Revolve Group, Inc. · NYSE:RVLV
Revolve — Q3 2019 Earnings Presentation
14 slides from Revolve's earnings presentation, Nov 7, 2019
Slide 1: Q3 2019 Results
THE ANALYST DAY PRESENTATION 2018 Q3 2019 RESULTS November 7, 2019
Slide 2: Note on Forward-Looking Statements
PAGE 2 Note on Forward-Looking Statements Information in this presentation contains forward-looking statements as defined within the meaning of U.S. federal securities laws, including, but not limited to, statements about REVOLVE and the environment in which REVOLVE operates, including statements re
Slide 3: Third Quarter 2019 Results Headlines
PAGE THIRD QUARTER 2019 RESULTS HEADLINES 3 TOTAL NET SALES GREW 22% YoY, DRIVEN BY A 24% INCREASE IN REVOLVE SEGMENT NET SALES FORWARD SEGMENT NET SALES INCREASED 14% YoY; 2nd CONSECUTIVE QUARTER OF DOUBLE-DIGIT GROWTH CONSOLIDATED GROSS MARGIN UP 90 BASIS POINTS YoY NET INCOME UP 34% YoY, ADJ. EBI
Slide 4: Income Statement Highlights
PAGE INCOME STATEMENT HIGHLIGHTS 4 NET SALES ($MM) GROSS MARGIN NET INCOME ($MM) ADJUSTED EBITDA(1) ($MM) % ADJ. EBITDA MARGIN + 22.5% YoY + 90 BPs YoY + 34% YoY + 40% YoY $154.2 $14.4 $9.6 $125.9 $10.3 53.6% 52.7% $7.1 +120 BPs YoY 9.4% 8.2% Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q
Slide 5: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 5 (1) NET CASH PROVIDED BY FREE CASH FLOW ($MM) CASH ON OPERATING ACTIVITIES ($MM) BALANCE SHEET ($MM) ~$10M CapEx investment in 2019 to consolidate five fulfillment centers into one newly-modernized center + 14% QoQ $51.1 $31.8 $28.0 $44.8 $26.4 $20.4 $9.
Slide 6: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 6 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE(1) (TRAILING 12 MONTHS) +33% YoY (1.8%) YoY 1,438 + 26% YoY $280 $275 1,080 1,194 950 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Note: 1. See slide 13 for a definition of Active Cust
Slide 7: Active Customers Quarterly Trend
PAGE ACTIVE CUSTOMERS QUARTERLY TREND 7 ACTIVE CUSTOMERS (000s) (TRAILING 12 MONTHS) 1,438 1,359 1,262 1,175 1,080 998 904 842 793 713 746 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19
Slide 8: GAAP Cost Structure
PAGE GAAP COST STRUCTURE 8 AS A % OF NET SALES YoY CHANGE 12.9% 12.3% (60 BPs) 15.1% 15.0% (10 BPs) 14.5% 14.6% +10 BPs 2.6% 3.3% +70 BPs 47.3% 46.4% (90 BPs) Q3 2018 Q3 2019
Slide 9: Segment Net Sales
PAGE SEGMENT NET SALES 9 REVOLVE SEGMENT NET SALES ($MM) FORWARD SEGMENT NET SALES ($MM) 2017 2018 2019 2017 2018 2019 Q3 2019 Up 24% YoY $143.9 $135.4 $122.7 $116.1 Q3 2019 Up 14% YoY $109.5 $111.0 $97.0 $90.4 $82.2 $83.8 $74.1 $18.8 $18.0 $18.1 $17.5 $17.3 $16.4 $16.8 $16.1 $16.3 $15.7 $14.7 Q1 Q2
Slide 10: Segment Gross Profit
PAGE SEGMENT GROSS PROFIT 10 REVOLVE SEGMENT GROSS PROFIT ($MM) FORWARD SEGMENT GROSS PROFIT ($MM) 2017 2018 2019 2017 2018 2019 Q3 2019 Up 22% YoY $82.8 $75.0 $65.3 $66.5 $62.7 $61.2 $50.6 $48.0 Q3 2019 Up 49% YoY $45.3 $41.7 $34.0 $6.9 $7.6 $7.7 $7.3 $6.6 $6.4 $5.8 $5.5 $5.9 $4.8 $5.1 Q1 Q2 Q3 Q4
Slide 11: Net Sales by Geography
PAGE NET SALES BY GEOGRAPHY 11 INTERNATIONAL INTERNATIONAL NET SALES NET SALES MIX: Q3 2019 GROWTH IN Q3 • UK and Western Europe remained solid +15% YoY • Improved YoY growth in Australia KEY PERFORMANCE DRIVERS • Stabilization in Greater China during Q3 17% ($MM) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1
Slide 12: Upcoming Investor Conferences
PAGE UPCOMING INVESTOR CONFERENCES 12 MORGAN STANLEY CONSUMER AND RETAIL CONFERENCE WEDNESDAY, DECEMBER 4 BARCLAYS GLOBAL TMT CONFERENCE THURSDAY, DECEMBER 12
Slide 13: Metrics Definitions
PAGE METRICS DEFINITIONS 13 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other expense, net, taxes, depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, and certain one-time expenses
Slide 14: GAAP to Non-GAAP Reconciliation
PAGE GAAP TO NON-GAAP RECONCILIATION 14 ADJ. EBITDA ($MM) Q3 2019 Q3 2018 9 MOS 2019 9 MOS 2018 NET INCOME $9.6 $7.1 $27.3 $22.9 (+) OTHER (INCOME) EXPENSE, NET (0) 0.2 0.7 0.5 (+) PROVISION FOR INCOME TAXES 3.3 2.2 9.5 7.7 (+) DEPRECIATION AND AMORTIZATION 1.1 0.8 2.7 2.2 (+) EQUITY-BASED COMPENSAT