FIGS (FIGS) 10-Q 10 Nov 22 2022 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Oct. 31, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-40448
Entity Registrant Name	FIGS, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-2005653
Entity Address, Address Line One	2834 Colorado Avenue
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Santa Monica
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90404
City Area Code	424
Local Phone Number	300-8330
Title of 12(b) Security	Class A common stock, $0.0001 par value per share
Trading Symbol	FIGS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001846576
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		159,090,193
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		6,872,643

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 155,582	$ 195,374
Restricted cash	0	2,056
Accounts receivable	8,368	2,441
Inventory, net	168,088	86,068
Prepaid expenses and other current assets	13,870	7,400
Total current assets	345,908	293,339
Non-current assets
Property and equipment, net	10,823	7,613
Operating lease right-of-use assets	15,974
Deferred tax assets	11,215	10,239
Other assets	1,738	560
Total non-current assets	39,750	18,412
Total assets	385,658	311,751
Current liabilities
Accounts payable	21,162	14,604
Operating lease liabilities	3,379	0
Accrued expenses	32,365	24,677
Accrued compensation and benefits	5,216	6,464
Sales tax payable	3,703	3,728
Gift card liability	5,993	5,590
Deferred revenue	1,236	596
Returns reserve	3,424	2,761
Income tax payable	0	3,973
Total current liabilities	76,478	62,393
Non-current liabilities
Operating lease liabilities, non-current	16,520
Deferred rent and lease incentive		3,542
Other non-current liabilities	215	243
Total liabilities	93,213	66,178
Commitments and contingencies (Note 9)
Stockholders’ equity
Preferred stock — par value $0.0001 per share, 100,000,000 shares authorized as of September 30, 2022 and December 31, 2021; zero shares issued and outstanding as of September 30, 2022 and December 31, 2021	0	0
Additional paid-in capital	256,703	227,626
Retained earnings	35,726	17,931
Total stockholders’ equity	292,445	245,573
Total liabilities and stockholders’ equity	385,658	311,751
Class A Common Stock
Stockholders’ equity
Common stock	15	15
Class B Common Stock
Stockholders’ equity
Common stock	$ 1	$ 1

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Preferred stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares outstanding (in shares)	0	0
Preferred stock, shares issued (in shares)	0	0
Class A Common Stock
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares, issued (in shares)	159,025,697	152,098,257
Common stock, shares, outstanding (in shares)	159,025,697	152,098,257
Class B Common Stock
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares, issued (in shares)	6,872,643	12,158,187
Common stock, shares, outstanding (in shares)	6,872,643	12,158,187

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net Revenues	$ 128,589	$ 102,696	$ 360,937	$ 290,892
Cost of goods sold	37,756	27,991	105,325	79,674
Gross profit	90,833	74,705	255,612	211,218
Operating expenses
Selling	31,940	19,945	80,801	56,282
Marketing	20,031	15,779	56,263	42,107
General and administrative	27,652	28,430	84,142	118,280
Total operating expenses	79,623	64,154	221,206	216,669
Net income (loss) from operations	11,210	10,551	34,406	(5,451)
Other income (loss), net
Interest income (expense)	604	(110)	683	(176)
Other income (expense)	1	(823)	0	(825)
Total other income (loss), net	605	(933)	683	(1,001)
Net income (loss) before provision for income taxes	11,815	9,618	35,089	(6,452)
Provision for income taxes	7,771	2,664	17,294	15,700
Net income (loss) and comprehensive income (loss)	$ 4,044	$ 6,954	$ 17,795	$ (22,152)
Earnings (loss) per share:
Basic earnings per share (in USD per share)	$ 0.02	$ 0.04	$ 0.11	$ (0.14)
Diluted earnings per share (in USD per share)	$ 0.02	$ 0.03	$ 0.09	$ (0.14)
Weighted Average Number of Shares Outstanding
Weighted-average shares outstanding—basic (in shares)	165,543,067	161,348,021	164,960,561	157,620,573
Weighted-average shares outstanding - diluted (in shares)	186,991,769	199,385,061	189,762,364	157,620,573

