Revolve Group, Inc. · NYSE:RVLV
Revolve — Q3 2021 Earnings Presentation
19 slides from Revolve's earnings presentation, Nov 3, 2021
Slide 1: Q3 2021 Financial Highlights
Q3 2021 FINANCIAL HIGHLIGHTS November 3, 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: Q3 2021 Summary
PAGE PAGE Q3 2021 SUMMARY 3 1 3 NET SALES ($MM) GROSS MARGIN $244.1 53.6% 55.3% 55.1% (16 BPs) YOY $154.2 $151.0 +62% YOY +148 BPs Q3 19 Q3 20 Q3 21 vs Q3 19 +58% vs Q3 19 NET INCOME ($MM) Q3 19 Q3 20 Q3 21 $19.4 $16.7 2 YR CAGR: $9.6 NET SALES GROWTH VS +32% COMPARABLE 2019 QUARTERS Q3 19 Q3 20 Q3
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 Q3 2021 NET SALES Q3 2021 NET SALES OF TOTAL NET SALES IN Q3 21 BY SEGMENT BY GEOGRAPHY Down 1 Percentage Point YoY + 95% + 65% 19% + 49% + 56% INTERNATIONAL NET SALES REVOLVE FWRD U.S. INTERNATIONAL U.S
Slide 5: Cost and Margin Structure
PAGE PAGE COST AND MARGIN STRUCTURE 5 1 5 GAAP OPERATING INCOME MARGIN ADJUSTED EBITDA MARGIN 14.4% 15.9% 10.1% 11.3% 11.5% 12.3% 8.3% 8.3% 9.4% 8.9% 9.3% 7.9% Q3 19 Q3 20 Q3 21 9 MOS 19 9 MOS 20 9 MOS 21 Q3 19 Q3 20 Q3 21 9 MOS 19 9 MOS 20 9 MOS 21 AS A % OF NET SALES Q3 21 Q3 20 CHANGE OBSERVATION
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) 1,830 1,678 $276 1,504 1,141 $232 Q3 20 Q3 21 Q3 20 Q3 21 Q3 20 Q3 21 QOQ GROWTH (000s) TOTAL ORDERS YOY TREND AOV YOY TREND First Qtr > 100K 124 60
Slide 7: Earnings Per Share
PAGE PAGE EARNINGS PER SHARE 7 1 7 THE EPS MATH DILUTED EPS (000s, except per share figures) Q3 2021 Q3 2020 YOY % Income before income taxes $19,369 $21,542 (10%) Provision for income taxes 2,701 2,104 28% Effective tax rate 14% 10% Net income (GAAP) $16,668 $19,438 (14%) $0.27 $0.22 Weighted avera
Slide 8: 9 Months YTD Highlights: P&L
PAGE PAGE 9 MONTHS YTD HIGHLIGHTS: P&L 8 1 8 NET SALES ($MM) NET INCOME ($MM) ADJUSTED EBITDA ($MM) +48% YOY +44% vs 2019 $652 +86% YOY +59% YOY +158% vs 2019 +92% vs 2019 $453 $440 $371 $80 $298 $70 $51 $38 $42 $35 $23 $27 $19 $8 9 MOS 9 MOS 9 MOS 9 MOS 9 MOS 9 MOS 9 MOS 9 MOS 9 MOS 9 MOS 9 MOS 9 M
Slide 9: Cash Flow and Balance Sheet
PAGE PAGE 9 9 CASH FLOW AND BALANCE SHEET
Slide 10: 9 Months YTD Cash Flow and Balance Sheet Highlights
PAGE PAGE 9 MONTHS YTD CASH FLOW AND BALANCE SHEET HIGHLIGHTS 10 10 1 NET CASH PROVIDED BY ($MM) FREE CASH FLOW(1) ($MM) CASH & CASH EQUIVALENTS, OPERATING ACTIVITIES NET OF BORROWINGS ($MM) (10%) YOY (10%) YOY +54% YOY (On Rebuild of Inventory in 2021) (On Rebuild of Inventory in 2021) > 4X vs Q3 2
