Slide 1: Q4 & FY 2022 Financial Highlights
Q4 & FY 2022 FINANCIAL HIGHLIGHTS February 23, 2023
Slide 2: Note on Forward-Looking Statements
PAGE 2 Note on Forward-Looking Statements This presentation contains forward-looking statements as defined 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
Slide 3: Q4 2022 Summary
PAGE Q4 2022 SUMMARY 3 NET SALES ($MM) GROSS MARGIN $259.2 $239.8 56.0% 54.8% 52.9% 51.4% $147.6 $140.8 +8% YoY 21% 3-Year (339 BPs) YoY CAGR Q4 19 Q4 20 Q4 21 Q4 22 Q4 19 Q4 20 Q4 21 Q4 22 NET INCOME ($MM) ADJUSTED EBITDA(1) ($MM) $29.4 $34.2 $19.0 (73%) YoY $18.7 $7.9 $13.7 $14.1 $8.4 Note: tax ra
Slide 4: Net Sales by Segment and Geography
PAGE NET SALES BY SEGMENT AND GEOGRAPHY 4 YoY GROWTH IN YoY GROWTH IN NET SALES BY GEOGRAPHY Q4 2022 NET SALES Q4 2022 NET SALES IN Q4 2022 BY SEGMENT BY GEOGRAPHY 16% 84% + 9% + 9% + 5% + 1% U.S. REVOLVE FWRD U.S. INTERNATIONAL INTERNATIONAL
Slide 5: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 5 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE(1) (TRAILING 12 MONTHS) 2,340 +27% YoY 1,954 $306 $282 $292 1,755 $274 1,840 $256 1,488 1,472 1,092 954 1,023 1,175 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Q4 18 Q4 19
Slide 6: Segment Results
PAGE SEGMENT RESULTS 6 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) +9% YoY +5% YoY +3% YoY 80% (7%) YoY 90.0% $250 20% 3-Year CAGR 23% 3-Year CAGR $240 $150 $230 $140 $217.1 70% $220 80.0% $210 % of segment net sales $130 $200.0 $200 58% $120 57% 60% $190 $180 54% $110 70.0% $170 54% 55% 57%
Slide 7: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 7 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 11.8% 13.3% 13.3% 14.3% 7.2% 9.3% 4.1% 5.5% Q4 19 Q4 20 Q4 21 Q4 22 Q4 19 Q4 20 Q4 21 Q4 22 AS A % OF NET SALES Q4 22 Q4 21 CHANGE OBSERVATIONS Primarily reflects a lower mix of full price sales and deeper markdo
Slide 8: Earnings Per Share and Income Before Income Taxes
PAGE EARNINGS PER SHARE 8 INCOME BEFORE THE EPS MATH INCOME TAXES ($MM) (000s, except per share figures and percentages) Q4 22 Q4 21 YoY FY 22 FY 21 YoY $104.7 Income before income taxes $10,366 $31,712 (67%) $76,616 $104,728 (26%) $76.6 $60.1 Provision for income taxes 2,498 2,330 7% 17,919 4,888 2
Slide 9: Full Year 2022 Results and Balance Sheet Highlights
FULL YEAR 2022 RESULTS AND BALANCE SHEET HIGHLIGHTS
Slide 10: Full Year P&L Highlights
PAGE FULL YEAR P&L HIGHLIGHTS 10 NET SALES ($MM) NET INCOME ($MM) ADJUSTED EBITDA ($MM) +24% YoY (41%) YoY (21%) YoY 22% 3-Year CAGR 18% 3-Year CAGR 18% 3-Year CAGR $1,101.4 $891.4 $114.6 $99.8 $90.2 $601.0 $580.6 $498.7 $69.3 $56.8 $58.7 $55.6 $399.6 $46.5 $35.7 $30.6 $28.4 $5.0 2017 2018 2019 2020
Slide 11: Active Customers
PAGE ACTIVE CUSTOMERS 11 YoY GROWTH IN ACTIVE CUSTOMERS, NET (000) YoY GROWTH RATE IN ACTIVE CUSTOMERS Highest ever growth 500 368 40% 333 313 27% 25% 27% 18% 130 (16) (1%) 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
