FIGS, Inc. (NYSE:FIGS) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET

Company Participants

Jean Fontana - Investor Relations

Trina Spear - Co-Founder and Chief Executive Officer

Daniella Turenshine - Chief Financial Officer

Conference Call Participants

Brooke Roach - Goldman

Dana Telsey - Telsey Advisory Group

John Kernan - TD Cowen

Alice Xiao - Bank of America

Adrienne Yih - Barclays

Rick Patel - Raymond James

Matt Koranda - ROTH MKM

William Dossett - Oppenheimer

Operator

Good afternoon. Thank you for attending today’s FIGS Third Quarter Fiscal 2023 Earnings Conference Call. My name is Cole and I will be the moderator for today’s call. [Operator Instructions] I would now like to pass the conference over to our host, Jean Fontana. Please go ahead.

Jean Fontana

Thank you. Good afternoon and thank you for joining today’s call to discuss FIGS third quarter 2023 results, which we released this afternoon and can be found in our earnings press release and in the stockholder presentation posted to our Investor Relations website at ir.wearfigs.com.

Presenting on today’s call are Trina Spear, our Co-Founder and Chief Executive Officer and Daniella Turenshine, our Chief Financial Officer.

As a reminder, remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations or estimates, including about future financial performance, market opportunity, or business plans. Forward-looking statements involve risks and uncertainties, and actual results could differ materially. These and other risks are discussed in our SEC filings, including in the 10-Q we filed today, which we encourage you to review. Do not place undue reliance on forward-looking statements, which speak only as of today which we undertake no obligation to update. Finally, we will discuss certain non-GAAP metrics and key performance indicators, which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in the stockholder presentation issued today.

Now, I’d like to turn the call over to Trina Spear, Chief Executive Officer of FIGS.

Trina Spear

Thanks, Jean. Good afternoon, everyone. Thank you for joining us for our third quarter 2023 conference call. We were very pleased to have delivered better-than-expected net revenues and adjusted EBITDA margin for the third quarter. I would like to thank our entire FIGS team for their hard work as well as their devotion to our healthcare community.

Touching on some highlights from the quarter. Net revenues grew 11% compared to the prior year period, driven primarily by nearly 20% growth in active customers with another record number of new customers added in the third quarter. Beyond the market share gains we are driving in the United States, we are building demand internationally with record growth of 81%. We are replicating the powerful word of mouth dynamics that we fueled in the U.S. over the last decade. Within teams, our B2B business, we saw strong performance with a growing number of institutions coming to FIGS to professionalize their organization. We also continue to make meaningful progress in normalizing inventory levels, which declined 15% compared to the third quarter of last year.