LOS
ANGELES, Aug. 2, 2023 /PRNewswire/ -- Revolve
Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for
Millennial and Generation Z consumers, today announced financial
results for the second quarter ended June
30, 2023.
"Aspirational consumer discretionary spending remains
challenging, particularly on goods in the U.S. for our younger
customer demographic, which is evident in our second quarter
financial results," said co-founder and co-CEO Mike Karanikolas. "Regardless of macroeconomic
challenges, we remain on offense and our team continues to deliver
great progress on several important growth and efficiency
initiatives that we believe will further strengthen our foundation
for market share gains and profitable growth over the long
term."
"I'm excited and energized by the momentum in our growth
initiatives, and my confidence in the long-term is underscored by
our $100 million stock repurchase
program announced today," said co-founder and co-CEO Michael Mente. "As REVOLVE's largest
stockholders holding nearly 45% of the outstanding common stock,
Mike and I continue to see a significant runway for growth in the
years to come."
Second Quarter 2023
Financial Summary
|
|
|
|
Three Months Ended
June 30,
|
|
|
2023
|
|
|
2022
|
|
|
YoY
Change
|
|
|
(in thousands,
except percentages)
|
Net sales
|
|
$
|
273,729
|
|
|
$
|
290,054
|
|
|
(6 %)
|
Gross profit
|
|
$
|
147,698
|
|
|
$
|
162,242
|
|
|
(9 %)
|
Gross margin
|
|
|
54.0
|
%
|
|
|
55.9
|
%
|
|
|
Net income
|
|
$
|
7,303
|
|
|
$
|
16,273
|
|
|
(55 %)
|
Adjusted EBITDA
(non-GAAP financial measure)
|
|
$
|
10,377
|
|
|
$
|
26,878
|
|
|
(61 %)
|
Net cash provided by
operating activities
|
|
$
|
(14,097)
|
|
|
$
|
(29,352)
|
|
|
(52 %)
|
Free cash flow
(non-GAAP financial measure)
|
|
$
|
(15,069)
|
|
|
$
|
(30,798)
|
|
|
(51 %)
|
Operational
Metrics
|
|
|
|
Three Months Ended
June 30,
|
|
|
2023
|
|
|
2022
|
|
|
YoY
Change
|
|
|
(in thousands,
except average order value and percentages)
|
Active customers
(trailing 12 months)
|
|
|
2,458
|
|
|
|
2,165
|
|
|
14 %
|
Total orders
placed
|
|
|
2,268
|
|
|
|
2,243
|
|
|
1 %
|
Average order
value
|
|
$
|
301
|
|
|
$
|
303
|
|
|
(1 %)
|
|
|
|
|
|
|
|
|
|
|
|
Additional Second Quarter 2023 Metrics and Results
Commentary
- Trailing 12-month Active customers increased by 34,000
during the second quarter of 2023, growing to 2,458,000 as of
June 30, 2023, an increase of 14%
year-over-year.
- Net sales were $273.7
million, a year-over-year decrease of 6%.
- Gross profit was $147.7
million, a year-over-year decrease of 9%.
- Gross margin was 54.0%, a year-over-year decrease of 198
basis points, primarily reflecting a lower mix of net sales at full
price in the second quarter of 2023 as compared to the second
quarter of 2022.
- Net income was $7.3
million, a year-over-year decrease of 55%, primarily due to
the decline in net sales, reduction in gross profit year-over-year
and continued pressure on certain operating expenses.
- Adjusted EBITDA was $10.4
million, a year-over-year decrease of 61%.
- Diluted earnings per share (EPS) was $0.10, a year-over-year decrease of 55%.
Additional Net Sales Commentary
- REVOLVE segment net sales were $235.1 million, a year-over-year decrease of
4%.
- FWRD segment net sales were $38.6
million, a year-over-year decrease of 15%.
- Domestic net sales were $222.9
million, a year-over-year decrease of 7%.
- International net sales were $50.9 million, a year-over-year increase of
4%.
Cash Flow and Balance Sheet
- Net cash provided by (used in) operating activities
improved year-over-year to $(14.1)
million in the second quarter and $34.7 million in the six-month year-to-date
period, while free cash flow was $(15.1) million in the second quarter and
$32.6 million in the six-month
year-to-date period.