Slide 12: Full Year Metrics Disclosure
PAGE FULL YEAR METRICS DISCLOSURE(1) 12 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% 77% $717 75% $690 $653 $642 $636 36% $592 31% 27% $270 $258 $256 $279 22% $248 20% 20% $217 2017 2018 2019 2020 2021 2022 20
Slide 13: Full Year Metrics Disclosure: Pre-Existing Customers
PAGE FULL YEAR METRICS DISCLOSURE 13 RETENTION OF PRE-EXISTING COHORT NET SALES(1) LOYALTY + POWER OF PRE-EXISTING CUSTOMERS (existing customers are customers who have bought from us in any prior year) Strong sales retention in 2022 above historical trend RECOVERY Pre-Existing Customers 120% 8 PTS H
Slide 14: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 14 NET CASH PROVIDED BY ($MM) FREE CASH FLOW(1) ($MM) CASH & CASH EQUIVALENTS OPERATING ACTIVITIES (AT YEAR END) ($MM) (62%) YoY (70%) YoY +7% YoY NOTE: Cash tax payments were $20 MM higher YoY in 2022 $234.7 $218.5 $73.8 $71.4 $62.3 $60.1 $146.0 $46.1 $33
Slide 15: Balance Sheet Highlights
PAGE BALANCE SHEET HIGHLIGHTS 15 INVENTORY ($MM) YoY SALES GROWTH % MINUS YoY INVENTORY GROWTH % +1% QoQ, +26% YoY Progress towards balancing inventory Growth in inventory slowed YoY and QoQ Spread reduced 31 pts in 2 quarters $208.5 $213.3 $215.2 $179.2 $171.3 (9%) $141.8 (18%) $118.8 (20%) $100.5
Slide 16: Build Up of Free Cash Flow in 2022
PAGE BUILD UP OF FREE CASH FLOW IN 2022 16 $100 $75 + $8.8 ($44.0) $58.7 $ Millions $50 $25 ($5.2) $18.3 $0 Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 17: Full Year Segment Results
PAGE FULL YEAR SEGMENT RESULTS 17 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) $1,100.0 80% 1100 160% +24% YoY +23% YoY +22% YoY +12% YoY 1090 1080 1070 1060 1050 1040 1030 1020 1010 $1,000.0 1000 990 20% 3-Year CAGR 35% 3-Year CAGR 980 $921.7 970 70% 960 950 940 930 140% 920 910 $900.0 900 89
Slide 18: Upcoming Investor Conference
UPCOMING INVESTOR CONFERENCE BofA SECURITIES 2023 CONSUMER AND RETAIL CONFERENCE • MARCH 14, 2023
Slide 19: Appendix: Definitions and Reconciliations
PAGE PAGE 19 19 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 20: GAAP to Non-GAAP Reconciliation – Income Statement
PAGE GAAP TO NON-GAAP RECONCILIATION – INCOME STATEMENT 20 ADJUSTED EBITDA ($MM) (1) Q4 2019 Q4 2020 Q4 2021 Q4 2022 NET INCOME $8.4 $19.0 $29.4 $7.9 (+) OTHER EXPENSE, NET 0.3 0.7 0.2 0.3 (+) PROVISION FOR (BENEFIT FROM) INCOME TAXES 2.0 (3.0) 2.3 2.5 (+) DEPRECIATION AND AMORTIZATION 1.2 1.2 1.1 1
Slide 21: GAAP to Non-GAAP Reconciliation – Full Year
PAGE GAAP TO NON-GAAP RECONCILIATION – FULL YEAR 21 ADJUSTED EBITDA ($MM) (1) 2017 2018 2019 2020 2021 2022 NET INCOME $5.0 $30.6 $35.7 $56.8 $99.8 $58.7 (+) OTHER EXPENSE (INCOME), NET 1.4 0.6 0.9 1.0 0.6 (3.5) (+) PROVISION FOR INCOME TAXES 14.1 10.5 11.5 3.3 4.9 17.9 (+) DEPRECIATION AND AMORTIZA
Slide 22: Metrics Definitions
PAGE METRICS DEFINITIONS 22 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