FIGS Releases Second Quarter 2024 Financial Results
FIGS Inc. (NYSE: FIGS), a global healthcare apparel brand, reported Q2 2024 financial results with net revenues of $144.2 million, a 4.4% increase year-over-year. However, the gross margin declined 2.1% to 67.4%, mainly due to a product mix shift. Operating expenses rose by 7.0% to $95.7 million, driven by higher selling and marketing expenses.
Net income fell to $1.1 million or $0.01 per share, a $3.5 million decrease compared to the previous year. Adjusted EBITDA also dropped by $6.0 million to $12.9 million.
The Board authorized a $50 million share repurchase program, reflecting confidence in the company's financial position. For full-year 2024, FIGS expects net revenues to be flat to 2% growth and Adjusted EBITDA margin to range between 9.5% and 10%.
FIGS Inc. (NYSE: FIGS), un marchio globale di abbigliamento sanitario, ha riportato i risultati finanziari del Q2 2024 con ricavi netti di 144,2 milioni di dollari, un aumento del 4,4% rispetto all'anno precedente. Tuttavia, il margine lordo è diminuito del 2,1% portandosi al 67,4%, principalmente a causa di un cambiamento nella composizione dei prodotti. Le spese operative sono aumentate del 7,0% raggiungendo 95,7 milioni di dollari, a causa di costi di vendita e marketing più elevati.
Il reddito netto è sceso a 1,1 milioni di dollari, ovvero 0,01 dollari per azione, una diminuzione di 3,5 milioni di dollari rispetto all'anno precedente. Anche l'EBITDA corretto è calato di 6,0 milioni di dollari, attestandosi a 12,9 milioni di dollari.
Il Consiglio ha autorizzato un programma di riacquisto azioni di 50 milioni di dollari, a dimostrazione della fiducia nella posizione finanziaria dell'azienda. Per l'intero anno 2024, FIGS si aspetta che i ricavi netti rimangano stabili o crescano fino al 2% e che il margine EBITDA corretto si attesti tra il 9,5% e il 10%.
FIGS Inc. (NYSE: FIGS), una marca global de ropa sanitaria, reportó los resultados financieros del Q2 2024 con ingresos netos de 144,2 millones de dólares, un aumento del 4,4% en comparación con el año anterior. Sin embargo, el margen bruto disminuyó un 2,1% hasta alcanzar el 67,4%, principalmente debido a un cambio en la mezcla de productos. Los gastos operativos aumentaron un 7,0% alcanzando los 95,7 millones de dólares, impulsados por mayores costos de ventas y marketing.
El ingreso neto cayó a 1,1 millones de dólares o 0,01 dólares por acción, una disminución de 3,5 millones de dólares en comparación con el año anterior. El EBITDA ajustado también cayó en 6,0 millones de dólares, hasta 12,9 millones de dólares.
La Junta autorizó un programa de recompra de acciones de 50 millones de dólares, reflejando confianza en la posición financiera de la empresa. Para el año completo 2024, FIGS espera que los ingresos netos se mantengan estables o crezcan hasta un 2% y que el margen EBITDA ajustado se sitúe entre el 9,5% y el 10%.
FIGS Inc. (NYSE: FIGS), 글로벌 의료 의류 브랜드는 2024년 2분기 재무 결과를 보고하면서 순수익이 1억 4420만 달러로, 전년 대비 4.4% 증가했다고 발표했습니다. 그러나 총 마진은 2.1% 감소하여 67.4%가 되었으며, 이는 주로 제품 믹스 변화에 기인합니다. 운영비용은 7.0% 증가하여 9570만 달러에 이르렀으며, 이는 판매 및 마케팅 비용 증가에 의한 것입니다.
순이익은 110만 달러 또는 주당 0.01달러로 감소하였으며, 이는 전년도에 비해 350만 달러 줄어든 것입니다. 조정된 EBITDA 역시 600만 달러 감소하여 1290만 달러가 되었습니다.
이사회는 회사의 재무 상태에 대한 신뢰를 반영하여 5000만 달러의 자사주 매입 프로그램을 승인했습니다. 2024년 연간 전체에 대해 FIGS는 순수익이 보합세를 유지하거나 2% 성장할 것으로 예상하고 조정 EBITDA 마진이 9.5%에서 10% 사이가 될 것으로 보입니다.