CONDENSED STATEMENTS OF STOCKHO

CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Issuance of Class A Common Stock upon exchange of Common Stock	Issuance of Class B Common Stock upon exchange of Common Stock	Common Stock	Common Stock Issuance of Class A Common Stock upon exchange of Common Stock	Common Stock Issuance of Class B Common Stock upon exchange of Common Stock	Common Stock Class A Common Stock	Common Stock Class A Common Stock Issuance of Class A Common Stock upon exchange of Common Stock	Common Stock Class A Common Stock Issuance of Class B Common Stock upon exchange of Class A Common Stock	Common Stock Class A Common Stock Issuance of Class A Common Stock upon exchange of Class B Common Stock	Common Stock Class B Common Stock	Common Stock Class B Common Stock Issuance of Class A Common Stock upon exchange of Common Stock	Common Stock Class B Common Stock Issuance of Class B Common Stock upon exchange of Common Stock	Common Stock Class B Common Stock Issuance of Class B Common Stock upon exchange of Class A Common Stock	Common Stock Class B Common Stock Issuance of Class A Common Stock upon exchange of Class B Common Stock	Additional Paid-in Capital	(Accumulated Deficit) Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2020				154,444,851			0				0
Beginning Balance at Dec. 31, 2020	$ 97,677			$ 15			$ 0				$ 0					$ 70,175	$ 27,487
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	5,015															5,015
Stock option exercises (in shares)				204,309
Stock option exercises	123															123
Net income	11,440																11,440
Ending balance (in shares) at Mar. 31, 2021				154,649,160			0				0
Ending Balance at Mar. 31, 2021	114,255			$ 15			$ 0				$ 0					75,313	38,927
Beginning Balance (in shares) at Dec. 31, 2020				154,444,851			0				0
Beginning Balance at Dec. 31, 2020	97,677			$ 15			$ 0				$ 0					70,175	27,487
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(22,152)
Ending balance (in shares) at Sep. 30, 2021				0			151,651,787				11,795,735
Ending Balance at Sep. 30, 2021	219,299			$ 0			$ 15				$ 1					213,948	5,335
Beginning Balance (in shares) at Mar. 31, 2021				154,649,160			0				0
Beginning Balance at Mar. 31, 2021	114,255			$ 15			$ 0				$ 0					75,313	38,927
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock upon exchange of stock (in shares)					(142,851,852)	(12,148,029)		142,851,852	(1,116,030)				12,148,029	1,116,030
Issuance of stock upon exchange of stock		$ 0	$ 0		$ (14)	$ (1)		$ 14					$ 1
Issuance of Class A Common Stock upon initial public offering, net of offering costs and related tax impacts (in shares)							4,636,364
Issuance of Class A Common Stock upon initial public offering, net of offering costs and related tax impacts	95,101						$ 1									95,100
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares)							1,166,538
Restricted Stock surrendered for employees’ tax liability	(21,556)															(21,556)
Stock-based compensation	56,012															56,012
Stock option exercises (in shares)				350,721			94,810
Stock option exercises	449															449
Net income	(40,546)																(40,546)
Ending balance (in shares) at Jun. 30, 2021				0			147,633,534				13,264,059
Ending Balance at Jun. 30, 2021	203,715			$ 0			$ 15				$ 1					205,318	(1,619)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock upon exchange of stock (in shares)								1,468,324				(1,468,324)
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares)							1,427
Capital contribution	1,301															1,301
Stock-based compensation	7,253															7,253
Stock option exercises (in shares)				0			2,548,502
Stock option exercises	76															76
Net income	6,954																6,954
Ending balance (in shares) at Sep. 30, 2021				0			151,651,787				11,795,735
Ending Balance at Sep. 30, 2021	219,299			$ 0			$ 15				$ 1					213,948	5,335
Beginning Balance (in shares) at Dec. 31, 2021				0			152,098,257				12,158,187
Beginning Balance at Dec. 31, 2021	245,573			$ 0			$ 15				$ 1					227,626	17,931
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock upon exchange of stock (in shares)									(338,152)	6,300,000				338,152	(6,300,000)
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares)							381,973
Stock-based compensation	8,477															8,477
Stock option exercises (in shares)							88,610
Stock option exercises	352															352
Net income	8,899																8,899
Ending balance (in shares) at Mar. 31, 2022				0			158,530,688				6,196,339
Ending Balance at Mar. 31, 2022	263,301			$ 0			$ 15				$ 1					236,455	26,830
Beginning Balance (in shares) at Dec. 31, 2021				0			152,098,257				12,158,187
Beginning Balance at Dec. 31, 2021	245,573			$ 0			$ 15				$ 1					227,626	17,931
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	17,795
Ending balance (in shares) at Sep. 30, 2022				0			159,025,697				6,872,643
Ending Balance at Sep. 30, 2022	292,445			$ 0			$ 15				$ 1					256,703	35,726
Beginning Balance (in shares) at Mar. 31, 2022				0			158,530,688				6,196,339
Beginning Balance at Mar. 31, 2022	263,301			$ 0			$ 15				$ 1					236,455	26,830
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock upon exchange of stock (in shares)									(338,152)					338,152
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares)							432,901
Capital contribution	479															479
Stock-based compensation	8,777															8,777
Stock option exercises and employee stock purchases (in shares)							102,730
Stock option exercises and employee stock purchases	721															721
Net income	4,852																4,852
Ending balance (in shares) at Jun. 30, 2022				0			158,728,167				6,534,491
Ending Balance at Jun. 30, 2022	278,130			$ 0			$ 15				$ 1					246,432	31,682
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock upon exchange of stock (in shares)									(338,152)					338,152
Issuance of Class A Common Stock upon vesting of Restricted Stock, net of tax withholdings (in shares)							443,843
Stock-based compensation	9,034															9,034
Stock option exercises (in shares)							191,839
Stock option exercises	1,237															1,237
Net income	4,044																4,044
Ending balance (in shares) at Sep. 30, 2022				0			159,025,697				6,872,643
Ending Balance at Sep. 30, 2022	$ 292,445			$ 0			$ 15				$ 1					$ 256,703	$ 35,726

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ 17,795	$ (22,152)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and Amortization Expense	1,287	1,021
Deferred income taxes	(976)	(1,450)
Non-cash operating lease cost	1,719
Stock-based compensation	26,288	68,280
Changes in operating assets and liabilities:
Accounts receivable	(5,927)	1,015
Due from related party	0	(501)
Inventory	(82,020)	(19,621)
Prepaid expenses and other current assets	(6,470)	(3,380)
Other assets	(678)	91
Accounts payable	6,421	2,196
Accrued expenses	7,584	15,070
Deferred revenue	640	2,699
Accrued compensation and benefits	(1,248)	1,902
Returns reserve	663	1,523
Sales tax payable	(25)	2,359
Income tax payable	(3,973)	2,961
Gift card liability	403	568
Deferred rent and lease incentive		(77)
Operating lease liabilities	(1,336)
Other non-current liabilities	(28)	0
Net cash (used in) provided by operating activities	(39,881)	52,504
Cash flows from investing activities:
Purchases of property and equipment	(4,256)	(2,008)
Purchases of held-to-maturity securities	(500)	0
Net cash used in investing activities	(4,756)	(2,008)
Cash flows from financing activities:
Proceeds from issuance of Class A common stock in initial public offering, net of underwriting discounts	0	95,881
Payments of initial public offering issuance costs, net of reimbursements	0	(780)
Proceeds from stock option exercises and employee stock purchases	2,310	648
Tax payments related to net share settlements on restricted stock units	0	(21,556)
Payments of debt issuance costs	0	(169)
Capital contributions	479	1,301
Net cash provided by financing activities	2,789	75,325
Net (decrease) increase in cash, cash equivalents, and restricted cash	(41,848)	125,821
Cash, cash equivalents, and restricted cash, beginning of period	197,430	58,133
Cash, cash equivalents, and restricted cash, end of period	155,582	183,954
Supplemental disclosures:
Property and equipment included in accounts payable and accrued expenses	273	83
Deferred offering costs included in accounts payable and accrued expenses	$ 0	$ 780

