LOS
ANGELES, May 7, 2024 /PRNewswire/ -- Revolve
Group, Inc. (NYSE: RVLV), the next-generation fashion retailer for
Millennial and Generation Z consumers, today announced financial
results for the first quarter ended March
31, 2024.
"We delivered significant expansion of our gross margin and
year-over-year efficiency in our variable logistics costs in the
first quarter of 2024, which contributed to strong profitability
and cash flow generation that further strengthened our balance
sheet," said co-founder and co-CEO Mike
Karanikolas. "I am also encouraged that we returned to
positive growth in net sales year-over-year during the final month
of our first quarter of 2024 as well as during the first month of
our second quarter of 2024."
"I am excited by our progress on key initiatives that further
improves our foundation for profitable growth," said co-founder and
co-CEO Michael Mente. "In
recent months, we have delivered great progress on drivers of
future growth and efficiency including product category expansion,
elevating service levels in international markets, leveraging AI
technology, further enhancing our digital merchandising, and
efficiently investing in our brands to further strengthen our
connection with the next-generation
consumer."
First Quarter 2024 Financial Summary
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
|
2023
|
|
|
YoY
Change
|
|
|
(in thousands,
except percentages)
|
Net sales
|
|
$
|
270,581
|
|
|
$
|
279,609
|
|
|
(3 %)
|
Gross profit
|
|
$
|
141,502
|
|
|
$
|
139,220
|
|
|
2 %
|
Gross margin
|
|
|
52.3
|
%
|
|
|
49.8
|
%
|
|
|
Net income
|
|
$
|
10,873
|
|
|
$
|
14,172
|
|
|
(23 %)
|
Adjusted EBITDA
(non-GAAP financial measure)
|
|
$
|
13,267
|
|
|
$
|
15,010
|
|
|
(12 %)
|
Net cash provided by
operating activities
|
|
$
|
38,391
|
|
|
$
|
48,829
|
|
|
(21 %)
|
Free cash flow
(non-GAAP financial measure)
|
|
$
|
36,656
|
|
|
$
|
47,681
|
|
|
(23 %)
|
Operational Metrics
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
|
2023
|
|
|
YoY
Change
|
|
|
(in thousands,
except average order value and percentages)
|
Active customers
(trailing 12 months)
|
|
|
2,551
|
|
|
|
2,424
|
|
|
5 %
|
Total orders
placed
|
|
|
2,223
|
|
|
|
2,278
|
|
|
(2 %)
|
Average order
value
|
|
$
|
299
|
|
|
$
|
288
|
|
|
4 %
|
Additional First Quarter 2024 Metrics and Results
Commentary
- Trailing 12-month Active customers grew to 2,551,000 as
of March 31, 2024, an increase of 5%
year-over-year.
- Net sales were $270.6
million, a year-over-year decrease of 3%, which reflects
increased net sales at full price in the first quarter of 2024 that
were more than offset by lower net sales at a markdown
year-over-year.
- Gross profit was $141.5
million, a year-over-year increase of 2%.
- Gross margin was 52.3%, a year-over-year increase
of 250 basis points that was driven by margin expansion in the
REVOLVE segment. The increased gross margin primarily reflects a
higher mix of net sales at full price in the first quarter of 2024
and lower inventory valuation adjustments as compared to the first
quarter of 2023.
- Net income was $10.9
million, a year-over-year decrease of 23%, and included an
insurance recovery of $2.8 million
($2.1 million, net of taxes) within
other income, net.
- Adjusted EBITDA was $13.3
million, a year-over-year decrease of 12% that primarily
reflects higher general and administrative expenses in the first
quarter of 2024 and increased marketing investment due to a shift
in the timing of brand marketing investments year-over-year,
partially offset by increased gross profit and efficiencies in
selling and distribution costs year-over-year.
- Diluted earnings per share (EPS) was $0.15, a year-over-year decrease of 21%. EPS for
the first quarter of 2024 included the insurance recovery mentioned
above equivalent to approximately $0.03 per share.
Additional Net Sales Commentary
- REVOLVE segment net sales were $229.6 million, a year-over-year decrease of
1%.
- FWRD segment net sales were $41.0 million, a year-over-year decrease of
15%.
- Domestic net sales were $219.1
million, a year-over-year decrease of 3%.
- International net sales were $51.5 million, also a year-over-year decrease of
3%.
Cash Flow and Balance Sheet
- Net cash provided by operating activities was
$38.4 million and free cash
flow was $36.7 million, further
strengthening our balance sheet and supporting our commitment to
enhance shareholder value through capital allocation. These cash
flow metrics decreased 21% and 23%, respectively, versus the first
quarter of 2023, when our cash flow benefited meaningfully from
favorable working capital movements including a large reduction in
inventory during the prior-year period.
