**Revolve Group Reports Strong Q3 Earnings, Beats Expectations by 118%**
Revolve Group (RVLV) announced a robust Q3 earnings report, exceeding forecasted profits by 118%, marking its eighth consecutive EPS beat. The company’s gross margin increased to 54.6%, up nearly 350 basis points year over year, facilitating an 11% rise in gross profit and a 45% boost in adjusted EBITDA, which reached a record $25.3 million for the quarter.
Key metrics include a customer base growth to 2.75 million, a 5% increase year over year, and free cash flow more than tripling to $63 million, raising the total cash balance to $315 million. Despite revenue coming in below expectations, management increased its full-year gross margin guidance to 53.5%, reflecting confidence amidst a challenging retail landscape.
Revolve, valued at $2 billion with a forward PE of 33, aims to reinvest its cash flow into international expansion and enhance technology-driven efficiencies, notably with significant growth in mainland China. Analyst estimates for the current quarter have shifted from $0.11 to $0.16, and full-year projections have jumped from $0.52 to $0.75, indicating strong future potential.