- Cash and cash equivalents as of June 30, 2023 were $269.3
million, an increase of $31.5
million, or 13%, from June 30,
2022 and a decrease of $14.0
million, or 5%, from $283.3
million as of March 31, 2023.
Our balance sheet as of June 30, 2023
remains debt free.
- Inventory as of June 30,
2023 was $205.3 million, a
decrease of $3.2 million, or 2%, from
$208.5 million as of June 30, 2022.
Additional trend information regarding Revolve Group's second
quarter of 2023 financial results and operating metrics is
available in the Q2 2023 Financial Highlights presentation
available on our investor relations website:
https://investors.revolve.com/financials/quarterly-results/default.aspx
Results Since the End of the Second Quarter of 2023
Net sales in July 2023 decreased
by a mid-single digit percentage year-over-year amidst continued
soft trends in the U.S., where spending on consumer discretionary
products remains relatively suppressed, particularly among our
customer demographic.
2023 Business Outlook
Based on information available to us as of August 2, 2023, we are providing the following
guidance for the full year ending December
31, 2023 and the third quarter ending September 30, 2023.
|
Updated FY 2023 Outlook
|
Prior FY 2023 Outlook
|
Gross margin
|
52% to
52.5%
|
52% to 53%
|
Fulfillment
expenses
|
3.3% of net
sales
|
3.1% of net
sales
|
Selling and
distribution expenses
|
18.3% of net
sales
|
18% of net
sales
|
Marketing
expenses
|
16% to 16.5% of net
sales
|
16% to 16.5% of net
sales
|
General and
administrative expenses
|
$115
million
|
$113 million to $115
million
|
Effective tax
rate
|
24% to 26%
|
24% to 26%
|
|
|
|
|
Third Quarter 2023 Outlook
|
|
Gross margin
|
52% to
52.3%
|
|
Fulfillment
expenses
|
3.3% of net
sales
|
|
Selling and
distribution expenses
|
18.3% of net
sales
|
|
Marketing
expenses
|
15.8% of net
sales
|
|
General and
administrative expenses
|
$29
million
|
|
|
|
|
Conference Call Information
Revolve Group management will host a call today at 4:30 pm ET / 1:30 pm
PT to discuss today's results in more detail. To
participate, please dial (888) 330-2454 within the United States or (240) 789-2714 outside
the United States approximately 10
minutes before the scheduled start of the call. The conference ID
for the call is 3102771. The conference call will also be
accessible, live via audio broadcast, on the Investor Relations
section of the Revolve Group website at investors.revolve.com. A
replay of the conference call will be available online at
investors.revolve.com. In addition, an audio replay of the call
will be available for one week following the call and can be
accessed by dialing (800) 770-2030 within the United States or (647) 362-9199 outside
the United States. The replay
conference ID is 3102771.
Forward-Looking Statements
This press release contains ''forward-looking statements''
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical or current fact included in
this press release are forward-looking statements, including but
not limited to our expectations regarding our financial performance
for the third quarter and full year of 2023 and statements
regarding macroeconomic conditions, market share gains and
profitable growth. Forward-looking statements include statements
containing words such as "expect," "anticipate," "believe,"
"project," "will" and similar expressions intended to identify
forward-looking statements. These forward-looking statements are
based on our current expectations. Forward-looking statements
involve risks and uncertainties. Our actual results and the timing
of events could differ materially from those anticipated in such
forward-looking statements as a result of these risks and
uncertainties, which include, without limitation, risks related to
changing economic conditions and their impact on consumer demand
and our business, operating results and financial condition; demand
for our products; supply chain challenges; inflation; Russia's war against Ukraine; our fluctuating operating results;
seasonality in our business; our ability to acquire products on
reasonable terms; our e-commerce 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; the impact of the COVID-19 pandemic and
other health crises on our business, operations and financial
results; 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, 2022 and our subsequent
Quarterly Reports on Form 10-Q, including for the quarter ended
June 30, 2023, which we expect to
file with the SEC on August 2, 2023.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in
their entirety by this cautionary statement, and we undertake no
obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date hereof.
