Q4 & FY 2021
FINANCIAL HIGHLIGHTS
February 23, 2022
PAGE
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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 pandemic on our business, operations and financial results. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," or similar expressions and the negatives of those terms.
Forward-looking statements are based on information available at the time those statements are made and on our current expectations and projections about future events, and are subject to risks and uncertainties. If any of these risks or uncertainties materialize or if any assumptions prove incorrect, actual performance or results may differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, without limitation, risks related to the continued impact of the COVID-19 pandemic on our business, operations and financial results; demand for our products; general economic conditions; our fluctuating operating results; seasonality in our business; our ability to acquire products on reasonable terms; our online business model; our ability to attract customers in a cost effective manner; the strength of our brand; competition; fraud; system interruptions; our ability to fulfill orders; and other risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, or SEC, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2020, our subsequent Quarterly Reports on Form 10-Q, and our Annual Report on Form 10-K for the year ended December 31, 2021, which we expect to file with the SEC in late February 2022.
We undertake no obligation to update any forward-looking statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
Unless otherwise indicated, all references in this presentation to "we", "our", "us", or similar terms refer to Revolve Group, Inc. and its subsidiaries.
Use of Non-GAAP Financial Measures
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non- GAAP financial measures used by us may differ from the non-GAAP financial measures used by other companies. We use these non-GAAP financial measures to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Our management believes that these non- GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance, when analyzing historical performance and liquidity and when planning, forecasting, and analyzing future periods.
For a reconciliation of these non-GAAP financial measures to GAAP measures, please refer to the Appendix.
Q4 2021 SUMMARY | PAGE |
3 | |
NET SALES ($MM)
$239.8 | ||
$147.6 | $140.8 | |
Q4 19 | Q4 20 | Q4 21 |
+70% YoY
+63% vs Q4 19
GROSS MARGIN
52.9% | 56.0% | 54.8% | ||||||||
Q4 19 | Q4 20 | Q4 21 | ||||||||
NET INCOME ($MM) | ||||||||||
$29.4 | ||||||||||
$19.0 | ||||||||||
$8.4 | ||||||||||
(116 BPs) YoY
+189 BPs vs Q4 19
+55% YoY
NET SALES GROWTH VS
COMPARABLE 2019 QUARTERS
+ 58% | + 63% | ||
+ 41% | |||
+ 30% | Accelerated | ||
Again in Q4 | |||
Q1 21 | Q2 21 | Q3 21 | Q4 21 |
Q4 19 | Q4 20 | Q4 21 | |||||||
ADJUSTED EBITDA(1) ($MM) | |||||||||
$34.2 | |||||||||
$13.7 | $18.7 | ||||||||
Q4 19 | Q4 20 | Q4 21 | |||||||
+250% vs Q4 19
+82% YoY
+150% vs Q4 19
Note:
1. See the Appendix for a definition of Adjusted EBITDA and reconciliations to its corresponding GAAP financial measure.
NET SALES BY SEGMENT AND GEOGRAPHY | PAGE |
4 | |
YoY GROWTH IN
Q4 2021 NET SALES
BY SEGMENT
+ 83% | |
+ 68% | |
REVOLVE | FWRD |
YoY GROWTH IN | NET SALES BY GEOGRAPHY |
Q4 2021 NET SALES | IN Q4 2021 |
BY GEOGRAPHY |
+ 80% | 17% | 83% | |
+ 34% | |||
U.S. NET SALES | |||
U.S. | INTERNATIONAL | INTERNATIONAL NET SALES |
COST AND MARGIN STRUCTURE | PAGE |
5 | |
GAAP OPERATING INCOME MARGIN
11.8% | 13.3% | |
7.2% | ||
Q4 19 | Q4 20 | Q4 21 |
ADJUSTED EBITDA MARGIN(1)
13.3% | 14.3% | |
9.3% | ||
Q4 19 | Q4 20 | Q4 21 |
AS A % OF NET SALES | Q4 21 | Q4 20 | CHANGE | OBSERVATIONS |
Gross Profit | 54.8% | 56.0% | (116 BPs) | Gross margin decreased compared to the record gross margin performance in Q4 2020, |
yet increased ~2 points when compared to Q4 2019. | ||||
Efficiencies were gained as a result of our higher average order values, incremental | ||||
Fulfillment | (2.4%) | (2.9%) | (41 BPs) | efficiencies gained with volume and scale, and continued automation efforts. These |
benefits were partially offset by a higher return rate year-over-year. | ||||
Selling and Distribution | (15.9%) | (13.4%) | +251 BPs | Higher return rate year-over-year as the product mix normalizes, consistent with |
commentary on recent investor conference calls, and higher shipping rates. | ||||
YoY efficiency primarily reflects the timing of brand marketing investments that | ||||
Marketing | (13.5%) | (14.8%) | (135 BPs) | benefitted Q4 2021, temporarily reducing marketing spend as a percentage of net sales |
to below our normalized level of marketing investment. | ||||
General and Administrative | (9.7%) | (13.1%) | (343 BPs) | Driven primarily by the strong 70% year-over-year growth in net sales that more than |
offset the $4.8M, or 26%, year-over-year increase in G&A expense. | ||||
GAAP Operating Income Margin(2) | 13.3% | 11.8% | 151 BPs |
Notes:
1. See the Appendix for a definition of Adjusted EBITDA margin.
2. Due to rounding, some numbers presented may not add up precisely to the totals provided.
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Revolve Group Inc. published this content on 23 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2022 21:27:14 UTC.