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; repeat orders grew 11% while total orders were 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.

• The Jane Goodall fine jewelry collection launch was the most successful in company history, driving brand engagement.

• Expanded showroom footprint to 40 locations, including new sites in Boston and New York City.

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 year-over-year).

• 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%); adjusted net income: $1.5 million.

• Q3 2024 average order value declined 11.6% to $2,337; total orders decreased 1% year-over-year.

Outlook and guidance

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

• Management expects sufficient liquidity for at least the next 12 months and plans continued investment 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%, reduce marketing as a percentage of sales, and increase Adjusted EBITDA margin to double digits by 2027.

• Macroeconomic headwinds, including inflation and changing consumer spending, may impact future results.