Revolve : Third Quarter 2020 Results Presentation

Q3 2020 RESULTS

November 11, 2020

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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; general economic conditions; our fluctuating operating results; seasonality in our business; our ability to acquire products on reasonable terms; our online business model; demand for our products; 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 the potential impact of coronavirus on our supply chain and operating results. Additional risks and uncertainties are described in greater detail under the heading "Risk Factors" and elsewhere in our filings with the Securities and Exchange Commission, including without limitation, our Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent Quarterly Reports on Form 10-Q.

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 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 see the tables on slide 17 titled "GAAP to Non-GAAP Reconciliation" for Adjusted EBITDA and free cash flow.

SUMMARY: SOLID QUARTER ON KEY PRIORITIES IN CURRENT ENVIRONMENT	PAGE
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(YoY comparisons skewed by COVID-19 impact in Q3 2020)

IMPROVED

TOP-LINE TREND

YoY Growth (Decline)

in Net Sales

(2%)

(12%)

Q2 2020

Q3 2020

HIGHER	FREE CASH FLOW FURTHER
INVENTORY TURNS	STRENGTHENED BALANCE SHEET

YoY Growth (Decline)	Net Cash Position ($MM)
for Q3 2020		(Cash less borrowings)		$143.7
						$126.8
	(2%)				$73.6
				$65.4
		$44.8	$51.1
(29%)
Inventory	Net Sales	Q2 19	Q3 19	Q4 19	Q1 20	Q2 20	Q3 20

NET SALES ($MM)

(2%) YoY

$154.2$151.0

Q3 2019

Q3 2020

INCOME STATEMENT HIGHLIGHTS

(YoY comparisons skewed by COVID-19 impact in Q3 2020)

GROSS MARGIN

NET INCOME ($MM)

+164 BPs YoY	+103% YoY
		$19.4
	55.3%	Quarterly
53.6%	Record
		$9.6

Q3 2019

Q3 2020

Q3 2019

Q3 2020

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ADJUSTED EBITDA(1) ($MM)

% ADJ. EBITDA MARGIN

+66% YoY

$24.0

Quarterly

Record

$14.4

15.9%

9.4%

Q3 2019

Q3 2020

NOTE: Q3 2019 results from the prior year reflect $1.5 million in net sales realized as a result of a change in estimate related to store credit breakage.

Note:

1. See slide 16 for a definition of Adjusted EBITDA and slide 17 for a reconciliation to Net Income, its corresponding GAAP financial measure.