FIGS Inc. (NYSE: FIGS), une marque mondiale de vêtements de santé, a rapporté les résultats financiers du T2 2024 avec des chiffres d'affaires nets de 144,2 millions de dollars, soit une augmentation de 4,4 % par rapport à l'année précédente. Cependant, la marge brute a diminué de 2,1 % pour atteindre 67,4 %, principalement en raison d'un changement dans le mélange des produits. Les frais d'exploitation ont augmenté de 7,0 % pour atteindre 95,7 millions de dollars, entraînés par des coûts de vente et de marketing plus élevés.
Le bénéfice net a chuté à 1,1 million de dollars, soit 0,01 dollar par action, ce qui représente une baisse de 3,5 millions de dollars par rapport à l'année précédente. L'EBITDA ajusté a également diminué de 6,0 millions de dollars pour s'établir à 12,9 millions de dollars.
Le Conseil d'administration a autorisé un programme de rachat d'actions de 50 millions de dollars, reflet de la confiance dans la position financière de l'entreprise. Pour l'année entière 2024, FIGS s'attend à ce que les chiffres d'affaires nets se maintiennent à un niveau stable ou croissent jusqu'à 2 %, et que la marge EBITDA ajustée se situe entre 9,5 % et 10 %.
FIGS Inc. (NYSE: FIGS), eine globale Marke für Gesundheitsbekleidung, berichtete über die finanziellen Ergebnisse des 2. Quartals 2024 mit Nettoerträgen von 144,2 Millionen Dollar, was einem Anstieg von 4,4% im Vergleich zum Vorjahr entspricht. Der Bruttomarge ging jedoch um 2,1% auf 67,4% zurück, hauptsächlich aufgrund einer Veränderung in der Produktmix. Die Betriebskosten stiegen um 7,0% auf 95,7 Millionen Dollar, getrieben durch höhere Verkaufs- und Marketingkosten.
Der Nettogewinn fiel auf 1,1 Millionen Dollar oder 0,01 Dollar pro Aktie, was einem Rückgang von 3,5 Millionen Dollar im Vergleich zum Vorjahr entspricht. Auch das bereinigte EBITDA sank um 6,0 Millionen Dollar auf 12,9 Millionen Dollar.
Der Vorstand genehmigte ein Aktienrückkaufprogramm in Höhe von 50 Millionen Dollar, was Vertrauen in die finanzielle Lage des Unternehmens widerspiegelt. Für das Gesamtjahr 2024 erwartet FIGS Nettoerträge von stabil bis 2% Wachstum sowie eine bereinigte EBITDA-Marge zwischen 9,5% und 10%.
- Net revenues increased by 4.4% year-over-year to $144.2 million.
- Active customers grew by 6.1%, reaching 2.6 million.
- Board authorized a $50 million share repurchase program, reflecting financial confidence.
- Gross margin decreased by 2.1% to 67.4%.
- Operating expenses rose by 7%, reaching $95.7 million.
- Net income decreased by $3.5 million to $1.1 million.
- Adjusted EBITDA fell by $6.0 million to $12.9 million.
- Net income margin significantly decreased from 3.4% to 0.8%.
Insights
FIGS' Q2 2024 results show mixed performance. Net revenues increased by
The
FIGS' Q2 results reveal interesting customer trends. Active customers grew by
The company's focus on product innovation and top-of-funnel marketing appears to be attracting new customers but may not be fully translating into higher spending per customer. The partnership with Team USA Medical Team could boost brand visibility and potentially drive future growth. Investors should monitor how these strategies impact customer acquisition costs and lifetime value in coming quarters.
Exceeded Q2 2024 Outlook; Announcing
Second Quarter 2024 Financial Highlights
-
Net revenues(1) were
$144.2 million 4.4% year over year, due to an increase in orders from existing customers, partially offset by a decrease in average order value (“AOV”).(2) -
Gross margin was
67.4% , a decrease of2.1% year over year, primarily from product mix shift related to outperformance of limited edition scrubwear and limited edition non-scrubwear. -
Operating expenses were
$95.7 million 7.0% year over year. As a percentage of net revenues, operating expenses increased to66.4% from64.7% primarily due to higher selling and marketing expenses, including transitory expenses associated with the transition to our new fulfillment center, offset by lower general and administrative expenses primarily due to lower stock-based compensation expense. -
Net income and Net income, as adjusted(3) were
$1.1 million $0.01 $3.5 million -
Net income margin(4) was
0.8% , as compared to3.4% in the same period last year. -
Adjusted EBITDA(3) was
$12.9 million $6.0 million -
Adjusted EBITDA margin(3)(4) was
9.0% , as compared to13.7% in the same period last year.
