FIGS, Inc. (NYSE:FIGS) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET

Company Participants

Jean Fontana - Head-Investor Relations

Trina Spear - Co-Founder and Chief Executive Officer

Daniella Turenshine - Chief Financial Officer

Conference Call Participants

Ed Yruma - Piper Sandler

Dana Telsey - Telsey Group

Brian Nagel - Oppenheimer

Brooke Roach - Goldman Sachs

John Kernan - TD Cowen

Rick Patel Patel - Raymond James

Alice Xiao - Bank of America

Matt Koranda - ROTH/MKM

Adrienne Yih - Barclays

Bob Drbul - FIGS

Operator

Good afternoon ladies and gentlemen. Thank you for joining the FIGS’ Second Quarter Fiscal 2023 Earnings Conference Call. My name is Kate, and I will be the moderator for today’s call. [Operator Instructions]

I would now like to pass the call over to our host, Jean Fontana.

Jean Fontana

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

Presenting on today’s call are Trina Spear, Chief Executive Officer and Co-Founder 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 cycle of slide deck issued today.

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

Trina Spear

Thanks Jean. Welcome to our second quarter 2023 earnings call. Our strong second quarter results demonstrate the resilience of our business, outstanding execution against our strategic priorities, and operational excellence. We delivered 13% net revenue growth as compared to the second quarter last year, primarily due to the 21% increase in our active customer base, as we continue to widen our market leadership position within the healthcare apparel industry. We generated strong profitability with Q2 adjustment of its own margin of 13.7%, ahead of our 9% to 10% margin expectation, and we delivered free cash flow of 29 million in the second quarter.