Kits Eyecare Ltd. · TSX:KITS
Kits Eyecare — 18th Annual Needham Technology & Media Conference (May 2023)
14 slides from Kits Eyecare's conference presentation, May 17, 2023
Slide 1: Q1 2023
Q1 2023 May 2023 JOSEPH THOMPSON | Co-Founder & COO
Slide 2: Forward Looking Statements, Non-IFRS Measures And E-commerce Industry Metrics
Forward Looking Statements NON-IFRS Measures And E-commerce Industry Metrics This presentation contains "forward-looking information" within the meaning of applicable securities laws in This presentation makes reference to certain non-IFRS measures and certain industry metrics. These Canada. Forward
Slide 3: Q1 2023 Company Snapshot
Q1 2023 COMPANY SNAPSHOT $27.7M 33% $9.1M $0.3M Q1 Revenue Q1 Gross Margin Gross Profit Adjusted EBITDA +38% +250 bps +49% +1.2M YoY YoY YoY YoY 3
Slide 4: Building Eyecare Brand For Consumers Of Today
BUILDING EYECARE BRAND FOR CONSUMERS OF TODAY Founded In 2018, Over $110 Million Annual Revenue Run Rate, Grew Revenue 38% in Q1’23 Our team has deep skill sets and a proven track record of executing in 1 the eyecare, technology and consumer industries We operate in a compelling $76 billion-dollar U
Slide 5: KITS Brand Expansion Last 4 Quarters
KITS BRAND EXPANSION LAST 4 QUARTERS Revenue Growth Of 38% 38.0% $28.0 Revenue ($mm) Revenue Growth y-o-y (%) 35.0% $27.0 29.4% 30.0% $26.0 25.0% $25.0 17.7% $27.7 20.0% $24.0 15.0% 10.0% $23.0 $26.2 0.5% 5.0% $22.0 $23.6 0.0% $21.0 -5.0% $21.8 $20.0 -10.0% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Revenue ($
Slide 6: Continued Gross Profit & Margin Expansion
CONTINUED GROSS PROFIT & MARGIN EXPANSION ad Growth Is Driving Improvements In Profitability $0.8 4% $9.5 Gross Profit & Margin $9.1 60% Adjusted EBITDA (1) $8.9 $0.6 Adjusted EBITDA 3% $9.0 55% $0.4 Gross Profit ($) $0.4 Adjusted EBITDA (%) $0.3 2% $8.5 50% Gross Margin (%) $0.2 2% 1% $8.0 1% 45% $
Slide 7: Our Optical Lab & Fulfillment Center
OUR OPTICAL LAB & FULFILLMENT CENTER Building North America's most automated Optical Lab with 4,000+ pair per 1 day capacity 2 Enables the lowest cost of manufacturing in the industry (and the fastest) 3 Carrier rates declined while speed of delivery improved 4 Capex deployed to scale revenue to $20
Slide 8: KITS
KITS KITS makes eyecare easy. Itall started on KITS beach, in Vancouver, Canada. Shared belief in easy access to high quality eyecare product brought together three passionate friends — Roger, Sabrina and Joe. KITS was born — with a mission fo unlock quality eyecare to everyone, everywhere. Today, c
Slide 9: Overall Eyecare Revenue Grew 38%
OVERALL EYECARE REVENUE GREW 38% GLASSES REPEAT GROSS MARGIN REVENUE GROWTH $27.7M 37,000 glasses to repeat Q1 REVENUE INCREASED TO 33% IN Q1 Total glasses delivered in 1Q 2023: 67,000 +38% YoY +5% QoQ +250 bps YoY +45.7% YoY -95 bps QoQ +76.2% QoQ (1) (2) STRONG CASH BALANCE RECORD REPEAT REVENUE 8
Slide 10: 2023 And Beyond
2023 AND BEYOND 1 Superior data, customer experience, drives continued revenue and customer growth, market share gains 2 Gross margin expansion as specialty segments grow Ongoing innovation in fulfillment and product drives net promoter 3 score (NPS) and customer retention 4 Expanded partnerships an
Slide 11: Thank You!
THANK YOU!
Slide 12: An Experienced Leadership Team With Over 100 Years Of Combined Industry Experience
AN EXPERIENCED LEADERSHIP TEAM WITH OVER 100 YEARS OF COMBINED INDUSTRY EXPERIENCE ROGER HARDY SABRINA LIAK JOSEPH THOMPSON ARSHIL ABDULLA Co-Founder & CEO Co-Founder & President Co-Founder & COO CTO STEFAN HARVALIAS ROB LONG TAI SILVEY ZHE CHOO CMO CIO CBDO SVP FINANCE 12
Slide 13: Category Leading Retention
CATEGORY LEADING RETENTION RATES DRIVE CONTINUED & SUPERIOR GROWTH Sales Retention Rate By Customer Cohort Source: Management estimates, competitor data based on Warby Parker 4th Quarter 2022 average cohort results: https://investors.warbyparker.com/events-presentations/default.aspx 13
Slide 14: Reconciliation of Non-IFRS Measures
RECONCILIATION OF NON-IFRS MEASURES Three months ended March 31, Notes: CAD $000s, unless otherwise noted 2023 2022 2021 a. Represents non-cash share-based compensation expense (Unaudited) (Unaudited) (Unaudited) associated with restricted share rights (“RSRs”) and options recognized in the period.
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