Slide 1: Q4 and Full Year 2023 Earnings Presentation
Q4 and Full Year 2023 Earnings Presentation Luke Bennett, MD Elina Haukipuro, MD 1
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 & serve those who serve others
Slide 4: Financial Performance at a Glance
Financial Performance at a Glance NET REVENUES GROSS MARGIN NET INCOME ADJ. EBITDA MARGIN(1) Q4 2023 $144.9M 67.5% $10.0M 18.4% +0.0% YoY (70) bps YoY +194.9% YoY +480 bps YoY $545.6M 69.1% $22.6M 15.8% FY 2023 +8% YoY (100 bps) YoY +6.8% YoY (140 bps) YoY (1) Adjusted EBITDA margin is a non-GAAP fin
Slide 5: Key Operating Metrics
Key Operating Metrics Active Customers(1) Net Revenues Per Active (Trailing Twelve Months, in thousands) Customer(1) (Trailing Twelve Months) YoY +13% YoY (5%) (unaudited) 2023 2023 Q4 AOV(1) increased 4.5% YoY to $117 (1) Active customers, net revenues per active customer and AOV are key operationa
Slide 6: Full Year 2023 Highlights
Full Year 2023 Highlights ● Exceeded Adjusted EBITDA(1) expectations ● Growth across our layering system led by 18% increase in non-scrubwear revenue reflecting strength in footwear, outerwear, and underscrubs ● Delivered record net revenues in our International and TEAMS businesses ● Decreased inven
Slide 7: 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 ● Ele
Slide 8: Product Innovation
Product Innovation In 2023, we launched a number of innovative products and categories that solve real-world problems for healthcare professionals including (but not limited to): ● Rafaela ScrubJumpsuit™ ● ContourKnit Jacket ● Uman Jogger Franchise ● FIGS | New Balance ROAV ● Under Underscrubs™ ● Re
Slide 9: Build and Deepen Connection with Community
Build and Deepen Connection with Community Campaigns ● Showcased our innovation lab and technical products via our “Innovate Beyond Your Imagination” campaign ● Celebrated our Nurses with a fun and energetic Nurses Week campaign ● Showcased the real challenges, successes, and experiences of our heal
Slide 10: Build and Deepen Connection with Community: Advocacy Highlights
Build and Deepen Connection with Community 2023 Advocacy Highlights ● Advanced our Awesome Humans Bill priorities by submitting a detailed policy paper to the Senate, which informed much of what the Senate Committee ultimately proposed as legislation ● Created a first-of-its-kind Advocacy Hub to buil
Slide 11: Expand Presence: International
Expand Presence International ● Generated international net revenues growth of 9% YoY in Q4 2023 and 42% for 2023 ● Partnered with Everton Football Club of the English Premier League to celebrate healthcare professionals, including all those who serve athletes ● Refined localization strategies to del
Slide 12: Expand Presence: Community Hubs (Retail)
Expand Presence Community Hubs (Retail) ● First permanent Community Hub at Westfield Century City in Los Angeles drawing strong traffic ○ Highly encouraging early results demonstrates strong desire for in-person shopping experience ● Plan to open second location in Philadelphia (4,100 square feet) in
Slide 13: Expand Presence: TEAMS
Expand Presence TEAMS ● Delivered record growth YoY ● Successfully launched our TEAMS app open access to service organizations of any size ● Built a custom gifting platform for our largest TEAMS customer, enabling them to seamlessly give their 100k+ clinicians the gift of FIGS ● Continue to invest i
Slide 14: Why FIGS?
Why FIGS? Large Industry Sector with Strong Growth Fundamentals Sustainable Differentiators ● Largely non discretionary, recession-resistant and replenishment-driven ● Authentic, category-defining brand with deeply passionate, loyal industry with 22 million workers in the U.S.(1) community ● Creating
Slide 15: Financials
OFIGS Financials
Slide 16: Q4 and FY 2023 Revenue Results
Q4 and FY 2023 Revenue Results Net Revenues Q4 2023 Net Revenues Mix ($ in millions) (% of total revenues) +8% SCRUBWEAR / US / NON-SCRUBWEAR INTERNATIONAL YoY +0% YoY +9% +9% YoY YoY Results for Q4 and FY 2023 reflect an accounting reclassification between net revenues and selling expense related to
Slide 17: Q4 and FY 2023 Gross Margin
Q4 and FY 2023 Gross Margin ● The Reclassification negatively impacted Q4 gross margin by 100 basis points. Gross margin benefited from lower air freight utilization, improved ocean freight costs and a more favorable promotional mix, partially offset by product mix.
Slide 18: Q4 and FY 2023 Operating Expense
Q4 and FY 2023 Operating Expense Q4 Comparison Annual Comparison 66.0% 69.2% 57.7% 62.6% 62.8% (% of net revenues) ● The decrease in selling expense was primarily due to lower ● As a percentage of net revenues, operating expenses increased to warehouse storage and associated labors costs within fulfi
Slide 19: Q4 and FY 2023 Profitability
Q4 and FY 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 financia
Slide 20: 2023 Balance Sheet and Cash Flow Results
2023 Balance Sheet and Cash Flow Results Cash, Cash Equivalents Cash Flow Changes 2023 Year End & Short-Term Investments (for the YTD period ended December 31, 2023) (as of December 31, 2023) ($ in millions, unaudited) Free Cash Flow(1) $84.6 (1) Free cash flow is a non-GAAP financial measure. See “No
Slide 21: Initiates Full Year 2024 Outlook
Initiates Full Year 2024 Outlook “Looking back on 2023, we delivered strong growth and profitability, reduced inventory levels by 33% and generated $85 million in free cash Net Revenues growth vs. 2023: Down mid-single-digits to flat flow, while advancing a number of our growth Net Revenues growth vs.
Slide 22: Appendix
OFIGS Appendix
Slide 23: Non-GAAP Financial 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 24: Non-GAAP Financial 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 25: Non-GAAP Financial 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 Company bel