Brilliant Earth Group, Inc. · NASDAQ:BRLT
Brilliant Earth — Sidoti Micro Cap Conference (November 2024)
23 slides from Brilliant Earth's conference presentation, Nov 13, 2024
Slide 1: Sidoti Micro Cap Conference
Sidoti Micro Cap Conference November 13, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This Presentation and statements to be made on the earnings conference call (collectively, the “Presentation”), contain forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements containe
Slide 3: Company Overview
Company Overview 3
Slide 4: The Next Generation Fine Jeweler for Today’s Consumer
The Next Generation Fine Jeweler for Today’s Consumer Mission-Driven Ethos Brilliant Earth is a global Personalized, Digitally Native, leader in fine jewelry. Joyful Tech-Driven Omnichannel and Customer- We are successfully Customer Obsessed Experience Unique and executing our strategy to Award-Winn
Slide 5: Industry Transforming History and Growth-Focused Future
Industry Transforming History and Growth-Focused Future Brilliant Earth has served consumers in all U.S. states and over 50 countries 2022 2024 Published Sustainability Jane Goodall Report partnership and collection 2005 2008 2013 2017 2020 Jade Trau partnership On track to 40 Founded in San Early a
Slide 6: Brilliant Earth’s Competitive Advantages
1 VAST INDUSTRY THAT IS RIPE FOR DISRUPTION Brilliant Earth’s Competitive Advantages 2 AGILE BUSINESS MODEL THAT CAN SWIFTLY ADAPT 3 USING DATA TO INFORM DECISION-MAKING ASSET LIGHT MODEL NOT BURDENED BY HOLDING EXCESS INVENTORY 4 OMNICHANNEL MODEL PROVIDES A JOYFUL, SEAMLESS SHOPPING EXPERIENCE 5 O
Slide 7: Proven Ability to Deliver Profitable Growth
Proven Ability to Deliver Profitable Growth NET SALES ($ MILLIONS) ADJUSTED EBITDA1 ($ MILLIONS) $50 $440 $446 $39 $380 $28 $26 $252 2020 2021 2022 2023 2020 2021 2022 2023 45% 49% 53% 58% 11% 13% 9% 6% GROSS PROFIT MARGIN % ADJUSTED EBITDA MARGIN % 1 See Appendix for a reconciliation from Net Incom
Slide 8: Q3 2024 Results
Q3 2024 Results 8
Slide 9: Q3 2024 Highlights and Key Achievements
Q3 2024 Highlights and Key Achievements $99.9M in Net Sales, within guidance range, -13% y/y Total orders approximately flat at -1% y/y, and 11% y/y growth in repeat orders Average Selling Price (ASP) approximately flat y/y in engagement rings and y/y ASP growth in wedding and anniversary band
Slide 10: Third Quarter & Nine Months Fiscal Year 2024 Financial Summary
Third Quarter & Nine Months Fiscal Year 2024 Financial Summary Q3 NET SALES ($ MILLIONS) Q3 GROSS MARGIN ($ MILLIONS) Q3 ADJUSTED EBITDA ($ MILLIONS) $114.2 $3.6 $99.9 60.8% 58.5% Q3 2024 $60.8 $66.8 3.6% OF NET SALES Q3 2023 Q3 2024 Q3 2023 Q3 2024 -12.5% Y/Y +230bps Y/Y GROWTH Nine Months NET SALE
Slide 11: Third Quarter & Nine Months Fiscal 2024 Financial Results
Third Quarter & Nine Months Fiscal 2024 Financial Results Q3 Average Order Value (AOV) Q3 Total Orders (IN THOUSANDS) Approximately flat y/y Total Order growth $2,645 at -1% and 11% y/y growth in repeat orders $2,337 43.2 42.7 in Q3 demonstrates efficiency of customer acquisition and retention and
Slide 12: Continued Brand Success
Continued Brand Success Executed a fully integrated, omnichannel campaign for The Jane Goodall Collection, a mission-aligned partnership celebrating a legend and our shared commitment to people and planet first practices. Launched “Rethink Everything You Know About Diamonds” amplifying Brilliant
Slide 13: Beautifully Designed, Trend-Leading, Distinctive, Personalized Products
Beautifully Designed, Trend-Leading, Distinctive, Personalized Products Drove strong y/y Bookings growth in wedding and anniversary bands and fine jewelry in Q3 Sol Hoop Earrings Olivetta Wedding Bands Logan Hollowell Collaboration Launched a much-anticipated fine jewelry collection with Dr. Jan
Slide 14: Business Model Drives Inventory Turns and Negative Working Capital
Business Model Drives Inventory Turns and Negative Working Capital1 Design Your Own model and virtual inventory of hundreds of thousands of natural & lab-grown diamonds offers broad range of options for customers, while keeping balance sheet inventory low Inventory turns significantly higher tha
Slide 15: Power of Our Omnichannel Model
Power of Our Omnichannel Model Seamless consumer experiences across digitally native and showroom environments Showroom experience and formats that enhance customer engagement Industry-leading features that optimize consumers’ experiences online Continued compelling metro uplift from showroo
Slide 16: 2024 Priorities and Outlook
2024 Priorities and Outlook 16
Slide 17: 2024 Priorities
2024 Priorities 1 CONTINUE ON OUR PATH TO BECOME THE PREMIER GLOBAL JEWELRY BRAND FOR TODAY’S AND TOMORROW’S CONSUMER 2 EXPAND AND REFINE DISTINCTIVE, HIGH-QUALITY PRODUCT OFFERING 3 EXPAND AND ELEVATE OMNICHANNEL EXPERIENCE 4 INVEST TO DRIVE OPERATIONAL EFFICIENCY AND LONG-TERM SUSTAINABLE GROWTH 1
Slide 18: 2024 Outlook
2024 Outlook Fiscal Year $410m–$425m $14m–$16m NET SALES ADJUSTED EBITDA 18
Slide 19: Medium-Term Targets
Medium-Term Targets 1 NET SALES GROWTH RATE: ACCELERATE TO LOW TEENS GROWTH RATE IN 2027 2 GROSS MARGIN: HIGH 50s % THROUGH 2027 3 MARKETING % OF NET SALES: BEGIN DECREASING IN 2025 4 ADJUSTED EBITDA MARGIN: INCREASE TO DOUBLE DIGIT MARGIN IN 2027 19 Sol Starburst, Diamond Tube, Sol, Luxe Whisper Ba
Slide 20: Appendix
Appendix 20
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN Year ended December 31, (Unaudited and $ in 000’s) 2023 2022 2021 2020 Net income, as reported $4,734 $19,025 $26,256 $21,576 Interest expense 5,128 4,658 7,589 4,942 Income tax benefit (431) (168) (316) - Depreciation expen
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ADJUSTED EBITDA AND Three months ended Nine months ended ADJUSTED EBITDA MARGIN September 30, September 30, (Unaudited and $ in 000’s) 2024 2023 2024 2023 Net (loss) income, as reported $(1,075) $1,998 $1,367 $2,793 Interest expense 1,320 1,322 3,827 3,808 Income tax
Slide 23: Brilliant Earth
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