Revolve Group, Inc. · NYSE:RVLV
Revolve — Q4 2021 Earnings Presentation
19 slides from Revolve's earnings presentation, Feb 23, 2022
Slide 1: Q4 & FY 2021 Financial Highlights
Q4 & FY 2021 FINANCIAL HIGHLIGHTS February 23, 2022
Slide 2: Note on Forward-Looking Statements
PAGE 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 pandemic on o
Slide 3: Q4 2021 Summary
PAGE Q4 2021 SUMMARY 3 NET SALES ($MM) GROSS MARGIN 56.0% 54.8% $239.8 52.9% (116 BPs) YoY $147.6 $140.8 +189 BPs +70% YoY Q4 19 Q4 20 Q4 21 vs Q4 19 +63% vs Q4 19 NET INCOME ($MM) $29.4 Q4 19 Q4 20 Q4 21 $19.0 +55% YoY $8.4 NET SALES GROWTH VS +250% vs Q4 19 COMPARABLE 2019 QUARTERS Q4 19 Q4 20 Q4
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 Q4 2021 NET SALES Q4 2021 NET SALES IN Q4 2021 BY SEGMENT BY GEOGRAPHY + 83% + 80% 17% 83% + 68% + 34% U.S. NET SALES REVOLVE FWRD U.S. INTERNATIONAL INTERNATIONAL NET SALES
Slide 5: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 5 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 11.8% 13.3% 13.3% 14.3% 9.3% 7.2% Q4 19 Q4 20 Q4 21 Q4 19 Q4 20 Q4 21 AS A % OF NET SALES Q4 21 Q4 20 CHANGE OBSERVATIONS Gross margin decreased compared to the record gross margin performance in Q4 2020, Gross P
Slide 6: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 6 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE (AOV)(1) (TRAILING 12 MONTHS) 1,755 $282 $292 1,840 $256 1,678 1,472 1,477 1,554 1,092 1,023 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q4 19 Q4 20 Q4 21 Q4 19 Q4 20 Q4 21 QoQ GROWTH (000s) YoY GROWTH
Slide 7: Segment Results
PAGE SEGMENT RESULTS 7 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) $170 +65% YoY 80% $170 +80% YoY $160 +64% vs Q4 19 $160 +98% vs Q4 19 85% $200.0 $150 70% $150 % of segment net sales +68% YoY +83% YoY $140 $140 $130 57% 58% 57% 60% $130 75% +60% vs Q4 19 +78% vs Q4 19 $120 $113.3 $120 $110
Slide 8: Full Year 2021 Results
FULL YEAR 2021 RESULTS
Slide 9: Full Year P&L Highlights
PAGE FULL YEAR P&L HIGHLIGHTS 9 NET SALES ($MM) NET INCOME ($MM) ADJUSTED EBITDA ($MM) +54% YoY +76% YoY +65% YoY +48% vs 2019 $891 +180% vs 2019 +106% vs 2019 $115 $601 $100 $581 $499 $69 $400 $57 $56 $46 $36 $31 $28 $5 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Slide 10: Full Year Metrics Disclosure
PAGE FULL YEAR METRICS DISCLOSURE(1) 10 OWNED BRAND NET SALES AS % NET SALES AT FULL PRICE(2) AVERAGE ORDER VALUE (AOV) OF REVOLVE SEGMENT NET SALES BY SEGMENT AOV increase primarily reflects the high % of net sales YoY decrease in 2021 partially reflects an at full price and mix shift in product ca
Slide 11: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 11 NET CASH PROVIDED BY ($MM) FREE CASH FLOW(1) ($MM) CASH & CASH EQUIVALENTS OPERATING ACTIVITIES (AT YEAR END) ($MM) (16%) YoY on Rebuild of Inventory (16%) YoY on Rebuild of Inventory +50% YoY +35% vs 2019 +79% vs 2019 > 3X vs 2019 $218.5 $73.8 $71.4 $6
Slide 12: Build Up of Free Cash Flow in 2021
PAGE BUILD UP OF FREE CASH FLOW IN 2021 12 $160 + $38.5 $120 $99.8 $ Millions $80 $60.1 ($76.0) ($2.2 ) $40 $0 Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 13: Full Year Segment Results
PAGE FULL YEAR SEGMENT RESULTS 13 SEGMENT NET SALES ($MM) SEGMENT GROSS PROFIT ($MM) $800.0 80% 800 160% 790 $745.1 +54% YOY 780 770 +109% YOY 760 750 +49% YOY +83% YOY 740 730 720 710 +44% vs 2019 $700.0 70% 700 140% 690 +133% vs 2019 680 +41% vs 2019 +98% vs 2019 670 660 650 640 % of segment net s
Slide 14: Earnings Per Share
PAGE EARNINGS PER SHARE 14 THE EPS MATH Q4 DILUTED EPS (000s, except per share figures) Q4 21 Q4 20 YoY FY 21 FY 20 YoY Income before income taxes $31,712 $15,919 99% $104,728 $60,072 74% Provision (benefit) for income taxes 2,330 (3,041) N/A 4,888 3,282 49% Effective tax rate 7% (19%) N/A 5% 5% N/A
Slide 15: Appendix: Definitions and Reconciliations
PAGE PAGE 15 15 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 16: Upcoming Investor Conferences
UPCOMING INVESTOR CONFERENCES BOFA CONSUMER AND RETAIL TECHNOLOGY CONFERENCE • MARCH 8, 2022 RAYMOND JAMES INSTITUTIONAL INVESTOR CONFERENCE • MARCH 9, 2022 ROTH ANNUAL CONFERENCE • MARCH 15, 2022
Slide 17: GAAP to Non-GAAP Reconciliation – Q4
PAGE GAAP TO NON-GAAP RECONCILIATION – Q4 17 ADJUSTED EBITDA ($MM) (1) Q4 2019 Q4 2020 Q4 2021 NET INCOME $8.4 $19.0 $29.4 (+) OTHER EXPENSE, NET 0.3 0.7 0.2 (+) PROVISION FOR (BENEFIT FROM) INCOME TAXES 2.0 (3.0) 2.3 (+) DEPRECIATION AND AMORTIZATION 1.2 1.2 1.1 (+) EQUITY-BASED COMPENSATION 0.5 1.
Slide 18: GAAP to Non-GAAP Reconciliation – Full Year
PAGE GAAP TO NON-GAAP RECONCILIATION – FULL YEAR 18 ADJUSTED EBITDA ($MM) (1) 2017 2018 2019 2020 2021 NET INCOME 5.0 30.6 $35.7 $56.8 $99.8 (+) OTHER EXPENSE, NET 1.4 0.6 0.9 1.0 0.6 (+) PROVISION FOR INCOME TAXES 14.1 10.5 11.5 3.3 4.9 (+) DEPRECIATION AND AMORTIZATION 2.8 2.9 4.0 4.8 4.5 (+) EQUI
Slide 19: Metrics Definitions
PAGE METRICS DEFINITIONS 19 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