Q1 FY 2022 EARNINGS WEBCAST AUGUST 4, 2021
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Q 1 F Y 2 0 2 2 E A R N ING S W EBC AS T
A U GU S T 4 , 2 021
SKIN
As a reminder, this call contains forward-looking statements that are based
on management’s expectations – including those relating to the category
trends and longer-term outlook – and are subject to known and unknown
risks and uncertainties, and therefore, actual results may differ materially.
Important factors that may cause actual results to differ are detailed
in today’s press release and the company’s SEC filings.
In addition, the company’s presentation today includes information
presented on a non-GAAP basis. We refer you to today’s press release for
a reconciliation of the differences between the non-GAAP presentation
and the most directly comparable GAAP measures.
TARANG P. AMIN
CHAIRMAN &
CHIEF EXECUTIVE OFFICER
TODAY ’S AGENDA 1 2 Q1 FY 2022 RESU LTS OUTLOOK
+ 50 % $ 97 MILLION Q1 FY 2022 NET SALES
50%
TEN CONSECUTIVE QUART ERS OF NET SALES GROWTH
+24%
+16%
+11% +10%
+7% +8% +8% +7%
+3%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
FY 19 FY 20 FY 20 FY 20 FY 20 FY 21 FY 21 FY 21 FY 21 FY 22
NET SALES GROWTH BY QUARTER, EXCLUDING E.L.F. STORES (CLOSED IN FEBRUARY 2019)
+ 40 % $ 22 MILLION Q1 FY 2022 ADJUSTED EBITDA
C O L OR C OS M E T I C S C ATEG ORY
S A L E S T R E N D VS . 2 01 9 LE VE LS
8%
2%
0% -2% -2% -2%
-8% -9% -9%
-10%
-13%
-14% -14%
-15% -15%
-15% -17%
-19% -19% -19%
-20%
-23%
-29%
-30%
FEB 20 APR 20 JUN 20 AUG 20 OCT 20 DEC 20 JAN 21 MAR 21 MAY 21
YOY $ SALES GROWTH VS. 2019 LEVELS, NIELSEN XAOC ENDING 6/19/2021, COLOR COSMETICS CATEGORY
DI G I TA L C O R E VA L UE MO VING AT STR EN GT H P R O PO S I T I ON E .L.F. SPE ED
SAL ES TREND VS . 2019 LEVELS:
TOP 5 COLOR COS MET ICS B RANDS
E.L.F.
+28%
30
22.5
15
7.5
0
MAYBELLINE
-7.5 0% L’OREAL
-5%
-15 COVERGIRL
-11%
REVLON
-22.5 -16%
Maybelline L'Oreal Cover Girl Revlon e.l.f.
NIELSEN XAOC LATEST 12 WEEKS ENDING 6/19/2021, COLOR COSMETICS CATEGORY5.5%
MARKET SHARE
+20 BPS
NIELSEN XAOC LATEST 12 WEEKS ENDING 6/19/2021, COLOR COSMETICS CATEGORYSHARE TREND (BPS) VS. 2019 LEVELS:
TOP 5 COLOR COS MET ICS B RANDS
E.L.F.
+120
30
22.5
15
7.5
0
MAYBELLINE
-7.5 0 L’OREAL
-50
-15 COVERGIRL
-110
REVLON
-22.5 -130
Maybelline L'Oreal Cover Girl Revlon e.l.f.
NIELSEN XAOC LATEST 12 WEEKS ENDING 6/19/2021, COLOR COSMETICS CATEGORYEXEC UTING ON OU R FIVE STRAT EGIC IMPERATIVES
DRIVE DRIVING COST
STEP UP LEADING
BRAND P R O D U C T- S AV I N G S
D I G I TA L I N N O VAT I O N
DEMAND IVITYDRI VE BR AND DEMA ND
NEW
~ 12M
FOLLOWERS
+11% G ROWTH
INCLUDES SOCIAL MEDIA FOLLOWERS AND BEAUTY SQUAD MEMBERS. GROWTH RELATIVE TO PRIOR YEARMUSIC GAMING
TRANSCENDING
BEAUTY
BOUNDARIES
ORIGINAL CONTENT BRAND-ON-BRAND
CREATION PARTNERSHIPSGAMING
70%
PLAY VIDEO GAMES
65%
WATCH GAMERS PLAY
E.L.F. COSMETICS ONLINE SOCIAL SURVEYFIRST MAJ OR BEAU TY B RAND T O LAUNCH
A BRANDED CHANNEL ON T WITCH~17B VIEWS
CONTINUING TO EXPLORE NEW FRONTIERS
THE F IRST CRY PTO COSMET ICS COLLECTION
THE F IRST BEAUTY BRAND ON WATTPA D
×
#EYESL IPSF IERC E WRITE-A-T HON CHA LL ENGETEST ING SNAPC HAT’S NEW AU GM ENTED REALITY FILTERS
BRAND-BUI LDIN G EFFORTS CONT INUE TO WIN AWARDS
#2
GEN-Z
FAVORITE
2021
#9
2019
KYRA GEN Z STATE OF BEAUTY REPORTMOST INNOVATIVE
CMOS IN THE WORLD
KORY MARCH ISOTT O,
E.L.F. BEAUTY CMO &
PRES IDE NT, KEYS S OULCARE
KENNY MITCHELL,
E. L.F. BEAUTY BOARD ME MB ER~6B
PRESS IMPRESSIONS
9 BASICS,
1 2 OUTFITS
IMMER DAS RI
RICH
CHTTIGE
FÜR ALLE AN
ANL ÄSSE EINFACH
FRISCHER
AUSSEHEN!
