Brilliant Earth Group, Inc. · NASDAQ:BRLT
Brilliant Earth — Q2 2024 Earnings Presentation
21 slides from Brilliant Earth's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results August 8, 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: Table of Contents
Table of Contents Company Overview 4 Q2 2024 Results 7 2024 Priorities and Outlook 15 Appendix 19 3
Slide 4: Company Overview
Company Overview 4
Slide 5: 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 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 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: Q2 2024 Results
Q2 2024 Results 7
Slide 8: Q2 2024 Highlights and Key Achievements
Q2 2024 Highlights and Key Achievements $105.4M in net sales, -4% y/y, within guidance range 3.6% y/y total order growth and 17% y/y growth in repeat orders Average Selling Price (ASP) up y/y across product lines, including engagement rings, wedding bands, and fine jewelry Gross margin of 60
Slide 9: Second Quarter & Six Months Fiscal Year 2024 Financial Summary
Second Quarter & Six Months Fiscal Year 2024 Financial Summary Q2 NET SALES ($ MILLIONS) Q2 GROSS MARGIN ($ MILLIONS) Q2 ADJUSTED EBITDA ($ MILLIONS) $110.2 $5.5 $105.4 60.8% 57.6% Q2 2024 $64.1 $63.5 5.2% OF NET SALES Q2 2023 Q2 2024 Q2 2023 Q2 2024 -4.3% Y/Y +320bps Y/Y GROWTH Six Months NET SALES
Slide 10: Second Quarter & Six Months Fiscal 2024 Financial Results
Second Quarter & Six Months Fiscal 2024 Financial Results Q2 Average Order Value Q2 Total Orders (IN THOUSANDS) Continued order growth $2,571 $2,374 44.4 demonstrates efficiency of 42.8 customer acquisition and retention, brand resonance, and strong omnichannel performance Q2 2023 Q2 2024 Q2 2023
Slide 11: Continued Brand Success
Continued Brand Success Launched “The Future is Brilliant” campaign in celebration of Jane Goodall’s 90th birthday in conjunction with the next generation of thought leaders and sustainability advocates Executed our most successful VIP bride campaign with “Dance Moms” alum Brooke Hyland, generat
Slide 12: Beautifully Designed, Trend-Leading, Distinctive, Personalized Products
Beautifully Designed, Trend-Leading, Distinctive, Personalized Products Realized outsized bookings growth of 6% y/y in engagement ring designs unique to Brilliant Earth within our Signature Collection in Q2 Logan Hollowell Collaboration Another quarter of strong fine jewelry performance with 29%
Slide 13: 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 14: 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 9% bookings growth y/y in Q2 in engagement rin
Slide 15: 2024 Priorities and Outlook
2024 Priorities and Outlook 15
Slide 16: 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 17: 2024 Outlook
2024 Outlook Third Quarter Breakeven to 11-14 % y/y decline low single-digit % Adjusted EBITDA margin NET SALES ADJUSTED EBITDA Fiscal Year $410m–$425m $12m–$16m NET SALES ADJUSTED EBITDA 17
Slide 18: 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 18
Slide 19: Appendix
Appendix 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ADJUSTED EBITDA AND Three months ended Six months ended ADJUSTED EBITDA MARGIN June 30, June 30, (Unaudited and $ in 000’s) 2024 2023 2024 2023 Net income, as reported $1,375 $1,235 $2,442 $795 Interest expense 1,293 1,280 2,507 2,486 Income tax (benefit) expense (62
Slide 21: Brilliant Earth
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