Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation
Slide 2: Disclaimer and Forward-Looking Statements
DIS CLAIMER 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
Slide 3: Our Mission
OU R MISSION To celebrate, empower, & serve those who serve others EARNINGS 3 PRESENTATION
Slide 4: Why FIGS?
WHY FIGS? • Large, recession-resistant, replenishment-driven sector with strong long-term growth fundamentals • Disrupting the healthcare apparel industry globally with best- in-class product and storytelling that centers around an underserved community • Sustainable brand differentiators within mar
Slide 5: Q1 at a Glance
Q1 at a Glance NET REVENUES (1) GROSS MARGIN $119.3M 68.9% NET INCOME ADJ. EBIT DA MARGIN (2) • Delivered net revenues at the high end of expectations • Exceeded adjusted EBITDA(2) margin expectations • Generated 9% growth in non-scrubwear net revenues $1.4M 10.9% reflecting strength in footwear and
Slide 6: Key Operating Metrics
KEY OPERAT IN G M E T RIC S (1) (1)(2) Active Customers Net Revenues Per Active Customer (TRAI LI NG T WELV E MO NTHS, IN THOU SANDS ) (TRAILING TWELVE MONTHS) +9% 3,000 230 YOY $224 $221 (3%) 2,592 2,597 YOY $216 2,250 2,390 210 2,294 $211 $210 (UNAUDITE D) $202 1,872 1,500 190 1,300 $185 750 170 5
Slide 7: Average Order Value
(1)(2) AVERAGE OR DER VA LUE +2% 118 YOY $116 $115 $114 112 $112 106 $105 100 2021 2022 2023 Q1'23 Q1'24 (1) AOV is a key operational and business metrics that is important to understanding our performance. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional in
Slide 8: Diversified Growth Strategy
D IVERSIFI ED GR OW TH ST RATEGY Product Innovation Build and Deepen Connection with Purpose with Healthcare Community Continued disruption and technical innovation Drive awareness and engagement through across styles, categories, and fabrications to powerful, purposeful storytelling, and unwavering
Slide 9: Product Innovation
Product Innovation We introduced new products within scrubwear. designed to increase comfort, flexibility, and range of motion for healthcare professionals on the move, including: • High Waisted Seville ScrubLegging™ combines the freedom of movement of a legging with the functionality of a scrub pan
Slide 10: Product Innovation
Product Innovation We introduced new outerwear with enhanced functionality and technical properties for healthcare professionals working in the most extreme environments, including: • On-Shift Extremes Jacket & Vest™ features oversized cargo pockets and reflective details inspired by extreme racing
Slide 11: Build and Deepen Connection with Community
Build and Deepen Connection with Community BRAND MOME NTS & CAMPAIGNS • We launched our EXTREMES Campaign featuring the most extreme Awesome Humans: • Dr. Luke and Dr. Elina, Hintsa Performance physicians who treat F1 athletes at the highest stakes • The Boda Girls, Boda Boda (motorcycle) drivers wh
Slide 12: Impact
Heather Hasson, Meg Whitman, US Ambassador to Kenya, and Trina Spear Impact FIGS OP ERATING THEATRE IN KENYA In January 2024, FIGS, in partnership with the Tiba Foundation, opened the FIGS Operating Theatre and ICU at the Matibabu Hospital - a local community-based hospital for the 500,000 Kenyans w
Slide 13: Expanding Global Presence
INTERN ATIONAL Expanding Global Presence Disrupting global healthcare apparel with product innovation and Adam N., Head of Medical Services, Everton Football Club powerful storytelling • Growth momentum remained strong with year over year net revenues growth of 29% (1) • Localization initiatives in
Slide 14: Serving Healthcare Institutions
TEAMS Serving Healthcare Institutions Serving hospitals, medical offices and concierge clinics to professionalize and standardize their teams • Continued to invest in our TEAMS capabilities to service the estimated domestic total addressable market of almost $2 billion in the U.S.(1) and significant
Slide 15: Creating Community Presence
RETAIL Creating Community Presence Executing a retail strategy that enables healthcare professionals to connect with FIGS and their peers • Generated strong performance in our Westfield Century City Community Hub • Plan to open second location in Philadelphia (4,200 square feet) in summer of 2024 wi
Slide 16: Why FIGS?