Description of Business

Description of Business	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS FIGS, Inc. (the “Company”), a Delaware corporation, was founded in 2013 and is a founder-led, direct-to-consumer healthcare apparel and lifestyle brand company. The Company designs and sells scrubwear, and other non-scrub offerings, such as lab coats, underscrubs, outerwear, activewear, loungewear, compression socks and footwear. The Company markets and sells its products primarily in the United States. Sales are primarily generated through the Company’s digital platforms. Impact of COVID-19 The ongoing COVID-19 pandemic has caused significant disruption in the international and United States economies and financial markets. The spread of COVID-19 has caused illness, quarantines, cancellation of events and travel, business and school shutdowns, reduction in business activity and financial transactions, labor shortages, global supply chain interruptions and overall economic and financial market instability. In response to public health directives and orders, and to help minimize the risk of the virus to employees, the Company has taken precautionary measures, including implementing work from home policies for certain employees. The COVID-19 pandemic has negatively impacted global supply chains and caused challenges to logistics, including causing ocean freight reliability and capacity issues, increased volatility in ocean freight transit times, port congestion, elevated ocean and air freight rates, and labor shortages, and has impacted the Company’s manufacturing supply chain, distribution, logistics and other services. The COVID-19 pandemic has also led to adverse macroeconomic conditions, including a reduction in consumer spending, which has and could continue to negatively impact the Company’s business and results of operations. The COVID-19 pandemic may continue to adversely affect workforces, supply chains, economies and financial markets globally, and may result in an inability for the Company’s suppliers, vendors or other parties with whom it does business to meet their contractual obligations, which could negatively impact the Company’s business and results of operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. The Company’s fiscal year ends on December 31. Certain information and footnote disclosures normally included in the Company’s annual audited financial statements and accompanying notes have been condensed or omitted in these accompanying interim condensed financial statements and footnotes. Certain reclassifications have been made to prior-year amounts to conform to the current period presentation. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2022. In the opinion of management, the unaudited condensed financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022. Stock Split On May 19, 2021, the Company effected a nine-for-one forward stock split of its issued and outstanding common stock, stock options and restricted stock units. Accordingly, all share and per share information has been retroactively adjusted to reflect the stock split for all periods presented. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods presented. Significant estimates include, but are not limited to, the valuation of the net realizable value of inventory, reserves for sales returns, allowances for doubtful accounts, stock-based compensation, contingent sales tax liability, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates. Restricted Cash Restricted cash consists of cash collateral amounts pledged to secure the Company’s reimbursement obligations under its outstanding letters of credit. The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported on the accompanying condensed balance sheets that sum to the total of the same such amounts shown in the condensed statements of cash flows (in thousands): September 30, December 31, Cash and cash equivalents $ 155,582 $ 195,374 Restricted cash — 2,056 Total cash, cash equivalents, and restricted cash $ 155,582 $ 197,430 Inventory, Net Inventory consists of finished goods and is accounted for using an average cost method. Inventory is valued at the lower of cost or net realizable value. The Company records a provision for excess and obsolete inventory to adjust the carrying value of inventory based on assumptions regarding future demand for the Company’s products. Lower of cost or net realizable value is evaluated by considering obsolescence, excessive levels of inventory, deterioration, and other factors. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess, obsolescence, or impaired inventory. Excess and obsolete inventory is charged to cost of goods sold. The Company’s allowance to write down inventory to the lower of cost or net realizable value was $0.3 million and $0.4 million as of September 30, 2022 and December 31, 2021, respectively. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). Revenue is recognized in an amount that reflects the consideration expected to be received in exchange for products. To determine revenue recognition for contracts with customers within the scope of ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) the Company satisfies the performance obligations. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the good or services it transfers to the customer. The Company recognizes revenue at a point in time when it satisfies a performance obligation and transfers control of the products to the respective customers, which occurs when the goods are transferred to a common carrier. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are treated as a fulfillment activity, and as a result, any fees received from customers are included in the transaction price for the performance obligation of providing goods to the customer. The Company generally provides refunds for goods returned within 30 days from the original purchase date. A returns reserve is recorded by the Company based on the historical refund pattern. The returns reserve on the condensed balance sheets was $3.4 million and $2.8 million as of September 30, 2022 and December 31, 2021, respectively. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company records deferred revenue when it receives payments in advance of the transfer of the goods to a common carrier. The amounts recorded are expected to be recognized as revenue within the 12 months following the balance sheet date and, therefore, are classified as current liabilities on the Company’s condensed balance sheets. The Company does not have significant contract balances other than deferred revenue, the allowance for sales returns and liabilities related to its gift cards. The Company recognized revenues of $2.1 million during the nine months ended September 30, 2022 related to redemptions from the gift card liability balance that existed at December 31, 2021. The Company does not have significant contract acquisition costs. The following table presents the disaggregation of the Company’s net revenues for the three and nine months ended September 30, 2022 and 2021 as follows (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 By geography: United States $ 118,316 $ 95,804 $ 332,564 $ 270,532 Rest of the world 10,273 6,892 28,373 20,360 $ 128,589 $ 102,696 $ 360,937 $ 290,892 By product: Scrubwear $ 106,876 $ 89,529 $ 301,230 $ 256,059 Non-Scrubwear/Lifestyle 21,713 13,167 59,707 34,833 $ 128,589 $ 102,696 $ 360,937 $ 290,892 Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), as subsequently amended, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors), and replaces the existing guidance in ASC 840, Leases. The new standard requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. ASU 2018-11 provides entities another option for transition, allowing entities to not apply the new standard in the comparative periods they present in their financial statements in the year of adoption. Effective January 1, 2022, the Company adopted ASU 2016-02 using the optional transition method provided by ASU 2018-11. The Company elected certain practical expedients permitted under the transition guidance, including the election to carryforward historical lease classification and the short-term lease practical expedient. In addition, the Company elected the lease and non-lease components practical expedient, which allowed it to calculate the present value of fixed payments without performing an allocation of lease and non-lease components. Adoption of the new standard resulted in the recognition of operating lease right-of-use assets and operating lease liabilities of approximately $12.9 million and $16.5 million, respectively, on the Company’s balance sheet as of January 1, 2022. The standard did not have a material impact to the Company’s condensed statements of operations and comprehensive income or the Company’s condensed statements of cash flows. Refer to Note 10 for the Company’s expanded disclosures on leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”). ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets. In April 2019, the FASB issued clarification to ASU 2016-13 within ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. These updates are effective for entities other than public business entities, including emerging growth companies that elected to defer compliance with new or revised financial accounting standards until a company that is not an issuer is required to comply with such standards, for annual reporting periods beginning after December 15, 2021. The Company adopted these updates on January 1, 2022 and noted no material effect to its financial statements and related disclosures.