- Stock repurchases were $8.0
million for the first quarter ended March 31, 2024, exclusive of broker fees and
excise taxes. The company repurchased 530,007 shares of its Class A
common stock during the first quarter at an average cost of
$15.17. $61.4
million remained available under the company's $100 million stock repurchase program as of
March 31, 2024.
- Cash and cash equivalents: The strong cash flow
generation has further strengthened our balance sheet and
liquidity. Cash and cash equivalents as of March 31, 2024 were $273.4
million, an increase of $28.0
million, or 11%, from $245.4
million as of December 31,
2023. Our balance sheet as of March
31, 2024 remains debt free. The year-over-year decrease in
cash and cash equivalents compared to March
31, 2023 primarily reflects significant cash flow generated
from operations that was more than offset by $38.6 million in stock repurchases since we
established our $100 million stock
repurchase program in August
2023.
- Inventory as of March 31,
2024 was $201.8 million, an
increase of $11.7 million, or 6%,
from March 31,
2023.
Additional trend information regarding Revolve Group's first
quarter of 2024 financial results and operating metrics is
available in the Q1 2024 Financial Highlights presentation
available on our investor relations website:
https://investors.revolve.com/events-and-presentations/default.aspx
Results Since the End of the First Quarter of 2024
Net sales in April 2024 increased
by a low single digit percentage year-over-year, a sequential
improvement compared to the year-over-year trend reported for the
first quarter of 2024.
2024 Business Outlook
Based on information available to us as of May 7, 2024, we are providing the following
guidance for the full year ending December
31, 2024 and the second quarter ending June 30, 2024.
|
Updated FY 2024
Outlook
|
Prior FY 2024
Outlook
|
Gross margin
|
52.5% to
53.0%
|
52.5% to
53.0%
|
Fulfillment
expenses
|
3.3% to 3.5% of net
sales
|
3.3% to 3.5% of net
sales
|
Selling and
distribution expenses
|
17.8% to 18.0% of net
sales
|
17.8% to 18.0% of net
sales
|
Marketing
expenses
|
16% to 16.2% of net
sales
|
16% to 16.2% of net
sales
|
General and
administrative expenses
|
$130 million to $133
million
|
$130 million to $133
million
|
Effective tax
rate
|
24% to 26%
|
24% to 26%
|
|
|
|
|
Second Quarter 2024
Outlook
|
|
Gross margin
|
53.9% to
54.4%
|
|
Fulfillment
expenses
|
3.4% of net
sales
|
|
Selling and
distribution expenses
|
18.0% of net
sales
|
|
Marketing
expenses
|
17.0% of net
sales
|
|
General and
administrative expenses
|
$34.0
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) 596-4144 within the United States or (646) 968-2525 outside
the United States approximately 10
minutes before the scheduled start of the call. The conference ID
for the call is 9618219. 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 (609) 800-9909 outside
the United States. The replay
conference ID is 9618219.
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 statements regarding our outlook for the second
quarter and full year of 2024. 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; inflationary pressures;
wars and conflicts in Ukraine/Russia, Israel/Gaza
and the Middle East; other
geopolitical tensions; 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 public health crises on
our business, operations and financial results; the effect of
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, 2023 and our subsequent Quarterly
Reports on Form 10-Q, including for the quarter ended March 31, 2024, which we expect to file with the
SEC on May 7, 2024. 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
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Net sales
|
|
$
|
270,581
|
|
|
$
|
279,609
|
|
Cost of
sales
|
|
|
129,079
|
|
|
|
140,389
|
|
Gross
profit
|
|
|
141,502
|
|
|
|
139,220
|
|
Operating
expenses:
|
|
|
|
|
|
|
Fulfillment
