Revolve Group Announces Second Quarter 2024 Financial Results
Revolve Group (NYSE: RVLV) reported strong Q2 2024 results, with net sales up 3% to $282.5 million and net income more than doubling to $15.4 million. Key highlights include:
- Active customers grew 5% YoY to 2.58 million
- Gross margin steady at 54.0%
- Diluted EPS increased 110% to $0.21
- REVOLVE segment sales up 4%, FWRD segment down 4%
- International sales grew 13%
The company cited improved marketing efficiency and lower logistics costs as major contributors. Revolve Group maintains a strong balance sheet with $244.7 million in cash and no debt. For Q3 2024, the company expects gross margin of 52.3% to 52.5% and marketing expenses at 15.2% of net sales.
Revolve Group (NYSE: RVLV) ha riportato risultati solidi per il secondo trimestre del 2024, con vendite nette in aumento del 3% a 282,5 milioni di dollari e utile netto più che raddoppiato a 15,4 milioni di dollari. I punti salienti includono:
- Clienti attivi cresciuti del 5% rispetto all'anno precedente, raggiungendo 2,58 milioni
- Margine lordo stabile al 54,0%
- EPS diluito aumentato del 110% a 0,21 dollari
- Vendite del segmento REVOLVE aumentate del 4%, segmento FWRD in calo del 4%
- Vendite internazionali cresciute del 13%
La società ha citato l'efficienza migliorata nel marketing e i costi logistici più bassi come contributori principali. Revolve Group mantiene un bilancio solido con 244,7 milioni di dollari in contante e senza debiti. Per il terzo trimestre del 2024, la società prevede un margine lordo dal 52,3% al 52,5% e spese di marketing al 15,2% delle vendite nette.
Revolve Group (NYSE: RVLV) reportó resultados sólidos para el segundo trimestre de 2024, con ventas netas en aumento del 3% a 282,5 millones de dólares y ingresos netos más que duplicados a 15,4 millones de dólares. Los aspectos destacados incluyen:
- Clientes activos crecieron un 5% interanual hasta 2,58 millones
- Margen bruto estable en 54,0%
- EPS diluido aumentó un 110% a 0,21 dólares
- Ventas del segmento REVOLVE aumentaron un 4%, segmento FWRD disminuyó un 4%
- Las ventas internacionales crecieron un 13%
La compañía citó una mayor eficiencia en marketing y menores costos logísticos como contribuyentes clave. Revolve Group mantiene un balance sólido con 244,7 millones de dólares en efectivo y sin deudas. Para el tercer trimestre de 2024, la compañía espera un margen bruto del 52,3% al 52,5% y gastos de marketing en un 15,2% de las ventas netas.
Revolve Group (NYSE: RVLV)는 2024년 2분기 강력한 실적을 보고했으며, 순매출이 3% 증가하여 2억 8천 2백 5십만 달러에 달하고, 순이익은 1540만 달러로 두 배 이상 증가했습니다. 주요 하이라이트는 다음과 같습니다:
- 활성 고객 수가 전년 대비 5% 증가하여 258만 명에 이릅니다
- 총 마진은 54.0%로 안정적입니다
- 희석 기준 EPS가 110% 증가하여 0.21달러가 되었습니다
- REVOLVE 세그먼트 매출이 4% 증가하고, FWRD 세그먼트는 4% 감소했습니다
- 국제 매출이 13% 증가했습니다
회사는 개선된 마케팅 효율성과 낮은 물류 비용을 주요 기여 요인으로 언급했습니다. Revolve Group은 2억 4천 4백 70만 달러의 현금과 부채가 없는 강력한 재무 상태를 유지하고 있습니다. 2024년 3분기에는 총 마진이 52.3%에서 52.5%에 이를 것으로 예상하며, 마케팅 비용은 순매출의 15.2%로 추정하고 있습니다.