Fair Value of Financial Assets

Fair Value of Financial Assets and Liabilities	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES As of September 30, 2022, and December 31, 2021, the Company’s cash equivalents consisted of money market funds, classified as Level 1 financial assets, as these assets are valued using quoted market prices in active markets without any valuation adjustment. The following table summarizes the Company’s financial assets measured at fair value on a recurring basis (in thousands): Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 121,977 $ — $ — $ 121,977 $ 121,977 $ — $ — $ 121,977 Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 141,104 $ — $ — $ 141,104 $ 141,104 $ — $ — $ 141,104 There were no transfers of assets between fair value levels during the periods presented. The carrying values of other current assets, accounts payable and accrued expenses approximate their fair values due to the short-term nature of these assets and liabilities. The Company purchased securities classified as held-to-maturity during the second quarter of 2022. As of September 30, 2022, the carrying value and fair value of held-to-maturity investments was $0.5 million, which are included in “Other assets” on the unaudited condensed balance sheet. These securities are held in a privately held company and are recorded at fair value on a non-recurring basis. The estimation of fair value requires the use of significant unobservable inputs, and as a result, these assets are classified as Level 3 financial instruments within the fair value measurement framework.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable consisted of the following (in thousands): September 30, December 31, Trade $ 2,730 $ 1,653 Other 5,638 788 $ 8,368 $ 2,441

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2022
Prepaid Expense and Other Assets, Current [Abstract]
PREPAID EXPENSES AND OTHER CURRENT ASSETS	PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Inventory deposits $ 1,883 $ 798 Prepaid expenses 11,011 5,440 Other 976 1,162 $ 13,870 $ 7,400

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following (in thousands): September 30, December 31, Furniture and fixtures $ 1,031 $ 855 Office equipment 927 809 Machinery and equipment 1,569 1,348 Computer equipment 1,435 953 Software and website design 3,559 2,997 Leasehold improvements 3,083 3,083 Capital projects in progress 3,369 431 Total property and equipment 14,973 10,476 Less: accumulated depreciation and amortization (4,150) (2,863) Property and equipment, net $ 10,823 $ 7,613 Depreciation and amortization expense of property and equipment for the three and nine months ended September 30, 2022 was $0.5 million and $1.3 million, respectively. Depreciation and amortization expense of property and equipment for the three and nine months ended September 30, 2021 was $0.4 million and $1.0 million, respectively.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
ACCRUED EXPENSES	ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands): September 30, December 31, Accrued inventory $ 11,479 $ 16,243 Accrued shipping 2,417 1,077 Accrued selling expenses 10,034 4,832 Accrued legal expenses 3,142 588 Accrued marketing expenses 2,536 923 Other accrued expenses 2,757 1,014 $ 32,365 $ 24,677

