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
Slide 2: Forward-Looking Statements
Forward-Looking Statements This Presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Sectio
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 reaches consumers in all U.S. states and over 50 countries 2022 2024 Published Sustainability Jane Goodall Report partnership 2013 2017 2020 and collection 2005 2008 Jade Trau partnership Founded in San Early adopter >$25m in sa
Slide 6: Brilliant Earth's Competitive Advantages
Brilliant Earth’s 1 VAST INDUSTRY THAT IS RIPE FOR DISRUPTION Competitive Advantages 2 AGILE BUSINESS MODEL THAT CAN SWIFTLY ADAPT USING DATA TO INFORM DECISION-MAKING 3 ASSET LIGHT MODEL NOT BURDENED BY HOLDING EXCESS INVENTORY 4 OMNICHANNEL MODEL PROVIDES A JOYFUL, SEAMLESS SHOPPING EXPERIENCE 5 O
Slide 7: Proven Ability to Deliver Profitable Growth
Proven Ability to Deliver Profitable Growth NET SALES ($ 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: Q1 2024 Results
Q1 2024 Results 8
Slide 9: Q1 2024 Highlights and Key Achievements
Q1 2024 Highlights and Key Achievements ª $97.3M in net sales, approximately flat year-over-year ª 13.7% y/y total order growth and over 20% y/y growth in repeat orders ª Average Selling Price (ASP) up y/y across product lines including engagement rings, wedding bands, and fine jewelry ª Gross margi
Slide 10: First Quarter 2024 Financial Summary
First Quarter 2024 Financial Summary Q1 NET SALES ($ MILLIONS) Q1 GROSS MARGIN Q1 ADJUSTED EBITDA ($ MILLIONS) ($ MILLIONS) $97.7 $97.3 59.9% 54.9% $53.7 $58.3 $5.1 Q1 2024 5.2% OF NET SALES Q1 2023 Q1 2024 Q1 2023 Q1 2024 -0.4% YoY +500 bps YoY GROWTH See Appendix for a reconciliation from Net Inco
Slide 11: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results Q1 AVERAGE ORDER VALUE Q1 TOTAL ORDERS (IN THOUSANDS) ª Strong order growth demonstrates effectiveness in customer acquisition and 40.5 retention, brand resonance and strong 35.6 $2,742 omnichannel performance across our $2,402 products ª ASP for engagement rings
Slide 12: Continued Brand Success
Continued Brand Success 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 quarter ever in social
Slide 13: Beautifully Designed, Trend-Leading, Distinctive, Personalized Products
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 Logan Hollowell Collaboration ª Double-digit y/y growth in Q1 in wedding and anniversary rings ª Leading diamond origin transparency
Slide 14: Business Model Drives Inventory Turns and Negative Working Capital
Business Model Drives Inventory Turns and Negative Working Capital1 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 tha
Slide 15: Power of Our Omnichannel Model
Power of Our Omnichannel Model ª Seamless consumer experiences across digitally native and showroom environments Detroit ª Showroom experience and formats that enhance customer engagement ª Industry-leading features that optimize consumers’ experiences online ª Continue to see positive, incremental
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 C
Slide 18: 2024 Outlook
2024 Outlook Second Quarter Low single- Low to mid-single- digit % Adjusted digit % y/y decline EBITDA margin NET SALES ADJUSTED EBITDA Fiscal Year $455m–$469m $14m–$22m NET SALES ADJUSTED EBITDA CONFIDENTIAL 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 CONFIDENTIAL 19
Slide 20: Appendix
Appendix 20
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ADJUSTED EBITDA AND ADJUSTED EBITDA Three months ended Year ended MARGIN March 31, December 31, (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 4,6
Slide 22: Brilliant Earth
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