Key Operating Metrics
-
Active customers(2) as of June 30, 2024 increased
6.1% year over year to 2.6 million. -
Net revenues per active customer(2)(5) were
$210 2.3% year over year. -
AOV(2)(5) was
$113 1.7% year over year primarily driven by the accounting reclassification between net revenues and selling expense related to duty subsidies for international customers.
“Our strong second quarter performance shows that our investments are paying off,” said Trina Spear, Chief Executive Officer and Co-Founder. “Both net revenues and adjusted EBITDA margin(3) exceeded our outlook, and we saw continued momentum in the business, including a positive year-over-year repeat frequency trend. Our strategy of combining pioneering product innovation with powerful top of funnel marketing is resonating. We look forward to continuing our momentum into the second half of the year, spurred by the biggest and most exciting campaign we have ever done – our first-of-its-kind partnership outfitting the Team
The Company’s Board of Directors has authorized a share repurchase program for up to
“Our strong financial profile and long-term business outlook give us the confidence to evolve our capital allocation strategy,” said Ms. Spear. “We believe we have sufficient liquidity and cash flow generation to both invest internally for growth and also return value to our shareholders through a share repurchase program.”
Under the program, the Company may repurchase shares in the open market, through privately negotiated transactions, by entering into structured repurchase agreements with third parties, by making block purchases, entering into derivatives contracts and/or pursuant to Rule 10b5-1 trading plans, subject to market conditions, applicable securities laws and other legal requirements and relevant factors. The Company is not obligated to repurchase any specific number of shares and the program may be modified, suspended or terminated at any time, without prior notice. The timing, manner, price and amount of any repurchases will be determined at the Company’s discretion, subject to business, economic and market conditions and other factors.
Financial Outlook
For Full-Year 2024, the Company now expects:
Net Revenues versus 2023 |
Flat to |
|
|
Adjusted EBITDA Margin(3)(6) |
|
(1) Second quarter 2024 net revenues results reflect
(2) “Active customers,” “net revenues per active customer” and “average order value” are key operational and business metrics that are important to understanding the Company’s performance. Please see the sections titled “Non-GAAP Financial Measures and Key Operating Metrics” and “Key Operating Metrics” below for information regarding how the Company calculates its key operational and business metrics and for comparisons of active customers, net revenues per active customer and average order value to the prior year period.
(3) “Net income, 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.
(4) “Net income margin” and “adjusted EBITDA margin” are calculated by dividing net income and adjusted EBITDA by net revenues, respectively.
(5) Net revenues per active customer and AOV results for the second quarter 2024 each reflect international duty subsidies recorded as contra revenue, which were not reflected in the results for these metrics for second quarter 2023. As a result, year over year growth in each of these metrics was negatively impacted by approximately 1 percentage point.
(6) 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 2:00 p.m. PT / 5:00 p.m. ET to discuss the Company’s financial and business results and outlook. To participate, please dial 1-833-470-1428 (US) or +1-404-975-4839 (International) and the conference ID 061510. The call is also accessible via webcast at ir.wearfigs.com. A recording will be available shortly after the conclusion of the call until 11:59 p.m. ET on August 15, 2024. To access the replay, please dial 1-866-813-9403 (US) or +1-929-458-6194 (International) and the conference ID 632451. An archive of the webcast will be available on FIGS’ investor relations website at ir.wearfigs.com.
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 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 uses “free cash flow” as a useful supplemental measure of liquidity and as an additional basis for assessing its ability to generate cash. The Company calculates “net income, as adjusted,” as net income adjusted to exclude transaction costs, expenses related to non-ordinary course disputes, other than temporary impairment of held-to-maturity investments, stock-based compensation, including expense related to award modifications, accelerated performance awards and associated payroll taxes and costs, ambassador grants in connection with its initial public offering, and expense resulting from the retirement of a former CFO of the Company, 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. The Company calculates “free cash flow” as net cash (used in) provided by operating activities reduced by capital expenditures, including purchases of property and equipment and capitalized software development costs.
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.”