Financing Arrangements

Financing Arrangements	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	FINANCING ARRANGEMENTSOn December 2, 2020, the Company, as borrower, entered into a credit agreement with JPMorgan Chase Bank, N.A. for an initial $50.0 million revolving credit facility, including capacity to issue letters of credit (the “2020 Facility”). The 2020 Facility had a maturity date of December 2, 2025 (“2020 Facility Maturity Date”). Subject to certain conditions, the 2020 Facility also provided for an additional $25.0 million of capacity. Borrowings under the 2020 Facility were payable on the 2020 Facility Maturity Date and bore interest at LIBOR (with a 0.5% floor) plus 1.75%. The interest rate for undrawn amounts was 0.25%. On September 7, 2021, the Company terminated the 2020 Facility. Upon the termination of the 2020 Facility, letters of credit with an aggregate face amount of approximately $3.2 million were outstanding but the reimbursement obligations of the Company were secured by cash collateral pledged by the Company to JPMorgan Chase Bank, N.A. in the amount of approximately $3.3 million or 105% of the amounts outstanding. On October 28, 2021, the Company cancelled letters of credit with an aggregate face amount of $1.3 million. As of December 31, 2021, letters of credit with an aggregate face amount of $1.9 million remained outstanding. As of December 31, 2021, the reimbursement obligations of the Company were secured by cash collateral pledged by the Company to JPMorgan Chase Bank, N.A. in the amount of approximately $2.1 million or 105% of the amounts outstanding. On March 10, 2022, the Company cancelled all outstanding letters of credit under the 2020 Facility. On September 7, 2021, the Company, as borrower, entered into a credit agreement with Bank of America, N.A. for a $100.0 million revolving credit facility, including capacity to issue letters of credit (the “2021 Facility”). The 2021 Facility is secured by substantially all assets of the Company and its material subsidiaries, subject to customary exceptions. The 2021 Facility has a maturity date of September 7, 2026 (“2021 Facility Maturity Date”). As of September 30, 2022, the Company had letters of credit aggregating to $4.4 million outstanding under the 2021 Facility and available borrowings of $95.6 million. As of September 30, 2022, the Company had no outstanding borrowings under the 2021 Facility. Borrowings under the 2021 Facility are payable on the 2021 Facility Maturity Date. Borrowings bear interest at either (a) the Eurodollar Rate (as defined in the 2021 Facility) plus 1.125% or (b) the Base Rate (as defined in the 2021 Facility) plus 0.125%. The interest rate for undrawn amounts is 0.175%. Costs associated with entering into the 2021 Facility were not material.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Taxes on Remote Sellers The Company is subject to state laws or administrative practices with respect to the taxes on remote sellers. In accordance with ASC 450, Contingencies, the Company recorded $1.6 million within sales tax payable on the Company’s condensed balance sheets as of September 30, 2022, and December 31, 2021, as an estimate of contingent sales tax payable. Inventory Purchase Obligations Inventory purchase obligations as of September 30, 2022 were $61.3 million. These inventory purchase obligations can be impacted by various factors, including the timing of issuing orders and the timing of the shipment of orders. Legal Contingencies Legal claims may arise from time to time in the normal course of business, the results of which may have a material effect on the Company’s accompanying unaudited condensed financial statements. The Company currently has legal actions against it with respect to its litigation with Strategic Partners, Inc., Miracle Ventures I, LP, and a putative securities class action against the Company and certain of its executive officers and directors. The Company believes these claims are without basis or merit, and intends to vigorously defend against such claims. Accordingly, an accrual for any potential liability has not been recorded.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
LEASES	LEASES The Company leases office space under operating leases for its corporate headquarters. The Company determines whether an arrangement is a lease at inception of the agreement and reassesses that conclusion if the agreement is modified. Right-of-use assets and lease liabilities are established on the balance sheets for leases with an expected term greater than one year. Leases with an initial term of 12 months or less are not recorded on the balance sheets. The Company does not allocate consideration between lease and non-lease components. The Company has an operating lease agreement for office space with an initial term expiring in 2030 (the “Lease”). The Lease terms provide for an option to extend or terminate the Lease, with extension terms that extend the lease term by five years. The Lease includes escalating rent payment provisions. On March 17, 2022, the Company entered into a sublease agreement (“the Sublease”) for additional office space with an initial term expiring in 2026. The Sublease includes an option to extend the agreement, at the Company’s discretion, if the Sublandlord declines to terminate its master lease. The Sublease includes a rent abatement period of three months and escalating rent payment provisions. The operating lease agreements included in the measurement of lease liabilities do not reflect options to extend or terminate, as the Company does not consider the exercise of these options to be reasonably certain. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognizes operating lease expense on a straight-line basis over the lease term. Operating lease expense for the three and nine months ended September 30, 2022 was $0.8 million and $2.0 million, respectively. Short-term lease expense for the three and nine months ended September 30, 2022 was $0.9 million and $2.0 million, respectively. As the rates implicit in the Company’s outstanding leases are not determinable, the Company uses its incremental borrowing rate based on information available on the lease commencement date to determine the present value of lease payments. The weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases at September 30, 2022 were as follows: Weighted-average remaining lease term 6.4 years Weighted-average discount rate 2.4 % Future undiscounted lease payments, and a reconciliation of these payments to the Company’s operating lease liabilities at September 30, 2022, were as follows (in thousands): Remainder of 2022 $ 848 2023 3,458 2024 3,578 2025 3,703 2026 2,346 Thereafter 7,418 Total lease payments $ 21,351 Less: Imputed interest 1,452 Total lease liabilities $ 19,899 Other Information Cash payments included in the measurement of the operating lease liabilities were $1.7 million for the nine months ended September 30, 2022. Right of use assets obtained in exchange for operating lease liabilities were $4.7 million for the nine months ended September 30, 2022.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
STOCK BASED COMPENSATION	STOCK-BASED COMPENSATIONOn August 9, 2022, in connection with Heather Hasson’s appointment as the Company’s Executive Chair, the Company’s Board of Directors granted equity awards to Ms. Hasson with an aggregate grant date fair value equal to $24.9 million. The equity awards were granted under the Company’s 2021 Equity Incentive Award Plan and consisted of restricted stock units with a total grant date fair value of $11.3 million (the “RSU Award”) and nonqualified stock options with a total grant date fair value of $13.6 million (the “Option Award”). The RSU Award will vest in 10 substantially equal quarterly installments with the final installment vesting on December 31, 2024. The Option Award will vest and become exercisable in 29 substantially equal installments with the final installment vesting on December 31, 2024. The vesting of the RSU Award and the Option Award are, in each case, subject to Ms. Hasson’s continued service through each applicable vesting date. The Company measures and recognizes the grant date fair value of the RSU Award and Option Award based on its existing stock-based compensation policy.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items arising during interim periods. For the three months ended September 30, 2022 and 2021, the Company’s effective tax rate was 65.8% and 27.7%, respectively. The Company’s effective tax rate differed from the U.S. statutory tax rate primarily due to state taxes and officer excess compensation limitations. For the three months ended September 30, 2022 and 2021, the Company recorded income tax expense of $7.8 million and $2.7 million, respectively. For the nine months ended September 30, 2022 and 2021, the Company’s effective tax rate was 49.3% and (243.3)%, respectively. The Company’s effective tax rate differed from the U.S. statutory tax rate primarily due to state taxes and officer excess compensation limitations. For the nine months ended September 30, 2022 and 2021, the Company recorded income tax expense of $17.3 million and $15.7 million, respectively. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (“IRA”), which, among other things, implements a 15% alternative minimum tax on corporations with book income in excess of $1 billion, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. The effective date of these provisions is January 1, 2023. The Company will continue to monitor for updates to the Company’s business along with guidance issued with respect to the IRA to determine whether any adjustments are needed to the Company’s tax provision in future periods.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share (“basic EPS”) and diluted earnings (loss) per share (“diluted EPS”) attributable to common stockholders is calculated in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to twenty votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock. Basic EPS attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. For the calculation of diluted EPS, net income (loss) attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities. Diluted EPS attributable to common stockholders is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. As the economic rights of Class A and Class B common stock are identical, undistributed earnings are allocated on a proportionate basis and presented on a combined basis. The following table sets forth the computation of basic and diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the three and nine months ended September 30, 2022 and 2021 (in thousands, except share and per share amounts): Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 4,044 $ 6,954 $ 17,795 $ (22,152) Denominator: Weighted-average shares—basic 165,543,067 161,348,021 164,960,561 157,620,573 Effect of dilutive stock options 19,676,684 34,843,956 22,723,439 — Effect of dilutive restricted stock 1,772,017 3,193,084 2,078,364 — Weighted-average shares—diluted 186,991,769 199,385,061 189,762,364 157,620,573 Earnings (loss) per share: Basic earnings (loss) per share $ 0.02 $ 0.04 $ 0.11 $ (0.14) Effect of dilutive stock options and restricted stock — (0.01) (0.02) — Diluted earnings (loss) per share $ 0.02 $ 0.03 $ 0.09 $ (0.14) The Company excluded the following weighted average common equivalent shares from the computation of diluted earnings per share for the three and nine months ended September 30, 2022 and the three and nine months ended September 30, 2021 because including them would have had an anti-dilutive effect: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Stock options to purchase common stock 6,616,871 38,121 4,391,646 40,577,427 Restricted stock units 1,641,630 — 1,130,795 4,601,922

