LOS
ANGELES, Nov. 1, 2023 /PRNewswire/ -- Revolve
Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for
Millennial and Generation Z consumers, today announced financial
results for the third quarter ended September 30, 2023.
"We achieved a key 2023 objective of rebalancing our inventory
as the spread between our year-over-year inventory and sales trends
was favorable in the third quarter for the first time in more than
two years," said co-founder and co-CEO Mike
Karanikolas. "This important accomplishment
contributed to our strong and increased cash flows year-over-year,
even in an environment where spending on discretionary products by
our consumer demographic continues to be pressured."
"A key highlight of the third quarter was surpassing 2.5 million
active customers, an increase of 12% year-over-year, and over one
million more active customers than the third quarter of 2019," said
co-founder and co-CEO Michael
Mente. "While average spend per active customer has
decreased year-over-year in this very challenging environment, we
view this as a temporary dynamic that will normalize as the
environment improves. As we look ahead, our team is energized
by the opportunity to drive improved results across a wide range of
longer-term initiatives that leverage our core competencies of
technology innovation, operating efficiency and brand building that
have served us well for the past 20 years."
Third Quarter 2023 Financial
Summary
|
|
|
|
Three Months Ended
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
YoY
Change
|
|
|
(in thousands,
except percentages)
|
Net sales
|
|
$
|
257,603
|
|
|
$
|
268,711
|
|
|
(4 %)
|
Gross profit
|
|
$
|
133,232
|
|
|
$
|
142,382
|
|
|
(6 %)
|
Gross margin
|
|
|
51.7
|
%
|
|
|
53.0
|
%
|
|
|
Net income
|
|
$
|
3,178
|
|
|
$
|
11,988
|
|
|
(73 %)
|
Adjusted EBITDA
(non-GAAP financial measure)
|
|
$
|
9,484
|
|
|
$
|
17,676
|
|
|
(46 %)
|
Net cash provided by
operating activities
|
|
$
|
12,486
|
|
|
$
|
10,006
|
|
|
25 %
|
Free cash flow
(non-GAAP financial measure)
|
|
$
|
11,492
|
|
|
$
|
8,618
|
|
|
33 %
|
Operational
Metrics
|
|
|
|
Three Months Ended
September 30,
|
|
|
2023
|
|
|
2022
|
|
|
YoY
Change
|
|
|
(in thousands,
except average order value and percentages)
|
Active customers
(trailing 12 months)
|
|
|
2,510
|
|
|
|
2,249
|
|
|
12 %
|
Total orders
placed
|
|
|
2,133
|
|
|
|
1,951
|
|
|
9 %
|
Average order
value
|
|
$
|
299
|
|
|
$
|
320
|
|
|
(7 %)
|
Additional Third Quarter 2023 Metrics and Results
Commentary
- Trailing 12-month Active customers increased by 52,000
during the third quarter of 2023, growing to 2,510,000 as of
September 30, 2023, an increase of
12% year-over-year.
- Net sales were $257.6
million, a year-over-year decrease of 4%.
- Gross profit was $133.2
million, a year-over-year decrease of 6%.
- Gross margin was 51.7%, a year-over-year decrease of 127
basis points, primarily reflecting a lower mix of net sales at full
price and a lower mix of owned brands as a percentage of Revolve
segment net sales in the third quarter of 2023 as compared to the
third quarter of 2022.
- Operating expenses increased year over year, despite the
year-over-year decline in net sales, due to a $6.6 million accrual for a pending legal matter
included in general and administrative expenses and continued
pressure on selling and distribution expenses and fulfillment
expenses primarily due to a higher return rate year-over-year,
partially offset by increased marketing efficiency in the third
quarter of 2023.
- Net income was $3.2
million, a year-over-year decrease of 73%, primarily due to
the decline in net sales, reduction in gross profit year-over-year,
continued pressure on certain operating expenses, and the
$6.6 million accrual for a pending
legal matter.
- Adjusted EBITDA was $9.5
million, a year-over-year decrease of 46%.
- Diluted earnings per share (EPS) was $0.04, a year-over-year decrease of 75% that was
negatively impacted by the accrual for a pending legal matter of
$6.6 million, or $0.07 per diluted share.
