Slide 1: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights May 3, 2023 Image from REVOLVE’s AI-generated billboard campaign to celebrate its 20th anniversary -- link to announcement
Slide 2: Note on Forward-Looking Statements
PAGE 2 Note on Forward-Looking Statements This presentation contains forward-looking statements as defined within the meaning of U.S. federal securities laws. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as “anticipate,” “believe
Slide 3: Q1 2023 Summary
PAGE Q1 2023 SUMMARY 3 NET SALES GROSS MARGIN ($MM) $283.5 $279.6 54.0% 54.5% $178.9 51.5% 49.8% $146.1 (1%) YoY 48.6% (468) BPs YoY $137.3 19% 4-Year (173) BPs CAGR Vs. Q1 2019 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 NET INCOME ADJUSTED EBITDA(1) ($MM) ($MM) $22.3 $22.6 $31.5 $2
Slide 4: Net Sales by Segment and Geography
PAGE NET SALES BY SEGMENT AND GEOGRAPHY 4 YoY GROWTH IN YoY GROWTH IN NET SALES BY GEOGRAPHY Q1 2023 NET SALES Q1 2023 NET SALES IN Q1 2023 BY SEGMENT BY GEOGRAPHY + 16% + 5% 19% 81% (3%) (5%) U.S. REVOLVE FWRD U.S. INTERNATIONAL INTERNATIONAL
Slide 5: Operating Metrics Highlights
PAGE OPERATING METRICS HIGHLIGHTS 5 ACTIVE CUSTOMERS(1) TOTAL ORDERS PLACED(1) AVERAGE ORDER VALUE(1) (TRAILING 12 MONTHS, in 000s) (000s) +19% YoY 2,424 2,278 2,156 2,041 $288 $288 $259 $259 $256 1,528 1,172 1,282 1,477 1,135 1,262 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 19 Q
Slide 6: Segment Results
PAGE SEGMENT RESULTS 6 SEGMENT NET SALES SEGMENT GROSS PROFIT ($MM) ($MM) (3%) YoY + 5% YoY (10%) YoY 80% (8%) YoY 90% $237.7 $250 $150 $231.7 $240 $230 $140 70% $220 80% % of segment net sales $130 $210 $200 $120 $190 56% 60% 70% $180 $110 $170 52% 50% 52% $152.2 55% $100 $160 $150 53% 50% $90 46%
Slide 7: Cost and Margin Structure
PAGE COST AND MARGIN STRUCTURE 7 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN(1) 11.9% 10.0% 13.0% 11.1% 5.0% 4.4% 6.2% 5.4% 2.6% 3.8% Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 AS A % OF NET SALES Q1 23 Q1 22 CHANGE OBSERVATIONS Primarily reflects a lower mix of net sales at
Slide 8: Earnings Per Share
PAGE EARNINGS PER SHARE 8 THE EPS MATH (000s, except per share figures and percentages) Q1 23 Q1 22 YoY Income before income taxes $18,841 $28,996 (35%) Q1 DILUTED EPS Provision for income taxes (4,669) (6,398) (27%) Effective tax rate (25%) (22%) 3 PTs $0.30 $0.30 Net income (GAAP) $14,172 $22,568
Slide 9: Cash Flow and Balance Sheet Highlights
PAGE CASH FLOW AND BALANCE SHEET HIGHLIGHTS 9 NET CASH PROVIDED BY FREE CASH FLOW(1) CASH & CASH EQUIVALENTS, NET(2) OPERATING ACTIVITIES ($MM) ($MM) ($MM) +$13M, +$49M, or +5% YoY or +21% QoQ (9)% YoY (10%) YoY $283.3 $283.3 $270.6 32% 4-Year CAGR 44% 4-Year CAGR $234.7 $52.7 $182.9 $53.8 $48.8 $47
Slide 10: Balance Sheet Highlights
PAGE BALANCE SHEET HIGHLIGHTS 10 INVENTORY YoY SALES GROWTH % MINUS YoY INVENTORY GROWTH % ($MM) Progress towards balancing inventory Inventory Declined (12%) QoQ and Increased 6% YoY Spread reduced 42 pts in 3 quarters $208.5 $213.3 $215.2 $190.2 $179.2 $171.3 (7%) (9%) $141.8 (18%) $118.8 (20%) $1
Slide 11: Capital Efficiency: A Key Driver of Cash Flow Generation
PAGE CAPITAL EFFICIENCY: A KEY DRIVER OF CASH FLOW GENERATION 11 AVERAGE CAPEX % OF CAPITAL EXPENDITURES (CAPEX) % OF NET SALES NET SALES SINCE 2016 2019 Fulfillment Center Investment 2.1% < 1% of Net Sales 1.0% 0.6% 0.6% 0.4% 0.5% 0.4% 0.7% 0.2% 2016 2017 2018 2019 2020 2021 2022 Q1 23 2016 - Q1 20
Slide 12: Build Up of Free Cash Flow in Q1 2023
PAGE BUILD UP OF FREE CASH FLOW IN Q1 2023 12 $100 $75 $ Millions + $25.1 $47.7 $50 ($1.1 ) + $9.5 $25 $14.2 $0 Net Income Other Working Capital Decrease in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 13: Appendix: Definitions and Reconciliations
PAGE PAGE 13 13 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 14: Upcoming Investor Conferences
UPCOMING INVESTOR CONFERENCES NEEDHAM TECHNOLOGY & MEDIA CONFERENCE • MAY 18, 2023 COWEN FUTURE OF THE CONSUMER CONFERENCE • JUNE 6, 2023 WILLIAM BLAIR GROWTH STOCK CONFERENCE • JUNE 7, 2023
Slide 15: GAAP to Non-GAAP Reconciliation
PAGE GAAP TO NON-GAAP RECONCILIATION 15 ADJUSTED EBITDA ($MM) (1) Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 NET INCOME $5.0 $4.2 $22.3 $22.6 $14.2 (+) OTHER EXPENSE (INCOME), NET 0.2 (0.1) 0.2 (0.5) (6.6) (+) PROVISION FOR (BENEFIT FROM) INCOME 1.7 (0.2) (1.3) 6.4 4.7 TAXES (+) DEPRECIATION AND AMORTI
Slide 16: Metrics Definitions
PAGE METRICS DEFINITIONS 16 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other (income) expense, net; taxes; and depreciation and amortization; adjusted to exclude the effects of equity-based compensation expense and certain non-r