NYSE$RVLV

Revolve Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third quarter 2021 financial results, featuring record quarterly net sales and increased customer engagement.

Revolve Group reported record quarterly net sales in Q3 2021, with a 62% increase year-over-year and a 58% increase compared to Q3 2019. The company saw increased customer engagement, including record quarterly growth in active customers. Net income was $16.7 million, a year-over-year decrease of 14% primarily attributable to increased investments in brand marketing initiatives.

  • Net sales increased by 62% year-over-year, reaching $244.1 million.
  • Gross margin was 55.1%, a slight decrease of 16 basis points year-over-year.
  • Net income decreased by 14% year-over-year to $16.7 million due to increased investments in brand marketing.
  • Active customers increased by 12% year-over-year to 1.678 million.

Headline financials

Total Revenue

$244M

Previous: $151M+61.6%
EPS (adj)

$0.22

Previous: $0.27-18.5%
Gross Margin

55.1%

Previous: 55.3%-0.4%
Active Customers

1.7M

Previous: 1.5M+11.6%
Total Orders Placed

1.8M

Previous: 1.1M+60.4%
Average Order Value

$276.00

Previous: $232.00+19.0%
Adjusted EBITDA

$21.7M

Previous: $24M-9.8%
Capital Expenditures

-$1.77M

Previous: -$1.84M+4.1%
Free Cash Flow

$14.9M

Previous: $17.6M-15.3%
Net Income

$16.7M

Previous: $19.4M-14.3%
Operating Income

$19.2M

Previous: $21.8M-11.9%
Gross Profit

$134M

Previous: $83.5M+61.1%
Cash & Equivalents

$222M

Previous: $159M+39.6%
Total Assets

$449M

Previous: $291M+54.2%
Stock-Based Comp

$1.34M

Previous: $980K+36.3%

Revenue & EPS history

Revolve · Revenue · Quarterly

$244M

Q3 2021+61.6%vs Q3 2020
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Revolve · $204M total across 1 segment · Q3 2021

  • REVOLVE Segment
    $204M+56.4%

Forward guidance

The company's strong growth continued into the beginning of the fourth quarter, with net sales growth in October 2021 broadly in the range of the third quarter growth rate. However, the company remains guarded in its optimism due to COVID-19 and industry-wide supply chain challenges.

Tailwinds

  • Strong growth in the first three quarters of 2021 continued into the beginning of the fourth quarter.
  • Net sales growth in October 2021 was broadly in the range of the third quarter growth rate.
  • Excitement about recent momentum across the business.
  • Encouraging growth in Active Customers during the third quarter of 2021.
  • Brands are resonating well with next-generation consumers globally.

Headwinds

  • COVID-19 continues to present daily challenges.
  • Industry-wide supply chain challenges persist.
  • COVID-19 has negatively impacted certain aspects of operations.
  • COVID-19 has negatively impacted net sales in certain regions.
  • Company remains guarded in its optimism.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.5%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-4.7%

Avg return

30 days after

38%

12 / 32 earnings

Positive

+31.7%

Q3 2024

Best reaction

-19.3%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-11.0%-17.6%
Q4 2025-5.4%-7.0%-15.4%
Q3 2025+12.2%+10.9%+30.0%
Q1 2025-9.6%+4.5%+17.6%
Q4 2024-5.0%-11.7%-21.4%
Q3 2024+31.7%+24.5%+43.1%
Q2 2024+30.8%+26.2%+21.2%
Q1 2024+4.6%+2.9%-13.5%
Q4 2023+25.8%+33.9%+24.7%
Q3 2023-2.9%-3.1%+5.9%
Q2 2023-7.5%-6.7%-21.3%
Q1 2023-7.8%-8.1%-17.6%
Q4 2022+1.1%+6.3%-1.2%
Q3 2022-3.4%-11.3%+20.5%
Q2 2022-8.2%+2.7%-19.1%
Q1 2022-16.0%-25.0%-29.6%
Q4 2021-1.6%-9.7%+3.4%
Q3 2021+6.2%+12.5%-9.0%
Q2 2021-17.4%-11.1%-17.8%
Q1 2021+9.8%-5.3%+6.7%
Q4 2020+8.3%+25.8%+20.4%
Q3 2020-3.8%-4.5%+10.2%
Q2 2020+27.6%+17.2%-4.8%
Q1 2019-8.4%-6.9%+3.2%
Q1 2020+3.0%-6.8%+4.3%
Q4 2017-19.3%-18.4%-57.0%
Q4 2019-11.0%-13.6%-51.3%
Q3 2019-16.9%-21.1%-14.9%
Q3 2018-16.9%-21.1%-14.9%
Q4 2018-1.4%-9.3%-4.1%
Q2 2018-1.4%-9.3%-4.1%
Q2 2019-12.9%-14.1%-25.9%
Q1 2018
Q3 2017
Q2 2017
Q1 2017

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