Brilliant Earth Group, Inc. · NASDAQ:BRLT
Brilliant Earth — Sidoti Micro Cap Conference (August 2024)
23 slides from Brilliant Earth's conference presentation, Aug 14, 2024
Slide 1: Sidoti Micro Cap Conference
Sidoti Micro Cap Conference August 14, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This Presentation contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Sectio
Slide 3: Company Overview
Company Overview 3
Slide 4: 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 5: Industry Transforming History and Growth-Focused Future
Industry Transforming History and Growth-Focused Future Brilliant Earth has served consumers in all U.S. states and over 50 countries 2022 2024 Published Sustainability Jane Goodall Report partnership and collection 2005 2008 2013 2017 2020 Jade Trau partnership Founded in San Early adopter >$25m in
Slide 6: Brilliant Earth's Competitive Advantages
Brilliant Earth’s 1 VAST INDUSTRY THAT IS RIPE FOR DISRUPTION Competitive Advantages 2 AGILE BUSINESS MODEL THAT CAN SWIFTLY ADAPT 3 USING DATA TO INFORM DECISION-MAKING ASSET LIGHT MODEL NOT BURDENED BY HOLDING EXCESS INVENTORY 4 OMNICHANNEL MODEL PROVIDES A JOYFUL, SEAMLESS SHOPPING EXPERIENCE 5 O
Slide 7: Proven Ability to Deliver Profitable Growth
Proven Ability to Deliver Profitable Growth NET SALES ($ MILLIONS) ADJUSTED EBITDA1 ($ MILLIONS) $50 $440 $446 $39 $380 $28 $26 $252 2020 2021 2022 2023 2020 2021 2022 2023 45% 49% 53% 58% 11% 13% 9% 6% GROSS PROFIT MARGIN % ADJUSTED EBITDA MARGIN % 1 See Appendix for a reconciliation from Net Incom
Slide 8: Q2 2024 Results
Q2 2024 Results 8
Slide 9: Q2 2024 Highlights and Key Achievements
Q2 2024 Highlights and Key Achievements $105.4M in net sales, -4% y/y, within guidance range 3.6% y/y total order growth and 17% y/y growth in repeat orders Average Selling Price (ASP) up y/y across product lines, including engagement rings, wedding bands, and fine jewelry Gross margin of 60
Slide 10: Second Quarter & Six Months Fiscal Year 2024 Financial Summary
Second Quarter & Six Months Fiscal Year 2024 Financial Summary Q2 NET SALES ($ 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 2024 Priorities and Outlook
2024 Priorities and Outlook 16
Slide 17: 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 18: 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 18
Slide 19: 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 19
Slide 20: Appendix
Appendix 20
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN Year ended December 31, (Unaudited and $ in 000’s) 2023 2022 2021 2020 Net income, as reported $4,734 $19,025 $26,256 $21,576 Interest expense 5,128 4,658 7,589 4,942 Income tax benefit (431) (168) (316) - Depreciation expen
Slide 22: 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 23: Brilliant Earth
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