W HY F IGS ? Large Industry Sector with Strong Long Term Sustainable Differentiators Growth Fundamentals • Largely non-discretionary, recession-resistant, and replenishment-driven • Authentic, category-defining brand with deeply passionate, loyal community industry with 22 million workers in the U.S
Slide 17: Financials
Financials EARNINGS 17 PRESENTATION
Slide 18: Q1 2024 Net Revenues
Q1 2 02 4 NET RE V E NU ES (IN MILL IONS) SCRUBWEAR / NON-SCRUBWEAR 600 20% $545.6 $505.8 +9% Scrubwear Non-Scrubwear YOY 450 $419.6 80% 300 US / INTERNATIONAL $263.1 (1) 14% (0.8%) 150 YOY (1) $120.2 $119.3 +29% U.S. International YOY 0 86% FY'20 FY'21 FY'22 FY'23 Q1'23 Q1'24 EARNINGS (1) Q1 2024 n
Slide 19: Q1 2024 Gross Margin
Q1 2 02 4 GROSS M A RG IN 73% 72.3% 71.8% 71.3% 71% The decline in gross margin rate compared to the first 70.1% quarter of last year was primarily due to a product mix shift. 69.3% 69% 68.9% 67% FY'20 FY'21 FY'22 FY'23 Q1'23 Q1'24 EARNINGS 19 PRESENTATION
Slide 20: Q1 2024 Operating Expense
Q1 2 0 24 OPE RAT IN G E XP EN S E 68.5% 68.5% 70% The decrease in selling expense as a percentage of net 25.9% 23.9% revenues primarily reflects duty subsidies that were recorded in selling expense last year and are now reflected in net revenues as contra revenue. These costs were 14.5% partially o
Slide 21: Q1 2024 Profitability
Q 1 2 0 2 4 PR OFI TA B IL I TY Net Income (Loss) Margin (% OF NET REVENUES) 5% 4.2% 4.1% 2.5% 1.6% 1.2% 0% (2.3%) -2.5% FY'21 FY'22 FY'23 Q1'23 Q1'24 (1) Adjusted EBITDA Margin (% OF NET REVENUES) 30% 25.1% 20% 17.2% 15.8% 13.4% 10% 10.9% 0% FY'21 FY'22 FY'23 Q1'23 Q1'24 (1) Adjusted EBITDA margin
Slide 22: Q1 Balance Sheet and Cash Flow Results
Q1 20 2 4 BALAN CE SH EET AN D CAS H F LOW RES U LTS Cash, Cash Equivalents & Short-Term Investments Cash Flow Changes (FOR THE QUARTER ENDED MAR CH 31. 2024) $259.2 $21.6 $1.4 $1.4 $259.2 $246.7 ($11.4) ($0.5) ($ IN MILLI ONS, UNAUDITED) ($ IN MILLI ONS, UNAUDITED) $189.4 Free Cash Flow(1) $155.9 $
Slide 23: Full Year 2024 Outlook
Full Year 2024 Outlook NET REVENUES VS. 2023 -2% to +2% “ Net revenues came in at the upper end of our expectations with adjusted EBITDA margin(1) exceeding our guidance. Importantly, we saw improved momentum in our business, particularly in repeat frequency trends, toward the end of the first quart
Slide 24: Appendix
Appendix EARNINGS 24 PRESENTATION Luke B., MD
Slide 25: Non-GAAP Financial Measures and Key Operating Metrics
NON- GAAP FINANCIAL MEASURES A ND 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 fina
Slide 26: Non-GAAP Financial Measures and Key Operating Metrics (cont.)
NON- GAAP FINANCIAL MEASURES A ND 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, whic
Slide 27: Non-GAAP Financial Measures and Key Operating Metrics (cont.)
NON- GAAP FINANCIAL MEASURES A ND 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 Company b