FIGS Releases Fourth Quarter and Full Year 2021 Financial Results
FIGS, Inc. reported a record net revenue of $420 million for 2021, marking a 60% increase year-over-year. In Q4 2021, the company achieved net revenues of $128.7 million, up 42.7%. However, the gross margin decreased to 69.9%. The net income for the full year was a loss of $9.6 million, impacted by stock-based compensation related to its IPO. Active customers grew by 46% to 1.9 million, with an outlook for 2022 net revenues between $550-$560 million.
- Net revenues increased 60% year-over-year to $420 million in 2021.
- Adjusted EBITDA rose to $105.2 million, up $36.1 million year-over-year.
- Net loss of $9.6 million in 2021 primarily due to $50.4 million in stock-based compensation.
- Gross margin decreased year-over-year from 71.3% to 71.8%.
2021 net revenues increased
Financial Highlights
Fourth Quarter 2021:
-
Net revenues were
, an increase of$128.7 million 42.7% year over year. -
Gross margin was
69.9% , a decrease of 110 basis points year over year. -
Net income was
and diluted earnings per share was$12.6 million .$0.06 -
Net income, as adjusted(1) was
and diluted earnings per share, as adjusted(1) was$18.6 million .$0.09 -
Adjusted EBITDA(1) was
, an increase of$31.9 million year over year.$10.5 million -
Adjusted EBITDA margin(1) was
24.8% , an increase of 110 basis points year over year.
Full Year 2021:
-
Net revenues were
, an increase of$419.6 million 59.5% year over year. Excluding the non-recurring related party sale in Q3 2020, net revenues grew$4.2 million 62.1% year over year.(1) -
Gross margin was
71.8% , a decrease of 50 basis points year over year. -
Net loss was
and diluted loss per share was$9.6 million , primarily due to$0.06 of pre-tax stock-based compensation expense incurred in connection with our IPO.$50.4 million -
Net income, as adjusted(1) was
and diluted earnings per share, as adjusted(1) was$55.9 million .$0.30 -
Adjusted EBITDA(1) was
, an increase of$105.2 million year over year.$36.1 million -
Adjusted EBITDA margin(1) was
25.1% , a decrease of 120 basis points year over year.
Key Operating Metrics
-
Active customers(2) as of
December 31, 2021 increased46% to 1.9 million. -
Net revenues per active customer(2) was
, an increase of$224 11% year over year. -
Average Order Value (AOV)(2)
-
For Q4 2021, AOV was
, an increase of$113 15% year over year. -
For full year 2021, AOV was
, an increase of$105 12% year over year.
-
For Q4 2021, AOV was
Comments from FIGS’ Co-Founder and Co-Chief Executive Officer,
“Our 2021 performance included record net revenues of
2022 Financial Outlook
Net Revenues |
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Gross Margin |
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Adjusted EBITDA Margin(3) |
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(1) |
Net revenues, as adjusted, net income, as adjusted, diluted earnings per share, as adjusted, adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Please see the sections titled “Non-GAAP Financial Measures and Key Operating Metrics” and “Reconciliations of GAAP to Non-GAAP Measures” below for more information regarding the Company’s use of non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net revenues. |
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(2) |
“Active customers,” “net revenues per active customer” and “average order value” are key operational and business metrics that are important to understanding Company performance. For information regarding how we calculate our key operational and business metrics, please see the section titled “Non-GAAP Financial Measures and Key Operating Metrics.” |
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(3) |
The Company has not provided a quantitative reconciliation of its adjusted EBITDA margin outlook to a GAAP net income margin outlook because it is unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to, future stock-based compensation expense, income taxes, expenses related to non-ordinary course disputes, and transaction costs. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. For more information regarding the Company’s use of non-GAAP financial measures, please see the section titled “Non-GAAP Financial Measures and Key Operating Metrics.” |
Conference Call Details
FIGS management will host a conference call and webcast today at
Non-GAAP Financial Measures and Key Operating Metrics
In addition to the GAAP financial measures set forth in this press release, the Company has included non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K.
The Company uses “net revenues, as adjusted,” “net income, as adjusted,” “diluted earnings per share, as adjusted,” “adjusted EBITDA” and “adjusted EBITDA margin” to provide useful supplemental measures that assist in evaluating its ability to generate earnings, provide consistency and comparability with its past financial performance and facilitate period-to-period comparisons of its core operating results as well as the results of its peer companies. The Company calculates “net revenues, as adjusted” as net revenues, adjusted to exclude non-recurring related party sales. The Company calculates “net income, as adjusted,” as net income adjusted to exclude transaction costs, expenses related to non-ordinary course disputes, stock-based compensation, including expense related to award modifications, accelerated performance awards and ambassador grants in connection with the IPO, and expense resulting from the retirement of the Company's previous CFO, and the income tax impact of these adjustments. The Company calculates “diluted earnings per share, as adjusted” as net income, as adjusted divided by diluted shares outstanding. The Company calculates “adjusted EBITDA” as net income adjusted to exclude: other income (loss), net; gain/loss on disposal of assets; provision for income taxes; depreciation and amortization expense; stock-based compensation and related expense; transaction costs; and expenses related to non-ordinary course disputes. The Company calculates “adjusted EBITDA margin” by dividing adjusted EBITDA by net revenues.
Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included below under the heading “Reconciliations of GAAP to Non-GAAP Measures.”
About FIGS
FIGS is a founder-led, direct-to-consumer healthcare apparel and lifestyle brand that seeks to celebrate, empower, and serve current and future generations of healthcare professionals. We create technically advanced apparel and products for healthcare professionals that feature an unmatched combination of comfort, durability, function, and style. We market and sell our products directly through our digital platform to provide a seamless experience for healthcare professionals.
Forward Looking Statements
This press release contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are based on current management expectations, and which involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, such forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking. These forward-looking statements generally are identified by the words “anticipate”, “believe”, “contemplate”, “continue”, “could”, “estimate”, “expect”, “forecast”, “future”, “intend”, “may”, “might”, “opportunity”, “outlook”, “plan”, “possible”, “potential”, “predict”, “project,” “should”, “strategy”, “strive”, “target”, “will” or “would”, the negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. These forward-looking statements address various matters, including the Company’s outlook as to net revenues, gross margin and adjusted EBITDA margin for the full year ending
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(Unaudited)
The following table presents a reconciliation of net revenues, as adjusted, to net revenues, which is the most directly comparable financial measure calculated in accordance with GAAP:
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Year ended
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2021 |
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2020 |
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($ in thousands) |
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Net Revenues |
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$ |
419,591 |
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$ |
263,112 |
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Deduct: |
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Related party sales |
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— |
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(4,200 |
) |
Net Revenues, as adjusted |
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$ |
419,591 |
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$ |
258,912 |
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The following table presents a reconciliation of diluted earnings per share, as adjusted and net income, as adjusted to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP:
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Year ended
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2021 |
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2020 |
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($ in thousands, except share and per share amounts) |
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Net income (loss) |
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$ |
(9,556 |
) |
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$ |
49,758 |
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Add (deduct): |
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Transaction costs |
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2,019 |
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296 |
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Expenses related to non-ordinary course disputes(1) |
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8,183 |
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1,197 |
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Stock-based compensation expense in connection with the IPO and other(2) |
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56,084 |
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— |
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Income tax impacts of items above |
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(843 |
) |
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(153 |
) |
Net income, as adjusted |
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$ |
55,887 |
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$ |
51,098 |
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Diluted EPS, as adjusted |
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$ |
0.30 |
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$ |
0.31 |
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Weighted-average shares used to compute Diluted EPS, as adjusted(3) |
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189,082,110 |
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163,331,348 |
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(1) |
Represents legal fees incurred in connection with the litigation claims described in the section titled “Legal Proceedings” appearing on our Quarterly Report on Form 10-Q for the quarter ended |
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(2) |
Includes certain stock-based compensation expenses including expense related to award modifications, accelerated performance awards and ambassador grants in connection with the IPO, and expense resulting from the retirement of the Company's previous CFO. |
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(3) |
We adjust the weighted-average number of shares outstanding for the dilutive effect of potential common equivalent shares in each period presented. |
The following table presents a reconciliation of adjusted EBITDA to net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP:
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Year ended
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2021 |
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2020 |
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($ in thousands, except margin) |
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Net income (loss) |
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$ |
(9,556 |
) |
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$ |
49,758 |
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Add (deduct): |
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Other income (loss), net |
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1,124 |
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(136 |
) |
Gain/loss on disposal |
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— |
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2 |
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Provision for income taxes |
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19,415 |
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8,318 |
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Depreciation and amortization expense(1) |
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1,424 |
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|
946 |
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Stock-based compensation and related expense(2) |
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83,516 |
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8,713 |
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Transaction costs |
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1,139 |
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296 |
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Expenses related to non-ordinary course disputes(3) |
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8,183 |
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1,197 |
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Adjusted EBITDA |
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$ |
105,245 |
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$ |
69,094 |
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Adjusted EBITDA Margin |
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25.1 |
% |
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26.3 |
% |
(1) |
Excludes amortization of debt issuance costs included in “Other income (loss), net.” |
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(2) |
Includes stock-based compensation expense and payroll taxes related to equity award activity. |
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(3) |
Represents legal fees incurred in connection with the litigation claims described in the section titled “Legal Proceedings” appearing on our Quarterly Report on Form 10-Q for the quarter ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220308005558/en/
Investors:
IR@wearfigs.com
Media:
press@wearfigs.com
Source:
FAQ
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