Brilliant Earth Group, Inc. · NASDAQ:BRLT
Brilliant Earth — Q2 2023 Earnings Presentation
17 slides from Brilliant Earth's earnings presentation, Aug 9, 2023
Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results August 9, 2023
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: 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 leader in fine jewelry. Personalized, Digitally Native, Joyful We are successfully Tech-Driven Omnichannel and Customer- Customer executing our strategy to Obsessed Experience transform and moderni
Slide 4: Second Quarter & Six Months Fiscal Year 2023 Financial Results
Second Quarter & Six Months Fiscal Year 2023 Financial Results Q2 NET SALES ($MILLIONS) Q2 GROSS MARGIN EXPANSION Q2 ADJUSTED EBITDA ($MILLIONS) ($MILLIONS) $108.8 $110.2 57.6% $7.7 53.1% $63.5 $57.8 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 7.0% +1.3% YoY +450 bps OF NET SALES YoY GROWTH SIX MONTHS 2
Slide 5: 2023 Priorities
2023 Priorities ª Continue on our path to become the premier global jewelry brand for today’s consumer ª Expand and refine distinctive, high-quality product offering ª Expand and elevate omnichannel experience ª Invest in technology and systems to enable continued profitable growth 5
Slide 6: Growing Brand Reach and Resonance
Growing Brand Reach and Resonance ª Continue to engage with influential brand ambassadors driving engagement ª Record Mother’s Day gifting ª Strong word of mouth and social engagement including Dean and Caelynn from The Bachelor sharing their Brilliant Earth engagement ring and Corey Brooks sharing
Slide 7: Beautifully Designed, Trend-Leading, Distinctive, Personalized Products
Beautifully Designed, Trend-Leading, Distinctive, Personalized Products ª Strong bridal offering with new, trend-leading, and proprietary designs ª Expanded Signature collections with new rings and fine jewelry delivering strong bookings and productivity ª Expanded quick ship assortment of bridal ri
Slide 8: A New Era Has Arrived: "Planet First" Lab Diamonds
A New Era Has Arrived: “Planet First” Lab Diamonds ª Introduced an extensive collection of planet-first lab grown diamonds through two new collections, centered on sustainability and quality ª "Capture Collection" features lab diamonds grown with carbon captured before it is released into the atmosp
Slide 9: Continued Showroom Expansion
Continued Showroom Expansion ª Opened 4 new showrooms in Q2 2023: Pasadena, CA, Nashville, TN, Fairfax, VA, and our second location in Chicago, IL ª Expect to finish 2023 with at least 35 showroom locations ª Continue to test and refine showroom concepts and executions, including new formats like up
Slide 10: Power of Omnichannel Model
Power of Omnichannel Model ª Seamless, frictionless 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 Online waitlist to provide convenien
Slide 11: Brilliant Earth's Competitive Advantages
Brilliant 1 Earth’s VAST INDUSTRY THAT IS RIPE FOR DISRUPTION 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 12: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results NET SALES ($MILLIONS) TOTAL ORDERS (IN THOUSANDS) AOV $110.2 42.8 $3,077 $108.8 35.4 $2,571 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 +1.3% YoY +21.2% ORDERS GROWTH 12
Slide 13: Six Months 2023 Financial Results
Six Months 2023 Financial Results NET SALES ($MILLIONS) TOTAL ORDERS (IN THOUSANDS) AOV $3,083 $208.8 $207.9 78.5 $2,649 67.7 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 (0.5)% YoY +15.9% ORDERS GROWTH 13
Slide 14: Long-Term Growth Targets
Long-Term Growth Targets 1 NET SALES GROWTH RATE: HIGH 20s TO LOW 30s % 2 GROSS MARGIN: MID 50s % 3 MARKETING % OF NET SALES: MID TO HIGH TEENS 4 ADJUSTED EBITDA MARGIN: 15-20%+ 14
Slide 15: Raising Our 2023 Outlook
Raising Our 2023 Outlook Fiscal Year $460m–$490m NET SALES $22m–$35m ADJUSTED EBITDA 15
Slide 16: Appendix
Appendix 16
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three months ended Six months ended ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN June 30, June 30, (Unaudited and $ in 000’s) 2023 2022 2023 2022 Net income, as reported $1,235 $3,751 $795 $7,120 Interest expense 1,280 1,146 2,486 2,922 Income tax expense 37 113 24 209
Brilliant Earth Group — Q2 2023 Earnings Presentation on 6ix