Additional Net Sales Commentary
- REVOLVE segment net sales were $217.7 million, a year-over-year decrease of
2%.
- FWRD segment net sales were $39.9
million, a year-over-year decrease of 14%.
- Domestic net sales were $207.2
million, a year-over-year decrease of 5%.
- International net sales were $50.4 million, a year-over-year decrease of
1%.
Cash Flow and Balance Sheet
- Net cash provided by operating activities was
$12.5 million in the third quarter
and $47.2 million in the nine-month
year-to-date period, a year-over-year increase of 25% and 37%,
respectively.
- Free cash flow was $11.5
million in the third quarter and $44.1 million in the nine-month year-to-date
period, a year-over-year increase of 33% and 44%,
respectively.
- The company repurchased 907,219 shares of its Class A common
stock during the third quarter of 2023, at an average cost of
$13.87 per share. $87.4 million remained available under the
company's $100 million stock
repurchase program as of September 30,
2023.
- Cash and cash equivalents as of September 30, 2023 were $266.9 million, an increase of $22.9 million, or 9%, from September 30, 2022 and a decrease of $2.4 million, or 1%, from $269.3 million as of June
30, 2023. Our balance sheet as of September 30, 2023 remains debt free.
- Inventory as of September 30,
2023 was $202.9 million, a
decrease of $10.5 million, or 5%,
from $213.3 million as of
September 30, 2022.
Additional trend information regarding Revolve Group's third
quarter of 2023 financial results and operating metrics is
available in the Q3 2023 Financial Highlights presentation
available on our investor relations website:
https://investors.revolve.com/events-and-presentations/default.aspx
Results Since the End of the Third Quarter of 2023
Net
sales in October 2023 decreased by a
low-single digit percentage year-over-year amidst ongoing
uncertainty in the macroeconomic and geopolitical environment that
we believe continues to pressure consumer spending on discretionary
products.
2023 Business Outlook
Based on information available
to us as of November 1, 2023, we are
providing the following guidance for the full year ending
December 31, 2023 and the fourth
quarter ending December 31,
2023.
|
Updated FY 2023
Outlook
|
Prior FY 2023
Outlook
|
Gross margin
|
51.8% to
51.9%
|
52% to 52.5%
|
Fulfillment
expenses
|
3.5% of net
sales
|
3.3% of net
sales
|
Selling and
distribution expenses
|
18.7% of net
sales
|
18.3% of net
sales
|
Marketing
expenses
|
16.2% to 16.3% of net
sales
|
16% to 16.5% of net
sales
|
General and
administrative expenses
|
$121.5 million,
including the $6.6 million
accrual for a pending legal matter in Q3 2023
|
$115 million
|
Effective tax
rate
|
24% to 26%
|
24% to 26%
|
|
|
|
|
Fourth Quarter 2023
Outlook
|
|
Gross margin
|
51.7% to
52.0%
|
|
Fulfillment
expenses
|
3.6% of net
sales
|
|
Selling and
distribution expenses
|
19.0% of net
sales
|
|
Marketing
expenses
|
17.0% to 17.2% of net
sales
|
|
General and
administrative expenses
|
$29.6
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 average spending per active customer, our
financial performance for the fourth quarter and full year of 2023
and statements regarding macroeconomic conditions. 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; the war in Israel; 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; the effect of pending or threatened claims, lawsuits,
