Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation
Slide 2: Disclaimer and Forward-Looking Statements
DIS CL AIMER 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 o
Slide 3: Our Mission
OUR M ISSION To celebrate, empower, & serve those who serve others EARNINGS 3 PRESENTATION
Slide 4: Why FIGS?
W H Y FIG S? • Large, 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 marketing, product in
Slide 5: Q3 at a Glance
Q3 at a Glance N ET REVEN UES (1) $140.2M • Executed largest brand campaign in the Company’s history • Opened second Community Hub retail store in Philadelphia GROS S MARGIN • Completed state-of-the-art fulfillment center transition • Net revenues by geography vs. Q3 2023: U.S. declined 4% and 67.1%
Slide 6: Key Operating Metrics
K E Y OPE R A T IN G M E T R IC S (1) (1)(2) Active Customers Net Revenues Per Active Customer (T RAI LI N G T W ELV E MON T HS, I N T HOU SAN DS) (T RAI LI N G T W ELV E MON T HS) 3,000 +4% $250 -3% YOY 2,673 $224 YOY $221 2,592 2,576 $211 $212 2,500 $202 $205 2,294 $200 $185 2,000 1,872 $150 1,500
Slide 7: Key Operating Metrics: Average Order Value
K E Y OPE R A T IN G M E T R IC S (1)(2) Average Order Value (AOV) $116 $115 $114 $112 $112 -5% YOY $108 $108 $105 $104 $100 2021 2022 2023 Q3'23 Q3'24 (1) AOV is a key operational and business metrics that is important to understanding our performance. See “Non-GAAP Financial Measures and Key Opera
Slide 8: Diversified Growth Strategy
DIV E R SIFIE D G R OW T H ST R A T E G Y Product Innovation with Build and Deepen Connection Purpose with Healthcare Community Continued disruption and technical innovation Drive awareness and engagement through across styles, categories, and fabrications to powerful, purposeful storytelling, and u
Slide 9: Product Innovation
Product Innovation We leveraged strategic collaborations and product innovation to bring exciting, new products across the layering system to our community: • FIGS | New Balance 3447 is the first of its kind. This proprietary model, exclusive for FIGS, was designed specifically for healthcare profes
Slide 10: Build and Deepen Connection with Community
Build and Deepen Connection with Community • In July, our team celebrated the Team USA Medical Team at the Team USA Welcome Experience and our FIGS Celebration of Service in Paris. We showed up for our community by outfitting the 250+ medical professionals supporting the Olympics and Paralympics and
Slide 11: Impact
Impact VOTING ENGAGEMENT CAMPAIGN FIGS has partnered with the non-profit voting organization Headcount to empower healthcare professionals to make their voices heard at the polls. Studies show healthcare workers vote less often than workers in other professions, yet their perspective is essential to
Slide 12: Expanding Global Presence
I NT ER NAT I ONAL Expanding Global Presence Disrupting global healthcare apparel with product innovation and powerful top of funnel marketing campaigns • Experienced record net revenues in International with 17%(1) year- over-year growth in Q3 2024 and comparing against an exceptional 81% year-over
Slide 13: Serving Healthcare Institutions
T EAM S Serving Healthcare Institutions Serving hospitals, medical offices, and concierge clinics to professionalize and standardize their teams • Achieved record net revenues in TEAMS. • Top of funnel Olympics campaign drove a surge in TEAMS leads above trend during the month of August. • Plan to i
Slide 14: Creating Community Presence
