Slide 1: Fourth Quarter and Fiscal Year 2022 Financial Results
Fourth Quarter and Fiscal Year 2022 Financial Results March 15, 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: 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: Q4 and Full Year 2022 Highlights
Q4 NET SALES ($MILLIONS) Q4 TOTAL ORDERS (IN THOUSANDS) Q4 GROSS MARGIN EXPANSION Q4 ADJUSTED EBITDA ($MILLIONS) ($MILLIONS) $121.9 $119.6 44.9 51.1% 54.7% 39.5 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 OF NET SALES YoY GROWTH FULL YEAR 2022 NET SALES FULL YEAR 2022 TOTAL ORDERS FULL YEAR 2022
Slide 5: Digital-first brand with strong Gen-Z and Millennial resonance
Digital-first brand with strong Gen-Z and Millennial resonance Online searches for Brilliant Earth reached an all-time high in Q4 2022 Number of customers served in 2022 grew ~25% year-over-year 5
Slide 6: Increasing Awareness
Increasing Awareness Key influencer-led campaigns Over 100m social media video views in 2022 Nearly 70% increase in media impressions year over year Leveraging Influencers and Partnerships Mission-Driven Storytelling 6
Slide 7: Beautifully Designed, Trend Leading, Distinctive, Personalized Products
BEAUTIFULLY DESIGNED, TREND LEADING, DISTINCTIVE, PERSONALIZED PRODUCTS ~70% y/y growth in estimated female self-purchase orders during 2022 Successful launches drove strong growth in Fine Jewelry Launched new collections and collaborations, including Men’s Fine Jewelry and Fashion rings Con
Slide 8: Expanded our showroom footprint
Expanded our showroom footprint, adding 10 new showrooms during the year and bringing the total number of showrooms to 25 Launched 3 new showrooms in Q4 2022 - Palo Alto, Santa Monica, and Baltimore Showrooms opened at least one year have generated ~100% metro bookings growth in the first year
Slide 9: Seamless, frictionless consumer experiences across digital and showrooms
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 9
Slide 10: Path to become the premier global jewelry brand
Continue on 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 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 DATA INFORMS DECISION-MAKING ASSET LIGHT MODEL NOT BURDENED BY HOLDING EXCESS INVENTORY OMNICHANNEL MODEL PROVIDES A JOYFUL, SEAMLESS SHOPPING EXPERIENCE VALUES THAT STRONGLY RESONATE WITH OUR CUSTOMERS 11
Slide 12: Q4 Net Sales, Total Orders and AOV
NET SALES ($MILLIONS) TOTAL ORDERS (IN THOUSANDS) AOV $3,088 $121.9 $119.6 44.9 39.5 $2,664 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 ORDERS GROWTH 12
Slide 13: Q4 Gross Margin and Adjusted EBITDA
GROSS MARGIN ($MILLIONS) ADJUSTED EBITDA ($MILLIONS) $15.9 54.7% 51.1% $11.0 Q4 2021 Q4 2022 Q4 2021 Q4 2022 YoY Q4 2022 GROWTH ADJUSTED EBITDA MARGIN 13
Slide 14: Full Year Net Sales, Total Orders and AOV
NET SALES ($MILLIONS) TOTAL ORDERS (IN THOUSANDS) AOV 149.6 $3,216 $439.9 $2,940 $380.2 118.2 2021 2022 2021 2022 2021 2022 SALES ORDERS GROWTH GROWTH 14
Slide 15: Full Year Gross Margin and Adjusted EBITDA
GROSS MARGIN ($MILLIONS) ADJUSTED EBITDA ($MILLIONS) 53.3% 49.3% $50.5 $39.0 2021 2022 2021 2022 YoY FULL YEAR 2022 GROWTH ADJUSTED EBITDA MARGIN 15
Slide 16: 2023 Outlook
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%+ 16
Slide 17: Net Sales and Adjusted EBITDA
NET SALES ADJUSTED EBITDA NET SALES ADJUSTED EBITDA 17
Slide 18: Appendix
Appendix
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN Three months ended Twelve months ended December 31, December 31, (Unaudited and $ in 000’s) 2022 2021 2022 2021 Net income, as reported $6,186 $11,409 $19,025 $26,256 Interest expense $958 $1,803 $4,658 $7,589 Income tax benefit ($557) ($339) ($168) ($316)