The Company has also included herein “active customers,” “net revenues per active customer” and “average order value,” which are key operational and business metrics that are important to understanding Company performance. The Company believes the number of active customers is an important indicator of growth as it reflects the reach of the Company’s digital platform, brand awareness and overall value proposition. The Company defines an active customer as a unique customer account that has made at least one purchase in the preceding 12-month period. In any particular period, the Company determines the 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. The Company believes measuring net revenues per active customer is important to understanding engagement and retention of customers, and as such, the value proposition for its customer base. The Company defines net revenues per active customer as the sum of total net revenues in the preceding 12-month period divided by the current period active customers. The Company defines average order value as the sum of the total net revenues in a given period divided by the total orders placed in that period. Total orders are the summation of all completed individual purchase transactions in a given period. The Company believes its relatively high average order value demonstrates the premium nature of its products. As the Company expands into and increases its presence in additional product categories, price points and international markets, average order value may fluctuate.
Active customers as of June 30, 2024 and 2023, respectively, net revenues per active customer as of June 30, 2024 and 2023, respectively, and average order value for the three and six months ended June 30, 2024 and 2023, respectively, are presented below under the heading “Key Operating Metrics.”
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 that feature an unmatched combination of comfort, durability, function, and style. We share stories about healthcare professionals’ experiences in ways that inspire them. We build meaningful connections within the healthcare community that we created. Above all, we seek to make an impact for our community, including by advocating for them and always having their backs.
We serve healthcare professionals in numerous countries in
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 strategy of combining product innovation with top of funnel marketing; the Company’s expectation of sustaining its momentum into the second half of the year; the Company’s Olympics campaign; the Company’s share repurchase program and growth and capital return plans; and the Company’s outlook as to net revenues growth and adjusted EBITDA margin for the full year ending December 31, 2024; all of which reflect the Company’s expectations based upon currently available information and data. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, the Company’s actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. The following important factors and uncertainties, among others, could cause actual results, performance or achievements to differ materially from those described in these forward-looking statements: the Company’s ability to maintain its historical growth; the Company’s ability to maintain profitability; the Company’s ability to maintain the value and reputation of its brand; the Company’s ability to attract new customers, retain existing customers, and to maintain or increase sales to those customers; the success of the Company’s marketing efforts; the Company’s ability to maintain a strong community of engaged customers and Ambassadors; negative publicity related to the Company’s marketing efforts or use of social media; the Company’s ability to successfully develop and introduce new, innovative and updated products; the competitiveness of the market for healthcare apparel; the Company’s ability to maintain its key employees; the Company’s ability to attract and retain highly skilled team members; risks associated with expansion into, and conducting business in, international markets; changes in, or disruptions to, the Company’s shipping arrangements; the successful operation of the Company’s distribution and warehouse management systems; the Company’s ability to accurately forecast customer demand, manage its inventory, and plan for future expenses; the impact of changes in consumer confidence, shopping behavior and consumer spending on demand for the Company’s products; the impact of macroeconomic trends on the Company’s operations; the Company’s reliance on a limited number of third-party suppliers; the fluctuating costs of raw materials; the Company’s failure to protect proprietary, confidential or sensitive information or personal customer data, or risks of cyberattacks; the Company’s failure to protect its intellectual property rights; the fact that the operations of many of the Company’s suppliers and vendors are subject to additional risks that are beyond its control; and other risks, uncertainties, and factors discussed in the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 to be filed with the Securities and Exchange Commission (“SEC”), the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 28, 2024, and the Company’s other periodic filings with the SEC. The forward-looking statements in this press release speak only as of the time made and the Company does not undertake to update or revise them to reflect future events or circumstances.
FIGS, INC.
