Slide 1: Q3 2022 Financial Highlights
Q3 2022 FINANCIAL HIGHLIGHTS November 2, 2022
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, including statements regarding our expected future effective tax rate. Forward-looking statements include all statements that are not histori
Slide 3: Q3 2022 Summary
PAGE Q3 2022 SUMMARY 3 NET SALES ($MM) GROSS MARGIN $268.7 $244.1 53.6% 55.3% 55.1% 53.0% $154.2 $151.0 + 10% YoY (211 BPs) YoY 20% 3-Year CAGR (63 BPs) vs. Q3 19 Q3 19 Q3 20 Q3 21 Q3 22 Q3 19 Q3 20 Q3 21 Q3 22 NET INCOME ($MM) ADJUSTED EBITDA(1) ($MM) (28%) YoY +25% vs. Q3 19 $19.4 $16.7 $24.0 $21.
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 Q3 2022 NET SALES Q3 2022 NET SALES IN Q3 2022 BY SEGMENT BY GEOGRAPHY 19% 81% + 17% + 9% + 12% + 10% U.S. NET SALES REVOLVE FWRD U.S. INTERNATIONAL INTERNATIONAL NET SALES
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) 2,249 $320 + 34% YoY 1,951 1,830 $280 $275 $276 1,678 $232 1,438 1,504 1,194 1,141 950 1,080 Q3 18 Q3 19 Q3 20 Q3 21 Q3 22 Q3 18 Q3 19 Q3 20 Q3 21 Q3 22 Q3 18 Q3 1
Slide 6: Segment Results
PAGE SEGMENT RESULTS 6 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) + 9% YoY +17% YoY $250 + 7% YoY 80% $150 (3)% YoY 90.0% $240 $230 $140 $222.1 $220 70% 80.0% % of segment net sales $130 $204.2 $210 57.2% $200 $120 55.7% 60% $190 $180 55.9% $110 70.0% $170 55.4% 56.4% $100 $160 50% $150 50.8
Slide 7: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 7 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 14.4% 15.9% 8.3% 7.9% 9.4% 8.9% 5.5% 6.6% Q3 19 Q3 20 Q3 21 Q3 22 Q3 19 Q3 20 Q3 21 Q3 22 AS A % OF NET SALES Q3 22 Q3 21 CHANGE OBSERVATIONS Reflects a lower mix of full price sales year-over-year, consistent wi
Slide 8: Earnings Per Share
PAGE EARNINGS PER SHARE 8 Q3 INCOME BEFORE THE EPS MATH INCOME TAXES ($MM) (000s, except per share figures and percentages) Q3 22 Q3 21 YoY Income before income taxes $16,191 $19,369 (16%) $21.5 $19.4 Provision for income taxes 4,203 2,701 56% $16.2 $12.8 Effective tax rate 26% 14% 12 PTS Net income
Slide 9: Cash Flow and Balance Sheet
CASH FLOW AND BALANCE SHEET
Slide 10: Cash Flow Highlights
PAGE CASH FLOW HIGHLIGHTS 10 NET CASH PROVIDED BY FREE CASH FLOW(1) ($MM) ($MM) OPERATING ACTIVITIES Positive for all periods presented >6X YoY in Q3 2022 $74.4 $76.2 $66.6 $68.4 $34.5 $30.5 $31.8 $20.4 $14.3 $13.9 $9.2 $10.0 $7.4 $8.6 $1.9 $1.3 2019 2020 2021 2022 2019 2020 2021 2022 Third Quarter
Slide 11: Balance Sheet Highlights
PAGE BALANCE SHEET HIGHLIGHTS 11 INVENTORY CASH & CASH EQUIVALENTS, NET(1) ($MM) ($MM) Growth in inventory slowed YoY and QoQ +10% YoY ~5X in 3 Years $244.0 $213.3 $221.6 $208.5 $179.2 $171.3 $141.8 $143.7 $118.8 $100.5 $51.1 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q3 19 Q3 20 Q3 21 Q3 22 Note: 1.
Slide 12: Build Up of Free Cash Flow in 9 Months Ended September 30, 2022
PAGE BUILD UP OF FREE CASH FLOW IN 9 MONTHS ENDED SEPTEMBER 30, 2022 12 $100 + $25.7 ($42.1) $75 $50.8 $ Millions $50 ($3.9) $30.5 $25 $0 Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 13: Upcoming Investor Conferences
UPCOMING INVESTOR CONFERENCES NEEDHAM CONSUMER TECH / E-COMMERCE CONFERENCE • NOVEMBER 21, 2022 CREDIT SUISSE ANNUAL TECHNOLOGY CONFERENCE • NOVEMBER 29, 2022 MORGAN STANLEY GLOBAL CONSUMER AND RETAIL CONFERENCE • DECEMBER 6, 2022
Slide 14: Appendix: Definitions and Reconciliations
PAGE PAGE 14 14 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 15: GAAP to Non-GAAP Reconciliation – Income Statement
PAGE GAAP TO NON-GAAP RECONCILIATION – INCOME STATEMENT 15 ADJUSTED EBITDA ($MM) (1) Q3 2019 Q3 2020 Q3 2021 Q3 2022 NET INCOME $9.6 $19.4 $16.7 $12.0 (+) OTHER EXPENSE (INCOME), NET (0.0) 0.3 (0.2) (1.4) (+) PROVISION FOR INCOME TAXES 3.3 2.1 2.7 4.2 (+) DEPRECIATION AND AMORTIZATION 1.1 1.3 1.1 1.
Slide 16: GAAP to Non-GAAP Reconciliation – Cash Flow
PAGE GAAP TO NON-GAAP RECONCILIATION – CASH FLOW 16 FREE CASH FLOW ($MM) (1) Q3 2019 Q3 2020 Q3 2021 Q3 2022 NET CASH PROVIDED BY OPERATING ACTIVITIES $9.2 $14.3 $1.9 $10.0 PURCHASE OF PROPERTY AND EQUIPMENT (1.7) (0.5) (0.5) (1.4) FREE CASH FLOW $7.4 $13.9 $1.3 $8.6 9 MOS 2019 9 MOS 2020 9 MOS 2021
Slide 17: Metrics Definitions
PAGE METRICS DEFINITIONS 17 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