Brilliant Earth Group (BRLT) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales were $99.9 million, down 12.5–13% year-over-year but within guidance, with repeat orders up 11% and total orders nearly flat.

• Gross margin expanded by 230 basis points to 60.8%, and adjusted EBITDA was $3.6 million (3.6% margin), exceeding guidance.

• Net loss for Q3 2024 was $1.1 million, compared to net income of $2.0 million in Q3 2023.

• Launched the Jane Goodall fine jewelry collection, the most successful to date, and expanded omnichannel campaigns and showrooms to 40 locations.

• Investments continued in technology, omnichannel expansion, and brand awareness to drive future growth.

Financial highlights

• Q3 2024 net sales: $99.9 million (down 12.5–13% year-over-year); nine months: $302.6 million (down 6%).

• Q3 2024 gross margin: 60.8% (up 230 bps year-over-year); nine months: 60.5% (up 340 bps).

• Q3 2024 adjusted EBITDA: $3.6 million (3.6% margin); nine months: $14.2 million (4.7% margin).

• Q3 2024 net loss: $1.1 million (net loss margin 1.1%); nine months: net income $1.4 million (net income margin 0.5%).

• Average order value in Q3 2024 declined 11.6% to $2,337; total orders decreased 1%.

Outlook and guidance

• Full-year 2024 net sales expected between $410 million and $425 million; adjusted EBITDA guidance raised to $14–$16 million.

• Management believes liquidity is sufficient for at least the next 12 months.

• Plans to continue investing in technology, omnichannel expansion, and international growth.

• Sequential improvement in bookings growth rate, including engagement rings, seen in Q4.

• Medium-term targets: accelerate net sales growth to low teens by 2027, maintain gross margin in high 50s%, decrease marketing as a percentage of net sales starting in 2025, and increase adjusted EBITDA margin to double digits by 2027.