|
||||||
|
As of |
|||||
|
June 30,
|
|
December 31,
|
|||
Assets |
(Unaudited) |
|
|
|||
Current assets |
|
|
|
|||
Cash and cash equivalents |
$ |
131,811 |
|
|
$ |
144,173 |
Short-term investments |
|
136,719 |
|
|
|
102,522 |
Accounts receivable |
|
12,719 |
|
|
|
7,469 |
Inventory, net |
|
119,294 |
|
|
|
119,040 |
Prepaid expenses and other current assets |
|
16,697 |
|
|
|
12,455 |
Total current assets |
|
417,240 |
|
|
|
385,659 |
Non-current assets |
|
|
|
|||
Property and equipment, net |
|
35,266 |
|
|
|
24,864 |
Operating lease right-of-use assets |
|
55,003 |
|
|
|
43,059 |
Deferred tax assets |
|
16,300 |
|
|
|
18,291 |
Other assets |
|
2,214 |
|
|
|
1,336 |
Total non-current assets |
|
108,783 |
|
|
|
87,550 |
Total assets |
$ |
526,023 |
|
|
$ |
473,209 |
Liabilities and stockholders’ equity |
|
|
|
|||
Current liabilities |
|
|
|
|||
Accounts payable |
$ |
19,910 |
|
|
$ |
14,749 |
Operating lease liabilities |
|
11,749 |
|
|
|
8,230 |
Accrued expenses |
|
21,610 |
|
|
|
7,906 |
Accrued compensation and benefits |
|
4,104 |
|
|
|
7,312 |
Sales tax payable |
|
3,217 |
|
|
|
3,149 |
Gift card liability |
|
8,034 |
|
|
|
8,240 |
Deferred revenue |
|
2,825 |
|
|
|
2,160 |
Returns reserve |
|
3,514 |
|
|
|
2,989 |
Income tax payable |
|
1,640 |
|
|
|
2,557 |
Total current liabilities |
|
76,603 |
|
|
|
57,292 |
Non-current liabilities |
|
|
|
|||
Operating lease liabilities, non-current |
|
47,532 |
|
|
|
38,884 |
Other non-current liabilities |
|
183 |
|
|
|
183 |
Total liabilities |
$ |
124,318 |
|
|
$ |
96,359 |
Commitments and contingencies |
|
|
|
|||
Stockholders’ equity |
|
|
|
|||
Class A Common stock — par value |
|
16 |
|
|
|
16 |
Class B Common stock — par value |
|
— |
|
|
|
— |
Preferred stock — par value |
|
— |
|
|
|
— |
Additional paid-in capital |
|
337,447 |
|
|
|
315,075 |
Accumulated other comprehensive income (loss) |
|
(47 |
) |
|
|
5 |
Retained earnings |
|
64,289 |
|
|
|
61,754 |
Total stockholders’ equity |
|
401,705 |
|
|
|
376,850 |
Total liabilities and stockholders’ equity |
$ |
526,023 |
|
|
$ |
473,209 |
FIGS, INC.
|
||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
|||||||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenues |
$ |
144,225 |
|
$ |
138,132 |
|
|
$ |
263,518 |
|
|
$ |
258,364 |
|
Cost of goods sold |
|
46,961 |
|
|
42,098 |
|
|
|
84,118 |
|
|
|
76,654 |
|
Gross profit |
|
97,264 |
|
|
96,034 |
|
|
|
179,400 |
|
|
|
181,710 |
|
Operating expenses |
|
|
|
|
|
|
|
|||||||
Selling |
|
36,934 |
|
|
33,739 |
|
|
|
65,393 |
|
|
|
64,896 |
|
Marketing |
|
23,003 |
|
|
20,889 |
|
|
|
40,248 |
|
|
|
37,953 |
|
General and administrative |
|
35,774 |
|
|
34,840 |
|
|
|
71,763 |
|
|
|
68,997 |
|
Total operating expenses |
|
95,711 |
|
|
89,468 |
|
|
|
177,404 |
|
|
|
171,846 |
|
Net income from operations |
|
1,553 |
|
|
6,566 |
|
|
|
1,996 |
|
|
|
9,864 |
|
Other income, net |
|
|
|
|
|
|
|
|||||||
Interest income |
|
2,830 |
|
|
1,521 |
|
|
|
5,677 |
|
|
|
2,593 |
|
Other expense |
|
— |
|
|
(4 |
) |
|
|
(10 |
) |
|
|
(5 |
) |
Total other income, net |
|
2,830 |
|
|
1,517 |
|
|
|
5,667 |
|
|
|
2,588 |
|
Net income before provision for income taxes |
|
4,383 |
|
|
8,083 |
|
|
|
7,663 |
|
|
|
12,452 |
|
Provision for income taxes |
|
3,283 |
|
|
3,501 |
|
|
|
5,128 |
|
|
|
5,961 |
|
Net income |
$ |
1,100 |
|
$ |
4,582 |
|
|
$ |
2,535 |
|
|
$ |
6,491 |
|
Earnings attributable to Class A and Class B common stockholders |
|
|
|
|
|
|
|
|||||||
Basic earnings per share |
$ |
0.01 |
|
$ |
0.03 |
|
|
$ |
0.01 |
|
|
$ |
0.04 |
|
Diluted earnings per share |
$ |
0.01 |
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
0.04 |
|
Weighted-average shares outstanding—basic |
|
170,393,480 |
|
|
167,423,656 |
|
|
|
170,158,479 |
|
|
|
167,100,292 |
|
Weighted-average shares outstanding—diluted |
|
179,688,524 |
|
|
183,332,560 |
|
|
|
180,195,183 |
|
|
|
183,094,950 |
|
FIGS, INC.