Use of Non-GAAP Financial Measures and Other Operating
Metrics
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with Generally
Accepted Accounting Principles in the
United States of America (GAAP), we reference in this press
release and the accompanying tables the following non-GAAP
financial measures: Adjusted EBITDA and free cash
flow.
The presentation of this non-GAAP financial information is not
intended to be considered in isolation or as a substitute for, or
superior to, the financial information prepared and presented in
accordance with GAAP, and our non-GAAP measures may be different
from non-GAAP 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 captioned "Reconciliation of
Non-GAAP Financial Measures" included at the end of this
release.
Definitions of our non-GAAP financial measures and other
operating metrics are presented below.
Adjusted EBITDA
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-routine items.
Adjusted EBITDA is a key measure used by management to evaluate our
operating performance, generate future operating plans and make
strategic decisions regarding the allocation of capital. In
particular, the exclusion of certain expenses in calculating
Adjusted EBITDA facilitates operating performance comparisons on a
period-to-period basis and, in the case of exclusion of the impact
of equity-based compensation, excludes an item that we do not
consider to be indicative of our core operating performance.
Free Cash Flow
Free cash flow is a non-GAAP financial measure that we calculate
as net cash provided by operating activities less cash used in
purchases of property and equipment. We view free cash flow as an
important indicator of our liquidity because it measures the amount
of cash we generate. Free cash flow also reflects changes in
working capital.
Active Customers
We define an active customer as a unique customer account from
which a purchase was made across our platform at least once in the
preceding 12-month period. In any particular period, we determine
our number of active customers by counting the total number of
customers who have made at least one purchase in the preceding
12-month period, measured from the last date of such period. We
view the number of active customers as a key indicator of our
growth, the reach of our sites, the value proposition and consumer
awareness of our brand, the continued use of our sites by our
customers and their desire to purchase our products.
Total Orders Placed
We define total orders placed as the total number of orders
placed by our customers, prior to product returns, across our
platform in any given period. We view total orders placed as
a key indicator of the velocity of our business and an indication
of the desirability of our products and sites to our customers.
Total orders placed, together with average order value, is an
indicator of the net sales we expect to recognize in a given
period.
Average Order Value
We define average order value as the sum of the total gross
sales from our sites in a given period, prior to product returns,
divided by the total orders placed in that period. We believe our
high average order value demonstrates the premium nature of our
product assortment. Average order value varies depending on the
site through which we sell merchandise, the mix of product
categories sold, the number of units in each order, the percentage
of sales at full price, and for sales at less than full price, the
level of markdowns.
About Revolve Group, Inc.
Revolve Group, Inc. (NYSE: RVLV) is the next-generation fashion
retailer for Millennial and Generation Z consumers. As a trusted
premium lifestyle brand and a go-to online source for discovery and
inspiration, we deliver an engaging customer experience from a vast
yet curated offering of apparel, footwear, accessories, beauty and
home products. Our dynamic platform connects a deeply engaged
community of millions of consumers, thousands of global fashion
influencers and more than 1,000 emerging, established and owned
brands.
We were founded in 2003 by our co-CEOs, Michael Mente and Mike
Karanikolas. We sell merchandise through two complementary
segments, REVOLVE and FWRD, that leverage one platform. Through
REVOLVE, we offer an assortment of premium apparel, footwear,
accessories and beauty products from emerging, established and
owned brands. Through FWRD, we offer an assortment of curated and
elevated iconic and emerging luxury brands. For more
information, visit www.revolve.com.