Revolve Group (NYSE: RVLV) a annoncé des résultats solides pour le deuxième trimestre 2024, avec des ventes nettes en augmentation de 3 % à 282,5 millions de dollars et un bénéfice net plus que doublé à 15,4 millions de dollars. Les points forts incluent :
- Le nombre de clients actifs a augmenté de 5 % d'une année sur l'autre, atteignant 2,58 millions
- La marge brute est restée stable à 54,0 %
- Le BPA dilué a augmenté de 110 % pour atteindre 0,21 dollar
- Les ventes du segment REVOLVE ont augmenté de 4 %, tandis que celles du segment FWRD ont diminué de 4%
- Les ventes internationales ont augmenté de 13%
L'entreprise a cité l'efficacité marketing améliorée et les coûts logistiques réduits comme des contributeurs majeurs. Revolve Group maintient une solide situation financière avec 244,7 millions de dollars en liquidités et aucune dette. Pour le troisième trimestre 2024, l'entreprise s'attend à une marge brute de 52,3 % à 52,5 % et à des dépenses marketing représentant 15,2 % des ventes nettes.
Die Revolve Group (NYSE: RVLV) meldete starke Ergebnisse für das 2. Quartal 2024, mit Nettoverkäufen, die um 3 % auf 282,5 Millionen US-Dollar stiegen und Nettoeinkommen, das sich auf 15,4 Millionen US-Dollar mehr als verdoppelte. Wichtige Highlights sind:
- Aktive Kunden wuchsen im Jahresvergleich um 5 % auf 2,58 Millionen
- Bruttomarge stabil bei 54,0 %
- Verdünnter EPS stieg um 110 % auf 0,21 US-Dollar
- Umsatz im REVOLVE-Segment wuchs um 4 %, das FWRD-Segment fiel um 4 %
- Internationale Verkäufe wuchsen um 13 %
Das Unternehmen nannte eine verbesserte Market efficiency und niedrigere Logistikkosten als Hauptbeiträge. Die Revolve Group hat eine starke Bilanz mit 244,7 Millionen US-Dollar Bargeld und keine Schulden. Für das 3. Quartal 2024 erwartet das Unternehmen eine Bruttomarge von 52,3 % bis 52,5 % und Marketingausgaben von 15,2 % des Nettoverkaufs.
- Net sales increased 3% year-over-year to $282.5 million
- Net income more than doubled, growing 111% to $15.4 million
- Active customers increased 5% to 2.58 million
- International sales grew 13% year-over-year
- Diluted EPS increased 110% to $0.21
- Improved marketing efficiency and lower logistics costs
- Debt-free balance sheet with $244.7 million in cash
- FWRD segment sales decreased 4% year-over-year
- Net cash used in operating activities increased to $24.7 million from $14.1 million in Q2 2023
- Cash and cash equivalents decreased 9% year-over-year to $244.7 million
Insights
Revolve Group's Q2 2024 results show promising signs of recovery and efficiency improvements. Net sales increased by 3% year-over-year to
Key positives include improved marketing efficiency, reduced logistics costs and a decrease in return rates. The gross margin remained stable at
The company's focus on AI technology and exploration of physical retail could drive future growth. However, investors should monitor inventory levels, which increased by
Revolve's Q2 results reflect broader trends in the e-commerce fashion industry. The
The company's focus on Millennial and Gen Z consumers remains strategically sound, as these demographics continue to drive online fashion purchases. The exploration of physical retail is an interesting move, potentially addressing the 'touch-and-feel' aspect that online-only retailers often lack.
The
"I'm thrilled with our team's performance that fueled a strong second quarter, highlighted by a return to top-line growth and a more than doubling of our net income year-over-year," said co-founder and co-CEO Mike Karanikolas. "Key contributors to our strong results were significantly improved marketing efficiency and greater efficiency in our logistics costs, helped by the first year-over-year decrease in our return rate in more than three years."
"It is gratifying to see our team's hard work on growth and efficiency initiatives deliver strong positive results on the top and bottom lines," said co-founder and co-CEO Michael Mente. "Beyond the numbers, we continue to make great progress on longer-term initiatives that we believe further reinforce our foundation for profitable growth in the years to come, including growing our active customer base, expanding our international presence, increasing our share of wallet through adjacent product categories, leveraging AI technology to even further elevate the customer experience, and exploring physical retail as a new way to connect with the next-generation consumer."
