Slide 1: Third Quarter Fiscal 2022 Financial Results
THIRD QUARTER FISCAL 2022 FINANCIAL RESULTS November 10, 2022
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 within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical
Slide 3: 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
Slide 4: Q3 and Nine Months Net Sales, Gross Margin, Adjusted EBITDA
Q3 NET SALES ($MILLIONS) Q3 GROSS MARGIN EXPANSION ($MILLIONS) Q3 ADJUSTED EBITDA ($MILLIONS) $111.4 54.7% $95.2 50.4% Q3 2021 Q3 2022 Q3 2021 Q3 2022 OF NET SALES YoY GROWTH NINE MONTHS 2022 NET SALES ($MILLIONS) NINE MONTHS 2022 GROSS MARGIN EXPANSION NINE MONTHS 2022 ADJUSTED EBITDA ($MILLIONS) (
Slide 5: Industry leader with Millennial and Gen Z consumers
Industry leader with Millennial and Gen Z consumers Continuously engaging with consumers to enhance their experience 5
Slide 6: Increasing Awareness
Increasing Awareness Continued to scale social-first content Focused on key influencer content for the wedding season, driving millions of views TikTok Influencers Leveraging Influencers and Partnerships 6
Slide 7: Beautifully Designed, Trend Leading, Distinctive, Personalized Products
BEAUTIFULLY DESIGNED, TREND LEADING, DISTINCTIVE, PERSONALIZED PRODUCTS Strong growth in Wedding Bands driven by our growing assortment of unique men’s and women’s designs Continued robust growth in Fine Jewelry 7
Slide 8: Expanding our showroom footprint
Expanding our showroom footprint with openings in St. Louis, Palo Alto, Santa Monica, and Baltimore, bringing total number of showrooms to 25 Showroom strategy continues to perform well, driving significant metro revenue uplift post opening Will nearly double showroom leases by year end 8
Slide 9: Seamless, frictionless consumer experiences
Seamless, frictionless consumer experiences across digitally native and showroom environment Showroom experience and formats that enhance customer engagement Industry-leading features that optimize consumers’ experiences online Online waitlist to provide convenient appointment booking 9
Slide 10: Launching trend-leading products for holiday gifting
Launching trend-leading products for holiday gifting, engagements, and self-purchase Collections include: cocktail rings, new and expanded fair-mined assortment, a new art deco- inspired bridal collection, and the expansion of our Tacori collection 10
Slide 11: 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 11
Slide 12: Q3 Net Sales, Total Orders, AOV
NET SALES ($MILLIONS) TOTAL ORDERS (in THOUSANDS) AOV $3,301 $3,013 $111.4 37.0 $95.2 28.9 Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q3 2021 Q3 2022 SALES ORDERS GROWTH GROWTH 12
Slide 13: Q3 Gross Margin and Adjusted EBITDA
GROSS MARGIN ($MILLIONS) ADJUSTED EBITDA ($MILLIONS) 54.7% $13.6 50.4% $10.0 Q3 2021 Q3 2022 Q3 2021 Q3 2022 YoY Q3 2022 GROWTH ADJUSTED EBITDA MARGIN 13
Slide 14: Nine Months Net Sales, Total Orders, AOV
NET SALES ($MILLIONS) TOTAL ORDERS (in THOUSANDS) AOV $3,280 104.7 $320.3 $3,058 $258.3 78.7 YTD September 2021 YTD September 2022 YTD September 2021 YTD September 2022 YTD September 2021 YTD September 2022 SALES ORDERS GROWTH GROWTH 14
Slide 15: Nine Months Gross Margin and Adjusted EBITDA
GROSS MARGIN ($MILLIONS) ADJUSTED EBITDA ($MILLIONS) $34.6 52.7% 48.4% $28.0 YTD September 2021 YTD September 2022 YTD September 2021 YTD September 2022 YoY NINE MONTHS 2022 GROWTH ADJUSTED EBITDA MARGIN 15
Slide 16: Net Sales and Adjusted EBITDA
NET SALES ADJUSTED EBITDA NET SALES ADJUSTED EBITDA 16
Slide 17: Appendix
Appendix
Slide 18: Adjusted EBITDA and Adjusted EBITDA Margin
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN Three months ended Nine months ended September 30, September 30, (Unaudited and $ in 000’s) 2022 2021 2022 2021 Net income, as reported $5,719 $3,962 $12,839 $14,847 Interest expense $778 $1,912 $3,700 $5,786 Income tax expense $180 $23 $389 $23 Depreciatio