Contacts:
Investors:
Erik Randerson, CFA
562.677.9513
IR@revolve.com
Media:
Jennifer Walker
revolve@walkerdrawas.com
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
(In thousands, except
per share data)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net sales
|
|
$
|
273,729
|
|
|
$
|
290,054
|
|
|
$
|
553,338
|
|
|
$
|
573,552
|
|
Cost of
sales
|
|
|
126,031
|
|
|
|
127,812
|
|
|
|
266,420
|
|
|
|
256,899
|
|
Gross
profit
|
|
|
147,698
|
|
|
|
162,242
|
|
|
|
286,918
|
|
|
|
316,653
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
|
9,401
|
|
|
|
7,910
|
|
|
|
18,472
|
|
|
|
15,200
|
|
Selling and
distribution
|
|
|
50,893
|
|
|
|
51,967
|
|
|
|
102,351
|
|
|
|
98,553
|
|
Marketing
|
|
|
51,497
|
|
|
|
51,921
|
|
|
|
89,840
|
|
|
|
97,171
|
|
General and
administrative
|
|
|
28,552
|
|
|
|
31,164
|
|
|
|
56,644
|
|
|
|
57,999
|
|
Total operating
expenses
|
|
|
140,343
|
|
|
|
142,962
|
|
|
|
267,307
|
|
|
|
268,923
|
|
Income from
operations
|
|
|
7,355
|
|
|
|
19,280
|
|
|
|
19,611
|
|
|
|
47,730
|
|
Other income,
net
|
|
|
(2,381)
|
|
|
|
(1,813)
|
|
|
|
(8,966)
|
|
|
|
(2,329)
|
|
Income before income
taxes
|
|
|
9,736
|
|
|
|
21,093
|
|
|
|
28,577
|
|
|
|
50,059
|
|
Provision for income
taxes
|
|
|
2,433
|
|
|
|
4,820
|
|
|
|
7,102
|
|
|
|
11,218
|
|
Net income
|
|
$
|
7,303
|
|
|
$
|
16,273
|
|
|
$
|
21,475
|
|
|
$
|
38,841
|
|
Earnings per share of
Class A and Class B
common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.10
|
|
|
$
|
0.22
|
|
|
$
|
0.29
|
|
|
$
|
0.53
|
|
Diluted
|
|
$
|
0.10
|
|
|
$
|
0.22
|
|
|
$
|
0.29
|
|
|
$
|
0.52
|
|
Weighted average number
of shares of Class A and
Class B common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
73,442
|
|
|
|
73,312
|
|
|
|
73,406
|
|
|
|
73,289
|
|
Diluted
|
|
|
74,081
|
|
|
|
74,635
|
|
|
|
74,229
|
|
|
|
74,720
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In thousands,
except share and per share data)
|
|
|
|
June 30,
|
|
|
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
269,329
|
|
|
$
|
234,724
|
|
Accounts receivable,
net
|
|
|
11,198
|
|
|
|
5,421
|
|
Inventory
|
|
|
205,313
|
|
|
|
215,224
|
|
Income taxes
receivable
|
|
|
6,096
|
|
|
|
2,974
|
|
Prepaid expenses and
other current assets
|
|
|
59,385
|
|
|
|
59,874
|
|
Total current
assets
|
|
|
551,321
|
|
|
|
518,217
|
|
Property and equipment
(net of accumulated depreciation of $15,457 and $13,081 as of
June 30, 2023 and December 31, 2022,
respectively)
|
|
|
8,404
|
|
|
|
8,934
|
|
Right-of-use lease
assets
|
|
|
39,654
|
|
|
|
22,964
|
|
Intangible assets,
net
|
|
|
1,791
|
|
|
|
1,600
|
|
Goodwill
|
|
|
2,042
|
|
|
|
2,042
|
|
Other assets
|
|
|
1,236
|
|
|
|
807
|
|
Deferred income
taxes
|
|
|
24,754
|
|
|
|
24,754
|
|
Total
assets
|
|
$
|
629,202
|
|
|
$
|
579,318
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
46,007
|
|
|
$
|
50,789
|
|
Income taxes
payable
|
|
|
1,143
|
|
|
|
229
|
|
Accrued
expenses
|
|
|
35,980
|
|
|
|
38,266
|
|
Returns
reserve
|
|
|
66,350
|
|
|
|
63,381
|
|
Current lease
liabilities
|
|
|
5,456
|
|
|
|
5,844
|
|
Other current
liabilities
|
|
|
30,797
|
|
|
|
22,577
|
|
Total current
liabilities
|
|
|
185,733
|
|
|
|
181,086
|
|
Non-current lease
liabilities
|
|
|
37,427
|
|
|
|
18,659
|
|
Total
liabilities
|
|
|