Second Quarter 2024 Financial Summary
Three Months Ended June 30, | ||||||||||
2024 | 2023 | YoY Change | ||||||||
(in thousands, except percentages) | ||||||||||
Net sales | $ | 282,456 | $ | 273,729 | 3 % | |||||
Gross profit | $ | 152,606 | $ | 147,698 | 3 % | |||||
Gross margin | 54.0 | % | 54.0 | % | ||||||
Net income | $ | 15,377 | $ | 7,303 | 111 % | |||||
Adjusted EBITDA (non-GAAP financial measure) | $ | 20,474 | $ | 10,377 | 97 % | |||||
Net cash used in operating activities | $ | (24,669) | $ | (14,097) | NM | |||||
Free cash flow (non-GAAP financial measure) | $ | (26,653) | $ | (15,069) | NM | |||||
NM - not meaningful |
Operational Metrics
Three Months Ended June 30, | ||||||||||
2024 | 2023 | YoY Change | ||||||||
(in thousands, except average order value and percentages) | ||||||||||
Active customers (trailing 12 months) | 2,577 | 2,458 | 5 % | |||||||
Total orders placed | 2,271 | 2,268 | 0 % | |||||||
Average order value | $ | 306 | $ | 301 | 2 % | |||||
Additional Second Quarter 2024 Metrics and Results Commentary
- Trailing 12-month Active customers grew to 2,577,000 as of June 30, 2024, an increase of
5% year-over-year. - Net sales were
$282.5 million 3% . - Gross profit was
$152.6 million 3% . - Gross margin was
54.0% , an increase of 7 basis points year-over-year, driven by margin expansion in the REVOLVE segment, which was partially offset by a year-over-year decline in the FWRD segment. - Net income was
$15.4 million 111% . - Adjusted EBITDA was
$20.5 million 97% that primarily reflects a year-over-year increase in net sales and gross profit combined with increased year-over-year efficiency in our marketing investment and selling and distribution costs, partially offset by year-over-year growth in general and administrative expenses in the second quarter of 2024 that outpaced our growth in net sales. - Diluted earnings per share (EPS) was
$0.21 110% .
Additional Net Sales Commentary
- REVOLVE segment net sales were
$245.5 million 4% . - FWRD segment net sales were
$36.9 million 4% . - Domestic net sales were
$225.1 million 1% - International net sales were
$57.4 million 13% , driven by growth in nearly all major regions.
Cash Flow and Balance Sheet
- Net cash (used in) provided by operating activities was
$(24.7) million $13.7 million $(26.7) million $10.0 million - Stock repurchases were
$1.9 million $15.83 $59.5 million $100 million - Cash and cash equivalents: Cash and cash equivalents as of June 30, 2024 were
$244.7 million $24.6 million 9% , year-over-year from$269.3 million $40.5 million $100 million - Inventory as of June 30, 2024 was
$234.3 million $29.0 million 14% , from June 30, 2023.
Additional trend information regarding Revolve Group's second quarter of 2024 financial results and operating metrics is available in the Q2 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 Second Quarter of 2024
Net sales in July 2024 increased by a mid-single digit percentage year-over-year, a sequential improvement compared to the year-over-year trend reported for the second quarter of 2024.
2024 Business Outlook
Based on information available to us as of August 6, 2024, we are providing the following guidance for the full year ending December 31, 2024 and the third quarter ending September 30, 2024.
Updated FY 2024 Outlook | Prior FY 2024 Outlook | |
Gross margin | ||
Fulfillment expenses | ||
Selling and distribution expenses | ||
Marketing expenses | ||
General and administrative expenses | ||
Effective tax rate | ||
Third Quarter 2024 Outlook | ||
Gross margin | ||
Fulfillment expenses | ||
Selling and distribution expenses | ||
Marketing expenses | ||
General and administrative expenses |
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
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 growth prospects and outlook for the third 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
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 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 the most directly comparable GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release. We encourage reviewing the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items.
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, certain transaction costs 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, and purchases of rental product. We view free cash flow as an important indicator of our liquidity because it measures the amount of cash we generate. Free cash flow also reflects changes in working capital.