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONSTulco, LLC, a former stockholder, reimbursed the Company for certain of the Company’s professional fees in connection with the Company’s initial public offering. These reimbursements totaled $4.9 million and the Company received payment of the reimbursements during the third quarter of 2021.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. The Company’s fiscal year ends on December 31. Certain information and footnote disclosures normally included in the Company’s annual audited financial statements and accompanying notes have been condensed or omitted in these accompanying interim condensed financial statements and footnotes. Certain reclassifications have been made to prior-year amounts to conform to the current period presentation. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and related notes for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2022. In the opinion of management, the unaudited condensed financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of the Company’s financial position, results of operations, and cash flows. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods presented. Significant estimates include, but are not limited to, the valuation of the net realizable value of inventory, reserves for sales returns, allowances for doubtful accounts, stock-based compensation, contingent sales tax liability, and the useful lives and recoverability of long-lived assets. Actual results could differ from those estimates.
Restricted Cash	Restricted Cash Restricted cash consists of cash collateral amounts pledged to secure the Company’s reimbursement obligations under its outstanding letters of credit.
Inventory, Net	Inventory, Net Inventory consists of finished goods and is accounted for using an average cost method. Inventory is valued at the lower of cost or net realizable value. The Company records a provision for excess and obsolete inventory to adjust the carrying value of inventory based on assumptions regarding future demand for the Company’s products. Lower of cost or net realizable value is evaluated by considering obsolescence, excessive levels of inventory, deterioration, and other factors. Adjustments to reduce the cost of inventory to its net realizable value, if required, are made for estimated excess, obsolescence, or impaired inventory. Excess and obsolete inventory is charged to cost of goods sold.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). Revenue is recognized in an amount that reflects the consideration expected to be received in exchange for products. To determine revenue recognition for contracts with customers within the scope of ASC 606, the Company recognizes revenue from the commercial sales of products and contracts by applying the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) the Company satisfies the performance obligations. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the good or services it transfers to the customer. The Company recognizes revenue at a point in time when it satisfies a performance obligation and transfers control of the products to the respective customers, which occurs when the goods are transferred to a common carrier. Shipping and handling costs associated with outbound freight incurred to transfer a product to a customer are treated as a fulfillment activity, and as a result, any fees received from customers are included in the transaction price for the performance obligation of providing goods to the customer. The Company generally provides refunds for goods returned within 30 days from the original purchase date. A returns reserve is recorded by the Company based on the historical refund pattern. The returns reserve on the condensed balance sheets was $3.4 million and $2.8 million as of September 30, 2022 and December 31, 2021, respectively. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. The Company records deferred revenue when it receives payments in advance of the transfer of the goods to a common carrier. The amounts recorded are expected to be recognized as revenue within the 12 months following the balance sheet date and, therefore, are classified as current liabilities on the Company’s condensed balance sheets. The Company does not have significant contract balances other than deferred revenue, the allowance for sales returns and liabilities related to its gift cards. The Company recognized revenues of $2.1 million during the nine months ended September 30, 2022 related to redemptions from the gift card liability balance that existed at December 31, 2021. The Company does not have significant contract acquisition costs.
Recently Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), as subsequently amended, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors), and replaces the existing guidance in ASC 840, Leases. The new standard requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. ASU 2018-11 provides entities another option for transition, allowing entities to not apply the new standard in the comparative periods they present in their financial statements in the year of adoption. Effective January 1, 2022, the Company adopted ASU 2016-02 using the optional transition method provided by ASU 2018-11. The Company elected certain practical expedients permitted under the transition guidance, including the election to carryforward historical lease classification and the short-term lease practical expedient. In addition, the Company elected the lease and non-lease components practical expedient, which allowed it to calculate the present value of fixed payments without performing an allocation of lease and non-lease components. Adoption of the new standard resulted in the recognition of operating lease right-of-use assets and operating lease liabilities of approximately $12.9 million and $16.5 million, respectively, on the Company’s balance sheet as of January 1, 2022. The standard did not have a material impact to the Company’s condensed statements of operations and comprehensive income or the Company’s condensed statements of cash flows. Refer to Note 10 for the Company’s expanded disclosures on leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”). ASU 2016-13 requires measurement and recognition of expected credit losses for financial assets. In April 2019, the FASB issued clarification to ASU 2016-13 within ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. These updates are effective for entities other than public business entities, including emerging growth companies that elected to defer compliance with new or revised financial accounting standards until a company that is not an issuer is required to comply with such standards, for annual reporting periods beginning after December 15, 2021. The Company adopted these updates on January 1, 2022 and noted no material effect to its financial statements and related disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of Restricted Cash and Cash Equivalents	The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported on the accompanying condensed balance sheets that sum to the total of the same such amounts shown in the condensed statements of cash flows (in thousands): September 30, December 31, Cash and cash equivalents $ 155,582 $ 195,374 Restricted cash — 2,056 Total cash, cash equivalents, and restricted cash $ 155,582 $ 197,430
Schedule of Cash and Cash Equivalents	The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported on the accompanying condensed balance sheets that sum to the total of the same such amounts shown in the condensed statements of cash flows (in thousands): September 30, December 31, Cash and cash equivalents $ 155,582 $ 195,374 Restricted cash — 2,056 Total cash, cash equivalents, and restricted cash $ 155,582 $ 197,430
Schedule of Disaggregation of Revenue	The following table presents the disaggregation of the Company’s net revenues for the three and nine months ended September 30, 2022 and 2021 as follows (in thousands): Three months ended Nine months ended 2022 2021 2022 2021 By geography: United States $ 118,316 $ 95,804 $ 332,564 $ 270,532 Rest of the world 10,273 6,892 28,373 20,360 $ 128,589 $ 102,696 $ 360,937 $ 290,892 By product: Scrubwear $ 106,876 $ 89,529 $ 301,230 $ 256,059 Non-Scrubwear/Lifestyle 21,713 13,167 59,707 34,833 $ 128,589 $ 102,696 $ 360,937 $ 290,892

