Q2 2021
FINANCIAL HIGHLIGHTS
August 4, 2021
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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 and our subsequent Quarterly Reports on Form 10-Q, including for the quarter ended June 30, 2021, which we expect to file with the SEC on August 5, 2021.
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 "REVOLVE", "we", "our", "us", or similar terms refer to REVOLVE and 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 REVOLVE 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 and 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.
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Q2 2021 SUMMARY | 3 |
NET SALES ($MM)
GROSS MARGIN
$161.9
$228.6
$142.8
Up 60%
YoY
Up 41% vs Q2 19
55.8% | 50.5% | 55.6% | ||||||
Q2 19 Q2 20 Q2 21
NET INCOME ($MM)
+517 BPs
YoY
Q2 19 | Q2 20 | Q2 21 |
NET SALES GROWTH VS COMPARABLE 2019 QUARTERS
+ 41% | |
+ 30% | |
Q1 21 | Q2 21 |
+11 Pts vs
Q1 Growth
$31.5 | ||||||
$12.7 | $14.2 | |||||
Q2 19 Q2 20 Q2 21
ADJUSTED EBITDA(1) ($MM)
$35.4 | ||||||
$19.0 | $20.9 | |||||
Q2 19 | Q2 20 | Q2 21 |
Up 122%
YoY
Up 70%
YoY
Note:
1. See the Appendix for a definition of Adjusted EBITDA and reconciliations to its corresponding GAAP financial measure.
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NET SALES BY GEOGRAPHY AND SEGMENT | 4 |
YoY GROWTH IN
IN Q2 2021 NET SALES
BY SEGMENT
151% | |
49% | |
REVOLVE | FORWARD |
YOY GROWTH IN | INTERNATIONAL MIX |
IN Q2 2021 NET SALES | OF TOTAL NET SALES IN Q2 '21 |
BY GEOGRAPHY | (UNCHANGED YoY) |
59% | 63% | 19% |
INTERNATIONAL NET SALES | ||
U.S. | International | U.S. NET SALES |
PAGE | |||
COST AND MARGIN STRUCTURE | 5 | ||
GAAP OPERATING | ADJUSTED EBITDA | ||||
INCOME MARGIN | MARGIN(1) | ||||
13.2% | 14.4% | 14.6% | 15.5% | ||
11.0% | 11.7% | ||||
Q2 19 | Q2 20 | Q2 21 | Q2 19 | Q2 20 | Q2 21 |
AS A % OF NET SALES | Q2 21 | Q2 20 | CHANGE | OBSERVATIONS |
Gross Margin | 55.6% | 50.5% | + 517 BPs | Healthy inventory and consumer demand led to record % of net sales at full price |
and shallower markdowns, partially offset by reduced owned brands contribution YoY | ||||
Fulfillment | (2.3%) | (2.7%) | (34 BPs) | Efficiencies gained via our continued automation efforts and resulting from additional |
volume and scale, partially offset by a higher return rate YoY | ||||
Selling and Distribution | (14.1%) | (13.3%) | + 71 BPs | Higher return rate YoY, consistent with prior commentary, and higher shipping rates |
Marketing | (15.3%) | (10.3%) | +500 BPs | Marketing in Q2 '20 was very low as COVID-19 led to the cancelation of brand |
marketing events, cost containment efforts and temporarily reduced media costs | ||||
General and Administrative | (9.6%) | (11.0%) | (144 BPs) | Driven primarily by the strong 60% YoY growth in net sales that more |
than offset the $6.2M, or 39%, YoY increase in G&A expense | ||||
GAAP Operating Income Margin(2) | 14.4% | 13.2% | + 123 BPs | |
Note:
- See the Appendix for a definition of Adjusted EBITDA margin and a reconciliation to its corresponding GAAP financial measure.
- 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 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 20:16:13 UTC.