Active Customers
We define an active customer as a unique customer account from which a purchase was made across our platform at least once in the preceding 12-month period. In any particular period, we determine our number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. We view the number of active customers as a key indicator of our growth, the reach of our sites, the value proposition and consumer awareness of our brand, the continued use of our sites by our customers and their desire to purchase our products.
Total Orders Placed
We define total orders placed as the total number of orders placed by our customers, prior to product returns, across our platform in any given period. We view total orders placed as a key indicator of the velocity of our business and an indication of the desirability of our products and sites to our customers. Total orders placed, together with average order value, is an indicator of the net sales we expect to recognize in a given period.
Average Order Value
We define average order value as the sum of the total gross sales from our sites in a given period, prior to product returns, divided by the total orders placed in that period. We believe our high average order value demonstrates the premium nature of our product assortment. Average order value varies depending on the site through which we sell merchandise, the mix of product categories sold, the number of units in each order, the percentage of sales at full price, and for sales at less than full price, the level of markdowns.
About Revolve Group, Inc.
Revolve Group, Inc. (NYSE: RVLV) is the next-generation fashion retailer for Millennial and Generation Z consumers. As a trusted premium lifestyle brand and a go-to online source for discovery and inspiration, we deliver an engaging customer experience from a vast yet curated offering of apparel, footwear, accessories, beauty and home products. Our dynamic platform connects a deeply engaged community of millions of consumers, thousands of global fashion influencers and more than 1,000 emerging, established and owned brands.
We were founded in 2003 by our co-CEOs, Michael Mente and Mike Karanikolas. We sell merchandise through two complementary segments, REVOLVE and FWRD, that leverage one platform. Through REVOLVE, we offer an assortment of premium apparel, footwear, accessories and beauty products from emerging, established and owned brands. Through FWRD, we offer an assortment of curated and elevated iconic and emerging luxury brands. For more information, visit www.revolve.com.
Contacts:
Investors:
Erik Randerson, CFA
562.677.9513
IR@revolve.com
Media:
Jennifer Walker
revolve@walkerdrawas.com
REVOLVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales | $ | 282,456 | $ | 273,729 | $ | 553,037 | $ | 553,338 | ||||||||
Cost of sales | 129,850 | 126,031 | 258,929 | 266,420 | ||||||||||||
Gross profit | 152,606 | 147,698 | 294,108 | 286,918 | ||||||||||||
Operating expenses: | ||||||||||||||||
Fulfillment | 9,272 | 9,401 | 18,665 | 18,472 | ||||||||||||
Selling and distribution | 50,442 | 50,893 | 98,880 | 102,351 | ||||||||||||
Marketing | 42,961 | 51,497 | 84,340 | 89,840 | ||||||||||||
General and administrative | 33,496 | 28,552 | 66,460 | 56,644 | ||||||||||||
Total operating expenses | 136,171 | 140,343 | 268,345 | 267,307 | ||||||||||||
Income from operations | 16,435 | 7,355 | 25,763 | 19,611 | ||||||||||||
Other income, net | (4,271) | (2,381) | (9,592) | (8,966) | ||||||||||||
Income before income taxes | 20,706 | 9,736 | 35,355 | 28,577 | ||||||||||||
Provision for income taxes | 5,329 | 2,433 | 9,105 | 7,102 | ||||||||||||
Net income | $ | 15,377 | $ | 7,303 | $ | 26,250 | $ | 21,475 | ||||||||
Earnings per share of Class A and Class B | ||||||||||||||||
Basic | $ | 0.22 | $ | 0.10 | $ | 0.37 | $ | 0.29 | ||||||||
Diluted | $ | 0.21 | $ | 0.10 | $ | 0.37 | $ | 0.29 | ||||||||