R ET AI L Creating Community Presence Executing a retail strategy that enables healthcare professionals to connect with FIGS and their peers • Celebrated one year anniversary of our first Community Hub location in Century City with results exceeding expectations. • Opened second Community Hub locati
Slide 15: Why FIGS? Growth Fundamentals and Sustainable Differentiators
W H Y FIG S? Large Industry Sector with Strong Long Sustainable Differentiators Term Growth Fundamentals • Largely non-discretionary, replenishment-driven industry with over 22 million • Authentic, category-defining brand with deeply passionate, loyal community workers in the U.S.(1) • Industry lead
Slide 16: Financials
Financials EARNINGS 16 PRESENTATION
Slide 17: Q3 2024 Net Revenues
Q 3 2024 N E T R E V E N UE S (IN MIL L ION S ) SCRUBWEAR / NON-SCRUBWEAR NET REVENUES MIX AND YOY GROWTH $600 16%, -16% $545.6 YOY $505.8 $500 84%, $419.6 +2% YOY $400 Scrubwear Non-Scrubwear $300 $263.1 US / INTERNATIONAL NET REVENUES MIX AND YOY GROWTH (1) $200 -1.5% 16%, YOY +17% $142.4 $140.2 Y
Slide 18: Q3 2024 Gross Margin
Q 3 2024 G R OS S M AR G IN 73% 72.3% 71.8% 71% 70.1% The decline in gross margin 69.3% compared to Q3 2023 was 69% primarily driven by higher 68.4% discounted sales, and, to a lesser extent, product mix shift related to limited edition 67.1% scrubwear. 67% 65% FY'20 FY'21 FY'22 FY'23 Q3'23 Q3'24 EA
Slide 19: Q3 2024 Operating Expense
Q 3 2024 OPE R A T IN G E X PE N SE 80% 73.2% The increase in selling expense as a percentage of net revenues primarily reflects higher fulfillment expenses 70% 61.5% associated with the transition to our new center in Arizona, 60% 27.5% higher-than-anticipated post transition expenses as we ramped
Slide 20: Q3 2024 Profitability
Q 3 2024 PR OFIT A BIL IT Y Net Income (Loss) Margin (% OF N ET REV EN U ES) 6% 4.2% 4.1% 4.2% 3% 0% -1.2% -2.3% -3% FY'21 FY'22 FY'23 Q3'23 Q3'24 (1) Adjusted EBITDA Margin (% OF N ET REV EN U ES) 30% 25.1% 20% 17.2% 17.2% 15.8% 10% 3.4% 0% FY'21 FY'22 FY'23 Q3'23 Q3'24 (1) Adjusted EBITDA margin i
Slide 21: Q3 2024 Balance Sheet and Cash Flow Results
Q 3 2024 BA L A N C E SH E E T A N D C A SH FL OW R E SUL T S Cash, Cash Equivalents & Short-Term Investments Cash Flow Changes (FOR T HE YT D P ERI OD EN DED SEP T EMB ER 30, 2024) 350 $281.7 $54.4 -$4.4 -$13.7 300 -$2.1 $281.7 $232.1 $246.7 $0.8 ( $ IN M ILLION S, U N A U D ITED ) 250 ( $ IN M ILL
Slide 22: Full Year 2024 Outlook
Full Year 2024 Outlook “ N ET REVEN UES GROWT H VS . 2023 Our third quarter financial performance continued to show positive signs with brand interest and engagement remaining high, newness and innovation resonating, and frequency improving. We Down 1% to flat also experienced several challenges in
Slide 23: Appendix
Appendix EARNINGS 23 PRESENTATION
Slide 24: Non-GAAP Financial Measures and Key Operating Metrics
N ON - GAAP F IN AN CIAL MEAS URES AN D K EY OP ERAT IN G MET RICS 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 Com
Slide 25: Non-GAAP Financial Measures and Key Operating Metrics (cont.)
N ON - GAAP F IN AN CIAL MEAS URES AN D K EY OP ERAT IN G MET RICS (CON T .) The following table presents a reconciliation of adjusted EBITDA to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, and presents adjusted EBITDA margin with net
Slide 26: Non-GAAP Financial Measures and Key Operating Metrics (cont.)
N ON - GAAP F IN AN CIAL MEAS URES AN D K EY OP ERAT IN G MET RICS (CON T .) 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.