Revolve Group, Inc. · NYSE:RVLV
Revolve — Q4 2019 Earnings Presentation
15 slides from Revolve's earnings presentation, Feb 25, 2020
Slide 1: Q4 and FY 2019 Results
THE ANALYST DAY PRESENTATION 2018 Q4 and FY 2019 RESULTS February 25, 2020
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 about REVOLVE and the environment in which REVOLVE operates, including statements re
Slide 3: Fourth Quarter and Full Year 2019 Results Headlines
PAGE FOURTH QUARTER AND FULL YEAR 2019 RESULTS HEADLINES 3 TOTAL NET SALES GREW 21% FOR THE FULL YEAR 2019 AND INCREASED 16% YoY IN Q4 2019 • REVOLVE SEGMENT NET SALES INCREASED 22% IN 2019 (UP 13% YoY IN Q4 2019) • FORWARD SEGMENT NET SALES INCREASED 13% IN 2019 (UP 33% YoY IN Q4 2019) • INTERNATIO
Slide 4: Income Statement Highlights
PAGE INCOME STATEMENT HIGHLIGHTS 4 (1) NET SALES ($MM) GROSS MARGIN NET INCOME ($MM) ADJUSTED EBITDA ($MM) % ADJ. EBITDA MARGIN +21% YoY in FY 2019 +~40 BPs YoY in FY 2019 +16% YoY in FY 2019 +20% YoY in FY 2019 $55.6 $601.0 $35.7 54.1% 53.6% $46.5 52.9% 53.2% $30.6 $498.7 (~120 BPs YoY) +16% YoY +9
Slide 5: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 5 (1) NET CASH PROVIDED BY FREE CASH FLOW ($MM) CASH ON OPERATING ACTIVITIES ($MM) CapEx investment in 2019 to consolidate five BALANCE SHEET ($MM) fulfillment centers into one newly-modernized center + 73% YoY for Full Year + 42% YoY for Full Year, $46.1
Slide 6: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 6 (1) (1) ACTIVE CUSTOMERS (000s) TOTAL ORDERS PLACED (000s) AVERAGE ORDER VALUE (1) (TRAILING 12 MONTHS) + 27% YoY for Full Year +27% YoY 1,488 4,715 +3% YoY (1% YoY) $274 $282 $279 $275 1,175 3,710 + 14% YoY 954 1,092 Q4 2018 Q4 2019 Q4 2018 Q4 2019 FY 2018 FY 201
Slide 7: AOV and Active Customers Quarterly Trend
PAGE AOV AND ACTIVE CUSTOMERS QUARTERLY TREND 7 AVERAGE ORDER VALUE (AOV) ACTIVE CUSTOMERS (000s) (TRAILING 12 MONTHS) YoY COMPARISON 1,488 1,438 1,359 3% 1,262 1,175 1,080 998 904 842 (2%) (2%) 793 713 746 (6%) (7%) (7%) (8%) (9%) (9%) Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 17 Q2
Slide 8: Full Year Metrics Disclosure
PAGE FULL YEAR METRICS DISCLOSURE(1) 8 OWNED BRAND MIX AS % OF REVOLVE SEGMENT NET SALES NET SALES AT FULL PRICE(2) AVERAGE ORDER VALUE 2017 2018 2019 Flat YoY in FY 2019 $717 $653 $636 79% 79% 75% Up 5 Points in FY 2019 36% 31% $304 $270 $258 $279 $275 $256 20% 2017 2018 2019 2017 2018 2019 REVOLVE
Slide 9: GAAP Cost Structure
PAGE GAAP COST STRUCTURE 9 Q4 EXPENSE YoY CHANGE FULL YEAR EXPENSE YoY CHANGE AS A % OF NET SALES AS A % OF NET SALES (ROUNDED) (ROUNDED) 14.0% 13.9% 13.1% 12.9% (10 BPs) (20 BPs) 14.8% 14.6% 14.9% 14.8% (20 BPs) (10 BPs) 13.9% 14.2% 14.2% 14.6% +30 BPs +40 BPs 3.1% 3.0% 2.7% 3.2% (10 BP) +50 BPs 45
Slide 10: Segment Net Sales
PAGE SEGMENT NET SALES 10 REVOLVE SEGMENT NET SALES ($MM) FORWARD SEGMENT NET SALES ($MM) 2017 2018 2019 2017 2018 2019 Full Year Up 22% YoY $527.3 Full Year Up 13% YoY $433.5 $73.7 $69.0 $65.2 $330.6 Q4 19 Up 13% YoY Q4 19 Up 33% YoY $125.2 $22.3 $111.0 $18.1 $83.8 $16.8 Fourth Quarter Full Year Fo
Slide 11: Segment Gross Profit
PAGE SEGMENT GROSS PROFIT 11 REVOLVE SEGMENT GROSS PROFIT ($MM) FORWARD SEGMENT GROSS PROFIT ($MM) 2017 2018 2019 2017 2018 2019 Full Year Up 21% YoY Full Year Up 23% YoY $292.0 $29.9 $241.1 $24.6 $24.2 $169.1 Q4 19 Up 42% YoY Q4 19 Up 10% YoY $9.2 $69.0 $7.3 $62.7 $6.4 $45.3 Fourth Quarter Full Yea
Slide 12: Net Sales by Geography
PAGE NET SALES BY GEOGRAPHY 12 INTERNATIONAL INTERNATIONAL NET SALES • Key contributors to Q4 growth: further NET SALES MIX: Q4 2019 GROWTH IN Q4 2019 improvement in Australia / New Zealand and Greater China and continued strength in the U.K. +22% YoY • YoY growth across all major regions KEY PERFOR
Slide 13: Upcoming Investor Conferences
PAGE UPCOMING INVESTOR CONFERENCES 13 RAYMOND JAMES INSTITUTIONAL INVESTORS CONFERENCE TUESDAY, MARCH 3 ROTH 2020 ANNUAL CONFERENCE MONDAY, MARCH 16
Slide 14: Metrics Definitions
PAGE METRICS DEFINITIONS 14 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other expense, net, taxes, depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, and certain non-routine expen
Slide 15: GAAP to Non-GAAP Reconciliation
PAGE GAAP TO NON-GAAP RECONCILIATION 15 - ADJ. EBITDA ($MM) Q4 2019 Q4 2018 FY 2019 FY 2018 NET INCOME $8.4 $7.7 $35.7 $30.6 (+) OTHER (INCOME) EXPENSE, NET 0.3 0.2 0.9 0.6 (+) PROVISION FOR INCOME TAXES 2.0 2.8 11.5 10.5 (+) DEPRECIATION AND AMORTIZATION 1.2 0.7 4.0 2.9 (+) EQUITY-BASED COMPENSATIO