Weighted average number of shares of Class A and | ||||||||||||||||
Basic | 70,833 | 73,442 | 70,880 | 73,406 | ||||||||||||
Diluted | 71,544 | 74,081 | 71,538 | 74,229 | ||||||||||||
REVOLVE GROUP, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(In thousands, except share and per share data) | ||||||||
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 244,737 | $ | 245,449 | ||||
Accounts receivable, net | 17,549 | 12,405 | ||||||
Inventory | 234,324 | 203,587 | ||||||
Income taxes receivable | 629 | 1,625 | ||||||
Prepaid expenses and other current assets | 74,985 | 65,523 | ||||||
Total current assets | 572,224 | 528,589 | ||||||
Property and equipment (net of accumulated depreciation of | 8,056 | 7,763 | ||||||
Right-of-use lease assets | 40,253 | 36,440 | ||||||
Intangible assets, net | 1,946 | 1,875 | ||||||
Goodwill | 2,042 | 2,042 | ||||||
Other assets | 3,277 | 2,172 | ||||||
Deferred income taxes | 30,005 | 30,005 | ||||||
Total assets | $ | 657,803 | $ | 608,886 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 62,813 | $ | 47,821 | ||||
Income taxes payable | 1,269 | — | ||||||
Accrued expenses | 40,384 | 40,714 | ||||||
Returns reserve | 72,058 | 63,780 | ||||||
Current lease liabilities | 8,095 | 6,863 | ||||||
Other current liabilities | 30,988 | 30,442 | ||||||
Total current liabilities | 215,607 | 189,620 | ||||||
Non-current lease liabilities | 36,441 | 34,126 | ||||||
Total liabilities | 252,048 | 223,746 | ||||||
Stockholders' equity: | ||||||||
Class A common stock, | 38 | 39 | ||||||
Class B common stock, | 33 | 33 | ||||||
Additional paid-in capital | 121,334 | 116,713 | ||||||
Retained earnings | 284,350 | 268,355 | ||||||
Total stockholders' equity | 405,755 | 385,140 | ||||||
Total liabilities and stockholders' equity | $ | 657,803 | $ | 608,886 | ||||
REVOLVE GROUP, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Six Months Ended June 30, | ||||||||
2024 | 2023 | |||||||
Operating activities: | ||||||||
Net income | $ | 26,250 | $ | 21,475 | ||||
Adjustments to reconcile net income to net cash provided by operating | ||||||||
Depreciation and amortization | 2,518 | 2,459 | ||||||
Rental product depreciation | 107 | — | ||||||
Equity-based compensation | 4,653 | 3,001 | ||||||
Bargain purchase gain | (1,883) | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (5,144) | (5,777) | ||||||
Inventories | (27,988) | 9,911 | ||||||
Income taxes receivable | 996 | (3,122) | ||||||
Prepaid expenses and other current assets | (9,462) | 489 | ||||||
Other assets | (275) | (429) | ||||||
Accounts payable | 14,992 | (4,782) | ||||||
Income taxes payable | 1,269 | 914 | ||||||
Accrued expenses | (330) | (2,286) | ||||||
Returns reserve | 8,278 | 2,969 | ||||||
Right-of-use lease assets and current and non-current | (266) | 1,690 | ||||||
Other current liabilities | 7 | 8,220 | ||||||
Net cash provided by operating activities | 13,722 | 34,732 | ||||||
Investing activities: | ||||||||
Purchases of property and equipment | (2,782) | (2,120) | ||||||
Purchases of rental product | (937) | — | ||||||
Cash paid for acquisition | (427) | — | ||||||
Net cash used in investing activities | (4,146) | (2,120) | ||||||
Financing activities: | ||||||||
Proceeds from the exercise of stock options, net of | (32) | 410 | ||||||
Repurchases of Class A common stock | (10,018) | — | ||||||
Net cash (used in) provided by financing activities | (10,050) | 410 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (238) | 1,583 | ||||||
Net increase in cash and cash equivalents | (712) | 34,605 | ||||||
Cash and cash equivalents, beginning of period | 245,449 | 234,724 | ||||||
Cash and cash equivalents, end of period | $ | 244,737 | $ | 269,329 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes, net of refund | $ | 6,867 | $ | 9,221 | ||||
Operating leases | $ | 4,585 | $ | 3,549 | ||||