223,160
|
|
|
|
199,745
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Class A common stock,
$0.001 par value; 1,000,000,000 shares authorized as of
June 30, 2023 and December 31, 2022; 40,880,898 and
40,766,510 shares issued
and outstanding as of June 30, 2023 and December 31,
2022, respectively
|
|
|
41
|
|
|
|
41
|
|
Class B common stock,
$0.001 par value; 125,000,000 shares authorized as of
June 30, 2023 and December 31, 2022; 32,597,119 and
32,597,119 shares issued
and outstanding as of June 30, 2023 and December 31,
2022, respectively
|
|
|
33
|
|
|
|
33
|
|
Additional paid-in
capital
|
|
|
113,749
|
|
|
|
110,338
|
|
Retained
earnings
|
|
|
292,219
|
|
|
|
269,161
|
|
Total stockholders'
equity
|
|
|
406,042
|
|
|
|
379,573
|
|
Total liabilities and
stockholders' equity
|
|
$
|
629,202
|
|
|
$
|
579,318
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
21,475
|
|
|
$
|
38,841
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
2,459
|
|
|
|
2,305
|
|
Equity-based
compensation
|
|
|
3,001
|
|
|
|
2,886
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(5,777)
|
|
|
|
(3,175)
|
|
Inventories
|
|
|
9,911
|
|
|
|
(37,244)
|
|
Income taxes
receivable
|
|
|
(3,122)
|
|
|
|
(3,445)
|
|
Prepaid expenses and
other current assets
|
|
|
489
|
|
|
|
(14,905)
|
|
Other
assets
|
|
|
(429)
|
|
|
|
(510)
|
|
Accounts
payable
|
|
|
(4,782)
|
|
|
|
5,742
|
|
Income taxes
payable
|
|
|
914
|
|
|
|
96
|
|
Accrued
expenses
|
|
|
(2,286)
|
|
|
|
9,120
|
|
Returns
reserve
|
|
|
2,969
|
|
|
|
20,497
|
|
Right-of-use lease
assets and current and non-current
lease liabilities
|
|
|
1,690
|
|
|
|
324
|
|
Other current
liabilities
|
|
|
8,220
|
|
|
|
3,913
|
|
Net cash provided by
operating activities
|
|
|
34,732
|
|
|
|
24,445
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(2,120)
|
|
|
|
(2,516)
|
|
Net cash used in
investing activities
|
|
|
(2,120)
|
|
|
|
(2,516)
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from the
exercise of stock options, net
|
|
|
410
|
|
|
|
368
|
|
Net cash provided by
financing activities
|
|
|
410
|
|
|
|
368
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
1,583
|
|
|
|
(2,896)
|
|
Net increase in cash
and cash equivalents
|
|
|
34,605
|
|
|
|
19,401
|
|
Cash and cash
equivalents, beginning of period
|
|
|
234,724
|
|
|
|
218,455
|
|
Cash and cash
equivalents, end of period
|
|
$
|
269,329
|
|
|
$
|
237,856
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
|
Income taxes, net of
refund
|
|
$
|
9,221
|
|
|
$
|
14,608
|
|
Operating
leases
|
|
$
|
3,549
|
|
|
$
|
2,504
|
|
Supplemental
disclosure of non-cash activities:
|
|
|
|
|
|
|
Lease assets obtained
in exchange for new operating lease liabilities
|
|
$
|
20,452
|
|
|
$
|
11,481
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
SEGMENT
INFORMATION
|
(Unaudited)
|
|
The following table
summarizes our net sales and gross profit for each of our
reportable segments (in thousands):
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
Net
sales
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
REVOLVE
|
|
$
|
235,149
|
|
|
$
|
244,729
|
|
|
$
|
466,802
|
|
|
$
|
482,469
|
|
FWRD
|
|
|
38,580
|
|
|
|
45,325
|
|
|
|
86,536
|
|
|
|
91,083
|
|
Total
|
|
$
|
273,729
|
|
|
$
|
290,054
|
|
|
$
|
553,338
|
|
|
$
|