Fair Value of Financial Asset_2

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Assets Measured at Fair Value	The following table summarizes the Company’s financial assets measured at fair value on a recurring basis (in thousands): Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 121,977 $ — $ — $ 121,977 $ 121,977 $ — $ — $ 121,977 Fair Value Measurement as of Level 1 Level 2 Level 3 Total Assets Money market funds $ 141,104 $ — $ — $ 141,104 $ 141,104 $ — $ — $ 141,104

Accounts Receivable (Tables)

Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Accounts receivable consisted of the following (in thousands): September 30, December 31, Trade $ 2,730 $ 1,653 Other 5,638 788 $ 8,368 $ 2,441

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2022
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following (in thousands): September 30, December 31, Inventory deposits $ 1,883 $ 798 Prepaid expenses 11,011 5,440 Other 976 1,162 $ 13,870 $ 7,400

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): September 30, December 31, Furniture and fixtures $ 1,031 $ 855 Office equipment 927 809 Machinery and equipment 1,569 1,348 Computer equipment 1,435 953 Software and website design 3,559 2,997 Leasehold improvements 3,083 3,083 Capital projects in progress 3,369 431 Total property and equipment 14,973 10,476 Less: accumulated depreciation and amortization (4,150) (2,863) Property and equipment, net $ 10,823 $ 7,613

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2022
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following (in thousands): September 30, December 31, Accrued inventory $ 11,479 $ 16,243 Accrued shipping 2,417 1,077 Accrued selling expenses 10,034 4,832 Accrued legal expenses 3,142 588 Accrued marketing expenses 2,536 923 Other accrued expenses 2,757 1,014 $ 32,365 $ 24,677

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Lease, Cost	The weighted-average remaining lease term and weighted-average discount rate related to the Company’s operating leases at September 30, 2022 were as follows: Weighted-average remaining lease term 6.4 years Weighted-average discount rate 2.4 %
Summary of Future Undiscounted Lease Payments	Future undiscounted lease payments, and a reconciliation of these payments to the Company’s operating lease liabilities at September 30, 2022, were as follows (in thousands): Remainder of 2022 $ 848 2023 3,458 2024 3,578 2025 3,703 2026 2,346 Thereafter 7,418 Total lease payments $ 21,351 Less: Imputed interest 1,452 Total lease liabilities $ 19,899

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of basic and diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the three and nine months ended September 30, 2022 and 2021 (in thousands, except share and per share amounts): Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 4,044 $ 6,954 $ 17,795 $ (22,152) Denominator: Weighted-average shares—basic 165,543,067 161,348,021 164,960,561 157,620,573 Effect of dilutive stock options 19,676,684 34,843,956 22,723,439 — Effect of dilutive restricted stock 1,772,017 3,193,084 2,078,364 — Weighted-average shares—diluted 186,991,769 199,385,061 189,762,364 157,620,573 Earnings (loss) per share: Basic earnings (loss) per share $ 0.02 $ 0.04 $ 0.11 $ (0.14) Effect of dilutive stock options and restricted stock — (0.01) (0.02) — Diluted earnings (loss) per share $ 0.02 $ 0.03 $ 0.09 $ (0.14)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The Company excluded the following weighted average common equivalent shares from the computation of diluted earnings per share for the three and nine months ended September 30, 2022 and the three and nine months ended September 30, 2021 because including them would have had an anti-dilutive effect: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Stock options to purchase common stock 6,616,871 38,121 4,391,646 40,577,427 Restricted stock units 1,641,630 — 1,130,795 4,601,922

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands		9 Months Ended	12 Months Ended
	May 19, 2021	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jan. 01, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock split, conversion ratio	9
Inventory write-down		$ 300	$ 400
Product return, refund period (in days)		30 days
Returns reserve		$ 3,424	$ 2,761
Revenue recognized		2,100
Operating lease right-of-use assets		15,974
Operating lease liability		$ 19,899
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease right-of-use assets				$ 12,900
Operating lease liability				$ 16,500

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Reconciliation of cash, cash equivalents, and restricted cash (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 155,582	$ 195,374
Restricted cash	0	2,056
Total cash, cash equivalents, and restricted cash	$ 155,582	$ 197,430

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Schedule of Disaggregation of the Company's Net Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 128,589	$ 102,696	$ 360,937	$ 290,892
Scrubwear
Disaggregation Of Revenue [Line Items]
Net Revenues	106,876	89,529	301,230	256,059
Non-Scrubwear/Lifestyle
Disaggregation Of Revenue [Line Items]
Net Revenues	21,713	13,167	59,707	34,833
United States
Disaggregation Of Revenue [Line Items]
Net Revenues	118,316	95,804	332,564	270,532
Rest of the world
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 10,273	$ 6,892	$ 28,373	$ 20,360

Fair Value of Financial Asset_3

Fair Value of Financial Assets and Liabilities - Schedule of Assets Measured at Fair Value (Details) - Money market funds - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	$ 121,977	$ 141,104
Assets fair value	121,977	141,104
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	121,977	141,104
Assets fair value	121,977	141,104
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	0	0
Assets fair value	0	0
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Money market funds	0	0
Assets fair value	$ 0	$ 0

Fair Value of Financial Asset_4

Fair Value of Financial Assets and Liabilities - Narrative (Details) $ in Millions	Sep. 30, 2022 USD ($)
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Held-to-maturity securities	$ 0.5

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Trade	$ 2,730	$ 1,653
Other	5,638	788
Accounts receivable	$ 8,368	$ 2,441

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Prepaid Expense and Other Assets, Current [Abstract]
Inventory deposits	$ 1,883	$ 798
Prepaid expenses	11,011	5,440
Other	976	1,162
Prepaid expenses and other current assets	$ 13,870	$ 7,400

