NYSE$RVLV

Revolve Group Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Revolve's Q4 2021 financial results were announced, showcasing significant growth and profitability.

Revolve Group reported exceptional Q4 2021 results with net sales growth of 70% year-over-year and a 63% increase compared to Q4 2019. The company achieved a record $29 million in net income for the quarter, a 55% increase year-over-year and a 250% increase compared to Q4 2019.

  • Net sales increased by 70% year-over-year, reaching $239.8 million.
  • Active customers grew by 25% year-over-year, reaching 1.8 million.
  • Net income increased by 55% year-over-year, reaching $29.4 million.
  • Diluted earnings per share increased by 50% year-over-year, reaching $0.39.

Headline financials

Total Revenue

$240M

Previous: $141M+70.4%
EPS (adj)

$0.39

Previous: $0.26+50.0%
Gross Margin

54.8%

Previous: 56.0%-2.1%
Active Customers

1.8M

Previous: 1.5K+124900.0%
Total Orders Placed

1.8M

No prior period
Average Order Value

$292.00

Previous: $256.00+14.1%
Adjusted EBITDA

$34.2M

Previous: $18.7M+82.3%
Capital Expenditures

$427K

Previous: $480K-11.0%
Free Cash Flow

-$6.53M

Previous: -$2.93M-122.4%
Net Income

$29.4M

Previous: $19M+55.0%
Operating Income

$31.9M

Previous: $16.6M+92.2%
Gross Profit

$131M

Previous: $78.8M+66.8%
Cash & Equivalents

$218M

Previous: $146M+49.6%
Total Assets

$480M

Previous: $306M+57.1%
Stock-Based Comp

$1.12M

Previous: $952K+17.9%

Revenue & EPS history

Revolve · Revenue · Quarterly

$240M

Q4 2021+70.4%vs Q4 2020
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

Revolve · $200M total across 1 segment · Q4 2021

  • REVOLVE Segment
    $200M+68.1%

Forward guidance

The company's strong growth continued into the first quarter of 2022, with net sales increasing year-over-year at a growth rate in the same zone as the 70% year-over-year growth in net sales during the fourth quarter of 2021.

Tailwinds

  • Strong growth continued into Q1 2022.
  • Net sales increased year-over-year at a growth rate in the same zone as Q4 2021.
  • REVOLVE segment net sales were $200.0 million, a year-over-year increase of 68%.
  • FWRD segment net sales were $39.8 million, a year-over-year increase of 83%.
  • Domestic net sales increased 80% year-over-year.

Headwinds

  • Prior-year monthly net sales comparisons will become more difficult for the remainder of Q1.
  • Net sales during January and February 2021 increased year-over-year by a low single digit percentage.
  • Comparisons for the remainder of Q1 2022 will be more difficult than for the quarter-to-date period.
  • The month of March 2021 contributed the highest monthly net sales in the first quarter of 2021 by a wide margin.
  • Effective tax rate is expected to be around 25%.

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 Q4 2021

Historical avgQ4 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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