government investigations, other legal or regulatory proceedings or
commercial or contractual disputes; 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 September 30, 2023, which we expect to file with
the SEC on November 1, 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
September 30,
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
Net sales
|
|
$
|
257,603
|
|
|
$
|
268,711
|
|
|
$
|
810,941
|
|
|
$
|
842,263
|
|
Cost of
sales
|
|
|
124,371
|
|
|
|
126,329
|
|
|
|
390,791
|
|
|
|
383,228
|
|
Gross
profit
|
|
|
133,232
|
|
|
|
142,382
|
|
|
|
420,150
|
|
|
|
459,035
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fulfillment
|
|
|
9,185
|
|
|
|
8,072
|
|
|
|
27,657
|
|
|
|
23,272
|
|
Selling and
distribution
|
|
|
48,925
|
|
|
|
46,477
|
|
|
|
151,276
|
|
|
|
145,030
|
|
Marketing
|
|
|
39,581
|
|
|
|
44,584
|
|
|
|
129,421
|
|
|
|
141,755
|
|
General and
administrative
|
|
|
35,217
|
|
|
|
28,498
|
|
|
|
91,861
|
|
|
|
86,497
|
|
Total operating
expenses
|
|
|
132,908
|
|
|
|
127,631
|
|
|
|
400,215
|
|
|
|
396,554
|
|
Income from
operations
|
|
|
324
|
|
|
|
14,751
|
|
|
|
19,935
|
|
|
|
62,481
|
|
Other income,
net
|
|
|
(3,984)
|
|
|
|
(1,440)
|
|
|
|
(12,950)
|
|
|
|
(3,769)
|
|
Income before income
taxes
|
|
|
4,308
|
|
|
|
16,191
|
|
|
|
32,885
|
|
|
|
66,250
|
|
Provision for income
taxes
|
|
|
1,130
|
|
|
|
4,203
|
|
|
|
8,232
|
|
|
|
15,421
|
|
Net income
|
|
$
|
3,178
|
|
|
$
|
11,988
|
|
|
$
|
24,653
|
|
|
$
|
50,829
|
|
Earnings per share of
Class A and Class B
common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.04
|
|
|
$
|
0.16
|
|
|
$
|
0.34
|
|
|
$
|
0.69
|
|
Diluted
|
|
$
|
0.04
|
|
|
$
|
0.16
|
|
|
$
|
0.33
|
|
|
$
|
0.68
|
|
Weighted average number
of shares of Class A and
Class B common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
73,262
|
|
|
|
73,328
|
|
|
|
73,358
|
|
|
|
73,302
|
|
Diluted
|
|
|
73,716
|
|
|
|
74,354
|
|
|
|
74,058
|
|
|
|
74,598
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited) (In thousands, except share and
per share data)
|
|
|
|
September 30,
|
|
|
December
31,
|
|
|
|
2023
|
|
|
2022
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
266,899
|
|
|
$
|
234,724
|
|
Accounts receivable,
net
|
|
|
12,614
|
|
|
|
5,421
|
|
Inventory
|
|
|
202,877
|
|
|
|
215,224
|
|
Income taxes
receivable
|
|
|
7,555
|
|
|
|
2,974
|
|
Prepaid expenses and
other current assets
|
|
|
63,578
|
|
|
|
59,874
|
|
Total current
assets
|
|
|
553,523
|
|
|
|
518,217
|
|
Property and equipment
(net of accumulated depreciation of $16,697 and $13,081 as of
September 30, 2023 and December 31, 2022,
respectively)
|
|
|
8,062
|
|
|
|
8,934
|
|
Right-of-use lease
assets
|
|
|
38,041
|
|
|
|
22,964
|
|
Intangible assets,
net
|
|
|
1,834
|
|
|
|
1,600
|
|
Goodwill
|
|
|
2,042
|
|
|
|
2,042
|
|
Other assets
|
|
|
1,241
|
|
|
|
807
|
|
Deferred income
taxes
|
|
|
24,754
|
|
|
|
24,754
|
|
Total
assets
|
|
$
|
629,497
|
|
|
$
|
579,318
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
44,479
|
|
|
$
|
50,789
|
|
Income taxes
payable
|
|
|
1,435
|
|
|
|
229
|
|
Accrued
expenses
|
|
|
42,639
|
|
|
|
38,266
|
|
Returns
reserve
|
|
|
72,137
|
|
|
|
63,381
|
|
Current lease
liabilities
|
|
|
6,249
|
|
|
|
5,844
|
|
Other current
liabilities
|
|
|
30,465
|
|
|
|
22,577
|
|
Total current
liabilities
