Q4 FY 2021 EARNINGS WEBCAST MAY 26, 2021 - elf Beauty
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Q 4 F Y 2 0 2 1 E A R N ING S WE BC A ST
M AY 2 6 , 2 0 2 1
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 3 Q4 FY 2021 FY 2022 RESULTS RESULTS OUTLOOK
NINE CONSECUTIVE QUARTERS OF NET SALES GROWTH
+24%
+16%
+11%
+10%
+7% +8% +8% +7%
+3%
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
FY 19 FY 20 FY 20 FY 20 FY 20 FY 21 FY 21 FY 21 FY 21
NET SALES GROWTH BY QUARTER, EXCLUDING E.L.F. STORES (CLOSED IN FEBRUARY 2019)
SALES TREND - TOP 5 COLOR COSMETICS BRANDS
10
E.L.F.
+5%
0
-10
-20 MAYBELLINE
L’OREAL
-17% -19%
COVERGIRL
-30
-25%
-40
REVLON
Maybelline L'Oreal Cover Girl -35%
Revlon e.l.f.
NIELSEN XAOC LATEST 52 WEEKS ENDING 3/27/2021
SHARE TR END (BPS) - TOP 5 COLOR COSMETICS BRANDS
E.L.F.
E . L . F.
+100
100 5.7%
SHARE
50
0
-50
L’OREAL MAYBELLINE
-100
-70 -60
-150 COVERGIRL
-130
-200
Revlon
REVLON Cover Girl L'Oreal Maybelline e.l.f.
-200
NIELSEN XAOC LATEST 52 WEEKS ENDING 3/27/2021
LEADING WITH PURPOSE
e.l.f. Beauty stands with every
eye, lip, face and paw.
ENCOURAGE EMPOWER EMBODY
SELF-EXPRESSION OTHERS OUR ETHICS
BOARD OF DIRECTORS EMPLOYEE BASE
1 5 OF
U.S. PUBLIC COMPANIES
>60 %
MILLENNIAL AND GEN Z
>55 % WOMEN
>75 % WOMEN
>20 %
BLACK REPRESENTATION
>40 % DIVERSE
EMPLOYEE BASE INCLUDES EMPLOYEES IN THE US, CANADA AND UK
PROJECT UNICORN ELIMINATED 650K LBS OF PACKAGING
EXECUTING ON OUR FIVE STRATEGIC IMPERATIVES
DRIVE DOUBLE DRIVING
LEADING COST
BRAND DOWN PRODUC-
I N N O VAT I O N S AV I N G S
DEMAND D I G I TA L TIVITYDRIVE BRAND DEMAND
NEW
~ 12M
FOLLOWERS
+18% GROWTH
INCLUDES SOCIAL MEDIA FOLLOWERS AND BEAUTY SQUAD MEMBERS. GROWTH RELATIVE TO PRIOR YEAREMV GROWTH
+29%
EMV = EARNED MEDIA VALUE. SOURCE: TRIBE DYNAMICSMUSIC GAMING
TRANSCENDING
BEAUTY
BOUNDARIES
ORIGINAL CONTENT BRAND-ON-BRAND
CREATION PARTNERSHIPSMUSIC
#EYESLIPSFACE ONE OF MOST VIRAL CAMPAIGNS IN TIKTOK HISTORY
TOVE LO TIANA MAJOR9 PITIZION
GAMING
FIRST MAJOR BEAUTY BRAND TO LAUNCH A BRANDED CHANNEL ON TWITCH
LUFU ANNA #2 FEMALE GAMER IN THE WORLD E.L.F. GLOBAL MAKEUP ARTIST
ORIGINAL CONTENT
CREAT IONto be designed #EYESLIPSFAMOUS FIRST-EVER TIKTOK REALITY SHOW
38 M >3K
VIEWS SUBMISSIONS
“Tiktok provides a platform for brands
like few other mediums can. e.l.f. looks likely
to be the shape of things to come.”
