Brilliant Earth Group, Inc. · NASDAQ:BRLT
Brilliant Earth — Sidoti Small Cap Conference June 2024
22 slides from Brilliant Earth's conference presentation, Jun 12, 2024
Slide 1: Sidoti Small Cap Conference June 12, 2024
Sidoti Small Cap Conference June 12, 2024 EXHIBIT 99.1
Slide 2: Forward-looking guidance and non-GAAP disclaimer
CONFIDENTIAL This presentation includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this rel
Slide 3: Company Overview
Company Overview 3
Slide 4: The Next Generation Fine Jeweler for Today's Consumer
CONFIDENTIAL The Next Generation Fine Jeweler for Today’s Consumer Brilliant Earth is a global leader in fine jewelry. We are successfully executing our strategy to transform and modernize the jewelry industry. 4 Digitally Native, Tech-Driven and Customer- Obsessed Mission-Driven Ethos Unique and Aw
Slide 5: Industry Transforming History and Growth-Focused Future
CONFIDENTIAL Brilliant Earth reaches consumers in all U.S. states and over 50 countries 2020 Simone I. Smith product partnership 2005 Founded in San Francisco 2013 >$25m in sales Launched Australian website 2015 >$50m in sales Launched Brilliant Earth Mobile School in the Democratic Republic of Cong
Slide 6: Brilliant Earth's Competitive Advantages
CONFIDENTIAL VAST INDUSTRY THAT IS RIPE FOR DISRUPTION1Brilliant Earth’s Competitive Advantages 6 AGILE BUSINESS MODEL THAT CAN SWIFTLY ADAPT2 USING DATA TO INFORM DECISION-MAKING ASSET LIGHT MODEL NOT BURDENED BY HOLDING EXCESS INVENTORY 3 OMNICHANNEL MODEL PROVIDES A JOYFUL, SEAMLESS SHOPPING EXPE
Slide 7: Proven Ability to Deliver Profitable Growth
CONFIDENTIAL Proven Ability to Deliver Profitable Growth 7 ADJUSTED EBITDA1 ($ MILLIONS)NET SALES ($ MILLIONS) 1 See Appendix for a reconciliation from Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin $252 $380 $440 $446 2020 2021 2022 2023 $28 $50 $39 $26 2020 2021 202
Slide 8: Q1 2024 Results
8 Q1 2024 Results
Slide 9: Q1 2024 Highlights and Key Achievements
CONFIDENTIAL 9 ª $97.3M in net sales, approximately flat year-over-year ª 13.7% y/y total order growth and over 20% y/y growth in repeat orders ª Average Selling Price (ASP) up y/y across product lines including engagement rings, wedding bands, and fine jewelry ª Gross margin of 59.9% a 500-basis po
Slide 10: First Quarter 2024 Financial Summary
CONFIDENTIAL 10 +500 bps 54.9% 59.9% Q1 2023 Q1 2024 Q1 GROSS MARGIN ($ MILLIONS) $58.3$53.7 Q1 ADJUSTED EBITDA ($ MILLIONS) $5.1 Q1 2024 5.2% OF NET SALES YoY GROWTH See Appendix for a reconciliation from Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA Margin $97.7 $97.3 Q1
Slide 11: First Quarter 2024 Financial Results
CONFIDENTIAL $2,742 $2,402 Q1 2023 Q1 2024 11 Q1 AVERAGE ORDER VALUE ª Strong order growth demonstrates effectiveness in customer acquisition and retention, brand resonance and strong omnichannel performance across our products ª ASP for engagement rings, wedding bands and fine jewelry up y/y in Q1
Slide 12: Continued Brand Success
CONFIDENTIAL Continued Brand Success 12 ª Launched our partnership with legendary conservationist Dr. Jane Goodall in support of the Jane Goodall Institute ª Executed Valentine’s Day ‘Real Love’ campaign featuring customer love stories resulting in over 50M media impressions ª Drove strongest quarte
Slide 13: Beautifully Designed, Trend-Leading, Distinctive, Personalized Products
CONFIDENTIAL 13 Beautifully Designed, Trend-Leading, Distinctive, Personalized Products ª Strong fine jewelry performance with 45% y/y growth in the two weeks prior to Valentine’s Day ª Double-digit y/y growth in Q1 in wedding and anniversary rings ª Leading diamond origin transparency with more tha
Slide 14: Business Model Drives Inventory Turns and Negative Working Capital
CONFIDENTIAL ª 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 ª Inventory turns significantly higher than industry average ª Inventory ended less than 3% highe
Slide 15: Power of Our Omnichannel Model
CONFIDENTIAL Houston Detroit 15 Power of Our Omnichannel Model ª Seamless consumer experiences across digitally native and showroom environments ª Showroom experience and formats that enhance customer engagement ª Industry-leading features that optimize consumers’ experiences online ª Continue to se
Slide 16: 2024 Priorities and Outlook
16 2024 Priorities and Outlook
Slide 17: 2024 Priorities
CONFIDENTIAL 17 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 SUST
Slide 18: 2024 Outlook
CONFIDENTIAL 2024 Outlook 18 Low to mid-single- digit % y/y decline NET SALES $455m–$469m NET SALES $14m–$22m ADJUSTED EBITDA Second Quarter Fiscal Year Low single- digit % Adjusted EBITDA margin ADJUSTED EBITDA
Slide 19: Medium-Term Targets
CONFIDENTIAL 19 Medium-Term Targets NET SALES GROWTH RATE: ACCELERATE TO LOW TEENS GROWTH RATE IN 2027 GROSS MARGIN: HIGH 50s % THROUGH 20272 MARKETING % OF NET SALES: BEGIN DECREASING IN 20253 ADJUSTED EBITDA MARGIN: INCREASE TO DOUBLE DIGIT MARGIN IN 20274 1
Slide 20: Appendix
20 Appendix
Slide 21: GAAP to Non-GAAP Reconciliations
CONFIDENTIAL GAAP to Non-GAAP Reconciliations ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN (Unaudited and $ in 000’s) 2024 2023 2023 2022 2021 2020 Net income (loss), as reported $1,067 $(440) $4,734 $19,025 $26,256 $21,576 Interest expense 1,214 1,206 5,128 4,658 7,589 4,942 Income tax expense (benef
Slide 22: Brilliant Earth
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