573,552
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
REVOLVE
|
|
$
|
131,235
|
|
|
$
|
140,825
|
|
|
$
|
251,471
|
|
|
$
|
274,518
|
|
FWRD
|
|
|
16,463
|
|
|
|
21,417
|
|
|
|
35,447
|
|
|
|
42,135
|
|
Total
|
|
$
|
147,698
|
|
|
$
|
162,242
|
|
|
$
|
286,918
|
|
|
$
|
316,653
|
|
|
|
The following table lists net sales by geographic area (in
thousands):
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
United
States
|
|
$
|
222,860
|
|
|
$
|
240,909
|
|
|
$
|
449,576
|
|
|
$
|
478,784
|
|
Rest of the
world
|
|
|
50,869
|
|
|
|
49,145
|
|
|
|
103,762
|
|
|
|
94,768
|
|
Total
|
|
$
|
273,729
|
|
|
$
|
290,054
|
|
|
$
|
553,338
|
|
|
$
|
573,552
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
KEY OPERATING AND
FINANCIAL METRICS
|
(Unaudited)
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(in thousands,
except average order value and percentages)
|
|
Gross margin
|
|
|
54.0
|
%
|
|
|
55.9
|
%
|
|
|
51.9
|
%
|
|
|
55.2
|
%
|
Adjusted
EBITDA
|
|
$
|
10,377
|
|
|
$
|
26,878
|
|
|
$
|
25,387
|
|
|
$
|
58,421
|
|
Free cash
flow
|
|
$
|
(15,069)
|
|
|
$
|
(30,798)
|
|
|
$
|
32,612
|
|
|
$
|
21,929
|
|
Active
customers
|
|
|
2,458
|
|
|
|
2,165
|
|
|
|
2,458
|
|
|
|
2,165
|
|
Total orders
placed
|
|
|
2,268
|
|
|
|
2,243
|
|
|
|
4,546
|
|
|
|
4,399
|
|
Average order
value
|
|
$
|
301
|
|
|
$
|
303
|
|
|
$
|
294
|
|
|
$
|
296
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
|
A reconciliation of
non-GAAP Adjusted EBITDA to net income for the three and six months
ended June 30, 2023 and 2022 is as follows:
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(in
thousands)
|
|
Net income
|
|
$
|
7,303
|
|
|
$
|
16,273
|
|
|
$
|
21,475
|
|
|
$
|
38,841
|
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
(2,381)
|
|
|
|
(1,813)
|
|
|
|
(8,966)
|
|
|
|
(2,329)
|
|
Provision for income
taxes
|
|
|
2,433
|
|
|
|
4,820
|
|
|
|
7,102
|
|
|
|
11,218
|
|
Depreciation and
amortization
|
|
|
1,241
|
|
|
|
1,203
|
|
|
|
2,459
|
|
|
|
2,305
|
|
Equity-based
compensation
|
|
|
1,723
|
|
|
|
1,395
|
|
|
|
3,001
|
|
|
|
2,886
|
|
Non-routine
items(1)
|
|
|
58
|
|
|
|
5,000
|
|
|
|
316
|
|
|
|
5,500
|
|
Adjusted
EBITDA
|
|
$
|
10,377
|
|
|
$
|
26,878
|
|
|
$
|
25,387
|
|
|
$
|
58,421
|
|
|
|
(1)
|
Non-routine items in
the three and six months ended June 30, 2023 and 2022 included an
accrual and a charge for a settled legal matter and an accrual for
a separate pending legal matter.
|
|
|
A reconciliation of
non-GAAP free cash flow to net cash provided by operating
activities for the three and six months ended June 30, 2023 and
2022 is as follows:
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(in thousands)
|
|
Net cash (used in)
provided by operating activities
|
|
$
|
(14,097)
|
|
|
$
|
(29,352)
|
|
|
$
|
34,732
|
|
|
$
|
24,445
|
|
Purchases of property
and equipment
|
|
|
(972)
|
|
|
$
|
(1,446)
|
|
|
|
(2,120)
|
|
|
|
(2,516)
|
|
Free cash
flow
|
|
$
|
(15,069)
|
|
|
$
|
(30,798)
|
|
|
$
|
32,612
|
|
|
$
|
21,929
|
|
Net cash used in
investing activities
|
|
$
|
(972)
|
|
|
$
|
(1,446)
|
|
|
$
|
(2,120)
|
|
|
$
|
(2,516)
|
|
Net cash provided by
financing activities
|
|
$
|
249
|
|
|
$
|
242
|
|
|
$
|
410
|
|
|
$
|
368
|
|
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SOURCE Revolve Group, Inc.