|
|
|
9,393
|
|
|
|
9,071
|
|
Selling and
distribution
|
|
|
48,438
|
|
|
|
51,458
|
|
Marketing
|
|
|
41,379
|
|
|
|
38,343
|
|
General and
administrative
|
|
|
32,964
|
|
|
|
28,092
|
|
Total operating
expenses
|
|
|
132,174
|
|
|
|
126,964
|
|
Income from
operations
|
|
|
9,328
|
|
|
|
12,256
|
|
Other income,
net
|
|
|
(5,321)
|
|
|
|
(6,585)
|
|
Income before income
taxes
|
|
|
14,649
|
|
|
|
18,841
|
|
Provision for income
taxes
|
|
|
3,776
|
|
|
|
4,669
|
|
Net income
|
|
$
|
10,873
|
|
|
$
|
14,172
|
|
Earnings per share of
Class A and Class B
common stock:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.15
|
|
|
$
|
0.19
|
|
Diluted
|
|
$
|
0.15
|
|
|
$
|
0.19
|
|
Weighted average number
of shares of Class A and
Class B common stock outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
70,919
|
|
|
|
73,370
|
|
Diluted
|
|
|
71,523
|
|
|
|
74,379
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In thousands, except
share and per share data)
|
|
|
|
March 31,
|
|
|
December
31,
|
|
|
|
2024
|
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
273,416
|
|
|
$
|
245,449
|
|
Accounts receivable,
net
|
|
|
14,929
|
|
|
|
12,405
|
|
Inventory
|
|
|
201,839
|
|
|
|
203,587
|
|
Income taxes
receivable
|
|
|
—
|
|
|
|
1,625
|
|
Prepaid expenses and
other current assets
|
|
|
78,555
|
|
|
|
65,523
|
|
Total current
assets
|
|
|
568,739
|
|
|
|
528,589
|
|
Property and equipment
(net of accumulated depreciation of $19,306 and $17,994 as of
March 31, 2024 and December 31, 2023,
respectively)
|
|
|
8,151
|
|
|
|
7,763
|
|
Right-of-use lease
assets
|
|
|
36,819
|
|
|
|
36,440
|
|
Intangible assets,
net
|
|
|
1,879
|
|
|
|
1,875
|
|
Goodwill
|
|
|
2,042
|
|
|
|
2,042
|
|
Other assets
|
|
|
2,398
|
|
|
|
2,172
|
|
Deferred income
taxes
|
|
|
30,005
|
|
|
|
30,005
|
|
Total
assets
|
|
$
|
650,033
|
|
|
$
|
608,886
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
56,000
|
|
|
$
|
47,821
|
|
Income taxes
payable
|
|
|
1,248
|
|
|
|
—
|
|
Accrued
expenses
|
|
|
48,479
|
|
|
|
40,714
|
|
Returns
reserve
|
|
|
84,396
|
|
|
|
63,780
|
|
Current lease
liabilities
|
|
|
7,417
|
|
|
|
6,863
|
|
Other current
liabilities
|
|
|
28,787
|
|
|
|
30,442
|
|
Total current
liabilities
|
|
|
226,327
|
|
|
|
189,620
|
|
Non-current lease
liabilities
|
|
|
33,823
|
|
|
|
34,126
|
|
Total
liabilities
|
|
|
260,150
|
|
|
|
223,746
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Class A common stock,
$0.001 par value; 1,000,000,000 shares authorized as of
March 31, 2024 and December 31, 2023; 38,219,753 and
38,693,589 shares issued
and outstanding as of March 31, 2024 and December 31,
2023, respectively
|
|
|
38
|
|
|
|
39
|
|
Class B common stock,
$0.001 par value; 125,000,000 shares authorized as of
March 31, 2024 and December 31, 2023; 32,597,119 and
32,597,119 shares issued
and outstanding as of March 31, 2024 and December 31,
2023, respectively
|
|
|
33
|
|
|
|
33
|
|
Additional paid-in
capital
|
|
|
119,127
|
|
|
|
116,713
|
|
Retained
earnings
|
|
|
270,685
|
|
|
|
268,355
|
|
Total stockholders'
equity
|
|
|
389,883
|
|
|
|
385,140
|
|
Total liabilities and
stockholders' equity
|
|
$
|
650,033
|
|
|
$
|
608,886
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
Operating
activities:
|
|
|
|
|
|
|
Net income
|
|
$
|
10,873
|
|
|
$
|
14,172
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,343
|
|
|
|
1,218
|
|
Equity-based
compensation
|
|
|
2,559
|
|
|
|
1,278
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(2,524)
|
|
|
|
(2,659)
|
|
Inventories
|
|
|
1,748
|
|
|
|
25,072
|
|
Income taxes
receivable
|
|
|
1,625
|
|
|
|
1,996
|
|
Prepaid expenses and
other current assets
|
|
|
(13,032)
|
|
|
|
(4,925)
|
|
Other
assets
|
|
|
(226)
|
|
|
|
(442)
|
|
Accounts
payable
|
|
|
8,179
|
|
|
|
(1,690)
|
|
Income taxes
payable
|
|
|
1,248
|
|
|
|
2,368
|
|
Accrued
expenses
|
|
|
7,765
|
|
|
|
(2,747)
|
|
Returns
reserve
|
|
|
20,616
|
|
|
|
10,544
|
|
