Slide 1: Q4 and FY 2023 Financial Highlights
Get New Picture REVOLVE Q2 2023 Financial Highlights August 2, 2023 Q4 and FY 2023 Financial Highlights February 27, 2024
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: Q4 2023 Summary
PAGE Q4 2023 SUMMARY 3 NET SALES GROSS MARGIN ($MM) $259.2 $257.8 $239.8 56.0% 54.8% 52.9% 51.4% 52.0% $147.6 $140.8 (1%) YoY + 57 BPs YoY 15% 4-Year First YoY increase CAGR in 6 quarters Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 NET INCOME ADJUSTED EBITDA(1) ($MM) ($MM) $29.4 $34.
Slide 4: Net Sales by Segment and Geography
PAGE NET SALES BY SEGMENT AND GEOGRAPHY 4 Q4 2023 NET SALES Q4 2023 NET SALES NET SALES MIX BY SEGMENT AND BY SEGMENT BY GEOGRAPHY GEOGRAPHY IN Q4 2023 ($MM) ($MM) + 1% YoY First YoY growth in 4 quarters (2%) YoY 85% 15% $217.1 $220.0 $218.0 $213.7 81% REVOLVE FWRD (10%) YoY + 7% YoY $42.0 $37.8 $41
Slide 5: Segment Results Over Time
PAGE SEGMENT RESULTS OVER TIME 5 SEGMENT NET SALES SEGMENT GROSS PROFIT ($MM) ($MM) 1% YoY (10%) YoY 4% YoY (25%) YoY 15% 4-Year CAGR 14% 4-Year CAGR $250 80% $150 90.00% $240 $230 $140 $217.1 $220.0 $220 % of segment net sales 70% 80.00% $130 $210 $200.0 $200 58% $120 $190 57% 55% 60% $180 54% $110
Slide 6: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 6 ACTIVE CUSTOMERS(1) TOTAL ORDERS PLACED(1) AVERAGE ORDER VALUE(1) (TRAILING 12 MONTHS, in 000s) (000s) +9% YoY 2,543 2,340 $306 $303 $282 $292 1,840 1,954 2,022 $256 1,488 1,755 1,472 1,092 1,023 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 19 Q4
Slide 7: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 7 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 14.3% 13.3% 13.3% 11.8% 9.3% 7.2% 5.5% 4.1% 3.3% 0.9% Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 AS A % OF NET SALES Q4 23 Q4 22 CHANGE OBSERVATIONS Primarily reflects a higher mix of net sales a
Slide 8: Earnings Per Share
PAGE EARNINGS PER SHARE 8 THE EPS MATH (000s, except per share figures and percentages) Q4 23 Q4 22 YoY Q4 DILUTED EPS Income before income taxes $4,876 $10,366 (53%) $0.39 Provision for income taxes (1,382) (2,498) (45%) Effective tax rate 28% 24% 4 pts $0.26 Net income (GAAP) $3,494 $7,868 (56%) $
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) + 85% YoY + 114% YoY 17% 6-Year CAGR 18% 6-Year CAGR $71 $74 $60 $62 $46 $43 $39 $34 Average of 0.6% of Net Sales $27 $24 $23 $18 $16 $14 $12.5 $3.0 $5.2 $4.2
Slide 10: Stock Repurchase and Balance Sheet Highlights
PAGE STOCK REPURCHASE AND BALANCE SHEET HIGHLIGHTS 10 STOCK REPURCHASE ACTIVITY IN 2023(1) CASH & CASH EQUIVALENTS, NET ($MM) ($MM) +$11M, +5% YoY ($21M), or (8%) QoQ +$180M, >3X vs. Q4 2019 $267 $245 $245 Repurchased 1,291,635 shares $69.4 $235 $218 of Class A common stock during Q4 2023 at an aver
Slide 11: Balance Sheet Highlights
PAGE BALANCE SHEET HIGHLIGHTS 11 INVENTORY YoY SALES GROWTH % MINUS YoY INVENTORY GROWTH % ($MM) Inventory Declined 5% YoY $209 $213 $215 $205 $203 $204 5% $190 1% $179 $171 (4%) $142 (7%) (9%) $119 $101 (20%) (18%) (40%) (49%) Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23
Slide 12: Build Up of Free Cash Flow in FY 2023
PAGE BUILD UP OF FREE CASH FLOW IN FY 2023 12 + $11.6 $39.1 $ Millions ($4.2 ) + $3.6 $28.1 Net Income Other Working Capital Decrease in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 13: Full Year P&L Highlights
PAGE FULL YEAR P&L HIGHLIGHTS 13 NET SALES ($MM) NET INCOME ($MM) ADJUSTED EBITDA ($MM) (3%) YoY (52%) YoY (52%) YoY 15% 4-Year CAGR $1,101 $1,069 $891 $115 $100 $90 $601 $581 $499 $69 $57 $59 $56 $400 $46 $43 $36 $31 $28 $28 $5 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2
Slide 14: Full Year Segment Results
PAGE FULL YEAR SEGMENT RESULTS 14 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) (2%) YoY (9%) YoY $1,200.0 (4%) YoY 80% 1200 1190 1180 1170 1160 1150 1140 1130 (20%) YoY 160% 1120 1110 $1,100.0 1100 14% 4-Year CAGR 22% 4-Year CAGR 1090 1080 1070 1060 70% 1050 140% 1040 1030 1020 1010 $1,000.0 1
Slide 15: Full Year Metrics Disclosure
PAGE FULL YEAR METRICS DISCLOSURE(1) 15 OWNED BRAND NET SALES AS % NET SALES AT FULL PRICE(2) AVERAGE ORDER VALUE (AOV) OF REVOLVE SEGMENT NET SALES BY SEGMENT 87% 85% 79% 79% 79% 77% $717 75% $690 $692 $653 $642 $636 36% $592 31% 27% $270 $258 $256 $279 $274 22% $248 20% 20% 20% $217 2017 2018 2019
Slide 16: Appendix: Definitions and Reconciliations
PAGE PAGE 16 16 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 17: Upcoming Investor Conferences
UPCOMING INVESTOR CONFERENCES RAYMOND JAMES INSTITUTIONAL INVESTORS CONFERENCE • MARCH 5, 2024 BofA SECURITIES CONSUMER & RETAIL CONFERENCE • MARCH 12, 2024
Slide 18: GAAP to Non-GAAP Reconciliation
PAGE GAAP TO NON-GAAP RECONCILIATION 18 ADJUSTED EBITDA ($MM) (1) Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 NET INCOME $8.4 $19.0 $29.4 $7.9 $3.5 (+) OTHER EXPENSE (INCOME), NET 0.3 0.7 0.2 0.3 (2.7) (+) PROVISION FOR (BENEFIT FROM) INCOME TAXES 2.0 (3.0) 2.3 2.5 1.4 (+) DEPRECIATION AND AMORTIZATION
Slide 19: GAAP to Non-GAAP Reconciliation – Full Year
PAGE GAAP TO NON-GAAP RECONCILIATION – FULL YEAR 19 ADJUSTED EBITDA ($MM) (1) 2017 2018 2019 2020 2021 2022 2023 NET INCOME $5.0 $30.6 $35.7 $56.8 $99.8 $58.7 $28.1 (+) OTHER EXPENSE (INCOME), NET 1.4 0.6 0.9 1.0 0.6 (3.5) (15.6) (+) PROVISION FOR INCOME TAXES 14.1 10.5 11.5 3.3 4.9 17.9 9.6 (+) DEP
Slide 20: Metrics Definitions
PAGE METRICS DEFINITIONS 20 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