TELEVISION BUSINESS JOURNALBRAND-ON-BRAND PARTNERS H IP S
WE LIT A ON MARCH 10
CHIPO TL EG OODS. COM ELFCOSMETICS.COM N T W RK SOLD OUT SOLD OUT SOLD OUT 9 MINUTES 3 DAYS 10 MINUTES
BRAND-BUILDING EFFORTS CONTINUE TO WIN AWARDS
GLOSSY 50 2020: BEAUTY’S MOST POWERFUL 2020 #7 MARKETER OF
INDUSTRY TRANSFORMATION BRANDS IN 2020 THE YEAR
1 OF 10 BRAND GENIUS AGE-TARGETED MARKETING: FIRST- 2020 NEWSMAKER
IN 2020 EVER TIK TOK REALITY SHOW OF THE YEAR
WINNER IN TIKTOK 1 OF 10 BRAND TITANS BEAUTY AND FASHION
PRESENCE ON TIKTOK CREATOR OF THE YEAR
328
VOTES
SHY OF
#2
GEN-Z #1
FAVORITE
SPRING 2021
#4
SPRING 2020
#6
SPRING 2019
PIPER SANDLER’S SEMI-ANNUAL TEEN SURVEY, APRIL 2021SOULCARE, n. Inner peace +
outer glow. A state of
overall well-being where
we find our balance and
share our light.>15B PRESS IMPRESSIONS
KEYS SOULCARE AWARDS
BEAUTY AWARDS: HELLO GIGGLES 2021 HEALTH 2021 BEAUTY INSTYLE BEAUTY BYRDIE: ESSENCE SELF BEAUTY AWARDS
SELF CARE BEAUTY CRUSH AWARDS AWARDS WINNER EDITORS' PICK THE BEST ECO BEAUTY AWARDS
SUPERSTARS / SCENT BODYCARE PRODUCTS
SUPERSTARS
SAGE + OAT MILK OBSIDIAN FACIAL HARMONY MASK COMFORTING BALM COMFORTING BALM BEST IN BLACK BEAUTY COMFORTING BALM
CANDLE ROLLER
JANUARY FEBRUARY FEBRUARY APRIL APRIL MAY UNDER EMBARGO
(WENT LIVE APRIL) (LIVE EARLY JUNE)
CONFIDENTIALMORE THAN AN ICON, AN INSPIRATION
I think that’s what sets Keys
“ Soulcare apart. The mission is equal
parts meditation and moisturizer,
and there is no other brand
educating customers on the
energetic aspect of skincare in quite
the same way.”STRONG CONSUMER ENGAGEMENT
Recharging Our Brand
BEFORE AFTER
BEFORE AFTER
42BEFORE AFTER
43BEFORE AFTER
44BEFORE AFTER
BEFORE AFTER
DOUBLE DOWN ON
DIGITALTRIPLE DIGIT GROWTH FY 2021 DIGITAL CONSUMPTION YEAR-OVER-YEAR GROWTH
DIGITAL COMMERCE PENETRATION 9% 17 % FY 2020 FY 2021
~75 %
NEW CONSUMERS
SHOPPING
ELFCOSMETICS.COM
% OF NEW CONSUMERS PURCHASING ON ELFCOSMETICS.COM, FY 2021>2.4M
MEMBERS
~ 40 %
GROWTH
~ 70 %
OF SALES ON ELFCOSMETICS.COM
BEAUTY SQUAD LOYALTY MEMBERS AS OF 3/31/2021 | FY 2021 GROWTH IN TOTAL ENROLLMENT VERSUS PYLEADING INNOVATION
STRENGTH IN CORE SEGMENTS
#1 #1 #2 #2 #2
BRUSHES PRIMERS CONCEALER EYEBROW SPONGES
$ SHARE $ SHARE $ SHARE UNIT SHARE $ SHARE
NIELSEN XAOC LATEST 52 WEEKS ENDING 3/27/2021,
EXCLUDES PRIVATE LABELPRESTIGE QUALITY EXTR AORDINARY PRICES
SKINCARE FOCUS
SKI N C AR E C ONS U M P T I O N
+ 22 %
E.L.F.