|
|||||||
|
Six months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income |
$ |
2,535 |
|
|
$ |
6,491 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
1,963 |
|
|
|
1,372 |
|
Deferred income taxes |
|
1,991 |
|
|
|
(984 |
) |
Non-cash operating lease cost |
|
3,977 |
|
|
|
1,364 |
|
Stock-based compensation |
|
22,108 |
|
|
|
22,309 |
|
Accretion of discount on available-for-sale securities |
|
(2,723 |
) |
|
|
(260 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accrued interest |
|
(231 |
) |
|
|
— |
|
Accounts receivable |
|
(5,250 |
) |
|
|
597 |
|
Inventory |
|
(254 |
) |
|
|
10,170 |
|
Prepaid expenses and other current assets |
|
(5,973 |
) |
|
|
2,034 |
|
Other assets |
|
(878 |
) |
|
|
(1 |
) |
Accounts payable |
|
4,679 |
|
|
|
(9,100 |
) |
Accrued expenses |
|
11,310 |
|
|
|
(8,181 |
) |
Accrued compensation and benefits |
|
(3,208 |
) |
|
|
951 |
|
Sales tax payable |
|
68 |
|
|
|
(421 |
) |
Gift card liability |
|
(206 |
) |
|
|
508 |
|
Deferred revenue |
|
665 |
|
|
|
(2,009 |
) |
Returns reserve |
|
525 |
|
|
|
(144 |
) |
Income tax payable |
|
(917 |
) |
|
|
3,290 |
|
Operating lease liabilities |
|
(2,023 |
) |
|
|
(1,466 |
) |
Net cash provided by operating activities |
|
28,158 |
|
|
|
26,520 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(9,489 |
) |
|
|
(1,613 |
) |
Purchases of available-for-sale securities |
|
(137,850 |
) |
|
|
(38,343 |
) |
Maturities of available-for-sale securities |
|
106,555 |
|
|
|
— |
|
Net cash used in investing activities |
|
(40,784 |
) |
|
|
(39,956 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from stock option exercises and employee stock purchases |
|
264 |
|
|
|
637 |
|
Tax payments related to net share settlements on restricted stock units |
|
— |
|
|
|
(246 |
) |
Net cash provided by financing activities |
|
264 |
|
|
|
391 |
|
Net change in cash and cash equivalents |
|
(12,362 |
) |
|
|
(13,045 |
) |
Cash and cash equivalents, beginning of period |
|
144,173 |
|
|
|
159,775 |
|
Cash and cash equivalents, end of period |
$ |
131,811 |
|
|
$ |
146,730 |
|
FIGS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
(Unaudited)
The following table presents a reconciliation of net income, as adjusted to net income, which is the most directly comparable financial measure calculated in accordance with GAAP, and presents diluted earnings per share (“EPS”), as adjusted with diluted EPS:
|
Three months ended
|
|
Six months ended
|
|||||||||
|
2024 |
|
2023 |
|
2024 |
|
|
2023 |
|
|||
|
(in thousands, except share and per share amounts) |
|||||||||||
Net income |
$ |
1,100 |
|
$ |
4,581 |
|
$ |
2,535 |
|
$ |
6,490 |
|
Add (deduct): |
|
|
|
|
|
|
|
|||||
Expenses related to non-ordinary course disputes(1) |
|
— |
|
|
— |
|
|
— |
|
|
1,256 |
|
Income tax impacts of items above |
|
— |
|
|
— |
|
|
— |
|
|
(707 |
) |
Net income, as adjusted |
$ |
1,100 |
|
$ |
4,581 |
|
$ |
2,535 |
|
$ |
7,039 |
|
Diluted EPS |
$ |
0.01 |
|
$ |
0.02 |
|
$ |
0.01 |
|
$ |
0.04 |
|
Diluted EPS, as adjusted |
$ |
0.01 |
|
$ |
0.02 |
|
$ |
0.01 |
|
$ |
0.04 |
|
Weighted-average shares used to compute Diluted EPS and Diluted EPS, as adjusted |
|
179,688,524 |
|
|
183,332,560 |
|
|
180,195,183 |
|
|
183,094,950 |
|
(1) Exclusively represents attorney's fees, costs and expenses incurred by the Company in connection with the Company’s now-concluded litigation against Strategic Partners, Inc.
