Brilliant Earth Group, Inc. · NASDAQ:BRLT
Brilliant Earth — Q1 2024 Earnings Presentation
21 slides from Brilliant Earth's earnings presentation, May 9, 2024
Slide 1: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results May 9, 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 Q1 2024 Results 7 2024 Priorities and Outlook 15 Appendix 19 CONFIDENTIAL 3
Slide 4: Company Overview
Company SS < Overview
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: Q1 2024 Results
Q1 2024 Results 7
Slide 8: Q1 2024 Highlights and Key Achievements
Q1 2024 Highlights and Key Achievements $97.3M in net sales, approximately flat year-over-year 13.7% y/y total order growth and over 20% y/y growth in repeat orders Average Selling Price (ASP) up y/y across product lines including engagement rings, wedding bands, and fine jewelry Gross margi
Slide 9: First Quarter 2024 Financial Summary
First Quarter 2024 Financial Summary Q1 NET SALES ($ MILLIONS) Q1 GROSS MARGIN Q1 ADJUSTED EBITDA ($ MILLIONS) ($ MILLIONS) $97.7 $97.3 59.9% $5.1 54.9% $53.7 $58.3 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 10: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results Q1 AVERAGE ORDER VALUE Q1 TOTAL ORDERS Strong order growth demonstrates (IN THOUSANDS) effectiveness in customer acquisition and 40.5 retention, brand resonance and strong 35.6 omnichannel performance across our $2,742 products $2,402 ASP for engagement rings
Slide 11: Continued Brand Success
Continued Brand Success Launched our partnership with legendary conservationist Dr. Jane Goodall in support of the Jane Goodall Institute Executed Valentine’s Day ‘Real Love’ campaign featuring customer love stories resulting in over 50M media impressions Drove strongest quarter ever in social
Slide 12: Beautifully Designed, Trend-Leading, Distinctive, Personalized Products
Beautifully Designed, Trend-Leading, Distinctive, Personalized Products Strong fine jewelry performance with 45% y/y growth in the two weeks prior to Valentine’s Day Logan Hollowell Collaboration Double-digit y/y growth in Q1 in wedding and anniversary rings Leading diamond origin transparency
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 Continue to see positive, incremental growth i
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 C
Slide 17: 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 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 CONFIDENTIAL 18
Slide 19: Appendix
Appendix 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN Three months ended March 31, (Unaudited and $ in 000’s) 2024 2023 Net income (loss), as reported $1,067 $(440) Interest expense 1,214 1,206 Income tax expense (benefit) 73 (13) Depreciation expense 1,203 951 Amortization of
Slide 21: CONFIDENTIAL
Y BRILLIANT EARTH™ CONFIDENTIAL
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