Slide 11: Build Up of Free Cash Flow in 9 Mos YTD 2021
PAGE PAGE BUILD UP OF FREE CASH FLOW IN 9 MOS YTD 2021 ($MM) 11 11 1 + $44.4 ($46.5) $70.5 $66.6 ($1.8 ) CapEx of Only 0.3% of Net Sales Illustrates RVLV Capital Efficiency Net Income Other Working Capital Increase in Inventory Capital Expenditures Free Cash Flow and Other Items
Slide 12: Segment Results
PAGE PAGE 12 12 1 SEGMENT RESULTS
Slide 13: Segment Results: Net Sales
PAGE PAGE SEGMENT RESULTS: NET SALES 13 13 1 REVOLVE SEGMENT NET SALES ($MM) FWRD SEGMENT NET SALES ($MM) +56% YOY +95% YOY +51% vs Q3 2019 $204.2 +112% vs Q3 2019 $135.4 $130.6 $109.5 $39.9 $82.2 $18.8 $20.5 $17.3 $16.4 Q3 17 Q3 18 Q3 19 Q3 20 Q3 21 Q3 17 Q3 18 Q3 19 Q3 20 Q3 21
Slide 14: Segment Results: Gross Profit
PAGE PAGE SEGMENT RESULTS: GROSS PROFIT 14 14 1 REVOLVE SEGMENT GROSS PROFIT ($MM) FWRD SEGMENT GROSS PROFIT ($MM) +54% YOY +121% YOY +53% vs Q3 2019 +152 vs Q3 2019 $115.1 $75.0 $74.7 $61.2 $19.4 $41.7 $8.8 $7.7 $5.9 $5.1 Q3 17 Q3 18 Q3 19 Q3 20 Q3 21 Q3 17 Q3 18 Q3 19 Q3 20 Q3 21
Slide 15: Upcoming Investor Conferences
PAGE PAGE 15 15 1 UPCOMING INVESTOR CONFERENCES CREDIT SUISSE TECHNOLOGY CONFERENCE • NOVEMBER 30, 2021 MORGAN STANLEY CONSUMER & RETAIL CONFERENCE • DECEMBER 2, 2021 BARCLAYS GLOBAL TMT CONFERENCE • DECEMBER 7, 2021
Slide 16: Appendix: Definitions and Reconciliations
PAGE PAGE 16 16 1 APPENDIX: DEFINITIONS AND RECONCILIATIONS
Slide 17: Metrics Definitions
PAGE PAGE METRICS DEFINITIONS 17 17 1 Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income before other expense (income), net, taxes, and depreciation and amortization, adjusted to exclude the effects of equity-based compensation expense, and ce
Slide 18: GAAP to Non-GAAP Reconciliation – Q3
PAGE PAGE GAAP TO NON-GAAP RECONCILIATION – Q3 18 18 1 ADJUSTED EBITDA ($MM) (1) Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 NET INCOME $2.5 $7.1 $9.6 $19.4 $16.7 (+) OTHER EXPENSE (INCOME), NET 0.3 0.2 -- 0.3 (0.2) (+) PROVISION FOR INCOME TAXES 2.0 2.2 3.3 2.1 2.7 (+) DEPRECIATION AND AMORTIZATION 0.7
Slide 19: GAAP to Non-GAAP Reconciliation – 9 Mos YTD
PAGE PAGE GAAP TO NON-GAAP RECONCILIATION – 9 MOS YTD 19 19 1 ADJUSTED EBITDA ($MM) (1) 9 MOS 2017 9 MOS 2018 9 MOS 2019 9 MOS 2020 9 MOS 2021 NET INCOME $8.1 $22.9 $27.3 $37.8 $70.5 (+) OTHER EXPENSE, NET 1.1 0.5 0.7 0.3 0.3 (+) PROVISION FOR INCOME TAXES 7.3 7.7 9.5 6.3 2.6 (+) DEPRECIATION AND AM