The following table presents a reconciliation of adjusted EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with GAAP, and presents adjusted EBITDA margin with net income margin, which is the most directly comparable financial measure calculated in accordance with GAAP:
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands, except margin) |
||||||||||||||
Net income |
$ |
1,100 |
|
|
$ |
4,581 |
|
|
$ |
2,535 |
|
|
$ |
6,490 |
|
Add (deduct): |
|
|
|
|
|
|
|
||||||||
Other income, net |
|
(2,830 |
) |
|
|
(1,517 |
) |
|
|
(5,667 |
) |
|
|
(2,588 |
) |
Provision for income taxes |
|
3,283 |
|
|
|
3,501 |
|
|
|
5,128 |
|
|
|
5,961 |
|
Depreciation and amortization expense(1) |
|
1,113 |
|
|
|
713 |
|
|
|
1,963 |
|
|
|
1,372 |
|
Stock-based compensation and related expense(2) |
|
10,266 |
|
|
|
11,618 |
|
|
|
21,963 |
|
|
|
22,482 |
|
Expenses related to non-ordinary course disputes(3) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,256 |
|
Adjusted EBITDA |
$ |
12,932 |
|
|
$ |
18,896 |
|
|
$ |
25,922 |
|
|
$ |
34,973 |
|
|
|
|
|
|
|
|
|
||||||||
Net revenues |
$ |
144,225 |
|
|
$ |
138,132 |
|
|
$ |
263,518 |
|
|
$ |
258,364 |
|
Net income margin(4) |
|
0.8 |
% |
|
|
3.4 |
% |
|
|
1.0 |
% |
|
|
2.5 |
% |
Adjusted EBITDA margin |
|
9.0 |
% |
|
|
13.7 |
% |
|
|
9.8 |
% |
|
|
13.5 |
% |
(1) Excludes amortization of debt issuance costs included in “Other income, net.”
(2) Includes stock-based compensation expense, payroll taxes, and costs related to equity award activity.
(3) Exclusively represents attorney's fees, costs and expenses incurred by the Company in connection with the Company’s now-concluded litigation against Strategic Partners, Inc.
(4) Net income margin represents net income as a percentage of net revenues.
The following table presents a reconciliation of free cash flow to net cash provided by operating activities, which is the most directly comparable financial measure calculated in accordance with GAAP:
|
Six months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||
Net cash provided by operating activities |
$ |
28,158 |
|
|
$ |
26,520 |
|
Less: capital expenditures |
|
(9,489 |
) |
|
|
(1,613 |
) |
Free cash flow |
$ |
18,669 |
|
|
$ |
24,907 |
|
FIGS, INC.
KEY OPERATING METRICS
(Unaudited)
Active customers as of June 30, 2024 and 2023, respectively, net revenues per active customer as of June 30, 2024 and 2023, respectively, and average order value for the three and six months ended June 30, 2024 and 2023, respectively, are presented in the following tables:
|
As of June 30, |
||
|
2024 |
|
2023 |
|
(in thousands) |
||
Active customers |
2,628 |
|
2,476 |
|
As of June 30, |
||||
|
2024 |
|
2023 |
||
Net revenues per active customer |
$ |
210 |
|
$ |
215 |
|
Three months ended
|
|
Six months ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Average order value |
$ |
113 |
|
$ |
115 |
|
$ |
115 |
|
$ |
115 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808318967/en/
Investors:
IR@wearfigs.com
Media:
press@wearfigs.com
Source: FIGS, Inc.
FAQ
What were FIGS' net revenues for Q2 2024?
What was FIGS' net income for Q2 2024?
How much did FIGS' gross margin change in Q2 2024?
What is FIGS' new share repurchase program?
What is FIGS' revenue outlook for full-year 2024?
What are FIGS' expectations for Adjusted EBITDA margin in 2024?
