Revolve Group, Inc. · NYSE:RVLV
Revolve — Q1 2021 Earnings Presentation
19 slides from Revolve's earnings presentation, May 6, 2021
Slide 1: Q1 2021 Financial Highlights
Q1 2021 FINANCIAL HIGHLIGHTS May 6, 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: Q1 2021 Summary
PAGE PAGE Q1 2021 SUMMARY 3 1 3 NET SALES ($MM) GROSS MARGIN NET INCOME ($MM) + 22% YoY + 546 BPs YoY Up ~5X YoY $178.9 $146.1 54.0% 48.6% $22.3 $4.2 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 ADJUSTED EBITDA (1) ($MM) FREE CASH FLOW (1) ($MM) CASH AND CASH EQUIVALENTS, NET OF BORROWINGS ($MM)
Slide 4: Net Sales by Geography
PAGE PAGE NET SALES BY GEOGRAPHY 4 1 4 INTERNATIONAL MIX OF TOTAL NET SALES YOY GROWTH IN NET SALES IN Q1 2021 Q1 2020 Q1 2021 38% 18% 20% 19% INTERNATIONAL NET SALES U.S. International U.S. NET SALES Broad-based growth in international with key contributors including Australia, Canada, Greater Chin
Slide 5: Cost and Margin Structure
PAGE PAGE COST AND MARGIN STRUCTURE 5 1 5 GAAP OPERATING ADJUSTED EBITDA INCOME MARGIN MARGIN(1) 11.9% 13.0% 5.0% 6.2% 2.6% 3.8% Q1 2019 Q1 2020 Q1 2021 Q1 2019 Q1 2020 Q1 2021 AS A % OF NET SALES Q1 2021 Q1 2020 CHANGE OBSERVATIONS Very healthy inventory as evidenced in part by strong full price Gr
Slide 6: Operating Metrics Highlights
PAGE PAGE OPERATING METRICS HIGHLIGHTS 6 1 6 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE (AOV)(1) (TRAILING 12 MONTHS) 1,528 1,282 $259 $256 1,477 1,172 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 QoQ GROWTH (000s) TOTAL ORDERS YOY TREND AOV YOY TREND 40 Flat 9%
Slide 7: Earnings Per Share: The EPS Math
PAGE PAGE EARNINGS PER SHARE 7 1 7 THE EPS MATH DILUTED EPS (000s, except per share figures) Q1 2021 Q1 2020 YoY % Income before income taxes $20,982 $3,981 427% + 400% YoY Benefit from income taxes (1,270) (175) N/A $0.30 Effective tax rate (6%) (4%) Net income (GAAP) $22,252 $4,156 435% Weighted a
Slide 8: Cash Flow and Balance Sheet
PAGE PAGE 8 8 CASH FLOW AND BALANCE SHEET
Slide 9: Multi-Year View of Q1 Cash Flow and Balance Sheet Highlights
PAGE PAGE MULTI-YEAR VIEW OF Q1 CASH FLOW AND BALANCE SHEET HIGHLIGHTS 9 1 9 NET CASH PROVIDED BY ($MM) FREE CASH FLOW ($MM) CASH & CASH EQUIVALENTS, OPERATING ACTIVITIES NET OF BORROWINGS ($MM) +149% YoY $182.9 +311% YoY +331% YoY $33.2 $32.5 $73.6 $15.9 $12.2 $9.0 $8.1 $11.7 $10.9 $27.2 $8.2 $7.5
Slide 10: Inventory Efficiency and Improved Turns a Key Driver of Cash Flow
PAGE PAGE INVENTORY EFFICIENCY AND IMPROVED TURNS A KEY DRIVER OF CASH FLOW 10 10 1 INVENTORY BALANCE YOY GROWTH IN NET SALES IN Q1 ($MM) INCREASED SEQUENTIALLY OUTPACED YOY GROWTH IN INVENTORY $101.4 $100.5 $95.3 $73.6 22% $64.5 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 (1%) YoY Decline YoY Growth in Inventory
Slide 11: Capital Efficiency a Key Driver of Cash Flow
PAGE PAGE CAPITAL EFFICIENCY A KEY DRIVER OF CASH FLOW 11 11 1 AVG. CAPEX % OF CAPITAL EXPENDITURES % OF NET SALES NET SALES SINCE 2016 2019 Fulfillment Center Investment 2.1% < 1% of Net Sales 1.0% 0.9% 0.6% 0.6% 0.4% 0.4% 2016 2017 2018 2019 2020 Q1 2021 2016 - 2021 Average
Slide 12: Build Up of Free Cash Flow in Q1 2021 ($MM)
PAGE PAGE BUILD UP OF FREE CASH FLOW IN Q1 2021 ($MM) 12 12 1 + $16.1 $32.5 ($5.2) ($0.7) $22.3 Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow
Slide 13: Segment Results
PAGE PAGE 13 13 1 SEGMENT RESULTS
Slide 14: Segment Results: Net Sales
PAGE PAGE SEGMENT RESULTS: NET SALES 14 14 1 REVOLVE SEGMENT NET SALES ($MM) FORWARD SEGMENT NET SALES ($MM) +22% YoY $152.2 $122.7 $124.5 $97.0 +24% YoY $74.1 $26.7 $21.6 $16.1 $16.3 $14.7 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21
Slide 15: Segment Results: Gross Profit
PAGE PAGE SEGMENT RESULTS: GROSS PROFIT 15 15 1 REVOLVE SEGMENT GROSS PROFIT ($MM) FORWARD SEGMENT GROSS PROFIT ($MM) +35% YoY $84.2 $65.3 $62.4 $50.6 +45% YoY $34.0 $12.5 $8.6 $5.8 $5.5 $4.8 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21
Slide 16: Upcoming Virtual Investor Conferences
PAGE PAGE 16 16 1 UPCOMING VIRTUAL INVESTOR CONFERENCES COWEN NEW RETAIL ECOSYSTEM CEO SUMMIT • WEDNESDAY, MAY 26 WILLIAM BLAIR GROWTH STOCK CONFERENCE • TUESDAY, JUNE 1 PIPER SANDLER CONSUMER MARKETPLACE CONFERENCE • THURSDAY, JUNE 3 BAIRD GLOBAL CONSUMER, TECHNOLOGY AND SERVICES CONFERENCE • WEDNE
Slide 17: Appendix: Definitions and Reconciliations
PAGE PAGE 17 17 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 18: Metrics Definitions
PAGE PAGE METRICS DEFINITIONS 18 18 1 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other expense (income), net, taxes, and depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, and ce
Slide 19: GAAP to Non-GAAP Reconciliation
PAGE PAGE GAAP TO NON-GAAP RECONCILIATION 19 19 1 ADJUSTED EBITDA ($MM) Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 NET INCOME $0.4 $5.3 $5.0 $4.2 $22.3 (+) OTHER EXPENSE (INCOME), NET 0.4 0.2 0.2 (0.1) 0.2 (+) PROVISION (BENEFIT) FOR INCOME TAXES 1.1 2.0 1.7 (0.2) (1.3) (+) DEPRECIATION AND AMORTIZATIO