-3%
SKINCARE
C AT E G O RY
YOY CONSUMPTION GROWTH. NIELSEN XAOC LATEST 52 WEEKS ENDING 3/27/2021OFFERINGS THAT CARE FOR THE WHOLE SELF
DERMATOLOGIST-DEVELOPED, SKIN-NOURISHING SOUL-NURTURING
SOUL-NURTURING RITUALS
CLEAN FORMULAS INGREDIENTS RITUALS
DR. RENÉE SNYDER4 . 9 O U T O F 5 S TA R S O N KE Y SSO U LC A RE .C O 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.”DRIVING PRODUCTIVITY
INDUSTRY-LEADING PRODUCTIVITY
EXPANDED SPRING 2021
AV E R A GE L I N E A R F E E T PE R STO RE
~11
FEET
~8
~6
FEET
FEET
TARGET ULTA WALMART
FY 2021INTERNATIONAL
SALES TREND - TOP 10 U.K. MASS COLOR COSMETICS BRANDS
RIMMEL -25%
MAYBELLINE -22%
L’OREAL -30%
MAX FACTOR -34%
REVOLUTION -35% #8
COLLECTION -30% CY 2020
REVLON -38%
E.L.F. +2%
+2%
PRIVATE LABEL -37%
NYX -31%
-40 -30 -20
NIELSEN U.K. LATEST 52 WEEKS ENDING 12/26/2020 -10 0 10NEW CUSTOMERS
COST SAVINGS
+ 80
BPS
65 %
GROSS MARGIN
FY 2021C O S T S AV ING S STRONG GROSS MARGIN LEAN MANUFACTURING
W E LL P EO P L E
COGS SAVINGS
INVEST IN SHARPEN
BRAND RECHARGE PRICINGS U P P LY C H A I N I N C H INA DE LIVE RS
B E S T C O M B I N ATIO N O F:
COST
QUALITY
SPEEDPERSPECTIVE ON
FY 2022
BE E. L. F. I N G SIG NIFIC A NT
D I S R U P TI V E WHITE SPA C E
NEW DI G ITA L U N E X P EC TE D
C ATEGO RI ES GEO GRA PHI ES
FRO N T IE R S PARTN ERS H IP S
B RA ND SACCESSIB LE DISTRIBUTION PRESTIGE PRICE
EXC LUS IVE DIST RIB U TION
~$20-40 AUR
~$20 AUR
~$9 AUR
~$5 AUR MASS PRICEMANDY FIELDS SENIOR VICE PRESIDENT & CHIEF FINANCIAL OFFICER
+24 % +10 %
NET SALES ADJ. EBITDA
GROWTH GROWTH
Q4 FY 21+12 %
NET SALES GROWTH
FY 2021NET SALES DRIVERS
NATIO NA L KE Y S SO U LC A RE
E -C O MM ER C E IN T E R N AT I O N A L
RE TA ILE RS W E LL PE O PLE
FY 2021+ 80
BPS
65 %
GROSS MARGIN
FY 2021GROSS MARGIN BENEFITS
IN N OVATI ON C O S T S AV I N GS E - C O M ME RC E FX
FY 2021ADJUSTED SG&A 49 % 52 % FY 2020 FY 2021
MARKETING & DIGITAL
INVESTMENT
16 %
13 %
FY 2020 FY 202119 %
MARGIN
$ 61M
ADJUSTED EBITDA
FY 2021AD J US TED N E T I N C O M E A DJU STE D E PS
$37M $0.71
$32M $0.63
FY 2020 FY 2021 FY 2020 FY 2021S T R O N G L I QU IDITY
> 130
$
MILLION
C AS H O N H A N D + R E V O LVING C RE DIT FA C ILITYC A S H B A L A NC E $ 46 M $ 58 M Q4 FY 2020 Q 4 FY 2 0 2 1
R E F I N A N CING
IMPROVED
$ 200 M TERMS
CREDIT INCREASED
FACILITY
FLEXIBILITYINVENTORY
$69M
$57M
Q3 Q4
FY 2021 FY 2021C A S H P R I O RITIE S I NV E S T I N G I N SU P P O RTING F IV E S T R AT E GI C O U R STRATE G IC I M P E R AT I V E S E X TE NSIO NS
LONG-TERM ECONOMIC MODEL
MID TO OUTPACE
HIGH SINGLE SALES
DIGITS GROWTH
NET SALES CAGR ADJUSTED EBITDA CAGR
CAGR REPRESENTS EXPECTATIONS OVER A 3 YEAR TIME FRAME, THROUGH FY 2024NET SALES ADJUSTED EBITDA
+8% TO 10% $66.0M TO $67.5M
FISCAL 2022
OUTLOOK
ADJUSTED EPS ADJUSTED NET INCOME
$0.64 TO $0.67 $35.0M TO $36.8MF Y 2 0 2 2 N E T S A L E S DRIVE RS
GLOBAL CONTAINER
W E LL PEOPLE
SHORTAGE
KEYS SOULCARE NO MAJOR SPACE GAINS
E.L.F. COSMETICSA D J U S T E D EBITDA
+5-10
BPS
FY 2022 COMMENTARYGROSS MARGIN DRIVERS
M AT E R I A L A N D
FX PRIC E
T R A N S P O R TAT I O N C O ST SAVING S
H EADWI N D S INC RE A SE S
COSTS
FY 2022 COMMENTARYSG&A LEVERAGE
NON- SC A LING KE Y S
MARKETING SO U LC A RE A ND
SPEND W E LL PE O PLE
FY 2022 COMMENTARYQ1 FY 2022 EXPECTATIONS
STRONG NET SALES YEAR-OVER-YEAR
GROWTH EBITDA MARGIN PRESSURE
S TI M U L U S G RO SS M A RG IN
S P EN D I N G P RE SSU RE
ON G O I N G MA RKE TING
M OM E N T U M STE P - U PI N C L U S I V E . A C C E S S I B L E . C RU E LTY FRE E .
SKINTHANK YOU
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