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Total property and equipment	$ 14,973	$ 10,476
Less: accumulated depreciation and amortization	(4,150)	(2,863)
Property and equipment, net	10,823	7,613
Furniture and fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	1,031	855
Office equipment
Property Plant And Equipment [Line Items]
Total property and equipment	927	809
Machinery and equipment
Property Plant And Equipment [Line Items]
Total property and equipment	1,569	1,348
Computer equipment
Property Plant And Equipment [Line Items]
Total property and equipment	1,435	953
Software and website design
Property Plant And Equipment [Line Items]
Total property and equipment	3,559	2,997
Leasehold improvements
Property Plant And Equipment [Line Items]
Total property and equipment	3,083	3,083
Capital projects in progress
Property Plant And Equipment [Line Items]
Total property and equipment	$ 3,369	$ 431

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Depreciation	$ 0.5	$ 0.4	$ 1.3	$ 1

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accrued inventory	$ 11,479	$ 16,243
Accrued shipping	2,417	1,077
Accrued selling expenses	10,034	4,832
Accrued legal expenses	3,142	588
Accrued marketing expenses	2,536	923
Other accrued expenses	2,757	1,014
Total accrued expenses	$ 32,365	$ 24,677

Financing Arrangements - Additi

Financing Arrangements - Additional Information (Details) - USD ($)		3 Months Ended
	Dec. 02, 2020	Sep. 30, 2022	Dec. 31, 2021	Oct. 28, 2021	Sep. 07, 2021
Revolving Credit Facility | JPMorgan Chase Bank - Existing Credit Facility
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 50,000,000
Line of credit facility additional borrowing capacity	$ 25,000,000
Line of credit facility, commitment fee percentage		0.25%
Debt collateral amount			$ 2,100,000
Letter of credit cancelled				$ 1,300,000
Revolving Credit Facility | Bank of America, N.A.
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity					$ 100,000,000
Debt instrument, basis spread on variable rate		1.125%
Amount outstanding		$ 0
Outstanding borrowings under existing credit facility		$ 95,600,000
Unused commitment fee (as a percent)		0.175%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | JPMorgan Chase Bank - Existing Credit Facility
Line Of Credit Facility [Line Items]
Debt instrument, floor rate	0.50%
Debt instrument, basis spread on variable rate	1.75%
Line of credit facility outstanding borrowing, percentage			105%
Revolving Credit Facility | Base Rate | Bank of America, N.A.
Line Of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		0.125%
Letter of Credit | JPMorgan Chase Bank - Existing Credit Facility
Line Of Credit Facility [Line Items]
Amount outstanding			$ 1,900,000		3,200,000
Debt collateral amount					$ 3,300,000
Letter of Credit | Bank of America, N.A.
Line Of Credit Facility [Line Items]
Amount outstanding		$ 4,400,000
Letter of Credit | London Interbank Offered Rate (LIBOR) | JPMorgan Chase Bank - Existing Credit Facility
Line Of Credit Facility [Line Items]
Line of credit facility outstanding borrowing, percentage					105%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Estimate of contingent sales tax payable	$ 1.6	$ 1.6
Inventory purchase obligations	$ 61.3

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Leases [Abstract]
Extension period (in years)	5 years	5 years
Abatement period (in years)		3 months
Operating lease cost	$ 0.8	$ 2
Short-term lease expense	$ 0.9	2
Cash payments included in the measurement of the operating lease liabilities		1.7
Right of use assets obtained in exchange for operating lease liabilities		$ 4.7

Leases - Summary of Weighted Av

Leases - Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Sep. 30, 2022
Leases [Abstract]
Weighted-average remaining lease term	6 years 4 months 24 days
Weighted-average remaining lease term	2.40%

Leases - Summary of Future Undi

Leases - Summary of Future Undiscounted Lease Payments (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Lessee, Operating Lease, Liability, to be Paid [Abstract]
Remainder of 2022	$ 848
2023	3,458
2024	3,578
2025	3,703
2026	2,346
Thereafter	7,418
Total lease payments	21,351
Less: Imputed interest	1,452
Total lease liabilities	$ 19,899

Stock Based Compensation (Detai

Stock Based Compensation (Details) $ in Millions	Aug. 09, 2022 USD ($) installment
RSU
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of installment payments | installment	10
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of installment payments | installment	29
Executive Chair
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value	$ 24.9
Grant date fair value of option	13.6
Executive Chair | RSU
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant date fair value	$ 11.3

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	65.80%	27.70%	49.30%	(243.30%)
Provision for income taxes	$ 7,771	$ 2,664	$ 17,294	$ 15,700

Earnings (Loss) Per Share - Nar

Earnings (Loss) Per Share - Narrative (Details)	Sep. 30, 2022 vote
Class A Common Stock
Earnings Per Share Basic [Line Items]
Number of votes	1
Class B Common Stock
Earnings Per Share Basic [Line Items]
Number of votes	20

Earnings (Loss) Per Share - Sch

Earnings (Loss) Per Share - Schedule of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income (loss)	$ 4,044	$ 4,852	$ 8,899	$ 6,954	$ (40,546)	$ 11,440	$ 17,795	$ (22,152)
Denominator:
Weighted-average shares outstanding—basic (in shares)	165,543,067			161,348,021			164,960,561	157,620,573
Weighted-average shares outstanding - diluted (in shares)	186,991,769			199,385,061			189,762,364	157,620,573
Earnings (loss) per share:
Basic earnings per share (in USD per share)	$ 0.02			$ 0.04			$ 0.11	$ (0.14)
Effect of dilutive stock options and restricted stock (in USD per share)	0			(0.01)			(0.02)	0
Diluted earnings per share (in USD per share)	$ 0.02			$ 0.03			$ 0.09	$ (0.14)
Employee Stock Option
Denominator:
Effect of dilutive stock options (in shares)	19,676,684			34,843,956			22,723,439	0
Restricted Stock
Denominator:
Effect of dilutive stock options (in shares)	1,772,017			3,193,084			2,078,364	0

Earnings (Loss) Per Share - S_2

Earnings (Loss) Per Share - Schedule of Antidilutive Securities Excluded From Computation of Earning Per Share (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Employee Stock Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Stock options to purchase common stock (in shares)	6,616,871	38,121	4,391,646	40,577,427
RSU
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Stock options to purchase common stock (in shares)	1,641,630	0	1,130,795	4,601,922

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	3 Months Ended
	Sep. 30, 2021 USD ($)
Investor | Reimbursement Of IPO Professional Fees
Related Party Transaction [Line Items]
Transactions with related parties	$ (4.9)