Right-of-use lease
assets and current and non-current
lease liabilities
|
|
|
(128)
|
|
|
|
534
|
|
Other current
liabilities
|
|
|
(1,655)
|
|
|
|
4,110
|
|
Net cash provided by
operating activities
|
|
|
38,391
|
|
|
|
48,829
|
|
Investing
activities:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(1,735)
|
|
|
|
(1,148)
|
|
Net cash used in
investing activities
|
|
|
(1,735)
|
|
|
|
(1,148)
|
|
Financing
activities:
|
|
|
|
|
|
|
Proceeds from the
exercise of stock options, net of
tax withholdings on share-based payment
awards
|
|
|
(145)
|
|
|
|
161
|
|
Repurchases of Class A
common stock
|
|
|
(8,119)
|
|
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
|
(8,264)
|
|
|
|
161
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
(425)
|
|
|
|
755
|
|
Net increase in cash
and cash equivalents
|
|
|
27,967
|
|
|
|
48,597
|
|
Cash and cash
equivalents, beginning of period
|
|
|
245,449
|
|
|
|
234,724
|
|
Cash and cash
equivalents, end of period
|
|
$
|
273,416
|
|
|
$
|
283,321
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
|
Income taxes, net of
refund
|
|
$
|
1,599
|
|
|
$
|
255
|
|
Operating
leases
|
|
$
|
2,254
|
|
|
$
|
1,795
|
|
Supplemental
disclosure of non-cash activities:
|
|
|
|
|
|
|
Lease assets obtained
in exchange for new operating lease liabilities
|
|
$
|
1,994
|
|
|
$
|
20,452
|
|
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
March 31,
|
|
Net
sales
|
|
2024
|
|
|
2023
|
|
REVOLVE
|
|
$
|
229,589
|
|
|
$
|
231,653
|
|
FWRD
|
|
|
40,992
|
|
|
|
47,956
|
|
Total
|
|
$
|
270,581
|
|
|
$
|
279,609
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
|
|
|
REVOLVE
|
|
$
|
127,672
|
|
|
$
|
120,236
|
|
FWRD
|
|
|
13,830
|
|
|
|
18,984
|
|
Total
|
|
$
|
141,502
|
|
|
$
|
139,220
|
|
|
|
|
|
The following table
lists net sales by geographic area (in thousands):
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
United
States
|
|
$
|
219,133
|
|
|
$
|
226,716
|
|
Rest of the
world
|
|
|
51,448
|
|
|
|
52,893
|
|
Total
|
|
$
|
270,581
|
|
|
$
|
279,609
|
|
REVOLVE GROUP, INC.
AND SUBSIDIARIES
|
KEY OPERATING AND
FINANCIAL METRICS
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(in thousands,
except average order value and percentages)
|
|
Gross margin
|
|
|
52.3
|
%
|
|
|
49.8
|
%
|
Adjusted
EBITDA
|
|
$
|
13,267
|
|
|
$
|
15,010
|
|
Free cash
flow
|
|
$
|
36,656
|
|
|
$
|
47,681
|
|
Active
customers
|
|
|
2,551
|
|
|
|
2,424
|
|
Total orders
placed
|
|
|
2,223
|
|
|
|
2,278
|
|
Average order
value
|
|
$
|
299
|
|
|
$
|
288
|
|
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 months ended
March 31, 2024 and 2023 is as follows:
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(in
thousands)
|
|
Net income
|
|
$
|
10,873
|
|
|
$
|
14,172
|
|
Excluding:
|
|
|
|
|
|
|
Other income,
net
|
|
|
(5,321)
|
|
|
|
(6,585)
|
|
Provision for income
taxes
|
|
|
3,776
|
|
|
|
4,669
|
|
Depreciation and
amortization
|
|
|
1,343
|
|
|
|
1,218
|
|
Equity-based
compensation
|
|
|
2,559
|
|
|
|
1,278
|
|
Non-routine
items(1)
|
|
|
37
|
|
|
|
258
|
|
Adjusted
EBITDA
|
|
$
|
13,267
|
|
|
$
|
15,010
|
|
|
|
(1)
|
Non-routine items in
the three months ended March 31, 2024 and 2023 represent accruals
and fees related to two separate legal matters.
|
A reconciliation of
non-GAAP free cash flow to net cash provided by operating
activities for the three months ended March 31, 2024 and 2023 is as
follows:
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2024
|
|
|
2023
|
|
|
|
(in
thousands)
|
|
Net cash provided by
operating activities
|
|
$
|
38,391
|
|
|
$
|
48,829
|
|
Purchases of property
and equipment
|
|
|
(1,735)
|
|
|
$
|
(1,148)
|
|
Free cash
flow
|
|
$
|
36,656
|
|
|
$
|
47,681
|
|
Net cash used in
investing activities
|
|
$
|
(1,735)
|
|
|
$
|
(1,148)
|
|
Net cash (used in)
provided by financing activities
|
|
$
|
(8,264)
|
|
|
$
|
161
|
|
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SOURCE Revolve Group, Inc.