Brilliant Earth Group, Inc. · NASDAQ:BRLT
Brilliant Earth — Q3 2023 Earnings Presentation
16 slides from Brilliant Earth's earnings presentation, Nov 10, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results November 9, 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: 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 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 moderni
Slide 4: Highlights and Key Achievements
Highlights and Key Achievements 9 consecutive quarters of positive Adjusted EBITDA as a public company, validating our ability to deliver sustainable profitability 2.5% Q3 2023 revenue growth year-over-year and a 22% four-year CAGR, outperforming the industry in Q3 by an estimated more than 1000
Slide 5: Third Quarter & Nine Months Fiscal Year 2023 Financial Results
Third Quarter & Nine Months Fiscal Year 2023 Financial Results Q3 NET SALES ($MILLIONS) Q3 GROSS MARGIN Q3 ADJUSTED EBITDA ($MILLIONS) ($MILLIONS) $111.4 $114.2 58.5% 54.7% $60.9 $66.8 $7.6 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 6.7% OF NET SALES +2.5% YoY +380 bps YoY GROWTH NINE MONTHS NET SALES
Slide 6: 2023 Priorities
2023 Priorities Continue on our 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 6
Slide 7: Growing Brand Reach and Resonance
Growing Brand Reach and Resonance First-ever national brand campaign with major multi-city takeover Engaged Emmy-nominated actress Camila Morrone, in our first “face of” the campaign partner More celebrities, including Meghan Markle and Miley Cyrus, are wearing Brilliant Earth jewelry Unaide
Slide 8: Beautifully Designed, Trend-Leading, Distinctive, Personalized Products
Beautifully Designed, Trend-Leading, Distinctive, Personalized Products The Sol Collection Logan Hollowell Collaboration Introduced a groundbreaking new collection, The Sol Collection, featuring eight signature pieces crafted with recycled gold, silver, and Beyond Conflict Free diamonds Strong g
Slide 9: Continued Uplift from Showroom Expansion
Continued Uplift from Showroom Expansion Opened 5 new showrooms in Q3 2023 Detroit including our first 3 indoor mall locations Exceeded our 2023 goal with 37 total showrooms now open Cluster locations with multiple showrooms in a single metro open at least one year are yielding strong incremen
Slide 10: Power of Omnichannel Model
Power of Omnichannel Model Digital platform and efficient store footprint allow faster new product launches with less inventory than others in the industry Differentiated business model has produced sales growth outpacing the jewelry industry by an estimated more than 1000 basis points in Q3* *B
Slide 11: Brilliant Earth's Competitive Advantages
Brilliant 1 Earth’s 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 12: Third Quarter and Nine Months 2023 Financial Results
Third Quarter and Nine Months 2023 Financial Results Q3 TOTAL ORDERS Q3 AOV NINE MONTHS TOTAL ORDERS NINE MONTHS AOV (IN THOUSANDS) (IN THOUSANDS) 121.6 $3,058 $3,013 104.7 $2,647 43.2 $2,645 37.0 Q3 2022 Q3 2023 Q3 2022 Q3 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 +17% ORDER GROWTH +16% ORDER GROWTH
Slide 13: Long-Term Growth Targets
Long-Term Growth Targets 1 NET SALES GROWTH RATE: HIGH 20s TO LOW 30s % 2 GROSS MARGIN: MID 50s % 3 MARKETING % OF NET SALES: MID TO HIGH TEENS 4 ADJUSTED EBITDA MARGIN: 15-20%+ 13
Slide 14: Our 2023 Outlook
Our 2023 Outlook Fiscal Year $444m–$450m NET SALES $22m–$24m ADJUSTED EBITDA 14
Slide 15: Appendix
Appendix 15
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three months ended Nine months ended ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN September 30, September 30, (Unaudited and $ in 000’s) 2023 2022 2023 2022 Net income, as reported $1,998 $5,719 $2,793 $12,839 Interest expense 1,322 778 3,808 3,700 Income tax expense 9
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