Supplemental disclosure of non-cash activities: | ||||||||
Lease assets obtained in exchange for new operating lease liabilities | $ | 7,180 | $ | 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 June 30, | Six Months Ended June 30, | |||||||||||||||
Net sales | 2024 | 2023 | 2024 | 2023 | ||||||||||||
REVOLVE | $ | 245,535 | $ | 235,149 | $ | 475,124 | $ | 466,802 | ||||||||
FWRD | 36,921 | 38,580 | 77,913 | 86,536 | ||||||||||||
Total | $ | 282,456 | $ | 273,729 | $ | 553,037 | $ | 553,338 | ||||||||
Gross profit | ||||||||||||||||
REVOLVE | $ | 137,895 | $ | 131,235 | $ | 265,567 | $ | 251,471 | ||||||||
FWRD | 14,711 | 16,463 | 28,541 | 35,447 | ||||||||||||
Total | $ | 152,606 | $ | 147,698 | $ | 294,108 | $ | 286,918 | ||||||||
The following table lists net sales by geographic area (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
$ | 225,057 | $ | 222,860 | $ | 444,190 | $ | 449,576 | |||||||||
Rest of the world | 57,399 | 50,869 | 108,847 | 103,762 | ||||||||||||
Total | $ | 282,456 | $ | 273,729 | $ | 553,037 | $ | 553,338 | ||||||||
REVOLVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
KEY OPERATING AND FINANCIAL METRICS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(in thousands, except average order value and percentages) | ||||||||||||||||
Gross margin | 54.0 | % | 54.0 | % | 53.2 | % | 51.9 | % | ||||||||
Adjusted EBITDA | $ | 20,474 | $ | 10,377 | $ | 33,741 | $ | 25,387 | ||||||||
Free cash flow | $ | (26,653) | $ | (15,069) | $ | 10,003 | $ | 32,612 | ||||||||
Active customers | 2,577 | 2,458 | 2,577 | 2,458 | ||||||||||||
Total orders placed | 2,271 | 2,268 | 4,494 | 4,546 | ||||||||||||
Average order value | $ | 306 | $ | 301 | $ | 302 | $ | 294 | ||||||||
REVOLVE GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
(Unaudited) | ||||||||||||||||
A reconciliation of non-GAAP Adjusted EBITDA to net income for the three and six months ended June 30, 2024 and 2023 is as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income | $ | 15,377 | $ | 7,303 | $ | 26,250 | $ | 21,475 | ||||||||
Excluding: | ||||||||||||||||
Other income, net | (4,271) | (2,381) | (9,592) | (8,966) | ||||||||||||
Provision for income taxes | 5,329 | 2,433 | 9,105 | 7,102 | ||||||||||||
Depreciation and amortization | 1,175 | 1,241 | 2,518 | 2,459 | ||||||||||||
Equity-based compensation | 2,094 | 1,723 | 4,653 | 3,001 | ||||||||||||
Transaction costs | 325 | — | 325 | — | ||||||||||||
Non-routine items(1) | 445 | 58 | 482 | 316 | ||||||||||||
Adjusted EBITDA | $ | 20,474 | $ | 10,377 | $ | 33,741 | $ | 25,387 | ||||||||
(1) | Non-routine items in the three and six months ended June 30, 2024 represent an accrual and a charge for a previously disclosed and now settled matter related to non-routine import and export fees. Non-routine items in the three and six months ended June 30, 2023 represent an accrual and a charge related to a separate settled legal matter. |
A reconciliation of non-GAAP free cash flow to net cash provided by operating activities for the three and six months ended June 30, 2024 and 2023 is as follows: | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
(in thousands) | ||||||||||||||||
Net cash (used in) provided by operating activities | $ | (24,669) | $ | (14,097) | $ | 13,722 | $ | 34,732 | ||||||||
Purchases of property and equipment | (1,047) | (972) | (2,782) | (2,120) | ||||||||||||
Purchases of rental product | (937) | — | (937) | — | ||||||||||||
Free cash flow | $ | (26,653) | $ | (15,069) | $ | 10,003 | $ | 32,612 | ||||||||
Net cash used in investing activities | $ | (2,411) | $ | (972) | $ | (4,146) | $ | (2,120) | ||||||||
Net cash (used in) provided by financing activities | $ | (1,786) | $ | 249 | $ | (10,050) | $ | 410 | ||||||||
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SOURCE Revolve Group, Inc.
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