SOMMER LEICHTE MAKE-U
AN HEIS
EISS
MAKE-UPS
SEN TAGEN
SHOPPER
DA PASST
ALLES REIN! ALICIA
KEYS
WAS DER
MEHR STYLE SÄNGERIN
BEIM SPORT POWER
GIBT
DAS CO
COOLSTE FÜ FÜR
C YCL
YCLIING,
YOGA & L AUFEN
WOW
OUTFITS
FÜR JEDEN TAG
LUFTIGE KLEIDER, SCHICKE BERMUDAS,
HIPPE PAREOS, LEICHTE BLUSEN,
SEXY ASYMMETRIE-TOPS U.V.M.BODY CARE LAUNCH S OCIAL POSTS >11M VIEWS
NEW LOOK, NEW AND IM PROVED FORM ULAS,
AND NEW PROD UCTSNEW PACKA GING
#1
SHARE OF VOICE
CISION. SHARE OF VOICE BASED ON # OF MEDIA MENTIONS FOR BRANDS IN CLEAN BEAUTY COMPETETIVE SET.MAJOR STEP U P IN
DIGITALTRIPLE
DI GIT
GROW TH
Q1 FY2022 DIGITAL CONSUMPTION GROWTH ON 2-YEAR STACK BASIS VS. 2019 LEVELSDIG ITAL COMMERCE PENETR ATION 8% 13 % Q1 Q1 FY 2020 FY 2022
>50%
NEW CONSUMERS
SHOPPING
ELFCOSMETICS.COM
% OF NEW CONSUMERS PURCHASING ON ELFCOSMETICS.COM, Q1 FY 2022E.L.F. C OS METICS BEAUTY SQUAD L OYA LTY PROGRAM
~2.6M
MEMBER S
> 30 %
GR OWTH
~ 70 %
OF SA LES ON ELFCOSMETIC S.COM
BEAUTY SQUAD LOYALTY MEMBERS AS OF 6/30/2021 | Q1 FY 2022 GROWTH IN TOTAL ENROLLMENT VERSUS PYLAUNCHED KEYS SOU LCARE LOYALT Y PROGRAM
ADD VOTING FROM HOMEPAGE FROM EKTALEADIN G INNOVATIO N
OUR SU PER PO WERS CRUELTY PREMIUM ACCESSIBLE BROAD FREE QUALITY PRICES APPEAL
STRENG TH IN C ORE SEGMENT S
#1 #1 #2 #2 #2
BRUSHES PRIMERS CONCEALER EYEBROW SPONGES
$ SHARE $ SHARE $ SHARE UNIT SHARE $ SHARE
NIELSEN XAOC LATEST 52 WEEKS ENDING 6/19/2021,
EXCLUDES PRIVATE LABELLAUNC HED PU TTY BRON ZER
LAUNC HED ACNE F IGHTING PU TT Y PRIM ER
LAUNCHED L IMITED-EDITION ELECTRIC MOOD COLLECTION
SKINCARE F OCU S
LAUNCHED HOLY HY DRATION FACE CREAM WITH SPF 30
KEYS SOULCARE FURTHER FUELS OUR M OMENTUM IN SKINCARE
4 . 9 O U T O F 5 S TAR S O N KE YS SO U LCA RE .CO M
***** ***** ***** *****
"ABSOLUTELY LOVE IT! IT “DOES NOT LEAVE MY “THE BALM “THIS CREAM IS
IS SO CALMING AND SENSITIVE SKIN DRY IS THE PERFECT. IT LEAVES MY
RELAXING. I MAY NEED A AFTER USING IT. BOMB!” FACE SOFT, HYDRATED,
CANDLE SUBSCRIPTION.” THANK YOU!” AND REFRESHED.”LAUNCHED KEY S S OULCARE START ER SET S
EX PAN D ED P R O D U C T OF FE R I N GS INTO A NE W C ATE G O RY:
B O D Y C A RE
RENEWING BODY + HAND WASH RICH NOURISHING BODY CREAM SACRED BODY OIL
$24 $36 $25DRIVING PRODU CTIVITY
E.L.F. COS METICS SPACE EXPANSION FAL L 2 0 2 1 S P R I NG 20 2 2 SPRING 2 0 22
GLOBAL
RETAIL
STRAT EGY
57CONFIDENTIAL 58
CONFIDENTIAL 59
CONFIDENTIAL 60
CONFIDENTIAL 61
W3LL PEOPL E SPAC E EXPANSION IN SPRING 2022
COST SAVIN GS
NAVIGATING GLOBAL CON TAINER IMBALANCE
STRATEGIC FRAMEWORK
LEADING WITH PURPOSE
e.l.f. Beauty stands with every
eye, lip, face and paw.
