Brilliant Earth Group, Inc. · NASDAQ:BRLT

Brilliant Earth — William Blair 43rd Annual Growth Stock Conference (June 2023)

23 slides from Brilliant Earth's conference presentation, Jun 7, 2023

  1. Slide 1: William Blair 43rd Annual Growth Stock Conference

    William Blair 43rd Annual Growth Stock Conference June 7, 2023

  2. 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

  3. Slide 3: Beth Gerstein, Chief Executive Officer

    Beth Gerstein Chief Executive Officer

  4. Slide 4: Mission-Driven Ethos

    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 modernize Unique and the jewelry industry. Award-Winning Desi

  5. Slide 5: Key metrics: net sales, margins, brand awareness

    NET SALES Y/Y NET SALES AOV GROSS MARGIN ADJ. EBITDA GROWTH MARGIN INVENTORY TURNS CAPEX % OF NET SALES AIDED BRAND AWARENESS2 1 FY 2022; 2 Aided Brand Awareness with our demographic; Brilliant Earth Q1 2023 Brand Awareness Study See Appendix for a walk from Net Income and Net Income Margin to Adjus

  6. Slide 6: Brilliant Earth reaches consumers in all U.S. states and over 50 countries

    Brilliant Earth reaches consumers in all U.S. states and over 50 countries $440m in sales through our e-commerce platform and 31 showrooms Published Sustainability Report Jade Trau partnership Fairmined gold Founded in Early adopter >$25m in sales >$100m in sales Simone I. partnership San Francisco

  7. Slide 7: Vast industry ripe for disruption; agile business model

    VAST INDUSTRY THAT IS RIPE FOR DISRUPTION AGILE BUSINESS MODEL THAT CAN SWIFTLY ADAPT USING DATA TO INFORM DECISION-MAKING ASSET LIGHT MODEL NOT BURDENED BY HOLDING EXCESS INVENTORY OMNICHANNEL MODEL PROVIDES A JOYFUL, SEAMLESS SHOPPING EXPERIENCE OUR VALUES STRONGLY RESONATE WITH OUR CUSTOMERS 7

  8. Slide 8: Path to become the premier global jewelry brand for today's consumer

     Continue on our path to become the premier global jewelry brand for today’s consumer  Expand and refine distinctive, high-quality product offering  Expand and elevate omnichannel experience  Invest in technology and systems to enable continued profitable growth 8

  9. Slide 9: Grew Q1 2023 share of voice with 85% more media impressions

     Grew Q1 2023 share of voice with 85% more media impressions than last year  Executing moments with trend- leading products with influencers like Nick Viall from The Bachelor sharing his proposal with a Brilliant Earth ring and Kelsea Ballerini wearing Brilliant Earth at the Grammys  Among top je

  10. Slide 10: Increasing Awareness

    Increasing Awareness  Aided Brand Awareness with our demographic grew to 66%, up 12 points from our measurement ~2 years ago1  Expansion of reach reflected in growing fine jewelry self-purchases Leveraging Influencers  Generated 68% y/y growth in fine jewelry and Partnerships orders during 2023 V

  11. Slide 11: Strong bridal offering with new, trend-leading and proprietary designs

     Strong bridal offering with new, trend-leading and proprietary designs  Launched the Mosaics Collection in Q1 2023, reinforcing design leadership with distinctive engagement rings and wedding bands 11

  12. Slide 12: Launched 6 new showrooms in 2023

     Have launched 6 new showrooms in 2023 – Charlotte, Brooklyn, Tampa, Pasadena, Nashville and Fairfax, bringing our total number of showrooms to 31  Continue to test and evolve showroom concepts and executions, including new formats like mall-based showrooms  Showrooms opened at least one year hav

  13. Slide 13: Tech-enabled data analysis drives curated product assortment

     Tech-enabled data analysis drives curated product assortment in-store and online  Refined testing and sophisticated algorithms optimize e-commerce platform  Product development cycle based on data- driven insights from consumer preferences  Customer interactions are tracked and analyzed in an i

  14. Slide 14: Exceptional customer experience

     Exceptional customer experience  Virtual inventory of hundreds of thousands of natural & lab-grown diamonds offers broad range of options for customers1  ~6-12 business day typical make-to-order turnaround for create-your-own engagement rings  Supply chain advantages from long term strategic re

  15. Slide 15: Seamless consumer experiences across digital and showroom environments

     Seamless, frictionless consumer experiences across digitally native and showroom environments  Showroom experience and formats that enhance customer engagement  Industry-leading features that optimize consumers’ experiences online  Online waitlist to provide convenient appointment booking 15

  16. Slide 16: Net Sales, Adjusted EBITDA, Gross Profit Margin

    NET SALES ($MILLIONS) ADJUSTED EBITDA1 ($MILLIONS) $440 $50 $380 $39 $252 $28 $201 $148 $112 $83 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 2020 2021 2022 GROSS PROFIT MARGIN % ADJUSTED EBITDA MARGIN % 1 See Appendix for a walk from Net Income and Net Income Margin to Adjusted EBITDA and Adju

  17. Slide 17: Full year 2022 results

    NET SALES ($MILLIONS) ADJUSTED EBITDA ($MILLIONS) TOTAL ORDERS (THOUSANDS) 149.6 $439.9 $50.5 118.2 $380.2 $39.0 FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 YoY FULL YEAR 2022 YoY GROWTH ADJUSTED EBITDA MARGIN GROWTH GROSS MARGIN EXPANSION ($MILLIONS) ADJUSTED EBITDA MARGIN AVERAGE ORDER VALUE 5

  18. Slide 18: Q1 2023 net sales, gross margin, Adjusted EBITDA

    NET SALES ($MILLIONS) GROSS MARGIN ($MILLIONS) ADJUSTED EBITDA ($MILLIONS) $100.0 54.9% $8.4 $97.7 50.1% $5.5 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 YoY YoY GROWTH OF NET SALES OF NET SALES See Appendix for a walk from Net Income and Net Income Margin to Adjusted EBITDA and Adjusted EBITDA

  19. Slide 19: Q1 2023 AOV and total orders

    TOTAL ORDERS (IN THOUSANDS) AOV $3,090 35.6 32.4 $2,742 Q1 2022 Q1 2023 Q1 2022 Q1 2023 ORDERS GROWTH 19

  20. Slide 20: Long-term targets

    NET SALES GROWTH RATE: HIGH 20s TO LOW 30s % GROSS MARGIN: MID 50s % MARKETING % OF NET SALES: MID TO HIGH TEENS ADJUSTED EBITDA MARGIN: 15-20%+ 20

  21. Slide 21: 2023 Outlook

    2023 Outlook Fiscal Year $460m-$490m NET SALES $17m-$32m ADJUSTED EBITDA

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: Adjusted EBITDA and Adjusted EBITDA Margin

    Twelve months ended Three months ended ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN December 31, March 31, (Unaudited and $ in 000’s) 2022 2021 2020 2023 2022 Net income (loss), as reported $19,025 $26,256 $21,576 $(440) $3,369 Interest expense 4,658 7,589 4,942 1,206 1,776 Income tax (benefit) expens

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