FIGS, Inc.

Good afternoon. Thank you for attending today's FIGS first quarter 2024 earnings conference call. My name is Jayla, and I'll be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I'd now like to turn the conference over to our host, Jean Fontana. Please go ahead.

Good afternoon, and thank you for joining today's call to discuss FIGS first quarter 2024 results. which we released this afternoon and can be found in our earnings press release and in the stockholder presentation posted on our investor relations website at ir.warefigs.com. Presenting on today's call are Trina Spear, our co-founder and chief executive officer, and Kevin Fossey, our interim chief financial officer. As a reminder, remarks on this call that do not concern past events or 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 10Q we filed today, which we encourage you to review. Do not place undue reliance on forward-looking statements, which speak only as of today, and 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 to these non-GAAP measures to their most comparable GAAP measures are included in the stockholder presentation we issued today. Now, I'd like to turn the call over to Trina Spear, Chief Executive Officer of FIGS.

Thank you, Jean. We are pleased with our first quarter results. Net revenues came in at the upper end of our expected range at down less than 1%, and the Justity Bazaar margin of 10.9% exceeded our expectations. We were especially excited to see improved momentum in our business beginning in mid-March and into the second quarter. Over the last two quarters, we discussed factors that we believed were impacting our performance, and we made changes in response to these challenges. We got back to our roots in delivering incredible product innovation, coupled with impactful storytelling centered around the healthcare community. And we're seeing these actions begin to pay off. As we have said in the past, healthcare professionals need their uniforms to perform at their jobs and need to regularly replenish these products. The highly attractive fundamentals of our business are in large part due to the repeat frequency dynamics of healthcare apparel. We are seeing these frequency trends begin to stabilize and we plan to build on this momentum. Reflecting on the business, we are delivering strong performance across our growth strategies. Starting with product, we raised the bar on innovation. Over the last two years, we've bolstered our product team, further building out our design and technical development talent. We've also bolstered our supply chain with best in class manufacturing partners. The results of these investments are beginning to bear fruit. In the first quarter, we saw strong engagement generated by new products, including our on-shift Sherpa bomber jacket, Seville scrub legging, and Isabelle wide leg scrub pants. Notably, these launches also created demand for our core assortment. This is just the beginning. We plan to offer a steady stream of true pinnacle products, including new fabrications and categories that will push the limits of anything healthcare professionals have ever seen before. We believe this innovation will bring unprecedented functionality, fit, comfort, design with greater velocity. The halo from these pinnacle products is also driving demand for our core styles. As part of our amplified innovation strategy, we have made the decision to accelerate the timeline of our initiative to improve fit consistency across our assortment. We began to introduce our new fit blocks in April and now expect to complete the rollout by October 2024. Our new product innovation will be fused with marketing campaigns rooted in true storytelling, centered on the awesome humans that make up our community. In April, as part of our extreme series, we launched our Call the Wild campaign featuring Dr. Chloe, a veterinarian who operates on the front line of wildlife conservation. The product capsule featured our indestructible scrub overall and scrub jumpsuit, each of which quickly sold out. The collection was made in a new fabrication that's tough on the outside and soft on the inside, providing extra durability, stretch, moisture wicking, and water resistance. The product launch was amplified by a meticulously executed campaign that celebrated this extraordinary work. The campaign, which we filmed in South Africa, captured the hearts and the minds of our community, drawing 9 million impressions among a wide range of health care professionals who were in awe of Dr. Chloe's mission. This past Sunday, the kickoff Nurses Week, we hosted a celebratory event in New York City with over 100 awesome humans. On Monday, we brought 13 nurses from across the country to ring the opening bell at the New York Stock Exchange in recognition of Nurses Week. We also kicked off our annual I'm a Nurse campaign, which celebrates our incredible nursing community. The momentum we have seen in our recent launches illustrates the opportunity we have to truly lead with brand storytelling. At FIGS, we obsess over customer journeys and look at the full marketing funnel to meet our community members where they are. We have an amazing community, and we provide the platform for them to share their stories. Awesome human storytelling is not new for us. It's in our DNA. And as we look ahead, we have a huge opportunity to deliver more tentpole brand-defining campaigns and to put more investment behind top-of-the-funnel initiatives. In parallel, we will continue to focus on the unique needs and interests of healthcare professionals and effectively move customers through a full journey, driving not only awareness but also consideration and conversion, ensuring that each marking touchpoint builds on the last. This approach will lead to greater brand engagement among new, lapsed and existing customers and fuel growth and profitability. Based on our recent strong momentum, we're further leaning in and taking bigger and bolder steps to grow our community globally across channels. This means we're strategically ramping investments primarily around brand marketing in response to the encouraging trends we're seeing in the U.S. market, strong momentum in our international business, and a growing network of institutions joining our team's platform. International net revenues grew 29% in the first quarter compared to last year, reflecting the reclassification of duty subsidies, which negatively impacted net revenue growth by 11 percentage points. We continue to gain traction across the countries we serve and plan to identify new markets where we believe FIGS can become the leader in healthcare apparel. Similar to the building blocks of our success in the U.S., Our global marketing strategy focuses on full funnel storytelling with investments in our ambassador program, digital marketing, and localized e-commerce experiences. Turning to teams, we made investments in building foundational ordering experiences for two of our largest teams customers with the development of the AYA gifting platform and the veg stipend experience. Looking ahead, we're eager to evolve and amplify these and other ordering platforms with the support of an outbound sales team. and digital marketing effort in order to serve more teams in more ways. Finally, with respect to retail, we're incredibly excited by the prospect of being able to serve more healthcare professionals and look forward to the opening of our Philadelphia location. We acknowledge that we're early in our retail journey and we're learning more each day. We remain committed to our test, learn, apply, and win approach with locations and formats and do not currently plan to meaningfully accelerate new hub openings until we can achieve key proof points. Operationally, we're on track with our fulfillment center transition designed to support greater scale, increase flexibility and reliability, and deliver greater efficiency. In addition, the foundational work behind this facility will help us to expand and scale our distribution network globally. This will not only support our growth, but enables us to deliver a superior customer experience across geographies. Importantly, we remain committed to delivering incredible brand cultural moments supporting the healthcare community by highlighting the work that they do and by giving back. In January, we opened the Figs Operating Theater in Ukwala, Kenya, a state-of-the-art facility that is the first of its kind in the region. It's now creating sustainable change for people in this community who previously had to drive hours to receive surgical care. As we look to the remainder of 2024, we believe we're on the right path to reignite the excitement and word of mouth dynamics that propelled us to a leadership position in the industry. We're seeing the trends move in a positive direction and we're strategically investing in that momentum while remaining disciplined in controlling our expenses. The long-term growth outlook of the healthcare industry and favorable replenishment dynamics, coupled with our strong debt-free balance sheet and robust cash flow generation, provide a solid foundation to execute and invest in our growth plan. As the distant leader in healthcare apparel, we recognize the urgent need to serve healthcare professionals and we are at the forefront of this effort. Now, I will pass it over to Kevin Fausti to discuss our financial results and provide an update on our outlook.