ENCOURAGE EMPOWER EMBODY
SELF-EXPRESSION OTHERS OUR ETHICSFORTUNE BEST WORKPLACES IN NEW YORK 2021, SMALL/MEDIUM CATEGORY
LAUN CHED NEW SOCIAL IM PACT SEC TION OF E.L.F. BEAUTY WEBSITE
E.L.F. BEAUTY MISSION BEST OF BEA UT Y ACCES SI BLE TO EVERY EYE, LI P A ND FA CE
PORTFOLI O OF COMPLEMENTARY YET DIST INCT BR AN DS
ACCESSIB LE DISTRIBUTION PRESTIGE PRICE
EXC LUSIVE D ISTRIBU TION
~$ 20-4 0 AUR
~$20 AUR
~$ 9 AUR
~$5 AU R MASS PRICEMANDY FIELDS SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER
+50 %
NET SALES GROWTH
Q1 FY 2022NET SAL ES DRIVERS
BR AN D BETTER STIMU LU S
F U L F IL L M E N T U LTA BE A UTY &
PO R TFOL IO RE LAT ED
R AT E S INTE RNATIO NAL
M O ME N TU M SP E ND ING
Q1 FY 202264 %
GROSS MARGIN
Q1 FY 2022GR O S S MA R G I N DRIVE RS
M AR G IN
COST TRA NSPORT- C HA NNEL
ACCRETI V E FX
S AVI N GS ATION C O STS M IX
MI X
Q1 FY 2022ADJ USTED SG&A 51 % 47 % Q1 Q1 FY 2021 FY 2022
MARKETING & DIGITAL
INVESTMENT
16 %
11 %
Q1 Q1
FY 2021 FY 202222 %
MARGIN
$ 22M
ADJUSTED EBITDA
Q1 FY 2022AD J US T ED N E T I N C OM E A DJU STED EP S
$14M $0.27
$9M $0.17
Q1 Q1 Q1 Q1
FY 2021 FY 2022 FY 2021 FY 2022S T R O N G L I QU IDITY
> 130
$
MILLION
C AS H O N H A N D + R E VO LV ING C REDIT FA CILITY
Q1 FY 2022C A S H B A L ANC E $ 54 M $ 63 M Q1 FY 2021 Q 1 FY 2 02 2
INVENTORY $53M $55M Q1 Q1 FY 2021 FY 2022
INVENTORY DRIVERS
FOR Q3 FY 2022
H I GH E R K EY S C ONTINU E D
L ON GE R
T R A N S P OR TAT I O N SO ULC A RE & BU SINESS
LEA D T I ME S
COSTS W E LL P EO PLE MO ME NTU MC A S H P R IO RITIES I NV E S T I N G I N SU P P ORTING F IV E S T R AT E GI C O UR STRATEG IC I M P E RAT I VE S E XTE NSIO NS
RAISING FY 202 2 GUIDANCE
STRONG RO I
DRIVI NG $ ALES
DI GITAL IN ITIATIVES
+
MARKETINGM A R K E T I N G & DIG ITA L
I N V E S T M ENT
15-17 %
OF NET
SALES
FY 2022 OUTLOOKINCRE ASED TOP-L INE OU TLOOK
I N CR EA S E D S PA C E BU SINESS
I N VE S TM E N T S GA IN S M OM E NTU M
FY 2022 COMMENTARYNET SALES ADJUSTED EBITDA
+12% TO 14% $66.5M TO $68.0M
FISCAL 2022
OUTLOOK
ADJUSTED EPS ADJUSTED NET INCOME
$0.65 TO $0.68 $36.0M TO $37.5M2 0 2 1 H O L I D AY P ROG RAM
-$6M
NET SALES
IMPACT
FY 2022 OUTLOOKA D J U S T E D EBITDA
+9-11%
YOY
GR OWTH
FY 2022 OUTLOOKGROSS MARG IN DRIVERS
M AT E R I A L A N D
FX PRICE C OST
T R A N S P OR TAT I O N
H EA DWI N D S INC RE A SES SAVING S
COSTS
FY 2022 COMMENTARYSG& A LEVERAGE
NON- SC ALING K EY S
MARKETING SO UL CA RE A ND
SPEND W E LL PE OP LE
FY 2022 COMMENTARYLONG- TERM EC ONOMIC MOD EL
MID TO OUTPACE
HIGH SINGLE SALES
DIGITS GROWTH
NET SAL ES CAGR ADJ UST ED EBITDA CAGR
CAGR REPRESENTS EXPECTATIONS OVER A 3 YEAR TIME FRAME, THROUGH FY 2024I N C L U S IV E . A C C E S S I B LE . CRU E LTY FREE .
SKINTHANK YOU
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