Revolve Group, Inc. · NYSE:RVLV
Revolve — Q1 2022 Earnings Presentation
17 slides from Revolve's earnings presentation, May 3, 2022
Slide 1: Q1 2022 Financial Highlights
Q1 2022 FINANCIAL HIGHLIGHTS May 3, 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. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe
Slide 3: Q1 2022 Summary
PAGE Q1 2022 SUMMARY 3 NET SALES ($MM) GROSS MARGIN $283.5 54.0% 54.5% $178.9 51.5% 48.6% + 44 BPs YoY $137.3 $146.1 + 58% YoY 27% 3-Year Highest ever for CAGR a first quarter Q1 19 Q1 20 Q1 21 Q1 22 Q1 19 Q1 20 Q1 21 Q1 22 INCOME BEFORE ADJUSTED EBITDA(1) NET INCOME ($MM) INCOME TAXES ($MM) Tax rat
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 Q1 2022 NET SALES Q1 2022 NET SALES IN Q1 2022 BY SEGMENT BY GEOGRAPHY Bigger Int’l comps as Int’l growth in Q1 21 was 19 points higher than U.S. 16% 84% + 71% + 66% + 56% + 28% U.S. NET SALES REVOLVE FWRD U
Slide 5: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 5 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE (AOV)(1) (TRAILING 12 MONTHS) 2,156 2,041 $288 1,840 $259 $259 $256 1,678 1,477 1,554 1,282 1,135 1,172 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 19 Q1 20 Q1 21 Q1 22 Q1 19 Q1 20 Q1 21 Q1 22 QoQ G
Slide 6: Increased Productivity from Active Customers
PAGE INCREASED PRODUCTIVITY FROM ACTIVE CUSTOMERS 6 AVERAGE # OF ORDERS PLACED PER ACTIVE CUSTOMER (LAST 12 MONTHS) Key Drivers 3.61 3.68 3.52 3.36 3.11 3.12 3.16 3.16 3.19 3.19 3.18 3.17 3.11 3.06 3.12 3.01 3.04 • Loyalty Program • Increased REVOLVE / FWRD customer Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2
Slide 7: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 7 NET CASH PROVIDED BY FREE CASH FLOW(1) ($MM) CASH & CASH EQUIVALENTS, NET(2) ($MM) OPERATING ACTIVITIES ($MM) +$88M, +$52M, + 62% YoY or +48% YoY or +24% QoQ + 62% YoY $271 $271 > 3X in 3 Years Nearly 5X in 3 Years $218 $53 $183 $54 First Quarter Record
Slide 8: Segment Results
PAGE SEGMENT RESULTS 8 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) + 56% YoY + 71% YoY + 59% YoY 80% + 66% YoY 90% $237.7 $250 $150 $240 $230 $140 70% $220 80% % of segment net sales $130 $210 $200 $120 $190 56% 60% 70% $180 $110 $170 52% 50% $152.2 55% $100 $160 $150 53% 50% $90 $140 46% $13
Slide 9: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 9 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 11.9% 13.0% 10.0% 11.1% 5.0% 6.2% 2.6% 3.8% Q1 19 Q1 20 Q1 21 Q1 22 Q1 19 Q1 20 Q1 21 Q1 22 AS A % OF NET SALES Q1 22 Q1 21 CHANGE OBSERVATIONS Strong full price selling and an increased mix of owned brands year-
Slide 10: Earnings Per Share
PAGE EARNINGS PER SHARE 10 Q1 INCOME BEFORE THE EPS MATH INCOME TAXES ($M) (000s, except per share figures and percentages) Q1 22 Q1 21 YoY + 38% YoY $29.0 Income before income taxes $28,966 $20,982 38% $21.0 Provision (benefit) for income taxes 6,398 (1,270) N/A Effective tax rate 22% (6%) 28 PTs $
Slide 11: Moderate Inventory Expansion Ahead of Anticipated Peak Season in Q2 2022
PAGE MODERATE INVENTORY EXPANSION AHEAD OF ANTICIPATED PEAK SEASON IN Q2 2022 11 INVENTORY BALANCE INCREASED SEQUENTIALLY QoQ GROWTH IN NET SALES IN Q1 2022 (vs. Q4 2021) INTO TYPICAL Q2 PEAK PERIOD ($MM) OUTPACED QoQ GROWTH IN INVENTORY +78% YoY, +5% QoQ $179 $171 $142 $119 + 18% $100 + 5% Q1 21 Q2
Slide 12: Capital Efficiency a Key Driver of Cash Flow Generation
PAGE CAPITAL EFFICIENCY A KEY DRIVER OF CASH FLOW GENERATION 12 AVERAGE CAPEX % OF CAPITAL EXPENDITURES (CAPEX) % OF NET SALES NET SALES SINCE 2016 2019 Fulfillment Center Investment 2.1% < 1% of Net Sales 1.0% 0.6% 0.6% 0.4% 0.4% 0.7% 0.2% 2016 2017 2018 2019 2020 2021 Q1 22 2016 - 2022 Average
Slide 13: Build Up of Free Cash Flow in Q1 2022
PAGE BUILD UP OF FREE CASH FLOW IN Q1 2022 13 $100 $75 + $39.2 $52.7 $ Millions $50 ($8.0) ($1.1 ) $22.6 $25 $0 Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 14: Appendix: Definitions and Reconciliations
PAGE PAGE 14 14 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 15: Upcoming Investor Conferences
UPCOMING INVESTOR CONFERENCES B RILEY INSTITUTIONAL INVESTOR CONFERENCE • MAY 26, 2022 STIFEL CROSS SECTOR INSIGHT CONFERENCE • JUNE 7, 2022 WILLIAM BLAIR GROWTH STOCK CONFERENCE • JUNE 8, 2022
Slide 16: GAAP to Non-GAAP Reconciliation
PAGE GAAP TO NON-GAAP RECONCILIATION 16 ADJUSTED EBITDA ($MM) (1) Q1 2019 Q1 2020 Q1 2021 Q1 2022 NET INCOME $5.0 $4.2 $22.3 $22.6 (+) OTHER EXPENSE (INCOME), NET 0.2 (0.1) 0.2 (0.5) (+) PROVISION FOR (BENEFIT FROM) INCOME TAXES 1.7 (0.2) (1.3) 6.4 (+) DEPRECIATION AND AMORTIZATION 0.7 1.2 1.1 1.1 (
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 expense (income), net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense and certain non-r