|
|
|
197,404
|
|
|
|
181,086
|
|
Non-current lease
liabilities
|
|
|
35,567
|
|
|
|
18,659
|
|
Total
liabilities
|
|
|
232,971
|
|
|
|
199,745
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Class A common stock,
$0.001 par value; 1,000,000,000 shares authorized as of
September 30, 2023 and December 31, 2022; 39,979,289
and 40,766,510 shares
issued and outstanding as of September 30, 2023 and
December 31, 2022,
respectively
|
|
|
40
|
|
|
|
41
|
|
Class B common stock,
$0.001 par value; 125,000,000 shares authorized as of
September 30, 2023 and December 31, 2022; 32,597,119
and 32,597,119 shares
issued and outstanding as of September 30, 2023 and
December 31, 2022,
respectively
|
|
|
33
|
|
|
|
33
|
|
Additional paid-in
capital
|
|
|
115,053
|
|
|
|
110,338
|
|
Retained
earnings
|
|
|
281,400
|
|
|
|
269,161
|
|
Total stockholders'
equity
|
|
|
396,526
|
|
|
|
379,573
|
|
Total liabilities and
stockholders' equity
|
|
$
|
629,497
|
|
|
$
|
579,318
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited) (In thousands)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
Operating
activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
24,653
|
|
|
$
|
50,829
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
3,752
|
|
|
|
3,519
|
|
Equity-based
compensation
|
|
|
4,229
|
|
|
|
4,410
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(7,193)
|
|
|
|
(2,081)
|
|
Inventories
|
|
|
12,347
|
|
|
|
(42,069)
|
|
Income taxes
receivable
|
|
|
(4,581)
|
|
|
|
(758)
|
|
Prepaid expenses and
other current assets
|
|
|
(3,704)
|
|
|
|
(16,989)
|
|
Other
assets
|
|
|
(434)
|
|
|
|
(349)
|
|
Accounts
payable
|
|
|
(6,310)
|
|
|
|
(1,156)
|
|
Income taxes
payable
|
|
|
1,206
|
|
|
|
439
|
|
Accrued
expenses
|
|
|
4,373
|
|
|
|
10,592
|
|
Returns
reserve
|
|
|
8,756
|
|
|
|
23,015
|
|
Right-of-use lease
assets and current and non-current lease liabilities
|
|
|
2,236
|
|
|
|
825
|
|
Other current
liabilities
|
|
|
7,888
|
|
|
|
4,224
|
|
Net cash provided by
operating activities
|
|
|
47,218
|
|
|
|
34,451
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(3,114)
|
|
|
|
(3,904)
|
|
Net cash used in
investing activities
|
|
|
(3,114)
|
|
|
|
(3,904)
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from the
exercise of stock options, net
|
|
|
486
|
|
|
|
496
|
|
Repurchases of Class A
common stock
|
|
|
(12,584)
|
|
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
|
(12,098)
|
|
|
|
496
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
169
|
|
|
|
(5,452)
|
|
Net increase in cash
and cash equivalents
|
|
|
32,175
|
|
|
|
25,591
|
|
Cash and cash
equivalents, beginning of period
|
|
|
234,724
|
|
|
|
218,455
|
|
Cash and cash
equivalents, end of period
|
|
$
|
266,899
|
|
|
$
|
244,046
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
|
Income taxes, net of
refund
|
|
$
|
11,580
|
|
|
$
|
15,909
|
|
Operating
leases
|
|
$
|
5,649
|
|
|
$
|
4,033
|
|
Supplemental
disclosure of non-cash activities:
|
|
|
|
|
|
|
Lease assets obtained
in exchange for new operating lease liabilities
|
|
$
|
20,452
|
|
|
$
|
21,938
|
|
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
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
Net
sales
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
REVOLVE
|
|
$
|
217,698
|
|
|
$
|
222,069
|
|
|
$
|
684,500
|
|
|
$
|
704,538
|
|
FWRD
|
