Revolve Group, Inc. · NYSE:RVLV
Revolve — Q4 2020 Earnings Presentation
18 slides from Revolve's earnings presentation, Feb 24, 2021
Slide 1: Q4 and FY 2020 Financial Highlights
Q4 AND FY 2020 FINANCIAL HIGHLIGHTS February 24, 2021
Slide 2: Note on Forward-Looking Statements
PAGE PAGE 2 1 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 regarding our expectations around the continued impact of the COVID-19 pand
Slide 3: Full Year 2020 Highlights
PAGE PAGE 3 3 FULL YEAR 2020 HIGHLIGHTS
Slide 4: Full Year 2020 Highlights: P&L
PAGE FULL YEAR 2020 HIGHLIGHTS: P&L PAGE (YoY comparisons skewed by COVID-19 impact in 2020) 4 1 4 NET SALES ($MM) NET INCOME ($MM) ADJ. EBITDA ($MM) (1) (3%) YoY $601 $581 $499 $400 +25% YoY $312 +59% YoY $69 $57 $56 $46 $31 $36 $28 $5 $10 $2 2016 (3%) 2017 2018YoY 2019 2020 2016 +59% 2017 YoY 2018
Slide 5: Full Year 2020 Highlights: Cash Flow and Balance Sheet
PAGE FULL YEAR 2020 HIGHLIGHTS: CASH FLOW AND BALANCE SHEET PAGE (YoY comparisons skewed by COVID-19 impact in 2020) 5 1 5 NET CASH PROVIDED BY ($MM) FREE CASH FLOW ($MM) (1) CASH AND ($MM) OPERATING ACTIVITIES CASH EQUIVALENTS +123% YoY $146 +60% YoY +113% YoY $74 $71 $46 $65 $27 $34 $16 $24 $14 $1
Slide 6: Full Year 2020 Metrics Disclosure
PAGE PAGE FULL YEAR 2020 METRICS DISCLOSURE(1) (YoY comparisons skewed by COVID-19 impact in 2020) 6 1 6 OWNED BRAND NET SALES AS % NET SALES AT FULL PRICE(2) AVERAGE ORDER VALUE (AOV)(3) OF REVOLVE SEGMENT NET SALES YoY decrease in AOV in 2020 was primarily due to a COVID-19 driven shift in product
Slide 7: Full Year 2020 GAAP Cost Structure
FULL YEAR 2020 GAAP COST STRUCTURE PAGE PAGE (YoY comparisons skewed by COVID-19 impact in 2020) 7 1 7 FULL YEAR COSTS YoY OBSERVATIONS: AS A % OF NET SALES CHANGE Cost of Sales: cost of sales deleverage was due to a YoY decline in gross margin 46.4% 47.4% +99 BPs in the first half of 2020, partiall
Slide 8: Full Year 2020 Segment Results
FULL YEAR 2020 SEGMENT RESULTS PAGE PAGE (YoY Comparisons Skewed by COVID-19 Impact in 2020) 8 1 8 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) 2017 2018 2019 2020 2017 2018 2019 2020 Down (5%) YoY $527.3 $500.9 $433.5 $330.6 Down (7%) YoY $292.0 $272.0 $241.1 $169.1 Up 8% YoY Up 11% YoY $69.0
Slide 9: Fourth Quarter Highlights
PAGE PAGE 9 1 9 FOURTH QUARTER HIGHLIGHTS
Slide 10: Q4 2020 Highlights: P&L
PAGE PAGE Q4 2020 HIGHLIGHTS: P&L (YoY comparisons skewed by COVID-19 impact in 2020) 10 10 1 GROSS MARGIN NET INCOME(1) ($MM) ADJUSTED EBITDA(2) ($MM) +37% YoY +126% YoY $19.0 $18.7 +305 BPs YoY $13.7 $8.4 56.0% 52.9% Q4 2019 Q4 2020 Q4 2019 Q4 2020 DILUTED EPS(1) ADJ. EBITDA MARGIN(2) +117% YoY $0
Slide 11: Q4 2020 Highlights: Net Sales
PAGE PAGE Q4 2020 HIGHLIGHTS: NET SALES (YoY comparisons skewed by COVID-19 impact in 2020 and Q1 2021) 11 11 1 TOP LINE COMPARISONS IMPROVED NET SALES ($MM) SINCE Q3 2020 EARNINGS CALL YoY Growth (Decline) in Net Sales (5%) YoY $147.6 Low Single Digit $140.8 YoY Increase (5%) High Single Digit YoY
Slide 12: Q4 2020 Highlights: Net Sales by Geography
PAGE PAGE Q4 2020 HIGHLIGHTS: NET SALES BY GEOGRAPHY (YoY comparisons skewed by COVID-19 impact in 2020) 12 12 1 YOY GROWTH (DECLINE) INTERNATIONAL MIX OF TOTAL NET SALES IN NET SALES IN Q4 2020 Q4 2019 Q4 2020 + 24% 17% 22% (10%) INTERNATIONAL NET SALES U.S. International U.S. NET SALES
Slide 13: Q4 2020 GAAP Cost Structure
PAGE Q4 2020 GAAP COST STRUCTURE PAGE (YoY comparisons skewed by COVID-19 impact in 2020) 13 13 1 Q4 COSTS YoY AS A % OF NET SALES OBSERVATIONS: CHANGE 47.1% Cost of Sales: cost of sales leverage was primarily due to a healthier inventory 44.0% Cost of Sales (305 BPs) composition that contributed to
Slide 14: Q4 2020 Operating Metrics Highlights
PAGE PAGE Q4 2020 OPERATING METRICS HIGHLIGHTS (YoY comparisons skewed by COVID-19 impact in 2020) 14 14 1 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE (AOV)(1) (TRAILING 12 MONTHS) $282 1,488 1,472 $256 1,092 1,023 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 ACTI
Slide 15: Q4 2020 Segment Results
PAGE PAGE Q4 2020 SEGMENT RESULTS (YoY Comparisons Skewed by COVID-19 Impact in 2020) 15 15 1 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) 2017 2018 2019 2020 2017 2018 2019 2020 Down (5%) YoY $125.2 $118.9 $111.0 $83.8 Flat YoY $69.0 $68.7 $62.7 $45.3 Down (2%) YoY $22.3 Up 10% YoY $18.1 $21.
Slide 16: Upcoming Virtual Investor Conferences
PAGE PAGE 16 16 1 UPCOMING VIRTUAL INVESTOR CONFERENCES RAYMOND JAMES INSTITUTIONAL INVESTORS CONFERENCE • WEDNESDAY, MARCH 3 BOFA SECURITIES CONSUMER AND RETAIL CONFERENCE • WEDNESDAY, MARCH 10 ROTH 2021 ANNUAL CONFERENCE • TUESDAY, MARCH 16
Slide 17: Metrics Definitions
PAGE PAGE METRICS DEFINITIONS 17 17 1 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other expense (income), net, (benefit from) provision for income taxes, and depreciation and amortization, adjusted to exclude the effects of equit
Slide 18: GAAP to Non-GAAP Reconciliation
PAGE PAGE GAAP TO NON-GAAP RECONCILIATION (YoY comparisons skewed by COVID-19 impact in 2020) 18 18 1 ADJ. EBITDA ($MM) Q4 2020 Q4 2019 FY 2020 FY 2019 NET INCOME $19.0 $8.4 $56.8 $35.7 (+) OTHER EXPENSE, NET 0.7 0.3 1.0 0.9 (+) (BENEFIT) PROVISION FOR INCOME TAXES (3.0) 2.0 3.3 11.5 (+) DEPRECIATIO