Brilliant Earth (BRLT) - 2024 Q4 - Annual Results

Financial Performance - Delivered Q4 2024 Net Sales of $119.5 million, achieving the high end of guidance, and full year Net Sales of$ 422.2 million[5] - Generated Q4 2024 GAAP Net Income of $2.6 million, a 35.3% increase from$ 1.9 million in Q4 2023, and full year Net Income of $4.0 million[5] - Net sales for the year ended December 31, 2024, were$ 422.161 million, a decrease of 5.4% from $446.382 million in 2023[23] - Net income for 2024 was$ 3.994 million, compared to $4.734 million in 2023, indicating a decline of 15.6%[23] - Basic earnings per share for 2024 were$ 0.04, down from $0.05 in 2023, while diluted earnings per share decreased from$ 0.04 to $0.03[23] - The company reported a net income margin of 0.9% for 2024, compared to 1.1% in 2023[27] Growth Metrics - Total orders grew by 10% year-over-year in Q4 and 7% for the fiscal year 2024, with repeat orders increasing by 18% in Q4 and 17% for the year[5] - Expanded Gross Margin by 90 basis points to 59.6% in Q4 and by 270 basis points to 60.3% for the fiscal year compared to prior year periods[5] - Achieved Adjusted EBITDA of$ 6.9 million in Q4 2024, a 31.1% increase from $5.3 million in Q4 2023, and$ 21.1 million for the fiscal year[5] - Adjusted EBITDA for the year ended December 31, 2024, was $21.118 million, down from$ 26.182 million in 2023, reflecting a margin of 5.0%[27] Cash and Assets - Ended fiscal year 2024 with $106 million in net cash, the highest position since 2021[5] - Total assets increased to$ 281.245 million in 2024 from $273.583 million in 2023, reflecting a growth of 2.4%[24] - Total liabilities decreased to$ 171.863 million in 2024 from $176.127 million in 2023, a reduction of 2.4%[24] - Cash and cash equivalents increased to$ 161.925 million in 2024, up from $155.809 million in 2023, showing a growth of 3.6%[24] Strategic Initiatives - Expanded retail showroom portfolio to 40 locations, including new showrooms in Boston Seaport and Nolita, New York City[5] - Focus on product innovation, brand amplification, and customer experience to drive sustainable growth in the future[3] - The company plans to continue expanding its market presence and introducing new products to enhance customer engagement and sales growth[20] Taxation and Contributions - Brilliant Earth Group, Inc. is subject to U.S. Federal income taxes, in addition to state and local taxes on its allocable share of any net taxable income of Brilliant Earth, LLC[32] - Acquisition of LLC units by Brilliant Earth Group, Inc. causes all of the taxable income currently recognized by the members of Brilliant Earth, LLC to become taxable to the Company[32] - For the year ended December 31, 2023, costs included a$ 1 million charitable contribution[32]