FIGS, Inc. (NYSE:FIGS) Q4 2022 Earnings Conference Call February 28, 2023 5:00 PM ET Company Participants Jean Fontana - SVP, Investor Relations Trina Spear - Co-CEO Daniella Turenshine - CFO Conference Call Participants Mike Binetti - Credit Suisse Ed Yruma - Piper Sandler Lauren Schenk - Morgan Stanley Brian Nagel - Oppenheimer Brooke Roach - Goldman Sachs Alice Xiao - Bank of America Merrill Lynch Dana Telsey - Telsey Advisory Group Bob Drbul - Guggenheim Partners Krista Zuber - Cowen and Company Rick Pa ...

Table of Contents Net revenues consist of sales of healthcare apparel, footwear and other products primarily through our digital platform. We recognize product sales at the time control is transferred to the customer, which is when the product is shipped to the customer. Net revenues represent the sale of these items and shipping revenue, net of estimated returns and discounts. Net revenues are primarily driven by the growth in the number of active customers, the frequency with which customers purchase and ...

Financial Data and Key Metrics Changes - The company reported a net revenue growth of 25% year-over-year, reaching $129 million compared to $103 million in Q3 2021 [39] - Gross margin was 70.6%, down from 72.7% in Q3 2021, primarily due to increased freight costs and a higher mix of promotions [42] - Adjusted EBITDA margin was 16.4%, compared to 21.6% in Q3 2021, with adjusted net income of $4.1 million [48] Business Line Data and Key Metrics Changes - Active customers increased by 24% to 2.2 million, with a record level of customer reactivation [8][39] - Average order value (AOV) grew by 10% year-over-year, driven by higher units per transaction (UPT) and an increase in average unit retail (AUR) [40] - Lifestyle offerings generated a sales growth of 65% in the quarter, accounting for 17% of net revenue [9][117] Market Data and Key Metrics Changes - The international business saw a strong performance with a 49% increase in net revenue, particularly in Canada, the U.K., and European markets [35] - The company has penetrated approximately 10% of U.S. healthcare professionals, indicating significant growth potential [24] Company Strategy and Development Direction - The company is focusing on product innovation, particularly in scrubs and lifestyle offerings, to enhance customer engagement and meet healthcare professionals' needs [14][20] - Strategic investments will continue to advance the company's leadership position in the healthcare apparel industry while managing costs [13][38] - The company plans to expand its international presence and enhance customer experience through localized marketing campaigns [36][37] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic trends, including inflation, are impacting customer purchasing behavior, leading to a decrease in purchase frequency [11][41] - The company expects fourth-quarter net revenue growth to be in the mid-single-digit range, reflecting ongoing challenges in the macro environment [54] - Management remains committed to long-term growth strategies, including product innovation and international expansion, despite short-term challenges [62] Other Important Information - The company plans to soft launch extended sizes (3XL to 6XL) to address an underserved segment of the healthcare community [23] - A new mobile app has been launched to enhance customer engagement and provide relevant educational content [31] Q&A Session Summary Question: Updated guidance for Q4 and current business trends - Management indicated that the forecast for Q4 reflects trends observed at the end of September, with a decrease in frequency and slightly lower AOV year-over-year [66][67] Question: Response to color launches and customer behavior - Management acknowledged that while color launches still drive sales, they are adjusting their strategy to align with demand trends and focusing on product innovation [70][74] Question: Change in accounting for charitable contributions - The company updated its accrual methodology for charitable contributions, impacting the P&L by about 190 basis points, which is not expected to repeat [78] Question: $1 billion revenue target by 2025 - Management remains focused on the $1 billion target but acknowledges macro volatility may affect timing, while highlighting opportunities in product innovation and international expansion [79][84] Question: Inventory management and future sales expectations - Management expects to improve inventory positioning by mid-2023 through shallow buys and enhanced supply chain strategies [95][96] Question: Growth opportunities in the Teams business - The Teams business is seen as a significant growth opportunity, especially with the introduction of extended sizes [102][103]

FARIDA L., BSN RN FARIDA L., BSN RN Q3 Earnings Presentation 2022 Disclaimer Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by FIGS, Inc. (the "Company") or any officer, director, employee, agent or advisor of the Company. This presentation does not purport to be all inclusive or to contain all of the information you may desire in connection with your investigation of the Company. Information provided in this presentation speak only as of th ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-40448 FIGS, Inc. (Exact Name of Registrant as Specified in its Charter) Dela ...

