NYSE$ELF

elf Beauty Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

e.l.f. Beauty announced Q4 2020 results, delivering net sales of $283 million and gaining market share in U.S. color cosmetics.

e.l.f. Beauty reported a 13% increase in net sales for the fourth quarter of fiscal year 2020, reaching $74.7 million compared to $66.1 million in the same period last year. The company experienced a net loss of $0.3 million, or $0.01 per diluted share, but adjusted net income increased to $5.3 million, or $0.10 per diluted share. The increase in sales was primarily driven by increased productivity across retail and e-commerce channels.

  • Net sales increased by 13% to $74.7 million compared to $66.1 million in the three months ended March 31, 2019.
  • Gross margin increased to 64% from 61% when compared to the three months ended March 31, 2019.
  • Net loss was $0.3 million, or $0.01 per diluted share, compared to net loss of $17.9 million, or $0.37 per diluted share for Q4 2019.
  • Adjusted net income increased to $5.3 million, or $0.10 per diluted share, compared to adjusted net income of $3.2 million, or $0.06 per diluted share for Q4 2019.

Headline financials

Total Revenue

$74.7M

No prior period
EPS (adj)

$0.10

No prior period
Capital Expenditures

$9.42M

No prior period
Free Cash Flow

$34.9M

No prior period
Net Income

-$341K

No prior period
Operating Income

$1.04M

No prior period
Gross Profit

$48.1M

No prior period
Cash & Equivalents

$46.2M

No prior period
Total Assets

$453M

No prior period
Stock-Based Comp

$15.5M

No prior period

Revenue & EPS history

e.l.f. · Revenue · Quarterly

$74.7M

Q4 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

The Company expects sales trends and the economy overall to remain volatile for the next several months and is suspending guidance for fiscal year 2021 due to uncertainty around the timing, speed and duration of the recovery from the adverse impacts of COVID-19.

Tailwinds

  • The Company has taken steps to fortify its balance sheet.
  • The Company has reduced expenses to navigate the situation.
  • The Company remains focused on executing its five strategic imperatives.
  • The Company is advancing its strategic extensions.
  • Company believes these steps give them optimism in the long-term potential of the company.

Headwinds

  • Sales trends and the economy overall are expected to remain volatile for the next several months.
  • There is uncertainty around the timing, speed and duration of the recovery from the adverse impacts of COVID-19.
  • The Company is suspending guidance for fiscal year 2021.
  • The Company has seen a significant decline in retail sales due to the impact of the COVID-19 pandemic on consumer behavior.
  • The Company anticipates its sales results to be negatively impacted until consumers return to normal shopping patterns.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+1.0%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+6.7%

Avg return

30 days after

59%

27 / 46 earnings

Positive

+23.7%

Q4 2025

Best reaction

-34.8%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+4.8%+6.8%+26.8%
Q3 2026-9.2%-13.4%-2.6%
Q2 2026-34.8%-33.8%-30.9%
Q1 2026-9.4%+5.8%+21.4%
Q4 2025+23.7%+26.8%+39.6%
Q3 2025-19.6%-15.2%-20.1%
Q2 2025+8.3%+25.2%+30.3%
Q1 2025-11.5%-18.2%-32.5%
Q4 2024+16.2%+20.4%+29.5%
Q3 2024-2.9%+2.8%+23.7%
Q2 2024+5.8%+9.8%+32.2%
Q1 2024+14.1%+9.8%+18.8%
Q4 2023+22.5%+19.1%+27.6%
Q3 2023+16.9%+19.3%+30.7%
Q2 2023+10.0%+14.7%+26.5%
Q1 2023+6.2%+9.3%+12.5%
Q4 2022+17.0%+23.4%+34.6%
Q3 2022-4.2%-5.3%-15.6%
Q2 2022-8.2%-5.9%-8.4%
Q1 2022+4.3%+4.0%+7.2%
Q4 2021+0.1%-1.8%-1.8%
Q3 2021+2.1%+3.0%+13.8%
Q2 2021-6.5%-0.2%+7.6%
Q1 2021+13.1%+10.3%+5.1%
Q4 2020+18.6%+17.3%+28.0%
Q3 2020+10.5%+10.7%-8.6%
Q2 2020-0.5%-3.3%-12.1%
Q1 2020+3.8%-0.1%+5.1%
Q1 2019-6.3%-3.9%-2.7%
Q4 2018-22.8%-15.9%+13.1%
Q3 2018+21.7%+19.7%+7.0%
Q2 2018-31.8%-25.4%-6.3%
Q1 2018-4.6%-4.0%-4.3%
Q4 2017-13.6%-14.7%-9.2%
Q3 2017-8.3%-4.9%+5.8%
Q2 2017-3.1%-0.2%-20.7%
Q1 2016-7.0%-9.7%-5.9%
Q1 2017-3.7%-10.4%-9.3%
Q4 2014+0.8%+0.8%+6.2%
Q2 2016+0.8%+0.8%+6.2%
Q2 2015+0.8%+0.8%+6.2%
Q1 2015+0.8%+0.8%+6.2%
Q4 2016+9.6%+4.8%+4.6%
Q3 2015+7.4%+8.9%+8.0%
Q4 2015+7.4%+8.9%+8.0%
Q3 2016+7.4%+8.9%+8.0%

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