Jun 30, 2024

FIGS Q2 2024 Earnings Report

Second quarter financial results released, exceeding Q2 2024 outlook and announcing a $50 million share repurchase authorization.

Key Takeaways

FIGS reported a 4.4% increase in net revenues to $144.2 million, with a gross margin of 67.4%. Operating expenses increased by 7.0% year over year. Net income was $1.1 million, or $0.01 in diluted earnings per share, and adjusted EBITDA was $12.9 million.

Net revenues increased by 4.4% year over year to $144.2 million.

Gross margin decreased to 67.4%, primarily from product mix shift.

Operating expenses increased by 7.0% year over year.

The company authorized a $50 million share repurchase program.

Total Revenue
$144M
Previous year: $138M
+4.4%
EPS
$0.01
Previous year: $0.02
-50.0%
Active Customers
2.63M
Previous year: 2.5M
+5.1%
Net Revenues Per Active Customer
$210
Previous year: $215
-2.3%
Average Order Value
$113
Gross Profit
$97.3M
Previous year: $96M
+1.3%
Cash and Equivalents
$132M
Previous year: $147M
-10.2%
Free Cash Flow
$7.55M
Previous year: $28.6M
-73.6%
Total Assets
$526M
Previous year: $411M
+28.0%

FIGS

FIGS

Forward Guidance

For the full year 2024, FIGS expects net revenues to be flat to 2% growth versus 2023 and adjusted EBITDA margin to be 9.5% - 10%.

Positive Outlook

  • Net revenues are expected to grow slightly compared to the previous year.
  • Adjusted EBITDA margin is projected to remain strong.
  • Company's strategy of combining product innovation with top of funnel marketing
  • Momentum into the second half of the year
  • Partnership with Team USA Medical Team

Challenges Ahead

  • 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