FIGS(US:FIGS)2022-08-04 20:17Customer Growth - Active customers increased by 26.2% from approximately 1.6 million at June 30, 2021, to approximately 2.0 million at June 30, 2022[90]. - The number of active customers increased to 2,047 thousand as of June 30, 2022, up from 1,622 thousand in the same period last year[143]. Revenue Performance - Net revenues rose from $101.1 million to $122.2 million for the three months ended June 30, 2022, representing a year-over-year growth of 20.9%[91]. - Net revenues increased by $21.1 million, or 20.9%, for the three months ended June 30, 2022, compared to the same period last year, driven by strong customer retention and new customer acquisition[115]. - Net revenues increased by $44.2 million, or 23.5%, for the six months ended June 30, 2022, compared to the same period last year, driven by strong AOV growth and an increase in orders[130]. Profitability Metrics - Net operating income improved from a loss of $(32.1) million to a profit of $9.5 million for the three months ended June 30, 2022[91]. - Adjusted EBITDA decreased from $26.8 million to $21.5 million for the three months ended June 30, 2022, with an Adjusted EBITDA Margin of 17.6%[91]. - Adjusted EBITDA for the six months ended June 30, 2022, was $46.5 million, compared to $51.1 million for the same period in 2021[151]. - Adjusted EBITDA Margin decreased to 20.0% for the six months ended June 30, 2022, down from 27.2% in the same period last year[151]. Cost Analysis - Cost of goods sold increased by $8.9 million, or 33.1%, for the three months ended June 30, 2022, primarily due to an increase in the total number of orders[117]. - Cost of goods sold increased by $15.9 million, or 30.7%, for the six months ended June 30, 2022, primarily driven by an increase in the total number of orders[131]. Operating Expenses - Operating expenses decreased by $29.3 million, or 27.6%, for the three months ended June 30, 2022, primarily driven by a decrease in general and administrative expenses[120]. - Total operating expenses decreased by $10.9 million, or 7.2%, for the six months ended June 30, 2022, primarily driven by a decrease in general and administrative expenses[134]. - General and administrative expenses decreased by $42.2 million, or 59.1%, for the three months ended June 30, 2022, primarily due to a decrease in stock-based compensation expense[123]. - Selling expenses increased by $7.6 million, or 39.4%, for the three months ended June 30, 2022, primarily due to higher shipping expenses[121]. - Marketing expenses increased by $5.3 million, or 34.5%, for the three months ended June 30, 2022, due to increased investment in brand marketing[122]. Cash Flow - Cash flows from operations decreased from $32.7 million to $(26.5) million for the six months ended June 30, 2022[91]. - Free cash flow decreased from $31.7 million to $(28.3) million for the six months ended June 30, 2022[91]. - Free cash flow for the six months ended June 30, 2022, was $(28.3) million, compared to $31.7 million for the same period in 2021[153]. - Cash and cash equivalents as of June 30, 2022, were $170.2 million, down from $195.4 million as of December 31, 2021[154]. - Cash used in operating activities decreased by $59.3 million for the six months ended June 30, 2022, compared to the same period last year[162]. - Cash provided by financing activities was $1.6 million for the six months ended June 30, 2022, primarily from stock option exercises and employee stock purchases[166]. Operational Challenges - The company experienced higher inventory receipts due to volatility in ocean freight transit times, leading to increased storage costs[97]. - The ongoing COVID-19 pandemic and macroeconomic factors have negatively impacted supply chains and logistics, affecting operational costs[94][96]. - The company anticipates continued challenges with ocean freight transit times and elevated freight rates at least through the end of 2022[96]. Other Financial Information - Gross margin decreased by 2.7 percentage points from 73.3% to 70.6% for the three months ended June 30, 2022[91]. - Net revenues per active customer rose to $227 for the twelve months ended June 30, 2022, compared to $219 for the same period last year[145]. - Average order value (AOV) for the three months ended June 30, 2022, was $109, an increase from $103 in the same period last year[146]. - Provision for income taxes decreased by $3.5 million, or 26.9%, for the six months ended June 30, 2022, primarily due to a decrease in pre-tax income[140]. - No material changes to market risk disclosures since the 2021 Annual Report on Form 10-K[172]. - Recent accounting pronouncements adopted have been discussed in Note 2 of the condensed financial statements[171].