1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Metrics vs Peers
3. Price Chart
4. Valuation
5. Offer Terms
6. Financial Statements
Discussion
Research report, target price, DCF and forensic scores are for subscribers. View plans
Symbol
BRLT
Listed on
2021-09-23
Sector
Consumer
Subsector
Textiles, Apparel & Luxury Goods
Offer Price
$12.00
first filed $14.00–$16.00Shares Offered
8.33M
94.63M
$1.1B
8.8%
Implied Upside vs Midpoint
Description
Our Mission To create a more transparent, sustainable, and compassionate jewelry industry. Brilliant Earth is an innovative, digital-first jewelry company, and a global leader in ethically sourced fine jewelry. We offer exclusive designs with superior craftsmanship and supply chain transparency, delivered to customers through a highly personalized omnichannel experience. Our mission is to create a more transparent, sustainable, and compassionate jewelry industry, and we are proud to offer customers distinctive and thoughtfully designed products that they can truly feel good about wearing. Our core values resonate strongly across many demographics and particularly with values-driven Millennial and Gen Z consumers. Our extensive collection of premium-quality diamond engagement and wedding rings, gemstone rings, and fine jewelry is conceptualized by our leading in-house design studio and then brought to life by expert jewelers. From our award-winning jewelry designs to our responsibly sourced materials, at Brilliant Earth we aspire to exceptional standards in everything we do. We were founded in 2005 as an e-commerce company with an ambitious mission and a single showroom in San Francisco. We have rapidly scaled our business while remaining focused on our mission and elevating the omnichannel customer experience. Through our intuitive digital commerce platform and personalized individual appointments in our showrooms, we cater to the shopping preferences of tech-savvy next-generation consumers. We create an educational, joyful, and approachable experience that is unique in the jewelry industry. Today, Brilliant Earth has sold to consumers in all U.S. states and over 50 countries, and has served over 370,000 customers through our e-commerce platform and 14 showrooms. Throughout our history, we have invested in technology to create a seamless customer experience, inform our data-driven decision-making, improve efficiencies, and advance our mission. Our technology enables dynamic product visualization, augmented reality try-on, blockchain-enabled transparency, and rapid fulfillment of our flagship Create Your Own product. We leverage powerful data capabilities to improve our marketing and operational efficiencies, personalize the customer experience, curate showroom inventory and merchandising, inform real estate decisions, and develop new product designs that reflect consumer preferences. We believe the Brilliant Earth digital experience drives higher satisfaction, engagement, and conversion both online and in-showroom. Our financial model is compelling: high net sales growth, substantial first order profitability, and attractive margins. We are very capital efficient: our made-to-order capabilities and virtual inventory model generate attractive inventory turns and negative working capital. We have achieved strong financial performance and rapid growth since our founding with minimal outside funding, and believe we are in the early stages of realizing our potential in a massive market opportunity: • grew net sales to $251.8 million in 2020, compared to $201.3 million in 2019; • achieved net income of $21.6 million in 2020, compared to $(7.8) million in 2019; • achieved net income margin of 8.6% in 2020, compared to (3.9%) in 2019; • grew Adjusted EBITDA to $27.5 million in 2020, compared to $(4.5) million in 2019; and • improved Adjusted EBITDA margin to 10.9% in 2020, compared to (2.2%) in 2019. Our performance in the first half of 2021 continues to demonstrate our ability to succeed in this market: • grew net sales to $163.0 million, up 77.7% from $91.8 million in the first half of 2020; • achieved net income of $10.9 million, up from $0.2 million in the first half of 2020; • achieved net income margin of 6.7%, compared to 0.2% in the first half of 2020; • grew Adjusted EBITDA to $21.0 million, up 600% from $3.0 million in the first half of 2020; and • improved Adjusted EBITDA margin to 12.9%, compared to 3.3% in the first half of 2020. --- Brilliant Earth Group, Inc., was incorporated as a Delaware corporation on June 2, 2021. Our corporate headquarters are located at 300 Grant Avenue, Third Floor, San Francisco, CA 94108. Our telephone number is (800) 691-0952. Our principal website address is www.brilliantearth.com.
▼ More expensive than its peers on 1 of 2 valuation measures
| Metric | Value | Peer median | Among peers | Trend |
|---|---|---|---|---|
EV / revenue | 4.5x | 4.1x | ||
Price / earnings | 52.6x | 28.4x | ||
Revenue growth | 25.1% | 20.8% | ||
Gross margin | 44.6% | 35.9% | ||
Operating margin | 10.6% | 3.7% | ||
Net margin | 8.6% | 1.7% | ||
Free cash flow margin | 10.4% | 2.8% | ||
Rule of 40 | 35.9% | 25.2% | ||
Net cash / market cap | 0.4% | 0.3% | ||
Current ratio | 2.14 | 1.35 | ||
Stock comp / revenue | 0.0% | 0.6% | ||
9 premium metrics: DCF value / price, Growth the price needs: how common, Last 12 months vs full year and 6 more Unlock | ||||
▼ Priced at $12.00, 20% below the midpoint of the first filed range ($14.00–$16.00, 2021-09-14).
Each filing is plotted ahead of the first trading day on the price chart.
| Filed | Form | Price range | Price | Shares offered | Deal size |
|---|---|---|---|---|---|
| 2021-09-14 | S-1/A | $14.00–$16.00 | — | 16,666,667 | $250.0M |
| 2021-09-24 | 424B4 | — | $12.00 | 8,333,333 | $100.0M |
Brilliant Earth Group, Inc. income statement and balance sheet, FY Dec 2021 to FY Dec 2025, as reported in SEC filings.
| Metric | FY Dec 2021after listing | FY Dec 2022after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Revenue | $380M | $440M | $422M | $437M |
| Gross profit | $187M | $234M | $254M | $252M |
| Operating income | $40.1M | $23.3M | $3.4M | ($5.4M) |
| Net income | $1.5M | $2.1M | $541K | ($3.6M) |
| Revenue growth | — | 15.7% | −4.0% | 3.6% |
| Gross margin | 49.3% | 53.3% | 60.3% | 57.5% |
| Operating margin | 10.6% | 5.3% | 0.8% | −1.2% |
| Net margin | 0.4% | 0.5% | 0.1% | −0.8% |
| Metric | FY Dec 2021after listing | FY Dec 2022after listing | FY Dec 2024after listing | FY Dec 2025after listing |
|---|---|---|---|---|
| Total assets | $218M | $263M | $281M | $201M |
| Total liabilities | $135M | $169M | $172M | $121M |
| Total equity | $82.8M | $93.1M | $109M | $79.6M |
| Cash & equivalents | $173M | $155M | $162M | $79.1M |