Slide 1: Q3 2023 Earnings Presentation
Q3 2023 Earnings Presentation 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) Q3 2023 $142.4M 68.4% $6.1M 17.2% +10.7% YoY (220 bps) YoY 52% YoY 0.8 ppts YoY YTD 2023 $400.7M 69.6% $12.6M 14.8% +11.0% YoY (120 bps) YoY (29%) YoY (3.9 ppts) YoY (1) Adjusted EBITDA margin is a non-GAAP
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 +20% YoY (7%) (unaudited) 2023 2023 Record third quarter for new customer adds; AOV(1) increased nearly 2% YoY (1) Active customers, net revenues per acti
Slide 6: Third Quarter Highlights
Third Quarter Highlights ● Exceeded net revenues and adjusted EBITDA(1) expectations ● Delivered record growth in international and TEAMS businesses ● Launches first physical retail store (Community Hub) in Century City Mall in Los Angeles (official opening on 11/3/2023) ● Decreased inventory by 15% v
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 ○
Slide 8: Product Innovation
Product Innovation Limited edition style drops drive excitement and engagement such as the the flutter sleeve Natal scrub top and Lesage scrub joggers to drive traffic and engagement. Partner with brands that are leaders in their industries, have similar values to FIGS and complement our core competen
Slide 9: Build and Connect with Healthcare Community
Build and Connect with Healthcare Community ● We bring product to life through our “Innovate beyond your imagination” campaign ● We tell stories about how our products solve real world problems for healthcare professionals ● We highlight real healthcare professionals in campaigns that celebrate, emp
Slide 10: Advocacy and Giving Back
Advocacy and Giving Back ● During the largest strike of healthcare workers in U.S. history, FIGS spoke out in support of higher pay, safe working conditions and sustainable patient loads – all core tenets of our Awesome Humans Bill platform ● Our Instagram post generated some of our highest engageme
Slide 11: Expand Presence: International
Expand Presence International ● Generated international net revenues growth of 81% YoY in Q3 2023 ● Added seven new markets including Kuwait, Poland and Singapore ● Building awareness globally through expanding our Ambassador network and brand activations ● Creating exceptional customer experiences
Slide 12: Expand Presence: TEAMS
Expand Presence GRAND STREET DENTAL TEAMS ● Delivered record growth YoY with orders from best-in-class healthcare organizations ● Estimate a domestic total addressable market of almost $2 billion in the U.S.(1) and significantly larger internationally ● Capitalizing on healthcare trend toward special
Slide 13: Expand Presence: Retail Stores (Community Hubs)
Expand Presence Retail stores (Community Hubs) ● Launches first permanent Community Hub in Century City Mall in Los Angeles (official opening on 11/3/2023) ○ Annual foot traffic of approximately 20 million ○ Tenants include five popular healthcare clinics ○ Within 10 miles of six major healthcare instit
Slide 14: Why FIGS
Why FIGS Large Industry Sector Sustainable Differentiators with Strong Growth Fundamentals ● Largely non discretionary, recession-resistant and replenishment-driven ● Authentic, category-defining brand with deeply passionate, loyal industry with 22 million workers in the U.S.(1) community ● Creating
Slide 15: Financials
OFIGS Financials
Slide 16: Q3 2023 Revenues Results
Q3 2023 Revenues Results Net Revenues Q3 2023 Net Revenues Mix ($ in millions) (% of total revenues) SCRUBWEAR / US / NON-SCRUBWEAR INTERNATIONAL +11% +26% +81% YoY YoY YoY Net revenues growth was driven by an increase in orders and AOV
Slide 17: Q3 2023 Gross Margin
Q3 2023 Gross Margin ● The decrease in gross margin was primarily related to product mix shift and, to a lesser extent, a higher mix of promotional sales and higher duties, offset by lower air freight utilization and ocean freight rates.
Slide 18: Q3 2023 Operating Expense
Q3 2023 Operating Expense ● The decrease in selling expense as a percentage of net revenues was primarily due to lower fulfillment expenses, associated with lower storage costs and, to a lesser extent, 61.9% 61.5% leverage within shipping expense due to higher average order value. This was partially
Slide 19: Q3 2023 Profitability
Q3 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 financial measu
Slide 20: Q3 2023 Balance Sheet / Cash Flow Results
Q3 2023 Balance Sheet / Cash Flow Results Cash, Cash Equivalents Cash Flow Changes YTD 2023 & Short-Term Investments (for the YTD period ended September 30, 2023) (as of September 30, 2023) ($ in millions, unaudited) Free Cash Flow(1) $70.9 (1) Free cash flow is a non-GAAP financial measure. See “Non-
Slide 21: Raises Full Year 2023 Outlook
Raises Full Year 2023 Outlook Net Revenues growth vs. 2022: ~ 8.5% Adjusted EBITDA Margin(1): ~ 14% (1) Adjusted EBITDA margin is a non-GAAP metric. We have not provided a quantitative reconciliation of our adjusted EBITDA margin outlook to a GAAP net income margin outlook because we are unable, wit
Slide 22: Appendix
OFIGS Appendix
Slide 23: Non-GAAP 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 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 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 number of a