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. @wearfigs just filed to go public, and it's probably my favorite DTC IPO of all time.
$263M revenue
26% EBITDA margin (swoon)
1.3M customers in 2020
138% YoY growth
Let's break down their biz in a thread
$263M revenue 26% EBITDA margin (swoon)1.3M customers in 2020138% YoY growthLet's break down their biz in a thread
Figs took something lame and generic (scrubs) and made them functional, comfortable, and cool.
85% of medical professionals purchase their own scrubs & healthcare is the fastest growing job sector in the USA at 22% growth since 2011.
They picked a target market with tailwind.
85% of medical professionals purchase their own scrubs & healthcare is the fastest growing job sector in the USA at 22% growth since 2011.
They picked a target market with tailwind.
It's working - everything is up and to the right, measured by both customers and revenues:
Customers have grown 118% YoY
Revenue growing 138% YoY
Customers have grown 118% YoYRevenue growing 138% YoY
They are focused on RETENTION!
60% of Figs customers are repeats!
55% brand recognition
NPS of 81
$202 revenue per customer
Figs customers love the brand and come back.
When you have that kind of retention, growth compounds.
60% of Figs customers are repeats!55% brand recognitionNPS of 81$202 revenue per customerFigs customers love the brand and come back.
When you have that kind of retention, growth compounds.
Not only are they retaining customers, they're acquiring new ones more and more cheaply (this is HARD in ecommerce)!
For every $1 in ads, Figs makes $1.30 in contribution profit on the first purchase
Their CAC has declined 61% over the past 2 years
For every $1 in ads, Figs makes $1.30 in contribution profit on the first purchase Their CAC has declined 61% over the past 2 years
I'll just pause here for all the digital marketers in the room to catch their breath 
They also avoid the classic trap of apparel brands - SKU overload, which leads to inventory and working capital hell.
82% of revenue is from their 13 core scrub styles
13% from lifestyle apparel
Just 5% from limited edition launches
82% of revenue is from their 13 core scrub styles 13% from lifestyle apparel Just 5% from limited edition launches
And my god, the unicorn of all DTC IPOs - profits!!
$69M of EBITDA (26% margin)
Gross Margin of 72% (hard to do in apparel)
Figs is already throwing off cash at only $263M of revenue - their margins should only get better as they scale.
$69M of EBITDA (26% margin) Gross Margin of 72% (hard to do in apparel)Figs is already throwing off cash at only $263M of revenue - their margins should only get better as they scale.
In case all this wasn't impressive enough, here are all the growth opportunities they haven't even pushed yet:
Almost zero international revenue
Expanding into lifestyle apparel and outerwear
Less than 5% of sales from bricks & mortar retail
Almost zero international revenueExpanding into lifestyle apparel and outerwear Less than 5% of sales from bricks & mortar retail
Wrapping it up - this is one impressive DTC business, and I've seen a lot of them.
The cherry is their beautiful, real marketing. Just take a minute & scroll their Instagram: https://www.instagram.com/wearfigs/
This is a brand that knows their customer AND makes money. You love to see it.
The cherry is their beautiful, real marketing. Just take a minute & scroll their Instagram: https://www.instagram.com/wearfigs/
This is a brand that knows their customer AND makes money. You love to see it.
If you enjoyed this, I break down DTC brands regularly - follow me @billda.
Also - my company @ElementsBrands buys brands btw $5-$20M in revenue - reach out if that's interesting! DMs open.
And smash that like button on the original tweet! https://twitter.com/BillDA/status/1390093128921669641
Also - my company @ElementsBrands buys brands btw $5-$20M in revenue - reach out if that's interesting! DMs open.
And smash that like button on the original tweet! https://twitter.com/BillDA/status/1390093128921669641
