FIGS, Inc. ( (FIGS) ) has released its Q3 earnings. Here is a breakdown of the information FIGS, Inc. presented to its investors.
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FIGS, Inc. is a direct-to-consumer healthcare apparel company that designs and sells comfortable and stylish clothing specifically for healthcare professionals, aiming to combine function with fashion. The company, known for its innovation and connection with the medical community, operates globally, serving markets in North America, Europe, the Asia Pacific, and the Middle East.
In its latest earnings report for the third quarter of 2024, FIGS, Inc. announced a slight dip in net revenues to $140.2 million, marking a 1.5% decrease from the previous year. Despite this decline, the company highlighted its strategic achievements, including the completion of a new fulfillment center and a minority investment in OOG, Inc., an AI-powered platform for healthcare professionals.
The financial results showed a decrease in gross margin to 67.1% and an increase in operating expenses by 17.4%, largely attributed to marketing efforts for their Olympic campaign and transitional costs related to their new fulfillment center. This resulted in a net loss of $1.7 million for the quarter. However, active customer numbers saw a year-over-year rise by 3.8% to 2.7 million, indicating strong customer engagement despite a decrease in average order value.
Strategically, FIGS, Inc. has taken a notable step by investing $25 million in OOG, Inc., aiming to leverage AI and technology to enhance its market presence and improve customer experiences. This investment aligns with FIGS’ long-term vision to innovate and disrupt the healthcare apparel industry.
Looking ahead, FIGS expects its full-year 2024 net revenue growth to range from flat to a slight decline of 1%, with an adjusted EBITDA margin around 8%. The company remains focused on optimizing its operations and continuing to invest in strategic areas that promise to enhance its competitive positioning and shareholder value.
