On November 2, 2023, FIGS Inc (FIGS, Financial), 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 (FIGS, Financial) 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 (FIGS, Financial) 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.
