FIGS Inc (FIGS) Reports 10.7% YoY Net Revenue Growth in Q3 2023
FIGS Inc (NYSE:FIGS) reports a 10.7% YoY increase in net revenues, reaching $142.4 million in Q3 2023.
Net income for the quarter stands at $6.1 million, with a net income margin of 4.2%.
The company's adjusted EBITDA margin expands to 17.2%, exceeding expectations.
FIGS Inc (NYSE:FIGS) raises its full-year guidance and appoints a new independent director to its board.
On November 2, 2023, FIGS Inc (NYSE:FIGS), a direct-to-consumer apparel and lifestyle brand dedicated to the healthcare community, released its third quarter 2023 financial results. The company reported a 10.7% year-over-year increase in net revenues, reaching $142.4 million. This growth was primarily driven by an increase in orders from both existing and new customers.
Financial Performance
The company's gross margin for the quarter was 68.4%, a decrease of 220 basis points year over year, primarily due to a shift in product mix and a higher mix of promotional sales. Operating expenses increased by 9.8% YoY to $87.4 million. However, as a percentage of net revenues, operating expenses decreased to 61.5% from 61.9% in the prior year period.
Net income for the quarter was $6.1 million, with a net income margin of 4.2%, compared to 3.1% in the same period last year. The company's adjusted EBITDA was $24.4 million, an increase of $3.4 million year over year, and the adjusted EBITDA margin was 17.2%, compared to 16.4% in the same period last year.
Key Operating Metrics
As of September 30, 2023, the number of active customers increased by 19.6% to 2.6 million. However, net revenues per active customer decreased by 6.6% YoY. The average order value (AOV) was $114, an increase of 1.8% YoY, primarily driven by an increase in units per transaction.
Board Appointment and Outlook
FIGS Inc (NYSE:FIGS) also announced the appointment of Mario Marte, former Chief Financial Officer of Chewy, Inc., to its Board of Directors. The company raised its full-year 2023 outlook, expecting a net revenues growth of approximately 8.5% and an adjusted EBITDA margin of approximately 14%.
Financial Statements Summary
As of September 30, 2023, FIGS Inc (NYSE:FIGS) reported total assets of $441.78 million, up from $395.06 million as of December 31, 2022. The company's total liabilities stood at $86.59 million, slightly lower than the $87.33 million reported at the end of 2022. The company's total stockholders' equity increased to $355.19 million from $307.74 million.
For the nine months ended September 30, 2023, the company reported net income of $12.64 million, compared to $17.80 million for the same period in 2022. The company's net cash provided by operating activities stood at $46.04 million, up from $44.88 million in the same period last year.
Explore the complete 8-K earnings release (here) from FIGS Inc for further details.
This article first appeared on GuruFocus.