OFIGS Q2 Earnings Presentation 2022 FIGS / Quarterly Highlights (unaudited) ($ in millions) At a G la n c e Q2'22 NET REVENUES Q2'22 PROFITABILITY17.6% 70.6% $4.9M LOYAL COMMUNITY +21% YoY Q2'21 Q2'22 $122.2 GROSS MARGIN ADJ. EBITDA MARGIN(1) NET INCOME $101.1 Q2'22 ACTIVE CUSTOMERS(2) Q2'22 AVERAGE ORDER VALUE(2) $109 Q2'22 NET REVENUES PER ACTIVE CUSTOMER(2) $227 +5.8% YoY +3.7% YoY 2.0M +26.2% YoY (1) Adjusted EBITDA margin is a non-GAAP financial measure. See "Non-GAAP Financial Measures and Key Operati ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________________ to ___________________ Commission File Number: 001-39549 FIGS, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware ...

Financial Data and Key Metrics Changes - Net revenues increased by 26% year-over-year to $110 million, with an adjusted EBITDA margin of 23% [8][10][33] - Active customer base grew by 31% year-over-year to nearly 2 million, with trailing 12-month net revenues per active customer increasing by $13 to $226 [10][33] - Average order value (AOV) rose by 16% year-over-year to $116 [10][34] - Gross margin decreased by 40 basis points year-over-year to 71.2% due to increased airfreight usage and higher freight rates [36] - Net income for Q1 was $9 million, or $0.05 diluted EPS, with adjusted net income at $10.5 million [40] Business Line Data and Key Metrics Changes - Lifestyle business grew by 81% year-over-year, now representing 18% of net revenues, up from 12% [10] - International business increased by 59%, accounting for 8% of net revenues, up from 6% [10][28] Market Data and Key Metrics Changes - Searches for the term "scrubs" grew by 3% year-over-year, while searches for "FIGS" increased by 44% [17] - The company is targeting select cities for marketing campaigns, focusing on areas with a high concentration of healthcare professionals [26] Company Strategy and Development Direction - The company aims to achieve at least $1 billion in annual net revenue by 2025, focusing on product innovation and deepening customer connections [17][18] - Plans to increase airfreight usage to mitigate supply chain disruptions, despite the impact on gross margins [14][48] - Continued expansion into international markets, with a soft launch in seven new EU countries [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged supply chain disruptions and macroeconomic factors affecting customer spending, but remains confident in the business model's resilience [15][30] - The company revised its full-year revenue outlook to approximately $510 million to $530 million, reflecting supply chain challenges [44] - Anticipated gross margin for the year is now between 67% to 68%, down from previous expectations of over 70% [48] Other Important Information - The company ended the quarter with cash and cash equivalents of $189.4 million, allowing for strategic capital deployment [42] - Inventory increased to $102.8 million due to higher in-transit inventory and extended lead times [43] Q&A Session Summary Question: Impact of COVID pull forward vs. macro environment on customer spending - Management indicated that supply chain issues are the primary concern, with some impact from inflation and consumer spending shifts [58] Question: Details on air freight costs and gross margin outlook - Management expects an additional 300 to 400 basis points impact on gross margin due to increased air freight spend [60] Question: Changes in pricing strategy amid macro pressures - Management stated that there is no immediate need to increase prices, focusing instead on maintaining advantageous gross margins [63] Question: Update on sourcing and inventory impacts from lockdowns - Management confirmed no shutdowns in manufacturing but acknowledged transit delays affecting inventory availability [66] Question: Changes in consumer spending patterns and revenue cadence - Management noted that while macroeconomic factors are affecting spending, the impact on their business model is less severe compared to others [70] Question: Status of delayed color launches and their impact on Q1 sales - Management confirmed that the delayed color launch occurred in Q2, but some launches have been moved to the back half of the year [82] Question: Customer demographics among new customers - Management reported no significant changes in demographics among new customers compared to previous cohorts [92] Question: Optimal weeks of supply planning for inventory - Management indicated that planning depends on product type, with increased weeks of supply for core styles to meet demand [93] Question: Marketing strategy amid inventory delays - Management is focused on strategic marketing to maintain customer engagement despite inventory challenges [94]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-39549 FIGS, Inc. (Exact name of Registrant as specified in its Charter) Delaware 46-2005653 (State or other jurisdiction of incorpora ...