|
|
39,905
|
|
|
|
46,642
|
|
|
|
126,441
|
|
|
|
137,725
|
|
Total
|
|
$
|
257,603
|
|
|
$
|
268,711
|
|
|
$
|
810,941
|
|
|
$
|
842,263
|
|
|
Gross
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
REVOLVE
|
|
$
|
119,003
|
|
|
$
|
123,622
|
|
|
$
|
370,474
|
|
|
$
|
398,140
|
|
FWRD
|
|
|
14,229
|
|
|
|
18,760
|
|
|
|
49,676
|
|
|
|
60,895
|
|
Total
|
|
$
|
133,232
|
|
|
$
|
142,382
|
|
|
$
|
420,150
|
|
|
$
|
459,035
|
|
The following table
lists net sales by geographic area (in thousands):
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
United
States
|
|
$
|
207,171
|
|
|
$
|
217,591
|
|
|
$
|
656,747
|
|
|
$
|
696,375
|
|
Rest of the
world
|
|
|
50,432
|
|
|
|
51,120
|
|
|
|
154,194
|
|
|
|
145,888
|
|
Total
|
|
$
|
257,603
|
|
|
$
|
268,711
|
|
|
$
|
810,941
|
|
|
$
|
842,263
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES KEY OPERATING AND FINANCIAL
METRICS (Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(in thousands,
except average order value and percentages)
|
|
Gross margin
|
|
|
51.7
|
%
|
|
|
53.0
|
%
|
|
|
51.8
|
%
|
|
|
54.5
|
%
|
Adjusted
EBITDA
|
|
$
|
9,484
|
|
|
$
|
17,676
|
|
|
$
|
34,871
|
|
|
$
|
76,097
|
|
Free cash
flow
|
|
$
|
11,492
|
|
|
$
|
8,618
|
|
|
$
|
44,104
|
|
|
$
|
30,547
|
|
Active
customers
|
|
|
2,510
|
|
|
|
2,249
|
|
|
|
2,510
|
|
|
|
2,249
|
|
Total orders
placed
|
|
|
2,133
|
|
|
|
1,951
|
|
|
|
6,679
|
|
|
|
6,350
|
|
Average order
value
|
|
$
|
299
|
|
|
$
|
320
|
|
|
$
|
296
|
|
|
$
|
303
|
|
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 nine
months ended September 30, 2023 and 2022 is as follows:
|
|
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(in
thousands)
|
|
Net income
|
|
$
|
3,178
|
|
|
$
|
11,988
|
|
|
$
|
24,653
|
|
|
$
|
50,829
|
|
Excluding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
(3,984)
|
|
|
|
(1,440)
|
|
|
|
(12,950)
|
|
|
|
(3,769)
|
|
Provision for income
taxes
|
|
|
1,130
|
|
|
|
4,203
|
|
|
|
8,232
|
|
|
|
15,421
|
|
Depreciation and
amortization
|
|
|
1,293
|
|
|
|
1,214
|
|
|
|
3,752
|
|
|
|
3,519
|
|
Equity-based
compensation
|
|
|
1,228
|
|
|
|
1,524
|
|
|
|
4,229
|
|
|
|
4,410
|
|
Non-routine
items(1)
|
|
|
6,639
|
|
|
|
187
|
|
|
|
6,955
|
|
|
|
5,687
|
|
Adjusted
EBITDA
|
|
$
|
9,484
|
|
|
$
|
17,676
|
|
|
$
|
34,871
|
|
|
$
|
76,097
|
|
|
|
(1)
|
Non-routine items in
the three and nine months ended September 30, 2023 and 2022
included an accrual for a pending legal matter and an accrual and a
charge for a separate settled legal matter.
|
A reconciliation of
non-GAAP free cash flow to net cash provided by operating
activities for the three and nine months ended September 30, 2023
and 2022 is as follows:
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(in
thousands)
|
|
Net cash provided by
operating activities
|
|
$
|
12,486
|
|
|
$
|
10,006
|
|
|
$
|
47,218
|
|
|
$
|
34,451
|
|
Purchases of property
and equipment
|
|
|
(994)
|
|
|
$
|
(1,388)
|
|
|
|
(3,114)
|
|
|
|
(3,904)
|
|
Free cash
flow
|
|
$
|
11,492
|
|
|
$
|
8,618
|
|
|
$
|
44,104
|
|
|
$
|
30,547
|
|
Net cash used in
investing activities
|
|
$
|
(994)
|
|
|
$
|
(1,388)
|
|
|
$
|
(3,114)
|
|
|
$
|
(3,904)
|
|
Net cash (used in)
provided by financing activities
|
|
$
|
(12,508)
|
|
|
$
|
128
|
|
|
$
|
(12,098)
|
|
|
$
|
496
|
|
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SOURCE Revolve Group, Inc.