentage of net revenues was primarily driven by higher fulfillment 62.8% 64.7% expenses, due to increased storage costs and, to a lesser extent, the impact from international duty subsidies. ● The decrease in marketing expense as a p
Slide 17: Q2 2023 Profitability
Q2 2023 Profitability Net Income (Loss) Margin (% of net revenues) Adjusted EBITDA Margin(1) (% of net 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 measu
Slide 18: Q2 2023 Balance Sheet / Cash Flow Results
Q2 2023 Balance Sheet / Cash Flow Results Cash, Cash Equivalents Cash Flow Changes YTD 2023 & Short-Term Investments (for the YTD period ended June 30, 2023) (as of June 30, 2023) ($ in millions, unaudited) Free Cash Flow(1) $24.9 Strong debt-free balance sheet and resumption of positive free cash fl
Slide 19: 2023 Full Year Outlook
2023 Full Year Outlook Net Revenues growth vs. 2022: 5.5% to 7.5% Adjusted EBITDA Margin(1): 12.5% to 13.5% (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 una
Slide 20: Appendix
OFIGS Appendix
Slide 21: 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 22: 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 i
Slide 23: 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