Revolve Group, Inc. · NYSE:RVLV
Revolve — Q2 2021 Earnings Presentation
18 slides from Revolve's earnings presentation, Aug 4, 2021
Slide 1: Q2 2021 Financial Highlights
Q2 2021 FINANCIAL HIGHLIGHTS August 4, 2021
Slide 2: Note on Forward-Looking Statements
PAGE PAGE 2 1 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 pand
Slide 3: Q2 2021 Summary
PAGE PAGE Q2 2021 SUMMARY 3 1 3 NET SALES ($MM) GROSS MARGIN $228.6 55.8% 55.6% 50.5% $161.9 Up 60% +517 BPs $142.8 YoY YoY Q2 19 Q2 20 Q2 21 Up 41% vs Q2 19 NET INCOME ($MM) $31.5 Q2 19 Q2 20 Q2 21 $12.7 $14.2 Up 122% NET SALES GROWTH VS YoY COMPARABLE 2019 QUARTERS Q2 19 Q2 20 Q2 21 + 41% ADJUSTED
Slide 4: Net Sales by Geography and Segment
PAGE PAGE NET SALES BY GEOGRAPHY AND SEGMENT 4 1 4 YoY GROWTH IN YOY GROWTH IN INTERNATIONAL MIX IN Q2 2021 NET SALES IN Q2 2021 NET SALES OF TOTAL NET SALES IN Q2 ‘21 BY SEGMENT BY GEOGRAPHY (UNCHANGED YoY) 151% 63% 59% 19% 49% INTERNATIONAL NET SALES REVOLVE FORWARD U.S. International U.S. NET SAL
Slide 5: Cost and Margin Structure
PAGE PAGE COST AND MARGIN STRUCTURE 5 1 5 GAAP OPERATING ADJUSTED EBITDA INCOME MARGIN MARGIN(1) 14.4% 14.6% 15.5% 13.2% 11.0% 11.7% Q2 19 Q2 20 Q2 21 Q2 19 Q2 20 Q2 21 AS A % OF NET SALES Q2 21 Q2 20 CHANGE OBSERVATIONS Healthy inventory and consumer demand led to record % of net sales at full pric
Slide 6: Operating Metrics Highlights
PAGE PAGE OPERATING METRICS HIGHLIGHTS 6 1 6 ACTIVE CUSTOMERS(1) (000s) TOTAL ORDERS PLACED(1) (000s) AVERAGE ORDER VALUE (AOV)(1) (TRAILING 12 MONTHS) 1,769 1,533 1,554 1,163 $255 $204 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 QoQ GROWTH (000s) TOTAL ORDERS YOY TREND AOV YOY TREND 77 52% 40 25% 5 5 3% 9%
Slide 7: Earnings Per Share: The EPS Math
PAGE PAGE EARNINGS PER SHARE 7 1 7 THE EPS MATH DILUTED EPS(1) (000s, except per share figures) Q2 2021 Q2 2020 YoY % Income before income taxes $32,665 $18,630 75% +110% YoY Provision for income taxes 1,127 4,394 N/A $0.42 Effective tax rate 3% 24% Net income (GAAP) $31,538 $14,236 122% $0.20 Weigh
Slide 8: Cash Flow and Balance Sheet
PAGE PAGE 8 8 CASH FLOW AND BALANCE SHEET
Slide 9: Multi-Year View of YTD Cash Flow and Balance Sheet Highlights
PAGE PAGE MULTI-YEAR VIEW OF YTD CASH FLOW AND BALANCE SHEET HIGHLIGHTS 9 1 9 NET CASH PROVIDED BY ($MM) FREE CASH FLOW ($MM) CASH & CASH EQUIVALENTS, OPERATING ACTIVITIES NET OF BORROWINGS ($MM) +8% YoY +8% YoY +73% YoY +193% vs 1H 2019 +405% vs 1H 2019 +$175M in 2 YEARS $219.6 $66.6 $61.9 $65.3 $6
Slide 10: Build Up of Free Cash Flow in Q2 2021 ($MM)
PAGE PAGE BUILD UP OF FREE CASH FLOW IN Q2 2021 ($MM) 10 10 1 + $20.2 ($18.4) $32.8 $31.5 ($0.5) CapEx of Only 0.2% of Q2 ‘21 Net Sales Illustrates RVLV Capital Efficiency Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 11: Investments in Inventory to Support Growth
PAGE PAGE INVESTMENTS IN INVENTORY TO SUPPORT GROWTH 11 11 1 INVENTORY BALANCE AVERAGE INVENTORY ($MM) NET SALES GROWTH OUTPACED ($MM) INCREASED SEQUENTIALLY (BEGINNING + ENDING / 2) GROWTH IN AVERAGE INVENTORY $118.8 $109.6 $101.4 $100.5 $95.3 $82.9 60% $73.6 $64.5 32% Q1 20 Q2 20 Q3 20 Q4 20 Q1 21
Slide 12: Segment Results
PAGE PAGE 12 12 1 SEGMENT RESULTS
Slide 13: Segment Results: Net Sales
PAGE PAGE SEGMENT RESULTS: NET SALES 13 13 1 REVOLVE SEGMENT NET SALES ($MM) FORWARD SEGMENT NET SALES ($MM) +49% YoY +151% YoY +31% vs Q2 2019 +122% vs Q2 2019 $188.8 $143.9 $126.9 $116.1 $39.8 $90.4 $17.5 $18.0 $15.7 $15.9 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21
Slide 14: Segment Results: Gross Profit
PAGE PAGE SEGMENT RESULTS: GROSS PROFIT 14 14 1 REVOLVE SEGMENT GROSS PROFIT ($MM) FORWARD SEGMENT GROSS PROFIT ($MM) +62% YoY +237% YoY +30% vs Q2 2019 +160% vs Q2 2019 $107.5 $82.8 $66.5 $66.2 $19.7 $48.0 $6.9 $7.6 $6.6 $5.8 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21 Q2 17 Q2 18 Q2 19 Q2 20 Q2 21
Slide 15: Upcoming Virtual Investor Conference
PAGE PAGE 15 15 1 UPCOMING VIRTUAL INVESTOR CONFERENCE KEYBANC TECHNOLOGY LEADERSHIP FORUM • AUGUST 11, 2021
Slide 16: Appendix: Definitions and Reconciliations
PAGE PAGE 16 16 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 17: Metrics Definitions
PAGE PAGE METRICS DEFINITIONS 17 17 1 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other expense (income), net, taxes, and depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, and ce
Slide 18: GAAP to Non-GAAP Reconciliation
PAGE PAGE GAAP TO NON-GAAP RECONCILIATION 18 18 1 ADJUSTED EBITDA ($MM) (1) Q2 2017 Q2 2018 Q2 2019 Q2 2020 Q2 2021 NET INCOME $5.3 $10.5 $12.7 $14.2 $31.5 (+) OTHER EXPENSE, NET 0.5 0.1 0.4 0.2 0.3 (+) PROVISION FOR INCOME TAXES 4.3 3.5 4.5 4.4 1.1 (+) DEPRECIATION AND AMORTIZATION 0.6 0.7 0.9 1.2